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High Impact HR: Going Beyond Typical Approaches to Build a High Performance Workforce

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Ultimately line managers and operating executives create (or prevent) a High Performance Workforce. They pick the talent (for better or worse), create the infrastructure for that talent to thrive (or not), and manage in a way that engages (or disengages). The CHRO can advise, influence, and urge line managers and operating executives to take the right steps. The HR function can create talent acquisition and talent management programs that enhance performance. But what else? How can HR have the biggest and fastest impact on building a High Performance Workforce? Rich Iorio spent 20+ years with Towers Watson helping F1000 CHRO’s and HR functions make an impact. He’s seen their best practices, and worst. Today Rich is the CHRO for the University of Chicago. Drawing on a career focused on driving HR performance –as a sought after consultant and practitioner – Rich will give you practical advice for what you can do to ensure a High Performance Workforce becomes reality in your company.

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High Impact HR: Going Beyond Typical Approaches to Build a High Performance Workforce

  1. 1. High Impact HR: Going Beyond Typical Approaches to Build a High-Performance Workforce May 29, 2014
  2. 2. Contents • Capital Expenditure vs Talent Acquisition and Development • Talent Costs • Optimizing Talent ROI • UChicago Case Study • Key Learnings 2
  3. 3. Comparing investment decisions – rigor and stakeholder involvement 1. Identify Potential Opportunities and Generate Proposals 2. Evaluate Opportunities 3. Estimate Cash Flow and Conduct ROI Analysis 4. Get Stakeholder Review and Input 5. Select Project(s) and Gain Approval 6. Implement 7. Follow Up and Monitor $500,000 Capital Expenditure = Typically requires senior leader involvement Hiring manager typically makes decision with limited to no senior leader or HR involvement $100,000 Hire / Up to $500,000 Cost 1. Determine Position Requirements and Post Position 2. Screen and Select Candidate 3. Offer Candidate Position; Candidate Begins 3
  4. 4. Is less rigor causing bad hiring or underinvesting in talent? Bad Hiring Decision Underinvesting in Talent • Stakeholder involvement • Recruiting strategy • Short and long-term view • Department needs and structure • Position requirements • Speed • Limited talent pool • Fit • Mistake • Manager/HR partnership • Employee needs • Operational focus • Long-term view • Resources and tools • Time • Distractions 4
  5. 5. Missed opportunities to maximize value Time Value Employee base pay = $100,000 Bad hire exited after 1 year = up to 2.5x base pay Bad hire Seeks opportunities and recognition Engaged about growth and opportunities Realizes it’s just “talk” Disengages Answers the recruiter’s call Gives up and leaves Asks for promotion or expects raise Bad hiring decisions and high performers leaving can cost millions Manager in denial Too busy to deal with it Other excuse? Good hire; but misaligned investments 5
  6. 6. Finding the right talent is hard enough, now we have to figure out how to keep them? Workforce Segment Problems Attracting Problems Retaining Critical skill employees 66% 41% High potential employees 49% 38% Top-performing employees 48% 35% All employees 18% 14% Source: Towers Watson 2013 Talent Management and Rewards Study, North America 0% 10% 20% 30% 40% 50% 60% 2007 2008 2009 2010 2011 2012 2013 Critical Skill High Potentials Top Performing All Employees Percentage Reporting Problems Retaining 6
  7. 7. • Base pay, incentives, medical and benefits • Orientation, training and development Talent costs can be significant • Severance, Cobra, unemployment, outplacement • Lost productivity/backfill • Disruptions • Coaching and performance management • Employee motivation and morale Introductory Investment Costs Tangible Costs Exit Organization Intangible Costs • Recruiting and search firms • Sourcing, selecting and courting • Onboarding • Sign on bonus 7
  8. 8. Optimizing ROI on talent decisions Talent Stewardship People Manager HR Partners People Manager People Manager People Manager HR Partner HR Partner HR Partner 8
  9. 9. UChicago: Complex Organization The University of Chicago Students University Faculty & Staff Union Medical Center Academics National Labs & Affiliations The University of Chicago (Hyde Park, Paris, Beijing and Delhi) 15,000 23,000 1,100 7,100 82 depts., 8 schools, 5 divisions 5,000 9
  10. 10. UChicago: Snapshot • Lack of overarching HR and talent philosophies • Inconsistent approaches – Position requirements – Role identification – Performance expectations and performance management – Talent assessment and succession planning – Coaching framework – Sourcing and selecting • Limited HR/Manager partnership • HR transactional versus advisory What we had… • Losing talent • Going outside for talent – Search firm costs – Internal talent pool – High potential identification – Talent movement • Risk and exposure • Disengaged staff …resulted in 10
  11. 11. A model we’ve all seen before… HR Partners HR Centers of Expertise HR Administration and Operations People Managers …making this work in a complex environment is not that straight-forward 11
  12. 12. Demonstrating value Creating Institutional Partnership Building Institutional Capacity Other Engagements • Organization effectiveness and structure • Vision and strategy sessions • Team building • Talent exchange • Redefining policies and procedures • Connecting the community 12
  13. 13. How is UChicago HR delivering the value? • Building a new team • Staffing and deploying like a consulting firm • Creating one HR • Letting managers be managers, not HR experts – Educate and equip managers – Be available – Get the right people involved • Making it a desirable and sustainable partnership with HR • Recognizing it’s a shared responsibility 13
  14. 14. Key learnings for all of us • Hire strategically • Partner to build the infrastructure that allows talent to thrive • Check in with your managers • Speak their language • Be the HR experts • Redefine yourselves and/or offerings, as needed • Create the culture – an environment of partnership, trust and collaboration between HR and managers • Recognize it will take time, but it is an investment you can’t afford not to make 14
  15. 15. Wrap Up Questions? Rich Iorio Vice President, Chief Human Resources Officer richiorio@uchicago.edu 15

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