Research: Integrated Talent Management - Trends and Findings

Transcription

1 Research: Integrated Talent - Trends and Findings To provide additional context for the case studies presented in this research, we asked our contributors and other organizations to reflect on their practices and processes in an online survey. Areas covered by the survey include: 1) company and initiative background, 2) budget for ITM, 3) top areas of integration, 4) drivers of integration, and 5) evaluation practices. Although the initiatives in this book cover a broad range of Integrated Talent topic areas, they are all bound by one key characteristic: business focus. Within this section, we have highlighted the most pressing Integrated Talent issues that have arisen from this handbook.

2 1. Company and Initiative Background The organizations in this book represent a range of employee populations, revenues, and industries. Figure 1 shows the different industries represented in this survey and handbook. Chemical, 3.8% Healthcare, 7.6% EducaZon, 3.8% Media, 3.8% Oil & Gas, 3.8% Hospitality, 3.8% Banking, 11.5% Workforce SoluZons/Staffing, 3.8% Mining & Maufacturing, 7.6% Professional Services, 19.2% Technology, 19.2% Figure 1: Allocation of Organizations Studied by Industry When asked about the available resources needed to integrate, 20% of organizations strongly agreed that they had access to the proper resources, while 37% somewhat agreed that their organization had the correct resources needed to implement an Integrated Talent solution. One of the key resources that identified in our research was budget. Below, in Figure 2, the average total budgets for Integrated Talent are indicated, including recruitment, talent identification, assessment, development and other HR and strategy related functions.

3 and verbal consent of Best Practice Figure Institute, 2- Percentage Inc. of Organizations Average Total Budgets for ITM Indicate <10,000 for the last item above 2. Business Diagnosis Before engaging in any change initiative, it is wise to conduct an organizational analysis. One hundred percent of the organizations surveyed knew what to focus on, based on their business objectives. They each engaged in deep dives around what processes need to be integrated, why and how. This high percentage may indicate best practice companies planning to ensure that their initiatives are targeted and successful. Organizations today operate in an ever- changing environment. Software acquisitions, new technology, and the demand for user friendly solutions create an environment that cannot be predicted. However, organizations that were seen as best practice are agile, and the business objective processes allow them to make adequate adjustments. The organizations in this handbook, as well as those surveyed, identified the factors that drove the need for integration. In Figure 3, you will see what goals led each organization down the path of integration.

4 Figure 3- Factors That Lead to Integrating Talent Strategies Improved uzlizazon of resources Alignment with Business Strategy Expected Growth CEO/Top ExecuZve Succession Need for improved ProducZvity Turnover Rates Alignment of Employee and OrganizaZon Goals Cultural TranformaZon GlobalizaZon Effects of Downturn Economy Labor Cost Efficiency When looking at the business case for Integrated Talent, best practice organizations also identified who needed to be involved in the conversations, and who would be the internal change agents that would lead the transformation. In each of the case studies, conversations around ITM involved more than just one person. Figure 4 highlights individuals and/or organizations involved in integrating talent management. In all best practice organizations, support from the top is a critical to success. Whether the HR Director or VP of Talent is heading the initiative, leadership support and alignment are important. Human Resources was listed as the number one organization for driving the process. A key reason for this might be the fact that HR is a central hub for the other talent functions. Those interviewed stressed that it is important that the different functions learn to live together. By having HR lead the initiative, organizations were able to assess the needs of all functions, not just one limb. The majority of those surveyed and those interviewed for case studies indicated the use of internal, cross- functional communication as a critical element in the implementation of integrated talent management

5 Copyright Best Practice Institute, Functions Inc. Do not Leveraged share or to distribute Drive ITM this document without prior written Other (IT Department, Training Team, CEO & Board) %9 C- Level ExecuZve 22% Human Resources 38% Director of OrganizaZon Capabillity/ Development 2% Director of Talent 9% Director of HR OperaZons (or equivlant of) 4% VP of Talent 16% 3. Design/Implementation When looking at program enablers, best practice organizations and those surveyed identified the most important elements for their software platforms. By identifying what modules were needed upfront, they were better equipped to handle the vendor selection process. Organizations were asked to choose the top five most important elements out of a list of common software modules. Below, in Figure 5, you will find a list of the elements and their importance as rated by those surveyed. Figure 5- Top Elements Needed in Software in Order of Frequency Ranking Software Element 1 Talent Development 2 Career and Competency 3 Performance and 360- Degree Review 4 Succession * Analytics and

