Get ready for 2014   solve the talent management equation with job competencies
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Get ready for 2014 solve the talent management equation with job competencies

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In a 2012 Bersin and Associates research paper, only 6 percent of HR teams rated themselves “excellent” in data analysis, while 56 percent rated themselves “poor." In school we all learn ...

In a 2012 Bersin and Associates research paper, only 6 percent of HR teams rated themselves “excellent” in data analysis, while 56 percent rated themselves “poor." In school we all learn standard notation for math and how to solve equations, but we don't have that in talent management. We don't have it as a broad standard and we probably don't even define what our own internal "standard notation" is. While there is a wealth of data residing within the organization that might help us better define what "good" looks like and how to get there, elements like job descriptions or core and leadership competencies are not defining quantitative elements of our equation that align with the business side of our equation.

In this session, we will:

Review the challenges in defining talent management.
Discuss the elements in the talent management equation.
Describe how a job competency framework can balance the two sides of the equation.
Review three steps to implementing a framework to making sense of the data

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Get ready for 2014   solve the talent management equation with job competencies Get ready for 2014 solve the talent management equation with job competencies Presentation Transcript

  • GET READY FOR 2014: SOLVE THE TALENT MANAGEMENT EQUATION WITH JOB COMPETENCIES To us, business is personal Gordon Ritchie, October 2013
  • AGENDA • Introduction • Challenges in defining talent management • Elements in the talent management equation • How a job competency framework can balance the two sides of the equation • 3 steps to implementing a framework to making sense of the data • Conclusion – Questions, – Next steps © 2012 Kenexa Corporation 4
  • CHALLENGES IN DEFINING TALENT MANAGEMENT View slide
  • WORKFORCE MANAGEMENT SEE ANY SIMILARITIES? “We’re not gonna compete with teams that have big budgets.” “We’re gonna work within the constraints that we have and you’re going to go out and do the best job you can recruiting new players.” “I want you to go find replacements for the guys we lost with the money we do have.” Copyright Kenexa®, 2013 2012 © 2012 Kenexa Corporation 6 View slide
  • Billy Beane’s mission was to field and reward a team that can win against richer competitors. Isn’t that what we need to do as well? Copyright Kenexa®, 2013 2012 © 2012 Kenexa Corporation 7
  • WE KNOW WHAT WE DO IS IMPORTANT BECAUSE THE ANALYSTS TELL US… “Best-In-Class organizations are more than twice as likely to identify competency data for each employee.” SHRM recognized in their 2012 Employee survey, being recognized in using your skills is now the #1 employee job satisfaction issue, above pay, benefits etc. “If we can apply science to improving the selection, management, and alignment of people, the returns can be tremendous.” Forbes Leadership Article February 2013 Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 8
  • POLLING QUESTION 1 • What are the obstacles you face to quantifying talent management? A. Disconnected talent management tools B. Poor reporting or analytics tools C. No standard formulas D. No clear definition of what talent it or the results they impact © 2012 Kenexa Corporation 9
  • POLLING QUESTION 1 ANSWERS © 2012 Kenexa Corporation 10
  • WHAT ARE YOU MEASURING FOR RESULTS? How does your HR group measure success? How does your business measure success? 1. %ge review forms complete • Revenue 2. Onboarding complete • Customer retention 3. Cost per hire • Profit 4. Hours of learning delivered • Gross Margin 5. Compensation plan increase • EBITDA 6. Staff turnover • EBITDA Per Employee 7. Staff tenure • Share price 8. Employee engagement • EPS A+B/TM = DOW($ X PE) We know what + / X and = means. But how do we balance the equation to solve what affect one item has on the other side? © 2012 Kenexa Corporation 11
  • ELEMENTS IN THE TALENT MANAGEMENT EQUATION
  • DEFINING A ROLE WE NEED PERFORMED • Job Descriptions • Resumes • LinkedIn profiles • Social profiles • Experience • Time served • Self reported • Assessments – Cultural, Leadership, Succession, • Performance ratings Business Results Performance Management, Coaching, Goal Setting, Assessment, Succession Planning Employee Development, Advancement, Compensation Planning, Affiliation and Engagement Unified Talent Profile? Job Descriptions, Job Value and Competencies Copyright Kenexa®, 2013 2012 © 2012 Kenexa Corporation 13
  • Business Results Job Descriptions, Market Data and Competencies Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 14
  • TALENT ANALYTICS: BIG DATA CUBE Data in: Compensation Function Job Level Core Competencies • Disconnected TM tools • Disconnected processes • Incumbents • Candidate • Self/360/test/SJT • Performance Appraisals • Compensation Plans • Engagement Surveys • Development plans Functional Competencies Job Profile © 2012 Kenexa Corporation 15
