Talent Development

How can your organization thrive in the digital economy of today and tomorrow? Focusing on
your most valuable asset – your people – can make a huge difference, hence why talent
development is becoming a priority. Let’s explore what talent development is and how a targeted
talent development strategy can help improve organizational performance and contribute to
business sustainability.

Talent development refers to strategically developing employees’ skills based on organizational

For employees’ training and development to be successful, the talent development strategy must

align with business objectives and business needs. Employees who are on board with company

goals already have long-term career success in mind. They can see where they want to be in the

organization in the near future and are willing to stick around if an employer is willing to invest

in their career. They also must see a clear connection between their personal goals and the long-

term goals of the organization.

An organization that wants to secure its place in the future understands that employees need

structure, support, and encouragement to maintain a high set of skills and knowledge. That’s

where a talent development program with a strong basis in company objectives has a better

outcome than one that is limited or non-strategic.

Talent management vs talent development

The terms talent development and talent management are often used interchangeably; however,

there is a difference between the two, and both are important when it comes to the growth of

your employees and business.

existing employees in line with their professional goals and the wider goals of the company. The

objective of talent development is to help employees enhance their skills and knowledge, which

in turn contributes to the organization’s growth and success.

On the other hand, talent management is a broader term that refers to a strategic approach to

managing human capital in an organization. It encompasses a wide range of HR activities aimed

at attracting, recruiting, developing, and retaining employees. These activities include

performance management, succession planning, and employee engagement.

In summary, while talent management is a comprehensive approach that covers various aspects

of managing and optimizing the workforce, talent development is a subset of talent management,

specifically focused on improving the abilities and potential of the organization’s current

employees.

Adobe

Adobe offers on-demand courses to its employees so they can build a variety of skills, and they

offer financial support for external academic pursuits ($10,000 per year for long-term courses

and $1,000 per year for short-term ones). They also offer “Accelerate Adobe Life,” which is an

extensive feedback program that allows new and current employees to choose specific areas

where they would like development support. The company has a 33% internal hiring rate and a

20% annual promotion rate. They also have an overall satisfaction score on Indeed of 4.3 out of

5.
Costco Wholesale

Costco created a “Journeys for All” program, which offers employees the chance to upskill, be

mentored, and network. There’s also a “Supervisor in Training” initiative where qualified

warehouse employees can explore and familiarize themselves with managerial duties and a

merchandising training course to give employees a solid background in Costco’s core business.

These talent development strategies have led to Costco consistently placing in top positions on

the World’s Best Employers list by Forbes. In addition, 60% of employees have been in the

company for more than five years, and most warehouse managers were promoted within the

company from an hourly role.

If you are concerned with the growing number of skills gaps in your organization or struggle to

retain your top performers, talent development can be the difference between success and failure.

Here are some reasons why your organization should prioritize an integrated talent

development program.

Reducing skills gaps and future-proofing the organization

With 87% of companies worldwide acknowledging that they have a skills gap, the continual

development of employees is more important than ever to help them and your organization

thrive. Talent development strategies can help to bridge skills gaps, empower your employees,

and prepare you as a business for the future.

While new technology is expected to make many jobs obsolete, it is also creating new types of

jobs and demanding new skills at an accelerated rate. According to Boston Consulting Group,
tens of thousands of new jobs will be created by 2030, and as much as 60% of the workforce will

require training by 2027.

As a result, the need for skilled labor in computer-focused, STEM, healthcare, social services,

and education is expected to increase but will suffer the most shortages. Factors outside of

technology that continue to create talent shortages include the retiring of an aging workforce,

more adults getting retrained or switching careers, and economic factors driving candidates

toward higher-paying careers.

A talent development program can prepare your workforce to face an uncertain future and

empower employees to develop their skills and competencies. In turn, making sure that your

workers have the skills and capabilities to help you reach your business goals will give the

organization a competitive advantage. A McKinsey survey showed that 99% of respondents who

said their company’s talent management was very effective also said they outperformed

competitors compared to 56% of all other respondents.