It is a cornerstone of talent acquisition and development. Get the best people possible and keep them. A number of recent studies by McKinsey, The EIA and PMI have identified the key need for agile and talented staff to meet the challenges of the global marketplace in a rapidly changing environment. In the past businesses looked for long term and steady strategies to build their businesses. This is no longer good enough.
If you stand still, you will stagnate, innovation and agility are the new prerequisites for top performance.
There is a challenge today around the the 'recruit and retain' ideology. Many of the brightest and best do not want career security in one company. They want skills portability and a number of jobs in different companies, often globally, and their focus is Me Inc. not Your Company Inc.
I recently heard a great strategy to recruit and retain that took account of Gen Y mobility. Many companies are letting talented people go with their best wishes and an open ended offer to come back when they feel the time is right. By all accounts this is working well for many big consultancies and global companies.
Another option is to give talented staff a slice of the action, whether via share ownership or profit sharing. This works well for some people but not for others.
I think one thing is clear, and that is that market dominance will change quickly as talented people move around to maiximise their personal gain. Companies will need strategic human resource management in place to meet this threat.