Practical talent managemet ver 1

Practical Talent Management
HOS JAKARTA – HOS MEDAN

©SHRM 2013 bima@kotakpos.info ph. +628122862849 2
FACILITATOR
BIMA HERMASTHO
 Founder & owner PT. Freemind Management Consulting – Business Performance Improvement Consulting
http://www.freemind-consulting.com
 Commissioner of PT RMT – an EPC & vendor of Exxon Mobil Oil Indonesia (EMOI Cepu), PT. Patra Tri Daya Group, PT.
Indosigma Quality, PT. Alfa Matrixindo, PT. Beka Makmur, Jakarta
 Founder Indonesian Balanced Scorecard School (http://www.bsc-indonesia.com) & Indonesian Six Sigma School
(http://www.sixsigma-indonesian.com) - both are free online course in Balanced Scorecard and Six Sigma.
 Founder Indonesian Human Capital Institute, a free online HRM course (http://sdm-indonesia.net)
 Professional experiences: various positions from Management Trainee, HR Manager, TPM Training Manager, OD Senior
Manager, Human Capital & OD Director in local and global companies (PT. Teleperformance Indonesia, PT. Multi Bintang
Indonesia Tbk, PT. Coats Indonesia , PT. Polysindo Eka Perkasa – Asia Pacific Fibre, etc)
 Active & registered member: SHRM (American Society for HRM), ASTD (American Society for Training and Development), ASQ
(American Society for Quality) & ISSP (International Six Sigma Professional Society)
 Doctorate degree in “Strategic HRM & Total Quality Management” – UNDIP
 Certified Balanced Scorecard Professional
 Certified Lean Management Professional
 Certified Global Professional in HRM
 Certified Six Sigma Black Belt
 Certified Kaizen Professional
 TPM (Total Productive Management) Trainer
 Certified Mediator on ADR (Alternative Dispute Resolution)
bima@freemind-consulting.com
+62 8122862849
http://www.bsc-indonesia.com
http://www.sdm-indonesia.net
http://www.freemind-consulting.com

©SHRM 2013 bima@kotakpos.info ph. +628122862849
Outline
• Talent Management Fundamental
• Talent Management Toolkit: Competency
• Talent Management Toolkit: Performance Alignment
Review (PAR)
• Talent Review & Rating Calibration
• Talent Development Program & Retention Strategy
• Practical Software :
> Organization Plus (Charting & Modelling)
> Organization Publisher (Charting, WF Analytics & 9 Box Grid)
3

What is Talent Management?
The purpose of TM is to ensure that the right supply of talented
workforce is ready to realize the strategic goals of the organization
both today and in the future
Organization’s efforts to attract, select, develop, and retain key talented
employees in key strategic positions.
Talent management includes a series of integrated systems of
 recruiting,
 performance management,
 maximizing employee potential, managing their strengths and
developing
 retaining people with desired skills and aptitude
5

Talent Management
• TM introduced by Mc Kinsey consultants, late
1990’s
• TM is identified as the critical success factor in
corporate world
• TM focuses on
> differentiated performance: A, B, C players
influencing company performance and
success
> identifying key positions in the organization
!!! Surveys show that firms recognize the
importance of talent management but they lack
the competence required to manage it
effectively
6

What is Talent?
According to McKinsey; talent is the sum of
• a person’s abilities,
• his or her intrinsic gifts,
• skills, knowledge, experience ,
• intelligence,
• judgment, attitude, character, drive,
• his or her ability to learn and grow.
7

Who are Talented People?
• They regularly demonstrate exceptional ability and achievement
over a range of activities
• They have transferable high competence
• They are high impact people who can deal with complexity
(Robertson, Abbey 2003)
8

Why Organizations Need Talent
Development?
• To compete effectively in a complex and
dynamic environment to achieve
sustainable growth
• To develop leaders for tomorrow from
within an organization
• To maximize employee performance as
a unique source of competitive
advantage
• To empower employees:
 Cut down on high turnover rates
 Reduce the cost of constantly hiring
new people to train
9

