Benefits August 18, 2008

Executives Understand People Management Can Help the Bottom Line

August 18, 2008 (PLANSPONSOR.com) - Some 42% of executives polled in a new survey say managers allocate enough time to people management.
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A news release said the survey by IBM and the Human Capital Institute (HCI) shows that 84% of organizations say they understand that workforce effectiveness is important to achieving business results.

According to the announcement, the survey also finds that:

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  • organizations that apply talent management practices demonstrate higher financial performance compared to their industry peers.
  • organizations find it difficult to apply workforce analytics (only 40% accurately forecast skill needs), promote collaboration (49% provide the right tools), deploy people effectively (64% say they do) and develop those employees in a timely and effective manner (only 38% have the right focus).
  • organizations between 1,000 and 10,000 employees are less likely to apply leading talent management practices compared to other organizations.
  • Knowledge and service-intensive industries, such as electronics, technology and professional service firms, are more likely to apply talent management practices, while the public sector significantly lags in their use.

“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, vice president Human Capital Management, IBM, in the announcement. “The challenge laid out for IBM’s clients is to treat their most valuable asset-their people-as their most competitive edge.”

The study, Integrated Talent Management, was based on research with 1,900 individuals from more than 1,000 public and private sector organizations around the world.

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