The Case for a Talent-Focused Corporate Board - Linda Keene Solomon
In an era where technologies like Machine Learning (ML) and Artificial Intelligence (AI) are increasingly handling routine tasks, talent acquisition and skill development remain critical to an organization’s success. Yet, many still believe that this responsibility lies solely with management. Today, it’s clear that implementing a strategy-aligned talent program is not only the duty of CEOs but also a key concern for corporate boards across the country.
According to Deloitte’s “Global Human Capital Trends” report, 87% of leaders believe that a strong talent strategy is essential for achieving organizational goals, and 75% of companies are now integrating talent metrics into their business strategies. This data-driven approach enables boards to make informed decisions about talent management. As companies face a shortage of qualified candidates, it is evident that talent acquisition is no longer just a management function; it’s a strategic priority that demands the board’s attention.
The Shift in Talent Management Oversight
So, what’s driving this shift in board thinking about talent? The U.S. Bureau of Labor Statistics highlights millions of unfilled job openings, especially in technology, healthcare, and manufacturing. A 2021 survey by Manpower Group found that 69% of employers worldwide struggled to find candidates with the right skills, and in 2024, that challenge remains. As companies adopt advanced technologies like AI and data analytics, they need skilled professionals who can leverage these tools strategically.
Boards have a unique role to play in ensuring their organizations are equipped with the right talent to gain and maintain a competitive edge. By taking on a governing role in talent development, boards align workforce capabilities with long-term strategic objectives.
A National Association of Corporate Directors (NACD) report found that by 2019, 80% of corporate boards had added talent management as a formal agenda item. Now, in 2024, with the growing talent challenges, boards must continue to move beyond the traditional view of talent as a purely managerial function.
Real-World Examples of Board Talent Focus
Many corporate boards have restructured committees to focus on talent. For example, some have expanded the scope of their Governance or Compensation Committees to oversee talent strategy, while others have created entirely new talent-focused committees. These boards recognize that integrating talent oversight into their governance framework is critical to long-term success.
A Call to Action: Cultivating a Skilled Workforce
Focusing on talent is not just a board’s option — it’s a necessity for long-term success. Boards should take three specific actions in their talent oversight role:
- Guide long-term talent strategies that align with the company’s strategic goals.
- Establish talent oversight protocols to ensure management is accountable for progress.
- Ensure the company has robust talent pipeline-building strategies to meet future needs.
Investing in long-term talent strategies is vital for maintaining a competitive edge across industries, from healthcare to finance to manufacturing. Boards must foster a culture that attracts and retains top talent while ensuring their organizations are prepared for the future. This includes partnerships with educational institutions, innovative employee training investments, and initiatives that improve retention and build a strong talent pipeline.
In addition to these initiatives, boards should promote a culture of continuous learning. As workforce needs evolve, boards must ensure that companies are investing in upskilling and reskilling employees. By supporting lifelong learning programs, boards can help companies meet both current and future talent challenges.
Oversight and Accountability
Research from NACD shows that boards actively engaged in talent governance drive greater organizational success. Boards should regularly monitor talent strategy execution through performance metrics and updates. By setting clear objectives and holding management accountable, boards ensure that talent efforts align with organizational goals and respond to workforce changes.
To achieve this, boards can expand existing committees or establish a dedicated talent committee to oversee recruitment, retention, and pipeline development. This oversight helps align talent acquisition efforts with the overall business strategy.
Building the Talent Pipeline
To secure a steady flow of skilled talent, boards must collaborate with management to identify future skills and proactively engage potential candidates early in their careers. This includes working with schools to develop STEM initiatives and establishing mentorship programs and internships that connect the company with the next generation of workers. Boards should ensure companies invest in local communities to build strong talent pipelines that address future workforce needs.
Boards must also challenge their companies to push the boundaries in talent development. The responsibility of building America’s future skilled workforce doesn’t stop at management — it extends to the boardroom. Companies under the guidance of proactive boards can establish results-oriented programs that prepare young talent for future careers, ensuring a continuous flow of skills into the company.
In Conclusion: The Board’s Talent Responsibility
The responsibility for talent acquisition and development is no longer confined to management. Boards must now recognize their vital role in shaping long-term talent strategies that drive innovation and growth. By fostering a culture of continuous learning, investing in pipeline building, and ensuring the execution of strategic initiatives, boards are crucial to securing the talent needed for long-term organizational success.
As we move forward, boards must actively engage in talent governance. In future articles, we’ll explore the three specific talent-focused roles boards must assume in greater detail. Now is the time for boards to take action and embrace their role in cultivating the workforce of the future.
Linda Keene Solomon
- Strategic Impact Creator