Talent Management Model
• There are different approaches to talent
management in organizations
• A successful TM model has to link
1. TM creed (culture, values, expectations) with
2. TM strategy and
3. TM system. (Lance and Dorothy Berger, 2011)
The values, expectations and elements of
> the desired culture and
> the business excellence
should be embedded in HR systems as selection
criteria, competency definitions, performance and
promotion criteria and development processes.
10

The Talent Creed
• “A TM creed is the set of core principles, values and mutual
expectations that guide the behavior of an institution and its
people”
• It describes in general terms what types of people are expected
to work in the organization and what type of a culture is desired
to achieve success
11

The Talent Strategy
Describes what type of people the organization
will invest in and how it will be done
Besides the specific elements of their creed, the
talent strategy of all high performing
organizations should have these directives:
1) Identify key positions in the organization (not
more than 20, 30 %)
2) Assess your employees and identify the high
performers (classify according to their current
and future potential)
3) Retain key position backups
4) Make appropriate investments (select, train,
develop, reward)
12

Assessing the Employees
 Superkeepers- greatly exceed expectations
(3-5%)
 Keepers – exceed expectations (20 %)
 Solid citizens- meet expectations (75 %)
 Misfits- below expectations (2-3 %)
(Berger and Berger, 2011)
13

Allocating Investments in People
Superkeepers- receive about 5 % of all the resouces; need very
high recognition, compensate much more than the pay market,
promote very rapidly
Keepers –receive about 25 % of all the resources, need high
recognition, compensate more than the pay market, promote
rapidly
Solid citizens- receive about 68 % of all the resources, need
recognition, compensate at the market level or just above
Misfits- receive about 2 % of all the resources for some,
compensate at below market average
14

Talent Management System
Implementation program of the talent strategy
which has a set of processes and
procedures
(1) assessment tools
(2) multi-rater assessment
(3) diagnostic tools
(4) monitoring processes
If the management is not willing to use
assessment in their organizations they
can’t do talent management
15

Assessment Tools for TM
The five assessment tools should be linked to ensure that each
assessment is consistent with the four other evaluations
• Competency Assessment
• Performance Appraisal
• Potential Forecast
• Succession Planning
• Career Planning
16

Multi-Rater Assessment
• Employee. The owner of the career plan that is aligned with the
succession plan
• Boss. The primary assessor
• Boss’s boss. The key link in the vertical succession and career
plan
• Boss’s peer group. Source of potential new assignments in the
same or other function
17

Diagnostic Tools
SuperkeeperTM reservoir. SuperkeepersTM are employees whose
performance greatly exceeds expectations, who inspire others to greatly
exceed expectations, and who embody institutional competencies.
Keeper Key position backups. The “insurance policies” that ensure organization
continuity. Every key position should have at least one backup at the
“Keeper” (exceed job expectations) level.
Surpluses. Positions with more than one replacement for an incumbent. While
ostensibly a positive result of the talent management process, it can be a
potential source of turnover and morale problems if the replacements are
blocked by a non-promotable incumbent and/or there is no realistic way
most of the promotable replacements can advance.
Voids. Positions without a qualified backup. Determine whether it will transfer
someone from the surplus pool, develop alternative candidates, or recruit
externally.
Blockages. Non-promotable incumbents standing in the path of one or more
high-potential or promotable employees.
Problem employees. Those not meeting job expectations (measured
achievement or competency proficiency). Give opportunity to improve,
receive remedial action, or be terminated. The time frame should be no
longer than six months.
(Lance and Dorothy Berger, 2011)
18

Monitoring Processes
Evaluate the results of talent management system
on a regular basis for
• quality,
• timeliness and
• credibility
19

Talent Management Toolkit: Competency

What is competency?
Competencies are the core elements of talent management
practices
They are the demonstrable and measurable knowledge, skills,
behaviors, personal characteristics that are associated with or
predictive of excellent job performance.
Examples
> Adaptability, teamwork, decision making,
customer orientation, leadership, innovation
etc.
21

