Two thirds (64%) of HR professionals around the world see a new professional and managerial level employee's immediate performance as a critical indicator of a successful recruitment process. But 40% of are concerned about the metrics and measurements that they have in place to assess their impact once the recruit is on board, according to a global study from recruitment solutions company, Futurestep.
Launched today, the inaugural Futurestep Global Talent Impact Study 2012: Understanding the Race for Impact surveyed more than 1,500 HR professionals from across five continents and examined their views on the impact of professional and managerial talent and how they measure it.
Further, over three quarters (76% of respondents) measure the impact of a hire in the first 12 months, viewing this immediate impact as three times more valuable than retention - highlighting the pressure on organizations to focus on short-delivery as a result of the economic uncertainty.
The research found that organisations are drawing on a range of methodologies and metrics to measure the impact of a hire, with considerable differences between countries. Overall, 62% of respondents formally measure the impact of a hire on the business, but China and Hong Kong are twice as likely to measure this (89% and 85%) compared to their Australian counterparts (44%).
The study also reveals while 95% of HR decision makers who have a formal measurement process in place use a methodology, only half (51%) of them agree that this methodology is widely used within the organisation.
On average, HR professionals adopt two criteria of success- the most popular measures are performance data and financial performance (64% and 46% respectively) and only 23% respondents cited board level requirements as a driver for measuring impact, the recruitment process and promoting the values of the process were ranked highest (56% and 48% respectively).
Byrne Mulrooney, CEO at Futurestep, said: "It's clear that there isn't a one size fits all approach to measuring impact but many organizations favour performance and financial data over longer term measurements such as retention and the potential for promotion.
"Interestingly, there is some acknowledgement that new employees are often measured too early and before they reach a point when they are most likely to make the biggest impact. This may be because soft skills such as creativity are harder to develop and measure and are less likely to emerge within the first year.
"The big question is how to prove the value of measuring the impact that an employee has - not just on the recruitment process and in the first year but also on the business in the long term. There seems to be headroom for senior leadership to show a greater interest in the impact of an individual.
"With senior buy-in, HR professionals will be well positioned to highlight the benefits that individuals can bring to a business in the medium to long term and gain greater recognition for the strategic role that HR plays within businesses."
Futurestep conducted online surveys with a sample of 1,589 HR professionals in the US, UK, France, Germany, Brazil, China, Hong Kong and Australia. The fieldwork was conducted by Research Now, an independent research company, in accordance with the ICC/ESOMAR Code on Market and Social Research.
Respondents were visitors to Futurestep websites or members of Research Now's global business panel. Surveying took place between February 21 and March 9 2012. Data analysis was carried out by The Analytics Hub, an independent statistical firm.
