Making the Business case for an Integrated Talent Management Strategy

Transcription

1 Making the Business case for an Integrated Talent Management Strategy Lisa Rowan Program Director, HR, Learning, and Talent Strategies Research Copyright 2008 IDC. Reproduction is forbidden unless authorized. All rights reserved.

2 Agenda What is talent management? Background on the macroeconomic situation and what we can expect in the future Why an overall talent management strategy is so important The benefits and value of creating an integrated approach How the various talent functions rely upon one another Assessing your organization s talent management maturity and getting started 2008 IDC Jul-10 2

3 Talent Management Value Cycle Succession Planning Reward and Retain Compensation Recruiting Attract Workforce Performance Management Contingent Staffing Assessment Learning and Development Competency Management Source: IDC, 2010 Develop 2008 IDC Jul-10 3

4 Workforce Imperative: Situation 2008 IDC Jul-10 4

5 Rise & fall in US Employment Always cyclical, past shows small declines with big rebounds Will recent large decline have smaller rebound? 2008 IDC Jul-10 5

6 Talent Initiatives - Importance For each of the following talent initiatives, please indicate the level of IMPORTANCE of each to your organization Recruiting - attracting top talent 3.9 Very Important Aligning corporate goals with group and individual goals 3.8 Performance management 3.8 Compensation planning and pay-for-performance 3.7 Leadership development 3.5 Employee development 3.2 Workforce planning 3.2 Reducing turnover 3.2 Succession planning Less Important Least Important Source: IDC's CMO Survey, IDC Jul-10 6

7 U.S. Workforce State of Mind Over 50% are willing or looking to move Have plans to leave 3% Actively looking 9% Plan to retire 7% No plans to leave 44% Not looking but open 37% Source: Tower Watson 2010 Global Workforce Study U.S IDC Jul-10 7

8 Workforce of the Future my Hypothesis Permanent on-premise Home-based Permanent on-premise Home-based Contingent Freelance Contingent Freelance 2008 IDC Jul-10 8

9 More Things for HR to Consider Patient Protection and Affordable Care Act (PPAC) of 2010 Ledbetter Fair Pay FMLA Mental health parity COBRA subsidies Ad infinitum Points to likelihood of more contingent talent fewer legs and regs 100,000s of new contingent jobs opened in last few months Caveat emptor - Obama recently proposed a $25 million DOL Misclassification Initiative, targeting the misclassification of employees as independent contractors 2008 IDC Jul-10 9

10 Innovative Programs? Lehn and Fink Products, makers of Lysol Predicting success: Developed general managers from college recruits by selecting on predictors of general leadership ability and 6-month rotations Curtis Lighting, Chicago New hire job rotations: Rotated new hires through each of the company's 10 departments and receive a modular program of 100 classes led by the department heads on aspects of their business. The Public Service Company of Northern Illinois Leadership selection: High-potential program identified employees with demonstrated aptitude for senior-management positions and was open to every employee, including line workers. The criteria for selection included performance on the current job and evidence of leadership behavior. Source: Peter Capelli 2008 IDC Jul-10 10

11 Innovation in Talent Practices? Forced-ranking systems U.S. Army during WWII 360º feedback systems U.S. Navy during WWII Assessment centers OSS (precursor to CIA) used in-basket tests to simulate intelligence tasks Job Rotation & Workforce planning Virtually every large company had rotational assignments and a dedicated manpower planning department in the 1950s Source: Peter Capelli 2008 IDC Jul-10 11

12 Marketing Functions View of HR Involvement in Talent Management Source: IDC's CMO Survey, IDC Jul-10 12

13 All of this points to opportunity: Making the case for integrated talent management 2008 IDC Jul-10 13

14 Different Focal Points for Integration Learning at Hub Compensation Recruiting Onboarding Baseline Learning (Develop) Performance Assess Prescribe Strong Bi-directional Linkages Career and Succession Assess Source: IDC, IDC Jul-10 14

15 Learning/Development Integration Use Cases Prescribe remediation for areas of weakness Highlight and grow on strengths Keep tabs on skills and competencies to identify pockets of expertise Integral information to help position for succession plans Recruiting feeds initial competency list 2008 IDC Jul-10 15

16 Different Focal Points for Integration Recruiting at Hub Compensation Benchmarks Offers Learning Onboarding Baseline Recruiting (Attract) Performance Feedback loop Quality Strong Bi-directional Linkages Career and Succession Baseline Source: IDC, IDC Jul-10 16

17 Recruiting Integration Use Cases Expose open position search to both internal and external candidates Provide a talent success profile with which to seek the right candidates in the future Determine a quality of hire metric that is truly performance based Build succession scenarios that compare internal and external resources 2008 IDC Jul-10 17

18 Different Focal Points for Integration Performance at Hub Compensation Distinguish rewards for top performers Multiple Strong Linkages Performance (Reward and Retain) Recruiting Attributes of high achievers Learning Measure Prescribe Career and Succession Identify and develop Source: IDC, 2010 Develop 2008 IDC Jul-10 18

19 Performance Management Integration Use Cases Work with compensation to set and monitor salaries and incentives that are performance-based With career and succession to help identify the path for the individual and identify future leaders With recruiting to provide it with an initial talent profile with which to seek the right candidates From and with recruiting to determine a quality of hire metric that is truly performance-based 2008 IDC Jul-10 19

20 Getting Started 2008 IDC Jul-10 20

21 Determine Your Organization s Barriers to Integrating Talent Management Lack of consensus across silos Lack of management buy-in Complexity of undertaking Inability to justify expenditure Other Don't see the importance Source: IDC, % 5% 10% 15% 20% 25% 30% 35% 40% 2008 IDC Jul-10 21

22 Talent Self-evaluation Determine your points of talent pain Overly complex processes Lack of leadership succession High turnover Determine your organization s talent culture Environment of continuous learning? Regular and vigorous recruiting requirements? Need to pay for performance? Determine your organization s level of talent maturity Current integration of talent functions and processes (as well as inclination to integrate) Ability to adapt to change Close look at what is in use today and readiness to change 2008 IDC Jul-10 22

23 Determine Your Talent Management Maturity Paper-based No integration Occasional Office-tools No integration Annual appraisal Web-based LMS and ATS All others still Office-based No integration Annual appraisal Stage 3 Web-based LMS, ATS, performance, & compensation Some integration Still annual Stage 4 Web-based talent suite Fully integrated Ongoing regular dialogue Stage 5 Stage 2 Stage 1 Source: IDC, IDC Jul-10 23

24 Steps Going Forward Determine your organization's talent management quotient and assess the top barriers Bring together various silo owners Discuss your unique talent challenges and quantify what remediation means, e.g improvement in turnover, stronger skill set In IT, increase in goal achievement, et al. Conduct line manager interviews to get their take and top priorities. Examine technology in use today, how is it helping/hurting, what has to stay and what could change Think about how you might redesign talent processes for maximum benefit. Don t forget WIIFM for managers and employees! Refine your list of must-haves 2008 IDC Jul-10 24

25 Questions? Compensation Performance Recruiting me at Follow me on twitter: lisarowan Learning Career & Succession 2008 IDC Jul-10 25