How companies in Switzerland identify and develop talent
A joint research project by the Lucerne University of Applied Sciences and Arts and the University of Lucerne examines how organisations in Switzerland identify, develop and retain talent. The second phase of the study highlights trends, challenges and future directions in Talent Management (TM).
Rapid technological change, demographic shifts and increasingly volatile business environments are making it harder for organisations to attract and keep the people they need to succeed. Yet managing talent effectively requires significant investment, carefully designed TM processes, and balancing the competing expectations of multiple stakeholders – from employees and line managers to HR professionals and executives.
A survey of 245 organizations
The report, “The Talent Challenge”, is the second study to emerge from the research project, “The Talent Recipe”, funded by the Swiss National Science Foundation.
The first study in the series established a typology of tensions in talent identification and examined how organisations navigate these challenges. Building on that foundation, “The Talent Challenge” presents findings from a survey of 245 organisations across Switzerland. It explores how different TM approaches translate into short- and long-term outcomes, such as leadership pipeline strength, employee retention and organisational performance.
Participating organisations were selected based on their implementation of formal TM processes. These include systematically identifying critical positions, recognising employees with high potential and performance , and/or offering development opportunities for such talent. The study focuses on “exclusive” TM practices – those aimed at individuals or roles considered particularly valuable to the organisation.
Key insights
The report shows that even though many organizations have only recently introduced their TM processes – 50% within the last five years – most already pursue a clearly strategic approach. However, fewer than 10% of employees are currently part of formal talent pools.
Growing future leaders (82%) and retaining key employees (79%) rank as the top objectives of TM initiatives. However, only 27% of organisations view their TM practices as highly effective. “This is surprising considering that CEOs and line managers often view TM as a top priority and invest substantial resources in their TM practices,” explains Sarah Kost, co-author of the study.
Transparency is a key challenge in TM, with most organizations being rather secretive about processes and outcomes, especially towards non-nominated employees. Kost sees communication as a major sticking point: “Deciding how transparent to be – for instance, whether to tell employees they’ve been nominated as talent – involves trade-offs. Disclosure can boost motivation and engagement among selected employees but may also lead to frustration and demotivation among those not included in the talent pool.”
Challenges and tensions
The study highlights several persistent tensions: balancing flexibility with stability, ensuring fairness in selection, and managing expectations of those identified as talent. Interestingly, 71% of organisations remove talent status when performance drops, and 46% do so after a promotion – indicating that “talent” is often a temporary designation.
High-potential employees receive, on average, nearly twice as much training as others (9.6 days per year versus 5.1), yet a third of organisations lack regular feedback mechanisms on talent development. Fewer than half have formal development plans in place. Kost attributes the limited use of feedback to an unclear allocation of roles and responsibilities: “When roles aren’t clearly defined, feedback becomes discretionary and depends on the line manager, who may not always be equipped or incentivised to coach talents, or may prioritise daily operational tasks over talent management.”
Looking ahead
Digitalisation is beginning to reshape TM. Tools such as Excel, SAP SuccessFactors, and Workday are widely used, though 17% of organisations still manage TM without digital support. Many companies (74%) acknowledge the importance of skills-based approaches, but only a small fraction (17%) have implemented a skills taxonomy or conducted a skills audit (12%).
The researchers conclude that more inclusive, transparent and data-driven approaches will be crucial for future success. “Impact depends on consistent implementation,” Kost explains, noting that embracing digital tools and developing clearer definitions of skills and potential can help organisations navigate the growing complexity of talent challenges.
