The five essential practices of a talent multiplier

Purpose – The authors set out to determine which human capital processes and practices were most strongly related to company financial performance. Design/methodology/approach – The authors surveyed more than 3,500 employees and more than 150 HR executives in 26 organizations, all of which had implemented a proprietary tool on human capital development. They used financial data from those organizations to identify 18 human‐capital management activities that are significantly correlated with financial results. They also interviewed more than 80 business and HR leaders. Findings – Analysis of the 18 activities led the authors to derive the five practices described in this article: align people practices with business needs; implement the practices with superior execution; enlist line managers in human capital management; make policies clear, fair, and consistent; and create an information‐sharing environment. Originality/value – The article eschews a focus of fads – “online cross‐functional team‐based brainstorming” – to realign readers on which talent management practices really lead to financial success. Although most companies will recognize the practices as fundamental, they will learn what may be preventing them from implementing the practices, and how some companies are leading the way.