The hidden cost of outdated talent models

Alex Lawrence • 12 January 2026

Organisations across the globe are experiencing the same challenge: traditional talent systems are no longer helping people grow or stay engaged. 

Employees want meaningful stretch, leaders want teams that can operate at higher levels of complexity and HR wants space to be strategic. Yet most organisations are still using models that no longer match how people learn, think and thrive. 


So, what are the core issues that prevent organisations from building teams that are genuinely future ready, and how can we efficiently evolve processes and strategies to nurture an adaptable fit-for-tomorrow workforce? 


The core challenges holding organisations back 

Growth feels flat because work is not stretching people 

Employees rarely leave due to pay or titles. They leave because the work stops challenging them. Horizontal job expansion does not feel like real growth, so people disengage quickly. 

A recent survey by Indeed shows just this; seeking new challenges (18%), lack of recognition (17%), lack of career prospects (16%), having stayed too long in the same role (15%), and feeling underutilized (13%) are among the main reasons employees consider resigning. 


High potentials are hidden inside capability-blind systems 

Most talent assessments focus on personality rather than cognitive capability. As a result, organisations overlook the strategic thinkers they most want to retain. 


Leaders are becoming the bottleneck 

Many managers were promoted for operational performance. When complexity rises, they can default to control, certainty and micromanagement. This stifles the teams who want to work with more autonomy and creative stretch. 


HR is buried in operations 

Small HR teams spend most of their time firefighting. Leadership still expects strategic value, but HR has no protected space to deliver it. 


Talent attraction is too generic 

Polished job adverts do not reflect the real work. High-quality candidates quickly lose trust when the role does not match the pitch, which drives early churn. 


Professional body, CIPD, found 41% of employers reported that new recruits resigned within the first 12 weeks of joining — suggesting early churn is a real and frequent challenge for organisations. 


Traditional talent reviews no longer work 

The traditional performance vs potential nine-box system does not measure what modern organisations need: complexity handling, stretch willingness and the ability to think across longer horizons. 


How organisations can fix these challenges 


Introduce a complexity ladder 

Shift from a title-based ladder to a complexity-based one. Define growth by the type of problem someone can solve:

  • Diagnostic problems
  • System problems
  • Strategic problems


This becomes a transparent roadmap that helps people understand how they can grow and thrive. 


Identify high potentials through observable behaviours 

Look for indicators such as ambiguity tolerance, pattern recognition, curiosity and value creation. Give these individuals exposure to senior mentors, strategic problems and short “tours of duty” that build capability rapidly. 


Reduce operational load before raising complexity 

Remove or cascade operational tasks before increasing cognitive stretch. This prevents burnout and ensures people operate with clarity and confidence. 


Rebuild leadership capability around uncertainty 

Train leaders to work with ambiguity, coach rather than direct and create thinking space for their teams. When leaders grow, the bottleneck disappears. 


Adopt transparent talent attraction 

Share the real challenges, expected evolution, working environment and the type of thinker who thrives. Authenticity and clear aspirations attract the right people and intentionally repel the wrong ones. 


Replace nine-box reviews with dynamic potential assessments 
Measure complexity handling, stretch willingness, time-horizon thinking and cognitive load tolerance. Use this to design personalised development plans that actually work. 


Create strategic space for HR 

Introduce protected strategic sprints and a minimum-viable approach to talent strategy. Even small changes build long-term capability. 


Ready to rethink talent development for a more complex world? 

Outdated talent models are costing organisations their best people and future capability. Hydrogen Group helps organisations move beyond generic development and attraction, designing workforce solutions that uncover hidden potential, stretch capability and reduce early churn. 

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