Only 6% of companies equipped for growth

Only 6% of companies are in a position to take advantage of the continuing growth of the global economy, according to research published by human resources company CEB.
Wed, 9 Jul 2014
Only 6% of companies are in a position to take advantage of the continuing growth of the global economy, according to research published by human resources company CEB.

Since companies are still in survival mode brought on by the habits of the recession, weak talent infrastructures currently in place threaten any potential corporate growth, says the research.

Rapid intervention is needed to strengthen the rigour of current talent practices if HR is to help build the foundations for corporate growth through talent development and acquisition, the company’s findings added.

“Economic indicators are positive and business confidence is improving,” said Ken Lahti, vice president of product development and innovation at CEB.

“However, our research shows that for some companies, yesterday’s talent practices are jeopardising tomorrow’s growth opportunities.”

CEB said firms today are focusing on internal employee initiatives to engage, retain and develop top talent to propel organisational growth, but lack mature and formal processes for core areas such as succession planning, leadership development and workforce planning.

“Without sound talent infrastructures in place, organisations are vulnerable; HR is unable to provide accurate insight into the health and readiness of the workforce and may miss opportunities to help accelerate business growth by acquiring and developing top talent,” said Lahti.

This compromises performance and could affect productivity in 94% of companies globally, concludes the research.

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