In a news release, SuccessFactors said that the productivity gap will only worsen as more baby boomers enter retirement (See Employers and Employees Are not Prepared for Aging Workforce Issues ). The 2006 Performance and Talent Management Trend Survey revealed that a significant number of companies have no strategic plan in place to manage talent assets (See Succession Planning Pays Dividends), little to no visibility into their individual talent pools, and no comprehensive merit plans in place to reward performance (See Total Benefits: A Job Well Done ).
According to the release, the survey found that:
- More than 50% of companies fail to have a succession planning strategy in place;
- More than 50% of companies report challenges aligning employee goals with corporate strategy and tracking employee progress against those goals;
- More than 45% of companies lack visibility into their employees’ skills, experience levels and desired career paths; and
- More than 50% of companies report that the majority of their employees are not compensated or rewarded based on performance.
“These survey results are disturbing as they definitively underscore the lack of formal structure and processes in place to defend against a well documented and understood impending talent crisis,” said Jason Corsello, Program Manager, Business, IT & Outsourcing Services, Yankee Group, in the release.
Additionally the survey found that only 28% of corporate America appears satisfied with its existing performance review process (See Workplace Reviews a Painful Experience). Seventy-eight percent of respondents reported at least an annual company-wide performance review program. Only one-third have taken steps to implement a software solution that helps with writing effective performance reviews and streamlines the review process for human resources managers.
Other key findings include:
- More than 35% of companies fail to set goals and objectives for their employees;
- More than 45% fail to quickly identify qualified internal candidates for open positions;
- More than 50% report difficulty completing performance reviews on time; and
- More than 50% of existing employee reviews are poorly written and ineffective.
The survey was made up of responses from 1,000 human resources professionals representing companies ranging in size from 25 to 250,000 employees. A detailed report of the survey’s data and findings is available at http://www.successfactors.com/trends .