Managing Talent: Demands, Challenges and Uncertainty from Staff

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Presented at WorldatWork 2012 by Hay Group's Myriam Michaels and Connie Schroyer

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Managing Talent: Demands, Challenges and Uncertainty from Staff

  1. 1. Managing Talent:Demands, Challenges andUncertainty from StaffMAY 23, 2012
  2. 2. Presenters  Connie Schroyer, Vice President & General Manager, Hay Group Connie.Schroyer@haygroup.com | 703.841.3147 -  Myriam Michaels, Principal, Hay Group - Myriam.Michaels@haygroup.com | 703.841.3132  Juliet N. Kintu, Projects Officer, Internal Controls & Special Projects CFA© 2012 Hay Group. All rights reserved 2
  3. 3. Agenda 1 CFA‟s Objective 2 What is a “Competency Framework” 3 Project Overview 4 Hay Group Approach 5 Success for CFA 6 Questions/Discussion© 2012 Hay Group. All rights reserved 3
  4. 4. Agenda  As a reward practitioner, we are sure you have heard employees ask: How do I progress in my career?  Most organizations do a very good job of identifying reward strategies and pay philosophies, but linking those strategies to career progression has always been a challenge.  Our discussion today will focus on “Talent Management” and a really interesting case study with a client who was struggling with managing how employees acquired and developed the necessary skills and competencies and aligning those with career progression.© 2012 Hay Group. All rights reserved 4
  5. 5. Agenda© 2012 Hay Group. All rights reserved 5
  6. 6. 01CFA‟s Objective
  7. 7. Who is CFA?  The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments.  The Financial Operations and Accounting Department (CFA) within the International Finance Corporation is reward strategic client for the Hay Group.  The focus was to work closely with a recently restructured area of the organization, the finance and accounting group, given the recent re- alignment of functions and their strategy to be well positioned for success.© 2012 Hay Group. All rights reserved 7
  8. 8. CFA’s Business Needs  CFA was looking for a talent management system that was: 1. Forward-looking and linked to the strategic direction of the department; and 2. Articulated the behaviors that support growth and the global decentralization of their operations.  It is important for an organization to consistently and proactively use competencies (both technical and behavioral) to support career management processes impacting employees.  We created a “competency framework” to ensure the competencies captured, in a clear and understandable way, information that can be utilized for hiring, development, performance management, and promotions.© 2012 Hay Group. All rights reserved 8
  9. 9. CFA’s objective and needs  Our partnership in developing a competency framework focused on: 1. Creating simple, practical approach to designing competency profiles 2. Reviewing and assessing roles and creating job families 3. Introducing competencies in the various units in coordination with HR 4. Supporting and training staff and management in the framework through a detailed communication and implementation process© 2012 Hay Group. All rights reserved 9
  10. 10. It is important for there to be a commonthread in organizations.A thread that links all of the peopleprocesses to the direction of theorganization. A single thread that createsclarity for employees.That thread is competencies.CFA wanted to create a “culture ofcompetencies.”
  11. 11. 02What is a CompetencyFramework?
  12. 12. What is a Competency Framework?  A Competency Framework is established by working with staff, conducting interviews and discussions regarding required skills and abilities that drive outstanding performance now and in the future.  A competency: Defined as any characteristic of an individual that predicts outstanding performance in a given job, role, organization or culture. We focus on both technical competencies and behavioral competencies. What does a competency framework do?  Focuses performance discussions on the key behaviors for training and staff development, career aspirations and goals  Provides staff with specified competencies to support and plan for their career advancement  Provides a tool to assess staff skills and competency gaps in order to direct resources to meet staff needs  Allows Management to better align training with staff development needs  Provides a clear, consistent, comprehensive framework on which to base talent management decisions© 2012 Hay Group. All rights reserved 12
  13. 13. Why a Competency Framework? The Competency Framework has been developed as a response to: 1. Staff request for clarification on career path opportunities within CFA and the criteria & skills needed to support high level performance, promotions & overall career development. 2. Management‟s need to clarify expectations, define future development needs, and do more focused recruitment and development planning. The Competency Framework:  Supports an organization‟s mission, vision and values  Is an essential component of career planning, talent management and position management  Can be customized to unique roles within an organization and in line with “role model” behaviors that are necessary to succeed© 2012 Hay Group. All rights reserved 13
