A report by the Chartered Global Management Accountant (CGMA), Talent pipeline draining growth: Connecting human capital to the growth agenda has found that failing to draw on the talent and expertise of employees can result in significant difficulties with growing the business and reaching financial targets.
CGMA surveyed over 300 CEOs, CFOs, and HR Directors. They found that almost half (43%) believed ineffective people management had hindered their organisations from achieving financial goals. Additionally, 40% said it had reduced their ability to innovate.
Amid the global financial crisis, employee skills, experience, development, and job satisfaction have become key sources of competitive advantage or disadvantage. Companies with strong HR practices achieve up to 3.5 times higher revenue growth and twice the profit margins compared to companies with weaker talent management.
Accurate Human Capital Metrics to Drive Organisational Growth
The survey revealed that disconnection between executive and HR management, differing priorities between HR directors and CEO’s/CFO’s, lack of agreement regarding responsibility for talent development and cuts in investment in workforce skills, training and qualifications had contributed to the lack of investment in people. Another key concern raised related to the quality and amount of information that business leaders receive on human capital.
Arleen Thomas, CGMA’s Senior Vice President of Management Accounting, stated that many companies fall short of their potential because they lack thorough, relevant information about their employees to guide strategy, hiring, and training decisions.
RightPeople PeopleMetrics: From Employee Data to Strategic Decisions
Organisations need accurate, timely data on key metrics to make effective talent management decisions and investments. Crucially, they must translate this data into actionable insights. Weak data can lead to poor decision-making around people issues.
Only 12% of CEOs trust the quality of metrics senior management receives on human capital. Meanwhile, 38% of HR directors say their organisation struggles to obtain accurate data on human capital costs, productivity, value, and ROI.
For many organisations, collecting key employee data, analysing it, and turning it into action is time-consuming and complex. It often becomes secondary to core business priorities. Which is where we come in.
Optimising Talent and Workforce Decisions with Reliable Surveys and Analytics
RightPeople has over 35 years of employment testing and employee data gathering experience. Our PeopleMetrics survey tool not only collects workforce data but also identifies underlying organisational trends. We can deliver surveys quickly and with minimal disruption. Our approach avoids the common pitfalls of do-it-yourself surveys. We provide end-to-end project management, in-depth analysis, and detailed recommendations.
Our surveys and assessments are theory-based and highly accurate. They are developed locally, administered online, and support is available seven days a week. We design and tailor products for each organisation’s needs. Standardised test results, including recommendations for next steps, are delivered within a short turnaround time.
To find out more about how we can help you to avoid the pitfalls of properly managing your talent, contact us today.
