Strategic Workforce Retention & Development Talent Management in Turbulent Times.
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1 Strategic Workforce Retention & Development Talent Management in Turbulent Times
2 We have a Dismal Record 80% of the workforce is in some stage of disengagement from their work
3 We have a Dismal Record Only 4% of the workforce is in a role that draws from their strengths most of the time
4 We have a Dismal Record 94% of senior HR Professionals surveyed assert that their current workforce is unprepared to deliver on company goals and meet business challenges
5 Funny Thing The issues and challenges facing HR Managers haven t changed much in over half a century
6 Funny Thing Neither has the hiring process
7 Strategic Workforce Retention & Development Talent Management in Turbulent Times Agenda Three Bold Statements Strategic Workforce Development Harnessing the Chain Reaction
8 Strategic Workforce Retention & Development Talent Management in Turbulent Times Agenda Three Bold Statements Strategic Workforce Development Harnessing the Chain Reaction
9 Three Bold Statements. We ve been measuring the wrong things. (and actually perpetuating our problem in the process) 2. We have to learn to fish where the fish are. (they re not where Grandpa used to find them) 3. Résumés are dead. (sorry, but they are)
10 Our First Bold Statement:. We ve Been Measuring the Wrong Things
11 Talent Management: Measuring what Matters Leading Indicators Fit with Manager Fit with the Job Turnover Yield Customer Satisfaction Fit with the Team Fit with Company ROI Trailing Indicator Headcount Waste Earnings Cost ENGAGEMENT Trailing Indicator Profit Sales EBITDA Productivity
12 Where to Begin? Gather the right data Learn as you go Make the necessary adjustments Engage the Knowledge Chain Reaction
13 Our Second Bold Statement: 2. We Have to Learn to Fish Where the Fish Are
14 The game has changed What is your attraction strategy? How many attraction strategies do you have?
15 Do you think they read Ads? Yeah, Right!
16 So Where do they get their Info? Web 2.0 plus
17 The Prize for most innovative idea...
18 Web Presence is Crucial! If they can t find you online They won t find You.
19 Everyone is Do in It! 50% of Canadians Average of 40 friends Business/professional 2x / 3 months 73% of all Canadians over 8 9% - Income over $95,000 47% - Income under $24,000
20 Where are Yesterday s Classifieds Today? Over 2M unique visitors every month Over 9B page views/month 30M unique visitors 9th place overall in N.A. Over 2M new job listings/month
21 You have to Give to Get When you build your employment brand in Social Networks and online communities, you Reach people you ve never met before Expand the reach of your brand Become part of the conversation
22 Our Final Bold Statement: 3. Résumés are Dead
23 Attracting the Right Pool of Talent it s more important than ever before to do the unconventional
24 Whom are you Reaching? Active Those actively seeking new opportunities? Passive The minority who are fully engaged? Poised The majority who are moderately disengaged but not looking?
25 Why Target the Poised? Typically better performers Typically more loyal Typically have better relationships at work but they typically don t read the job ads or have a current résumé.
26 Three Bold Statements. We ve been measuring the wrong things. We need to learn to lead with Fit and Quality Measures 2. We have to learn to fish where the fish are. Building relationships online is crucial to attraction 3. Résumés are dead. They block your access to talent and fit
27 Strategic Workforce Retention & Development Talent Management in Turbulent Times Agenda Three Bold Statements Strategic Workforce Development Harnessing the Chain Reaction
28 Strategic Workforce Development. Environmental Scan 2. Current approaches to Workforce Planning 3. Integrating Fit into our HR Processes
