In a 2012 survey conducted by Arberdeen Research on nearly 300 companies, a staggering 70% of HR and business respondents felt that the top most important skill for the HR leader of the future was to connect HR initiatives with business priorities. Other skills such as "understanding the organization's industry and customers" were the next frequently cited ones. In other words, the business needs HR to understand how value is created. As organizations struggle to make sure that they stay ahead of the competition, can HR also play a strategic role beyond "just hiring someone" to provide direction, data and insight to help organizations develop? Read about how the top performers or "Best-in-Class" organizations are trying to build value in their HR and follow the mantra that "getting talent right is getting business right"!

1. FEATURED Human
Capital
Management
RESEARCH Trends
Managing
Talent
to
Lead
Organizational
Growth
REPORT
2012
www.profiles.com.sg

3. BEST IN CLASS
COMPANIES
81% Employee as “Highly Engaged”
71% of Key Positions Have a Ready
Successor
13% Year-Over-Year in Hiring Manager
Satisfaction

4. Human Capital Management Trends
2012
Managing Talent to Lead Organizational Growth
January 2012
Mollie Lombardi, Madeline Laurano

5. Getting the Talent
Right is
Getting Business
Right

6. KEY STRATEGIES
OF BEST-IN-CLASS
COMPANIES
300 ORGANIZATIONS
NOVEMBER -DECEMBER 2011

7. FAST FACTS > >

8. HOW STRATEGIC is HR?
SCALE
1 5
Reactive Pro-active
Tactical Strategic
Not Aligned to the Business Aligned to the Business

9. STRATEGIC
VALUE OF
HR
Ye
5 a
r-O
4.2 De ve
3.4 cl r-Y
2.6 in e
e a r
1.8
1
2008 2009 2010 2011
Trend Score

10. What is the
most
important
skill for the
HR leader of
?
the future

11. 30%
70%
according to
over 70%
of both HR and line of business

12. The ability to
connect
HR initiatives to
Business.
How i wish you could
speak business to me.....

13. Organizations with critical
roles identified has...
2x CUSTOMER RETENTION
3x CUSTOMER SATISFACTION

14. BEST-IN-CLASS
COMPANIES ARE
2X
more likely to provide managers
with access to relevant
TALENT DATA compared to
laggard companies

15. Organizations using
assessments saw,
on average:
28% Higher Job Satisfaction
28% Higher Engagement
2X Cost Per Hire Improvement
64% Better Quality of Hire
10X Greater Goal Achievement

16. Human Capital Management Trends 2012: Managing Talent to Lead
Organizational Growth
Page 3
Table of Contents
Executive Summary....................................................................................................... 2
Best-in-Class Performance ..................................................................................... 2
Competitive Maturity Assessment ....................................................................... 2
Required Actions...................................................................................................... 2
Chapter One: Benchmarking the Best-in-Class .................................................... 4
Business Context ..................................................................................................... 4
The New Normal..................................................................................................... 4
The Maturity Class Framework ............................................................................ 6
The Best-in-Class PACE Model ............................................................................ 7
Best-in-Class Strategies........................................................................................... 8
Chapter Two: Benchmarking Requirements for Success ................................. 13
Competitive Assessment...................................................................................... 14
Capabilities and Enablers ...................................................................................... 15
Chapter Three: Required Actions ......................................................................... 21
Laggard Steps to Success ...................................................................................... 21
Industry Average Steps to Success .................................................................... 21
Best-in-Class Steps to Success ............................................................................ 22
Appendix A: Research Methodology..................................................................... 23
Appendix B: Related Aberdeen Research ............................................................ 25
Figures
Figure 1: Pressures Driving HCM Efforts in 2012 ................................................. 5
Figure 2: Barriers to Investment of Time / Effort in HCM .................................. 6
Figure 3: Best-in-Class Strategic Actions ................................................................. 9
Figure 4: Business Impact of Best-in-Class HCM ................................................. 10
Figure 5: Can Talent Impact on Business Metrics be Measured ...................... 11
Figure 6: Impact of Identifying Critical Roles ........................................................ 16
Figure 7: Talent Management Data Accessible to Managers ............................ 17
Figure 8: Most Important Metrics ........................................................................... 18
Figure 9: Critical HCM Elements to Executing Business Strategy ................... 20
Figure 10: Critical HCM Elements to Executing Business Strategy ................. 20
Tables
Table 1: Top Performers Earn Best-in-Class Status.............................................. 7
Table 2: The Best-in-Class PACE Framework ....................................................... 8
Table 3: Strategic Value of HR ................................................................................. 11
Table 4: The Competitive Framework................................................................... 14
Table 5: The PACE Framework Key ...................................................................... 24
Table 6: The Competitive Framework Key .......................................................... 24
Table 7: The Relationship Between PACE and the Competitive Framework
......................................................................................................................................... 24
© 2011 Aberdeen Group. Telephone: 617 854 5200

