Only one in three companies uses the data obtained during recruitment or employee performance appraisals in their business decisions. Companies which do use this data for attracting the best talent are outperforming their competitors by 58% and can earn up to 200% higher margins. These important results are from a survey by the Alexander Mann Solution recruitment agency and HRO Today Institute, a global organization of HR managers, titled Counting Success: How metrics & measurement correlate with business success.
As reported by the HR Magazine website, 90% of companies collect data on employee performance but only half uses this data in programs for attracting talent. Moreover, 32% of companies do not analyze the collected data at all. The survey involved 380 HR managers from more than 300 globally companies based in North America (67%), EMEA (24%) and the Asia Pacific region (9%). The companies primarily do business in the fields of technology and media (28%), investment banking (21%) and energy (20%).
The most commonly collected HR data included the results of performance evaluations (73%), data on the retention of newly hired employees (55%) and data on customer satisfaction (50%). The least often collected data included data on promoting new employees (13%), the time necessary for new employees to achieve full performance (12%) and the profit per employee (24%).
Obstacles that are preventing companies from collecting HR data efficiently included a lack of IT systems able to collect and analyze data across different parts of the companies worldwide, limited resources of HR departments, and insufficient accountability and discipline.
The entire study is available for download at the HRO Today Institute website here (after filling in a registration form). You can read the results for the individual regions as well as recommendations on how to better use performance data to improve business results of companies.
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Figure: Types of performance data collected by the surveyed companies (Source:Counting Success: How metrics & measurement correlate with business success. Alexander Mann Solutions, HRO Today Institute, 2013. p. 6)
