Not only are we supposed to hire people who are not like us, and may even annoy us, but the way most organizations do talent reviews is working against them. So says former Google CIO Douglas Merrill.

In this piece I detail the case Merrill makes for diversity in the hiring process. But he also says a lack of diversity in the hiring process also shows up in - and bastardizes - the way we evaluate and develop our human capital.

"Every HR department in the world has a talent review process," says Merrill in this video. "You’re an executive, you are given a list of your employees, and you are told to say two things; what performance has this employee had, how well has he or she done, and how much potential does this employee have, i.e., how many levels up coud he or she go? Performance. Potential. The two elements of take review. It obviously makes sense. The problem in that is 100 years of social psychology has shown that you believe people are ‘better’ to the extent they’re like you."

This creates a scenario, according to Merrill, whereby one person can get promoted past another one, even when the two of them have identical skills and abilities, simply because one might be more like their manager, and better liked by their manager as a result.

"So talent reviews don’t work. Because fundamentally you’re going to say that the person who looks and acts like you is better than the one who doesn’t."

"So talent reviews don’t work. Because fundamentally you’re going to say that the person who looks and acts like you is better than the one who doesn’t."

What does that mean ultimately? That your organization will become more and more singular - and lower performing - over time.

"The HR revolution of talent reviews is actually working against your organization. You are making it less and less likely you are going to win because you are becoming less and less diverse."

So what should you do instead to develop - and retain - talent? Apparently the answer is not always simply pay your employees more.

A new study called Talent 2020 from Deloitte Consulting, based on an in-depth poll of 560 recent job changers, finds the biggest reason people move on is the opportunity to use more of their skills and abilities elsewhere. That's cited by 42% of the respondents. More than a quarter (27%) also cited a lack of career progress in their old jobs, and 21% mentioned "lack of challenge."

The biggest reason people move on is the opportunity to use more of their skills and abilities elsewhere.

"Employees with critical skills pose the biggest flight risk," says Bill Pelster, a principal in Deloitte's U.S. talent services division. Retaining these folks "is not simply a human resources function," he adds. "It has to start with the C-suite and extend through every level of management, down to line managers and supervisors."

First of all, do you agree with the assertion that the traditional talent review process is flawed, or simply doesn't work? And if so, what do you use instead? And also, how deliberate are you being about continually challenging your best and brightest?

Tags: Advice, Hiring manager, Hiring managers, Employee Retention, Diversity, Employee recognition, Hiring Practices, Performance reviews, Promotions, Talent development, Talent reviews