6 Reporting* 5 Goal 6 Employee Profile 7 Recruiting 8 Talent Resource Planning 9 Learning System 10 Workforce Planning 11 Compensation 12 Onboarding * Position * Information * 13 Communication * Collaboration * 14 Headcount *same frequency When asked what systems to integrate first, organizations responded that having data sharing between the Performance, Talent Development, Career & Competency, Succession, and Analytics and Reporting are the most coveted. With access to such data, organizations will know who their talent is, where they are, and what development is required to get them to the next step. In the design and implementation of ITM, vendor selection was a process that each of our best practice organizations took on differently. This process should be handled carefully and include a strong assessment of what the business case is, and whether or not vendors can meet the desired goals. In secondary research, we have found that vendors often over promise and under deliver. However, executives state that if you are willing to be patient, you can find the right source for your integration. Vendor selection processes in this handbook include: Lunch dates with referred clients Score Sheets on the desired functions Presentations from Top 3 choices Comparison of Top Two Vendors on Criteria Usability of Internal Technology Department

7 Integration Ease with current ERP To better understand the Talent vendor space, we asked best practice organizations and survey participants to identify what systems they use and have used in the past. Our findings, in Figure 6, show that while the Talent Software industry has made great efforts to create usability and connection points, the majority of organizations are still relying on internal systems. The continued use of internally developed software may be due to the fact that cost of integrating talent management is not cheap. Also, best practice organizations indicated that supporting ITM on a global scale is possible but not an easy feat. We spoke with large organizations that identified that the ability to integrate on a global scale is possible but costly. Finding a vendor that can support a global initiative is critical. Other factors that may speak to the continued use of internal programs are ease of use, resistance to change, and integration points. Integration of data requires both the ERP and the Talent Software to connect. Figure 6 shows that the use of internal systems remains high. The survey included other Talent vendors, but they did not receive a percentage of past or current use. The shift in the provider industry has resulted in organizations using more than one vendor, in many instances. The vast majority of those surveyed and interviewed would rather rely on one ERP and one Talent Software vendor, if possible. They feel such a partnership will result in easier access to data, increase visibility of data, and help functions communicate better across the employee life cycle.

8 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Figure 6- Past and Current Use of Talent Systems Past Use Current Use 1. Support and Evaluation Over the last decade, The field of talent management has made radical inroads into how people, processes, and operations have been handled. In the case of Integrated Talent, organizations, even best practice, have found it difficult to fully evaluate their systems. The ever- changing landscape of technology creates an obstacle for this step of the process. To better assess where the industry is with its ITM initiatives, we asked organizations the following questions of where they view their organization to be in relation to ITM. Figure 7 shows the results we have gathered. Figure 7- Manager Views of ITM Progress Strongly disagree Disagree Somewhat Agree Agree Strongly Agree Has a clear DIRECTION of what we want to accomplish with our integrated talent management. 4.55% 9.09% 29.55% 27.27% 29.55% Has the COMPETENCY to successfully implement an integrated talent management system. 2.27% 11.36% 22.73% 45.45% 18.18%

