Human Resources South Africa|Tuesday, July 17, 2018
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The strategic nature of the talent management, would mean that the role should be measured and the outcomes of the measurements should be value adding. The HR contribution to the achievement of the business people is through effective human capital metrics. These metrics usually concern the talent quality, talent development and talent deployment, with emphasis on strategic and core competencies. Human Resource Management decisions on talent are strategic in their nature. For those decisions to be effective, efficient, with a meaningful impact, HR practitioners should possess analytic capabilities to make such decisions (Lawler III, Levenson, & Boudreau, 2004).

While fields like finance, marketing and operations present outputs in their measurements, the ROI (Return On Investment) for HR talent programmes are difficult to measure, in what attributes this difficulty in HR being a “decision science” Talentship in HR should be able to make decisions concerning human capital, and align the HR strategy to business strategy. Questions concerning the human capital and the Alignment strategies should be able to measure the impact, efficiency, and effectiveness according to the HC BRidge decision framework (Illustrated in Exhibit 1) (Boudreau, and Ramstad, 2004). Impact will ask: ““How much will strategic success increase by improving the quality or availability of a particular “talent pool?” (Boudreau, and Ramstad, 2004: pg 9). Effectiveness asks: “How much do HR programs and processes affect the capacity and actions of employees in talent pools?” (Boudreau, and Ramstad, 2004: pg 10).

Efficiency asks: “How much HR program and process activity do we get for our investments (such as time and money)?” (Boudreau, and Ramstad, 2004: pg 11).

Then after the answers to these questions should be value based (which would provide a metric for HR programmes that seek to promote the business strategy) , rather than activity based. Value based metrics are indicated when HR seeks to answer the business strategy by looking at the revenue per employee in training programme, cost per hire versus turnover, and the return on investment of training and development programs rather than activity based metrics that seek to measure the amount of hours or sessions for the effectiveness of Human Resource Management programs (Farley, 2005).

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