Article: Measure What Is Critical to Create a Talent Culture

Measure What Is Critical to Create a Talent Culture by Caroline Paxman   Are organizations using structured processes to create a culture of talent and utilizing appropriate measures of success for such initiatives? Results from the 2010 Global Assessment Trends (GAT) Survey from ADP and PreVisor demonstrate that companies around the world have implemented or intend to implement HR programs to select, grow and retain talent, but few are structuring and measuring these programs to ensure they meet overall strategic goals. Some key findings from the survey of more than 200 organizations include:   a) Quality of hire is the key business outcome that 72 percent of companies are trying to improve with pre-employment assessments, among others, including productivity and retention. However, more than half (56 percent) of companies report they collect metrics to show the value of tests to their overall hiring process. Less than half (42 percent) of companies are required to demonstrate a link between assessments and business outcomes by internal stakeholders.   b) Nearly all organizations agreed that applicant reactions are important (83.9 percent), but less than 41 percent of companies get feedback from applicants, a group that is made up of potential high-performing employees and current or future customers.   c) While the overwhelming majority of organizations use assessments for pre-employment testing, less than 50 percent of companies use them to measure their current workforce talent. Of those that do, most organizations use or plan to use them for career development, promotion and training needs analysis initiatives.   d) Only 28 percent of companies have a structured process for promoting leaders. A structured process can help drive a culture of talent, demonstrat-ing to the entire organization that leaders are being selected carefully and thoughtfully. Sound talent decisions require past performance data plus measures of critical leadership competencies.   e) More than half of companies (62 percent) use career development as a retention strategy, but only 29 percent of companies have a formal career development process in place.   While having structured processes in place for key initiatives makes sense from a business outcomes perspective, it also demonstrates an organizational commitment to consistency and objectivity in talent decisions. This type of commitment can have a positive impact on the overall attitudes of employees and potential recruits toward the employer brand.   However, it's clear the economy is having an impact on such initiatives. "What's clear from our results, too, is a definite 'wait and see' approach to implementing new programs within organizations, " said Dr. Sarah Fallaw, co-author of the GAT. "The key is not to wait too long to structure programs that can make a difference in retaining top talent as the economy improves. This shift in focus illustrates the reduction in need to hire externally, but it should be used as an opportunity to re-evaluate and enhance current practices to ensure organizations are ready for the next edition of the war for talent. Put the emphasis on internal programs and career paths, and include these newly enhanced programs as part of your overall recruiting efforts."     [About the Author: Caroline Paxman is chief product officer for PreVisor.] - Copied.