Talent Intelligence and The Opportunity Cost of Talent

Using Talent Intelligence for Development

The economy is showing signs of life and companies are responding.  Creating new positions and considering upgrading their systems to align with their corporate talent and succession planning strategies.  Talent intelligence is part of this growth and company improvement process.  It is an alignment to improve productivity, efficiency, automate while also increasing employee morale.  The Talent Intelligence movement allows for better hiring, leading and talent process decisions focusing on the science behind talent.

Talent Intelligence and The Opportunity Cost of Talent

With Talent Intelligence, people are your biggest resource as they impact your business in infinite ways.  What value does your company place on the talent and talent development within your organization?

The cost of talent in your workforce can be determined by your organization’s opportunity cost.  Consumers and this case large organizations calculate the opportunity cost for every purchase, investment, or purchase indecision.  As a consumer, you might debate between a Nook and an iPad weighing the opportunity cost between one another.  The Nook offers basic functionality, is relatively inexpensive, and has benefits like an anti-glare screen.  The iPad offers thousands of applications and easy access to your email, music, and Nook like functionality with their iBook e-book application.  And yet the cost for a standard Nook with wi-fi is $149 and an basic iPad starts at $499.

Business professionals just like consumers evaluate the opportunity cost and the $350 difference between the two.  Would you rather have the additional $350 worth of books?

But what price tag can you place on your current and future workforce?

Companies within the energy industry and ever-evolving technology industry are considering these questions every day.  With companies like Google, Facebook, and Cicso battling over high skilled technicians, developers, and engineers.  Having a talent intelligence strategy can help you leverage your current talent while planning for future needs.

Cisco created a talent incubator, a 16 week training program that gives their top talent an opportunity to learn leadership, strategic management, and team development while helping to provide solutions for current company programs and projects.  Cost per employee stands at $10,000 with the goal of generating over $10 billion of revenue over the next five years.

Companies within the energy industry are facing a much longer term and broader talent intelligence strategy that encompass a much larger space.  Energy impacts us in so many weighs from the gas I fill my car to the computer I’m working from to type this blog.  And as the average age of the energy worker creeps hirer and training time for specialized jobs at power plants stands at 7 years plus, companies are using long term talent intelligence planning and analytics to drive their current development, staffing, training, and recruiting decisions.

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Jessica Miller-Merrell

Learn more about Jessica Miller-Merrell, SPHR, SHRM-SCP, the founder of Workology, a workplace HR resource, and the host of the Workology Podcast. More of her blogs can be found here.

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