By: Beth Miller, a Special to Overdrive

So what can good talent management do for your organization?

The benefits of talent management are many. The following are some reasons to make it an integral part of your company’s operations.

• Reducing Costs: cost is important to all organizations, and workforce cost is the largest spending category for most organizations. But talent management can lower recruitment costs. Consider that the costs of having to replace someone with scarce skills is high, and more costs are incurred with new hires during the first 3-6 months because of their lower productivity levels.
• Better Hiring: When a company knows what they want, they will recognize it, when they see it. A good system will ensure better candidates and decrease turnover.
• Better Understanding of Employees: When companies really know their employees, they can take steps to make them happy and engaged so that they will continue employment and do good work.
• Better Development of Employees: Good workers try their best and seek to improve themselves; they are highly valuable to any business. Companies that have systems for growing their employees are more likely to have happy and engaged employees.

If you still aren’t convinced that talent management is a key success factor for companies, think about this: Companies with more mature talent management capabilities have on average 18 percent higher earnings, 54 percent greater net profit margins, and greater return on equity and assets than those without mature capabilities, according to findings from the Hackett Group. Why not start making talent management an important part of your company?

Want to learn more about talent management? Follow my blog this month, where I’ll focus on talent management. And let me know if you have any questions about starting or improving your talent management program. You can also reach me via Twitter at @SrExecAdvisor.