Integrated Talent Management Where Technology Meets Strategy
What is Talent Management What Drives Talent Management Integrated Talent Management Paradigm Shift Unified Talent Management Benefits Impact on C-Levels Hidden Costs Advantages
Talent Management Attraction Development Management Retention Engagement Systems and Strategies Utilized to Find, Manage, Motivate and Empower Your Employees
Most common solutions associated Applicant Tracking System Performance Management Succession Planning Training (Learning Management System) Compensation Management
Traditional HR Talent ManagementReactive ProactiveAdministrative StrategicConfined to HR staff Everyone‟s ResponsibilityTransactional CollaborativeCertain times All the timePromises soft-dollar benefits Delivers hard-dollar benefitsAdds paperwork Adds valueCounts heads Heads countDownplays its drag on bottom Adds to the bottom lineline Mission critical/coreShould be outsourced competence
Local Focus Global MindsetAutomation TransformationStand Alone Integrated SuiteApplications Reports Decision Support
The demand for strategy-based talent management hasnever been greater. .Senior management, boards of directors, analysts, andinvestors factor a company’s talent management maturityand the quality of its workforce into the valuation equation.A McKinsey study (Axelrod, et al., 2010)concluded that organizations scoring in the top quintile oftalent management practices out perform their industry, asmeasured by return on shareholder value, by a remarkable22%.
Attraction – want to attract top performers ◦ Salary is no longer number one reason to take a job Ability for career advancement Money spent on Training Culture Retention – want to keep top performers ◦ Improve employee satisfaction ◦ Keep employees engaged Performance – Improving the individual performance of employees so that the organization meets is Business Goals Analytics – need to be able to prove what HR is doing is having a positive effect Automation – improving ability to perform functions, freeing time for more strategic initiatives Total Cost of Ownership (TCO) and ROI
Too difficult to use Too many systems Too hard to remember how to access No time to train (especially on multiple solutions) No real data to validate ROI Incomplete processes (multiple systems) No Executive buy in No Manager buy in (WIIFM) To short sighted – no long term vision
Need Applicant Tracking System - ATS ◦ Too many resumes ◦ No database ◦ Tracking ◦ Reporting ◦ Portal ◦ Research, RFI, RFP, ◦ Present and Future Needs ◦ Buy Best System
“We are reaching a point in this marketwhere „integration‟ is more importantthan „functionality,‟” Bersin wrote. “Thedays of having one island of software Josh Bersinfor learning management, another for The TM Software Slump.performance management, and a third JoshBersin.comfor recruiting, are slowly going away –most mid-market and an increasingnumber of large companies are nowheavily leaning toward „full suite‟solutions.”
What goes around comes around!Late 90‟s ERP preaching Integrated (Oracle, SAP, Peoplesoft, JDE, BAAN)Major Players Piping Best of Breed Story Recruitsoft/Taleo CEO says they will dominate marketbecause their unique value proposition is that they do ApplicantTracking and nothing else!
Integrated means that software, systems, or applications can be made to speak to each other. (Pass defined data back and forth)Cost of having two unique solutionsoften purchased as stand a lone or bestof breed that you now require tocommunicate with each other
Unified or Organic “the new Integrated” is when systems are built as one solution, one interface, one application, one database, no multiple uploads of data, all data is real time (not batched nightly), they use the same naming conventions, fields and columns so both use and reporting is simple and effective
The Human Capital Space has unparalleledacquisitionMore companies trying to have an integratedstrategyMade easier by use of API (ApplicationProgramming Interface)New Wave?SAP buys Successfactors large footprint now ownsCloud Software.
While ERP‟s are Integrated/Unified focus is not HR specific ◦ can often lag behind on functionality ◦ based on licensing model – large IT Footprint (why SAP bought Successfactors) Integrated Talent Management vendors through acquisition ◦ – delays in true integration and multiple user interfaces Unified or Organic one interface more robust analytics, better user experience
Usable Functionality According to Aberdeen Group, “Best-in-Class companies report a variety of planned enhancements to the functionality of their HR systems: it is important that these enhancements actually provide value, and aren’t just ‘whiz-bang’ additions. While robust capabilities and enablers can add a great deal of value, make sure that they are part of the mission of the organization, not just a new offering.”
Best of Breed perceived as leaders with unique features Integrated providers will catch up Occasionally a niche vendor offers a valuable, specialized feature not available within an integrated talent management framework. It is crucial to remember that development is continuously progressing on the capabilities of the framework. Therefore, it is likely that same feature will come available with the framework in the near future—if the feature is part of a best practice.
A CedarCrestone study revealed astrong correlation betweenorganizations with integrated ormixed talent management solutionsand operating income growth asmeasured over a two-year period.
Even if a niche vendor extends its recruiting offering into performance and compensation and calls it integrated, the absence of native integration with the core HR system depletes the business benefit.CedarCrestone/Oracle
CEO: Realizes value of top talent Importance of development of talent for growth Maximize performance Advanced analyticsCIO: Single Vendor Accountability and Management ◦ No finger pointing Focus on solution not interfaces and integrationsCFO: reduce number of contracts Reduced integration points saves money Economies of scale – reduced TCO
One vendor to manage One sign-on One interface (unified/organic) Less training Higher user adoption Improved analytics Less Integrations – down time and money Reduced Costs
Bersin & Associates finds that organizations thattake an integrated approach to talentmanagement1. are more capable of retaining high performers,2. realize higher revenue per employee3. are generally better at responding to economic change.
Career Path My Job/ DevelopmentEmployees Plan Job Skills & Competency Dream Job Measure PerformanceMotivate, Engage and Develop your FutureLeaders
How many systems and integrations to find dataand critical analytics Employee ◦ Information – job, start date, contact info ◦ Career Path ◦ Development plans ◦ Skills/Competencies ◦ Performance Report on gaps Trends
Long Term Vision Not always what’s best now Collaboration between HR business units ◦ Recruitment, OD, Training