This week’s blog focuses on the need for professional services organizations to focus on talent management to grow their topline. Read further to know how high performing professional services organizations have differentiated themselves in the area of talent management.
Professional services organizations need to focus on talent management across the following key areas: recruitment, development and retention.
SAP performance analysis shows that improved talent management has a big impact on the top line for professional services organizations. Professional services organizations with higher employee engagement and lower turnover have been found to have 114% and 78% higher revenue per employee respectively1. Benchmarking reveals that the best professional services organizations excel in two key ways: (i) Preparing talent maps to support organizational strategy and (ii) Enabling real-time visibility and collaboration across the talent supply chain.
These capabilities have allowed professional services organizations to improve talent supply and development.2
With these strong data, there clearly is a strong business case for talent supply and development. The following benchmarks, however, uncovered that most professional services organizations are quite unprepared about their talent management:
In summary, better talent management has a correlation with higher topline. Many professional services organizations are yet to implement talent management best practices. There is a case for increase in focus and resource allocation to the area of talent management for these professional services organizations.
Watch a video of how managers can now confidently assess, coach, and rate their employees on a weekly basis in this professional services organization.
Footnotes:
[1] Based in professional services benchmarking data 2014
[2] Based on performance gap between the top 25% and average professional services organizations as shown in 2014 human capital management benchmark studies by SAP
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Note to readers: SAP’s Performance Benchmarking program is a strategic service sponsored by its Industry Value Engineering organization. Launched in 2004 together with ASUG as a forum to exchange metrics and best practices, the program today has grown into one of the largest such global programs in the industry – with more than 15,000 participants from over 4,000 companies and with studies available in 12 languages. Participants receive – free of charge – customized and confidential benchmarking comparisons against industry peers, as well as aggregate analyses. To participate in the SAP benchmarking program, visit https://valuemanagement.sap.com.