Competencies and Definitions
Action Orientation
Targets and achieve results,overcomes obstacles, accepts
responsibility, creates a results-oriented environment.....
Interpersonal Skill
Effectively and productively engages with others and
establishes trust, credibility, and confidence with them
Creativity/Innovation
Generates novel ideas and develops or improves existing and
new systems that challenge the status quo, takes risks, and
encourage innovation
Teamwork
Knows when and how to attract, develop, reward, be part of,
and utilize teams to optimize results. Acts to build trust,
inspire enthusiasm, encourage others, and help resolve
conflicts and develop consensus in supporting
higperformance teams
22

Why Competencies?
The challenge is to identify which competencies the organization
expects to see in their people
The starting point of the model is the creed (values, principles,
expectations) and the business strategies
 Through a competency model the organization sends a consistent
message to the workforce about “what it takes” to be successful in
the job
 Helps employees understand what helps drive successful
performance
 The Competency Model approach focuses on the “How” of the job.
 Competency model is behavioral rather than functional, focuses on
the people rather than jobs
 Competency models are outcome driven rather than activities (Job
descriptions focus on activities, competencies focus on outcomes)
 Integrates HR strategy with business strategy –both focus on
outcomes
23

Why Competencies?
The competency model serves as the foundation upon which all
workforce processes are built.
Competencies promote alignment of
talent management systems by
creating a common language that
enables these systems to talk with each
other! That is, results of one TM system
is used as the input data for the
following TM system.
24

The Competency Model
• The Competency Model identifies
usually three groups of competencies:
> Core competencies for the entire organization to
shape the organizational capabilities and culture
required to achieve the strategic goals(5 or 6)
> Leadership competencies for the management
teams of various levels for selection, career
planning and development
> Functional (technical)competencies (specific for
each job family)
25

Developing a Competency Model
 Use commonly available “ready to use” models with small
adjustments for your organization
 Develop own competency model with help of consultants
 Behavioral Benchmarking compare superior performers with
other best people in the organization and in other benchmark
companies
26

Developing Organization’s Own Competency Model
 Overview of current tasks and responsibilities
 Come to agreement about what successful
“outcome driven” performance looks like
 Review of competency library and selection of
“must haves” for the position
 Rank top competencies as demonstrated by
exemplary (superior) performers
 Identify of those competencies that align with the
vision, mission and strategic plan of the
organization
 Verify the competencies with a larger sample of
the organization
27

Choosing Competencies
Before choosing competencies in an
organization following requirements must
have been completed:
• Establishment of vision, mission, values
• Strategic business goals
• Identification of the tasks, responsibilities
and outcomes expected from each position
• Identification of the superior (exemplary)
performers
• Satisfactory competency library
28

Talent Management
TALENT=COMPETENCE+COMMITMENT+
CONTRIBUTION
• Being competent is not only enough to be a talent
• The competent person should be committed to the
causes and goals of the organization
• And should be able and willing to contribute to the
success of the organization
So, developing your talent is not enough, the
organizations need to take all the measures to
motivate, reward their talent pool to gain their
commitment and contribution.
Retention is also essential to gaurantee future alignment
of the talent with the right key positions
29

30

• Expectations for the future. Businesses should identify
> Job roles
> Spesific objectives
> Competencies
• Capabilities to meet the expectations
• Work environment
> Managerial support
> Rewards and recognition
> Removing barriers
• Feedback systems needed to
> Focus
> To keep on track
> Develop
31

