In today’s competitive market the way an organization perceives their employees has a huge impact on their productivity and retention of staff. Many organizations are still glued to perceiving their staff as a resource, this is a traditional and outdated term. The key function of a resource in business terms is essential to reach your goal. Resources are often perceived as finances, physical space, equipment, technology, and staff.

If we look at it from a broader perspective, companies are reluctant to reward or recognize a resource. In their defence, the individual was hired to perform and complete set task. So, to reward someone for doing their set duties is out of the question. However, part of the reason they were hired is because they posses certain skill sets that are considered as talent.

Viewing staff as talent represents a fundamental shift from traditional resource management practices to a people-centric approach that values individual potential and fosters organizational growth. By investing in talent development, you are indirectly promoting a culture of innovation, and prioritizing employee engagement, organizations can position themselves for long-term success in a dynamic and competitive business environment.

At the core of every incentive programme there needs to be a return on investment (ROI). We encourage organizations to always look at their set objectives. If you invest in talent and see this as a long-term benefit to your organization, you will reap great rewards. Talent economy is a vital scope for any business. Talent Economy seeks to challenge core assumptions about how people enter the workforce, how they work together, and how to develop their potential.

Unfortunately, when we look at reward and recognition programmes used to attract and retain talent, most are tweaked versions of old compensation models designed to reward low-value routines. We should not just look at rewarding basic behaviours to drive individuals to perform. Most companies don’t see the desired results of their reward and recognition programmes due to the outdated models on which they are built.

It’s important that we choose to reward the right talent to achieve the best outcomes for our businesses. As an organization there is one thing you don’t want to find yourself doing and that is paying more for talent and not seeing the set results. Here’s the impact, we perceive staff as a resource, then build reward measurements around that resource to achieve set targets and in return get minimal results.

I recently read an interesting article and it had me thinking about talent and the impact of using your set resources effectively. A container ship’s engine was broken and would not start, so mechanics tried everything they can but were unsuccessful. The owners called in an expert who has been fixing engines for many years. After inspecting the engine, the expert reaches into his bag and pulls out a small hammer. He gently taps something in the engine room, and the engine immediately starts.

A week later, the owners receive an invoice for $10,000–$20,000 for the repair. They are shocked and ask for an itemized bill, saying the expert didn’t do much. The expert sends a second invoice, explaining that the cost is for his years of experience and expertise, which are the result of hard work, experimentation, and sometimes tears. The moral of the story is that while effort is important, knowing where to put that effort makes all the difference. So, although you have set resources, rewarding and recognizing talent can make a difference in their efforts.

It is therefore important that we don’t find ourselves measuring performance solely against result targets. Our thinking needs to change, we must change how we perceive staff and how we seek to reward and recognize staff. When we adapt a new way of thinking and understand our talent, we use that talent to not only achieve company goals, but to go beyond what was set. For talent and resources to work in harmony we need to build with the correct models.