February 3, 2010 – Amid a shaky job market and predictions of massive turnover once the economy rebounds, a new study confirms that companies with integrated talent management processes not only achieved greater year-over-year profitability, but are also better positioned to achieve long-term success than companies with disparate HR processes and employee database systems. The study, “Integrated Talent Management: Improving Business Results through Visibility and Alignment,” was conducted by the Aberdeen Group, with support from TalentScope, Inc., a provider of talent management solutions. The report finds that leading companies with integrated talent management processes averaged seven times greater year-over-year profit per full-time equivalent and a 19 percent year-over-year increase in employee engagement versus non-integrated businesses. Those same businesses have nearly 50 percent more positions with identified successors–a key component to managing attrition due to retirement or resignation. Eighty-five percent of top-performing companies (with respect to employee performance, hiring manager satisfaction and employee engagement) indicate they have at least partial integration of talent management processes and workflows, whereas 63 percent of bottom-performing organizations indicate no integration of talent management processes at all. “Seventy-six percent of the executives Aberdeen surveyed for this study indicated that organizational effort on talent management will increase in 2010,” said Kevin Martin, VP and principal human capital management analyst at Aberdeen and co-author of this research report.
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