LEADERSHIP TALENT MODEL
EVALUATE ORGANIZATIONAL TALENT
CREATE
FEEDBACK-
BASED PLANS
DEVELOP
TALENT
PLACE TALENT
STRATEGICALLY
What do we need?  Where?  What do we have?  Are we aligned with strategy?
LEADERSHIP VALUES & BEHAVIORS
• What are our
strengths and
needs?
• What top talent
development is
needed?
• How will we
develop our top
talent?
• What resources
are needed?
• How will the
resources be
made available?
• Are we placing
people to
maximize their
potential?
• Are our placement
actions aligned
with our strategy?
STRATEGIC DIRECTION
Infrastructure (Delivery, Communications, Integration) & Metrics
MANAGE
PERFORMANCE
• How is our
top talent
performing?
– Results
– Values &
Behaviors
• Are incentives
aligned with
performance
goals?
32

Talent Management Cycle
33

Talent Management Process
Organization
Analysis
-Job descriptions
-Job spesifications
Assessing the Emloyees
A B C D
Potential
Candidates
Performance
Evaluation
Buss. Results
Personal
Development
Activities
Career
Committees
Potancial Candidates
and
Succession Lists
Approval
of the
Lists
Analysis
Assessment
Development
Talent
Development
Programs
January - March April May on......
34

Structure of a Talent Management Program
• Building Block 1: Identification and assessment of
competencies
• Building Block 2: Performance appraisals
• Building Block 3: Succession and career planning
• Development of talent (coaching, mentoring, training)
• Linking compensation with the program (reward and
motivate)
• Targeting culture as an important driver of TM programs
• Secure senior executives’ commitment to make the talent
management model work
• Evaluate the results of talent management system on a
regular basis
35

Integrated Functions of TM
• Performance appraisals, assessments of potential, competency
evaluations, career planning, and replacement planning (the
core elements of talent management) should be linked to each
other.
• Stand alone functions are destined to end with failure
36

Talent Management Toolkit:
Performance Alignment Review (PAR)

Performance Management Goals
• Create a common performance culture
• Enhance individual, team and organizational
effectiveness
• Align individual performance with business goals
• Create a culture of on-going feedback and development
• Create a consistent methodology to assess employee
contribution
• Provide information to help determine
> Compensation decisions
> Promotions
> Rewards & Recognition
> Developmental Opportunities
38

Performance Cycle
Corporate Goal
Setting & Alignment
Goals Flow Down
Setting
Expectations
Mid-Year
Review
Final Review
Rewards
$
Ratings Calibration
Meeting
Organization
Goals, Priorities,
Imperatives,
Behaviors
Perform, Monitor,
Feedback
Next Level Mgr
HRMgr
Mgr Mgr
Development
Process
39

Performance Review Tempo
Q4 Q1 Q2 Q3 Q4
Sept-Nov Dec-Feb Mar-May Jn-AugJn-Aug
Goal setting & alignment
Perform, monitor, feedback
Mid-year review
Final review
Sept-Oct
40

Example Behaviors
Sustained Profitability: Reduce operating expenses;
strengthen balance sheet; eliminate duplicate structures;
improve effectiveness and efficiency
Asset Velocity: Increase inventory turns; improve cash-
to-cash cycle
Execution Excellence: Reduce complexity; common
repeatable processes; improve overall quality and
responsiveness; collaborate better with each other;
streamline our organization
Revenue Growth: Continue to win new business; secure
follow-on business
Restore Employee Morale: Themes include change;
flexibility; creating an environment of open & honest
feedback; learning quickly; accepting new challenges
• Integrity
• Team Player
• Champion Change
• Coach Others
• Continuously Learn
To accomplish our Business Priorities…
We must create a “XYZ Co”
culture through demonstration of
the right behaviors…
Organization
Goals, Priorities,
Imperatives,
Behaviors
41

Business Priorities & Behaviors
Integrity
Team Player
Coach Others
Champion Change
Continuously Learn
Behaviors
How work is accomplished
Results
What work is accomplished
Performance to
Expectations
Business
Contributions
Equal Emphasis on Results & Behaviors
42