  • IF YOU WANT IT, YOU CAN FIND IT • Social • Cloud System of record… • HRIS, ATS, LMS, • Mobile • Crowd sourced Analytics tools • Structured/Unstructured • Excel • Best of breed vs integrated suite • • Performance • Custom/config/off the shelf • • Compensation survey planning • Access • Word ONLY AS GOOD AS THE DATA THAT’S • Assessments IN THERE. Etc,… OLD DATA CAN BE WORSE THAN NO DATA Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 16
  • ELEMENTS IN THE EQUATION TALENT Copyright Kenexa®, 2013 © 2012 Kenexa Corporation + SKILLS x CULTURAL FIT = PERFORMANCE 17
  • IT’S ABOUT THE EMPLOYEES • Employee Engagement Index (EEI) positively correlates to financial returns. • Higher EEI results in greater discretionary effort. • ROA = 3X that of those that don’t invest in HCMPs. • Those not investing are typically less than 1% of payroll on recognition. Kenexa High Performance Institute, 2013: Human Capital Management Practices, a win-win solution HCMP-Human Capital Management Practices of Development, Performance and Recognition. ROA-Return on Asset = profit related to total assets. © 2012 Kenexa Corporation 18
  • WHY COMPETENCIES ARE IMPORTANT. Internal challenges to address via assessments All Organisations 37% Weak or limited leadership pipeline 36% Consistency in employee competence 31% Excessive first year turnover among new hires “The number one strategy used by best in class companies was to develop a competency framework.” 30% Lack of skills to meet organizational needs 0% Impact of Assessments in Talent Management 5% 10% 15% 20% 25% 30% 35% 40% 8% Employee performance 18% 2% Quality of hire 17% Employee productivity 0% -10% 0% 7% 14% Not Using Assessments Overall turnover Using Assessments Recruiting costs -12% -15% -10% -5% 0% 5% 10% 15% 20% Source: Aberdeen 2009 Study; Assessments in Talent Management Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 19
  • LETS BUILD OUT AN EQUATION • Start with the big one • Salary Bill = typically the biggest expense for an organization • Average Salary = $100,000 • Cost * productivity = contribution • $10,000,000 * 100% = $10,000,000 • $10,000,000 * 90% = $9,000,000 • $10,000,000 * 110% = $11,000,000 That’s the equivalent of 10 new staff members. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 20
  • MAXIMIZE THE POSITIVE Loaded Salary cost X Avg Tenure X Productivity% = Salary Cost Goal X Avg Tenure X Productivity% = Goal Miss $100,000 X 5 years * 90% = $450,000 = Loss of $50,000 Sales person with a $2million quota $2,000,000 X 5 years X 90% = $1million loss That person is costing the company the opportunity to add 2 sales people which is a $20million opportunity cost. © 2012 Kenexa Corporation 21
  • THE RESULTS ON THE RIGHT HAND SIDE… What did you put on your SEC 10K or Annual report? Succession • Acquiring Talent • Engaging Talent Cost of a poor hire: $300K-$500K Cost of losing a talented employee: $250K-$500K Expense management • Retaining Talent Sales results Operational efficiency rate due to poor employee engagement: 30% Value of a top performer: 2-4X performance of average employees • Evaluating Talent Competitive product results These numbers are consolidation of numbers from the HCI. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 22
  • CHALLENGES DEFINING COMPETENCIES What prevents you from implementing competencies (or extending the competencies you have) in your organization? 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Manual process Budget Too difficult to Constraints define competencies Too many jobs Lack of executive support Source: Competencies, Compensation and Technology Luncheons.- 2012 Copyright Kenexa®, 2013 2012 © 2012 Kenexa Corporation 23
  • STANDARDIZING THE FORMULA WITH A COMPETENCY FRAMEWORK
  • “COMPETENCIES ARE THE CURRENCY OF TALENT MANAGEMENT” JOSH BERSIN, 2007 But as soon as I say “competency”, you hear… • Core • Time consuming • Leadership • Hard to do • Functional • Hard to prove ROI • Technical • No impact • Behavioural • Tried it • Traits • Tried it again, • CARS • Done them • BARS • Someone else did some too • Proficiency levels • Too HR • Assessment • Not important or relevant • Fewer = easier © 2012 Kenexa Corporation 25
  • WHAT IS A COMPETENCY ? Kenexa definition of Competency is a combination of knowledge, skills and abilities (KSA) describing the demonstrable indicators of proficiency Core Competencies = price of admission Leadership competencies = developing the future Functional competencies = executing as a team Technical competencies = impacting performance of the organization today. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 26
  • COMPETENCIES ARE THE FOUNDATION “Conclusion: The most successful organizations rely on a talent infrastructure that encompasses the right competencies and job profiles as a basis for Career & integration.” Succession Planning Integrated Talent Management: A roadmap for success. Performance Bersin and Associates, 2012 Management Learning Needs Analysis Functional Job & Competency Framework Using a Job Competency Framework Risk Analysis Compensation provides a Clear, Common and Consistent language for Talent Management. It connects processes and enables integration across HRIS and Talent Management investments, already made. © 2012 Kenexa Corporation Resource Planning Recruitment & Selection 27
