It Takes a Human Touch for Businesses to Succeed

By David Rubinstein

August 15, 2008 —  Managers do a good job making strategic decisions that help their companies remain competitive. But when it comes to managing people, they just don't devote enough time to doing it well, according to a study released yesterday by the Human Capital Institute (HCI) and IBM.

Of the 1,900 respondents to the “Integrated Talent Management” study, 84 percent said they know that putting people in the right roles is key to business success, but only 42 percent said they think managers spend enough time getting the most out of their people.

Among the other findings were that organizations see better financial performance when talent management practices are applied. The practices that have the greatest impact on financial performance, the study found, are understanding and acting upon employee engagement, and aligning recognition and performance management systems.

"The long-term payoffs of strong talent management far outweigh the costs and complexities associated with up-front investments," Allan Schweyer, executive director of HCI, said in a statement. HCI is global network of more than 120,000 members in 40 countries, representing organizations from the public, charitable and government sectors.

The study found that organizations recognize the value of instituting talent management practices, but struggle to apply workforce analytics, promote collaboration, deploy people effectively and foster employees’ professional development in a timely way. Only 40 percent of the respondents said they could accurately forecast skill needs. Also in the minority, at 49 percent, were those who they have the right tools for collaboration. And just 38 percent said they believe their companies have the proper focus when it comes to developing their employees to serve in areas of the organization where the needs are greatest.

Mid-sized organizations (1,000 to 10,000 workers) have a more difficult time putting talent management practices in place, according to the study, because they are too large for informal practices and too small to have the necessary human capital infrastructure. Further, companies in the electronics, technology and professional services sectors are more likely to apply talent management techniques.

"The IBM/HCI study clearly calls for the same rigor in talent analytics and management that CEOs and CIOs require to make the strategic decisions their companies depend on," said Tim Ringo, IBM's vice president for human capital management.

The IBM Institute for Business Value draws on the expertise of the company's Global Business Services division to provide business process expertise across 17 industries, with the goal of creating sustainable solutions that improve business performance.


Related Search Term(s): professional development, Human Capital Institute, IBM

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