Culture of promoting talent delivers 67% bonus to companies’ performance

Companies where the promotion of talent is fixed in the organisation’s culture outperform those where it is not by 67%, a report suggests.

The report, Talent management: from compliance to commitment, published by consultancy Jackson Samuel, scrutinised the boardrooms of the UK’s top companies and discussed the issue of talent with 58 HR directors.

It concluded that failure to commit sufficient time and money to talent management is costing British business and shareholders millions of pounds each year.

Of the 58 companies that Jackson Samuel surveyed in depth, the total market capitalisation of those firms where talent management processes were less embedded was £177.1bn, with an average total shareholder return over a five-year period of 78.45%.
In contrast, the total market capitalisation of companies where talent management processes were more embedded was £295bn, and the average total shareholder return was 145.05%.
Lesley Uren, chief executive of Jackson Samuel, said: “This report suggests that many chief executives are simply devolving their responsibilities when it comes to senior level appointments. 

“We compared total shareholder return across the 58 companies and it is crystal clear that those companies where the chief executive is taking a lead in terms of managing talent are returning significantly better value to shareholders.”

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