The New Frontier – Talent as the Central Theme to Resource Management
This article covers a major flaw in management reporting. Talent.
Talent acquisition, development and retention have always been an ingredient for business success. Since the 1970s a transition has taken place. Talent has universally become the essential ingredient responsible for corporate success.
As the world evolved from the age of industry to the age of information, human capital (talent) is becoming the benchmark for corporate prosperity. Jobs and businesses based on human intelligence are continuing to grow. Over the last 45 years business value has shifted from asset and product based to intellectual and service based.
The information in the graph above is from Ocean Tomo. It divides corporate market value on the S&P 500 between tangible (brick and mortar) and intangible (human/Intellectual capital) assets from 1975 to today. Most of the shift from tangible to intangible value is the result of talent...which as prescribed by current accounting rules normally treats payments for talent as expense, rather than an investment,
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