NEW YORK (MMD Newswire) February 20, 2009 -- A majority of companies are increasing or maintaining their 2009 spending on talent management activities despite the current recessionary challenges, according to the 2nd Annual State of Talent Management study released today.

The study was produced by the New Talent Management Network (www.newtmn.com) whose 800+ members are senior talent management professionals worldwide, in partnership with Development Dimensions International (DDI). It found that 77 percent of companies will increase or maintain their 2009 spending levels in such areas as succession planning, high potential development and executive coaching. Nearly 40 percent of those surveyed plan to increase their spending on talent management activities.

"Companies with the best talent will emerge from this recession more quickly and with a great competitive advantage," said Marc Effron, founder of the New Talent Management Network. "But companies must build better talent practices today if they hope to achieve that advantage."

The survey of 165 companies, conducted in October and November of 2008, also found that this investment may not yield the expected returns due to ineffective corporate talent development processes and a shortage of senior talent management professionals.

The study's three primary conclusions cast doubt that many companies can build the talent needed to compete. The study found that:
1. Talent Management (TM) professionals don't believe current talent practices are effective. Only 28 percent of TM professionals believe they have enough high potential leaders to meet future needs and less than 30 percent say that their company's executives would rate any of their company's talent building practice as always effective.
2. A significant shortage of senior talent management professionals exists: Sixty -five percent of respondents said that recruiting high quality TM professionals at the VP level was either very difficult or impossible. Forty-two percent found Director level TM professionals highly challenging to recruit.
3. Talent management groups accelerate the growth of senior leaders and executives: TM groups increasingly focus on developing the capabilities of senior leaders and building bench-strength for executive roles. Ninety-three percent of TM groups lead succession planning processes and 91 percent of high potential identification and development processes for senior leaders and executives in their organizations.

"Companies are expressing confidence in Talent Management professionals' abilities by keeping these strong budgets in place," says Effron. "It's up to this profession to prove that their executives' trust has not been misplaced."

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