Why building talent trumps buying talent

by |
A whopping 73% of employers worldwide are planning to continue their strategy of “building” talent from within their organisations, as opposed to “buying” talent from the external marketplace, according to Mercer’s 2015 Career Frameworks in Talent Management Survey.

Additionally, 76% of organisations report their career framework delivered a positive return on their investment.  

The survey included feedback from 1,785 HR professionals from more than 100 countries across 19 industries.
 
Kate Bravery, Partner and Global Solutions Leader for Mercer’s Talent business, said that attracting and retaining talent continues to be a challenge for employers due to the competitive job market, flat compensation budgets, shortages in critical skillsets and a constantly changing business environment.
 
“Employers recognise that their employees are the key to success in today’s global economy,” Bravery said.
 
“By focusing on developing and outlining career paths, they can influence employees’ growth potential within the company, improve retention efforts, and cost-effectively develop a workforce that contributes to higher business performance.”
 
Moreover, only 3% of employers plan to shift from their current approach of building talent to buying it in the upcoming year.
 
Despite most organisations in Asia having career frameworks which are not complete, strategic workforce planning is one of the main uses for a career framework in this region.

In Europe, one in two organisations has a career framework in place, while an additional 41% have plans to implement one.

“Undoubtedly, career frameworks are essential for effective workforce planning and talent management worldwide,” said Bravery.

“Not only do they result in higher employee engagement levels and mitigated loss of talent, they provide a structure on which to base rewards, performance management, and development actions – enabling the individual and the organisation to thrive and deliver business value.”

The survey also found:
  • Half of organisations worldwide currently use career frameworks and an additional 37% plan to implement a career framework.
  • The top talent programs driven by the career framework are training and development (73%), performance management (62%), career pathing (61%), and succession planning (61%).
  • More than three-quarters (76%) of organisations globally using career frameworks believe their investment has paid off in terms of ROI.

More like this:

CUPE strike on the cards for Toronto 

Alberta confirms salary freeze for public workers 

Do financial incentives really improve performance? 
 
 

HRM Online forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions