The Talent Health Index: Unlocking your path to a future-fit strategy
How do you figure out how to cure organisational issues without knowing what true organisational health even looks like? If you have a hard time defining it, you’re not alone. Over 80% of organisations are grappling with the intricacies of adapting to rapidly changing workforce trends.
The rapid pace of technological advancements, shifting employee expectations and a dynamic market environment have brought a new level of complexity to attracting, retaining and upskilling talent. The key to success lies in embracing a holistic approach to talent management.
Think of the Cornerstone Talent Health Index (THI) as your compass to navigate this journey. It’s not just another metric — it’s a dynamic tool that empowers you to assess, strategise and optimise your talent management efforts. By delving into what THI offers, you’ll uncover a treasure trove of insights you can utilise to set a course for success.
Understanding the Talent Health Index: a holistic approach
First of all, what is the Talent Health Index?
Picture talent management as a puzzle. Each piece represents a different dimension of your organisation’s talent landscape. The THI combines these dimensions into four distinct maturity levels — Foundational, Administrative, Sophisticated, and Transformative — forming a complete picture to drive growth, productivity and success.
From the Foundational to Transformative levels, the Talent Health Index spans the entire spectrum of talent maturity and organisational wellness. You’ll encounter a unique blend of initiatives at each level, from basic compliance-driven actions to AI-powered innovations.
Within each level, these critical dimensions of talent wellness propel your organisation toward excellence:
- Enhancing culture and technology – Scale learning and growth to foster your people’s potential
- Refining content strategy – Curate content directly tied to business challenges as a solution
- Improving skills strategy – Help your staff achieve their own goals, and your organisation’s, through upskilling
- Boosting learning and development – Discover how to create more enticing learning experiences for your team
- Integrating performance management – Learn how to seamlessly tie performance conversations into employee learning
- Promoting talent mobility – Foster professional growth so your people know they have a place to flourish at your organisation
- Leveraging talent reporting, data and analytics – Utilise AI-powered technology to direct data-driven decision-making
The THI also helps close the 29% skills confidence gap between employers and their people. Only 59% of employees reported they were confident in their organisation's prioritisation of skill development opportunities compared to 88% of employers. With the THI, you can bridge the gap and reduce this discrepancy.
Research-based insights for elevating talent health
The Talent Health Index Report, led by the Cornerstone People Research Lab, is grounded in rigorous research and data that discovered most organisations are falling behind with their talent health initiatives. Derived from the wisdom of over 700 business leaders and 1,400 employees, it’s a map capable of guiding organisations through the intricate landscape of talent development on a global scale — straight from the people on the ground just like you.
Let’s take a journey through the four distinctive levels of talent maturity that the Index outlines — Foundational, Administrative, Sophisticated, and Transformative — each offering a structured framework designed to empower your journey toward a more vibrant and comprehensive talent strategy.
At this initial stage, think of your talent strategy framework as a bedrock upon which you build organisational success. This level addresses fundamental needs, lays the groundwork for growth, and ensures basic compliance with essential standards. By acknowledging the importance of these simple building blocks, you set the stage for a robust and agile talent management approach.
As you progress, your talent management approach evolves from manual to automated processes. This shift from administrative tasks to more strategic initiatives allows your organisation to focus on honing skills, exploring novel avenues for development and aligning talent strategies with broader business goals. The Administrative level emphasises efficiency, streamlining operations and embracing technological advancements that facilitate a more responsive and adaptive talent ecosystem.
The average Talent Health Index score in Australia and New Zealand is 86.7, placing them in the (Administrative) level. Many organisations in Australia and New Zealand may not be at the starting line, but there’s certainly room and opportunities for them to further develop their talent programmes.
At this stage, a pivotal change occurs: You shift from treating learning as an occasional activity to fostering a continuous learning culture. Analytics integration becomes a beacon, guiding your decision-making and strategy development. Skills become a universal language that unifies your workforce and promotes a cohesive understanding of organisational objectives. By nurturing a learning-centric environment, you empower employees to embrace growth, innovation and excellence.
