Most companies track underperforming products closely, yet many overlook underperforming talent. This costly oversight creates more than $8.8 trillion of “talent debt” globally, with Gallup tying disengagement to 37% higher absenteeism, 18% lower productivity, and 15% lower profitability. Left unaddressed, talent debt erodes culture, drains morale, and cuts into profits. The good news? Many of the same strategies used to manage inventory can also help manage talent. Here are three practical tips to start with:
Maintain an Organized Tracking System.
Without a clear view of employees’ skills and current applications, organizations risk underutilizing high-potential employees or misaligning talent in ways that waste resources. A detailed skills inventory not only highlights gaps but also reveals hidden strengths, ensuring the right people are placed in the right roles and enabling smarter decisions around training, succession planning, and resource allocation.
Optimize Your Assets.
Just as products sitting idle on a shelf lose value, so too does talent that is unproductive or underutilized. To ensure your workforce continues to grow in value, it’s imperative to invest in ongoing training and development while also creating opportunities for employees to apply new skills.
Act Quickly on Underperformers.
Performance issues demand swift action to prevent wasted time and money. One survey found managers spend 17% of their time—nearly a full day each week—managing underperformers, and that’s on top of the lost productivity of the employees themselves. While the best outcome is resolving issues quickly, leaders must also know when all options are exhausted. Just as warehousing obsolete inventory drains profitability, so does holding onto talent that no longer contributes.
