Why should every business address their talent risks ?

  • More than 50% of business expense is people
  • Talent risk affects the big three business drivers every day: money, time, quality
  • It’s about gathering different data to make better talent decisions
Source: Jay Jamrog, co-founder of the Institute for Corporate Productivity.
Do business leaders put talent risks on the agenda?
Or is this still seen as the ownership of HR to manage talents?Globally we can speak of 5 talent risks to manage (Brandon Hall Group):

1. Capability Risk
Risks associated with building the skills an organization needs
to compete now and in the future. These risks include the breadth and depth of skills and capabilities present within a workforce, and how well-aligned these are to an organization’s needs.

2. Capacity Risk
Risks around the succession into critical roles and retention of
critical people and teams. In other words, will an organization be able to maintain the size and shape of workforce needed to deliver its business plan?

3.Cost Risks
What is the risk of a workforce becoming unaffordable?
What will it cost an organization to recruit and retain the people it needs?
Will it be able to afford the overall cost of its workforce?

4.Connection Risks
These risks consider factors such as engagement and performance.
What is the risk of an organization’s top talent becoming disengaged?
Will an organization’s talent-related processes remain sufficiently joined-up?

5.Compliance Risks
Risks relating to employee behavior, regulations and laws. This category covers both the need to ensure that talent processes comply with local laws/regulations and whether talent management is seen as a business-critical process or an administrative process.

The Board needs to identify, based on organizational data, which of these talent risks they need to prioritize.
They should find a structured and pro-active way to handle talent risks in the same way that they handle financial risks.
To find answers to these talent risks as HR professional, we invite you to participate to the training ‘Business impact with the Talent Review’.