We are also setting clear performance goals for our employees and helping them to understand how their actions affect the big picture. Having the right tools in place to have those kinds of conversations is critical.
(PRWEB) January 30, 2007
More than nine out of 10 North American business and HR executives surveyed in late 2006 say their companies are experiencing increased competition for talent -- leading to higher compensation packages, slower time to new hires and reduced business flexibility. As a result, executives say they will increasingly look inward, to their existing workforces, to find and develop the competencies they need to address changing requirements in their markets.
These and other findings were part of a landmark study entitled "The 2007 Performance and Talent Management Trend Survey," which includes responses from 726 business executives and HR professionals. The research was conducted by SuccessFactors, a global provider of talent management solutions, in cooperation with the Business Performance Management Forum, a leading executive thought leadership organization and the Human Capital Institute, a membership organization and think tank for professionals and executives in recruiting, HR and talent management.
The study shows that economic expansion and business growth are major contributors to the current human capital shortage, but so are more fundamental shifts in the economy, which are creating the need for new and different competencies at most companies. 88 percent of respondents say the critical competencies needed in their organization are changing, and nearly half say they are changing to a "high" or "very high" degree.
The survey also underscores the growing need for improved processes and systems for talent management and development, as well as the significant positive impacts that the implementation of talent management solutions can make. Yet, it also demonstrates that a large percentage of companies don’t have adequate talent management practices in place. For example, nearly three quarters of all respondents either strongly or very strongly agreed that talent management was a strategic priority within their company. However, only 57 percent said their companies have formal plans to identify, grow and retain talent.
"The talent gap is growing for companies across America and around the world, making human capital management and development more strategic to businesses than ever before," said Lars Dalgaard, CEO of Success Factors. "Our research indicates that companies that are embracing this need are reaping huge competitive advantages and better financial results."
Among other key study findings:
- 98 percent of respondents say competition for talent is increasing in their industry, and 65 percent say it’s increasing to a "high" or "very high" degree.
- Nearly 95 percent say the cost of acquiring and keeping talent rose in 2006, and two-thirds say costs increased more than slightly.
- The most profound impacts of growing competition are increases in the time it takes to find talent, and a growing requirement to develop internal talent.
- Talent development was indicated as the number one human capital management challenge of 2007, according to respondents, followed by retention and turnover, and talent acquisition.
- 55 percent note higher salaries were required in their organization in 2006. And 68 percent identified the need to implement internal talent development in their companies.
- Company growth is expected to be the leading driver for new talent acquisition in 2007, followed by evolving corporate cultures and changing market demands.
- Only about one quarter of respondents say their companies have formal talent scorecards, and only 29 percent say they know how to measure talent performance and productivity in terms of business value creation.
"We are tying our systems such as compensation, learning management and performance management, together to make them more effective," said Tim Toterhi, Director of Global L&D Strategies and Solutions at Quintiles Transnational, a leading pharmaceutical services company that has implemented talent management solutions from SuccessFactors. "We are also setting clear performance goals for our employees and helping them to understand how their actions affect the big picture. Having the right tools in place to have those kinds of conversations is critical."
The study also revealed some interesting differences between large companies with more than 1,500 employees and smaller companies with less than 300. For example:
- Globalization is having an impact on the way companies of all sizes acquire and manage talent, but more so for larger companies (63 percent versus 49 percent).
- Larger companies are much more likely to identify management leadership as one of their most valued competencies (70 percent versus 49 percent), whereas smaller companies place a higher value on such competencies as people skills, creativity and intelligence.
- Larger companies are more likely to have formal plans to identify, grow and retain talent (68 percent versus 41 percent).
- Smaller companies are more likely to identify company growth as a leading cause of the need for new talent (57 percent versus 49 percent), whereas larger companies are more likely to identify departure due to a hot job market (34 percent versus 19 percent),
A full report on the findings of the 2007 Performance and Talent Management Trend Survey is available for download at http://www.successfactors.com/trends07/.
SuccessFactors delivers performance and talent excellence, on demand. The company’s software promotes visibility, accountability, and results, enabling organizations to eliminate the politics that destroy motivation and impede performance. Fueled by the industry’s highest renewal rate, SuccessFactors has grown in the past 12 months from 275 customers to over 1,000 customers and from 1 million users to over 2 million users in 139 countries, across 40 industries, and in 18 languages—all while becoming easier to use. During that period, the company nearly doubled its employee base, currently employing over 400 people passionate about effective human capital management. Carefully managed and executed internal growth has allowed the company to provide the same caliber of absolute excellence in execution for customers that catapulted SuccessFactors into the product, customer and revenue leader in the performance and talent management space. Customers include Kimberly-Clark Corporation, MasterCard Worldwide, T. Rowe Price, Textron, Sutter Healthcare, Direct Energy, Arrow Electronics, Quintiles Transnational, Volkswagen of North America, Lancaster General Hospital and Salesforce.com. The company continues to execute at a level of global excellence by providing an industry-leading, scalable and secure global hosting operation. Founded in 2001, SuccessFactors has 15 worldwide offices collaborating for strong local support of customers. For more information, visit http://www.successfactors.com/.
This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.