The top 15 strategic things that Talent Management should be doing


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Outlining the most important strategic things that Talent managers should be doing to increase their strategic impact and credibility

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The top 15 strategic things that Talent Management should be doing

  2. 2. Introduction Many talent management leaders are risk adverse and although they talk about the need to "be more strategic" they all too frequently find excuses that indefinitely postpone those strategic actions I suggest that the leadership set aside at least half a day for the team to identify upcoming problems and opportunities and the resulting strategic moves that need to be made This is a checklist of the strategic talent management actions that I’ve found that the very best corporations should have on their "to do list" 2
  3. 3. Let’s start with a questionWhat keeps CEO’s up at night? 3
  4. 4. What are the business areas where CEO’s expect the most change?1. Engagement with the Board of Directors2. Capital structure3. Focus on corporate reputation & rebuilding trust4. Organizational structure (including M&A)5. Investment decisions6. Approaches to managing risk7. Strategies for managing talent 4
  5. 5. What is the #1 business issue for CEO’s? PwC 14th annual global CEO survey 2011 5
  6. 6. Conclusion - Because CEO’s now know our importanceIf you are not currently getting a boatload of moneyfrom your executives… something is wrong!And realize that…our area is where CEO’s expect the most change 6
  7. 7. If you need dramatic change What are the top 15 strategic things that Talent Management can do to dramatically change their results? 7
  8. 8. The top 15 strategic actions in Talent Management1) Increase the productivity of your workforce Workforce productivity is merely comparing the output of your entire workforce (the total value of the products and services they produce) with the cost of your workforce (total labor and HR costs) Many Talent Management departments measure engagement (a precursor to productivity) but they dont measure workforce productivity and even fewer take proactive actions to directly increase it 8
  9. 9. The top 15 strategic actions in Talent Management1) Increase the productivity (Continued) Increasing productivity requires Talent Management to identify the barriers that restrict productivity And then to proactively provide the consulting advice, best practices and tools that have been proven to increase a teams productivity 9
  10. 10. Productivity comes from these 20 key factors that managers can change1. A great manager 11.“Right job” placement2. Effective plans & strategies 12.Processes are integrated3. Clear and prioritized goals 13.Information for decisions /activities to focus the work 14.The right tools/technology4. Rapid learning / sharing 15.Qualityinputs/materials5. Right motivators / rewards 16.Enough budget/ resources6. The right employee skills 17.The work environment is7. 2 way communications designed for productivity8. Performance metrics 18.Time devoted to the task9. Quality team members 19.Outside of work factors from great hiring & retention 20.ID & removing barriers to10.Collaboration for innovation productivity/innovation 10
  11. 11. HR has only 8 options for increasing productivity Buy Build Recruit regular employees Develop internal talent Borrow Retain Borrow contingent labor Retain key internal talent Move More productive Redeploy internal talent Make internal talent more productive Release Use substitutes Weak & excess labor (Tech, contingent, outsource, cust.)
  12. 12. The top 15 strategic actions in Talent Management2) Increase employee innovation Fierce marketplace competition requires firms to accelerate innovation in product and service areas despite having fewer resources Rather than targeting a few departments, HR must increase innovation in all areas of the business Innovation may be becoming more impactful that workforce efficiency 12
  13. 13. The top 15 strategic actions in Talent ManagementIncrease employee innovation by: The targeted hiring of innovators Retaining innovators Identifying and minimizing the barriers that innovators face within the Corporation HR must help shape the culture so that the expectation of continuous innovation permeates every business area and function 13
  14. 14. The top 15 strategic actions in Talent Management3) Reward great people management Most managers simply dont spend enough time on talent management activities Managers are not directly measured or rewarded based on how well they manage their talent. This is true even though HR “owns” all of the key components related to measuring and rewarding (performance management, performance appraisal, competencies and reward systems) 14
  15. 15. The top 15 strategic actions in Talent Management3) Reward great people management (Continued) The key action step is to develop a "people management scorecard" for each individual manager and reward them based on their performance against those standardsNext: An example of a manager scorecard > 15
  16. 16. Quarterly people management scorecardName _________________ Dept._________ Below aver.Quarter # ______ Bot. 10% Top 25% Average Top 5%Key people mgmt performance factors 1.Team productivity & quality 2.Employee innovation impacts 3.Quality of hires 4.Retention of key employees 5.Development of leaders 6.Internal release of developed leaders 7.Employee satisfaction with feedback 8.Best practice sharing Average combined rating on the 8 factors ______ 16
  17. 17. The top 15 strategic actions in Talent Management4) Identify and fix bad managers Research by Google has shown that in most cases, an employee’s manager is the single highest impact factor on the hiring, retention, innovation, productivity and the development of employees Yet most organizations have no formal program for identifying weak managers Strategic actions would include implementing surveys and metrics to identify with managers and to provide general list with proven tools and approaches to improve a manager’s people management performance 17
