Growing Evidence Reveals Benefits of Talent Management

from the Turning Good People Into Top Talent blog series

business success

There is increasing evidence to clearly demonstrate the relationship between top talent and higher levels of business performance.  For example, a 2007 study from the Hackett Group found companies that excel at managing talent post earnings that are 15 percent higher than peers.  For an average Fortune 500 company, this translates into hundreds of millions of dollars.

A 2006 study by McBassi & Co., a leader in measuring human capital drivers to success, revealed that organizations with higher scores in the following five categories of human capital (talent) management posted higher stock market returns and better safety records:

  1. Leadership practices
  2. Employee engagement,
  3. Knowledge accountability
  4. Workforce organization
  5. Learning capacity

The Brookings Institution found that talent is a rapidly increasing source of an organization’s value creation.  In 1982, 62 percent of an average company’s value was attributed to its physical assets (including equipment and facilities) and only 38 percent to intangible assets (patents, intellectual property, brand, and, most of all, people).  By 2003, these percentages shifted to 80 percent of value attributable to intangible assets and 20 percent to tangible assets.

Is it time to review your organization talent management system?
Request a copy of the soon to be published executive summary report, “Total Talent Management:  How to Assure You Have the Right People in the Right Job at the Right Time.”  Send an Email to with TTM in the subject line.


Bob Moore, CMC
Managing Principal, Talent Management Institute
“Turning Good People Into Top Talent”

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