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Best Practices in Talent Assessment

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As the recession is ending, now is the time for companies to re-examine their Talent Management Programs. …

As the recession is ending, now is the time for companies to re-examine their Talent Management Programs.

Companies that are prepared to re-engage and have the best processes to work with new employees as well as retain top performers will be ahead of the curve.

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    • 1. Best Practices in Talent Management Research Findings from Best Practices, LLC
    • 2. Table of Contents From Original Work
      • Research Background……………………………
      • Key Findings ………………………………………
      • Assessing Corporate Talent …………………….
      • Measuring Talent Management …………………
      • Utilizing Performance Reviews …………………
      • Working with High Performers ………………….
      • Working with Low Performers …………………..
      • Funding Talent Management Programs ……….
      • Talent Management Activities that Work ………
      • About Best Practices
    • 3. Study Overview This summary report was compiled from various research conducted by Best Practices, LLC, as well as supplemental secondary research by Best Practices. Key Topic Areas Study Objective & Methodology Talent management is a conscious, deliberate approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current and future corporate organizational needs. Talent management involves individual and organizational development in response to a changing and complex operating environment. It includes the creation and maintenance of a supportive, people-oriented corporate culture.
      • Assessing Corporate Talent
      • Measuring Talent Management
      • Utilizing Performance Reviews
      • Working with High Performers
      • Working with Low Performers
      • Funding Talent Management Programs
      • Talent Management Activities that Work
      • Key Lessons Learned
    • 4. Understanding the Talent Landscape Flexible Organizational Structures life balance, virtual work, flexibility, temp. workers, interest in autonomy Shrinking US Workforce aging, shortage of educated/ skilled workers, slowed population growth Talent Market Challenges Candidate Expectations social responsibility, brand identity, internships, leadership development, shared decision-making, generational expectations - e.g. “helicopters” and parents Economic pressures are just one thing that are leading fewer people to enter the U.S. workforce than retire from it. As the labor pool becomes tighter, companies must work harder to retain top employees. Companies that create effective Talent Management programs can ensure stability and productivity in the short- and long-term Diversity & Globalization global economy, increasing minorities, mixed generations, increasing outsourcing Leadership Squeeze aging population + flat org. = decreasing bench strength
    • 5. Key Findings
      • Talent management brings together many important human resources (HR) and management initiatives.
      • Organizations that choose to “manage their talent" undertake a strategic analysis of current HR processes to ensure that a coordinated, performance oriented approach is adopted that integrates areas including
        • Retention - developing and implementing practices that reward and support employees.
        • Employee development - ensuring continuous informal and formal learning and development.
        • Leadership and "high potential employee" development - specific development programs for existing and future leaders.
        • Performance management - processes that nurture and support performance, including feedback/measurement.
        • Culture - development of a positive, progressive and high performance "way of operating".
      • It is important to identify the staff and positions critical to running a company. These do not need to be senior staff members. Instead it they can be employees who possess valuable “corporate knowledge” that would be difficult to replace.
      • It may not be possible to simply recruit new people to meet operational needs. This is where talent management is crucial as companies decide whether to develop their own people or to hire fully skilled workers.
      As companies face an ever increasing need to retain their top employees, discussions about skill shortages and an aging work population means that organizations should review their approach to talent management.
    • 6. Benefits of Talent Management Programs
      • Provide comprehensive approach to company-wide talent management
      • Align talent plans with business and strategic plans
      • Meet critical talent needs and minimize talent gaps across the company
      • Increase knowledge about skills, capabilities and talent across the company
      • Allows for a unified and comprehensive approach to acquiring, developing and retaining talent
      • Comprehensive knowledge about skills and experience employees
      • Create a useful talent plans for all “critical talent” in the organization
      • Target development for internal critical talent “back-ups”
      While it is easier to phone an executive search group than it is to “grow” someone into a position or to deal with the internal politics of redeploying people from within, such shortcuts are costly. To replace an employee is one and a half times her average salary. New candidates can take a year or more to master their jobs.
    • 7. Validation of Talent Management Benefits
      • Sixty-eight percent of study participants make some effort to understand the relationship between engagement activities and organizational outcomes.
      • Most organizations however do not take the time nor allocate the resources to quantifying the exact nature of the relationship between employee engagement and business outcomes.
      • Study participants cautioned that employee engagement can be influenced by a range of confounding variables and apparent correlations may not equal causation.
