This presentation includes key research into the value that human resources teams can provide through strategic, competency-based talent management practices.
The Value of HR This presentation provides summary results from key HR research done over the past fifteen years. Compiled by Darin Phillips
Attract & Retain or Lose to Resignation What attracts and retains high performers? 79% stay because of opportunities for advancement 69% stay because their job is redesigned 65% stay because they are learning new skills in their current job Why do high performers resign? 56% leave because they are dissatisfied with company management 56% leave due to inadequate opportunity for promotion 50% leave due to dissatisfaction with pay - “Strategic Rewards” by Watson Wyatt, 1999
HR System Impact - Shareholder Value The difference between a non-strategic HR system (0) and one that has removed the barriers to performance (20) are dramatic. Improving the relative sophistication of the HR system by adopting best practices does not provide measurable value (20%-60% adoption of a strategic HR system). Integrating the strategic elements of HR into the broader fabric of the organization provides a significant improvement in shareholder value (60%-80%). When HR systems have adopted best practices and aligned those systems with business priorities and initiatives they return the greatest shareholder value (80%-100%). - Huselid, Mark and Becker, Brian (1995). High Performance Work Systems and Organizational Performance. Paper presented at the 1995 Academy of Management Annual Conference , Vancouver, BC.