There is correlation and causation. Causation implies a direct effect. But because the contributing factors in a lot of situations include many possible variables, definitive causations are rare when analyzing complex business processes.
Correlation is defined as: A general term used to describe the fact that two (or more) variables are related. Although every variable may not be accounted for, correlations provide insightful conclusions by isolating factors and analyzing their relationship and impact.
In talent management, two new studies present important correlations that validate the importance of”and the results attainable from”implementing effective talent management strategies and practices.
The 2009 Talent Management Factbook report from Bersin & Associates”conducted in partnership with Human Resources Executive magazine”found that:
Companies with highly effective talent management strategies see benefits that translate into significant dollars and business impact. These companies:
Reported 26% higher revenue per employee
Were 28% less likely to have experienced a major layoff in 2008-2009
Had 40% lower turnover among high performers and 17% lower overall voluntary turnover
Were 92% more likely to effectively respond to changing economic conditions
And according to GreatPlaceJobs Q2 Employment Study: Great Workplaces Continue to Outperform and Weather the Recession Better:
The study shows that the nations largest companies conducted layoffs at a rate of almost twice that of a group of companies recognized as great workplaces. Only 44% of excellent employers laid off workers from the beginning of 2008, while a shocking 86% of the Fortune 100 companies have laid off employees in the past year and a half.
These research studies provide more evidence to spur action on implementing and optimizing talent management practices in any organization looking to gain competitive advantage today.
