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Growing your own talent generates better results

Peter Møller Christensen 


28 May 2014

PA is quoted in an article in Børsen about the benefits to organisations which grow their own talent. PA refers to a PA study that reveals that in organisations where 51–100% of posts on the Executive Committee were filled through internal appointment, TSR could be up to 51% higher than in organisations where less than 50% of posts were filled through internal appointment.

According to PA, the value of talent development lies in two areas: “‘Softer’ issues such as attracting and maintaining the most skilled employees are important. However, another significant aspect is adapting talent development to strategic focal areas in the company so that it supports the business. Our experience shows that combining these two areas creates the biggest value.”

Referring to previous PA research, PA explains how Danish companies lag behind those in other countries in terms of developing internal talents: “Our global study reveals that companies where more than 50% of posts are filled through internal appointment outperform the general TSR benchmark by 28%, while the companies that are below 50%, underperform by 23%.”

PA concludes by saying there is a discrepancy between what companies say and what they do when it comes to talent management: “Senior executives often say that they prefer developing their talents internally, but when comparing this with information from sources such as LinkedIn profiles and corporate websites, there is a contradiction. This may indicate that we overestimate the need for, and value of, external inspiration.”


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