Talent Management Metrics Get an "F"
Erik Samdahl | i4cp
May 12, 2010
If employees are a company’s most important asset, few organizations are anywhere near realizing their full potential, according to the latest talent management study by the Institute for Corporate Productivity (i4cp). The study, which examined the extent to which organizations are measuring and gauging the success of their talent management programs, found that only a quarter of companies surveyed have systematic talent management practices in place.
However, it’s clear that high-performance organizations – companies that have outperformed their competitors in profitability, revenue growth, market share and customer satisfaction over the last five years – are much more focused on talent management metrics. Top organizations were more than twice as likely to emphasize the measurement of talent management (37%) than low-performing organizations (16%).
The study was recently conducted on behalf of i4cp’s Talent Management Accelerator working group, made up of 15 world-class companies seeking to discover the best ways to measure talent management effectiveness. The group is using i4cp research, best and next practice collaboration, and expert guidance to learn how high-performance organizations utilize certain human capital metrics to achieve better business results.
“There’s an old saying from Peter Drucker that what gets measured gets managed,” said Kevin Oakes, CEO of i4cp. “While talent management is one of the hottest topics in human capital, at the same time, it is one of the most mysterious. Companies understand the general concept and the benefits, but are struggling with implementation and execution. Effectively measuring components of talent management is an important step toward taking the mystery out of what works and what doesn’t.”