  18. 18. The top 15 strategic actions in Talent Management5) Convert Talent Management metrics into their dollar impact Unfortunately, most traditional talent management metrics fail to impress executives because they are not expressed in "the language of business", which is dollars Senior managers care most about increasing revenue, not Over Head functions 18
  19. 19. The top 15 strategic actions in Talent ManagementHow to convert (Continued) Saying we have a 12% turnover rate, a 54% engagement rate or an 87 day time to fill generally wont impress senior managers because the metrics are not expressed in their dollar impact on corporate revenue In contrast, stating that every percentage point increase in regrettable employee turnover costs us $7.2 million get an immediate reaction. Work with the CFOs office to credibly calculate the impacts 19
  20. 20. The top 15 strategic actions in Talent Management6) Calculate the risks of weak Talent Management Risk management is an increasingly important function throughout the business, but unfortunately, few talent management functions have put anyone charge of risk management Risk managers identify and quantify the risks associated with potential talent problems (its probability and likely costs) 20
  21. 21. The top 15 strategic actions in Talent Management6) Calculate the risks (Continued) Risk managers can show how underfunding important talent programs can create tremendous economic risks such as losing key innovators to competitors, failing to have enough developed leaders and a weak employer brand that drives top candidates away 21
  22. 22. The top 15 strategic actions in Talent Management7) You need to prepare for a leadership gap A combination of increased growth and higher turnover rates will mean that most corporations will begin to suffer because of a lack of leadership benchstrength In addition, because the type of leaders that will be needed will also change, the entire leadership and succession program will have to be re-examined and new social media and project rotation tools will need to be developed and implemented 22
  23. 23. The top 15 strategic actions in Talent Management8) Speed up internal movement through proactive internal placement Few things increase productivity, retention and development faster than faster internal movement Unfortunately, most corporate programs require the employee to initiate the movement and to find the "correct" placement area A more strategic approach is a proactive one where recruiters periodically identify and then help to correctly place employees that should be moved both for their own and for the corporate good 23
  24. 24. The top 15 strategic actions in Talent Management9) Improve internal best practice sharing Talent management leaders spend most of their time and resources on developing new programs and approaches Surprisingly, you can have a higher impact faster and at lower cost by simply identifying and sharing "hidden" existing best practices A superior approach is a proactive one that seeks out these affected practices wherever they might be in the organization. And once identified, they are shared in such a manner that managers easily understand their value and implement them 24
  25. 25. The top 15 strategic actions in Talent Management10) Update your retention program Retention programs have been allowed to atrophy because the economy has reduced most employee turnover to a trickle Unfortunately, turnover is about to dramatically increase, so processes to prioritize key individuals, processes for identifying who is at risk and retention toolkits need to be reinvigorated before it is too late 25
  26. 26. The top 15 strategic actions in Talent Management11) Employee referral programs need to be reinvigorated As the rate of hiring and competition for talent increase, stagnant employee referral programs need to be re-examined Because they produce the highest quality and volume of hires, referrals as the percentage of all hires should begin to reach over 40% Employee referral programs must be closely integrated with the developing social media approaches 26
  27. 27. The top 15 strategic actions in Talent Management12) Assess your external employer brand During the economic downturn, the area of employer branding has been frequently ignored because very little hiring was going on Unfortunately during the same time the reputation of many corporations has been tarnished as a result of layoffs, salary/promotion freezes and a reduction and development resources Corporate images in general and in some specific industries like banking, oil etc. have been damaged by recent events and “occupy” type movements 27
  28. 28. The top 15 strategic actions in Talent Management12) Your external employer brand (Continued) The growth of, blogs, Twitter and Facebook now make it much easier for negative messages to be spread At the very least, the positive/negative aspects of your employer brand should be measured and monitored before an upturn in hiring begins 28
  29. 29. The top 15 strategic actions in Talent Management13) Re-examine your social media approach Although many talent managers have "done something" in the area of social media recruiting, its important to now realize that the potential for social media in talent management is much greater than almost everyone anticipated Plans should be developed to determine how social media can positively impact training, employee development, learning, retention, collaboration, problem identification, crowdsourcing of answers and best practice sharing 29
  30. 30. The top 15 strategic actions in Talent Management13) Re-examine social media (Continued) The mobile platform should be examined in a similar manner because it is rapidly becoming "the dominant communications platform" for employees 30
