Why a Talent economy ?

These past few years, there has been a growing noise (leading thinkers and articles) pointing at a fundamental change in the economy. The economy would be moving towards what I call a Talent Economy, that others have called talentism or laborism. And this is not only because talent has become the scarce resource in the economy.

The key fact is that, today, capital owners take few risks compared with employees and entrepreneurs. Capital markets are so diversified that a particular investor more often than not has an almost insignificant stake in any corporation, either directly or through his asset manager. On the other side, employees, when they invest in learning the ways, practices, expertise of a corporation, are making a significant investment of their time and energy. The longer they stay, the more important the investment. And, if the organization does not reach its goals, goes bust or if the employee himself is laid-off, he might have lost a significant part of that investment.

A growing awareness of this situation is developing. It can help HR and leaders build competitive advantages based on people engagement and collaborative skills. Because, as they understand the value of their investment, people will be eager to pay back organizations that make strong investments in their development, and that, no matter how the economic environment might evolve, strive to keep good and professional relations with all employees that went though their ranks.

People will benefit from any investment in their professional development. The organization will benefit even more, as it has to gain from skill development, engagement, enhanced reputation and innovation.

Investing in people has never been a safer bet.