The Direct Correlation between Talent Management Technologies and Revenue Growth
Technology in Talent Management is often associated with increased costs, but the benefits are overlooked. One particular key research conducted by a leading global Talent Management Solutions product organization recently discovered a direct connect between the implementation of a cloud based Human capital management software and high paced revenue growth led on by superior performance of the employees.
In most cases, the companies that started using the technology found that there was a significant increase of between 2% and 5% when modern talent management solutions were implemented as a Software as a Service model. Another important aspect that was to be noted with this kind of technology adoption was that the increase in business performance and the subsequent revenue growth of the businesses actually grew over time, incrementally.
A deeper look, however, into the deployment of such online Talent Management solutions deployment reveal that actual metrics that drive this growth and performance. These are:
- Top employees who were the best performers in the company stayed back
- People throughout the company were better aligned to the business strategy
- Employees turned out to be more engaged in their jobs and towards the company.
Employee retention is one of the biggest challenges of talent managers, and if a company can significantly reduce its employee turnover, it stands to gain significant benefits from the costs thus saved. This in turn leads a positive impact on the overall business revenue growth.
Similar to financial performance, managing enterprise talent also involves managing the multiple metrics of growth and development, which can be easily streamlined using an integrated Talent Management System. As more and more organizations use the ease and economy of cloud computing to host their centralized services and support enterprise development, the employees will be benefitted tremendously, and in turn, so will the organization. Transparency and accountability in Talent Management Strategies and Models in the enterprise are already being measured in an increasingly granular manner in organizations, and this will see a larger trend of becoming not just an added benefit, but a mainstream objective.
Internal growth of employees are one of the hallmarks of a successful organization, and certified skill upgradation are in tow with the range of benefits that technology in Talent Management brings. One of the most important ones among these being the reduced cost of hiring outside employees in managerial and decision making roles within the organization. Reduced cost of hiring results in tremendous savings which in turn enhance the profitability of the enterprise at the ground level.
Increased productivity as a result of these initiatives help in employees finding an emotional connect with their organizations, thereby resulting in employees going out of their way and beyond their normal responsibilities in ensuring that the organization succeeds in meeting the business goals. This is the primary objective of any successful Talent Management strategy and in turn, ensures that the organization meets its business goals in a far more efficient and effective manner.