Measuring Business Impact
Talent management metrics link human
capital investment to financial performance. According to management gurus
Huselid, Becker and Beatty, there are three critical challenges to successful
workforce measurement and management. First, there is “the perspective
challenge”—meaning, do all managers really understand how workforce behaviors
and capabilities drive strategy execution? Second, there is “the metrics
challenge”—that is, are the right measures of workforce success identified
(e.g., workforce culture, mindset, leadership, competencies and behaviors)? The
third challenge is “the execution challenge”—specifically, in order to monitor
progress and communicate the strategic intent of talent management initiatives,
are managers motivated to use these data and do they have access and capability
to do so? Talent management metrics are evolving. As organizations increasingly
focus on talent management strategies, they seek ways to validate these
initiatives and measure their business impact. Many firms are beginning to
include talent management in their scorecards. For example, HSBC, a banking and
financial services institution, uses the Balanced Scorecard™, with talent
management listed under learning and growth. Scorecards provide a clear “line
of sight” to organizational strategic goals by linking talent management to
objectives and performance appraisals.
Measures may include factors such as
employee survey results, turnover (e.g., talent pools) and the number of
employees on secondments (temporary assignments).
Companies also create their own
measurements to fit their organizational cultures. Pfizer, for example,
developed three primary talent management objectives—strength of leadership
team and pipeline, robustness of talent management processes, and development
of talent mindset and values—with corresponding drivers and metrics. One metric
used to evaluate the robustness of talent management processes is the
percentage of key position holders with individual development plans. Avon, a
global cosmetics company, is an example of a
company that transformed its talent
management system by shifting how it looks at talent and consequently how it
utilizes technology.
mode (e.g., a manager recommends an
employee for a position) to a more objective and formal approach to talent
management. This shift resulted in talent being assessed objectively through a
leadership model to better determine suitability for various roles. To be able
to identify where talent in the organization is located, a database now houses
employee profiles, which can be routinely updated. As a result, the
organization can make more data-driven decisions regarding talent.
Increasingly, talent management technology to house and track talent management
strategies is becoming available. Databases with all relevant data in one
location can result in significant time savings for staffing, such as the
ability to quickly identify talent for open positions. Organizations are
recommended, however, to carefully evaluate which talent management technology
program best fits their current and future needs. Some vendors include talent
management solutions in their HR suites. Strategic talent management software
may help manage workforce skills and capabilities (hourly, salaried and
contingent), demographics, career planning, employee retention initiatives,
workforce and succession planning, and performance and learning management.
Although few vendors offer all of these options in one package, it is important
to know if the software can be integrated with other systems. Opinions vary,
however, on the value of technology systems regarding talent management.
Aktive
1.
Talent management metrics link human
capital investment
2.
managers really understand how workforce
behaviors
3.
organizations increasingly focus on
talent management strategies
4.
Many firms are beginning to include
talent management in their scorecards
5.
talent management listed under learning
and growth
6.
looks at talent and consequently how it
utilizes technology
7.
manager recommends an employee for a
position
8.
determine suitability for various roles
9.
Databases with all relevant data in one
location can result in significant time savings for staffing
10.
software can be integrated with other
systems
Passive
1.
human capital investment connected by
talent management metrics
2.
workforce behaviors really understood by
managers
3.
management strategies focused by
organizations
4.
talent management in their scorecards
input by firms
5.
learning and grouth lised by talent
management
6.
how it utilizes technology seen by
talent and consequently
7.
employee for a position recommended by
manager
8.
for various roles suitability by manager
determined
9.
significant time savings for staffing
can result by Databases with all relevant data in one location
10.
other systems integreted by software