      • Most participants are comfortable anecdotally linking employee engagement levels to business outcomes, “We know that higher levels of employee engagement produce tangible behaviors that influence the bottom line, we don’t need more than that, why waste time and money?”
      Did you make any efforts to validate the impact of outputs of your employee engagement or talent management programs? Understanding the exact nature of the correlation of talent management or engagement activities and organizational outcomes enables program optimization.
    • 8. Talent Management Components
      • Talent Assessment
      • What kind of talent does the organization need?
      • What talent does the organization have?
      • What are the top roles?
      • Talent Selection
      • Are we attracting the right talent to meet current & future bus. objectives?
      • Can we identify external and internal expertise?
      • Talent Inventory
      • Who are our top leaders?
      • What are their career interests?
      • Do we have emergency back-ups?
      • What are we going to do to develop and retain them?
      • Talent Development
      • Are there on-the-job development opportunities?
      • Is executive coaching an option?
      • Should they attend Leadership Development?
      Companies that keep an eye to overall corporate performance tend to have the best handle on Talent Management goals and results. This enables these companies to highlight areas where a few key individuals can help drive profitability and productivity.
    • 9. Assessing Corporate Talent
    • 10. Retention Programs for Full-time Employees Company benefits emerged as the most effective retention program for full-time employees. Other effective retention programs mentioned by participants include sales contests, employee referral programs, commission incentives, and training/development opportunities. % of Companies Somewhat Effective Effective Very Effective Ineffective % of Companies 13% 20% 6% 6% 52% 22% 32% 6% Employee Contracts Pay-Raise Incentives Flexible Work Hours Increased Opportunity Special Event Rewards & Recognition Programs Cash Bonuses Company Benefits 45% 35% 45% 16% 32% 24% 26% 32% 27% 19% 29% N=31 23% 35% 3% 30% 3%
    • 11. Leadership Development Advisory Groups: Roles Advisory groups among the benchmark class have an average of 4 distinct roles. The primary roles of benchmark partners’ advisory groups include high-level responsibilities for setting direction and sponsorship. What are the roles of this advisory group? 1 4 5 5 6 7 0 2 4 6 8 Discuss and identify non-training development opportunities Identify participants for leadership programs Administrator Sponsor Create budget Roles # of Companies Set objectives and direction N=7
    • 12. Measuring Talent
    • 13. Program Design - Structure How would you describe the activities designed to enhance employee engagement? N=101 The application of both formal and informal program elements, or “pure” formal programs, have a very positive correlation to the success of employee engagement, while ad hoc programs seem to have a much smaller correlation to positive program outcomes.
    • 14. Utilizing Performance Reviews
    • 15. Surveys Frequency: 1-on-1 Manager Discussions Companies of all sizes are more likely to use manager discussions to gauge employee satisfaction on monthly basis. How often do you use one-on-one discussions to measure satisfaction? 36% 18% 9% 9% 41% 16% 16% 25% 55% 22% 11% 11% 11% 0% 10% 20% 30% 40% 50% 60% Monthly Quarterly Semi- Annually Annually Do Not Use One-On-One Manager Discussions Small Medium Large % of companies Large n=11 Medium n=12 Small n=15
    • 16. Working with High Performers
    • 17. Program Designed to Serve Select Pools Benchmark partners tend to focus development efforts on select pools of employees; these employees are identified almost equally through Succession Planning and other processes. What are the primary objectives of your company's High-Potential Program? 5 10 11 0 2 4 6 8 10 12 Provide development opportunities to a broad group of employees Develop candidates identified by Management through Succession Planning Develop candidates identified by Management, but not through Succession Planning Objectives # of Companies N=18
    • 18. Engagement Activities that Work
    • 19. Frontline-Activity: Talent Management: Finding an Employee’s Niche
      • Spotlight:
      • Dialogue to Identify Opportunities: “We have annual (at a minimum) career discussions with managers for all employees to identify motivators, whether they are present in sufficient quantity and quality in current job, if not what employee and manager can do together to improve this as well as discussing future career interests and aspirations (short, medium and long-term); and development plant to get there.”
      • Offer Alternative Job Functions: “We offer enhanced mobility within the organization so employees can shadow/apprentice in other areas of our company.”
      • Activities:
      • Have a career development plan in place for all employees. Employees want to see their future at the organization. The plan must be explicit.
      • Create job profiles that allow for mobility within the organization - allow employees to try out other “fits” within the organization.
      • Specifically monitor employee perceptions of their shared future with the organization , a strong personal vision is indicative of engaged employees.
      Practice: Give employees opportunities to find their “fit” by participating in different tasks/functions with the objective of soliciting their input on how they could best serve the company.
    • 20. About Best Practices, LLC Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 919-403-0251 www3.best-in-class.com For more information contact: Cameron Tew Exec. Director – Publishing, Consulting and Research Advisory Services 919-767-9246 [email_address] Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies.