Today’s challenging economy, combined with dramatic restructuring within most industries, has placed even greater emphasis on using data to understand critical workforce trends and shape strategic talent plans for 2010 and beyond
Washington, DC (PRWEB) September 29, 2009
Infohrm, the global leader in workforce planning, reporting and analytics solutions, today announced key findings from its 2009 industry-focused human capital benchmarking studies. The studies utilize benchmarking data from participants in Infohrm’s Industry Consortia, a newly designed program which enables human capital leaders to address critical and unique industry specific challenges in talent management.
“Today’s challenging economy, combined with dramatic restructuring within most industries, has placed even greater emphasis on using data to understand critical workforce trends and shape strategic talent plans for 2010 and beyond,” said Brian Kelly, President of Infohrm North America. “In response to strong demand from the market, we launched Industry Consortia focused not on traditional benchmarking data, but focused on industry-specific business issues which can analyzed through advanced industry benchmarks and analytics. The initial results have been compelling, with senior executives gaining meaningful insight into the human capital dynamics within their industries and their businesses.”
Selected findings by industry include:
- Early-tenure turnover of hourly/non-exempt employees remains an issue in today’s economy, with the median Voluntary Termination Rate in excess of 125% within the first three months of hire. For a retail firm hiring an average of 2,000 hourly employees per month, and using a conservative employee cost model, this represents a cost in excess of $7.5 million.
- The retail industry continues to shift its labor force to more hourly workers relative to exempt staff. The median organization grew overall headcount by 1.4% but the Net Hire Ratio for exempt employees consisted of 0.79 (only 79 percent of terminations are replaced by new hires).
Energy & Utilities
- Operating profit per FTE is significantly higher in this industry relative to all industries (average of 25 percent), however significant disparity exists within this industry group (upwards of $400,000 difference between similar companies).
- This industry is at a higher risk of increased turnover of key personnel moving forward, as the internal mobility of key talent has lagged significantly behind comparable industries.
- Financial Services firms have significantly reduced the age (and cost) of its workforce in light of current economic conditions, with the average workforce age at the median organization of 42 years.
- Median retention rates for staff with 1-2 years of tenure (78.08 percent) are significantly lower than those of new hires (88.03 percent, for staff with less than 1 year of tenure) and more experienced employees. This suggests that investments in first year onboarding and training initiatives are not being returned to the business in the form of higher productivity.
- Early tenure termination rates remain high (the median Termination Rate for employees with less than 1 year of tenure is 32.29%), a significant cause for concern in a highly skilled industry where organizations invest significantly in both hiring and development.
- Healthcare firms are “net buyers” of talent, posting strong Net Hire Ratio results. However, health care organizations should use both acquisition and termination benchmarks to understand the true costs of talent churn.
The complete findings, as well as benchmarking data for up to 100 metrics, can be found in the full Industry-Focused Benchmarking Studies. All of Infohrm’s benchmarking reports are available for purchase at the Infohrm Bookshop.
About Infohrm’s Industry Consortia:
Launched in late 2008, the consortia address critical and unique industry challenges in utilizing workforce and business data to quantify the impact of human capital, tie workforce measures to business results, and share best practices in workforce planning and risk management. Participants will benefit from a broad range of learning opportunities and industry-specific analysis, including:
- Consortium-driven research agendas, supported by Infohrm’s global human capital dataset and more than 30 years of analytics and planning expertise
- Web conferences, in-person networking events, and ad-hoc brainstorming calls
- Industry-specific metrics benchmarking reports
- Packaged workforce analytics reports on topics ranging from low-tenure termination patterns to aging workforce profiles
- Sharing of best practices, lessons learned, and opportunities for collaboration
To learn more about participating in future Industry Consortia, please visit Infohrm at the HR Technology Conference in Chicago (at Booth #820) or contact Dave Willis at 202-589-2676.
Infohrm is the global leader in on-demand workforce planning, reporting, and human capital analytics solutions. With over 25 years of experience, and a strong customer base consisting of Fortune 1000, non-profit, and government clients, Infohrm has paved the way for organizations to measure the impact of human capital initiatives and drive business results. The Infohrm solutions couple leading edge software with strategic consulting and HR professional development services that focus on the analysis of data to help organizations make informed decisions around human capital practices.
Learn more at http://www.infohrm.com
This press release was distributed through PR Web by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company