Monday, March 28, 2011
As the economy slowly thaws, talent has become a top priority for most organizations. Companies are concerned with acquiring the right talent, retaining top talent and developing future talent. Leadership intuitively knows that the better the talent IN the organization, the better the results FOR the organization.
So, what does this all mean for HR professionals. No pressure HR, but CEO's are risk adverse these days and demanding of data for fact-based decisions. HR will have to step up its measurement game where talent is concerned. I believe workforce planning and analytics will become critical from a supply and demand of talent perspective.
I also believe that tracking and measuring current talent becomes critically important so companies sustain a competitive advantage over its competition.
I believe there are several critical measures when it comes to talent. If I had to choose my top 5, it would be these:
1) Quality of Hire
2) Employee Performance
3) Goal Attainment
4) Turnover by performance, by engagement
5) Employee Engagement scores by performance, manager, department
It is important to know if you are getting quality candidates in the door. There is not one measure for quality of hire, but you can use a combination of new hire performance rating, new hire failure rates and retention rates.
A strong performance management system that allows for an objective quantitative way to measure performance is also critical for organizations to know who is contributing and who isn't. The performance management system should also enable the organization to see who is reaching goals and who isn't.
Turnover is a critical measure but not in its usual form. I think turnover should be segmented just like marketing segments their markets and customers. Look at turnover in a more granular way. For example, analyze turnover and employee performance. Are your HIPO's leaving at a great rate than non-HIPO's? Look at turnover by employee engagement scores, are your highly engaged leaving at a higher rate than your non-engaged staff? Better yet, look at turnover with engagement and performance scores. Are your highly engaged and HIPO's leaving at a higher rate?
The answers and actions to the questions above could make you an HR Rock Star in your organization! Tell me what you measure in regards to your talent...