  • ITS ABOUT ALIGNING THE JOB NEEDED TO THE JOB DONE Functional Job Analysis Outcomes Research • • • • • • • • • • Library Custom Professional 3rd party Business results Assessment Survey Compensation Performance Core High Performance Behaviors Application • • • • • • • • • Performance Pre-hire Post hire Development Engagement Succession (tactical) Succession (Executive) Compensation Workforce capability • = • • • HR Impact and respect Employee job satisfaction Operational success Business results Kenexa definition of Competency is a combination of knowledge, skills and abilities (KSA) describing the demonstrable indicators of proficiency. Core Competencies = price of admission Leadership competencies = develop the future management line of succession Functional competencies = execute as a team and ensure operational succession Technical competencies = impact performance of the organization today. © 2012 Kenexa Corporation 28
  • THE KENEXA JOB MODEL Matrix Job Function 6 Job Levels (IC, Supervisor, Manager, etc) Primary Job Focus (tech, Prof, Admin, Mgmt, etc) Copyright Kenexa®, 2013 © 2012 Kenexa Corporation Job Description – – – – – Code Title Summary Responsibilities Compensation Competencies (KSA’s) (Core, Leadership, Functional and Technical) – Definition – 4 Proficiency Levels • Behavior statements by level • Target Proficiency level – Application Accelerators Learning References Development Statements Coaching Tips Performance Rating Writing Assistants • Interview Questions • • • • 29
  • WORKING ACROSS ORGANIZATIONAL LEVELS 1. Identify Levels within Organization using job bands 2. Define the scope of responsibility in each Level © 2012 Kenexa Corporation 30
  • Sales Representative, Snr Target proficiency levels Benchmark expectations Provide complete view of the job. Identify key candidates Help organizations focus on who they need. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 31
  • Interview Questions aligned to the competencies aligned to the job. Enable consistent selection over time for positions. Improve the tools in interviewers hands Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 32
  • SMART Goals: Both Quantitative, and Qualitative Consistent, clear and customizable Engage new employees in onboarding and longer term objectives. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 33
  • Help Coaches step back from “Unconscious Competence” Help apprentices have a focal point, not football or weather. Focus productive relationship focused on the behaviours and experiences that need to be shared. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 34
  • PERFORMANCE over time, not just proficiency: 1 = Bad, 5 = Good. Granular feedback, that is not provided if I don’t have time, or can’t think of how to write a politically correct, defensible statement. Focus on key areas and Recognize skills being performed. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 35
  • Multiple Learning Styles: OJT, Professional Curriculum, In-house SOP, etc. Mapped to specific competencies Customizable. External learning catalogue mapping. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 36
  • Behavioral, Demonstrable, Observable levels of proficiency setting clear expectations or what good looks like. Set expectations for Onboarding. Critical in accelerating time to performance in a job. Basis for Skills Gap analysis Foundation for “big data” formula for analysis in HR that drives business impact. Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 37
  • WHERE YOU CAN APPLY IT Where it helps How it helps What you need Attracting candidates Set expectations of who will be successful in the job beyond a job description Demonstrable behaviours of what you expect Hiring Decisions Smarter hiring decisions based on capability to do the job Interview questions tied to the competency behaviours required Onboarding Improve chance of success and retention with accelerated time to productivity Demonstrable expectations of what good looks like Managing Skill focused coaching tips, SMART goals, Support managers development discussions with tools to improve trust and and extended expectations for growth impact. Engagement Provide clear view of portable/mobile skills to engage the engageable. Reusable competencies across roles, levels and functions to provide skills based career matrix. Performance Management Provide job specific performance criteria for evaluation and contribution. Job specific competencies and expected levels of demonstrable behaviour Development Drive up learning as its easier to find content in your LMS Learning catalogue mapped to competencies Compensation © 2012 Kenexa Corporation Planning Understand the jobs you are matching beyond just the salary survey job title. Match jobs based on skills, tied to excellence as performance to pay. 38
  • 3 STEPS TO IMPLEMENTING A STANDARDS FRAMEWORK and help you, help your business solve the TM puzzles
