HR professionals around the world feel an increasing pressure to be able to quantify the business benefits of their programs aimed at developing talent. This was confirmed by the recent survey of Right Management, a member of ManpowerGroup. More than two thousand senior executives responsible for talent management in 14 countries around the world participated in the survey. The increased pressure to calculate the ROI of talent development was confirmed by 82% of the respondents (mostly from India and Singapore - 93%, the lowest percentage was marked in Germany - 61%).
According to Mark Hodgson of Right Management, quoted by the Training Journal website, the days of collecting feedback through questionnaires measuring the participants' satisfaction with development programs have really gone forever. Top management of companies wants hard numbers. How should the numbers be obtained?
1. Clearly defined metrics
Before starting any program, it is necessary to set clear metrics of success. Since you need financial metrics, find a consultant in the field of finance who can help you make your metrics realistic.
2. Linking strategic functions
Strategic functions within the company must be linked to its business strategy. Only then you can compare the money invested with the value brought to your business.
3. Regular reviews
You have to follow the trends in the movement of employees within the company. The amount of time and money needed for the program's review should be a part of the planning phase already.
4. Programs tailored for specific groups of employees
Your programs must be relevant for individual employee groups so that you can measure progress in different parts of the company.
What metrics do you use to measure the investments in talent management in your company?
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