Summary Report. Talent Intelligence: The Knowledge That Drives Business Success. Taleo Business Edition. All rights reserved.
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1 Summary Report Talent Intelligence: The Knowledge That Drives Business Success Taleo Business Edition. All rights reserved.
2 Today s business currency is knowledge, creating an economy in which up to 70% of an organization s value rests upon the knowledge of its employees. Yet a look at how most organizations HR technology systems order and share employee information belies this fact. Legacy technologies have created data silos that make gathering knowledge diffi cult at best. Without an integrated approach to talent data, companies cannot hope to gather the information necessary to generate the actionable insights that determine talent strategy and, therefore, business success. A McKinsey Quarterly article defi ned Business Intelligence as the ability to transform data into insights to help manage a company [it] consists of the processes, applications, and practices that support executive decision making. Knowledge Infusion then defi nes Talent Intelligence, a subset of Business Intelligence, as managing workforce data in the context of other business information, and using it to drive decisions. Talent Intelligence provides a talent management framework designed to help businesses fuel growth by improving their insight into the strengths, weaknesses and potential of their current workforces. Taleo views Talent Intelligence as the next era of talent management that will give companies an advantage otherwise unavailable in today s market by delivering insight on internal staff, best practice experiences and industry-level benchmarks. 2 Taleo Business Edition Summary Report Talent Intelligence
3 The Case for Talent Intelligence Business leaders have become increasingly aware of the importance of gaining talent insights, for a number of reasons. The growing pressure to move toward globalization increases the strategic necessity and the diffi culty of organizing and accessing employee data. A tight labor market for positions requiring key professional skills calls for a systematic way to mine the talent database. The aging workforce and concern over the Baby Boomer brain drain emphasizes the need for workforce assessment and succession planning which speaks to the need for formally identifying, developing and retaining the next generation of leaders. Talent Intelligence has also become important to HR leaders, most notably because they are the historical owners of the people issues. They are now under increased pressure to justify investments in all projects and tools, including talent management initiatives; they need the data to provide these justifi cations. For years, HR has been seen as a cost center, a necessary expenditure without any real connection to the bottom line. In order for HR professionals to show that comprehensive people strategies improve business performance and add value, they need a system that can provide talent insights and metrics. Taleo and Human Capital Institute s recent Talent Intelligence Study revealed that more than 75% of companies who took part in the study did not have access to the talent data they need to make informed business decisions. They simply did not have access to reliable data on the 10 most important data points identifi ed as key to measuring the effect of talent on business outcomes. The goal, then, is for organizations to fi nd a way to close this talent intelligence gap. Taleo Business Edition Summary Report Talent Intelligence 3
4 Challenges to Talent Intelligence Why has it been so diffi cult to obtain Talent Intelligence? Few companies have achieved the goal of transforming their data into insights because this requires the data to be timely and intuitive to access. Historically, data has had to be consolidated from multiple sources and then presented to those who need it in a format that helps them gain those insights. The challenges to Talent Intelligence include lack of access to data due to silos, lack of suffi cient data, bad data due to entry errors or interdepartmental inconsistencies, reliance on spreadsheets, and duplicate information from multiple systems across the organization. All of these challenges need to be overcome through improved processes, applications, and practices. Organizations sometimes fail to measure what really matters, as well. HR professionals have usually measured the effi ciency of their talent management strategies, such as the time to hire, HR headcount ratios, and percentage of performance reviews submitted on time. But they lack access to information to measure their effectiveness. The Talent Intelligence Survey provides examples: Although most companies measure time to hire, only 17% have access to reliable data on the quality of hire (Are they getting faster at mis-hiring?). 75% of companies have visibility into their defi ned business goals but only 21% know if they have the skills to execute their strategy (Information that would be in a competency/skills gap analysis). 40% of companies have access to employee development submission rates, but only 23% have access to reliable data on their employee development plan progress. Both effi ciency and effectiveness are important, but companies need to focus more on the effectiveness of their talent strategies and their impacts on the business strategy. 4 Taleo Business Edition Summary Report Talent Intelligence
