Measuring Talent-Related Metrics

An HR metrics study by the Institute for Corporate Productivity (i4cp) reveals that higher-performing companies are more apt to measure talent-related metrics than lower performers. Common talent-related metrics include movement within the organization, quality of hires, quality of promotions and the cost of training/development.
Engagement of the workforce is one key component with 93% of higher performers measuring employee engagement, as compared to 79% of lower performers. And in this economy, engaging the workforce is paramount. And while 93% of higher performers utilize employee engagement surveys, as compared to 78% of lower performers, 90% of high performers report the use of satisfaction surveys for such measures, as compared to 68% of lower performers.

The study, commissioned by i4cp, also finds several other significant traits for high-performing organizations: 71% of higher performer’s measure compliance or completion of diversity plans versus 52% in lower-performing companies, and 61% of higher performers, as compared to 39% of lower performers, consider employee referral rates. Conversely, the study shows that 78% of lower-performing organizations measure total labor cost to cost revenue percentage versus 55% of high-performing organizations. Furthermore, 44% of lower performers measure the employee-to-productivity-output ratio over 25% of higher-performing companies. “What was most striking or interesting is that lower performers were more likely to measure ‘cost’ metrics than high-performing organizations,” says Mary Ann Downey, i4cp’s Talent Pillar director. “While at first glance this may seem counterintuitive, it most likely reflects the attitude that low-performing organizations see their employees as a mere expense and not a source of competitive advantage.” When tracking attrition, HR is more likely to want to know how many workers leave than who is heading out the door.
Overall, 81% of polled companies use turnover and voluntary termination rates in their measurement of attrition, and 74% measure length of service. On the flip side, just 40% measure termination by variables such as job grade, costs or demographics, and just 38% measure the termination rates of both high-potential employees and termination rates by “pivotal job.” Study findings also show, however, that higher-performing companies are more likely to analyze who is leaving. In companies with more than 10,000 employees, 72% measure grade, costs and demographics, while 59% track the loss of high-potentials and 55% track by pivotal job.
When it comes to employees moving within the organization, most companies are not adept at tracking those movements. Overall, 34% measure worker movement from job level, classification or rank, while 29% measure by types of move and 23% track movement by demographic variables.
Article courtesy of Kennedy Information Recruiting Trends providing leading edge insights and strategies for the recruiting professional

Originally posted by Candice A