Most Companies Surveyed Believe their Talent Management is on par with, or better than, their Competitors, Yet Less than Half Actually Measure Results against Peers

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ROSELAND, New Jersey and LAS VEGAS, Nevada -- October 4, 2011 -- ADP®, a leading provider of human resources outsourcing, payroll services, benefits administration and integrated computing solutions for vehicle dealers, today released a new study suggesting that companies may be overestimating the effectiveness of their Talent Management programs and strategies. The findings of the study, conducted by the ADP Research Institute and entitled "Talent Management 2011: Perceptions and Realities," were released in conjunction with the 14th Annual HR Technology® Conference in Las Vegas, Nevada.

Surveying HR decision-makers at 602 large U.S. enterprises with 500 or more employees in August 2011, the ADPRI found that while 75 percent think that their companies are on par with, or better than, their peers in terms of Talent Management maturity, only 46 percent actually benchmark their Key Performance Indicators (KPIs) against their peers.  This suggests a potential disconnect between perception and reality among companies that consider themselves high performers in Talent Management but do not benchmark the effectiveness of those strategies against other companies.  The study also found that while almost all companies (95 percent) use KPIs to measure success internally, fewer than a third of the respondents rate their use of KPIs as "best in class" or "ahead of industry peers."

"Organizations that don't measure and benchmark their Talent Management strategies have a far less solid basis for judging the overall effectiveness and success of those strategies than those who do," explains Tony Marzulli, Vice President, Product Management, ADP Talent Management Solutions. "Our study found that a majority of companies rate themselves high in Talent Management effectiveness, but very few are actually benchmarking their performance against peers and don't have the data to support that assessment. Until those issues are adequately addressed, and organizations achieve visibility into their Talent Management processes, they will struggle to effectively measure their success against their own history and how they compare to their peers."

According to the study, nearly half of the companies surveyed (42 percent) do not have a formal Talent Management strategy in place, and only 38 percent have a strategy that addresses all five key areas of Talent Management (development/learning; performance management; recruitment; compensation management; and succession planning).  Since 75 percent of respondents feel their strategies are on par with or above their peers, this suggests that most HR decision-makers believe that having a Talent management strategy that does not address all five areas is acceptable.

To download a free copy of the full "Talent Management 2011: Perceptions and Realities" study, please visit  HR Technology Conference attendees can also request a copy at the ADP booth (#409).

About the ADP Research Institute

The ADP Research Institute is a specialized group within ADP that conducts studies on current topics of interest to Human Resources and Payroll professionals.

About ADP

Automatic Data Processing, Inc. (NASDAQ: ADP), with about $10 billion in revenues and approximately 570,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging over 60 years of experience, ADP offers a wide range of human resource, payroll, tax and benefits administration solutions from a single source. ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at


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