A look at current trends and data

Citation

Nolan, S. (2008), "A look at current trends and data", Strategic HR Review, Vol. 7 No. 6. https://doi.org/10.1108/shr.2008.37207fab.006

A look at current trends and data

Article Type: Research and results From: Strategic HR Review, Volume 7, Issue 6

Story 1

Productive means performance for top firms

Employers rank productivity as the most important attribute of a high performer, with the length of time an employee has worked with the company having little or no effect on job performance. This is according to research conducted by recruitment process outsourcing firm, Alexander Mann Solutions, into the DNA of high-performing employees. The company carried out interviews with more than 30 International organizations to find out opinions on what makes high performers and how to identify, attract, recruit and retain them.

The research found that 69 percent of respondents ranked “length of service” as the least important aspect, or not even applicable, to defining a high performing employee. It found the majority of organizations feel an employee’s ability to do their job effectively and efficiently is the most significant indicator of high performance, with 44 percent ranking “productive” as the most important attribute of a high performer. The next highest-ranking attributes to define a high performer were “proactive,” “engaged” and “cultural fit.”

Other key findings

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  Graduates. Organizations are divided when it comes to identifying high potential graduates. “Educational qualifications and results” continue to be an important benchmark in predicting graduate performance, with 28 percent of respondents ranking them as the most important attributes. However, a graduate’s “personality and behavior” were also ranked as the most important attribute by 28 percent of respondents.

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  Management and executive roles. Respondents felt that when it comes to selecting a candidate for a management or executive position, their ability to lead others effectively and manage staff not only affects their performance, but also the ability of their staff to achieve high performance. “Leadership skills” were ranked as the most essential characteristic when it came to management positions by 44 percent. This rose to 60 percent for board level appointments, followed by “previous experience” in management or executive roles.

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  Identifying high performers. Of the organizations, 69 percent use psychometric assessment tools to identify potential high performers, with personality assessments being utilized the most. Of the respondents’ organizations, 94 percent measure performance, with the majority using tools such as performance reviews and appraisals, KPIs, 360-degree feedback, sales revenue and financial performance measured against the objectives of the team, department and overall organization.

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  Attracting high performers. Of the organizations, 38 percent rate their “organizational brand” as the most important component of their strategy. However, 22 percent of survey respondents felt that “flexible working conditions and/or child care facilities and options” do not rate as factors in their high performer attraction strategy.

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  Retaining high performers. In a skills-short market, respondents believe “competitive remuneration packages” are essential to retaining their top talent, with 50 percent ranking them as the most or second-most important factor in their retention strategy. “Organizational culture” came in as the next most important factor, with 43 percent ranking it first or second. Overall “quality of hire” (59 percent) was the most important factor of the entire recruitment and talent management process.

For more information

A copy of the “High Performer” research report can be found at www.alexandermannsolutions.com/high_performers/

Story 2

Talent management still critical in spite of economic uncertainty

A study by Deloitte, the business advisory firm, finds that corporate talent management strategies will need to shift considerably to address a more competitive market for global talent. The talent pool is expected to shrink by 13 percent over the next 40 years. Deloitte conducted interviews with 58 of the world’s leading organizations that collectively employ more than 2 million people and have combined revenues of £603 billion in order to ascertain how they are preparing for the talent crisis. Changing demographics – in the form of an ageing and shrinking workforce coupled with changing employee expectations – is compelling organizations in the developed world to engage in more sophisticated talent management strategies that move beyond simple recruitment and retention.

Key findings of the “Have you got talent?” report include:

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  Of organizations’ talent strategies, 76 percent focus on high potential individuals, predominantly those in senior leadership positions. A wider approach that identifies critical business segments and talent, rather than a narrow focus on the development of future leadership, is required.

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  For 75 percent of organizations the management and implementation of a talent management program is owned and led by HR rather than the wider business. Deloitte’s research indicates that business driven talent processes are more successful, especially when visibly supported by leadership.

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  Only 25 percent recognize access and exposure to leadership as a key retention tool for talent.

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  A total of 60 percent state that they focus on connecting their people with the local community and important social issues through corporate social responsibility programs.

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  Of the organizations, 80 percent rely on traditional approaches to reward their people based on annual performance. Reward could become a significant opportunity for companies to differentiate themselves from their competitors with regards to talent.

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  The influx of “generation Y” workers will require customized talent strategies to meet their demands. Organizations will need to implement new technologies and networks to enable increased collaboration and innovation.

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  New models of talent will be required for business units that increasingly rely on outsourcing, such as HR, Finance and IT.

For more information

Visit www.deloitte.co.uk

Story 3

Business executives say globalization is inevitable yet positive

Globalization is viewed by top executives at leading organizations around the world as an inevitable but positive business challenge that is here to stay and growing rapidly. This is according to the “EquaTerra Globalization Study”, conducted by the Economist Intelligence Unit on behalf of EquaTerra, a business advisory firm, and World 50, a knowledge sharing community for top-level executives. Over 200 leading executives and senior managers from the Americas, Western Europe and the Asia Pacific were involved in the study.

The findings reveal that politically-led trade protectionism or a major economic downturn are seen by study participants as the only major threats to the continued growth of globalization. Yet, despite these perceived threats, 90 percent of executives questioned viewed globalization as inevitable, indicating that trade protectionism or an economic downturn will not ultimately stop, or even slow, globalization’s expansion.

A total of 72 percent agreed that it is likely to have a positive overall impact on their companies. Over one-third also saw increased globalization as a challenge, but one that will be outweighed by opportunities, such as the chance to expand into new markets, or to improve their company’s brand exposure and sales.

Regardless of the apparent overall optimism, 44 percent of respondents also made clear that finding and retaining high-quality talent is their number one concern over the next three years. This was true among study participants at all levels and across all geographic regions. Notably, executives based in North America were 12 percent more likely than their European counterparts to cite globalization as making it more difficult to find and retain local staff with required skills and experience, highlighting current issues within the tight North American labor market. While finding and retaining talent is still a big issue for those in Western Europe, their two primary challenges resulting from globalization are funding expansion into new markets followed by growth of competition.

More information

Full results of the study can be found at www.equaterra.com/kr/research/The-Benefits-and-Challenges-of-Globalization-all.aspx

Story 4

Automated and integrated compensation systems reaping rewards

Research carried out by Aberdeen Group Research and sponsored by Cezanne Software shows that automated and integrated compensation systems are fueling employee satisfaction and driving bottom line savings, making a connection between strategic compensation management and improved business performance.

The benchmark report, “Total Compensation Management – Taming Costs and Rewarding Employees,” surveyed more than 470 organizations of all sizes and industries worldwide. It highlights how best-in-class organizations are using compensation management strategies and processes to drive improved business performance and workforce retention.

The report found that 87 percent of organizations that achieved Aberdeen’s Best-in-Class status have partially or fully integrated their total compensation data collection with other workforce management applications. In doing so, 90 percent have increased their revenue per employee, 83 percent have decreased labor costs as a percentage of sales, 73 percent have improved employee job satisfaction, and 64 percent have increased employee retention.

Sara Nolan

More information

Visit www.aberdeen.com