Until recently, discussions on talent management in corporate boards were concerned almost exclusively on the succession of CEOs and remuneration of senior management. Today, this situation is changing concerning the perception of the role of talent in the context of overall corporate performance and risk management. HR directors are getting more and more involved and they are starting to work under CEOs who realize that their business strategy is also a talent strategy. At least this is according to a study by Deloitte entitled Global Human Capital Trends 2013 mainly involving HR managers from more than 1,300 organizations in 59 countries, including the Czech Republic.
The study revealed the following three reasons behind this trend:
1. Higher expectations of boards
Companies increasingly recognize that they can never fully develop their potential without the right people who are able to implement their strategies and deliver results at all levels. Consequently, various studies have shown talent management and leadership development are among the top priorities of companies.
2. Increasing responsibility for risk management
Companies are starting to see talent as a key factor in minimizing the risks associated with their reputation, operations, regulatory actions or finances. That is also why they want to work more closely with human resources.
3. Sustainable growth
Sustainable performance is increasingly important for companies. The ability to attract, develop and retain talent is becoming one of the major factors in making investment decisions, in strategic planning and initiatives to achieve corporate growth.
According to the conclusions of the Deloitte's study, corporate boards should ask the following questions and HR directors should know the answers.
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Do we have the talent and the level of leadership needed for the execution of our business strategy?
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Do we have the strategy for talent management and leadership development we need to manage risks and achieve sustainable growth?
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Do we develop the talent we need for our growth in new markets?
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How can we keep our culture working internationally?
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Do we have a process for tracking key talent-related indicators on a quarterly basis?
The entire study is available for downloading on the Deloitte's website: Global Human Capital Trends 2013. The part focused on the corporate boards' interest in talent management can be downloaded here: How boards are changing the HR game.
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