Thursday September 2, 2010
How service organisations can better manage their biggest asset, by Jane Sunley.
In today’s knowledge economy, as much as 70 percent of an organisation's value is based on the skills, experience, and performance of the employees¹. However the majority of companies do not have a system in place which provides easily accessible visibility as to the metrics around their ‘human capital’².
If this ‘talent intelligence’ is not readily available, organisations will be unable to adequately manage business, team and individual performance. From a strategic standpoint, it’s a bit like planning investments without access to the balance sheet.
In today’s business where customers want things better, faster and more tailored, only those organisations that become experts at talent management will be able to create competitive advantage.
According to a recent study by Towers Watson, talent / performance systems were ranked as the top issue by the largest margin ever in their 13 years of survey history.
Last month Taleo published a paper on talent intelligence. Here are their key findings:
- 91 percent of respondents want information on the competency/skills gaps in the workforce but only 55 percent have access to reliable data in this area
- 90 percent say that it is important to have information on how individual’s goals are aligned to business but only 57 percent have access to reliable information
- 82 percent consider data on succession bench strength is important but only a minority (41 percent) have access to reliable data on it
- 56 percent of businesses have no access to reliable data on the top performing employees that are not on any succession plans
- 55 percent of companies know if they have the skills to execute their business strategy
- Almost half (49 percent) of all respondents do not have any insight into the number of new hires that leave the company voluntarily within the first year
- Just 33 percent of organisations have access to reliable data on the quality of hire
This means that the majority of businesses do not have a firm grip on talent management. They lack talent intelligence. Almost half don’t know whether the people they recruit are performing; more than half don’t know where their talent is - who should be fast-tracked, nurtured, developed, mentored, coached, or, otherwise, performance-managed.
In short, about half of companies are operating in the dark yet it doesn’t have to be that way. Talent management technology has come a long way in the nine years since we invented our solution. This has evolved over the years and is a simple way of achieving a very big advancement in the field of talent intelligence. For more information click here.
¹ Peter Cheese, The Talent Powered Organisation and other sources