Sample Behavioral Description
Individual Contributor Manager of Others Executive
• Asks for & offers help to others
when needed.
• Understands team &
organizational goals.
• Places team & organizational
goals before personal goals.
• Shares best practices with
others.
• Stays involved; actively
participates.
• Treats others with dignity and
respect
• Set expectations for cross
functional; cross business
cooperation
• Promote the use of own and
others’ capabilities to other
functions
• Proactively share information
across organizational boundaries
• Promote a team culture,
recognizing the contributions of
all team members
• Share best practices across
organizational boundaries
• Treat others with dignity and
respect
• Address behavior in others that
may damage constructive
relationships
• Remove organizational barriers
to collaboration and teamwork
• Share best practices across
organizational boundaries
• Achieve business results
through collaboration with
others; place higher priority on
Solectron goals than own
personal goals
• Offer resources, even when it
hurts, when it will help others
achieve company goals
• Treat others with dignity and
respect
• Actively engage with community
and/or charitable organizations
Team Player
Work effectively and cooperatively with others; establish and maintain good working relationships; cultivate
an active network of relationships; identify opportunities and take action to build strategic relationships.
43

Performance Concept
A00-04050117
Behaviors
Performance
Didn’t Meet Meet
Didn’tMeetMeet
Behavior Issue Balance
Results &
Behavior Issue
Results Issue
44

Performance = 5
Behaviors = 1
Performance = 5
Behaviors = 2
Performance = 5
Behaviors = 3
Performance = 5
Behaviors = 4
Performance = 5
Behaviors = 5
Performance = 4
Behaviors = 1
Performance = 4
Behaviors = 2
Performance = 4
Behaviors = 3
Performance = 4
Behaviors = 4
Performance = 4
Behaviors = 5
Performance = 3
Behaviors = 1
Performance = 3
Behaviors = 2
Performance = 3
Behaviors = 3
Performance = 3
Behaviors = 4
Performance = 3
Behaviors = 5
Performance = 2
Behaviors = 1
Performance = 2
Behaviors = 2
Performance = 2
Behaviors = 3
Performance = 2
Behaviors = 4
Performance = 2
Behaviors = 5
Performance = 1
Behaviors = 1
Performance = 1
Behaviors = 2
Performance = 1
Behaviors = 3
Performance = 1
Behaviors = 4
Performance = 1
Behaviors = 5
5
4
3
2
1
Behaviors
Performance
Overall Rating Guide
1 2 3 4 5
Exceptional
Commendable
Fully Effective
Needs
Improvement
Unacceptable
45

Rating Distribution
• Managers have the flexibility to adjust distributions within
guidance. Total distribution must equal 100%.
• Distribution is to be applied when population sizes reach 100 or
more. Small departments are not expected to meet the
distribution.
• Managers can include employees that have been managed out of
the organization during the review period. These situations are
limited to performance issues – not employees who have left in
good standing.
From To Rules
5 Exceptional 10% 0-10% 5 cannot exceed
10%; together
cannot exceed 30%4 Commendable 20% 20-30%
3 Fully Effective 60% 50-60% Can be adjusted up
or down
2 Needs Improvement 5%
10% + Cannot be less
than 10%1 Unacceptable 5%
46

Talent Review & Rating Calibration

Calibration Concept
• The purpose is to create a review process that establishes a
more consistent, equitable, and accurate performance
evaluation and feedback environment across manager groups
within functions.
• The process facilitates a common understanding and method to
arrive at final ratings
• Distribution of ratings is not the goal
48

Meeting Participation
EVP
VP
Director
Supervisor
Individual Contributor
Manager
• Next Level Review
• All “manager of managers”
participate with their direct
manager (peer group)
• Matrix reporting
relationships not included,
only direct reporting
relationships
• Organization structure will
drive number of meetings
required
• Sequence of meetings not
important (e.g., “top down”
vs. “bottom up”)
49

Participation Example
Function
Leader
Direct
Report
Direct
Report
Direct
Report
Next Level
Leader
Direct
Report
Direct
Report
Direct
Report
Calibration Meeting
Calibration Meeting
Etc…
Important: Functional reviews; not site or region!
50

