Magazine article Talent Development
Talent Management: Gaining Inches? New Research from I4cp Shows That While Few Companies Measure Their Talent Management Efforts, Those That Do Consistently Outperform Their Competitors
Like any weight-management program that depends on regular measurement of inches lost or gained, the success of talent management efforts depends on metrics. However, only 25 percent of companies have systematic talent management practices in place, according to a recent survey by i4cp.
The "Talent Management Measurement Survey" asked respondents what talent applications their organizations used, how they reported talent management metrics, and in what ways these measures supported the organization's overall strategy. High-performing organizations--those companies that have outperformed their competitors in profitability, revenue growth, market share, and customer satisfaction during the last five years--were more than twice as likely to emphasize talent management measurement as low performers (37 percent versus 16 percent).
Mary Ann Downey, human capital management practice leader at i4cp, notes that only one criterion was a predictor of both talent management success and market success--measuring leadership success. "The next question we're going to have to ask is how do we measure leadership success? How do we get it to be more objective rather than subjective?" Downey asks.
Reporting talent management metrics is also vital. Only 26 percent of human resources staff regularly receives workforce metrics reports. Metrics reports cross the desks of a mere 23 percent of line managers and 17 percent of finance employees. "The study found that just getting the metrics out there is the start of having a solid talent management program," Downey says. "It doesn't matter who calculates them. You just need to start measuring and getting the data out."
The study showed a disparity between companies' current use of metrics to manage talent and the extent to which participants reported that they should use metrics. …