Taking Care of Your Human
Capital
Knowledge and service-intensive industries, such as electronics,
technology, and professional service firms, are more likely to apply
talent management practices, while the public sector significantly lags in
their use. Here are the findings from a joint research by IBM and the
Human Capital Institute (HCI). The research demonstrates ROI of talent
management.
The study
shows that while 84% of organizations know that workforce effectiveness is
important to achieving business results, only 42% of those surveyed say
managers devote sufficient time to people management.
The
study, Integrated Talent Management, was based on research with 1,900
individuals from more than 1,000 public and private sector organizations
around the world. It was undertaken by IBM and HCI to identify the return
on investment (ROI) of integrated talent management.
Among the
findings:
Organizations that apply talent management practices demonstrate higher
financial performance compared to their industry peers. Those specific
talent management practices that most distinguished financial
outperformers from other organizations are understanding and acting upon
employee engagement and aligning recognition and performance management
systems.
While
organizations recognize the value of talent management practices, they
find it difficult to apply workforce analytics (only 40% accurately
forecast skill needs), promote collaboration (49% provide the right
tools), deploy people effectively (64% say they do,) and develop those
employees in a timely and effective manner (only 38% have the right
focus).
The study
also found that organizations between 1,000 and 10,000 employees are less
likely to apply leading talent management practices compared to other
organizations. These "corporate adolescents" appear to be too large to be
able to manage informally and too small to have the necessary managerial
focus or human capital infrastructure.
The study
respondents varied by position and included people involved with HR and
non-HR functions. The surveyed companies represent a variety of
industries, geographies, and sizes.
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