HR fails to value talent

Employers are failing to value their talent pool, despite claiming that their staff are their “greatest asset”, according to a new survey.

Research carried out by the Chartered Institute of Management Accountants (CIMA), which interviewed 513 executives, found that 97% of employers believe that “good management” in employees has a direct and measurable impact on business. However, 57% of them are either unaware or not currently using HR data when building business strategy.

Peter Spence, Head of Performance Management Research at CIMA, told Executive Grapevine why companies are falling short when it comes to talent appreciation and mobility. He explained: “Currently companies are failing to value their talent because there are no commonly accepted metrics to explain the impact of investment into talent management on company performance.

“In most businesses people are intrinsically linked to performance however, the real effect of poor engagement and productivity are not recognised as problems that can be solved by assessing and understanding data. Instead many companies focus on analytics that can be readily related to the bottom line – such as the cost of losing talent and the cost of recruitment, thinking this sufficiently reflects the value held by this intangible asset.”