What are the Benefits of a Talent Philosophy? A Guide to Talent Management.

A talent philosophy is the company’s belief about the most effective way to manage talent to achieve the business strategy and its culture. By definition, the more people are managed in this way, the more successful the company will be in the end.

Why Do You Need a Talent Philosophy?

The value of a Talent Philosophy is based on the answer how the company plans to manage talent to achieve its company’s strategy. Given that few companies have an explicit Talent Philosophy, this leads often to managers’ individual preferences and biases often guide the important choices made about employees’ careers.

If employees don’t understand why some employees receive rewards, they will assume the company is fundamentally unfair in its compensation approach. Without a Talent Philosophy the company will face the following risks:

  1. More turnover of high potentials;
  2. Decrease in employee engagement;
  3. Growing capability gaps.

A Talent Philosophy will ensure your company has a disciplined approach to making decisions about talent and your employees feel decisions affecting their careers are made in a fair and unbiased manner.

Creating a Talent Philosophy

Research shows a complete philosophy should provide guiding principles on 5 elements:

  1. Performance: What are the consequences of higher or lower employee performance.
  2. Behaviour: How much do behaviours matter and at what is the threshold.
  3. Differentiation: How are the company’s resources and rewards distributed to different levels of performance and potential.
  4. Transparency: How open is the company with employees about their performance and potential for advancement.
  5. Accountability: To what extent should managers be responsible for developing and managing their teams.

The Talent Philosophy should provide clear and consistent principles for individuals to grow their careers. The talent practices that bring the Talent Philosophy to life will provide managers with the resources to serve as talent coaches to employees by setting clear expectations, providing regular and transparent feedback, recognition and guidance on what is needed to develop professionally.

In addition, it provides enhanced transparency for your workforce regarding performance expectations and what is required for each of the employees to attain the career aspirations.

The Positive Impact

The goal is to establish your organisation as a place where people love to work, where employees have the potential to develop as future leaders, experts and valued contributors. There are several ways the philosophy will impact employees, managers and the company.


  • Have clarity on performance expectations and feedback.
  • Know what is needed to reach career aspirations.
  • Are committed and inspired to realise their potential.
  • Have passion to deliver above and beyond for customers.


  • Have tools to serve as talent coaches.
  • Set clear expectations for their teams based on results and values.
  • Give regular, transparent feedback and recognition.
  • Guide the teams on what is needed to grow their careers.
  • Differently invest based on performance and potential.


  • HR activities are aligned to the Talent Philosophy.
  • Employees will embody the values.
  • Foster inclusion and diversity of the workforce.
  • Recognised in the market as talent magnet.


Learn 10 Factors for Successful Talent Management.


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