Targeted Talent Management Systems: An Investment or an Expense?

Yes, there is a cost involved in hiring experts to create a targeted talent management strategy that is brought to life by tools and systems that focus on the critical skills and behaviors necessary for success.  It is interesting to me, how some people view certain spending as an expense whereas others will view it as an investment.

I would say that creating an organization specific talent management system is an investment, but I am biased because I have seen the value that it provides.   I would say that it costs more to not know if you have the right talent management process in place.  This rings true now more than ever.  Most companies are trying to achieve the same, or even greater results, with fewer people.  If you are trying to get more out of less, you better have the “right” people on board or it will never work.

That is why it is worth the investment to discover what skills and behaviors are necessary for success in your organization.  While others might try to “wing it” and end up replacing people that aren’t the right “fit”, you can significantly increase business results by having the “right” people.  On average, studies show that a new hire who doesn’t work out will cost you at least $60,000.  That doesn’t even take into account the possible business that you might have lost due to having the wrong person in the role.

At the end of the day, every company has to decide whether they want to invest in a targeted talent management system or whether they feel that it costs too much.  I would choose to invest, because it leads to greater business results and organizational efficiency.  Having a targeted talent management system is like having a great GPS system to hire and develop the best people.  With it, you can find exactly what you are looking for… without it, you may or may not find the “right” person.

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