  31. 31. The top 15 strategic actions in Talent Management14) College recruiting needs to be reengineered Communications and job seeking approaches have changed dramatically on college campuses but college recruiting programs have unfortunately been stagnant for years Program features that need to be examined include remote college recruiting, social media approaches aimed at college students, mobile platform approaches and marketing research to better understand the needs and the actions of top grads 31
  32. 32. The top 15 strategic actions in Talent Management15) Improve non-monetary motivation When compensation and cash rewards are limited, nonmonetary motivators need to be emphasized Unfortunately, the compensation function focuses almost exclusively on “expensive" salary, benefits and bonuses… even though a significant percentage of employee motivation comes from… recognition, praise and feedback 32
  33. 33. The top 15 strategic actions in Talent Management15) Improve non-monetary motivation (Continued) Talent management should develop non-monetary motivation tools for managers that are easy to use and that produce measurable results They should also target key employees and server them in order to identify “how to best manage and motivate me” plans 33
  34. 34. Benchmark firmsBenchmark firms to learn from Many are from the Silicon Valley, which has already returned to a "war for talent" (Google, Facebook, Zynga all approach talent management using a more scientific approach) Firms outside of technology have also taken some amazing steps so they should not be ignored (Zappos, Sodexho, CACI, DaVita, Deloitte, KPMG, Pepsi and the U.S. Army have all taken bold steps) 34
  35. 35. Other strategic actions in Talent ManagementAdditional strategic talent actions to considerOn top of the 15 major actions, some other strategicactions to that you should consider include: Prepare for VUCA, the new normal - HR plans, approaches and processes need to be improved so that they can handle the new business environment that we face (VUCA = Volatility, Uncertainty, Complexity, Ambiguity) Increasing revenues – examining how talent management actions can directly increase individual employee revenue generation 35
  36. 36. Other strategic actions in Talent ManagementAdditional strategic talent actions to consider Integration of HR functions – an almost universal weakness is a lack of integration. Talent management functions must more closely cooperate, coordinate and integrate so that they work seamlessly Hire right before they do – if your firm doesnt have the strongest employer brand, location or glamorous product, you must develop a plan to quickly initiate hiring immediately before your talent competitors. A rapid "explode out-of-the- blocks" plan is also required 36
  37. 37. Other strategic actions in Talent ManagementAdditional strategic talent actions to consider Avoid Corporate Headcount “Fat” - setting up a process that ensures that the return to hiring doesnt result in a surplus of employees (i.e. headcount fat) Competitive analysis - identifying the competitive advantage that your talent management practices provide compared to your talent competitors Prioritizing – prioritizing jobs, managers and talent management programs so that your limited resources provide the highest possible impact 37
  38. 38. Other strategic actions in Talent ManagementAdditional strategic talent actions to consider SWAT team – creating a rapid response team that can respond to sudden talent management opportunities and problems Alerts - providing a process that alerts managers about upcoming problems before they get out of hand Lean or agile Talent Management - adapting lean, CRM and agile business approaches and tools to the area of talent management 38
  39. 39. Other strategic actions in Talent ManagementAdditional strategic talent actions to consider Remote work opportunities – as technology, communications and social media tools improve, talent management must develop ways that allows top talent to work "from anywhere“ Forward-looking metrics – unfortunately, almost all current talent management and recruiting metrics are backward looking, in that they tell you what happened in the past. Instead, forward looking and predictive metrics that allow for improved decision-making need to replace them 39
  40. 40. Other strategic actions in Talent ManagementAdditional strategic talent actions to considerReengineer performance appraisals - this is an almost universally disliked process that requires tremendous amount of time but produces no measurable results. A completely new approach is requiredTransparency - throughout the business world there is an increasing emphasis on transparency and openness. The time has come for talent management leaders to reassess their entire approach to secrecy, privacy and the degree of openness with employees and applicants 40
  41. 41. Other strategic actions in Talent ManagementAdditional strategic talent actions to consider Cloud Talent Management - HR and talent management processes and technology cannot be exempt from the powerful trend to move everything to the cloud Prepare for the skill gap – the skills required by organizations will continually to upgrade, while the available labor with those skills will continue to decline 41
  42. 42. Did I make you think? 42
  43. 43. Audience Select the #1 “dumb thing” that recruiters do1. Using active approaches for passive candidates2. Not identifying their job acceptance criteria3. Not prioritizing jobs4. Not managing the candidate experience5. Expecting dull position descriptions to sell6. Not learning the business7. Using the same rec. process for different level jobs8. Making slow hiring decisions9. Assuming interviews are accurate10.Not taking advantage of EE referrals