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The New Model for Talent Management: Agenda for 2015

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Corporate talent management has matured over the last ten years. In the light of today's new world of work, the globalization of the workforce, and the power of Millennials, it's time to rethink the model. Talent Management today is not just integration of HR - its a new set of 9 imperatives every company must address.

Published in: Recruiting & HR, Business
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The New Model for Talent Management: Agenda for 2015

  1. 1 The Talent Agenda for 2015 What comes after “Integrated Talent Management?” Josh Bersin Principal, Deloitte Consulting LLP October, 2014
  2. 2  Who We Are - Global provider of leading practices, trends, and benchmarking research in talent management, learning, and strategic HR. - 60% of the Fortune 100 are Bersin by Deloitte research members, with more than 19.5 million employees managed by HR teams using Bersin Research. Broad Research Practices •Human Resources •Leadership Development •Learning & Development •Talent Acquisition •Talent Management Offerings -WhatWorks® Membership: Research, Tools, Education, Benchmarking -IMPACT®: The industry’s premiere conference on the Business of Talent -Advisory Services & Consulting Human Resources Leadership Development Learning & Development Talent Acquisition Talent Management
  3. 3 Research Basis
  4. 4 How the Talent World has Changed “Our candidates today are not looking for a career…” “They’re looking for an Experience.”
  5. 5 Top Global Talent Priorities % Rated “Urgent” or “Important” 60% 62% 67% 69% 70% 71% 74% 75% 75% 78% 78% 89% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Diversity & Inclusion The Overwhelmed Employee Fix Performance Management Reinvent L&D Integrated HR Technology Globalized HR & Talent Management Talent & HR Analytics Workforce Capabilities Talent Acquisition & Access Reskilling HR Retention & Engagement Leadership Gaps Deloitte Global Human Capital Trends Research, n=2500, 2/2014 v Areas of Biggest Capability Gap
  6. 6 The Old Idea of Integrated TM  Slow Response to Changing Business Needs - Inability to identify current and future talent gaps - Hiring strategy and development planning not in sync - No clear picture of future “talent profile” - Leadership pipelines in jeopardy  Disconnected Decision Making - Data and processes not integrated - Talent not shared across business units - Learning plans not linked to assessments and skills gaps in current talent pool - Lack of visibility into talent gaps  Not responsive to Employee Demands - Employees want career development - Defined career paths and competencies not clear and consistent - Talent mobility difficult during change - Managers still the weakest link in organizational performance  Administratively Intensive - Data entry is repetitive - High volume of manual work to complete HR review processes - Difficult to obtain executive-level talent information - Hard to plan for the future Learning & Development Sourcing & Recruiting Performance Management Leadership Development Succession Planning Workforce Planning Compensation - Benefits Traditional Silos of HR Integration… But… to what end?
  7. 7 High Impact Talent Management® Methodology High Impact Talent Management® © Bersin & Associates Process Redesign Process Integration Talent Gaps and Solution Strategy Performance Management Strategy Business Units Business Units Business Units Talent Plan Talent Plan Talent Plans Sourcing and Recruiting Strategy Talent Systems Strategy Learning and Development Strategy Compensation & Rewards Strategy Workforce and Marketplace Assessment Business Problem Identification Business- Related Talent Challenges HR Processes Systems and Process Implementation 1 2 3 4 Business Plans & Challenges Leadership Devt. Succession Strategy Competency Mgt. Strategy
  8. 8 Attracting & Acquiring Talent Managing & Developing Talent Extending Talent Understanding & Planning Talent Employment Brand Social Sourcing Talent Networks Mobile Job Sites Candidate Marketing External Brand Work Environment Mission and Values Diversity & Inclusion Work-Life Balance Rewards Recognition Performance Management Goal Setting Career Management Leadership Development HIPO Assessment Professional Career Mgt Technical Career Mgt Contract Labor Alumni Programs College Recruiting Talent Networks Supply Chain Talent Analytics WF Planning Engagement Retention Mgt Segmentation L&D Coaching Certification LinkedIn Glassdoor Reputation Suppliers Partners Data Providers MOOCs, Content Providers Assessments Job Networks Brand Management Development Career Lattice Academia Partners The Talent Ecosystem: Everything is Connected
