ATD’s Talent Development Executive Confidence Index (TDXCI) for the second quarter of 2016 reveals that industry leaders continue to have a less positive outlook for the talent development function than they did in 2014 and 2015. The TDXCI provides a quarterly check on the health of organizational talent development functions across a broad range of industries. In the second quarter, 301 talent development leaders shared their outlooks for the functions that they oversee. The online TDXCI survey was administered in June.
The TDXCI is a composite score that takes into account four key indicators for how talent development executives believe the talent development function will change during the next six months:
- ability to meet talent development needs
- impact on corporate performance
- perception of the value of the talent development function
- availability of resources.
The TDXCI score stands at 60.9, identical to the score for last quarter. The score is reported on a 100-point scale, where a higher score indicates greater optimism. The current score is lower than any in 2014 or 2015, for all eight quarters in 2014 and 2015, it ranged from 64.3 to 68.8. Looking at the key indicators that make up the TDXCI score, we found that this quarter’s scores for all four indicators are below the average scores across all four quarters of 2015.
Most Executives Think Funding for Talent Development Will Remain Flat
Anticipated funding for talent development directly affects the confidence of talent development leaders and their departmental plans, and therefore influences the TDXCI score. Respondents were asked how they thought their workplace’s funding for talent development would change during the next six months. Slightly more than a quarter expect to see an increase in funding during the next six months. The majority of participants—more than half—expect funding to remain the same in the next six months, and just under a quarter expect a decrease in funding.
Most Expect Staffing Levels Will Also Stay the Same
To provide even more context for the TDXCI, ATD asked participants if they believed that staffing levels for the talent development function would change in the next six months. Two-thirds reported that they felt staffing levels would remain the same. About one in five anticipated expanding the size of their team through hiring, and one in six felt that the number of talent development professionals would drop.
Learn More and Get the Full Report for Free
Learn more about the TDXCI and download the latest report and past LXCI reports at www.td.org/tdxci. The full report provides an overview of the TDXCI methodology, takes a closer look at the four key indicators, and explains changes in economic indicators such as unemployment and gross domestic product and how these shifts are related to movements in the TDXCI.
