What exactly is "Talent Management" anyway? Millions are spent every year finding good people, yet, sometimes when we find it, we do not always keep it. Talent Management is a process designed to improve the performance of talent and keep it, once you have it.

That all seem simple enough, right? Wrong, it is much more complex than you might suspect. First, everyone knows how expensive it is, just to find the talent, much less grow it and keep it. According to a recent study by Deloitte, every percentage point increase in the turnover rate within the Big Four Accounting Firms costs from $400 - $500 million dollars annually.

Second, talent management is complicated today by the retiring of the Baby Boomers and the emergence of the "Gen Ys." It seems that the Gen Ys are competent enough but they are not as willing to "pay their dues" as the Boomers were. As a result, organizations are scrambling to adjust everything from compensation to career development.

Third, the cumulative knowledge is said to be doubling every 2 days. That means that the value of a college education declines rapidly, if measured by what you need to know to be current in your field. A 50 year old, with a degree in electrical engineering, who did not engage in updating their knowledge on a regular basis, might as well have a Psychology degree.

Fourth, the development of new leaders with new and current skills directed toward a new generation and a new agenda. Understanding the behaviors & motivators of your employees & co-workers and adapting to the ever-changing environment.

Fifth, as a result of a world of accelerating change, tremendous skill gaps develop quickly and widen rapidly. The delivery of new tools in a package designed for a new generation with updated instruction manuals will be a challenging task if we are to keep up.

Should your organization invest in Talent Management? Only if you want it to be around 5years from now. Just a few short years ago the Hackett Group, studied many of the top performing organizations in the world and found that those companies that excelled in talent management posted earnings 15 percent higher than those who managed talent poorly. Today, with the cost of finding talent escalating, it is even more important to have a structured talent management process in place. Organizations are beginning to see the ROI in talent management as a legitimate strategy for more than survival. t

By Stephen J. Blakesley, Managing Patner, GMS Talent LP. Copyright protected