Engage Employees with Career Planning and Succession Development $295 Info-Tech Research Group
Executive Summary <ul><li>Baby Boomer retirement and recent layoffs challenge IT retention. L ow availability of recent IT...
Baby Boomer retirement, low enrollment in IT programs and  recent layoffs increase risks to IT recruitment and retention. ...
0 Info-Tech Research Group Availability of Business Skills 32% Business Management Support 34% Economic Conditions 44% Emp...
Replacing an employee costs 50% to 200% of that person’s annual salary. Succession development can cut this to 5-10%. <ul>...
Talent management software is powerful, but not the most effective tool for many enterprises. Info-Tech Research Group <ul...
Start with Info-Tech’s “Succession Development Planning Tool” to assess areas for both immediate and long-term action. <ul...
Use a Performance vs. Potential Matrix to quickly plot and visualize an individual’s potential for promotion. Info-Tech Re...
Collaborate with each candidate to figure out how to get from A to B, then map a tailored career development plan to get t...
Development does not stop once the promotion happens. Provide end-to-end transition support and fix performance problems. ...
Survey Demographics (e) Info-Tech Research Group
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Succession planning 1-1-1 succession development

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Succession planning 1-1-1 succession development

  1. 1. Engage Employees with Career Planning and Succession Development $295 Info-Tech Research Group
  2. 2. Executive Summary <ul><li>Baby Boomer retirement and recent layoffs challenge IT retention. L ow availability of recent IT graduates is the biggest obstacle to building a stable and reliable IT workforce. </li></ul><ul><li>Replacing an employee costs 50-200% of that person’s annual salary. Succession development cuts these costs to less than 5-10% of salary if the right strategy, policy and culture are in place. </li></ul><ul><li>Begin your succession development rollout with staff contingency planning for critical roles, and then expand to include long-term career development. </li></ul><ul><ul><li>Have HR own the succession development process to gain buy-in and standardization. </li></ul></ul><ul><ul><li>Address vulnerabilities throughout the ranks. Losing a manager brings longer-term pain, but it’s the loss of technical people that can create a near-term crisis. </li></ul></ul><ul><ul><li>Pinpoint candidates that have the flexibility, diversity and interest in being successors. Use a Performance vs. Potential Matrix to visualize potential for promotion. </li></ul></ul><ul><ul><li>Collaborate with candidates to map tailored career development plans. Different “manager versus tech guru” career paths exist across IT, so don’t limit options. </li></ul></ul><ul><ul><li>Offer diverse training mechanisms, including preparation for the political elements of future roles. Hold staff and supervisors accountable for hitting development goals. </li></ul></ul><ul><li>Development does not stop once the promotion happens . Set success measurement metrics, provide end-to-end transition support, and fix performance problems. </li></ul>Info-Tech Research Group
  3. 3. Baby Boomer retirement, low enrollment in IT programs and recent layoffs increase risks to IT recruitment and retention. <ul><li>The unexpected departure of a critical staff member can constitute a crisis, but IT staffing stability faces bigger challenges: </li></ul><ul><li>The pending Baby Boomer exodus will leave leadership and expertise gaps in the IT ranks. </li></ul><ul><li>The share of people aged 25-40 in the US workforce will drop 7% per year through 2020, creating huge vacancies (“Do You Know Where Your Talent Is?” Deloitte). </li></ul><ul><li>Enrollment in computer science programs has dropped steadily since the turn of the millennium as IT is seen increasingly as a lifestyle versus a career choice. </li></ul><ul><li>Generation Y workers are unlikely to stay at an organization for more than a few years as they pursue more stimulating work and rapid promotion cycles. </li></ul><ul><li>Recruitment candidates hesitate to sign on with organizations that have recently gone through layoff action. </li></ul>0 Info-Tech Research Group Losing an employee is expensive. There’s a three-to six-month – sometimes a year – ramp-up time for the replacement. – IT Consultant “ ”