Rating Profiles – Optional Resource
1 = Unacceptable
EXCEPTIONAL
• Top 10% of performers. Clearly stands out from others; exceeds all expectations,
measures and targets against established objectives and/or standards
• Self starter who takes initiative and works independently with minimum supervision;
produces high quality products with very little rework required; always delivers on
commitments
• Proactively assumes additional responsibilities; willingly works outside of job scope for
the good of Solectron; consistently surprises with level of effort, quality work,
improvement suggestions
• Proactive problem solver; looks for improvement opportunities with customers and/or
process; recognizes what needs to be done and generates creative solutions
• Clearly understands and supports organization strategy and priorities; understands how
own work contributes to the success of Solectron
• Recognized expertise; others seek out this person for guidance and counsel
• Works across functions and organization boundaries to build strategic relationships;
valued team player who builds effective partnerships
• Considered a change champion; always open to new ideas and stimulates others to
embrace change; model of flexibility, accepts changes and redirection as improvement
opportunities
• Openly shares information with others for the good of Solectron
• Builds trusting relationships; provides constructive and honest feedback to help others
succeed; accepts feedback from others and acts on the feedback for self-improvement
• Willingly takes on new challenges; stretches current capabilities; seeks new learning
opportunities
2 = Needs Improvement
3 = Fully Effective
4 = Commendable
5 = Exceptional
51

Rating Calibration Tool – Data Entry
Empl
ID
Comdef
Site
(Optional) Last Name First Name
Job Grade
(Optional)
Status (T
for
Termed)
Comdef
Site
Empl
ID Last Name First Name Objectives Behaviors Final NP Scores
Manager A Employee 1 3 3 3
Manager B Employee 1 5 4 5
Manager B T Employee 2 3 2 2
Manager C Employee 1 3 3 3
Manager C T Employee 2 3 2 2
Manager Employee Ratings
52

Rating Calibration Tool – Distribution
Ratings Distribution - Numbers
0
2
12
4
2
0
2
4
6
8
10
12
14
1 2 3 4 5
Rating
NumberofEmployees
Ratings Distribution - Percentages
0%
10%
60%
20%
10%
0%
10%
20%
30%
40%
50%
60%
70%
1 2 3 4 5
Rating
PercentageofEmployees
53

Talent Development Program and
Retention Strategy
54

POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
55

Cell 9
Highest Performance
Highest Potential
Total Compensation Keep well ahead (25%) of market. Grant long-term incentives.
Retention
Assign a member of top management to monitor satisfaction and
engagement.
Engagement
Assign to key committees, teams, networks; special invitations to meetings;
provide opportunities to represent Company in community and industry
forums.
Exposure
Arrange exposure to significant and relevant senior management/board
members, Executive Development programs.
Assessment
Provide complete continuous assessment, evaluation and feedback
alternatives.
Coach Make coaches available for key skill development.
Mentor Assign a senior level mentor.
Assignment
Move aggressively through a series of targeted, challenging, diverse and
broadening jobs every 24-36 months.
Development
Use challenging jobs to enhance current skills and develop others.
Consider as candidate for Company sponsored graduate or executive
development programs.
Is now performing with the best. Has the ability to take on major stretch assignments in
new areas. Should be positioned to become a top leader in the future.
Talent Management Plan
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
56

Cell 8
Middle Performance
Highest Potential
Total Compensation Keep ahead (10%) of market. Grant long-term incentives.
Retention Assign a member of top management to monitor satisfaction and engagement.
Engagement
Assign to key committees, teams, networks; special invitations to meetings; provide
opportunities to represent Company in community and industry forums.
Exposure Arrange exposure to significant and relevant senior management.
Assessment Provide complete continuous assessment, evaluation and feedback alternatives.
Coach Make coaches available for key skill development.
Assignment Move through a series of challenging and diverse jobs every 24 – 36 months.
Development
Use challenging jobs to enhance current skills and develop others. Consider as
candidate for Company sponsored graduate or executive development programs.
Consistently meets expectations and has the ability to take on new and different
challenges. Could be a senior leader in time.
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
57

