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Hiring for Critical Roles: You're Doing It Wrong

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Hiring for Critical Roles: You're Doing It Wrong

  1. HIRINGFORCRITICALROLESYou’re Doing It Wrong David Wilkins VP, Taleo Research @TaleoResearch Blog: talent-management-blog
  2. JOIN THE CONVERSATION› Opportunity to network› Share your point of view› Comment on the presentation Join the Conversation! • On Twitter: #TaleoTalent • In Twitter or Twitter client, search for #TaleoTalent. • When you comment, add #TaleoTalent so everyone can see it.
  3. EXECUTIVE SUMMARY› High unemployment is a myth (when hiring for critical roles)› Skill shortages for critical roles are bad and getting worse› “Hiring” as a default approach is mostly bad – It costs more. – It results in lower productivity and performance. – It hurts engagement and turnover for hi-pos.› We need to switch the model to development and mobility first.› We need better talent intelligence, job definitions, and matching tools.› But mostly we need a strategy.
  4. POLL› Are you having difficulty filling critical roles?› Yes› No
  5. THE “HIGH UNEMPLOYMENT” MYTH Education Level (March, 2012) Unemployment Rate Less than high school diploma 12.9 High school diploma 8.3 Associate’s degree or some college 7.3 Bachelor’s or higher 4.2 Master’s (as of May 2011) 3.6 Doctorate’s or Professional (as of May 2011) 2.4 When it comes to critical roles, which group are you hiring from? http://www.bls.gov/news.release/empsit.t04.htm http://www.bls.gov/emp/ep_chart_001.htm#TaleoTalent
  6. THE CHALLENGE OF CRITICAL ROLES The R&D shortage is particularly acute in industries where product innovation is critical. Among the Technology/Media/Telecom companies surveyed, 40% predict a severe shortage of R&D talent, while 39% of Consumer/ Industrial Products companies surveyed and 37% of Life Sciences/Health Care companies surveyed foresee shortages in this area. Talent Edge 2020: Blueprints for the new normal, December 2010, Deloitte.#TaleoTalent
  7. THE CHALLENGE OF CRITICAL ROLES The R&D shortage is particularly acute in industries where product innovation is critical. Among the Technology/Media/Telecom companies surveyed, 40% predict a severe shortage of R&D talent, while 39% of Consumer/ Industrial Products companies surveyed and 37% of Life Sciences/Health Care companies surveyed foresee shortages in this area. Talent Edge 2020: Blueprints for the new normal, December 2010, Deloitte.#TaleoTalent
  8. OTHER PERSPECTIVES The 2011/2012 Talent Management and Rewards Study, North America, Towers Watson 10 Hardest Roles to Fill in the US: 8 Hardest Roles to Fill in the UK: 1. Skilled Trades 1. Finance and Legal Professionals 2. Sales Representatives 2. Customer Service 3. Engineers 3. Technical and IT 4. Drivers 4. Marketing Professionals 5. Accounting & Finance Staff 5. Sales Professionals 6. IT Staff 6. Production Staff 7. Management/Executives 7. R&D 8. Teachers 8. Administrators 9. Secretaries/Administrative Assistants UK Critical Talent Pipelines, 2012, Taleo 10. Machinist/Machine Operator Talent Shortage Survey, 2011, ManpowerGroup.#TaleoTalent
  9. AND THE FUTURE LOOKS WORSE› Georgetown University Center on Education and the Workforce on shortfall of college grads in 2018 3,000,000› Accenture study from 2006 showed that STEM enrollments would need to increase by to meet demand 20-30% between 2006-2016 Instead, enrollments have GONE DOWN.
