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Strategic Talent Management_Employee Retention_Engagement

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Strategic Talent Management_Employee Retention_Engagement: Best practice criteria, principles and processes

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Strategic Talent Management_Employee Retention_Engagement

  1. 1. STRATEGIC TALENT MANAGEMENT, EMPLOYEE RETENTION AND - ENGAGEMENT CHARLES COTTER PhD, MBA, B.A (Hons), B.A www.slideshare.net/CharlesCotter HILTON GARDEN INN, MUSCAT, OMAN 24-26 SEPTEMBER 2019
  2. 2. • Objective #1: Strategic Talent Management • Objective #2: Employee Retention • Objective #3: Employee Engagement • Objective 4: Performance Management and Remuneration Governance • Objective 5: Succession Planning • Objective #6: Talent Management Metrics • Case study 3-DAY, TRAINING PROGRAMME OVERVIEW
  3. 3. AGREE OR DISAGREE? WHY?
  4. 4. • Individual activity: • Complete the statement by inserting one (1) word only. As a HR Manager, in order to effectively manage talent at Haya Water, I need to/to be .………………………………….. • Now find other learners with the same word as you. • Jot these words down on the flip-chart. • Each learner will have the opportunity to elaborate on their chosen word. INTRODUCTORY ACTIVITY
  5. 5. OBJECTIVE #1: Strategic Talent Management
  6. 6. DEFINING THE FUNDAMENTAL HRM CONCEPTS • Strategic HRM • Integrated Talent Management • Talent/HR Planning • Strategic HR Planning • Strategic HR Business Partnering
  7. 7. INTEGRATED TALENT MANAGEMENT
  8. 8. INTEGRATED TALENT MANAGEMENT ARCHITECTURE/SYSTEM
  9. 9. DEFINING WFP - GETTING IT “RIGHT”
  10. 10. STRATEGIC TALENT/HR MANAGEMENT
  11. 11. STRATEGIC HRM VALUE CHAIN
  12. 12. 6 HIGH PRIORITY STRATEGIC HRM OBJECTIVES AND RELATED ROLES • #1: Attract, acquire and select top talent - promote a competent and competitive workforce i.e. quality of hire; Role: Cognitive and Intelligent Talent Broker • #2: Transform to a digitally-enabled HRM operating model and power an Intelligent Enterprise i.e. design an automated Knowledge Management System; Role: Strategic Performance Advisor (SPA) • #3: Future-proof the organization, by developing a measurement culture and generating real-time predictive business analytics and –intelligence; Role: Digital Futurist and –Analyst • #4: Develop an agile High-Performance Organization (HIPO) culture and a high level of employee engagement; Role: Behavioural Economist and Career Navigator • #5: Mainstream HRM into core business processes, by offering business valued solutions to key organizational problems Role: Innovative solutions architect • #6: Develop a HRM Governance framework, processes, principles and promote an ethical organizational culture, espousing and enacting core company values. Role: Advocate, Custodian and Steward of governance and ethics
  13. 13. VIDEO CLIP • The 7 roles that business executives expect HRM to play • https://www.youtube.c om/watch?v=Cald7kzC gkc • Debriefing: Extract the lessons from this video clip
  14. 14. BUSINESS INTELLIGENCE (Level 3 of strategic HRM maturity – transformational) HRM STRATEGY (Level 4 of strategic HRM maturity – strategic) HRM GOVERNANCE (Level 1 of strategic HRM maturity – traditional) WORKPLACE ADVOCACY (Level 2 of strategic HRM maturity – transactional) STRATEGIC PERFORMANCE ADVISOR (Cotter, 2019) STRATEGIC TRANSACTIONAL CURRENT FUTURE-FOCUSED FRAMEWORK PREDICTIVE ANALTYTICS
  15. 15. STRATEGIC PERFORMANCE ADVISOR OPERATING MODEL (COTTER, 2019) • HRM Governance (e.g. HRM policies and procedures; HRM/people risk management, compliance with ethics and x17 King IV corporate governance principles; Human Capital reporting; promoting workplace democracy and HRM Auditing) – Level 1 of strategic maturity - transactional/current. ❑ Transition from level 1 to 2 – CRAFTING OF A HRM GOVERNANCE FRAMEWORK • Workplace Advocacy (e.g. Employee engagement; employee voice; EVP; employee retention; succession planning; creating a workplace culture of brand ambassadors; mainstreaming HRM and creating future-fit employees) – Level 2 of strategic maturity - transactional/future-focused. ❑ Transition from level 2 to 3 – FUTURE-PROOFING OF THE BUSINESS MODEL • Business Intelligence (e.g. competitive predictive HR metrics and analytics; future-proofing the business model; applying evidence-based HRM; creating HIPO; knowledge management and collaborative intelligence i.e. integrating and harmonizing AI, HI and BI and being trouble-shooting solutions architects) – Level 3 of strategic maturity - strategic/current. ❑ Transition from level 3 to 4 – APPLYING PREDICTIVE ANALYTICS • HRM Strategy (e.g. embedding HRM strategy into business strategy; the use of strategy maps; adopting a strategic mindset and applying strategic management principles and processes) – Level 4 of strategic maturity - strategic/future-focused.