5 There are also legal ramifi cations for poor data collection. For example, in the U.S. federal contractors and subcontractors are required by the Offi ce of Federal Contracts Compliance Programs (OFCCP) to keep detailed records to ensure that they act without discrimination when using the Internet or related electronic data technologies for recruiting and hiring. In order for the OFCCP to check for race, gender and ethnicity bias, this information must be collected by organizations. These statistics must be gathered in the same manner for all Internet applicants, but it must be clear that providing this information is voluntary and that those applicants who choose not to provide it will still be considered for the position. This information must then be stored apart from the resumes during the evaluation process. Such specifi c information can also reduce company exposure to lawsuits from candidates who feel they have been discriminated against. For organizations using spreadsheets or working within data silos, this level of compliance becomes very challenging. Additionally, a new Securities and Exchange Commission ruling in the U.S. makes good talent data a necessity rather than a luxury. The ruling requires the boards of publicly traded companies to oversee risk management; risk is defi ned as any issue that is likely to have a materially negative effect on a company. This means that HR is now required to collect talent data that addresses the company s ability to fulfi ll its business goals and meet any legal staffi ng requirements for instance, ensuring the staff-to-patient ratio at a health care facility by forecasting the need for more health aides or making sure that employees who need certifi cation are meeting their continuing education goals. Failure to maintain the needed number of properly trained employees constitutes a risk that must be reported to the board of directors. Organizations without a consistent, user-friendly and reliable means of gathering this critical Talent Intelligence face an uncertain legal and fi nancial future. Taleo Business Edition Summary Report Talent Intelligence 5
6 Talent Intelligence in Action Owensboro Medical Health System (OMHS) upgraded its recruiting and performance management functions with Taleo Recruit and Taleo Perform from Taleo Business Edition. With over 3,000 employees, OMHS is the largest employer in Western Kentucky. The organization went from using several disparate systems that didn t communicate to using the Taleo Business Edition platform, which enables them to streamline their processes and gather the Talent Intelligence they need to meet their specifi c business needs. The board of OMHS had creating cascading goals as part of a long-range plan for the organization, but Pam Oliver, who works in organizational development, was tracking those goals on a spreadsheet. She had no way to tie individual employee performance to overall organizational business goals. Now, Taleo Perform provides manager and employee visibility into how personal goals align with business unit and corporate goals and objectives. These goals can then be easily transferred into performance reviews. Taleo Perform s cloud-based interface ensures that managers, peers, and other stakeholders can provide daily feedback to each other to accelerate performance improvements. This facilitates a performance management culture, one in which Oliver is able to gain more complete insight into her workforce and to retain top talent based on performance. OMHS is currently working on its next 5-year workforce development plan and forecasting what their needs will be in the near future. We ve discovered, for instance, said Angie Dennis, the employment manager, that a third of our nurses are 50 or over. This tells us that we need to fi nd more nurses soon. Having integrated, automated solutions in place will help Oliver and Dennis to gather the Talent Intelligence to create the reports for this plan. Even if an organization is not set up today for Talent Intelligence, it s never too late to plan for it. Monica Nagasuye, who oversees People Engagement at the start-up company Encore Market Engagement, looks forward to the Talent Intelligence that her Taleo Business Edition suite will provide as she carries out the recruiting function. Encore is a sales, marketing and merchandising company that serves Fortune 500 companies and wants to fully leverage technology to achieve business goals. Nagasuye was tasked with finding talent management solutions that were cost-effective, easy to use and able to manage the high volume of hiring that the company will be doing. Taleo is easy to implement and navigate, in addition to being a great value. As she recruits, Nagasuye plans to collect information that shows her which recruiting source offers the best quality of candidates. Taleo Recruit enables her to look at all candidates and which job board they came from, and to drill down at each stage of the hiring process. She can see how far along each candidate got in the hiring process, by source. In this way, Nagasuye can look across the recruitment function to fi nd the most effective and effi cient processes for fi nding top talent and position the company for success. 6 Taleo Business Edition Summary Report Talent Intelligence
7 Talent Intelligence is the driving force of today s knowledge economy. The organization with the best understanding of its people needs, in the context of other business information and in light of its particular goals, prevails. Obtaining this critical data has historically been diffi cult due to ineffi cient processes and siloed technologies, but new systems that integrate talent data across the employee life cycle and across the organization empower companies to make strategic decisions. Talent Intelligence offers organizations insight into their most important assets their people and the processes that help to fi nd, retain and develop them. * All statistics: Taleo Research, 2010 Taleo Business Edition Summary Report Talent Intelligence 7
8 CONTACT taleo.com U.S International Customer Service ABOUT TALEO Leading organizations worldwide use Taleo on demand talent management solutions to assess, acquire, develop, and align their workforce for improved business performance. Taleo and all Taleo product and service names mentioned herein are trademarks or registered trademarks of Taleo in the United States, France, The Netherlands, U.K., Canada, Australia, and several other countries. All other product and company names mentioned herein may be the trademarks of their respective owners. Copyright 2011 Taleo Corporation. All rights reserved. No portion of this document may be reproduced in any form without the prior written permission of Taleo Corporation. TBE_0061_0311
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