4 strategies for improving your business through better talent development
It’s a well established fact that if you want to position your company as a leader, you need to start with recruiting. If you can hire talented people and build an organization loaded with them, you’ll be in prime position to rake in the profits for years to come.
We’re now beginning to discover that it’s not just talent that yields profits in business – it’s a specific type of talent. Namely, you want people with strong potential for leadership.
Having capable people on your staff who can do their jobs well in the present day – that’s all well and good. Obviously, it has an impact. But your company is even more likely to succeed if it’s staffed by people who are working hard to develop their skills for the future. If your star employees are accomplishing today and also gearing up to become managers five years from now, that’s the sweet spot.
There’s a great deal of research to support this notion, according to TLNT. The news source drew upon the recent work performed by the Boston Consulting Group, which polled 1,263 CEOs and HR directors across 85 different countries for this year’s edition of the “Global Leadership and Talent Index” survey.
The key result was this – there’s a high level of correlation between your staff’s leadership capabilities and your organization’s financial performance. The companies rated as “talent magnets” in BCG’s survey, meaning they had strong scores in “leadership and talent management capabilities” – had revenues increasing 2.2 times as fast and profits going up 1.5 times as fast as companies who were weaker in this area.
China Gorman, CEO of Great Place to Work, told TLNT that this idea of building a leadership-primed workforce might be a major game-change for some companies.
“These findings may enable leaders all over the world to reorient their priorities, investments and behavior on talent/leadership development and gain the critical involvement and support with all the members of the C-suite,” Gorman predicted.
Is this the direction business is moving? If so, companies will have to focus on developing future leaders by emphasizing four main areas:
Stronger talent sourcing
The effort should begin with companies finding the best candidates in the first place. Look for people who show potential to be leaders from the very beginning – both inside and outside of their organization. Finding these people, starts with an employer band that is targeted toward these specific talent pools.
Ongoing people development
Leadership potential is something companies can develop on a daily basis. Teachable moments are everywhere in business – managers should be made accountable, and should look for every opportunity to strengthen their employees’ skills.
A healthier corporate culture
A better culture is absolutely a part of this equation. Leaders need to promote the company’s values and set an example for the leaders who will follow them. If employees at all levels are willing to support one another, helping people learn and grow, the business will benefit.
A focus on engagement
Finally, managers need to do whatever they can to keep their employees motivated and focused on their work. If engagement is running high, and staff enjoy coming in to work everyday, the organization will be in the right position to foster their potential for future leadership.