  16. 16. DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR SPA • https://www.surveymonkey.com/r/BXRKRXG • #1 Embedding HRM strategy in business strategy and able to translate that strategy into deliverable actions • #2 Well-defined, implemented and reported HRM performance and ROI metrics (creating credibility and accountability) • #3 Generating business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions) • #4 Offering a professional, value-adding business proposition sensitive to and supportive of business needs, interests and strategic priorities • #5 Ongoing line management consultation, engagement, coaching and building trusting, collegial and mutually beneficial business relationships
  17. 17. DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR SPA • https://www.surveymonkey.com/r/BXRKRXG • #6 HR Management and practitioners possess business and industry knowledge, acumen and insight • #7 HRM collaborates with line management to broker meaningful and impactful business solutions • #8 HRM processes, systems and practices are horizontally integrated (bundled), agile, responsive and stream-lined (that enhance productivity and efficiency) • #9 HRM is a transformational initiator, driver and implementer of business change • #10 HRM is technology-savvy innovator, enabling and leveraging best practices (e.g. CoE; Shared Services and e-HRM)
  18. 18. LEARNING ACTIVITY 1 • Individual Activity: • Critically review and evaluate your current HR business partnering processes and function against the ten (10) best practice criteria. Refer to the link: https://www.surveymonke y.com/r/BXRKRXG • Group Discussion: • Identify gaps and recommend improvement strategies.
  19. 19. HRM STRATEGIC MATURITY MODEL (Cotter, 2017) Level 4: Strategic HRM/L&D (80%+) Level 3: Transformational HRM/L&D (65-79%) Level 2: Transactional HRM/L&D (41-64%) Level 1: Traditional HRM/L&D (0-40%)
  20. 20. STRATEGIC PERFORMANCE ADVISOR (SPA) – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 11-100% 59% 61% 17% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q2: Your organization's HRM function has well-defined, implemented and reported HRM performance scorecards and ROI metrics (creating credibility and accountability) 1 50% Q3: Your organization's HRM function generates business intelligence e.g. predictive and strategic analytics (that shapes, informs, guides and ultimately, influences strategic business decisions) 2 50% Q10: Your organization's HRM function is technology-savvy innovator, enabling and leveraging best practices (e.g. CoE; Shared Services and e-HRM) 3 53%
  21. 21. STRATEGIC PERFORMANCE ADVISOR (SPA) – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q4: Your organization's HRM function offers a professional, value-adding business proposition sensitive to and supportive of business needs, interests and strategic priorities 10 65%
  22. 22. MERCER (2016)
  23. 23. CLEAR VIEW – LINE OF SIGHT x5 STRATEGIC HR PLANNING CHECKPOINTS (Cotter, 2016) #1: Inventory of available organizational core competencies and scarce skills (by means of a skills audit)? #2: Mission critical organizational jobs (to enable strategic goals achievement)? #3: Critical employee segments (to promote business continuity i.e. - future-proofing of the business model)? #4: Identification of organizational talent gaps (e.g. by means of Succession Planning 9-box matrix)? #5: Competitivity, maturity and readiness of the organizational talent pipeline (i.e. number of future-fit HIPO’s and the talent bench strength, who can seamlessly ascend into the key positions)?
  24. 24. • https://www.surveymonkey.com/r/5SNGNTW • #1: Aligned with the organization’s strategic business plans and priorities. • #2: Future-focused, adopting a strategic, medium to long-term forward- looking approach. • #3: Pro-active, sensitive and responsive to (internal and external) environmental change and trends. • #4: Provides accurate and reliable (clear view) talent planning/management information for the organization e.g. available core competencies; scarce skills; critical jobs and employee segments and talent gaps. • #5: Collaborative, well coordinated and partnering effort (HRM has co- opted business partners e.g. line managers to the process). DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR EFFECTIVE SWP
  25. 25. • https://www.surveymonkey.com/r/5SNGNTW • #6: Integrated (bundled) with other HRM value chain processes e.g. Recruitment, Succession Planning, Retention and Leadership Development. • #7: Generates meaningful business intelligence for the organization which shapes, informs and influences business planning and supports strategic decision- making. • #8: Integrates both scientific (HRM metrics, predictive analytics and strategy maps) with artistic (planning) principles. • #9: Dynamic - regularly and systematically monitored, reviewed, evaluated and adapted (committed to continuous improvement processes). • #10: Yields a positive ROI, with tangible/demonstrable outcomes and impact for the organization i.e. creates sustainable HCM competitive advantages DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR EFFECTIVE SWP
  26. 26. • Objective: Magnetically attracting the “Cream of the Crop” • Objective: Facilitating an optimal Person-Environment (P-E) fit • Strategy: Developing, articulating and advocating of a compelling Employee Value Proposition (EVP) • Strategy: Employer Branding – (re) positioning as an “Employer of Choice” TALENT ATTRACTION
  27. 27. COMPONENTS OF VIABLE EVP
  28. 28. • A resourcing strategy is concerned with shaping what an organization has to offer to people to join and stay in the organization. (Armstrong, 2016) • EVP is a statement of what an organization will provide for people that they will value - why the total work experience at their organization is superior to that at other organizations. • The EVP is an employee-centered approach that is aligned to existing, integrated workforce planning strategies because it has been informed by existing employees and the external target audience. • Key Selling Points (KSP): Host of financial and non-financial benefits • Non-financial benefits: ❖ The attractiveness of the organization ❖ Responsibility – corporate conduct, ethics and CSR/CSI ❖ Respect – diversity and inclusiveness ❖ Work-life balance ❖ Opportunities for personal and professional growth EMPLOYEE VALUE PROPOSITION (EVP)
  29. 29. ENABLERS OF TRANSFORMATION/RE-POSITIONING TO SPA – “RIGHTING THE SHIP”
  30. 30. LEARNING ACTIVITY 2 • Individual Activity: • Diagnose your organization’s current Workforce Planning practices against the ten (10) best practice criteria. • https://www.surveymonke y.com/r/5SNGNTW • Group Discussion: • Identify gaps and recommend improvement strategies.
