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Clear guidelines for how long it's OK to be an average (50th percentile) performer?
Agreement among the executive team about how much to differentiate the investment in high performing employees compared to average performers?
A consistent approach for how transparent you are with leaders about their potential to advance in your company?
If you answered "no" to those questions you're not alone. Only 30% of the 121 companies we surveyed had firm-wide guidelines for how talent should be managed. Even in the few firms with guidelines, many were more platitude (i.e."we value all employees") than operational parameters for managing talent. With employee costs typically representing 10% - 20% of a company’s revenues, it seems shortsighted not to manage this investment as rigorously as any other. If clear, consistently applied guidelines support quality decision making in other parts of the business, surely they can add value to talent management decisions as well.
A company's explicit or implicit answers to questions like those listed above comprise its talent management philosophy – its rules of the road for managing talent. Given that few companies have an explicit TM philosophy, managers' individual preferences often guide how a company invests in and manages their employees. Learn why a talent philosophy matters and how to implement one in your company.