  4. 4. 0 Info-Tech Research Group Availability of Business Skills 32% Business Management Support 34% Economic Conditions 44% Employee Turnover 53% Availability of Recent Graduates from IT Programs 57% Availability of recent IT grads is the biggest current obstacle to building a stable and reliable IT workforce. Getting business management support to develop a team is surprisingly easier than attracting the fresh talent needed to build it. Succession development aids in keeping that hard-won talent instead of going through a difficult and costly external recruitment process. Great Obstacle N=120, Source: Info-Tech Research Group
  5. 5. Replacing an employee costs 50% to 200% of that person’s annual salary. Succession development can cut this to 5-10%. <ul><li>What are the benefits of succession development? </li></ul><ul><li>Avoid costs. Replacing someone, especially with an external candidate, brings costs in the areas of: </li></ul><ul><li>Headhunting and recruitment. </li></ul><ul><li>HR administration. </li></ul><ul><li>Productivity loss. It takes about six months for a typical employee to reach 100% productivity. </li></ul><ul><li>Missed opportunities. </li></ul><ul><li>Retain skills and knowledge. These are assets with real value that may be impossible to replace. </li></ul><ul><li>Prevent backfilling. Stop the unintended ripple effect that’s created down the ranks as employees act as stop-gaps for vacant roles. </li></ul><ul><li>Create fluidity. An “irreplaceable person” won’t be promoted, blocking advancement for those below. This forces a costly external search. </li></ul><ul><li>Improve engagement and retention. Reduce turnover by engaging and keeping talented people. Offer clear career paths and build a sense of team. </li></ul><ul><li>Remove vulnerability. Skill redundancy ensures business continuity if a key staff member leaves. </li></ul>Info-Tech Research Group Succession planning is a critical aspect of our business. It ensures that we always have the skill set and capacity to perform the functions we need to move forward. – VP of HR, Telecommunications Definition: Succession Development The structured and coordinated practice of identifying and preparing pools of internal talent to fill key positions, with the goal of meeting business objectives. “ “
  6. 6. Talent management software is powerful, but not the most effective tool for many enterprises. Info-Tech Research Group <ul><li>Full-scale talent management suites offer a wealth of tools, but are unnecessary for most enterprises. </li></ul><ul><li>Most suites include the following modules: </li></ul><ul><li>Talent acquisition. </li></ul><ul><li>Compensation management. </li></ul><ul><li>Performance management. </li></ul><ul><li>Learning and development. </li></ul><ul><li>Goal setting. </li></ul><ul><li>Succession management. </li></ul><ul><li>These suites typically start at $20,000 and can quickly climb to $500,000 for large implementations. </li></ul><ul><li>On-demand solutions are much more cost-effective entry points into the talent management software space. SuccessFactors , for example, costs $3,000 for set-up and $15-$60 per user per month. </li></ul><ul><li>For smaller enterprises, simple Word templates and Excel tools are effective enough for tracking succession development information. </li></ul><ul><li>See some of the tools that are available from Info-Tech: </li></ul><ul><li>IT Skills Inventory Tool </li></ul><ul><li>IT Leadership Skills Inventory </li></ul><ul><li>Annual Professional Development Plan </li></ul><ul><li>Quarterly Professional Development Progress Report </li></ul>Learn about the top three mistakes that IT leaders make and how to fix them, in the video, “Succession Development: Get it Right.”