  31. 31. STRATEGIC HR PLANNING – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q10: Your organization's HR plan yields a positive ROI, with tangible/demonstrable outcomes and impact i.e. creates sustainable HCM competitive advantages 1 58% Q8: Your organization's HR plan integrates both scientific (HRM metrics, predictive analytics and strategy maps) with artistic (planning) principles. 2 59% Q4: Your organization's HR Plan provides accurate and reliable (clear view) talent planning/management information e.g. available core competencies; scarce skills; critical jobs and employee segments and talent gaps. 3 59%
  32. 32. STRATEGIC HR PLANNING – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 27-93% 59% 60% 12% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q1: Your HR Plan is aligned with the organization’s strategic business plans and priorities. 10 67%
  33. 33. LEARNING ACTIVITY 3 • Group Discussion: • By referring to the illustration of the HR planning process, evaluate the effectiveness of each process step at Haya Water. Compare your organization’s effectiveness with the findings of the HCI (2014). • Identify areas of improvement (gaps) and recommend how HR management can enhance performance and value add.
  34. 34. LEARNING ACTIVITY 3 • Develop an EVP for Haya Water, as a means of attracting top talent and positioning your organization as an “employer of choice”. • Describe how the onboarding and off- boarding (exit level interviews) can be harnessed as employee retention tools.
  35. 35. OBJECTIVE #2: Employee Retention
  36. 36. AON INSURANCE EMEA HEALTH STUDY (2018)
  37. 37. JOB SATISFACTION – DELOITTE (2017) RESEARCH- BASED FINDINGS • 10 Areas workers are most unhappy: • 1. Competitive pay and benefits package • 2. Organisation retains the best people • 3. Organisation delivers on its promises • 4. Genuine care and concern • 5. Public recognition for achievements • 6. Performance reward encourages performance • 7. Long term career development • 8. Equal pay for equal work • 9. Equal opportunity • 10. Trust throughout the organisation
  38. 38. JOB SATISFACTION – DELOITTE (2017) RESEARCH- BASED FINDINGS • 10 Areas workers are most happy: • 1. Identify with organisational values • 2. Understand how work relates to organisational goals • 3. Good fit between talent and position • 4. Manager values contributions • 5. Like what the organisation stands for • 6. Personal accomplishments • 7. Opportunity to learn and grow • 8. Positive feedback • 9. Work done is important • 10. Leadership moves in the right direction
  39. 39. JOB SATISFACTION – DELOITTE (2017) RESEARCH-BASED FINDINGS • “Organisations must be attractive to the new workforce and be ready for the digital revolution. They must also recognise, honour and leverage experience from older generations, and sensitively manage changes to bridge the gap.” • “An employee experience is a combination of both culture and engagement. Organisations wanting to keep ahead of the engagement curve, need to have a clear engagement strategy.” Deloitte (2017)
  40. 40. WHY EMPLOYEES LEAVE THEIR JOBS (PAYSCALE, 2019 RESEARCH FINDINGS) • WHAT IS THE PRIMARY REASON YOU SOUGHT EMPLOYMENT OUTSIDE OF YOUR CURRENT ORGANIZATION? • #1: 25% - I want higher pay • #2: 16% - I am unhappy at my current organization • #3: 14% - I want to work at an organization aligned with my values • #4: 11% - I am relocating • #5: 10% - My current position is not full-time • #6: 7% - I want a promotion • #7: 2% - I want a more flexible schedule • 15% - Other
  41. 41. WHY EMPLOYEES LEAVE THEIR JOBS (PAYSCALE, 2019 RESEARCH FINDINGS) • WHAT IS THE MAIN THING THAT ATTRACTED YOU TO THIS NEW ORGANIZATION? • #1: 27% - The opportunity to do more meaningful work • #2: 17% - Increased responsibilities in this role • #3: 16% - Increased pay for this position • #4: 11% - The workplace culture • #5: 6% - Nothing in particular – this is just another job • #5: 6% - Better benefits/perks • #7: 5% - I want to work for a larger organization • #8: 2% - I want to work for a smaller organization • 10% - Other
  42. 42. TINYPULSE (2019) RESEARCH FINDINGS • Employee loyalty is decreasing • According to Tinypulse (2019), 43% of workers would be willing to leave their companies for a 10% salary increase and weak company cultures are to blame.
  43. 43. TINYPULSE (2019) RESEARCH FINDINGS • Here are the top 10 biggest pain points employees reported: • 1. Technical issues with software, and other tools • 2. Interruptions and disruptions from Slack, emails and noisy office environments • 3. Poor communication from management/lack of training and information • 4. Disorganized and time-wasting systems and processes • 5. Misguided decisions from management/bad leadership • 6. Lack of flexibility/no opportunities to work from home • 7. Overworked/under resourced team • 8. Office politics/favouritism • 9. Difficult customers • 10. Too many meetings
  44. 44. TINYPULSE (2019) RESEARCH FINDINGS • The Drivers of Happiness • It’s clear from the research results that culture is important for retention and employee happiness. But what aspects of culture should leaders focus on? Here are a few highlights from their findings: • Employee-manager relationships have a big impact. • Boredom wreaks havoc on engagement. • First impressions affect long-term happiness. • The #1 factor that predicts performance is the level of support provided by managers. While high performers rate the level of support they receive at an 8/10, low performers rate it at a 6.8/10.