Cell 7
Highest Performance
Middle Potential
Total Compensation Keep well ahead (20%) of market. Enhance short-term incentives.
Retention
Assign a senior manager to monitor satisfaction and treatment. Hold
supervisor accountable to retain.
Engagement Assign to key committees, teams, networks; special invitations to meetings.
Exposure
Facilitate and support internal and external networking in field of
specialization; senior management should meet and know.
Assessment Provide learning agility and competency assessment.
Mentor Assign as a performance mentor to others.
Assignment
Keep in current assignment and role as long as possible and look for
additional assignments for potential development.
Development
Put into a learning agility enhancement program or consider as candidate for
Company sponsored graduate or executive development programs.
Consistently performs with the best and can do more.
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
58

Cell 6
Lowest Performance
Highest Potential
Total Compensation Keep at midpoint of market.
Retention
Assign a senior manager and HR professional to monitor satisfaction and
treatment. Hold supervisor accountable for performance support.
Engagement
Assign to key taskforces, study groups, networks; special invitations to
meetings.
Exposure
Facilitate and support internal networking; senior management should
meet and know.
Assessment
Provide complete continuous assessment, evaluation and feedback
alternatives.
Coach Provide coaches for functional and direct job skills.
Assignment
Monitor performance in current assignment. Look for a closer fit for the
next assignment.
Development
Use diversity of jobs to build performance capabilities; monitor
performance closely.
May be new in organization, assignment or in a stretch developmental job or role. May not be in a
good fit job. Should catch up in time. Has the long term potential to be among the best.
Talent Management
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
59

Cell 5
Middle Performance
Middle Potential
Total Compensation Keep at market mid-point.
Retention Hold supervisor accountable to monitor satisfaction.
Assignment Use to fill in gaps and play multiple roles.
Development
Choose either a performance enhancement (move to cell 7) or
potential enhancement path (move to cell 8).
Always does a good job (meets expectations). Can fill multiple roles. Versatile. Dependable.
Adaptable. Flexible. Utility player.
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
60

Cell 4
Highest Performance
Lowest Potential
Total Compensation
Keep ahead (25%) of market. Use soft rewards and recognition. Grant
long-term incentives.
Retention Assign a senior manager to monitor satisfaction and treatment.
Engagement Assign to key committees, team, networks; special invitations to meetings.
Exposure
specialization; represent Company in industry related professional groups,
benchmarking panels.
Assessment Provide technical and functional skills assessment.
Mentor Assign a as a functional / technical mentor to others.
Coach Assign to teaching and coaching activities.
Assignment Keep in current assignment and role as long as possible.
Development Support honing functional / technical expertise.
Consistently performs with the best. Knows the job and role extremely well. Plays a
vital role in producing organizational results. Seasoned. Irreplaceable. Solid.
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
61

Cell 3
Lowest Performance
Middle Potential
Total Compensation Target 5-10% below market.
Assessment
Provide continuous performance assessment, evaluation and
feedback for alternatives.
Assignment Monitor on current assignment until performance improves.
Development
Put on performance improvement plan, with specific functional
feedback and coaching.
May be new in assignment or in a stretch developmental job or role. Might be misplaced.
Should move up in performance in time. Has the potential to perform better.
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
62

Cell 2
Middle Performance
Lowest Potential
Total Compensation Keep at market.
Retention Hold supervisor accountable for retention.
Exposure
specialization.
Assessment
Provide technical and functional skills assessment along with
every third year general skills assessment and learning agility
options.
Mentor Assign a functional / technical mentor.
Assignment Keep in current assignment and role as long as possible.
Development
Select either a performance improvement path (to cell 4) or a
learning agility enhancement path (to cell 5).
Performs up to standard (meets expectations). Limited upside outside current areas of
expertise and fields of specialization.
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
63