The pinnacle of talent maturity is the Transformative level, where you harness the potential of AI-powered processes for strategic workforce planning. Here, you’re not merely reacting to change but proactively shaping it. Agile decision-making becomes second nature, enabling you to adapt swiftly to evolving industry landscapes. This level leverages AI’s capabilities to optimise talent management, ensuring your organisation tackles challenges and seizes opportunities in an ever-changing world.
The path to a thriving workforce
The heartbeat of every organisation is its people, and the THI paints a vivid picture of how you can appeal to their appetite for growth.
- 42% of employees express a need for more confidence in having the necessary resources to develop their skills
- 61% of employees are actively seeking additional learning content
Skilling strategy is the heartbeat of any healthy and mature talent programme. Organisations that commit to building their employees’ skills are better equipped to overcome future business challenges and keep their talent engaged.
- 89% of employers in Australia and New Zealand feel confident in their ability to develop skills vs 67% of employees
- 81% of employers feel confident that they are equipped to develop skills vs. 64% of employees
These stats point to a desire for continuous upskilling and development, underscoring the need for organisations to curate diverse and engaging learning opportunities. And the yearning for growth doesn’t stop at content alone.
- 63% of employees are eager to embrace coaching and mentoring, highlighting the significance of personalised guidance in nurturing talent potential
- 59% of employees are actively seeking career guidance, signalling a thirst for clarity and direction in their professional trajectories
Organisations need to understand exactly what employees need to be able to deliver better skills and development opportunities. Employees in Australia and New Zealand want to improve the skills development solutions provided by their organisations.
- 88% of employees believe that providing more coaching and mentoring opportunities are important
- 78% of employees want their organisations to provide more tailored, comprehensive career guidance
- Overall, 83% of employees believe that skills development solutions should give employees the ability to acquire skills that interest them
Creating a culture of talent development is key to scaling learning and growth inside the organisation
- 44% of employees in Australia and New Zealand say their organisation leverages learner-centric tools and technologies to streamline the flow of talent processes and information
In a modern performance management strategy, it is crucial to integrate skills and learning seamlessly by using approaches such as practising active listening, tracking progress and checking in often with employees.
- 40% of organisations in Australia and New Zealand say that performance management is viewed as a two-way collaborative process, supporting the business and the individual
Not all organisations are lagging in their THI maturity. High-Performing Organisations (HPOs) — those with higher customer satisfaction, productivity, employee retention and overall performance ratings — exhibited notably higher maturity levels. On average, HPOs landed at the Sophisticated level and were successful at refining content strategies, improving skills strategies and integrating performance management.
- 96% of employees at HPOs see their organisation tangibly demonstrate how they help them develop
- 92% express confidence in their talent development initiatives
- 96% believe their employer cares about them and their growth
Moving ahead through self-assessment
These key findings aren’t mere numbers. They offer actionable insights to shape your organisation’s talent health journey. When employees express the need for more resources, learning content, coaching and career guidance, they highlight areas where organisations can direct their efforts for meaningful impact.
The THI can help you understand where your organisation is at with all these metrics as you use them to assess your company. You can use the THI to identify gaps, chart progress and envision a path to improvement. Whether your organisation is still at the Foundational level or just on the cusp of becoming truly Transformational, it can help you take that next step to get where you need and deserve to be.
Paving the way to a resilient talent ecosystem
By embarking on this journey, you’re shaping your future, not just adapting to it. As HR admin professionals, technology leaders, talent acquisition leaders and business leaders, you are the key to unlocking your organisation’s true potential. The Talent Health Index serves as your trusted companion, providing insights, strategies and a compass to navigate the complexities of redefining your talent strategy.
The future beckons, and with the Talent Health Index in hand, you’re poised to lead your organisation toward excellence. Embrace the power of a holistic talent management approach. Let the Talent Health Index illuminate your path to a game-changing talent strategy.
Discover the data-driven insights you need to launch your org to the next level by learning more about the Talent Health Index here.
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The Talent Health Index: Unlocking your path to a future-fit strategy
How do you figure out how to cure organizational issues without knowing what true organizational health even looks like? If you have a hard time defining it, you’re not alone. Over 80% of organizations are grappling with the intricacies of adapting to rapidly changing workforce trends.
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