  45. 45. TALENT RETENTION STRATEGIES – PAYSCALE (2019) • Create a Values-Based Compensation Philosophy and Follow It Consistently • Tailor Your Total Rewards Package to Your Target Employees • “Attracting talent is a complex blend of many factors. It’s a craft cocktail of cash compensation, incentives like stock in various forms, perceived opportunities for growth and development, lifestyle options like work-from-home, commuter subsidies and benefits” • “But there’s a critical social nexus as well. How important is the company’s mission and its social responsibility profile to the candidate? For some, that may outweigh or certainly weigh in against cash and benefits, even against lifestyle options or be seen as part of those lifestyle options. Blended with that is culture and engagement and how those show up in the company’s employment brand. Different elements will appeal in different ways to different candidate pools. To attract top talent today, compensation and talent professionals have to be fine-tuned to the blend of these attributes that will best resonate with the kind of candidate they are seeking.” (Susan Hollingshead, Chief People Officer at Vendini)
  46. 46. TALENT RETENTION AND ENGAGEMENT OF THE MILLENNIAL GENERATION • Global companies face the challenge of catering to this workforce, which demands an attractive corporate culture, flexible benefits, skills development, technologically-driven systems, and continuous feedback. (Deloitte, 2017) • “The working environment is moving towards much more collaborative, networked teams, which thrive off open dialogue and inclusive working styles. Millennials and future workforces require different leadership skills, and specific training and development strategies need to be considered now for high-performing leaders of the future.” (Deloitte, 2017) • Millennials are more likely than boomers to quit because they’re unhappy, for money, for better values alignment or promotion. Boomers have the highest rate of quitting because they want to work for a company that shares their values. (Payscale, 2019)
  47. 47. TALENT RETENTION AND ENGAGEMENT OF THE MILLENNIAL GENERATION • Millennials are less likely than boomers to quit because they want more flexibility. They are 9 percent more likely than boomers to quit for more money and are 15 percent more likely than boomers to quit because they are unhappy. • They are 8 percent more likely than boomers to quit because they want to work at an organization more aligned with their values and are 16 percent more likely than boomers to quit because they are relocating. • Millennials are 19 percent more likely than boomers to quit because they want a promotion. And let’s not forget Gen Xers! They are 21 percent more likely than boomers to quit for a promotion. • When choosing a new organization, millennials are 15 percent more likely than boomers to select their new workplace because it offered them an opportunity to do more meaningful work. Compared to boomers, millennials are 16 percent more likely to choose their new organization because it allows them to take on more responsibilities and they are 10 percent more likely than boomers to choose their new organization because it offers more money.
  48. 48. LEARNING ACTIVITY 4 • Evaluate the current degree of Haya Water’s employee retention by gauging against the Deloitte’s Irresistible Organization factors and sub- factors. • Identify gaps and recommend improvement strategies.
  49. 49. LEARNING ACTIVITY 5 • Reading Article: • Omantel, Oman "Our aim was to put HR right at the centre of the business“ • Group Discussion: • By referring to the Omantel reading article, describe the role and contribution of HRM in advocating, promoting and implementing employee retention strategies at Haya Water. . • Extract any employee retention learning lessons from the Omantel reading article that can be applied to Haya Water.
  50. 50. OBJECTIVE #3: Employee Engagement
  51. 51. AGREE OR DISAGREE? WHY?
  52. 52. FOUR STAGES OF EMPLOYEE ENGAGEMENT • How can I grow? • Do I belong? • What do I give? • What do I get?
  53. 53. PSYCHOLOGICAL PROFILE OF AN ENGAGED EMPLOYEE
  54. 54. COTTER’S 5 C’S OF EMPLOYEE ENGAGEMENT • Are employees COMMITTED to the organization? • Are employees proud to work for the organization – company/brand ambassadors? CITIZEN • Do employees put forth extra/discretionary effort to help the organization and their colleagues achieve business objectives? COMRADE • Are employees enthusiastic and passionate about their work/jobs? CREATOR • Are employees CONNECTED (intellectually and emotionally) to their work/jobs – offer value add?
  55. 55. ❖ #1 Role clarity and expectations ❖ #2 Resources – materials and equipment ❖ #3 Role optimization and opportunities ❖ #4 Receipt of recognition and praise ❖ #5 Managerial care and interest ❖ #6 Encouragement of personal and professional development GALLUP Q12
  56. 56. ❖ #7 Opinions and inputs are valued ❖ #8 Job/task significance ❖ #9 Fellow employee commitment to performance excellence/quality ❖ #10 Collegial and harmonious working relationships ❖ #11 Managerial interest in career progression and development ❖ #12 Ample opportunities to learn and grow GALLUP Q12
  57. 57. EMPLOYEE ENGAGEMENT DRIVERS
  58. 58. LEARNING ACTIVITY 6 • Individual Activity: • Diagnose Haya Water’s current employee engagement levels against the ten (10) best practice criteria. Refer to the link: https://www.surveymonkey.com /r/BWP26Q3 • Group Discussion: • Identify gaps and recommend improvement strategies. • As a manager, describe how you can create an engaged team by optimizing the 4 emotional drivers i.e. enthusiasm, inspiration, empowerment and confidence and capitalizing on the 6 generic drivers of employee engagement.
  59. 59. BENEFITS OF EMPLOYEE ENGAGEMENT
  60. 60. ENGAGEMENT’S EFFECT ON 9 KEY PERFORMANCE INDICATORS
  61. 61. AGREE OR DISAGREE? WHY?
  62. 62. STRATEGIES
  63. 63. CIPD STRATEGIES (2013) • “Giving employees meaningful voice: facilitating upwards feedback, having respectful, adult to-adult conversations and responding to employee views • Effective communications that keep employees well informed and reinforce the organisation’s purpose • Role modelling: employees need to see that managers are committed to the organisation and uphold the values of employee engagement in how they act • Fair and just management processes for dealing with problems and supporting employee well-being.”