29 Environmental Scan In North America we are going to have more jobs than we will have people to fill them.
30 Environmental Scan Expected Labor Force and Labor Force Demand Millions of People The Lines Are Crossing: A Growing Shortage of Workers Labor Needed Labor Available Source: 30 Employment Policy Foundation analysis and projections of Census/BLS and BEA data
31 Environmental Scan The population is aging significantly Growth in the working age population has declined
32 In 2000, A Fairly Young World... Under 5% 5% to 2.4% 2.5% to 20% Above 20% Percent of Population Age Source: U.S. Census Bureau
33 ... Rapidly Aging by 2025 Under 5% 5% to 2.4% 2.5% to 20% Above 20% Percent of Population Age Source: U.S. Census Bureau
34 Screeching to a Halt Growth in the Working-Age Population 200% 50% % 50% 0% -50% Mexico Brazil India China South Australia Canada US Netherlands Spain France UK Russia Italy Japan Germany Korea Source: Deloitte Research/UN Population Division ( It s 2008: Do You Know Where Your Talent Is? Why Acquisition and Retention Strategies Don t Work, p.6
35 Workforce Challenges There are also Generation Gap issues that challenge your employees ability to work together effectively
36 Relationships are Broken Research indicates that 85% of employees leave their job due to conflicts in the supervisoremployee relationship. Executives were found to spend a minimum of one month per year dealing with personality conflicts Source: Robert Half International
37 Lack of depth is crippling Average time on the job for people under 35 is less than 3 years 75%-85% of workers (under 35) expect to be employed by a new company within 2 months /3 of all people under 35 are in their first year of employment with their employer
38 The Case for Strategic Workforce Planning These statistics are not isolated or temporary this is the new normal Riding it out is not an option the spoils will go to those who act Let s look at a framework for Strategic Workforce Planning
39 Basic Strategic Workforce Planning Matrix MEASURE RESULTS (ROI) IDENTIFY (Scan the Environment) What do you have? What do you need? Now & Future ATTRACT/ACQUIRE RETENTION YOUR COMPANY DEVELOP How, Where, Who TRACKING LEADERSHIP PIPELINE (Bench Strength) ENGAGE
40 Workforce Development Framework. Understanding employee fit /compatibility in current job 5. Optimizing their leadership skills Employee 2. Understanding motivation and stress/conflict behaviors and adapting to change 4. Optimizing relationship with their work teams 3. Optimizing working relationship with their direct supervisor
41 Workforce Planning Methodology Begin with taking a current Inventory : Using an Excel type spreadsheet, compile some information on your total employee base: Include name, position (job title), Mission critical/not, length of service, current age, department
42 Workforce Planning Methodology Other information could include: Senior Management/ Management/Supervisory? Exempt, non-exempt? Training and certificates Positions Held Promotable or not? Any other useful information
43 Workforce Planning Methodology Factor in Performance History: = Top, Solid Performer 2 = Good on the job 3 = Improvement in performance would be helpful 4 = Marginal performance
44 Workforce Planning Methodology What could this kind of information be used for? Things like: Proportion of workforce over 60 Bench strength (succession planning) Distribution of performance Scan across departments, managers Many other applications
45 A Different View of Performance Poor Producers Bottom 6% Average Producers Middle 68% Superior Producers Top 6%
46 Why does this matter? Unskilled / Semi-skilled Average workers output = 9% more than Non-producers Superior workers output = 9% more than Average Superior workers output = 38% more than Non-producers Skilled Average workers output = 32% more than Non-producers Superior workers output = 32% more than Average Superior workers output = 64% more than Non-producers Management / Professional Average workers output = 48% more than Non-producers Superior workers output = 48% more than Average Superior workers output = 96% more than Non-producers Source: The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings Psychological Bulletin, Sept 998, Vol. 24, No. 2, pp
47 Imagine yours is a small company with 50 Unskilled / Semi-skilled Workers 25 Skilled Workers 0 Managers
48 Cost of Average vs. Superior Performers Average Salary? Your cost per Average # in this category Your cost if all in this category average Unskilled $20,000 X 0.9 = $3, $90,000 X = (i) Skilled $40,000 X 0.32 = $2,800 X 25 = $320,000 (ii) Manage t $60,000 X 0.48 = $28,000 X 0 = $280,000 (iii) Total Exposure if all average (total i + ii + iii) = $790,000 (iv) Percentage of salary investment at risk = 30%
49 Fit as a Prerequisite of Performance. Understanding employee fit /compatibility in current job 5. Optimizing their leadership skills Employee 2. Understanding motivation and stress/conflict behaviors and adapting to change 4. Optimizing relationship with their work teams 3. Optimizing working relationship with their direct supervisor
50 Working from Fit changes everything Placing your hiring process online and basing your systems on data about the four key aspects of fit changes How you Interview How you Assess Candidates, and How you manage your Talent it even changes the things that make you twitch!
