Talent Management Practices: Are Yours Mature Enough?

Not All Talent Management Practices Fit Every Organization
If only the talent strategies that succeeded at one company could automatically succeed at another. While certain people practices have broad applicability, organizational culture assessment data consistently shows that every company has a distinct strategy and culture. These unique factors directly shape which talent management practices will drive the most meaningful impact.

The Talent Management Practices Maturity Continuum

We often categorize the various levels of how companies strive to attract, develop, engage, and retain top talent to move their businesses forward.  According to Deloitte, 90% of mid-market firms and 59% of the Global 2000 are at a Level-2 maturity on the below 4-point scale.

• Level-1
  Little to no talent management strategy and inconsistent talent management practices
• Level-2
  Emerging talent integration strategies and some targeted learning for critical roles
• Level-3
  Clear talent management strategy, strong learning culture, and the beginnings of systemic approach to talent
• Level-4
  Clear and well communicated strategy to build and sustain top talent in a systemic, strategic, and inclusive manner across the entire organization

Most Companies Are Just Getting Started
In other words, while many organizations understand what effective talent management requires, they are only beginning to put a meaningful talent management strategy into practice. For most, the journey toward fully integrated, impactful talent management is still in its early stages.

Why Talent Management Practices Matter
Talent matters because performance depends on it. Our organizational alignment research shows that differences in talent account for 29% of the gap between high- and low-performing companies. For organizations that rely on their people to achieve success, business outcomes hinge on designing and executing the right talent management strategies — strategies that align with both organizational goals and culture.

The Definition of Talent Management
We define talent as the workforce leaders cultivate and manage to create a distinctive advantage that competitors cannot easily replicate. Talent management encompasses attracting, engaging, developing, and retaining the people who will drive the organization forward and ensure its long-term success.

A Smart Talent Management Goal
If your people are central to your success, your goal should be to advance to the highest level of talent management — where:

• Your talent strategy is thoughtfully designed and clearly communicated across the organization.
• Talent activities are directly aligned with key strategic objectives.
• Talent management programs are customized and seamlessly integrated into critical business practices.
• The workforce is diverse, inclusive, and positioned to drive innovation.

Mid-Market Companies Have A Longer Way to Go
Unfortunately, the same survey found that no mid-market organizations had yet reached Level 4, and only 29% of the Global 2000 had achieved Levels 3 or 4. This highlights the significant gap that many companies still face in advancing their talent management practices.

How To Move From Level 2 to Level 3
Let’s take a practical approach. To advance from Level 2 — where 90% of mid-sized companies currently reside — to the next stage of talent maturity, focus on these critical actions:

1. Clearly understand your business strategy and identify the few priorities that will drive the greatest impact.

2. Determine where and how talent can most effectively advance those current and future strategic objectives.

3. Analyze your workforce to pinpoint current and future talent gaps.

4. Offer customized development and growth opportunities aligned with both present and future organizational needs.

5. Cultivate a learning culture that champions continuous career development.

6. Promote cross-functional learning to strengthen collaboration and workforce agility.

7. Commit to inclusion and diversity in a way that exceeds regulatory compliance and genuinely enriches organizational capability

The Bottom Line
By taking these seven steps to enhance your talent management practices and maturity, you significantly improve your odds of business success. Research shows that organizations able to accurately assess and select the right talent are 3.2 times more likely to achieve superior outcomes. The question is no longer whether your talent strategy matters — but whether you are ready to take it to the next level.

To learn more about upgrading your talent management practices, download The 3 Key Ingredients for Talent Management Success

Tristam Brown

Tristam Brown is an executive business consultant and organizational development expert with more than three decades of experience helping organizations accelerate performance, build high-impact teams, and turn strategy into execution. As CEO of LSA Global, he works with leaders to get and stay aligned™ through research-backed strategy, culture, and talent solutions that produce measurable, business-critical results. See full bio.