Cell 1
Lowest Performance
Lowest Potential
Total Compensation Freeze pay. Hold incentives.
Retention If not correctable, out-counsel. Set a time limit.
Assignment Move into better fit assignment or outplace.
Development Put on a performance improvement plan.
Consistently struggles to perform up to standard. Has trouble keeping up.
POTENTIAL
P
E
R
F
O
R
M
A
N
C
E
1
2
3
4
5
6
7
8
9
64

Talent Retention:
Top 5 Drivers to Attract Employees of Choice
(Towers Perrin) (Generation X/Y)
90%
72%
83%
52%
38%
0%
20%
40%
60%
80%
100%
Driver
Career Advancement Work-Life Balance Pay for Performace
Starting Pay Health-Care Benefits
65

Talent Retention:
Top 5 Drivers to Retain Employees of Choice (Towers Perrin)
(Generation X/Y)
67%
82%
43%
72%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Driver
Effort of Organization to Retain Quality Staff Manager Motivation
Reputation of Employer Opportunities to Learn
Fairly Compensated for the Work
66

Talent Retention:
Top 5 Drivers of Employee Engagement
(Towers Perrin) (Generation X/Y)
82%
26%
67%
91%
41%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Driver
Improve My Skills Reputaion of Employer
Management Interest in Employees Delegated Decision Making
Consistent Salary Criteria
67

Total Rewards “Tools”
External Position
Equity
Internal Position
Equity
Employee Pay and
Recognition
Equity
Total “Non-Cash”
Compensation –
Benefits/
Retirement
Ability to Fund all
Aspects of the
Program
• Competitiveness
in terms of
Geography.
• Competitiveness
in terms of industry.
• Level of
competitiveness by
organization and
position.
•Recruitment and
Retention Trends.
• Determine
organizational value
of positions
regardless of
market value.
•Determine value of
positions not
matched to the
market.
•Determine the
differences among
“families” of jobs.
• Determine
internal pay
levels of
employees
based on
seniority,
performance, or
other methods.
• Determine
appropriate
methods to
recognize
employee
performance
and
contributions.
• Understanding
the impact of
“Generations”
in
compensation
decisions.
• Addressing the
rising cost of
insurance in plan
design.
• The need to have
more employee cost
sharing.
•Understanding
pressures from
organized labor.
•The need for
flexibility in
addressing
“generational”
differences in both
benefit and pension
design.
•Impact of
fluctuating stock
market on pension
design strategies.
•Funding all
aspects of the
program
understanding the
impact of current
industry trends.
•Determining the
“ROI” of all
programs to
demonstrate the
impact on effective
recruitment and
retention of staff
required for the
organization to
succeed.
•Proactively
developing
strategies that
reduce cost impacts
while remaining
effective.
68

Review of the “Generations”
• BOOMERS (born 1945 – 1965)
• Get involved because it is the right thing to do, because one
should give back to their community
• Hold a strong sense of hope
• Value tradition, teamwork and loyalty
• Have time to give to volunteer, as many women stayed home to
raise a family
69

• GENERATION X (born 1965 – 1980)
• Drawn to opportunities that offer them opportunities to learn, enjoy,
and be recognized
• Have been described as tough to motivate, too expectant, lazy,
skeptics and loners
• Describe themselves as caring, committed and seeking
opportunities for learning and leadership
• Value frequent feedback on their performance, recognition,
increased responsibility and exposure to decision-makers
• Attracting and retaining these members will depend upon an
organization’s ability to be flexible, adaptive and responsive to their
needs.
70

• GENERATION Y (born 1980 – 1994)
• Most valued traits are individuality and uniqueness
• Have a global and diverse perspective that other generations did
not have
• Can be cynical and driven by a need for instant gratification
• Strengths are their adaptability, innovativeness, efficiency,
resiliency, tolerance and commitment
• Challenge is motivating them to get involved and retaining them for
a sustained period
• To engage this group, organizations need to tell the truth, explain
the why, tune in to their frequency, make them a star, and look for
rewarding opportunities
71

Thank you.
73

Practical talent managemet ver 1

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