  • 3 KEY STEPS 1. Start with an existing Job Competency Framework 2. Don’t get it perfect. Get it out there. 3. Engage with managers on workers on how to use it Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 40
  • COMPETENCY IMPLEMENTATION BEST PRACTICES Model Building • Ensure linkage between competencies and organization strategies • Keep models simple at launch • Add dimensional criteria and keep the momentum • Start with a library or Competency Framework Applications • Focus on assessment and development first, then evaluation and pay applications • Integrate of the competencies with all processes, even if tools aren’t • Ensure consistency of applications rather than allowing too many variations Change Management • • • • Clarify and communicate specific objectives of your applications up front Ensure top management and line management buy-in and ongoing support Be focused in implementation (i.e., one function, one pilot group first) Provide training and communication more consistently and carefully (building in training at all stages of implementation) • Develop and consistently apply a measurement system used to evaluate the effectiveness of implementation over time © 2012 Kenexa Corporation 41
  • COMPETENCY IMPLEMENTATION – SHORTEN TIME TO IMPACT Recommended Approach 80% of the effort 20% of the effort Kenexa / IBM Competency Development  Get the “big things right”; “don’t dwell on the small stuff”.  Apply existing materials and best practices in developing a rapid draft  Focus on the overall architecture  Key success criteria and themes. Application Integration Iteration  Position models as prototypes for learning how to change behaviors (vs. a perfect output image). Typical Competency Development Typical Approach 80% of the effort Kenexa®, Copyright 2013 © 2012 Kenexa Corporation Launch & Communication Implementation  Develop and use quickly and update over time.  Focus on buy-in and change management processes.  Make sure you get to the applications; don’t get stuck in model development Application Integration Iteration Launch & Implementation Communication 20% of the effort (if able to move out of development stage) 42
  • THE KENEXA JOB MODEL AND COMPETENCY LIBRARY Kenexa Job Competency models provide: job families, job profiles with competencies critical to each role and the proficiency level recommended for each competency Industry Competency Models – Banking / Financial Services – Construction – Consulting – Education – Energy – OEM/High Tech Hardware – Pharmaceutical -- OEM High Tech Software -- Insurance -- Manufacturing -- Media / Publishing -- Retail - CRM Outsource Mgmt - Healthcare (Clinical/Admin) General Competency Models – General Corporate Functions (HR, Finance, Legal, Sales) – Information Technology (IT) Operations – SFIA (Skills Framework for the Information Age) Job Model Components Job Families (115+) • Function or expertise • 6 Job Bands for employees, management and executive matrices Jobs (2,500+) • Job descriptions • Job profiles • Job responsibilities • Job focus (ie. Admin, IC, Mgmt, etc ) Competencies (1,800+) Business – 36 Individual – 28 Management – 22 Leadership – 20 Functional/Technical – 1700 4 Levels of Proficiency with 21 unique behavioral descriptors for action oriented skill evaluation Performance Accelerators • • • • • Learning ReferencesDevelopment Goals Coaching Tips Proficiency Feedback Writing Assistants Interview Questions − Level 1: Basic understanding − Level 2: Working experience − Level 3: Extensive experience − Level 4: Subject matter depth/breadth • Compensation Market Data Copyright Kenexa®, 2013 © 2012 Kenexa Corporation 43
  • CONCLUSION
  • IMPROVE RETURN ON INVESTMENTS ALREADY MADE IN TALENT MGMT JOB COMPETENCY LIBRARY  18 Industry specific FRAMEWORKS  115+ JOB FAMILIES,  2000+ JOB PROFILES  1,800+ COMPETENCIES  4 PROFICIENCY levels w/21 Behaviors  Interview Questions, Learning Resources, Development Goals, Coaching Tips  Tool agnostic structure proven over 20 + years Copyright Kenexa®, 2013 © 2012 Kenexa Corporation Competency Manager Tool * Edit existing, * Create new, * Assemble New, * Compare Competencies/skills EXCEL Export Excel 45
  • The Sum of the Parts sets IBM apart. World-class Talent Management technology Software, best practices, data and research to impact the workforce and deliver exceptional business results Science that makes it “smarter” Industry-leading insights into the science of human behavior, deep expertise in talent management and predictive analytics that demonstrates value Social platform to drive adoption Big data analytics, enterprise content management, plus a social networking, collaboration and web experience platform that integrates with how people work Flexible service options Expert consulting, experienced outsourcing and financing options to make transformation happen Delivered how and where people work On smartphones, tablets, laptops, desktops or kiosks to ensure noone is excluded regardless of where they work or what they do. © 2012 Kenexa Corporation 46
  • QUESTIONS, NEXT STEPS • Questions? – Here’s one for you:  what are your 2 most critical job roles and how is their impact measured in your annual report revenue, profit, customer service costs, risk mitigation? • Next steps: © 2012 Kenexa Corporation 47