The 5 Aptitudes of Talent Optimization
Data-Driven Decision Making
A 2020 Talent Report surveyed over 600 executives and found millions of dollars and thousands of high-performing employees were lost each year due to inaccurate hiring, poor leadership, and lack of strategy. It's time for an analytical revolution in people management; we call it Talent Optimization.
The foundation of Talent Optimization is a commitment to data and a deep analytical understanding of the humans working in your business. The result is a 90% execution rate for companies implementing these practices.
Hire + Retain Top Performers
The 2020 Talent Report found that 51% of hires were bad hires. With the average cost of a bad hire at roughly $18,700, a workforce of 100 employees can burn almost $1 million each year due to lost productivity.
Additionally, 47% of high-performing employees left their company in 2019. Studies in 2006 & 2001 found that turnover costs range from 90%-200% of exiting employee's salary. A company with 50 high-performing employees can expect up to 25 to leave. At $75,000 annual salaries, turnover can cost this company $1,687,500 in recruitment, training and lost productivity at minimum each year.
Ensure Your People Fit Your Business
People are attributed to 64% of a companies total costs and 72% of its value, yet only 12% of companies have a people strategy that is designed around their business strategy.
This means, that while people are by far a companies' most expensive and most important asset, 88% have no repeatable structure to hire, organize, and align their people to execute on their business strategy and strategic goals.
Guarantee Performance + Productivity
64% of all success or failure is attributed to people (the rest to outside forces, e.i. pandemics). 1/3 Executives state that getting the most out of their people is their #1 challenge.
72% of companies have self-awareness tools, but only 46% of companies hit their strategic goals each year.
This barrage of stats proves that self-awareness alone is not leading to high performance and executive teams are left pulling out their hair. Scalable productivity is driven by structures of accountability.
Diagnose + Solve Root Issues
If all of this is true, that people are a companies most expensive, and most valuable asset, you would assume most would have great systems of diagnosing root issues and assessing performance. Wrong.
Only 22% of companies can identify what is driving disengagement and even fewer have actionable performance data. It's not enough to go to the doctor once a decade. Routine check-ups ensure high performance for the long haul.