Ask yourself this question: Will my company be the same today as it is in 10 years? Or 5? Or 3?
You already know the answer – it won’t. Even if you don’t want change, your customers, employees and competition will thrust change upon you. This is no time to play defense in business, meaning being reactionary. It’s time to go on offense!
But wait, you say, we have a strategic plan in place to help us prepare for those changes. Outstanding! While strategic plans have been part of professional business management for a long time, there is often a missing element – people.
So, let’s rephrase the question: Will my organization (leadership, people, roles, skill and competency requirements) be the same today as it is in 10 years? Or 5? Or 3? Or 1?
Again, you already know the answer – no way. So, what will your organization look like going forward? If you don’t know the answer, then you need a Strategic Talent Plan. What happens without a Strategic Talent Plan?
1. Talent acquisition costs skyrocket. A 2016 SHRM survey pegged average cost/hire at $4129. Those costs can rise dramatically with unplanned hiring needs.
2. Employee engagement suffers. Gallup polls show that average employee engagement is 30% and has been steady for years, costing the US $450B – $550B a year. Engagement is unlikely to increase without a plan.
3. Higher employee turnover. A Cornerstone on Demand report shows that the US spends $105B a year fixing bad hiring decisions. In addition, the report says key positions left open can cost a company up to $7000 a day. Talent is in demand and will be drawn to organizations that provide plans for career development and upside.
On the flipside, Bersin by Deloitte says companies with Strategic Talent Plans and corresponding management processes:
– Are 87% more capable of hiring the best people;
– See 26% higher median revenue per employee;
– Are 109% more capable of retaining high performers.
While the numbers are compelling (overwhelming?), it’s likely that you already know how important people are to your business. If your company doesn’t have a Strategic Talent Plan, we recommend getting one as soon as possible.
Contact us for help getting started.
– Randy Samsel