When I was leading a $5 million-dollar manufacturing company, I thought I had everything figured out. My leadership team and I had crafted a differentiated strategy that we were sure would lead to massive growth. But as the months went by, our growth remained stagnant. Why? We hadn’t placed the right people in the right roles, and it was costing us dearly.
This realization prompted a critical mindset shift. We were treating people issues reactively rather than proactively. When there was a problem costing us six figures in missed opportunities, we scrambled to fix it. But when it came to our people, we lacked a clear plan. It became evident that to truly thrive, we needed to treat talent planning with the same level of seriousness as financial forecasting or strategic planning.
People issues are the number one factor limiting company growth. Whether it’s about disengagement, unfit roles, or skills gaps, the cost of not addressing talent issues is immense. According to Gallup’s State of the Workplace 2021 report, lost productivity of disengaged employees amounts to 18% of their annual salary. On top of that, replacing workers can cost between half to twice their annual salary. For example, replacing an employee earning $50,000 a year could cost anywhere from $25,000 to $100,000. These figures highlight the financial burden of disengagement—but beyond the numbers, it’s a cultural drain that prevents companies from flourishing.
The solution? Proactive talent planning—a process that ensures your employees are not only in the right roles but also engaged and thriving. Talent planning represents an investment in people, yielding numerous returns: retaining your rock star employees, improving recruitment and development practices, and attracting high-quality talent.
Here, we’ll dive into the Talent Planning Process—a structured approach that has helped companies maximize their workforce potential, enhance engagement, and ultimately drive growth of their people and organization
The Seven Steps of Talent Planning
- Step 1: Process Prep
The first step is assembling your talent planning team. Identify who will lead the process—often, it’s the company leader or an external advisor. The team must understand the Talent Planning Process inside out. During this stage, team members also complete behavioral science assessments to enhance self-awareness of their behavioral styles, motivations, and communication preferences. This is also where each person prepares to present their life story and behavioral style, setting the stage for deep interpersonal connections.
- Step 2: Team Development Session
To develop a great strategy, teams need to foster candid, transparent communication. This session is all about getting to know one another on a deeper level. Team members share their personal stories, behavioral styles, and motivations. This openness helps create a foundation of trust and encourages the tough conversations necessary to solve people issues. It’s often referred to as “getting the team in their underwear” because it’s about vulnerability—understanding where everyone is coming from and what makes them tick.
- Step 3: Strategy Session
In the strategy session, the team sets the “bullseye” for where the company should be in three years. This includes the strategic vision and financial vision—essentially, a blueprint of what success looks like for the company. These documents will serve as the guideposts for making decisions, including talent-related ones.
- Step 4: Talent Vision & Sprint Goals Session
Once the company’s strategic vision is defined, it’s time to craft a talent vision that aligns with that future. What does the organization need to look like to support your growth objectives? For example, if you want to grow from $10 million to $20 million in revenue, what functional structure is necessary to support that scale? Here, the leadership team also sets short-term sprint goals—defining the action steps needed to move closer to the three-year target.
- Step 5: Leadership Team Talent Plan
With a future functional structure in place, the next step is developing a three-year talent plan for the leadership team. This includes identifying gaps, development needs, and succession opportunities. This plan is the bridge that connects where your team is now with where it needs to be to achieve the company’s vision. It also involves individual meetings with direct reports to make sure everyone understands their role in driving the company’s growth.
- Step 6: Department Plans
After the leadership team finalizes their talent plan, it’s time to engage the rest of the organization. The leadership team shares the overall strategy and talent plan with all employees, which initiates department-level planning. Each department develops its own plan—including specific action steps, deadlines, and owners—to support the company’s growth.
- Step 7: Execution Cadence
The final step is ensuring continuous growth through an effective execution cadence. This means setting up regular meetings to check on progress, keep communication channels open, and maintain accountability. It’s about establishing a culture of consistency, transparency, and growth—both for the company and for the people driving it.
Talent Planning as a Competitive Advantage
In today’s world, most businesses are still hiring, offering competitive hiring bonuses, and incentives, the true differentiator isn’t who offers the biggest signing bonus—it’s who can foster a culture of proactive talent development and employee engagement. Talent planning not only helps you hold on to your best people but also draws in new talent from companies that neglect to invest in their people.
Taking a proactive approach to talent planning is an ambitious mindset shift, but it’s one that delivers substantial rewards. When companies treat their people like a key part of their growth strategy, they cultivate a motivated, aligned workforce that is ready to take the organization to new heights. The Talent Planning Process serves as the blueprint for this transformation, guiding leaders step-by-step to make sure they have the right people, in the right roles, doing the right work.
Are you ready to stop reacting and start planning? Follow these steps and watch your company’s talent—and success—soar.
