Tracking and Evaluating Talent Management

  

What Are KPIs in Talent Management?

Talent management is the process by which a firm assembles the best personnel for its business model and then continues to develop and satisfy the specific motivations and requirements of employees to keep them on board (Goldsmith & Carter, 2009).

According to Adamsen and Swailes (2019) management of talent, KPIs fuels those efforts by assessing the efficacy of HR teams' activities and procedures for attracting, developing, retaining, and deploying personnel with the skills and aptitude to fulfill the company's current and future needs. Even as a manager for a leading fast food outlet global chain, we also got many benefits through adopting KPI s related to talent management.

How to Put Talent Management Metrics into Practice

While the precise data will differ by industry, many of the formulae and criteria used to assess talent management are common. As a result, powerful HCM software can automate the tracking and analysis of KPIs (Soubjaki, 2016).

However, many organizations have difficulty interpreting and acting on the data they have meticulously gathered (Skibniewski & Ghosh, 2009). They also struggle to act on their ideas to address problems and seize new possibilities. Begin the journey with people analytics by defining a few key KPIs in areas where the company needs to improve. After that, match KPIs to problem areas and begin gathering data (Sumarto & Rumaningsih, 2021).

Talent Management KPIs and Metrics to Measure

1. Turnover: Keeping track of quitting employees is critical since turnover rates reveal flaws in several aspects of the personnel management process (Bauer, 2004).

2. Retention: Retention is more than the inverse of turnover in that it focuses solely on the employees the organization wishes to maintain by removing anyone who was fired for any reason (Skibniewski & Ghosh, 2009).

3. Employee satisfaction: This indicator has a direct impact on retention and is frequently assessed through surveys and one-on-one meetings with managers. There are ways to quantify employee satisfaction. However, it's more difficult than turnover or retention (Soubjaki, 2016).

4. Performance: Performance can be measured in a variety of ways. Among the most well-known are:

§  New-hire failure rate:  The percentage of new employees who leave the organization within a given time, usually a year, is known as the new-hire failure rate. It says a lot about whether the recruitment team is doing a good job of discovering suitable persons for open positions (Soubjaki, 2016).

§  Quality of hire: Organizations use a combination of performance appraisal scores and retention rates to determine the quality of hires (Skibniewski & Ghosh, 2009).

§  Work quality: How well do employees meet the goals set by their bosses? Use statistics on product faults or accounting problems in areas like manufacturing or finance (Bauer, 2004).

5. Mobility: According to Cronin (2017) when companies look within to uncover talent, they not only save money on recruiting, but they also raise employee morale by showing them that there are opportunities for advancement. Role changes within firms via promotion, transfer, or lateral move have gradually increased over the previous five years, according to LinkedIn, because it's simply more cost-effective (Soubjaki, 2016).

6. Cost per hire: The cost-per-hire metric assesses the efficiency of your hiring process. The goal is to hire the greatest talent in the quickest amount of time at the lowest cost (Bauer, 2004).

7. Yield ratio: Yield ratios are used to determine how efficient a company's hiring process is. While there are various sorts of yield ratios, the idea is to find the one that best fit needs  (Skibniewski & Ghosh, 2009). The purpose is to keep track of the number of candidates required to make a qualified hire (Soubjaki, 2016).

As per Skibniewski and Ghosh (2009), The stages are as follows:

§  The applicant-to-interview-offer yield ratio is a measure of how many people apply for a job.

§  The percentage of interviews that result in a job offer is known as the interview-to-job-offer yield the percentage of interviews that result in a job offer is known as the interview-to-job-offer yield ratio.

§  The yield ratio of jib offers to hires.

8. Absenteeism: Companies that track how many unscheduled absences an employee has over a period can identify flight risks and intervene to keep the employee and reduce turnover rates (Cronin, 2007).

9. Vacation earned and used: Paid-time-off hours taken as a proportion of total paid-time-off hours available and paid for demonstrates whether employees are taking advantage of the time off they've earned (Bauer, 2004).

10. Exit interviews: Exit interviews are conducted by almost all firms; the difference is in how well they assess and act on what they discover. HR departments should take the lead in developing a successful exit interview strategy (Soubjaki, 2016). Top priorities: Assess where employees are going to see if a rival is poaching talent; identify ineffective managers and intervene; and determine whether a lack of training or advancement possibilities is driving away talent  (Cronin, 2007).

The organization in which I work, to track and evaluate employee use key performance indicators regarding Turnover, Retention, Employee satisfaction, and evaluate performances. To monitor these KPIs the organization maintains a system with a separate team. They believe that adopting KPI, will be added advantage to evaluate talented employees.

 

References

 

Adamsen, B. & Swailes, S., 2019. Managing Talent: Understanding Critical Perspectives. Cham: Springer Nature.

Bauer, K., 2004. The Power Of Metrics- KPIs: Not all metrics are created equal. DM Review, 14(12), pp. 1-3.

Cronin, G., 2007. Measuring strategic. Choosing and using KPIs.. Accountancy ireland, 39(4), pp. 30-31.

Goldsmith, M. & Carter, L., 2009. Best Practices in Talent Management: How the World's Leading Corporations Manage, Develop, and Retain Top Talent. 1st ed. London: Pfeiffer.

Skibniewski, M. J. & Ghosh, S., 2009. Determination of Key Performance Indicators with Enterprise Resource Planing Systems in Engineering Construction Firms. Journal of Construction Engineering and Management, 135(10), pp. 965-978.

Soubjaki, M. J., 2016. The Impact of Key Performance Indicators (KPIs) on Talent Development. International Journal of Recent Research in Commerce Economics and Management, 3(4), pp. 50-57.

Sumarto, L. & Rumaningsih, M., 2021. THE IMPACT OF EMPLOYEE ENGAGEMENT ON TALENT MANAGEMENT ANDKNOWLEDGE MANAGEMENT ON EMPLOYEE PERFORMANCE IN THE SOCIAL. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(1), pp. 2622-4771.