Ann Marie Puig explains the six key indicators for human talent management
Date : March 22, 2021 By
The importance of measuring and analyzing is related to the ability to anticipate problems that might arise in a company, preventively performing tasks that help detect potential situations before they have a negative impact on the organization, which is always a better option than making decisions to correct a problem. Similarly, monitoring and measurement allow you to have information for proper, better decision-making based on more reliable data. In the particular case of the human resources area, it is important to measure management results as people are a very valuable asset for the company to achieve its objectives and is considered a strategic element that provides capacity for differentiation from the competition. For this reason, it is important to take the time to review how human talent management is being carried out. Ann Marie Puig, a successful entrepreneur and philanthropist from Costa Rica, explains the main indicators for human talent management.
Key performance indicators (KPIs) are metrics that help measure and quantify performance based on specific goals and objectives that have the activities that are carried out for a company’s operations. For KPIs to be truly effective and reliable, they must have certain characteristics which can be summarized with the acronym SMART, Specific, Measurable, Affordable, Relevant and Time-based. It is important not to lose sight of the fact that key indicators of the human talent management process must be aligned to the strategic objectives of the company.
Average training and training time must be considered. Explains Puig, “To provide training and development to the person is to equip them with knowledge so that they can carry out their work more efficiently. This indicator provides information on how to improve employee productivity by providing you with the tools needed for your professional growth.”
This KPI should show the relationship between the investment made per employee in relation to training and the improvement in job performance. By increasing the levels of this indicator, the company obtains important advantages such as an increase in the level of employee satisfaction, confidence of the collaborator to take on challenges and innovate as well as the commitment of part of it to execute with its best effort the tasks entrusted to them.
Average time to reach goals is another consideration. With this indicator, you can measure the effectiveness of collaborators, which is important since it is measured from the moment the employee starts his activities in the company, so you can evaluate whether the selection process has been appropriate. It is important that the objectives and expected times are achievable and measurable. This you can do with the help of the Balanced Scorecard, which will guide you to know the progress of the collaborator in meeting established goals. Ideally, as the employee gains experience in the position this data decreases thanks to the time and training that the company provides.
Staff turnover rate is one of the main indicators to take into account as it measures the degree of permanence of employees in the company. States Puig, “One figure that can be considered suitable for this indicator is that the rotation is less than 5%. Having a high turnover involves high costs for the company in areas such as recruitment, training, employee efficiency due to the learning curve, etc. In addition, this KPI is an indicator that expresses the motivation, sense of belonging and commitment that is being fostered in the company towards employees.”
By tracking absenteeism levels, you can measure the absences of employees to the workplace either by faults, by permits or by delays on arrival. This indicator is very valuable as it not only reflects the obvious data but has a broader background on employee motivation, commitment to job performance and the operation of the company as such. Depending on the payment granted to the employee, the costs for the company of the accumulated absences per worker can be estimated. Itis essential to pay attention to this indicator individually since, usually, an employee with high levels of absenteeism and delays when arriving shows dissatisfaction with his work and with the company, which will affect his performance and probably in his permanence.
We can consider the talent retention rate as a complement to the previous point as retention should be the main goal of the company. For this, it is important that you identify key positions and collaborators for the organization as well as the time they have been in the company. For this calculation, you will have to divide the key collaborators who remained in the company during the year among the total of key collaborators.
Measuring the time that vacancies are available without being able to find the ideal person is an important indicator that allows to evaluate the effectiveness of the human talent department to provide staff to the company. Asserts Puig, “It is also very useful to know if job profiles are well defined, whether recruitment is being effective both processes and channels. It is essential to understand well the reasons why this index can appear as high for the company since in the understanding of achieving goals of decrease of days can make the mistake of contracting without the person covering the requirements generating an affectation to the other indicators, especially the turnover rate.” This can have an impact on the organizational climate as it is considered job instability.
The ability to attract and retain talent will be reflected in the ability to establish key indicators that allow it to evaluate the management of human talent processes. Knowing the competencies that your team has is one of the most important challenges that the human resources department currently has, so analysis and monitoring in this area are fundamental for the company.