Why You Should Be Tracking Quality of Movement
As organizations place more emphasis on getting the most out of their talent, the need for robust human capital analytics continues to grow in importance. Several i4cp research studies have shown that the companies who track advanced metrics and statistics, and subsequently have more integrated talent management systems, are more likely to outperform their competitors.
Through these studies, i4cp and several of its member companies - some of the largest and most respected in the world - have worked together to determine which metrics high-performance organizations are using, how they're using them and why.
One such metric is quality of movement, featured in a new, member-exclusive white paper by senior i4cp analyst Carol Morrison.
When any type of internal movement takes place - such as an employee's advancement (promotion) or lateral or even downward movement - an organization needs to know whether or not the action has addressed a need and delivered value toward achieving company objectives. They must track more than that the move occurred, but the business results of the move as well. Did productivity for that position rise? Has the promoted worker remained in the job for a specified period of time?
Quality of movement is especially important for tracking and measuring employees considered highly valuable to their organizations, such as high-potential (Hi-Pos) or high-performing employees.
And yet, few companies measure quality of movement for these employees.
The i4cp/Human Resource Executive 2011 High-Performance Organizations Survey shows that just over 20% of respondents agree or strongly agree that their organizations have transparent, formal processes to identify and develop their Hi-Pos. Even fewer - only 9% - strongly agree that they identify and track Hi-Pos well.
So according to i4cp research, few even know who their high-potential employees (Hi-Pos) are. These individuals, valued as future leaders to be developed in the organizations succession pipeline, have suffered through years of sagging compensation budgets and are considered a higher turnover risk once greater rewards and opportunities are made available. Added to this is i4cp data showing that less than a third of organization track metrics such as internal placement rates, promotion rates or time to full productivity - although more than two-thirds recognize that they should.
While high-performance organizations are more likely to identify and develop Hi-Pos (36%), that still means most companies are flying blind when it comes to some of their most valued employees. They have no way of knowing whether Hi-Pos are being identified correctly, promoted quickly enough and whether they remain at the company post-move.
Furthermore, measuring quality of movement also serves as a sort of acid test of organizational integrity. Often, firms publicize their commitment to hiring from within and advancing employees. Tracking of internal movement confirms that the organization actually does follow through by hiring internally and by promoting its existing employees. Taking the process a step further to incorporate tracking of retention after internal movement is the icing on the cake. It demonstrates the company's commitment to identifying glitches in the process so that action can be taken to correct them.
Quality of movement is an important metric in the shift toward more effective measures in talent management. It places the focus on how well a process is working by tracking results and making linkages to business results; a more strategic and forward thinking approach. This more strategic use of talent management metrics will also allow organizations to be more proactive and agile in the talent marketplace, responding to threats and opportunities before their competitors.
For more information, download i4cp's Quality of Movement White Paper, available exclusively to members.