  14. 14. Why a Competency Framework?Key Tool for: Recruitment: What minimum experience, qualifications and skills do we need to fill positions that are necessary to fulfill our mandate? Staff Development & the Learning Curriculum: What gaps do we have in the skills set of our staff that are vital in execution of our mandate? What learning should we consider in order to address the gaps? How will the framework integrate with the Learning Curriculum? Staff Management & Career-Pathing: How do we manage the talent we have? What staff opportunities are available across the organization? How can we effectively rotate staff to develop needed skills while ensuring seamless operations? How do we manage career-pathing? Position Management: How many positions and at what levels do we need to fulfill our mandate?© 2012 Hay Group. All rights reserved 14
  15. 15. Create & manage the interdependencies Position Management Talent development Learning Performance curriculum evaluation Challenge/Opportunity: Integrate the Competency Framework and Learning Curriculum and link to the Performance Evaluation and Talent Development© 2012 Hay Group. All rights reserved 15
  16. 16. As CFA Management described:„we need staff to becomeconsistently strong at activeparticipation, asking the rightquestions, talking to the rightpeople, challengingassumptions and providingalternatives’
  17. 17. Competency Framework Model Competencies don’t drive change; they are a tool that can be used to drive change, as part of an integrated change management program which aligns the above seven levers.© 2012 Hay Group. All rights reserved 17
  18. 18. Competency Framework Model© 2012 Hay Group. All rights reserved 18
  19. 19. Competency Framework Model  The framework describes the Technical and Behavioral Competencies needed for superior performance within CFA.  It covers key areas of work using the following job families: - Operations - Policy, Compliance & Governance - Business Partnership - Investment Portfolio Management  The framework has been developed based on interviews & working sessions with senior management and staff during which qualities and skills needed to perform well in these roles have been described.  The framework describes technical competencies and behavioral competencies, each is important for success within CFA.© 2012 Hay Group. All rights reserved 19
  20. 20. Competency Framework Model Management To make changes Achieves: that benefit Staff Gains: both….  Consistency: Job families  Opportunity to undertake a designed consistently for all staff broader variety of assignments to capture technical, and facilitating career management, behavioral competencies. career development & talent management  Flexibility: Recruiting and staffing flexibility and can more  Clarity about what is expected easily allocate resources based of staff them in their roles so that on operational need and talent they can have effective availability. discussions with their managers.  Institutional Effectiveness:  Equity in how they are Less time and effort expended by evaluated for their contribution to staff, managers, Human success in their role. Resources on performance evaluation.© 2012 Hay Group. All rights reserved 20
  21. 21. Competency Framework Model© 2012 Hay Group. All rights reserved 21
  22. 22. 03Project overview
  23. 23. Hay Group Goals for working with CFA To meet their competency development objectives. To put into place trustworthy processes for assessing and developing talent. To think „out of silos‟ when planning. To work in partnership with them. To incorporate valid competencies and clarity of roles that:  Account for future success factors;  Separate-out subjective political considerations;  Become a reliable platform for all learning and human resource systems; and  Allow for attaining business results© 2012 Hay Group. All rights reserved 23
  24. 24. Approach Overview 1. Strategic Behavioral Technical Job Family Interviews Capability Capability Architecture Framework Framework Job Family Model 2. Employee (Levels, Purpose, Accountabilities,Focus Groups Technical and Behavioral Capabilities) Development of3. Discussions learning & Definition ofwith Business development Career PathsLeads and HR resources 4. Manager Assessment of current Allocation of roles to Validation capabilities against the families and levels model 5. IMPLEMENTATION & COMMUNICATIONImplementation © 2012 Hay Group. All rights reserved 24
  25. 25. CFA Senior Management Interviews One-on-one interviews with senior leaders with the following objectives:  Gain clarity on the vision, mission and strategy  Understand the organizational culture and values  Identify key business metrics  Identify what senior management consider as critical characteristics for moving the organization forward  Gain buy-in© 2012 Hay Group. All rights reserved 25
  26. 26. CFA Focus Groups Meetings with job/role incumbents and/or their managers to identify current and future critical success factors. The following areas are covered:  Job responsibilities  Job challenges  Performance measures  Characteristics of superior performance  Examples of competencies and importance© 2012 Hay Group. All rights reserved 26
  27. 27. Documentation Review  A review of existing documents to gain insight into the current and future requirements of jobs/roles included in the competency study the organizational overall (to ensure consistency with current HR systems and grades structures)  Included utilizing existing organizational data on staff such as employee surveys© 2012 Hay Group. All rights reserved 27
