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In this chapter, we present research-based insights into where and how, and under what circumstances, Talent Management (TM) adds value for an organization. Since 2008, we have been performing a regular large-scale TM study to investigate the value of TM where we combine academic concepts and extensive practice-oriented analytical procedures. A total of 2,660 respondents within 21 large internationally oriented organizations in Europe participated. The outcomes show that organizations experience difficulties in effectively designing TM. In this chapter, we provide avenues for resolving this. We provide clarity on the components of an effective talent definition and strategy, and explain why an exclusive talent-differentiation strategy is preferable. We explain why it is extremely important that all relevant stakeholders have the right perceptions of this definition and the differentiation strategy. More than ever, it is today important to show the financial value of investments in what are often specific and expensive TM practices. We show the advantage of using analytics to enhance the effect that both current and future TM investments have on the attitudes and behaviors, such as intention to leave and commitment, of relevant employees. These are variables that can easily be transformed into a financial business case. TM does not necessarily involve investing in standard TM practices; there are many alternatives that are worth considering, such as investing in individualized arrangements (i-deals) and improving employees’ opportunities to perform. Also it is recommended to clearly differentiate the organization’s employment deal compared to competitors on talent. Based on our research, we provide insights that could enable organizations to maximize the value of their TM approaches and be well prepared for the future.
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- Realizing the Highest Value of Investments in Talent Management
Vera van Zijderveld
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