Businesses, today, are not short of data. Their executives, however, are experiencing continuing challenges relating to the use of this data to provide them with meaningful insights concerning the performance of the business. In a world where not just the volume of data counts but also differentiating which data matter and why, both analysts and executives require an objective yardstick or point of 'true north' against which they can gauge the contribution of data to crunchy strategic questions.
Drawing on the results of a major survey, Deloitte has established a new strategic tabula rasa for executives working within the human resources function. The research focused on human resources due to its being a particular analytics 'honeypot'. This is primarily because the function acts as a point of convergence for large volumes of data relating to employees and because the relationship between data-driven insight and the financial contribution to business performance made by employees is not yet clear.
In this paper, Deloitte proposes a new metric – Return On Investment in Talent (ROIT) – to help corporate leaders make evidence-based, strategic choices to drive the performance of their business. Furthermore, the analysis reveals that the performance of senior HR executives, when viewed by fellow leaders across the business, appears to be enhanced substantially by success in four key aspects: whether they are networkers, strategists, analysts or executors.
Where the numbers finish, though, the executive craft begins. Those responsible for driving the performance of talent carry the burden of weighing the contribution made by their firm's human capital against the wider dynamics revealed by analytics and acting accordingly. ROIT, delivering an accountable, evidence-based metric, represents a significant step towards meeting this challenge.
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What Price Talent? (PDF)
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