The International Monetary Fund projects a global economic growth of 3.5 percent in 2015 and 3.8 percent in 2016. In this favorable economy, forward-thinking organizations must constantly evaluate their business strategies in order to remain competitive. With many external factors influencing market conditions, organizations need to take control where they can: in their own internal economics and processes. They must determine in which areas they can proactively drive advancement—and one of those areas is the acquisition and management of human capital.
Performance and people
In a recent survey, 24 percent of business leaders cited “performance” as the most important driver of economic valuations in their companies. It’s crucial to acknowledge that in addition to materials and processes, performance depends in large part on a company’s people. After all, human capital contributes significantly to a company’s quality of products and services, plus, it plays an invaluable role in the ongoing development of intellectual property.
Talent management, therefore, is a pivotal area where employers can establish efficient processes that support the acquisition and retention of quality talent in a cost-effective manner. Interestingly, a new strategy is gradually emerging surrounding the sourcing and nurturing of talent. This strategy considers the talent pool available to a company as an evolving and extended series of relationships that can include full-time employees, contingent workers, borrowed talent/contractors, partnership talent, freelancers, and open source/crowd talent. This extensive talent pool is referred to as a “talent ecosystem.”
These talent ecosystems are becoming increasingly important, partially due to organizations’ needs to keep in-house workforces as small as possible; an increase in the project-based availability of specialized professionals with niche skills; and greater mobility of talent between roles and employers. As a result, employers have to develop cost-effective strategies that nurture their talent ecosystems in order to make their companies attractive to the quality talent they need. This requires an in-depth look at how employers present themselves to candidates, as well as what kind of compensation and work environment they offer.
In conclusion, in today’s changing economy, organizations must build and maintain sustainable talent ecosystems in order to compete for the top talent necessary to enhanced performance.