Talent Management - December 2008 - (Page 20)

recruitment & retention assessment & evaluation compensation & beneﬁts performance management learning & development succession planning [assessment & evaluation] by Dr. Ken Lahti The Science Behind T alent Measurement Effective talent measurement uses science to improve decisions by providing objective data on people’s competencies and skills throughout the employee life cycle. Talent managers have to know what data is critical to gather and use the most efﬁcient methods to do so. E ven if leaders have great processes, the quality and success of talent decisions is impacted by the quality of information used to make those decisions. Garbage in; garbage out. If managers rely on good data to decide who to hire, promote or where to invest in development, they are more likely to make decisions that lead to better performance, longer retention and ROI for the organization. Talent measurement uses science to gauge employee and candidate competencies by providing genuine insight into employees’ capabilities and producing objective, consistent and meaningful data for decision makers. PreVisor Inc.’s “2008 Business Outcomes Study” shows effective talent measurement programs can drive key business outcomes across jobs and industries, such as: • A 31 percent reduction in 90-day churn among inbound call-center agents. • A 43 percent higher likelihood of recently hired insurance agents passing the Series 6 certiﬁcation exam. • A 107 percent improvement in sales call-conversion rate. The Performance and Potential Puzzle axis they plot performance — on the other, potential. Comments made during the process include: • “Performance. That’s easy. We measure everyone’s performance here, so we can use that data.” • “Oh, wait a minute. We only have objective metrics for our people in sales.” • “And our call-center folks. Nothing for our professional roles, leaders, support staff…” • “Hmm. I guess we’ll have to use performance review scores for these other roles. It’s probably the best metric we have.” • “It’s the only metric we have for most of these folks.” • “Uh oh, it looks like everyone scored 4 out of 5 on their performance review…” • “Let’s come back to that later. What about potential?” • “Hmm. We deﬁnitely don’t capture any metrics on that.” • “I’ve got it… let’s vote!” Does this process seem effective and fair? What would employees think if they knew critical decisions about their careers were made so loosely? These leaders are no doubt well-intentioned. They want to align people with roles that are challenging and rewarding and in which they can be successful. But they simply don’t have the information they need to make good decisions. Talent Measurement Effective talent measurement encompasses a number of tools and processes, including: • Tests: Valid tests can be used to assess knowledge, skills, abilities, personality traits, vocational interests, experience and judgment. Objective tests are Imagine six department heads are in a conference room. It’s getting late. There is a large white board covered with numbers, names and notations as they plot the progress and fates of numerous employees. The leaders’ shared goal is to identify the best path for their employees: Who should move roles, who should stay, and who would beneﬁt the most from developmental activities? They make these decisions based on their overall impressions and available information about employees’ past and future success in the organization. On one December 2008 20 talent management magazine www.talentmgt.com http://www.talentmgt.com

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

Talent Management - December 2008 Editor's Letter Contents Human Performance Leading Edge Foundations Recruitment & Retention Assessment & Evaluation Compensation & Benefits Performance Management Learning & Development Succession Planning Insight Dashboard Application Advertiser's Index Editorial Resources Full Potential

Talent Management - December 2008

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