Yet more concerning news on the HR analytics front. This time in a recent survey from ACT Bridge (free with registration) finding 56 percent of employers are still failing to measure the return they’re receiving on their talent investments.
Equally troubling, its release states – is that, among those employers who do measure the ROI of their talent invesments (they call it RTI to account for the specificity), “only 42 percent measure the RTI of their education and training programs, 32 percent measure the RTI of their HR information management tools and systems, and 25 percent or less measure the RTI of the recruiting firms, job boards, social media sites and other key resources they use.
As Kurt Ballard, ACT Bridge principal and chief marketing officer, puts it:
These findings are disconcerting for two reasons. First, organizations that actively measure RTI gain a quantifiable metric that can be tracked and used to establish critical performance benchmarks that are instrumental in making decisions that produce desired results. Second, measuring RTI is a powerful way to establish and reinforce the strategic value of HR to senior management — which is especially meaningful in today’s data-driven, cost-conscious business environment.”
This is certainly not the first time we’ve caught wind of a troubling hesitancy — or inability — on the parts of employers and their HR leaders to accurately track and analyze all the data they’re now collecting — talent management and otherwise.
Our most recent look on our magazine’s website, HREOnline™, comes in this December news analysis by Senior Editor Andrew R. McIlvaine concerning a KPMG survey that shows all the specific analytical merits of tapping into a centralized data source, yet also shows the continuing foot-dragging by most organizations’ top leaders.
Much earlier in the year, in April, Web Editor Michael J. O’Brien wrote about this survey by Taleo and the Human Capital Institute showing only 43 percent of about 600 polled employers believe they’re adept at analyzing workforce data.
Here’s another interesting piece we ran on our website from A.T. Kearney, likening the mistakes of baseball talent managers of years past to employers’ current mistakes in using the talent-management data they’re collecting correctly.
This Leader Board blog has been frequented by similar findings as well: in this May post by Editor David Shadovitz about compensation professionals’ apparent lack of skills in analyzing data for their function, and in this post — also in May – from O’Brien on the need for HR professionals to learn how to better “tell the story” of the HR analytics they’re collecting.
There’ve been other reports through the years (I recall writing a few clarion calls for better HR analytic skills myself). Just can’t figure out what the real holdup is, with so many experts calling for this change.