Sunday, August 10, 2008

Power of Metrics in Preparing a Compelling Business Case for Talent Management

As Meg Bear indicated in her blog, a compelling business case is critical to get the buy-in for launching Talent Management 2.0 initiatives. While the faltering economy created awareness of efficient Talent Management strategies to attract, engage, develop and motivate talent, the challenge often is how to quantify the business value from TM investments for a winning business case? One approach is to begin with end in mind – once you deploy the solution what specific tools it will enable to achieve business goals?
Figure: Most Commonly Used Talent Management Metrics Courtesy: TM talent management magazine July'08
To start with, above are some high-level categories of commonly used Talent Management metrics. Decompose these categories into actionable metrics that will enable HR organization to contribute to business goals. You can apply the insight from Cathy - for example, in Cost to hire category think about measures that will help you to measure the effectiveness of new hires. What percentage of new hires got “above/exceeded expectation” rating in first six months review? What percentage is below average? How these barometers enable you to decide sourcing plan of action? What would be the estimated financial impact of these proactive strategies?
By clearly articulating the actionable insight that the Talent Management solution enables and how business strategy is hinge upon this insight, you are on your way to get the executive buy-in for the winning business case.

1 comment:

Anonymous said...

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