  10. POLL QUESTION› How do you typically fill critical roles?› Mostly external hires› Mostly internal hires› A pretty even mix of each
  11. CHALLENGES IN HIRING EXTERNALLY FOR CRITICAL ROLES › Cost › Time › Retention › Engagement#TaleoTalent
  12. EXTERNAL HIRE CHALLENGES: COST AND TIME › External hires cost more – Critical roles are usually industry-wide, not company specific – Thus, there is usually high demand for limited resources – Critical roles are critical for a reason – unique skills, high need – Scarcity + high demand = high cost – “Unknowns” in external hiring = more focus on “observable characteristics” such as education / experience =  pay › Scarcity also often means head hunters which adds more cost › Scarcity also means longer time to hire, adding opportunity cost#TaleoTalent
  13. EXTERNAL HIRE CHALLENGES: COST AND TIME › External hires cost more – Critical roles are usually industry-wide, not company specific – Thus, there is usually high demand for limited resources – Critical roles are critical for a reason – unique skills, high need – Scarcity + high demand = high cost – “Unknowns” in external hiring = more focus on “observable characteristics” such as education / experience =  pay › Scarcity also often means head hunters which adds more cost › Scarcity also means longer time to hire, adding opportunity cost#TaleoTalent
  14. EXTERNAL HIRE CHALLENGES: RETENTION, PRODUCTIVITY, AND ENGAGEMENT › External hires aren’t as productive as internal hires; new research suggests that it takes 2 years to get “up to speed” › External hires average shorter tenures than internal hires › External hires average lower performance reviews › Hiring outside = risk to top performers and high potentials – “Lack of career development” is #1 reason for dysfunctional turnover – “Training and development opportunity” is #1 driver of employee engagement – “More opportunities to do what I do best” is #1 driver of employee engagement#TaleoTalent
  15. EXTERNAL HIRE CHALLENGES: RETENTION, PRODUCTIVITY, AND ENGAGEMENT › External hires aren’t as productive as internal hires; new research suggests that it takes 2 years to get “up to speed” › External hires average shorter tenures than internal hires › External hires average lower performance reviews › Hiring outside = risk to top performers and high potentials – “Lack of career development” is #1 reason for dysfunctional turnover – “Training and development opportunity” is #1 driver of employee engagement – “More opportunities to do what I do best” is #1 driver of employee engagement#TaleoTalent
  16. WHY DOES TALENT LEAVE?#TaleoTalent
  17. YET WE KNOW NEXT TO NOTHING ABOUT OUR TALENT: PERFORMANCE MANAGEMENT AND COMPENSATION#TaleoTalent
  18. YET WE KNOW NEXT TO NOTHING ABOUT OUR TALENT: PERFORMANCE MANAGEMENT AND COMPENSATION#TaleoTalent
  19. YET WE KNOW NEXT TO NOTHING ABOUT OUR TALENT: SUCCESSION AND TALENT MOBILITY#TaleoTalent
  20. YET WE KNOW NEXT TO NOTHING ABOUT OUR TALENT: SUCCESSION AND TALENT MOBILITY#TaleoTalent
  21. YET WE KNOW NEXT TO NOTHING ABOUT OUR TALENT: TOP PERFORMER AND HI-PO DATA IS UGLY › 80% of companies don’t know who is a flight risk. › 78% of companies don’t know who is on a succession plan. › 80% of companies don’t know who has a career path. › 65% of companies don’t know much about who they’re retaining. › 84% of companies don’t if their development plans are working. › 65% of companies don’t know much about Hi-Po’s.#TaleoTalent
  22. ADDRESSING THE PROBLEM External Hires Internal Hires • Fresh eyes and • Anytime the perspectives other criteria • High growth, new don’t apply… territories, new • In other words, strategic this should be directions the “default” model#TaleoTalent
  23. YOUR DEFAULT HIRING FLOWCHART Catalog External Talent Talent Catalog Profiles Internal Talent#TaleoTalent
  24. YOUR DEFAULT HIRING FLOWCHART Catalog External Talent Talent Catalog Profiles Internal Talent Catalog Job Requirements Job Roles#TaleoTalent
  25. YOUR DEFAULT HIRING FLOWCHART Catalog External Talent Talent Catalog Profiles Internal Talent Match Potential Candidates Catalog Job Requirements Job Roles#TaleoTalent