  64. 64. STRATEGIES TO ACCELERATE EMPLOYEE ENGAGEMENT • According to Gallup (2013), three (3) strategies to accelerate employee engagement are: ❖ Select the Right People and Managers ❖ Develop employees’ strengths ❖ Enhance employees’ well- being
  65. 65. BEST PRACTICE EMPLOYEE ENGAGEMENT • According to Gallup (2013) research, the best organizations deeply integrate employee engagement into the following four (4) areas: ❖ Strategy and Leadership Philosophy ❖ Accountability and Performance ❖ Communication and Knowledge Management ❖ Development and on-going Learning Opportunities
  66. 66. ARMSTRONG’S EMPLOYEE ENGAGEMENT STRATEGIES ❑Leadership ❑The work environment ❑Job design ❑Opportunities for personal growth ❑Performance Management
  67. 67. TINYpulse (2018) STRATEGIES • Great managers fuel employee loyalty • Recognition is a matter of priority • Employees crave work-life balance • Culture eats compensation for breakfast • Growth opportunities are talent-magnets
  68. 68. MOST IMPACTFUL EMPLOYEE ENGAGEMENT DRIVERS (HARVARD BUSINESS REVIEW – 2014)
  69. 69. VIDEO CLIP • What Great Employee Engagement looks like? • https://www.youtube.c om/watch?v=VA_z5mvj eLc • Debriefing: Extract the lessons from this video clip
  70. 70. LEARNING ACTIVITY 7 • Critically review the Employee Engagement strategies. Indicate which strategies are most viable, feasible and sustainable at Haya Water. • Develop employee voice strategies for Haya Water.
  71. 71. LEARNING ACTIVITY 8 • Employee Engagement Ideas That Make A Difference (Taylor, November 2016) • Group Discussion: • Do you agree with the article author of the value of leveraging employee engagement programmes through an internal online community? Substantiate your reasoning. • BYOD (bring your own device) and remote working are two increasing workplace trends. Indicate how the article author proposes that managers harness these workplace trends to enhance employee engagement. Do you agree with these strategies? Substantiate your reasoning. • Describe some of the strategies that the article author suggests to break-down and remove barriers and the power-distance between managers and employees, thereby improving levels of engagement. Do you agree with these strategies? Substantiate your reasoning.
  72. 72. LEARNING ACTIVITY 8 • Employee Engagement Ideas That Make A Difference (Taylor, November 2016) • Group Discussion: • Describe some of the strategies that the article author proposes to improve the sense of feeling personally connected with co-workers. Do you agree with these strategies? Substantiate your reasoning. • Extract any general employee engagement learning lessons from the reading article that can be applied to Haya Water.
  73. 73. OBJECTIVE #4: Performance Management and Remuneration Governance
  74. 74. PERFORMANCE EQUATION
  75. 75. LEARNING ACTIVITY 9 • Group Discussion: • Using a 10-point scale (1 = very poor; 5 = average to 10 = excellent), calculate Haya Water’s performance potential score. • Identify gaps and recommend improvement strategies.
  76. 76. PERFORMANCE MANAGEMENT BEST PRACTICES • https://www.surveymonkey.com/r/5JPNNLR • #1: The Performance Management System (PMS) of your organization is directly linked to the strategic goals of the institution. • #2: The PMS of your organization is (horizontally) integrated with the other HRM functions and also the core business processes (finance, customer & operations) of the institution. • #3: The PMS of your organization adapts from only management performance expectations to management, customer and other (internal and external) stakeholder expectations and is agile and responsive to environmental change, global best practices and future trends. • #4: The PMS of your organization is balanced in terms of focusing on improving both short-term outputs or results and also in the medium to long-term future i.e. future-proofing the business/operating model. • #5: The PMS of your organization encourages full participation and wide engagement and extensive consultation, focused on measuring quality standards.
  77. 77. PERFORMANCE MANAGEMENT BEST PRACTICES • https://www.surveymonkey.com/r/5JPNNLR • #6: The PMS of your organization is user-friendly, simple and understandable for all users. • #7: The PMS of your organization provides an opportunity to recognize performance excellence. • #8: The PMS of your organization is vigilant and efficient in identifying and correcting poor performance levels and under achievement of performance goals and standards. • #9: The PMS of your organization is line management-driven with active support and business partnering from the human resources department. • #10: The PMS is a continuous process that accurately identifies multi- level (individual, team and organizational) performance and skills gaps i.e. generates crowd-sourced (360-degree) performance intelligence and –analytics, which is effectively leveraged as a performance development and -improvement management tool.
  78. 78. LEARNING ACTIVITY 10 • Individual diagnosis: • Review and rate the efficiency and effectiveness of the current performance management process at Haya Water. Refer to the above Best Practice criteria checklist. Refer to the SurveyMonkey link for the online survey: https://www.surveymonkey.com/r/5JPN NLR • Group discussion: • Identify gaps and recommend improvement strategies.
  79. 79. PERFORMANCE MANAGEMENT SYSTEMS – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 22-100% 61% 61.3% 14% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q6: The PMS of your organization is user-friendly, simple and understandable for all users. 1 56% Q10: The PMS is a continuous process that accurately identifies multi- level (individual, team & organizational) performance & skills gaps i.e. generates crowd-sourced (360-degree) performance intelligence & - analytics, which is effectively leveraged as a performance development & -improvement management tool. 2 57% Q8: The PMS of your organization is vigilant and efficient in identifying and correcting poor performance levels and under achievement of performance goals and -standards. 3 58%
  80. 80. PERFORMANCE MANAGEMENT SYSTEMS – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q7: The PMS of your organization provides an opportunity to recognize and (financially and non-financially) reward performance excellence. 10 69%
  81. 81. VIDEO CLIP • Reinventing Performance Management at DELOITTE (HBR) • https://hbr.org/video/512 2969232001/reinventing- performance- management
  82. 82. CAUSES OF POOR PERFORMANCE ❑Skills/competence ❑Personal problems ❑Lack of resources ❑Organizational factors
  83. 83. PERFORMANCE MATRIX – APPLYING COTTER’S 4 C’s (2018) CAREER DEVELOPING COUNSELING CAPITALIZING COACHING
  84. 84. PERFORMANCE IMPROVEMENT • Assuming the role of a coach: ❑Identify performance problems that may be affecting performance and where improvement is required ❑Generate possible solutions and map a plan to improve performance. ❑Identify those performance areas where the team member is performing well ❑Communicate future performance expectations and requirements • Guidelines for preventing poor performance: ❑Communicating clear performance standards and expectations to employees ❑Providing regular and frequent feedback on performance ❑Rewarding and recognizing good performance, informally and formally
  85. 85. TOTAL REWARDS STATEMENTS
  86. 86. BENEFITS OF TRS
  87. 87. LEARNING ACTIVITY 11 Group discussion: • By referring to the four quadrants of the Performance Matrix, recommend performance development strategies to enhance the employee retention and - engagement levels for the underachievers; solid performers and star performers. • Craft and develop a Total Rewards Statement (TRS) as a form of retaining and motivating top talent at your organization.
