This is the time of year when a lot of companies suddenly start paying attention to talent management—or, rather, their lack of it. That’s because July is typically the time for mid-year performance reviews. When organizations have under-prioritized things like learning and performance management between January and June, they begin to realize in July how better, more integrated talent management systems could have saved them significant time, effort, and expense.
Just how significant? Let’s look at some numbers:
- Bersin & Associates’ 2009 Talent Management Factbook stated that organizations with superior talent management systems actually earn 26% higher revenue per employee and realize a 40% lower turnover among high performers. Plus, those companies that implement effective talent management strategies are better positioned to hire and develop great leaders. They’re also more adaptable to changing economic conditions, and better able to plan for future workforce needs.
Ernst & Young report found that companies with integrated talent management programs delivered 38% greater return on equity than companies with non- or partially integrated programs, while companies that aligned talent management to business strategy experienced, on average, a 20% higher return on equity.
So what does this mean?
- Talent management solutions give you the ability to track employee performance on a project basis throughout the year, so there’s none of that mid-year or end-of-year scramble to get a grip on the workforce.
- Integrated talent management extends the advantages even further because it effectively links your performance monitoring with your learning and development systems. In other words, integrated solutions help you evaluate performance data to identify skill gaps and then seamlessly apply the necessary learning to fill those gaps—so you have a more holistic view of your workforce’s strengths and weaknesses. And, considering your employees are your company’s greatest asset, this is a perspective worth gaining.
- When you implement integrated talent management systems, you will see tangible business results in the form of higher employee productivity, increased employee potential, and decreased turnover, all of which offer substantial return on investment and ultimately lead to greater revenue.
In a recent press release, SumTotal reiterated its commitment to assisting customers in tackling talent management challenges through innovative, unified solutions. We want to ensure that organizations don’t waste their talent. It’s too valuable, and the numbers continue to prove that fact. Don’t wait till the next performance review cycle to learn that lesson.
