Business Impact of Talent Intelligence

THE BUSINESS IMPACT OF TALENT INTELLIGENCE Join the Conversation!• On Twitter: #TaleoTalent David Wilkins• In Twitter or Twitter client, search for VP, Taleo Research #TaleoTalent. @dwilkinsnh• When you comment, add TaleoTalent @TaleoResearch so everyone can see it.

YOUR PRESENTERS › David Wilkins, VP Taleo Research › David Wilkins has been a workplace thought leader for more than 15 years, pioneering innovative approaches in employee productivity and performance, recruiting and retention, and communications. As Vice President of Taleo Research, David is responsible for primary and secondary research in the talent management and broader HR space. › Amy Lewis, Practice Leader for Talent Strategy and Talent Acquisition, HCS

AGENDA › 2010 & 2011 studies › What is talent intelligence? › Review of survey findings › Recommendations › Q&A

2010 STUDY › Significant gaps between level of importance of talent data and access › Focused on efficiency rather than effectiveness › Not measuring the metrics that matter

2011 STUDY Key questions to answer: › What are the financial benefits of using TI? › What are some common TI practices? › What metrics are used and what metrics need to be developed? › What are the barriers to adopting TI systems and how have they been overcome?

WHAT IS TALENT INTELLIGENCE? Talent intelligence is the ability to capture meaningful information on company talent in order to help managers gain more insight and make better business decisions faster.

DPOS VERSUS DDOS Data Proficient Organizations (DPOs):How much do you agree that your Those organizations that agree they areorganization is proficient at analyzing proficient at analyzing workforce dataworkforce data? How satisfied are your AND their business leaders are satisfiedbusiness leaders with the data that is with the workforce data provided to them.provided to them? Data Deficient Organizations (DDOs): Those organizations that disagree they are proficient at analyzing workforce data AND/OR their business leaders are not satisfied with the workforce data provided to them.

HR SATISFACTION› How much do you agree with this statement: HR uses workforce metrics to demonstrate its contribution to your organization’s business goals and strategy.› How satisfied are you with your organization’s ability to analyze and make connections between recruiting and retention? DPOs DDOsAgree HR uses workforce metrics to demonstrate its contribution to your 94% 50%organizations business goals and strategySatisfied with organization’s ability to analyze and make connections 78% 20%between recruiting and retention

BENEFITS Higher productivity and innovation resulting from the right people in the right roles 78% More efficient and effective hiring resulting from better identification of required profiles 73% Greater organizational agility created by more awareness of talent gaps and strengths 70% Improved engagement levels tied to job fit and better overall alignment between individual contributions 68% Better partnership and communication aided by a stronger connection between business planning and talent planning 66%Reduced turnover results from better hiring and improved fit 64% Higher levels of business continuity driven by improved succession planning 59% Increase flexibility in business response aided by short- and long- term workforce planning 59% How important are the following benefits to your 0% 25 50if you had organization, 75 100 greater access to robust talent data and related insight and% % % % analytics? Percentage Very Important

BENEFITS Higher productivity and innovation resulting from the right people in the right roles 78% ROI of employee development 73% More efficient and effective hiring resulting from 73% Revenue per employee 60% better identification of required profiles Greater organizational agility created by more 70% Profitability 58% awareness of talent gaps and strengths Improved engagement levels tied to job fit and better Cost per hire 56% overall alignment between individual contributions 68% Better partnership and communication aided by a stronger HR spend per employee 46% connection between business planning and talent planning 66% 45%Reduced turnover results from better hiring and improved fit Cost of training 64% Higher levels of business continuity driven by improved 42% Sourcing cost succession planning 59% Increase flexibility in business response aided by short- 14% Stock value and long- term workforce planning 59% 0% 25% 50% 75% 100 How important are the following benefits to your 0% 25 50if you had organization, 75 100 Which of the following financial metrics would be % greater access to robust talent data and related insight and% % % % analytics? positively impacted by leveraging more robust Percentage Very Important talent insights?

TOP AND BOTTOM METRICS

IMPORTANCE AND ACCESS› 37 key metrics from around the talent lifecycle› How important is this data? Are you able to access it and is it reliable? – Workforce data – Sourcing, onboarding talent – Learning and development – Succession planning and talent mobility – Performance management and compensation

WORKFORCE DATA - DDO

WORKFORCE DATA - DPO

WORKFORCE DATA - DPO Over Investment Under Investment

SOURCING AND ONBOARDING

LEARNING AND DEVELOPMENT

PERFORMANCE MANAGEMENT AND COMPENSATION

SUCCESSION AND TALENT MOBILITY

TOP PERFORMER AND HI-PO DATA IS UGLY› 80% of companies don’t know who is a flight risk.› 78% of companies don’t know who is on a succession plan.› 80% of companies don’t know who has a career path.› 65% of companies don’t know much about who they’re retaining.› 84% of companies don’t if their development plans are working.› 65% of companies don’t know much about Hi-Po’s.

2010 VS. 2011: AVERAGE DIFFERENCES? NOT MUCH Competency/skills gap analysis Top performers with NO career pathRisk of loss for critical employees/positions Top Performers NOT on succession plans Succession Bench Strength Performance Plans Aligned to Goals 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Important or Very Important Access to Reliable Data Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010

2010 VS. 2011 DIFFERENCES? MORE NUANCED ANALYSIS Competency/skills gap analysis Top performers with NO career pathRisk of loss for critical employees/positions Top Performers NOT on succession plans Succession Bench Strength Performance Plans Aligned to Goals 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Important or Very Important Access to Reliable Data Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010

DPO VS. DDO IMPORTANCE METRICS CAN BE BIG Importance› Critical Roles with No Identified Successors 23%› Top Performers without a Career Path 21%› % of Development Plans Aligned to Goals 23%› Best Sources of Talent 22%› Average Time to Hire for Critical Roles 19%› Employee Engagement 27%› Competency Skill Gaps 20%› Productivity 21%› High Potentials by Department 19%

DPO VS. DDO IMPORTANCE METRICS CAN BE BIG Importance Reliable Access› Critical Roles with No Identified Successors 23% 28%› Top Performers without a Career Path 21% 23%› % of Development Plans Aligned to Goals 23% 24%› Best Sources of Talent 22% 26%› Average Time to Hire for Critical Roles 19% 28%› Employee Engagement 27% 22%› Competency Skill Gaps 20% 23%› Productivity 21% 23%› High Potentials by Department 19% 26%

FINANCIAL PERFORMANCE

INTANGIBLES: 80% AND GROWING Source: Deloitte, “Extracting Maximum Value from Intangible Assets”

RANKING OF BARRIERSDDOs DPOs1. Lack of analytic skill 1. Already have a system2. Already have a system 2. Lack of analytic skill3. Lack of executive support 3. Lack of tools4. Cost 4. Cost5. Lack of tools 5. Lack of executive support

SUMMARY & CONCLUSIONS› On average, not much movement from 2010 – Companies still don’t know measure strategic TM – Over investment in tactical data, under in strategic› If other functions in the business knew as little about their core asset, those leaders would be fired› Some companies are beginning to do things differently› Those companies are outperforming peers on key financials› As an industry, we need to get serious about talent intelligence – Shift to knowledge work requires it – Competitive pressures demand it – War for Talent never went away and it’s going to get worse fast

Business Impact of Talent Intelligence

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