HR directors worried about lack of talent retention funds

New research shows that the majority of firms have not allocated a specific budget to identify, develop and retain talent.

Half of senior HR professionals interviewed believed that funding for talent should constitute up to 20 per cent of their budget, and a third believed it should exceed this.

The survey, by Fairplace consultancy, also shows that 57 per cent of those interviewed had no distinct talent management strategy.

Despite the lack of organisational support, HR professionals clearly believe in the value of developing talent. Sixty per cent agree that offering development opportunities and career challenges is the top tactic in the battle to keep hold of star workers.

Michael Moran, CEO of Fairplace, said: “We are seeing a strong belief in the HR value of talent management, but HR managers need to be more supported by their organisations in its application.

Philip Barr, HR director at Cable and Wireless, said: “Setting time and money aside to develop and retain talented people is simply good business sense. HR managers need to put the business case for this to decision makers and compare the costs with the costs of losing good people and having to hire and train others.”

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