Danny McCance 29 Nov 2017 11:17am

Talent location is key to profits, says EY

Where talent is placed can increase productivity and performance, suggesting firms can profit from a more strategic approach to hiring

A report by EY and online professional network LinkedIn found that those misaligning their work force with global-sub-sector growth could be missing out on millions of dollars.

It suggested that companies tend to align their workforce to more mature markets, when they could be making increased profits in better locations.

For example, between 2013 and 2016, the top quartile of those improving their talent alignment saw profit increases 7.8% greater than those in the bottom quartile.

Additionally, the report found that if an organisation in the pharmaceutical sector, for example, improved its talent-to-market alignment by 10%, it could increase yearly profits by $77m (£57.47m).

The same applied for national economies, as a link was found between where a company is headquartered and how it aligns its best people to that country’s markets, and the profits it stands to make.

The report gave the US as an example of best alignment (0.77 compared to the global average of 0.48) between talent and market opportunity – if UK-based firms had a similar market alignment to US-based firms this could be worth $900bn (£671.76) in GDP.

Ireland, Japan, China and Canada were all also noted as having a global average of 0.48 for talent alignment used in the report.