“Our people are what make us” has been the motto of Boyes Turner LLP for some time, but it is a maxim that that is true for organisations everywhere. Indeed, talented employees are increasingly coming to represent the core value of any organisation.
For example in 1982 62% of an average company’s value was contained in physical assets (found in cash, equipment, property etc) and only 38% was attributed to intangible assets (intellectual property, brand, customer contracts). Twenty years later these percentages had more than reversed, with 80% of an average company’s value contained in intangible assets and just 20% in physical assets. Organisations greatly rely on their talented individuals to create and develop these intangible assets, so the management and development of these individuals is central to productivity.
Furthermore, it is estimated that at any given organisation there is a small number of employees (normally less than 20% of the workforce) who are significantly more productive than the rest of the workforce. However unless these star performers are in the right roles their productivity will make little difference to an organisation’s overall performance. For example, having your postroom team give 110% will obviously be nowhere near as beneficial to your business as having your sales team attain a similar level of performance.
So identifying the crucial roles in your organisation, attracting the right talent, recruiting and effectively developing the individuals in those roles is imperative in order to effectively manage your talent. This approach is supported by making carefully considered hiring and promotion decisions while recognizing that when a workforce must be reduced the individuals that represent the core of a business’s value are retained.
Attracting the right talent and then implementing an effective management programme are not simply HR buzzwords but essential management practices. With the proper attention talent management can help an organisation flourish, but if neglected it can have dire consequences on a business’s productivity, particularly in these competitive times.
Want to hear more?
Attracting talent and how to reward and engage talent are focus areas for HR. To find about more about this key topic join us at our new Employment Law Conference season for 2016. Join us at our Spring conference on 28 January 2016 in Reading where we focus on the legal and practical implications of “Attracting Talent”. Our second Spring conference on 21 April 2016 in London concentrates on “Managing, Engaging and Rewarding Talent”. Our Conferences are a mix of legal discussion and practical and hands-on knowhow. We will be joined by key note speakers at both events who will share their experience and give practical solutions to the complex area of talent acquisition and management.
 Kaplan, R. & Norton, P. (2000). The strategy-focused organization. Boston: Harvard Business School Press. See also: Blair, M. (1995). Ownership and control: Rethinking corporate governance for the twenty-first century (Chapter 6). Washington, D.C.: Brookings Institution
Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.