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Mature Talent Management Leads to 18% Higher Earnings

Study showed talent management maturity leaders outperformed typical companies across an array of efficiency and effectiveness metrics

According to a recent study from The Hackett Group, companies with more mature talent management capabilities reap strong bottom-line benefits, including earnings that are 18% higher than typical Global 1000 companies.

Hackett's research found that the improved performance of talent management maturity leaders enabled them to generate an additional $673 million in additional EBITDA earnings for a typical Global 1000 company (with $26.38 billion in revenue.)

The research identified a wide range of other enterprise-wide payoffs seen by talent management maturity leaders. Leaders were able to create stronger organizations that better motivate and manage their talent and had clear advantages over typical companies in key areas such as the ability to create and sustain strong corporate cultures, retain both overall employees and specifically top talent, and plan for changes in skills supply and demand.

From an operational standpoint, talent management maturity leaders outperformed typical companies across an array of efficiency and effectiveness metrics. Leaders showed superior ability to increase overall employee engagement, faster recruiting cycle time, and greater linkage of talent management to business strategy. Their talent management professionals were also significantly more productive than those at typical companies.

"It's easy to find companies that feature talent management in their strategic plans and reports to shareholders. But truly, most do little more than pay it lip service. They stick to the basics because they don't truly understand the impact of improving their talent management capabilities," said Hackett HR Advisory Practice Leader Stephen Joyce. "With this research we're clearly quantifying the price most companies pay for their lack of commitment. By ignoring the strategic value of talent management and failing to develop a comprehensive program that drives top performance in this area, companies are missing the opportunity for a triple payoff -- an enhanced bottom line, better performance across the enterprise, and improvements in specific talent management processes."

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