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Global Integration of People Systems Delivers More to Your Bottom Line
Submitted by Derek Irvine on March 13th, 2011
Recognize This: Global integration of talent systems delivers 38% more Return on Equity (ROE).
Why should you care if your talent management systems and programs align with your company values and strategic objectives? Simple – you’ll see a much higher return on equity (ROE).
Ernst & Young reported in the January 2011 issue of Workspan Magazine (“Think Global, Act Global,” membership required):
“Companies that aligned their talent management programs with their business strategy enjoyed a 20% higher annual return on equity (ROE) over a five year period than those that did not. Returns were even more dramatic among those companies that integrated talent management programs, processes, and IT systems/processes on a global scale. These companies experienced an ROE over five years that was 38% better than those that did not.”
That’s precisely why we strongly advocate in our strategic employee recognition programs that customers:
- Align business objectives and company values with reasons for recognition to make these come alive in the daily work of employees
- Launch their programs to ALL employees in ALL global locations simultaneously, both to prevent any employees from feeling like “second-class citizens” if they’re not included in the initial launch, and to ensure program consistency on a global scale
- Integrate recognition with performance management systems
Not only will you gain a much more complete and accurate understanding of how well your employees know and contribute to strategic objectives, you’ll also dramatically increase your return on equity.
Not a bad reason to go global and go integrated.
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