Next Level Talent: Is it Best to Buy it or Grow it?
Consider two companies, each with comparable, average employee turnover rates for their industries. An executive team discussion at Company A goes something like this, “We’re not going to invest too much into talent development. We’ll just be setting ourselves up for our competitors to steal our best people after we invested our money in them. And if someone good leaves, we can hire a replacement.” Company B’s executive team has a “development for all” strategy, with a healthy training budget and frequent talent planning discussions, answering such questions as, “Who are our future leaders? What experiences and skills development will get them there? And where do we have skill gaps that need to come from the outside?”
So, if employee turnover rates are the same for each business, why should a company invest dollars, time and brainpower in growing talent? There are certainly trade-offs and Company B will likely lose a few high flyers along the way. And for certain, Company A’s more ambitious talent, likely those that could really have taken the company somewhere, will fly the coop. It’s worthwhile to take a closer look at key performance measures for both companies and the impact that the two very different strategies have on metrics such as employee productivity, engagement, customer satisfaction, and yes, even profitability! Not to mention how long it takes a new employee to become settled and productive, upfront recruiting/onboarding costs, new hire turnover risk…..should we go on?
What would BOOST recommend to Company A? At the very least, identify the folks that can do more and that you want to stick around. Assess growth potential for these key players, establish individual development plans towards potential future roles and communicate potential career paths. This focused talent development strategy typically pays off in retention of high-potentials, lower talent replacement costs and is likely to impact the bottom-line. And for Company B, be sure to focus development efforts most intensely on employees that display a growth mindset, have the ability to do more and fill anticipated organizational needs.
Need help determining your strategy? Contact BOOST for assistance!
