Businesses need to have a secure people management strategy in place to ensure that they do not lose their top talent.
That is according to Charles Tilley, chief executive of the Chartered Institute of Management Accounts (CIMA), who warned that a "boardroom divide" between senior management and human resources departments could destabilise company growth by allowing the best talent to slip away.
"It's vital that organisations embed a robust human capital strategy within the wider business plan and develop appropriate metrics and key performance indicators that are subject to the same level of scrutiny as financial data," he said.
It comes after a report commissioned by CIMA and carried out by the Chartered Global Management Accountant (CGMA) revealed that there is a large difference between how those in senior management roles view talent development and how is it seen by human resources departments.
According to the results, 83 per cent of HR directors believe that there is a disconnection at the highest levels with regards to talent management, but only 30 per cent of chief executive officers and chief financial officers agreed.
Similarly, while 77 per cent of CEOs advocated cutting the amount of funding that is invested in areas like workforce skills, training and qualifications, just 18 per cent of HR directors agreed.
This inconsistency could create an inability to attract or retain talented workers, which can have a significant impact on a firm's economic growth.
More than two-fifth of survey participants said that the failure to achieve key financial targets could be attributed, at least in part, to ineffective people management.
Arleen Thomas, CGMA senior vice-president, management and accounting, commented: "It is clear from our research that many companies are falling short of their potential because they lack thorough, relevant information about their people to support effective strategy, hiring and training decisions."
Some 40 per cent of respondents said that poor talent management skills had reduced their company's ability to innovate.
It comes after a Global Competitiveness Report published by the World Economic Forum revealed that a rise in workplace conflict is having a detrimental effect on the UK's performance on the world stage.
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