  26. YOUR DEFAULT HIRING FLOWCHART Catalog External Talent Talent Development Catalog Profiles Plans Internal Talent Potential Green light Match Assess Gaps Candidates Candidates Update Catalog Job Requirements Requirements Job Roles#TaleoTalent
  27. YOUR DEFAULT HIRING FLOWCHART Catalog External Talent Talent Development Catalog Profiles Plans Internal Talent Potential Green light Match Assess Gaps Candidates Candidates Update Catalog Job Requirements Requirements Job Roles#TaleoTalent
  28. YOUR DEFAULT HIRING FLOWCHART Catalog External Talent Talent Development Catalog Profiles Plans Internal Talent Critical Potential Green light Talent Match Assess Gaps Add Candidates Candidates Pipelines Update Catalog Job Requirements Requirements Job Roles#TaleoTalent
  29. Catalog ADDRESS YOUR TALENT INTELLIGENCE GAPS Internal Talent › Where are your skill and competency gaps? › Do you have robust talent data for your team? – Pre-hire experience, job roles – Skills, capabilities, competencies – Self-identified skills developed in personal life – Career aspirations and related gaps – Learning and development plans – Crowd-sourced assessment of potential, capabilities, fit, etc… – Current and automatically updated talent data#TaleoTalent
  30. Catalog Job ADDRESS YOUR JOB ROLE GAPS Requirements › Have you defined requirements for each job? › Do you have job families? › Can you identify potential career paths based on competencies, capabilities, experience? › For critical roles, have you identified longer-term competency development strategies? – Required experience and levels of mastery – Education and formal knowledge requirements – Bridge roles or “stepping stone” roles that provide experience – Assessment models#TaleoTalent
  31. Development DEVELOPING YOUR TALENT Assess Gaps Plans › Career Aspirations › Skill Gap Assessment › Action Learning › Stretch Goals and Assignments › Talent Mobility › Multi-stage Development and Competency Model › Mentor / Mentee Models#TaleoTalent
  32. Update UPDATE REQUIREMENTS Assess Gaps Requirements › Is the job definition static or dynamic? › How much “wiggle room” is there to rethink work assignments and responsibilities to overcome gaps? › Do requirements change over time in response to changing competitive landscape, strategy, new opportunities or threats? › Job roles and related requirements are a means to an end – Reflection of “best” way to organize work, not the “only” way – Often better to rethink work assignments than lose a top performer or hi-po for lack of internal opportunities#TaleoTalent
  33. MATCHING – NOT DEEP ENOUGH Match › Goal is not to “hire,” but to match talent to requirements › Yet we don’t know the basics 48% say that their skills go unnoticed feel that their work history & experiences are not leveraged by their employer 75%#TaleoTalent
  34. MATCHING – NOT SOCIAL ENOUGH Match › Co-workers know talent best, yet aren’t involved in matching Professional & work Professional & work capabilities aspirations / ambitions None of the Other None of the Other above 1% above 1% 6% Don’t know 3% My family / Don’t know My family / 5% partner 5% partner 21% 43% My line managerMy line manager 13% 22% My friends HR software / outside of work systems 4% 1% HR software / systems 1% My colleagues My colleagues and peers and peers 22% My friends 43% outside of work 9%#TaleoTalent
  35. MATCHING – NOT AUTOMATED ENOUGH Match#TaleoTalent
  36. Critical BLEND YOUR CRITICAL TALENT PIPELINES Talent Pipelines › Internal candidates › External candidates › Stop-gap contingent workers#TaleoTalent
  37. WRAP UP› High unemployment is a myth (when hiring for critical roles)› Skill shortages for critical roles is bad and getting worse› “Hiring” as a default approach is mostly bad – It costs more. – It results in lower productivity and performance. – It hurts engagement and turnover for hi-pos.› We need to switch the model to development and mobility first.› We need better talent intelligence, job definitions, and matching tools.› But mostly we need a strategy.

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