Borrowing Brilliance - Part I: Adapting Market Segmentation for Human Capital Management
Applying segmentation principles to talent management
The world of marketing has brought forth a plethora of strategies and insights that have revolutionized the way businesses understand their customers and tailor their offerings. One such principle, known for its effectiveness, is the concept of market segmentation. However, these principles are not exclusive to marketing and can provide valuable insights for other business functions, particularly human resource management.
Professor John W. Boudreau, a prominent figure in the realm of human capital management, suggests that the methods used to understand customer preferences and behaviors can also be employed to understand employees. This perspective brings an exciting twist to the traditional human resources approach, particularly in understanding how employee segments drive business value.
The concept of market segmentation has its roots in the recognition that not all customers are the same. Different groups of customers, or segments, have different needs, preferences, and behaviors,…