Issue link: https://www.e-digitaleditions.com/i/330423
[ 42 ] HRO TODAY MAGAZINE | JUNE 2014 Market Insight Laggards are nearly five times more likely than leaders to have no process in place to measure workforce quality (24 percent versus 5 percent). Based on descriptive responses added to this question, most high performers focus on productivity measures, though myriad metrics are mentioned (from earnings per share to extensive peer review). 4. Quantifying the business impact of your workforce. Leaders are also much more likely to measure the impact of their workforce on their overall organizational performance. Nearly two-thirds (63 percent) use sophisticated or simple metrics to measure business impact, compared with only 15 percent of laggards—a ratio of slightly more than four to one. When it comes to the use of sophisticated quantitative metrics only, the difference is even more striking. Leaders are more than eight times more likely to use sophisticated metrics than laggards (41 percent versus 5 percent). This gives leaders a finely calibrated yardstick for comparing workforce quality with workforce impact, and then reinvesting in their workforce accordingly. What are some ways to measure the impact? "Common approaches to measuring HR's business impact include correlation between talent quality and business performance, reductions in turnover, and increases in internal mobility," says Marks. 5. Applying workforce segmentation models. Grouping employees according to their skillsets, preferences, and other characteristics allows companies to tailor employment terms, incentives and other factors to increase employee satisfaction and fine-tune motivational approaches for different segments. "The continuous use of workforce segmentation models in strategic workforce planning and succession planning exercises is becoming more common amongst high-performing organizations," notes Marks. "These organizations have realized the power these practices can have on identifying internal and external talent opportunities and gaps, and ultimately preparing the organization for the future." Such workforce segmentation is a popular tool among 41 percent of leaders in the survey, who use it to manage 17 GETTING PLENTY OF SATISFACTION: LEADERS REPORT OVERWHELMING SATISFACTION WITH WORKFORCE QUALITY While the vast majority of respondents report being "somewhat" or "very satisfied" with the quality of their workforce, Leaders overwhelmingly report that they are "very satisfied." This comes as no surprise because as we've seen time and again that Leaders are more likely to focus on quantifiably measuring the quality of their workforce, and can directly attribute more of their success to workforce planning in comparison to all other organizations. They work to empower employees with strategies that accommodate diverse needs, but drive to achieve common goals. They are also able to recruit top talent with more effective employee value propositions. How satisfied are you with the quality of your workforce at your organization? VERY SATISFIED 84% 37% 5% 39% SATISFIED 15% 55% 56% 47% NEITHER SATISFIED OR DISSATISFIED 1% 7% 22% 9% VERY DISSATISFIED 0% 1% 5% 2% SOMEWHAT DISSATISFIED 0% 1% 12% 3% DETAILED FINDINGS Mainstreamers Leaders Overall Laggards Source: 2014 Cielo's Talent Activation Index