51 Changing how you Interview In the first interview, the candidate is in the driver s seat like never before They choose the time and place They choose the job(s) they wish They decide to continue in the process or not
52 Changing how you Interview For your part, interviewing for fit means learning some new tricks Written and oral different pathways, different information Tertiary interview questions Understanding the Big Three factors that distinguish top performers from the rest How they learn How they accept responsibility How they use their sense of humour
53 Changing how you Interview Beliefs Results Attitudes Behaviors
54 Changing how you Interview WHAT Factors Experience Credentials Education Accomplishments Performance HOW Factors Relationships Teaming Approach to work Communication Problem Solving Respect Engaging Others Listening Humour Diffusing Conflict Candidate WHO Factors Attitudes Experiences Values Learning Style Beliefs Thinking Style Paradigms Motivators Filters Fears
55 Interviewing for what matters Attitudes drive the behaviors which drive outcomes. We unearth candidate attitudes: Towards styles of supervision Towards types of work Towards types of customers and coworkers Towards integrity, reliability, work ethic
56 Assessing for Fit In looking at any range of performance, what could explain why you have some top performers and some marginal performers? The main variables of performance relate to fit (remember Engagement and ROI)
57 Assessing for Fit Understanding distortion is critical Must measure what matters Highlight differences between top performers and others Must allow easy contrasting of individual to role/others No such thing as pass/fail Toolbox must cover all four aspects of fit
58 Profile XT Window to who the person is core aspects of hardwiring that do not change appreciably over time It is a Normative tool Suitable from pre-hire through termination Covers Fit with Job, Manager and Team Full suite of reports Placement Coaching Career Planning/Succession Planning
59 Thinking Style Occupational Interests Behavioral Traits Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning Enterprising Financial/Admin People Service Technical Mechanical Creative Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment Profile XT
60 PXT Job Summary Graph One-page graphical summary of candidate vs. position All critical information For experienced users Useful in multicandidate reviews Quick overview of current staff
61 PXT Succession Planning Report One candidate vs. multiple positions Percentage match For succession planning, promotion, career planning uses
62 Layering in Style Window to how the person is acting aspects of personality that do reflect the environment Not for pre-hire best for understanding relationships with Manager and Team Measures: Productivity Quality of Work Initiative Teamwork Problem Solving Ability to Change
63 Profiles Performance Indicator Yields critical information: Response to job related stress and conflict Reviews whether an individual tends to be self-motivated or requires external motivation
64 Aspects of Culture Fit Step One Survey: Prehire tool only Measures attitudes towards Integrity, Reliability, Work Ethic and Substance Abuse Generates scores and personalized interview guide Helps you understand who you are attracting and keeping
65 Aspects of Culture Fit Customer Service Profile: Checks alignment in current culture and in new hires Measures attitudes towards key aspects of customer service philosophies Five different industry-specific versions Generates training plan for each individual and for the organization
66 Growing your Leaders One of the early questions was are your mission critical positions secure? In other words, How s your Leadership Pipeline? One of the best processes for Leadership Development is 360 degree feedback but only if it s done right! Fosters continuous improvement to make today s leaders better and to prepare the leaders of tomorrow
67 Gap Analysis
68 Leadership 360 Process Individual Development Plan is developed After a time frame, another Checkpoint is done, improvement noted, and new objectives established Organizational Management Analysis creates an Organizational Development Plan and a summary of training needs
69 Review A careful approach to Workforce Planning will yield: Improved Retention Improved Productivity Higher Engagement Reduced Turnover Greater Working Synergy INCREASED PROFITS
70 Review Investing in taking an inventory and building a plan will give you one of the most significant returns on investment that you can make today Engaged people will always compensate for flawed processes and adapt to carry your business through difficult times no process will ever compensate for disengaged people!
71 Strategic Workforce Retention & Development Talent Management in Turbulent Times Agenda Three Bold Statements Strategic Workforce Development Harnessing the Chain Reaction
72 The Knowledge Chain Reaction () Know how to attract better candidates Learn what s working (and not) with your current hiring process Uncover where your best candidates are coming from Understand how to attract the right talent
73 The Knowledge Chain Reaction (2) Know who you re hiring Start measuring what matters who the candidate really is and how they will perform in the job Collect more relevant information about candidates before they come in for an interview Make it easier for managers to make better hiring decisions
74 The Knowledge Chain Reaction (3) Know what makes a good fit Discover why some people fit and others don t Begin selecting all candidates based on fit Learn how to best support new employees and set them up for success
75 The Knowledge Chain Reaction (4) Know how to engage your existing people Apply what you ve learned about fit to existing employees Begin matching each employee with the right job and the right team Become better equipped to address the underlying issues impacting performance
76 The Knowledge Chain Reaction (5) Know how to create the right culture for success Create a more engaged workforce focused on helping you achieve your business objectives Learn to harness employee strengths so you can increase organizational capacity Turn your people into a competitive advantage
77 Summary Three Bold Statements Measure what matters You need to fish where the fish are Résumés are dead Strategic Workforce Planning Weathering the storm is not a strategy Taking inventory and building a plan is not hard Fit gives you the critical handles to secure consistently superior results Harnessing the Chain Reaction
78 Thank You! For further information, or to receive a copy of this presentation, please contact us HiringSmart (800) info@hiringsmart.ca
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