Video/Audio - First Who, Then What. Implementing an Agile Talent Management Strategy: The Perfect Model for a Crazy Economy (Part 1 of 2) In case you haven’t noticed, the economy has gone to hell. It’s been up and down like a yo-yo for the last decade, a fact that led Time to declare the first decade of the new century “the decade from hell” in a recent cover story. If you work in talent management or HR, this yo-yo pattern certainly isn’t news to you. Surprisingly enough, it’s times like these that present the best opportunity to become more strategic as more managers open their minds to alternative solutions to improve productivity, save money, and move their organizations forward.
This article is intended to get you to rethink your current talent management strategy and to change it so that it better fits turbulent economic conditions and trends that are most likely to stick around for awhile. Times Change; Strategy Isn’t What it Used to Be If you’ve been around for a while, you might remember the recessions of 1970, 1975, and 1983, followed by growth spurts in 1977 and 1984. Thriving on Chaos Up Next Week. Implementing an Agile Talent Management Strategy: The Perfect Model for a Crazy Economy (Part 2 of 2) | TuVinhSoft .,JSC. Measuring Talent Management Return on Investment (ROI)
One very powerful way HR can justify the purchase of employee performance management and talent management software is to estimate the return on investment of such a purchase. Return on investment, or ROI is the ratio of money gained or lost on an investment relative to the amount of money invested. Simply put, this involves calculating the cost of the way things are done today, estimating the cost of doing things using the new solution and calculating the difference, then dividing that by the cost of the purchase. Typically, you would do the calculations for each year over a three year period. It may sound a bit complicated to non-financial professionals, but it's not really that hard. Let's walk through the basics.
Step 1: Calculate the costs of your current performance management process Then multiply each of these averages by your total number of employees and the average salary for managers and employees. You should also factor in staff growth to estimate these costs year over year. Using Talent Management to Drive Firm Value. Solid ROI from talent management | Business Execution Blog.