However, only 22 percent of those same respondents have integrated their current talent management processes. And fewer than half rate many of their current talent management practices as effective.

If a connection between business strategy and talent management is so important - particularly in today's environment - why are so many companies slow to execute it in an integrated and effective way? The answer may lie in the fact that 49 percent of those surveyed also believe full integration with business needs is one of the most challenging parts of the entire talent management process to implement and sustain.

The results of Towers Perrin's recent talent management survey affirm that the positive impact of effective integration is worth the effort. Those organizations with fully or mostly integrated talent management approaches are far more confident about the effectiveness of various processes than those without integrated approaches. For example, Canadian organizations with more integrated systems are far more effective in their Performance Management processes (86% are effective, versus only 54% for those with less integrated systems).

"These differences can put companies at a significant disadvantage as the economy strengthens and the labour market begins to follow suit," Aselstine continued. "Those without effective talent management processes, especially around high potentials and top talent, will not only have to worry about losing those individuals to other organizations, but are likely to have a harder time attracting new talent and bringing people on board fast enough to effectively support their growth focus. Time can become the enemy here if a company finds itself behind competitors because it can't source, hire and deploy the right people fast enough to make a difference in results."

Who Is "Talent"?

The very definition of talent is also evolving and expanding, according to the Towers Perrin survey results. Specifically, respondents now view talent as including critical contributors at all levels - a significant shift from the traditional focus on current and emerging leaders. While senior leadership was highlighted as a key talent segment by the largest number of respondents (67 percent), other employee segments followed closely behind:

-Mid-level potential leaders (cited by 61percent)

-High performers (cited by 59 percent)

-Key contributors/technical experts (cited by 55 percent)

-Those in roles critical to delivering the business strategy (cited by 48 percent)

-Those with skills in short supply and high demand (cited by 36 percent).