  88. 88. • https://www.surveymonkey.com/r/R223M6Q • #1 Your organization offers competitive and market-related/above market-related remuneration packages to employees (prospective employees). • #2 Your organization adequately and accurately recognizes the knowledge, skills, competencies and experience of employees and rewards are sufficiently flexible and variable. • #3 Your organization applies fairness in methods, procedures and practices for compensating, recognizing and rewarding employee contributions. • #4 Your organization applies equitable methods, procedures and practices for compensating, recognizing and rewarding employee contributions. • #5 Your organization promotes transparency through sharing information about their compensation practices, pay rates criteria and how they are determined – especially at the managerial and executive levels. DIAGNOSIS OF 10 REWARD MANAGEMENT BEST PRACTICES
  89. 89. • #6 Your organization applies consistency (standardization) in the allocation of remuneration and rewards e.g. performance bonuses and incentives etc., thereby serving as a retention and motivation mechanism. • #7 Your organization applies objectivity throughout the performance management process, as the pre-cursor and chief determinant of performance bonuses. • #8 Your organization has an efficient, user-friendly and stream-lined job evaluation and job grading process. • #9 The value of remuneration and rewards offered by your organization is affordable (feasible) promoting business sustainability and continuity. • #10 Your organization’s reward system is effective in that it directly contributes to and enables the achievement of business management goals e.g. higher levels of productivity and performance. DIAGNOSIS OF 10 REWARD MANAGEMENT BEST PRACTICES
  90. 90. • https://www.surveymonkey.com/r/PHKFGQL • #1: (Vertical) Alignment with business strategy, goals and objectives • #2: (Horizontal) integration of HRM value chain functions (bundling) • #3: Rewards Management conducts environmental scanning and is highly attuned, sensitive to and pro- actively responsive of change • #4: Rewards Management is future-focused (ensuring that the organization is future-proof) • #5: Reward management adopts a measurement culture e.g. scorecards, dashboards, metrics, risk analysis and audits etc. • #6: Reward management generates business intelligence, enabling smarter business decision making (operationally and strategically) • #7: Enables the organization to gain a sustainable, strategic competitive advantage • #8: Reward management practices contribute to a positive organizational climate, culture and higher levels of employee engagement. DIAGNOSIS OF 8 REWARD MANAGEMENT PRINCIPLES
  91. 91. LEARNING ACTIVITY 12 • Group Discussion: • Individual (Diagnosis): Critically evaluate your organization’s current rewards management structure against the 10 best practice criteria. Complete the online survey https://www.surveymonkey.com/r/R223M6Q • Critically evaluate your organization’s current rewards management principles against the 8 best practice criteria https://www.surveymonkey.com/r/PHKFGQL • Group (Analysis): Identify gaps and recommend improvement strategies for these gaps.
  92. 92. STRATEGIC TOTAL REWARDS MANAGEMENT (STORM PRINCIPLES) – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 22-100% 58% 59% 14% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q4: Your organization's reward management practices are future-focused (ensuring that the organization is future- proof). 1 54% Q3:Your organization's rewards management practices conduct environmental scanning and are highly attuned, sensitive to and proactively responsive to change. 2 56% Q6: Your organization's reward management practices generate business intelligence, enabling smarter business decision making (operationally and strategically). 3 58%
  93. 93. STORM PRINCIPLES – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q5: Your organization's reward management practices adopt a measurement culture e.g. scorecards, dashboards, metrics, risk analysis and audits etc. 8 64%
  94. 94. STORM PRACTICES – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 22-100% 62% 63% 14% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q1: Your organization offers competitive and market- related/above market-related remuneration packages to employees (prospective employees). 10 69%
  95. 95. STORM PRACTICES – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q5: Your organization promotes transparency through sharing information about their compensation practices, pay rates criteria and how they are determined – especially at the managerial and executive levels. 1 59% Q10:Your organization's reward system is effective in that it directly contributes to and enables the achievement of business management goals e.g. higher levels of productivity and performance 2 61% Q2: Your organization adequately and accurately recognizes the knowledge, skills, competencies and experience of employees and rewards are sufficiently 3 61%
  96. 96. OBJECTIVE #7: Succession Planning
  97. 97. • Succession planning is the identification and development of potential successors for key positions in an organization, through a systematic evaluation process and possible training or mentoring. • Succession planning and management involves an integrated, systematic approach to identify, develop and retain talent for key positions and areas in line with current and projected business objectives. • Succession Planning is "a means of identifying critical management positions, starting at the levels of project manager and supervisor and extending up to the highest position in the organization.” DEFINING SUCCESSION PLANNING
  98. 98. • Succession planning is about filling the organization's talent pipeline and building internal bench strength. • It is about leveraging the talent that the organization already possesses by developing it to full potential. • The focus is on developing employees so that the organization has a pool of qualified candidates who are ready to compete for key positions and areas when they become vacant. OBJECTIVES OF SUCCESSION PLANNING
  99. 99. • Keeping or preserving key positions, core skills, and special business know-how • Maintaining business competiveness on key or core areas or positions • Minimizing the impact on business due to unexpected key turnover or extended employee absences due to health or personal issues (i.e. have candidates “ready now” to replace planned and unplanned losses on key positions) • A more efficient and effective public/customer service with increased ability to deliver on business goals • The development of a qualified pool of candidates ready to fill key positions or areas • Improved employee engagement through career development and resulting cost benefit • The opportunity for corporate knowledge transfer BENEFITS OF SUCCESSION PLANNING
  100. 100. BEST PRACTICE SUCCESSION PLANNING PRINCIPLES • Refer to the link https://www.surveymonkey.com/r/J7S6VSH • #1: Succession planning is a strategic driver of sustainable organizational development and competitive advantage. • #2: Succession planning is vertically aligned with the strategic business plan and an enabler of the achievement of strategic goals/objectives. • #3: Succession planning is multi-level is implemented on 3 levels i.e. executive management; senior management and critical/key roles (professional and technical) to develop qualified successors. • #4: Succession planning builds organizational capacity, promotes institutional memory and stimulates knowledge and skills transfer. • #5: Succession planning is horizontally integrated with other HRM value chain processes e.g. Career Planning, Workforce Planning; PMS; Learning and Development etc.