  28. 28. 04Hay Group approach
  29. 29. Hay Group Approach The Competency Framework should essentially have three core elements that will benefit both the organization and the individual:  Understanding Work: For talent to be managed effectively there is a need to understand what it takes to be effective in a role (job evaluation was utilized)  Understanding People: Understanding of the position is as important as an understanding of the people (behavioral competency model utilized)  Managing People and Positions: A sound understanding of the positions and of the people provides the building blocks of a Competency Framework.© 2012 Hay Group. All rights reserved 29
  30. 30. Hay Group’s Methodology spans vital focus areas© 2012 Hay Group. All rights reserved 30
  31. 31. Understanding Work – Hay Job Evaluation We measure…. INPUTS PROCESS OUTPUTS (KNOW HOW) (PROBLEM SOLVING) (ACCOUNTABILITY) • Technical Know How • Thinking environment • Freedom to Act • Management Breadth • Thinking Challenge • Magnitude • Human Relations Skills • Impact Using a strict and controlled process • Position Description Questionnaire • Knowledge and understanding of the organization Job Information Job Size Judgment (Haypoints) Methodology • Evaluate jobs, not people or titles •Hay Guide Chart-Profile Method • Evaluate jobs as they are today, not yesterday or tomorrow System formulated by Edward Hay and has been researched, tested and validated across the world for the last 60 years.© 2012 Hay Group. All rights reserved 31
  32. 32. Understanding Work – Technical Competencies  Understand the current and future organizational needs in terms of specific roles. Considering context in detail:  future strategy  operating model  organization structure  different types of roles and their requirements  Define the roles and number of positions  Create levels for the technical competencies that are priority to measure (skills, etc)  Set target levels for each of these factors© 2012 Hay Group. All rights reserved 32
  33. 33. Hay Group Behavioral Competency approach What are competencies?  “They are underlying characteristics which enable someone to perform a job better in more situations, more often, with better results”  Competencies are those factors that distinguish the best from the rest in a given role  Competencies can be deep seated or easily observed qualities of people (motivation, traits, etc.)  All competencies can be measured© 2012 Hay Group. All rights reserved 33
  34. 34. Competencies are forward-looking. Theydescribe the behaviors and attributes staff andmanagers will need in order to meet futurechallenges.They help organizations clarify expectations,define future development needs, and domore focused recruitment and developmentplanning.Competencies provide a sound basis forconsistent and objective performancestandards by creating shared language aboutwhat is needed and expected in anorganization.
  35. 35. Competencies  Skills and knowledge form the tip of the iceberg. The underlying competencies are less visible but extensively direct and control behaviour  Social Role, Values, and Self-image exist at conscious or partly conscious levels  Traits and Motives exist further below the Knowledge surface Skills Social Role Self-Image, Values Traits Motives© 2012 Hay Group. All rights reserved 35
  36. 36. Why is it not obvious?© 2012 Hay Group. All rights reserved 36
  37. 37. Competencies and the Complexity of Roles© 2012 Hay Group. All rights reserved 37
  38. 38. Integrated Talent Management Framework  Research based solutions  Expertise in behavior change  We know what distinguishes outstanding from typical  We know how to help people change  We know how to produce tangible results  Expertise in leadership  We know how to build superior management capability.  We partner with Harvard University on leadership and management behaviors and high-performing teams.© 2012 Hay Group. All rights reserved 38
  39. 39. Integrated Talent Management Framework 1. Decode the strategy and define the predictors for success 2. Evaluate talent to strategy 3. Enhance talent to deliver strategy 4. Develop a talent management culture© 2012 Hay Group. All rights reserved 39
  40. 40. Integrated Talent Management Framework Best Practice organizations translate strategy into critical talent management factors such as:  Understanding roles and accountabilities needed in the future  Determining the corresponding leadership styles and behaviors that are future-focused  Creating a winning ethos in terms of climate and culture© 2012 Hay Group. All rights reserved 40
  41. 41. Integrated Talent Management Framework Best Practice organizations use the measurement of potential and performance as a starting point to evaluating talent. Then they:  Incorporate internal and external benchmarks to keep the bar high – Benchmark against external world-class standards – Ensure no “slippage” in thinking that average is good enough  Review talent with rigor against the predictors of success  Follow through on the implications and results of talent reviews© 2012 Hay Group. All rights reserved 41
  42. 42. Integrated Talent Management Framework Best Practice organizations work hard at growing their talent and coaching leaders through role transitions. They focus on:  Mapping realistic career paths  Recognizing that lateral moves often present bigger challenges than moves up the hierarchy  On-boarding for internal movement into key roles  Leadership development that is anchored to strategic intent© 2012 Hay Group. All rights reserved 42
