"Champions insist that you keep score. If you understand that concept, you shouldn’t be surprised that one of the best ways to separate champion recruiters from weak ones is to bring up the topic of assessing individual recruiter performance."
Quote from the website: "HCMI has identified a handful of human capital metrics that actually predict financial and stock performance better than traditional financial metrics. These results remain consistent across industries and over multiple periods of economic change. Unbelievable? It is actually more shocking that these metrics are not leveraged by the investment community, and companies are not required to report them."
The EU recently published its plans to widen bonus caps for banks, but despite the hype that this will lead to loss of staff and competitive advantage, banks have already begun to make positive preparations for these changes.
Interesting take on moving away from bonuses and need of HR Analytics in HR Magazine. The writer of the article says it "requires a complex way of measuring performance - metrics that for many companies don't currently exist. (..) Without HR analytics, measurement becomes a subjective "finger in the air" exercise based on networking and relationships within the company rather than on performance."
Excellent article on ERE.net (written by John Sullivan) discussing two studies that provide valuable and practical lessons for HR and Talent Management. The first study “revealed that the top 5 percent of the workforce at the researched firms produced 26 percent of the firm’s total output.” This high ROI rate has consequences for HR: “Top performers need to be prioritized.”
The second study fits with the former one. This study shows that “a referral from a top performer who is hired will produce nearly three times more profit impact (+90%) for the firm compared to the referred worker from a below average performer.” Some consequences for HR: Measure quality of hire and identify high-quality referrers.