Organisational growth requires understanding your people

A report by the Chartered Global Management Accountant (CGMA), Talent pipeline draining growth: Connecting human capital to the growth agenda has found that failing to draw on the talent and expertise of employees can result in significant difficulties with growing the business and reaching financial targets.

CGMA surveyed over 300 CEO’s, CFO’s and HR Directors and found that almost half (43%) of respondents thought that ineffective people management had contributed to difficulties achieving financial goals in their organsiations, while two-fifths (40%) claimed it had reduced their ability to innovate.

In the context of the global financial crisis, the skills, experience, development and job satisfaction levels of employees are emerging as major sources of competitive advantage or disadvantage. Companies with highly skilled HR practices achieve up to 3.5 times the revenue growth and twice the profit margins of companies less skilled in talent management.

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