Companies that create a talent culture based on measurement, focused on selecting the best, as well as the long-term development of their employees, will be the long-term winners.
Managing merit pay effectively contributes to creating a stronger workforce, and it enables businesses to reach their goals.
With economists declaring the recession has ended, employers and employees are looking toward a more hopeful future — perhaps through different lenses. Workers across industries and locations have felt the pinch of reduced hours, income and jobs in general, and many are itching for something better.
On the other side of the coin, many employers were forced to lay off staff to stay afloat, which put additional stress on those who remained, and companies know there’s dissatisfaction among the ranks. As the economy shows signs of strengthening, many organizations will need to staff up while trying to retain their current workforce. We saw similar conditions among the workforce in 2004 following the much smaller 2001 to 2003 economic slowdown, and we learned some lessons.
This scenario presents many challenges for talent leaders, who already have been under pressure to help business managers make smart talent decisions within a climate of flat or reduced HR budgets. But they can stem a probable tide of departures and lay a strategic foundation to acquire new talent by making an organizational commitment to create a workforce culture based on talent measurement, using objective insights to drive better hiring, development and promotion decisions. Begin With the End in Mind
Strategic talent programs need to measure success and demonstrate value to the organization, proving their impact on business outcomes. Success measures must be considered and prepared for in the early stages of a program’s inception. What are the business goals? How will program impact be measured? What data is available, and is it linked to the talent program? Does the organization value those particular data points?
Jana Fallon, vice president of recruiting for Prudential, said she knows firsthand what it’s like to make tough decisions and manage staffing challenges through up and down cycles. She works with business leaders within her organization to set goals and relies on objective data to monitor and improve the overall function of her talent management programs. “Scientific measures guide our strategy and inform our tactics,” she explained.