Smart Talent Management: How to Raise the Bar

Smart Talent Management

Smart talent management is about more than filling roles — it’s about placing the right people, in the right roles, at the right time, and enabling them to perform at their best. It’s a deliberate, individualized approach, applied thoughtfully to each job, each role, and each team member — and the impact is profound.

Our research on organizational alignment shows that talent accounts for 29% of the performance gap between high- and low-performing companies across revenue growth, profitability, customer loyalty, leadership effectiveness, and employee engagement. Companies that master talent management gain a measurable competitive advantage. They not only outperform rivals more consistently, but they also create an healthy environment that attracts and retains top talent, reinforcing long-term success.

The Talent Management Data
Survey data reveals a striking connection between effective talent management and organizational performance. Organizational culture assessments found that nearly twice as many respondents at companies with strong talent management reported outperforming their peers. Even more compelling, these organizations were six times more likely to deliver superior shareholder returns compared with the competition.

How to Ensure Smart Talent Management
There are three factors that have a significant impact on managing talent right.

1. An HR Team with Business Savvy
   HR’s role has evolved far beyond managing training, compliance, and employee relations. Today, HR is expected to be a strategic partner — actively helping to drive business results.

   HR teams with business acumen that grasp the company’s strategy and priorities are better equipped to place talent where it matters most — not just for immediate needs, but for the future growth of the organization. Those HR professionals with experience in other business roles bring a deeper understanding of operations, enabling them to identify, develop, and deploy talent in ways that directly support strategic priorities.

2. An HR Team with High Employee Engagement Involvement
   HR often serves as both the first and last point of contact for employees during their journey with an organization. This positions HR to play a critical role in shaping the employee experience — setting the tone, measuring and improving engagement, and ensuring smooth transitions when employees exit.

   When HR partners closely with the business to actively foster engagement, companies see measurable results. Talent management becomes nearly three times more effective, driving stronger organizational performance and delivering higher shareholder returns.

3. Flexible and Rapid Talent Deployment
   For most leaders, the ability to quickly redeploy talent to address emerging business needs is a critical driver of competitive advantage. Research consistently underscores the link between flexible talent deployment and superior business performance. A study by Bersin by Deloitte found that organizations capable of quickly redeploying talent in response to changing needs were more likely to achieve higher productivity and overall organizational performance. Moving the right people to the right roles at the right time matters.

The Bottom Line
Are you deploying your human capital to its fullest potential? Can your HR team demonstrate business acumen, drive meaningful employee engagement, and respond rapidly as talent needs evolve? If not, you risk falling behind organizations that can confidently answer “yes” to each of these critical questions.

To learn more about how to ensure smart talent management, download The Top 3 Big Corporate Culture Myths about Talent that You Must Avoid