  101. 101. BEST PRACTICE SUCCESSION PLANNING PRINCIPLES • Refer to the link: https://www.surveymonkey.com/r/J7S6VSH • #6: The talent pipeline is vibrant in creating an adequate succession planning rate/ratio e.g. 1:3 and talent bench strength of high potential/performers. • #7: The succession planning is effective in developing and grooming the depth and breadth of talent and fast-tracking ready-made successors in identified key roles. • #8: The succession planning process is proactive and adopts a medium to long- term view e.g. 3-5 years and uses scenario planning/”what if” analyses. • • #9: The succession planning frequently scans the micro, market and macro business environments, is consistently reviewed and is agile in it’s response. • • #10: Succession planning results in effective leadership development, higher levels of employee engagement and improved employee retention.
  102. 102. LEARNING ACTIVITY 13 • Individual activity: • Refer to the link https://www.surveymonkey. com/r/J7S6VSH • On a rating scale of 1 = Poor, 5 = Average and 10 = Excellent, diagnose the current degree of strategic relevance and importance of Haya Water’s succession planning. • Group Discussion: • Identify gaps and recommend improvement strategies to address these process gaps.
  103. 103. SUCCESSION PLANNING – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Q9: Succession planning frequently scans the micro, market and macro business environments, is consistently reviewed and is agile in it’s response. 1 67% Q6: The talent pipeline is vibrant in creating an adequate succession planning rate/ratio e.g. 1:3 and talent bench strength of high potentials/performance. 2 67% Q8: The succession planning process is proactive, adopts a medium to long-term view e.g. 3-5 years and uses scenario planning/"what if" analyses. 3 68%
  104. 104. SUCCESSION PLANNING – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 22-100% 76% 71.7% 18% BEST PRACTICE CRITERIA DIFFICULTY RANKING MEAN SCORE Q1: Succession planning is a strategic driver of sustainable organizational development and competitive advantage. 10 79%
  105. 105. STRATEGIC LINK BETWEEN SUCCESSION PLANNING AND ORGANIZATIONAL SUSTAINABILITY
  106. 106. • Succession planning starts when you can accurately measure the performance of employees, assess skills and career growth information. • Succession planning tools need to have extensive integration and customization options to support all of your talent management efforts. • Refer to the software criteria and requirements • Succession Planning metrics - Measure outcomes, not process SUCCESSION PLANNING TOOLS
  107. 107. • “Effective succession planning cannot succeed without commitment from leaders at all levels, starting at the top.” • The primary responsibility for succession planning should rest with the Board of Directors and the CEO with the assistance of human resources. • Strategic management and deployment of succession management practices is one of the most important responsibilities of the board and the CEO in ensuring both business continuity and stewardship of an organization for the future. THE CRITICAL AND STRATEGIC ROLE OF EXECUTIVE/SENIOR MANAGEMENT
  108. 108. THE ROLE OF HRM IN SUCCESSION PLANNING • Provide timely advice and guidance to managers. • Engage in and ensure ongoing discussions with bargaining agents. • Ensure ongoing discussions with corporate planners and ensure that linkages are made to program management. • Assist managers with the evaluation of succession planning initiatives.
  109. 109. ROTHWELL MODEL
  110. 110. U.S. OFFICE OF PERSONNEL MANAGEMENT MODEL - ILLUSTRATION
  111. 111. STEP 7 REVIEW AND EVALUATE THE IMPACT/EFFECTIVENESS OF SUCCESSION PLAN STEP 6 MONITOR AND TRACK PROGRESS STEP 5 IMPLEMENT SUCCESSION PLAN AND DEVELOPMENTAL STRATEGIES STEP 4 DEVELOP SUCCESSION PLAN AND STRATEGIES STEP 3 IDENTIFY TALENT GAPS STEP 2 IDENTIFY AND ASSESS SUCCESSORS – POTENTIAL AND PERFORMANCE (9-BOX MATRIX) STEP 1 IDENTIFY CURRENT CRITICAL/KEY POSITIONS AND ANALYZE FUTURE REQUIREMENTS AND COMPETENCIES (BUSINESS STRATEGY) GENERIC SUCCESSION PLANNING PROCESS
  112. 112. STEP 2: IDENTIFY AND ASSESS SUCCESSORS – 9 BOX MATRIX
  113. 113. LEADERSHIP DEVELOPMENT
  114. 114. ASSESSING LEADERSHIP POTENTIAL (GALLUP)
  115. 115. LEARNING ACTIVITY 14 • Group discussion: • Apply steps 1-4 of the generic succession plan process at Haya Water. • Step 1: Identify current critical/key positions and analyze future requirements and competencies (business strategy) • Step 2: Identify and assess successors – potential and performance (9-box matrix)
  116. 116. LEARNING ACTIVITY 14 • Apply steps 1-4 of the generic succession plan process to your organization. • Step 3: Identify talent gaps • Step 4: Develop succession plan and strategies
  117. 117. OBJECTIVE #6: Talent Management Metrics
  118. 118. 7-POINT HRM TRANSFORMATION (COTTER PhD, 11 JANUARY 2019) • "In order to be feasible, to prosper professionally in 2019 and to be future-fit, HRM will have to exchange the currency in which they trade from old notes to noteworthy, Industry 4.0 and business relevant denominations and value. Specifically, this change translates from: • 1. feelings to facts; • from 2. anecdotal to analytical; • from 3. hindsight to foresight; • from a 4. business tributary to mainstream; • from 5. intuition to intelligence;
  119. 119. 7-POINT HRM TRANSFORMATION (COTTER PhD, 11 JANUARY 2019) • "In order to be feasible, to prosper professionally in 2019 and to be future-fit, HRM will have to exchange the currency in which they trade from old notes to noteworthy, Industry 4.0 and business relevant denominations and value. Specifically, this change translates from: • from 6. best practice (imitation) to next practice (innovation) and ultimately, • from 7. a cost to a profit centre. • Generally, this 7-point transformation means an upgrade to Evidence-based HRM."