  7. 7. Start with Info-Tech’s “Succession Development Planning Tool” to assess areas for both immediate and long-term action. <ul><li>This “Succession Development Planning Tool” will help you: </li></ul><ul><li>Identify individuals and roles that pose a skills gap threat, and the potential impact if that threat comes to pass through employee departure. </li></ul><ul><li>Focus your succession development efforts on the roles and individuals whose departure may present the greatest risk. </li></ul><ul><li>Evaluate staff members that have the potential to be strong successors using established criteria. </li></ul><ul><li>Focus your career development efforts on those individuals who have the potential to take over high risk roles. </li></ul>Info-Tech Research Group Formalizing succession efforts creates a safeguard for those under development in the event that the person overseeing their development leaves. A systematic and well-documented developmental track is more likely to be preserved regardless of who is running the show. Info-Tech Insight:
  8. 8. Use a Performance vs. Potential Matrix to quickly plot and visualize an individual’s potential for promotion. Info-Tech Research Group Shaky Solid Strong Shaky Star Poor Strong Solid Solid Performance Potential Low High High <ul><li>To use the chart on the left, assess an individual employee from “low” to “high” in terms of: </li></ul><ul><li>Actual on-the-job performance to-date. </li></ul><ul><li>Potential to learn and grow, including their willingness to engage in development activities. </li></ul><ul><li>The person’s plotted position on the chart will help you assess the amount of effort and investment it will take to make them succession-ready. The closer to “Star,” the less effort required. </li></ul>If an individual is not on a development track due to performance issues, then don’t waste anyone’s time. Seriously consider termination. . Info-Tech Insight:
  9. 9. Collaborate with each candidate to figure out how to get from A to B, then map a tailored career development plan to get there. <ul><li>Treat the training in the Career Development Plan like a contractual commitment. </li></ul><ul><li>Conduct a gap assessment that looks at what it will take to get the succession candidate to their target role. </li></ul><ul><li>This exercise will pinpoint opportunities and required effort. </li></ul><ul><li>Create an individualized Career Development Plan that maps targets, timeframes, obstacles, and actions. </li></ul><ul><li>Build in accountabilities. Link achievement of Plan objectives back to the performance evaluations of both the succession candidate and their supervisor. </li></ul><ul><li>Focus on obstacles beyond basic skills acquisition that could block the promotion path, such as: </li></ul><ul><li>Poor or false perceptions held by others. </li></ul><ul><li>Personal circumstances that limit options. </li></ul><ul><li>Get HR sign-off on the plan as part of the ongoing buy-in process. </li></ul>Info-Tech Research Group Succession planning drives the actions in employees’ career development plans. – CIO, Manufacturing “ “ <ul><li>Use Info-Tech’s “Career Development Plan” template to: </li></ul><ul><li>Establish career targets. </li></ul><ul><li>Identify career-building strengths and obstacles. </li></ul><ul><li>List must-do activities for career advancement. </li></ul>
  10. 10. Development does not stop once the promotion happens. Provide end-to-end transition support and fix performance problems. <ul><li>Succession development is an ongoing process: </li></ul><ul><li>The nuances of a given role won’t be fully understood by the candidate until he or she has actually experienced the role first hand. </li></ul><ul><li>If you wait until someone is 100% ready to be promoted, then they’ll never get the hands-on experience they need. </li></ul><ul><li>Start preparing to promote a person when they reach the “80% ready” mark. </li></ul><ul><li>An employee in a new role might struggle. Either they were promoted too soon, suffered from poor transition support, or are in the wrong role entirely. </li></ul><ul><li>Stipulate a three-month probation period to support the transition and assess on-the-job performance. </li></ul><ul><li>If the candidate is clearly out of their depth, give them a graceful way out. </li></ul><ul><li>If at all possible, let the employee return to their previous position. They clearly excelled in their former role, so they still have value to deliver. </li></ul>Info-Tech Research Group Too often I’ve seen individuals move in or out, and it’s a cold hand-off. They don’t have an understanding of the team environment, expectations or politics. – CIO, Telecommunications “ “ <ul><li>Info-Tech’s “Role Transition Plan” template lays out the activities that must occur in order for an employee to successfully move out of an old role and into a new one, including: </li></ul><ul><li>Immediate new accountabilities and expectations. </li></ul><ul><li>Transition activities. </li></ul><ul><li>Current role handoff tasks. </li></ul><ul><li>New role orientation. </li></ul>
  11. 11. Survey Demographics (e) Info-Tech Research Group

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