Does Your Organization Invest in its Employees’ Training and Skills Development?
Organizations around the globe face extraordinary challenges when navigating through the current global economy. To thrive in the long-term, organizations must constantly innovate, evolve and transform.
One of the most critical factors that determines an organization's fate in this environment is the quality of its human capital and the way it manages its talent pipeline.
A recent report from the AICPA and CIMA showed that while most companies understand the importance of human capital, they do not appear to have the right systems, processes and information in place to manage talent effectively. Think about your organization for a minute. Does it invest in training and the development of talent and skills? Or does it view training as a compliance tool?
What about competitive advantage? Do you feel that the skills, experience, development and job satisfaction levels of an organization’s employees are sources of competitive advantage or disadvantage? A study by the Boston Consulting Group says ‘yes.’ They found that companies that are highly skilled in core HR practices achieve up to 3.5 times the revenue growth and as much as twice the profit margins of less capable companies. How does your organization manage its talent as a competitive advantage?
I’m interested to hear what you have to say. Please leave comments and questions below.
Arleen Thomas, CPA, CGMA, Senior Vice President - Management Accounting, American Institute of CPAs.