Talent Evidence-Based Measurement

Until we can provide evidence of the impacts of Talent Management practices and of Workforce Performance in terms of business outcomes, companies will not fully understand or recognize the value of their human capital.

This is not a new topic for Leaders. HR has used metrics for a long time. However, their typical metrics at best can be used to manage the HR function and fulfill compliance requirements.  And they rarely operate 'at best'. More commonly their metrics are used in a vacuum with no view toward the impact on the business. 

An example is time to fill.  Is is really important to reduce time to fill if we consequently reduce quality of hire? Most organizations don't even connect the two measures.  We need to evaluate time to fill in the context of time to productivity, performance, 1st year turnover, LOS, and potential so that we do not chase a target that may be detrimental to the organization.  The goal is the balance of time and quality - same for cost per hire.

Another favorite HR metric is turnover. This metric tells executives very little and therefore fails one basic test of good measurement.  What will you do differently or what decision is informed now that you know this number?  If we're honest we know the answer is nothing.  However if you monitor the turnover of high potentials and the best performers executives will be interested. Staffing should measure the turnover of new hires.  Learning Officers should look at the experience / knowledge lost.  OD practitioners should focus on the turnover of Leaders. You should also monitor poor performer turnover.  By monitoring these metrics you will identify trends and outcomes that lead to action. You are also likely to find leading indicators of business outcomes.

Talent Measurement systems, including the content rich technology needed to measure and report efficiently, can help us provide evidence of the value of human capital.

Joanne Bintliff-Ritchie, Chief Strategist, DoubleStar Inc

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