Companies measuring talent acquisition & management are 58% more likely to outperform their rivals
Less than one third of companies worldwide harness their recruitment and employee data to help drive business decisions. This is despite strong evidence that those that do outperform their competitors 58% of the time, achieving up to 200% better returns.
The findings are based on new research from Alexander Mann Solutions, the world’s leading provider of talent acquisition & management services, and the HRO Today Institute, a global community of HR operations executives.
The survey, entitled Counting Success: How metrics & measurement correlate with business success, aims to establish what and how much information concerning companies’ recruitment and employee performance processes is collected across the globe, and to what extent it can be assessed to enhance their wider business objectives.
“Just as major sports teams harness physiological data to optimize their athletes’ training and performance on the field, businesses should analyse constructively, efficiently and meaningfully the masses of recruitment and employee data that they accumulate to drive real business value and outperform their peers,” said Jerry Collier, global director at Alexander Mann Solutions.
The survey’s results show that, while more than 90% of companies worldwide collect some kind of employee performance data, only 51% leverage one or more performance metrics to improve ongoing talent acquisition efforts. Almost one third (32%) do not examine their company’s employee data in any way.
“Our research demonstrates that even companies that may have a culture of disciplined data analysis do not necessarily have the Boardroom backing to integrate that practice into their talent acquisition and management processes. However, those that do are reaping the benefits and winning market share in their industry sectors.” added Collier.
The most commonly collected data looks at employee performance appraisal ratings (73% of respondents), new hire retention (55%), and customer satisfaction (50%). Key data that companies least regularly collect includes speed at which new hires are promoted (13%), the time taken to bring a hire to full performance (12%) and profit generated per employee (24%).
Collier noted, “For one of our retail clients we saw a £2 improvement in average spend per transaction using predictive analytics. With 40-50,000 transactions a month per store, the link to the bottom line can be significant,” For companies that fail to measure their data effectively, there are several cited impediments. They include the lack of a technology system capable of collating, analysing and ensuring the consistency of data across geographies and business divisions limited resources in the HR function and a lack of accountability and discipline in the execution of the process.
Over 380 HR managers and directors at more than 300 companies worldwide contributed to the report between May and September 2013.