In a recent survey, 97 percent of top 1000 CEOs claimed that access to and retention of key talent are their top priorities. This is the case for two reasons. One, turnover is expensive—the financial impact is approximately 30 to 250 percent of annual salaries, according to New York Times. Two, top performers spur business performance. In fact, according to a McKinsey study, high performers in operational roles can increase productivity up to 40 percent, those in management roles can increase profit by 49 percent, and those in sales roles can increase revenue by 67 percent. This is more than enough reason to establish a strategy for talent management.
In order to develop a strategy for talent management, you must first be aware of how to measure it. Here are 5 talent metrics that you can measure in order to get a grasp on your talent management strategy.
- High potential talent – Not only should you work on identifying this high potential talent, you should also identify what it is that helps develop that high potential talent.
- High performer turnover rate – As good as that high potential talent can be, there is the possibility of them not staying with the company. Turnover is not only costly; it also jeopardizes potential success in the organization. If this is a common occurrence, it may be time to rethink your engagement and retention strategies.
- Employee engagement and retention – The 2014 Global Assessment Trends Report from the Corporate Executive Board (CEB) states that 56 percent of human resource professionals listed engagement and retention as a top priority. Yet only 19 percent had a formal engagement and retention process in place.
- External vs. internal hiring – Gauge the success of external hires versus internal hires so you know where you should be looking for your talent.
- Candidate reactions – The CEB report found that 80 percent of organizations see the value of a positive candidate reaction in the hiring process, but less than half actually measure those reactions.
The connection between measuring talent metrics and using those measurements to influence hiring decisions is a highly useful, yet highly underutilized process. The CEB report states that only half of respondents use talent metrics for business decisions, and only 45 percent use talent measurements to guide development and succession plans.
Talexes utilizes the talent metric system to help you make the best possible hiring, development, and succession decisions. Check out our suite of employment assessments to perfect your talent management strategy today!