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TO ACHIEVE STRONGER BUSINESS AND TALENT OUTCOMES, MID-MARKET

ORGANIZATIONS NEED TO PRIORITIZE INCREASING TALENT MANAGEMENT MATURITY


For lean mid-market organizations, the road to talent management sophistication is often laden with
obstacles. According to our recent study, mid-market organizations1 often struggle to address the
demands of their growing workforce. The ability to evolve talent practices is particularly heightened by
a lack of resources, technology, and infrastructureimpacting an organizations ability to effectively
compete. A contemporary approach requires HR teams of any size to be more business-aligned and
consultative.2 Our report, High-Impact Talent Management: Talent Management Maturity in the
Mid-Market 3 is specifically geared toward helping mid-market organizations understand what mature
talent management looks like and, more importantly, offers guidance on how they can get there.

Navigating a Path to Mature Talent Management in Mid-Market


As compared with Global 2000 (G2000) respondents,4 mid-market organizations have lower levels of maturity
overall and focus primarily on the most foundational aspects of talent management. The maturity distribution
across levels is somewhat similar in mid-market and G2000 organizations (see Figure 1). Interestingly, only
3 percent of reporting mid-market organizations are represented at Level 3 maturity, while none have achieved
the highest, more aspirational Level 4.
Figure 1: Talent Management Maturity ModelMid-Market Organizations versus Global 2000 Organizations

Level 4

Mid-Market

Global
2000

0%

10%

3%

19%

90%

59%

7%

12%

MASTER 9/11/15
DO NOT EDIT

Inclusive Talent System


Clear, Targeted & Communicated Talent Strategy Fully Developed &
Integrated Talent Activities Aligned to Desired Strategic Outcomes
Relationships with Talent Are Systemic & Tailored Progressive Diversity &
Inclusion Approach Reflected in Policies & Employee Experience

Level 3

Managed Talent Relationships


Clear Talent Strategy & Analysis-Based Understanding of the Workforce Nascent
Execution of Systemic Talent Relationships Targeted, Integrated & Effective Leader
Growth Activities Strong Learning Culture Moving Beyond Compliance-Based
Diversity & Inclusion Activities

Level 2
Bersin by Deloitte

B R I E F

W H A T W O R K S

Understanding the Path to


Talent Management Maturity
in the Mid-Market

Critical Talent Growth


Increasingly Clear Talent Strategy for Critical Talent Segments Emerging Perspective on
Systemic Talent Relationships Effective at Implementing Essential Talent Activities
Learning & Leadership Activities More Targeted, Prominent & Integrated
Other Talent Processes More Sophisticated & Integrated

Level 1

Essential Talent Activities


Almost No Strategy Used to Direct Talent Management Activities Little Understanding or Interest
in Systemic Talent Relationships Essential Talent Activities (e.g., Performance Management,
Talent Acquisition) in Place but Often Inconsistent or Lacking Intention Talent Activities Often Siloed

Source: Bersin by Deloitte, 2016.


1
2

Bersin by Deloitte defines mid-market as private or public organizations that employ between 1,001 and 5,000 persons.

Global Human Capital Trends 2016: The new organizationDifferent by design, Deloitte Development LLC and Deloitte University Press, 2016, http://www2.deloitte.com/
content/dam/Deloitte/global/Documents/HumanCapital/gx-dup-global-human-capital-trends-2016.pdf.
3
High-Impact Talent Management: Talent Management Maturity in Mid-Market Organizations, Bersin by Deloitte / Denise Moulton, 2016.
4
For the purposes of these reports, we define Global 2000 organizations as those with more than $750 million in annual revenue.

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Copyright 2016 Deloitte Development LLC. All rights reserved.

A small group (7 percent) of surveyed mid-market organizations are at the lowest level of maturity (Level 1),
indicating that they still operate in siloes in an effort to support daily business needs. However, 90 percent of
mid-market organizations are represented at Level 2 maturity. This tells us that the majority of surveyed
mid-market organizations have mastered some of the foundational elements of talent management and should
begin to address the areas of talent managementthose which are more predictive of higher maturity, including
the development of meaningful, more systemic relationships with talent and talent strategy, for starters.
Our research demonstrates that increasing talent management maturity pays off in better talent and business
outcomes for high maturity (Level 3) mid-market organizations. We recognize that some mid-market HR leaders
may believe that increasing maturity is neither feasible nor a key priority,5 yet our research says that doing so can
return substantial benefits (see Figure 2).6
Figure 2: Business and Talent OutcomesMid-Market Organizations versus Performance of Global 2000
Organizations

Mid-Market

Global 2000

Anticipates change and responds effectively and efficiently

3.2 times more likely

1.8 times more likely

W H A T W O R K S

Outcome Name

Likelihood of Organizations at Level 3 Scoring in the Top


Quartile as Compared with Those at Level 1

B R I E F

Bersin by Deloitte. 180 Grand Avenue, Suite 320 Oakland, CA 94612 510-251-4400 info@bersin.com www.bersin.com

Assesses and selects the right candidates

3.2 times more likely

2.4 times more likely

Coaches and develops people for better performance

2.4 times more likely

3.8 times more likely

3 times more likely

1.7 times more likely

2.4 times more likely

3.6 times more likely

Innovates
Manages performance problems

Source: Bersin by Deloitte, 2016.

Our High-Impact Talent Management: Talent Management Maturity in Mid-Market Organizations 7 report reveals
five top findings from our research and discusses several areas in which mid-market organizations differ in their
talent management practices in relation to their G2000 counterparts. The study also suggests how mid-market
organizations can leverage the practices of our Talent Management Maturity Model that identifies areas in which
companies should focus their resources to develop more sophisticated talent management practices.
5
6
7

Bersin by Deloitte interviews.


High-Impact Talent Management: Talent Management Maturity in Mid-Market Organizations, Bersin by Deloitte / Denise Moulton, 2016.
Ibid.

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About Bersin by Deloitte


Bersin by Deloitte delivers research-based people strategies designed to help leaders and their
organizations deliver exceptional business performance. The Bersin by Deloitte membership gives
FORTUNE 1000 and Global 2000 HR professionals the information, action-focused tools and
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