Market Value...

Today’s marketplace is incredibly competitive in every industry around the globe. The difference between success and failure is talent. (Indra Nooyi, CEO Pepsico)

ROI of Talent Management

• From 1998 to 2006, the stock of the companies identified in Fortune’s “100 Best Places to Work for in America” list outperformed that of the S&Ps 500 by more than 230%. (Fortune, 2006)
• Organizations that apply talent management practices demonstrate higher financial performance compared to their industry peers. (IBM/HCI Research, 2008)
• Companies with superior human capital practices can create more than double the shareholder value than companies with average human capital practices. (Watson Wyatt Research, 2008)
• Companies with higher levels of employee engagement outperformed the S&P by 24% over a 3 year span. (Gallup, 2006)
• Companies with 5K employees will incur an average annual turnover cost of $3.5 M per year; those with 10K employees will average $7 M. No matter how big or small, the math is clear: how effectively a company manages talent directly impacts the bottom line. (HCI, 2004)
• Studies show 90% of hew hires decide to stay or leave a company w/in 6 months of taking a new job. (B. Kaye, Love ‘Em or Lose ‘Em)
• 10% increase in engagement leads to 8% more discretionary effort which leads to 2% improvement in performance. Engaged employees add value in the following ways:

• Go above and beyond what is asked of them
• Fewer absences
• More innovative and confident in expressing new ideas
• Higher levels of productivity