There are several good reasons why HR and L&D professionals should take the time and effort to measure their learning and talent management programmes. First, it provides a snapshot of the overall impact of the current strategy and highlights areas in which it is not delivering results, so steps can be taken to improve performance. Second, the economic outlook remains uncertain, so executives are continuing to scrutinise corporate expenditure to see where savings can be made. Data that present a powerful business case for investing in learning and talent management will help managers to secure ongoing support and budget. This support is equally important to ensure senior executives and managers buy into the effective implementation of the talent management strategy. Third, ongoing measurement reflects the fact that talent management is a continuous process, not a one-off event. It provides clarity regarding the organisation's progress over time and highlights when the strategy needs to be refreshed or extended.

However, the most appropriate measure of success will vary among organisations, just as their talent management strategies will differ according to their corporate objectives. So where should HR and L&D professionals start?

Organisations could simply compare the output of the strategy against its original goals, but greater value is derived from a more detailed examination. Much will depend upon the maturity of the strategy and how long it has been established. For example, if the initiative is relatively new, then HR executives may focus on rates of adoption and the time or cost savings gained from the automation of existing processes. Adoption metrics could include the number of talent reviews completed by managers, whether every employee is using the talent management system to access their development schedule, or the number of searches for career path information. It depends whether the organisation's priorities are improving employee evaluation, fostering development-driven performance management or enabling career-pathing.

While it may always be desirable to monitor immediate financial returns, it is equally important to appreciate the added value metrics that become easier to measure over time. Once the initiative is established, the organisation will be in a better and stronger position to identify savings from increased retention rates. Alternatively, the organisation may have needed to integrate staff from a takeover process or switch to new systems or processes over the previous year, necessitating widespread training. That will have driven the talent and development agenda, so HR and L&D professionals will wish to examine levels of employee effectiveness in order to show improvement over the previous year. 

In terms of a succession planning strategy, long term analysis can help quantify the level of benefit to the organisation. For example, out of the pools of employees who have been identified and developed to be potential successors in key mission-critical roles, how many of them were placed in those roles and saved the organisation from having to recruit externally? Were additional training and development opportunities helpful in preparing these employees for the task at hand? Eventually, it becomes possible to measure more complex criteria, such as addressing the impact on company profitability or innovation. For example, how does the improved utilisation of talent increase the development of new products and services, or impact on cost savings and income?

It is important to recognise the point at which the impact made is significant. For instance, when building bench strength, not every potential successor will move into the specified role, so it is important to consider success from a flexible point of view. 

For the unsuccessful candidates, has the training and development they have received helped them to develop the competencies they need to help the business and perform in their existing job role? Gaining such sophisticated, strategic levels of insight is made easier through the use of technology. A talent management platform that provides both flexible and accurate data can be used to track any relevant metrics, providing overarching reporting as well as any ad hoc analysis that is useful to the HR team, senior executives and line managers. Organisations increasingly adopt systems integrating learning and talent management, where the impact of learning budgets and initiatives on talent management can be more tightly aligned, managed and measured.

An increasing number of organisations are adopting holistic talent management programmes, but they need to adopt a similar level of maturity to evaluating the benefit. If HR and L&D professionals track those strategic business indicators that have a material impact – such as cost savings, retention, compliance and talent readiness - it is possible to prove that talent management leads to better business results. What's more, this analysis can help focus the training and development budget on the core priorities of the business – leading to further improved commercial results.

Vincent Belliveau is Cornerstone OnDemand's general manager of Europe, Middle East and Africa (EMEA). Prior to joining Cornerstone OnDemand, Belliveau served as the North East Europe Director of IBM's Master Data Management (MDM) and Information Integration Solutions. Cornerstone OnDemand is a leader in on-demand, integrated learning and talent management software and services. For further information please visit http://www.cornerstoneondemand.co.uk or email info_UK@cornerstoneondemand.com