  43. 43. Integrated Talent Management Framework In Best Practice organizations, HR supports the process, while the businesses own it. In addition:  Talent management is viewed as a life cycle from entry to departure  Talent is mapped against role demands to determine gaps and potential successors  Talent is re-aligned to its best fit with organization needs and role demands  Businesses use the talent management process to continually improve decision making and realign to the organization‟s overall business strategy© 2012 Hay Group. All rights reserved 43
  44. 44. 05Success for CFA
  45. 45. Success for Both CFA and StaffManagers Will Use Competencies… As a clear, consistent, and comprehensive framework on which to base reward, promotion and career advancement decisions To discuss career goals with staff and identify performance strengths/gaps and future learning opportunities To focus performance management and coaching discussions with staff on tangible behaviors To help select the best leaders to drive success and build the desired organizational cultureStaff Will Use Competencies… To plan ahead and develop appropriate behaviors for career advancement To discuss career aspirations and goals with managers/directors To gain a clearer sense of what it takes to advance As a tool to identify learning opportunities© 2012 Hay Group. All rights reserved 45
  46. 46. Using the Competency Framework to Support Career Management© 2012 Hay Group. All rights reserved 46
  47. 47. Success Means Focus on Implementation & Communication! Below is our view on the key criteria that competencies must meet in order to be effectively implemented. How to ensure success • Use internal best practice and role models to shape the Accurate competencies – this ensures they reflect the reality of how work gets done in the organization. • Focus on the fewest competencies that make the biggest difference – don‟t try to describe every single skill required to Understandable execute the role. • Use examples and provide employees with guidance on how to develop the competencies, so they become real. • Use a blend of internal best practice and role models, and external benchmarks, to shape the competencies, to avoid Credible common pushback such as „We‟re unique and different, so these competencies don‟t apply to us.‟© 2012 Hay Group. All rights reserved 47
  48. 48. Implementation In order for a culture of competencies to be embedded and for this model to be useful, the following implementation processes were used: Messaging About New Competencies  Clear messaging to staff about why we need the competency framework and why it is important to have a new competency model (What is in it for me?)  Training for both managers and staff on the competency model and practice sessions using the model HR Systems  Consistency in messaging and application of the competency model. Obtained Managers buy-in so they use the model as a tool for performance feedback and staff development.  Defined promotion standards and career paths. Created supporting tools and resources for staff.  Resolved grading issues and ensure consistent application of grades and levels within and across the organization.© 2012 Hay Group. All rights reserved 48
  49. 49. Communication: Competency Framework Booklet Competency Framework Booklet The Competency Framework Booklet provides a “one-stop shop” on the Competency Framework components, how it will be utilized to support recruitment, staff development and management, talent management and position management© 2012 Hay Group. All rights reserved 49
  50. 50. Organizational Impact  Growing job demands and lack of clarity around job expectations can contribute to a feeling of being taken advantage of.  This project stressed the importance of analyzing employee feelings related to professional ambiguity and the need to support career advancement in a fair and consistent manner.  Turning employee concerns and doubts into a desire to succeed and share the passion and mission can have a significant impact on organizational results.  Engagement, collaboration and curiosity in work and partnerships with others will benefit both the employee and employer in creating successes.  Creating a platform where everyone has an opportunity to be coached, challenged and grow, be recognized and rewarded will provide both short and long term success.© 2012 Hay Group. All rights reserved 50
  51. 51. Thank You and Remember… Your best bets are people who will be able to grow and develop. They have these characteristics:  Thinking beyond the boundaries  Curiosity and eagerness to learn  Social understanding and empathy  Emotional balance So, Know, Grow and Flow:  So what… What will we need for the future?  Know the talent available to you  Grow the capability you need  Flow talent through the organization© 2012 Hay Group. All rights reserved 51
  52. 52. Q&A
  53. 53. Presenters  Connie Schroyer, Vice President & General Manager, Hay Group Connie.Schroyer@haygroup.com | 703.841.3147 -  Myriam Michaels, Principal, Hay Group - Myriam.Michaels@haygroup.com | 703.841.3132  Juliet N. Kintu, Projects Officer, Internal Controls & Special Projects CFA© 2012 Hay Group. All rights reserved 53

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