Apr 17, 2014 | Blog

How Well Do You Know Your People? 4 Ways to Boost Talent IQ

Develop Your Workforce

Ask companies what their most valuable asset is and their response is often the same: employees. But appreciating team members and understanding how to harness their talents to drive business are two different stories.

Many companies rely on assumptions rather than data-backed facts when it comes to decisions about their workforces. There’s reason to depend on more than gut instinct for hiring decisions, developing employees and keeping them engaged in the long run.

Companies with a “recognition-rich” culture have a 31 percent lower voluntary turnover rate than their peers, according to Bersin by Deloitte.
The good news is that there’s more opportunity than ever for managers to harness data about their employees and apply it across their organizations.

What’s Your Company’s Talent IQ?

Organizations with a strong talent IQ share many qualities that have a positive impact on business, including:

  • Having a clear view of the skills and knowledge required to execute on business objectives.
  • Consistently being able to identify and recruit candidates with the right skills and culture fit.
  • Knowing the interests, expertise and capabilities of every employee.
  • Knowing which employees are flight risks so they can proactively address retention issues.

 

The truth is, many companies are lagging in one or more of these fields. In fact, 42 percent of employees are looking for a new job because they feel that their current role doesn’t make use of their skills, according to Deloitte.

4 Steps to Increase Talent IQ

Here are four ways for your organization to gain better insight into the fitness and capabilities of your most valuable asset: human capital.

 

1. Revamp sourcing and hiring activities

Recruiters need to find a balance between shooting in the dark and being set on rigid hiring criteria. Strategies need to be as fluid as the pools for current and future talent. Use modern tools like social networks and mobile apps to engage with candidates. Think about hiring for potential and culture fit instead of focusing solely on current skills.

2. Cultivate a skills marketplace

Sixty percent of companies list capability and leadership gaps among their top challenges. With a better understanding of employees' capabilities, managers can tap pools of talent with specific expertise for projects and leadership opportunities.

3. Spark performance management synergy

Real-time, ongoing employee performance recognition is far more valuable for employees than a yearly evaluation. Regular discussions between managers and direct reports help employees stay engaged — and productive. On the business side, increase transparency so that employees understand how they’re contributing to the bottom line.

4. Harness the dynamic workplace

Remote connectivity and geographically diverse teams have all but squashed the nine-to-five workday. While mobile work opportunities save some companies time and money, they require employers to create a centralized home base for employees whose schedules and locations vary.
For more insights on better understanding your employees, check out Cornerstone OnDemand’s paper, “Increase Your Talent IQ.”