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Tuesday, May 05, 2009

What Do High-Performing Companies Track?

Want to be a high-performing company? Then track your talent. A new study on HR metrics by i4cp shows that higher-performing companies are more apt to measure talent-related metrics than lower performers. Common talent-related metrics include movement within the organization, quality of hires, quality of promotions and the cost of training/development.

Key findings:

  • 93% of higher performers measure employee engagement, compared with 79% of lower performers. In this economy in particular, engaging the workforce is of paramount importance.
  • 93% of higher performers utilize employee engagement surveys, compared with 78% of lower performers.
  • 90% of high performers report the use of satisfaction surveys for such measures, compared with 68% of lower performers.

The study - commissioned internally by i4cp - also found several other significant traits for high-performing organizations. For example:

  • 71% of higher performers measure compliance or completion of diversity plans (52% in lower-performing companies)
  • 61% of higher performers, compared with 39% of lower performers, consider employee referral rates.
  • 78% of lower-performing organizations measure total labor cost to cost revenue percentage, compared with 55% of high-performing organizations.

BOTTOMLINE: "The contrast is striking - it most likely reflects the attitude that low-performing organizations see their employees a mere expense and not a source of competitive advantage."

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