  120. 120. EVIDENCE-BASED HRM • Evidence-based HR refers to a process in which the organization evaluates any decision or process against data, real experience, expert opinions, and/or other types of information to ensure the decision is likely to have the desired outcome. • For this to work best, the “evidence” used should be purposefully sought out. • When data is taken from multiple sources, ensure it’s applicable within your context.
  121. 121. HRM SCORECARD • Refer to Annexure A • Given that the HRM function is often the steward of the people elements of the strategy, the HRM function is often charged with overseeing and guiding the key people measures i.e. the return on investment in people for the organization. • HRM measures should be ones that help the HRM function in its stewardship role of maximizing the people equity of the business. So, the first thing on the radar of the HRM team should be the key people measures from the organization’s scorecard. • The second class of measures should be the HRM measures – the key drivers that HR guides or controls that directly influence the key people measures. • Becker et al (2001), define the four essential elements of the HR scorecard as HR deliverables, a high-performance work system, HR system alignment and HR efficiency. This reflects a balance between the twin HR imperatives that have been previously mentioned – cost cutting and value creation. • These last three elements of the HR architecture trace a value chain from function to systems to employee behaviours.
  122. 122. EMPLOYEE RETENTION METRICS • Preventable turnover in key jobs • Diversity turnover in professional, managerial and technical positions • Voluntary Separation Rate = Voluntary Separations / Headcount • Turnover Costs = Termination Costs + Hiring Costs + Training Costs + Other Costs • Performance turnover in key jobs • Refer to Annexure B.
  123. 123. STRATEGIC WORKFORCE/HR PLANNING METRICS (DR. JOHN SULLIVAN) • 1. Do we have the right number of people in our organization? ❖ Does HR have a metric/system for ensuring we are not OVERSTAFFED? ❑ Do we compare our Headcount per unit of production/ sales to that of our direct competitors to ensure we don't have headcount "fat"? ❑ Are we UNDER STAFFED in areas, where if we added people in key areas, we would increase our profitability? • 2. Do we forecast and prevent people problems better than the best in the industry? ❑ Have HR "smoke detectors" and forecasts given top management sufficient warning of possible "people problems"? Has it allowed us to effectively mitigate their impact upon the business? ❑ HR develops programs and solutions before smoke turns into fire and before managers have to request them. ❑ Do we provide our managers with sufficient lead- time and a "heads up" on people issues that will/ do face them?
  124. 124. STRATEGIC WORKFORCE/HR PLANNING METRICS (DR. JOHN SULLIVAN) • 3. Do we rapidly redeploy our people resources from areas of low return in the corporation to areas of high return? ❑ What % of our workforce moves internally each year between business units? ❑ What % of our workforce have we had to "layoff this year? ❑ Is there evidence that we get the most from our talent? • 4. Succession Planning ❑ The percentage of Executive roles for which there is a succession candidate, which is calculated by the number of Succession Planning Candidates/Executive Level Headcount
  125. 125. AUDITING STRATEGIC WORKFORCE PLANNING • 1. Do you have an up-to-date organizational chart and other planning documents to enable workforce planning? • 2. Do you perform workforce planning and/or a needs assessment at least quarterly? • 3. Do you have a method for forecasting staffing needs by production requirements? • 4. Do you track and manage operations by utilizing essential metrics such as turnover, full-time equivalents (FTE), time to hire or revenue to productivity? • 5. Are turnover levels appropriate for the nature of your industry/business? • 6. Does your Company have an established succession plan?
  126. 126. LEARNING ACTIVITY 15 • Describe the Strategic Workforce/Succession Planning and other Talent Management metrics that Haya Water applies. • Describe how you can audit Strategic Workforce/Succession Planning and other Talent Management at Haya Water.
  127. 127. LEARNING ACTIVITY 16 • Group Discussion: • Talent Management: A Research Based Case Study in the GCC Region (Singh, Jones & Hall, 2012) - Refer to Annexure C • Extract learning lessons which are applicable to Haya Water in terms of: ❑ Employee retention principles and strategies ❑ Employee engagement principles and strategies ❑ Re-positioning strategies to an Employer of Choice
  128. 128. LEARNING ACTIVITY 16 • Group Discussion: • Talent Management: A Research Based Case Study in the GCC Region (Singh, Jones & Hall, 2012) - Refer to Annexure C • Extract learning lessons which are applicable to your organization in terms of: ❑ Benefits of re-positioning to an Employer of Choice ❑ Total rewards management and employee recognition strategies ❑ Any general lessons
  129. 129. CONCLUSION • Key points • Summary • Questions • Training Administration • Certification
  130. 130. CONTACT DETAILS

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