THE KEY TO CREATING A FUTURE PROOF AUSTRALIAN ORGANISATION
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It takes more than the quality of products or services to define company success. The collective skills, dedication, and enthusiasm of its workforce are also essential.
Nowadays, it takes more than the quality of products or services to define company success. The collective skills, dedication, and enthusiasm of its workforce are also essential. Employees are the bedrock of an organisation's stability and growth.
Therefore, organisations must have a meaningful way to effectively assess the success of their employee strategy to understand where they need to be and how to get there.
Cornerstone OnDemand's Talent Health Index (THI) global research evaluates organisations on four maturity stages: Foundational, Administrative, Sophisticated and Transformative. It uses seven dimensions of talent health to assess the overall wellness of a talent programme and pinpoint potential development areas for improvement:
- Culture and Technology
- Skills Strategy
- Learning and Development
- Content Strategy
- Performance Management
- Talent Mobility
- Talent Reporting, Data and Analytics
The 2023 THI report aims to provide an exhaustive overview of talent development in international firms, including those based in Australia and New Zealand. The research canvassed the views of more than 700 talent and business leaders and more than 1,400 employees across North America, Europe, and Asia Pacific.
In the THI 2023, Australian organisations scored an average of 86.7 out of a possible 112, situating them at the administrative level, marginally below the global average of 88.1. Although Australian organisations have established a good foundation for their talent programmes, there is still much room for enhancement.
Remarkably, only a handful of organisations globally, including in Australia, achieved the transformative level. As a country, only India achieved that accolade with a score of 92.8.
The outcomes highlight the universal need for improved talent management strategies.
In Australia, a disparity was apparent between employers' and employees' perceptions regarding their confidence to develop skills, with 89 per cent of employers feeling confident. In contrast, only 67 per cent of employees had the same faith in their employer's capability to assist them in skill development.
Globally, the gap was more significant, with 90 per cent of employers feeling confident compared to only 61 per cent of employees. That gap has remained stagnant since 2020. However, in high-performing organisations worldwide, the average perception gap between employer and employee was only 6 per cent – five times less than the global average.
In top-performing organisations globally, 95% of High-Performing Organisations give their employees the ability to acquire skills that interest them, and the same percentage ranked providing more tailored, comprehensive career guidance as important.
It demonstrates a stronger focus on Learning and Development (L&D) is vital for businesses aiming to transition from 'administrative' to 'sophisticated' level.
L&D programmes act as the catalyst for supporting an organisation's team. They empower staff members to continually upgrade their skills, stay updated with industry trends, and discover new prospects. Engaged employees, consequently, become advocates for innovation, propelling an organisation ahead with new ideas, more motivated and loyal staff, and increased productivity.
High-performing firms have demonstrated to the rest of us that a robust and engaging talent development strategy is attainable for every organisation by:
1. Enhancing Employee Skills through L&D: Skill breeds confidence. L&D initiatives allow employees to gain new, and hone existing skills, making them more adept at their roles and boosting their confidence when dealing with challenges.
2. Cultivating a Culture of Continuous Learning: Employees are motivated to pursue knowledge independently when learning becomes ingrained in the company's DNA.
3. Aligning Individual and Organisational Goals: This alignment instils a sense of purpose and commitment beyond simply accomplishing tasks. It also fosters a collaborative and motivated workforce.
4. Empowering Employees to Innovate through L&D: Engaged employees, fuelled by their newfound knowledge and skills, often become innovation leaders.
5. Reducing Employee Turnover through L&D: If employees already receive all the development and growth they want, there's no need to contemplate changing employers.
6. Attracting Premier Talent: An excellent L&D programme is pivotal to attracting the best and brightest people in today's competitive job market.
7. Adapting to Industry changes: L&D initiatives are crucial in fostering adaptability among employees, especially with the current pace of technological change.
The Talent Health Index provides the tools to effectively navigate the changing terrain of talent management and construct a robust strategy for the future.
