How building a long-term talent strategy can captivate investors

By Vincent Belliveau, Chief International Officer, Cornerstone

During periods of economic instability, investors consider several factors as part of their due diligence process to determine if a company is positioned for future growth. These factors include a strong business model, healthy financial figures, and a loyal customer base. However, intangible assets such as a company’s culture, employee engagement, and talent development strategy are increasingly being valued in business evaluations.

Investors want to know if a company is sustainably investing in its people, because they are the soul of every business. How employees are treated, their professional development, and their sentiment towards the organisation are crucial data points for investors.

Business performance and talent strategy are inextricably linked

The correlation between a company’s talent and its performance, including output, profitability, efficiencies, and other metrics, is exceptionally strong. According to a 2022 survey, high-performing organisations, those that surpass their peer group, placed greater emphasis on nurturing their people. For instance, whilst 76% of low-performing or laggard organisations made employee training and development a priority, 96% of high-performing organisations did so.

Furthermore, high-performing organisations not only place a greater emphasis on skill development, but their employees also share their belief in the value of this investment. There is only an 11-percentage-point difference between employers and employees in their perception of the effectiveness of this investment. In contrast, this difference rises to 42% for laggard organisations, highlighting a significant gap in understanding. Why is this significant? Firstly, a highly skilled workforce is more capable and efficient. Such employees can perform their duties better, driving greater success for the organisation overall, in turn attracting investors. Additionally, if employees feel that their organisation is investing in their growth and prioritising their development, they are more likely to remain with the organisation. This could result in significant onboarding and recruitment cost savings, in turn leading to greater profitability – a crucial factor for many investors.

Prioritise mobility to maximise agility

Talent mobility is another key focus area that investors will be looking for. However, the state of the global economy has brought about pressures, least of which is a turbulent job market. Where just a few months ago the rate of mobility within the global workforce, as well as the demand for new talent, was sky high, today paints a different picture. In fact, many companies have enacted layoffs or hiring freezes – meaning no new talent is coming in. In the UK, MPs have warned that the shrinking workforce is actually limiting the country’s economic growth – and these challenges are being reflected on a global scale as well.

Despite the challenging job market and hiring freezes, organisations should not freeze the development and mobility of their existing talent. Leaders should focus on maintaining flexibility and agility to continue attracting investors. The good news is that employees have a strong appetite for internal mobility, with 73% indicating interest in learning about new roles within their organisations globally. In contrast, workers who lack visibility into internal career opportunities are 61% more likely to plan to quit their job. Today’s workers clearly want the option to mobilise, so the question becomes: How can companies kickstart talent mobility and incorporate it into their culture?

Creating a marketplace of opportunities

Employees have shown a strong preference for self-service technology to discover internal mobility options, with an 80% higher likelihood of choosing this option. However, it’s important to strike a balance between technology and manager conversations, as the latter is still the top way for employees to gain visibility into growth opportunities according to learning leaders.

By leveraging technology to unveil hidden career pathways and creating an internal opportunity marketplace, employees gain more career autonomy while still benefiting from mentoring conversations with their managers. This approach promotes talent mobility and workforce agility, which is highly valued by investors, especially during uncertain times. Companies that prioritise talent management and internal mobility, like DPDHL, have already seen success in filling open positions and mobilising the workforce. People, skills, and opportunities are the new fuel that powers businesses.

The landscape of business is evolving, and the fuel that powers it is no longer solely revenue figures and projections. Instead, it is people, their skills, and the opportunities they bring. Companies that recognise and prioritise talent management in their business strategy will stand out to today’s investors. The ability to move talent around the organisation is crucial for fostering agility and resilience in the face of any challenges that may arise in the future. In short, talent mobility is the key to unlocking success and future-proofing businesses.