Talent Management - July 2008 - (Page 44)

ADVERTISEMENT FIGURE D: Talent Management Metrics Used Most Often by Organizations Talent retention rate Time to hire talent Cost to hire talent Diversity stats Number of senior-level positions with identified successors Percent of assessments completed Rate of promotion from the talent pool Average development spend on high potentials Other N=763, multiple answers were permitted management processes. Process automation can be a timeconsuming effort. As a result, many organizations often put it lower on the priority list. As seen in Figure D, organizations are using a variety of talent management metrics. The most common metric, talent retention rate, is used by 58 percent of organizations. Time to hire talent and cost to hire talent are also very prevalent; 48 and 41 percent of organizations use them respectively. The least common metric from the provided list was average development spend on high potentials (16 percent). In taking a deeper look at higher-level metrics, only 24 percent of organizations are measuring the impact of talent management programs on business results. Although improving, measurement remains the weakest talent management function within organizations today. Organizations also were asked about their biggest talent management challenge. Developing talent was the biggest challenge, cited by 62 percent of organizations. More and more organizations today understand that employees’ top job satisﬁer often is career development, along with compensation. Employees want to be challenged and developed. If they are not, they often become less productive or contemplate leaving the organization. This mindset is especially true for highly talented professionals. To proactively address this issue, organizations are placing talent development as a very high priority. In looking at collaboration, Figure E shows almost onequarter of organizations’ talent management functions do not communicate with each other (e.g., many functional silos exist) and only 7 percent of organizations report all talent management functions collaborate on a regular basis within their organizations. This ﬁnding is troubling, as effective communication and collaboration across talent management functions are important in the effort to ﬁnd, train, deploy and 9% % of respondents 16% 27% 25% 41% 38% 37% 48% 58% FIGURE E: Level of Employee Collaboration Across Organizations’ Talent Management Functions % All talent management functions collaborate on a regular basis – no functional silos exist. A few talent management functions collaborate on a regular basis, but many functional silos exist. Most talent management functions collaborate on a regular basis, but a few functional silos exist. Talent management functions do not collaborate (e.g., many functional silos exist). N=573 retain top talent; understand organizational needs; save costs; and share best practices. Slightly more than one-third of organizations have a formal talent management strategy. This ﬁnding likely is caused by the lack of buy-in and collaboration across talent management, as well as the lack of a single executive responsible for decision making across all functions. For those organizations that reported having a talent management strategy, 56 percent have had a plan in place for two years or less. Only 25 percent of organizations reported having a strategy for ﬁve or more years. When asked how far into the future organizations plan for talent management needs, almost one-third of organizations plan only one year in advance and 46 percent plan at least two years into the future. According to respondents, executive-level buy-in is extremely important to any talent management program. 7% 47% 23% 23%

Table of Contents Feed for the Digital Edition of Talent Management - July 2008

Talent Management - July 2008 Editor’s Letter Human Performance Leading Edge Learning Connections Guest Editorial Passive Candidate Recruiting: Evolving with a Changing Workforce How Do They Feel? Sec Regulations and Executive Compensation Performance Management: A Retail Perspective Train the Non-Trainer Management-Go-Round: Developing Future Leaders Netflix Creates Its Own Script for Talent Management Intuit Spotlights Strategic Importance of Global Employee Recognition Make HR a Profit Center: Automate Technology to Gather Tax Credit Data Offshoring and the Impact on Talent Management Advertisers’ Index Editorial Resources Full Potential

Talent Management - July 2008

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