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ROI Modeler for Workforce Planning
 

ROI Modeler for Workforce Planning

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Talent Neuron has developed a Workforce Planning Toolkit that define and address companies most critical talent needs based on business strategies and plans. It enables talent planning with the right ...

Talent Neuron has developed a Workforce Planning Toolkit that define and address companies most critical talent needs based on business strategies and plans. It enables talent planning with the right skills at the right location in order to enable innovation and cost optimization.

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    ROI Modeler for Workforce Planning ROI Modeler for Workforce Planning Presentation Transcript

    • Talking Talent and WFP Zinnov LLC CONFIDENTIAL August, 2013 This report is solely for the use of Zinnov and Zinnov Clients. No part of it may be circulated, quoted, or reproduced for distribution from Zinnov Management Consulting.
    • 2Talent Neuron Talking Talent and WFP: Setting the Stage Setting the Stage1 Note: 1. An Oracle White Paper January 2013; Oracle Human Capital Management (HCM) Cloud Service - Simplify People Management and Build the Best Talent 2. PwC 15th Annual CEO Survey 2012 Talent management is the #1 issue for CEOs who want to create a high-performance culture1 25% of CEOs were unable to pursue a market opportunity or have had to cancel or delay a strategic initiative because of talent2 One third of CEOs are concerned that skills shortages impacted their company’s ability to innovate effectively2 Two thirds of CEOs are looking for data, analyses and HR integration with business planning to make and inform people investment decisions2 As a cornerstone of business strategy, CEOs are now focusing their attention on talent as a result of the link between talent, sustainability and growth
    • 3Talent Neuron The Myth of Headcount Planning2 Source: Talent Neuron Talking Talent and WFP: The Myth of Headcount Planning Actions guided by budget instead of appropriateness may meet short-term needs but tend to have a negative longer-term impact Revenue and Brand Customer Acquisition and Retention Employee Acquisition and Retention Employee Effectiveness/Productivity Management Effectiveness/Productivity
    • 4Talent Neuron The Myth of Headcount Planning2 Source: Talent Neuron Talking Talent and WFP: The Myth of Headcount Planning Requisition process governs talent acquisition activities Positions downgraded and vacancies filled by cost consideration instead of skills Reductions in force managed with compliance drivers Manager/employee ratios established based on benchmarking, not ‘best fit’ Reengineering/reorganization accelerated but technology investments postponed Outsourcing adopted without full consideration and understanding of productivity impact and internal management requirements
    • 5Talent Neuron Tangible and Intangible Benefits of WFP3 Talking Talent and WFP: Workforce Planning is the ‘people’ piece of Strategic Business Planning Identify Critical Job Families • WFP identifies the critical job families/roles that are needed to sustain the organization and meet its growth objectives, and then creates talent action plans that mitigate talent gaps Right People with Right Skills • WFP provides a roadmap of short, medium and long-term actions that ensures the Right People with the Right Skills at the Right time with the Right Cost in the Right Locations Minimize Cost • Minimizes costs associated with bad hires (impetuous/mismatched skills), time to fill, cost of vacancies, and compensation programs designed for retention and internal equity Take Control of Future • WFP Uses internal and external data to anticipate future talent needs, labor costs, and labor arbitrage opportunities Increase Productivity • Maximizes commitment and resources based on internal v external talent activities
    • 6Talent Neuron Failure to Plan v WFP4 Talking Talent and WFP: Failure to Plan v WFP Failure to plan Estimated Cost by Job Family Probability (%) Cost to Company Direct Costs Recruiting costs - agency, travel, background checks, etc Replacement costs- base pay, sign-on bonus, annual bonus, equity, benefits Overtime for current employees, including time-off Temporary/contractors Retention programs Internal equity adjustments Indirect Costs Productivity loss due to vacancies Ramp-up for new hire Lost knowledge and/or knowledge transfer challenge Management time for recruitment process
    • 7Talent Neuron Failure to Plan v WFP4 Talking Talent and WFP: Failure to Plan v WFP Failure to plan Estimated Cost by Job Family Probability (%) Cost to Company Management time to train and supervise new hire Management opportunity costs for filling in vacant position activities Increased turnover Developmental programs (mentoring, etc) Total Cost- Failure to Plan
    • 8Talent Neuron Failure to Plan v WFP4 Talking Talent and WFP: Failure to Plan v WFP WFP Estimated Cost by Job Family Probability (%) Cost to Company Direct Costs Talent Neuron Talent Action Plan direct costs Indirect Costs Project Manager Time Executive Time HR/Business Unit action plan development (prep time) Talent Action Plan indirect costs WFP- Total Cost Savings to the Organization: WFP v Failure to Plan
    • 9Talent Neuron The Cost of Failure to Plan5 # of Vacancies x Revenue/Employ ee = Lost Revenue # of Vacancies x EBITA/Employee = Lost Profit Bad hires as a % of terminations x 2.5 x base salary = Lost Profit Top Performers (Productivity Gains) x 2.2 x base salary = Lost Profit Talking Talent and WFP: The Cost of Failure to Plan (other metrics) Bottom Line of Failure to Plan The number one reason almost 50% of companies made what turned out to be a bad hire was because they needed to fill the job quickly National Business Research Institute (NBRI), August 2013
    • THANK YOU 4701 Patrick Henry Dr. Building 7 Santa Clara CA – 95054 Phone: +1-408-716-8432 21, Waterway Ave, Suite 300 The Woodlands TX – 77380 Phone: +1-281-362-2773 69 "Prathiba Complex", 4th 'A' Cross, Koramangala Ind. Layout 5th Block, Koramangala Bangalore – 560095 Phone: +91-80-41127925/6 First Floor, Plot no. 131, Sector 44, Gurgaon-122002, Phone: +91 124 4420100 info@talentneuron.com www.talentneuron.com @talentneuron