17. Human Capital Management Trends 2012: Managing Talent to Lead
Organizational Growth
Page 11
Figure 3: Best-in-Class Strategic Actions
Human Capital Management Trends 2012: Managing Talent to Lead
Aberdeen Insights — Strategy Organizational Growth
Page 14
Table 3: Strategic Value of HR
2008 2009 2010 2011
All Respondents 3.31 3.23 3.05 2.94 Competitive Assessment
Best-in-Class 3.62 3.71 3.43 3.53 Aberdeen Group analyzed the aggregated metrics of surveyed companies to
Laggard 2.89 2.74 2.83 2.51 determine whether their performance ranked as Best-in-Class, Industry
Average, or Laggard. In addition to having common performance levels, each
HR 3.40 3.28 3.16 3.12 class also shared characteristics in five key categories: (1) process (the
Business 3.22 3.17 2.71 2.58 approaches they take to execute daily operations); (2) organization
(corporate focus and collaboration among stakeholders); (3) knowledge
Source: Aberdeen Group, December 2011 management (contextualizing data and exposing it to key stakeholders);
(4) technology (the selection of the appropriate tools and the effective
At a time of extreme focus on results, some organizations do not deployment of those tools); and (5) performance management (the
understand the strategic role HR can play in achieving those results. ability of the organization to measure its results to improve its business).
Some ground has been regained among top-performing companies, but a These characteristics (identified in Table 3) serve as a guideline for best
gulf has emerged between Best-in-Class and Laggards. This disparity may practices, and correlate directly with Best-in-Class performance across the
be explained by the vast difference in the ability of HR organizations in key metrics.
these groups to demonstrate the value they create. As Figure 5 shows, Source: Aberdeen Group, December 2011
Best-in-Class organizations are more than six times as likely to be able to Table 4: The Competitive Framework
use data to demonstrate the impact of talent management efforts on the The next most Best-in-Class cited Average among Best-in-Class involves
commonly strategy Laggards
business. workforce planning, to identify job roles that are critical to that has been gaining
Process an area of talent management
steam. Nearly organizational success
Process half of Best-in-Class organizations are looking to identify gaps
Figure 5: Can Talent Impact on Business Metrics be Measured between the supply61% demand of talent in order to meet specific business
and 33% 32%
requirements. Line of approach transcends traditional headcount analysis by
This business leaders are given accountability for
recruiting, development, performance management, and /
Organization gap analysis and scenario planning. their teams
including skill or other aspects of talent management within The ability to identify these
gaps gives HR the insight needed to prepare for current and future business
63% 55% 42%
needs. To successfullyhave access to relevant talent data (employee rely on both internal
Managers identify gaps, organizations must
and external data and make this informationresults, etc.)available at any and
profiles, development plans, assessment readily
every stage of the employee lifecycle. Aberdeen’s32%
Knowledge
63% 48% forthcoming Big Data
study to be published in
Managers have2012 will discuss the importance of data to HCM.
access to relevant workforce / labor data
(time worked, certifications, etc.)
While over 40% of organizations can integrate and analyze Talent
57% 60% 41%
Management, Workforce Management and / or Internal business
HCM technology currently in use:
performance data, only 22% are able to integrate and analyze external data.
68% Pre-hire 53% Pre-hire 38% Pre-hire
assessments assessments assessments
The third most 68% HRIS / strategicHRIS / is also aHRIS / business challenge
common 57%
action 62%
top
according to Aberdeen’s Business Review. Employee Engagement has a great
HRMS software HRMS software HRMS software
impact on the success of individuals and organizations. Aberdeen's 2009
62% 54% 46%
Technology & Recruitment Recruitment Recruitment
Source: Aberdeen Group, December 2011 Employee Engagement study, as well as Aberdeen’s 2011 Performance and
Enablers technology technology technology
Engagement report, found a strong correlation between employee
platform platform platform
engagement and organizational43% Employee
56% Employee growth. 35% Employee
self-service self-service self-service
portal portal portal
55% Post-hire 31% Post-hire 24% Post-hire
assessments assessments assessments
While many traditional HR silos were established for a reason, theseTelephone: 617 854 5200
© 2011 Aberdeen Group.
silos

18. FEATURED
RESEARCH
REPORT
Overview Presenter:
HEINTJIE SANTOS
Assessment Solution Expert | Country Director , Singapore
Profiles Asia

19. Human
Capital
Management
Trends
Managing
Talent
to
Lead
Organizational
Growth
2012
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