9 Is given the OPPORTUNITY to integrate a talent management system. Has the RESOURCES to implement a talent management system. Has the SUPPORT of top executives to implement a talent management system. 4.65% 9.30% 34.88% 25.58% 25.58% 9.09% 15.91% 38.64% 27.27% 9.09% 6.82% 9.09% 31.82% 29.55% 22.73% REINFORCES in their actions, planning, and strategic design a commitment to our talent management system. 4.65% 11.63% 34.88% 23.26% 23.26% is MOTIVATED to implement an integrated talent management system. EVALUATES the effectiveness of their integrated talent management system. 2.27% 6.82% 31.82% 38.64% 20.45% 6.82% 13.64% 40.91% 20.45% 11.36% Table 1 shows that over 56% of organizations agreed or strongly agreed with having a clear direction of what they want to accomplish with their ITM versus while 13% disagreed or strongly disagreed. Similarly, organizations were much more likely to have the competency to successfully implement an ITM and have the support of top executives for this implementation. Finally, over 90% of the organizations were motivated to implement an ITM while fewer than 10% expressed lack of motivation. Evaluation of practices and processes is a critical step in determining ROI and value. In the case of ITM, organizations are beginning to evaluate the effectiveness of ITM (40.91%,) but have not fully committed this to practice. Only 20% of organizations feel that the truly evaluate the ITM systems in place. Over 30% of organizations feel that they are equipped to integrate talent management, yet, in our interviews, we found that the majority of organizations have not started this process. 2. Results of Integration When asked what are the top indicators of a successful ITM, organizations noted strategic, cultural and behavioral factors (Figure 8). Ranking Indicator of Successful ITM 1 Ease of Use 2 Access to Meaningful Data 3 Alignment with Business Strategy 4 Employee Engagement 5 Linkage of Strategy, Execution and Talent 6 Cultural Transformation 7 Commitment to Developing People When asked to identify unexpected results of integration, organizations indicated that other programs have stemmed from their initial ITM efforts. These programs may be due to the changes of the cultural

10 organizations experience with integration. Another contributor may be that with integration, the data becomes more readily available to all levels of executives. Figure 9 shows the results that integration has produced in best practice organizations and survey participants. Figure 9- Results of Integrating Talent High Employee Engagement Talent Referral Programs Increase of Cross FuncZonal Moves Bener Succession Planning RetenZon Programs These results may show that Integrated Talent encompasses people, processes, and operations. Each one of the results engages a different hub of talent processes. In efforts to better guide organizations towards successful integration, BPI used primary and secondary research to create a new, continual process model that allows talent management strategies to constantly evolve and revisited. 3. The Model Over 200 Talent (TM) and Corporate HR Executives worked with BPI on the development of the new model for ITM. TM Models began as structural and functional models to help organizations manage different parts of the Talent processes. Throughout the past decade, models evolved to incorporate different areas of Talent Pipeline to include Leadership Development and Succession Planning. These renditions are more inclusive but are not business strategy focused and do not show how the talent processes connect with one another. Through best practice case studies and research, it was identified that the future of the Integrated Talent model (Figure 10) is more inclusive. It encourages communications and supports the different elements of these best practice case studies. Throughout the research in this handbook and survey BPI developed a model that guides organizations to integrate and focus on the business

11 strategy. Our research shows that organizations with successful ITM communicate clearly across their talent processes. Encouraging communication of leadership and data is critical to the new ITM model. Each spoke of the wheel is connected through HR Technology. Systems and people are able to easily access one another. Figure 10- BPI 2012 Integrated Talent Model The modular approach to Talent integrates communication and assessment throughout the entire employee life cycle, and the factors that influence their life span. If compensation & benefits is not integrated with performance management, what happens to an organization s ability to recognize, reward, and motivate? Organizational design is vital to operationalizing and structurally linking each critical functional area to the company s business strategy. The outer ring incorporates design elements that allow for the system and processes to be continually assessed, implemented, and evaluated. The circle indicates that this is a continual process for organizations on the road to integration. 4. The Future of Integrated Talent Our research into Integrated Talent leaves a number of questions unanswered: How do we know it works? Have we made the most of our labor market? What are our internal customers saying? We all want proof of our efforts. While the question remains on whether an Integrated Talent approach will directly result in value, a company s lack of communication and low visibility of talent data will certainly cause the loss of key talent.

12 One thing is certain, integration of talent management will only succeed if the organization itself breaks down internal silos, embraces more open dialog, and becomes more transparent. The top team and whole system must fully believe in the need to integrate as well as fully engage themselves in the system. In order for this to occur, integration and new talent systems must be developed from the inside with the help of quality data, best practice integration, and strong systems and enablers. It must be a clear, data- driven process based on the clear direction of all stakeholders within.