  9. 9 Driving Performance & Development Assessing & Improving Corporate Culture Accelerating Time to Competency Improving Management & Leadership Improving Career & Talent Mobility Planning & Analyzing Talent Delivering and Managing Employment Brand Improving Speed and Quality of Hire Driving Engagement and Retention Talent Imperatives for 2015 Diversity, Work Environment, Purpose, Values, and Mission
  10. 10 Agenda  Talent Acquisition  Engagement and “Simply Irresistible”  Performance Management  Talent Mobility – Career Development  Learning & Development  Talent Analytics  Becoming Bold
  11. 11 Talent Acquisition Most Important of All Changing the Way We Manage
  12. 12 Hiring Manager Relationships Candidate Pool Development Social Media Campaign Recruiter Training Governance & Decision Making Employee Referral Program TA Program Management Optimized TA Technology Diverse Candidate Slates Employment Branding Assessment Against Requirements Reporting & Analytics Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014 Top Practices in Talent Acquisition
  13. 13 Reactive Tactical Recruiting Recruiters are “order takers;” posting of positions on an as-needed basis. Minimal hiring compliance standards met; no real processes defined. No strategic focus on candidate experience. Level 1 Standardized Operational Recruiting Effective assessment of candidates against job requirements. Begin to establish strong relationships with hiring managers. Some link to workforce planning. Standard interview documents. Level 2 Integrated Talent Acquisition Strong employment brand. Active pipeline of candidates. Robust TA programs (e.g., diversity, alumni, employee referral). Investment in new TA products and services. Level 3 Optimized Talent Acquisition Strategic enabler of the business. Successful social media campaign. Recruiter training builds strategic capabilities. Ability to predict external forces & remain agile. Level 4 Talent Acquisition Maturity Model Bersin by Deloitte Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014 35% 29% 23% 13%
  14. 14 TA Performance Outcomes Overall, we found that Level 4 organizations are 2.6x more likely to perform higher than organizations at Level 1 across all TA performance drivers Level 1 Level 2 Level 3 Level 4 160% more likely to perform higher Level 1 Level 3 Level 4
  15. 15 The top three drivers of talent acquisition maturity are: 1. Building strong relationships with hiring managers 2. Cultivating pools of potential candidates long before hire 3. Driving employment brand 62% Create new products more quickly than competitors 88% Meet or exceed financial targets 100 % Meet or exceed customers’ expectations Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014 Three Key Drivers of Impact
  16. 16 Employment Brand and Employee Engagement? What Is the Difference Between…
  17. 17 The Reality Today… Employee Engagement IS Your Employment Brand
  18. 18 How The Puzzle Fits Driving Performance & Development Assessing & Improving Corporate Culture Accelerating Time to Competency Improving Management & Leadership Improving Career & Talent Mobility Planning & Analyzing Talent Delivering and Managing Employment Brand Improving Speed and Quality of Hire Driving Engagement and Retention
  19. 19 Re-Thinking Employee Engagement Building the Simply Irresistible Organization
  20. 20 Engagement Still Startlingly Low  Worldwide only 13% of employees are “highly engaged” in their jobs.  63% “disengaged” and 24% “actively disengaged.”  (Australia and NZ are twice as “engaged” as the rest of the world!) with 25% “highly engaged”  China, Middle East, Africa, India are the lowest at 6-8% fully engaged
  21. 21 Glassdoor Data Is Startling Rating of Senior Leadership: 2.8 out of 5 Rating of Career Opportunities: 2.9 out of 5 Rating of Company Culture: 3.1 out of 5 Rating of Work-Life Balance: 3.2 out of 5
  22. 22 Only 54% of employees would recommend company to a friend - Glassdoor, Bersin Analysis, October, 2014 And Even Worse
  23. 23 Yet Some Companies Outperform Average 3.1 What are these guys doing??
  24. 24 What we have learned: An Integrated Approach is Needed The Simply Irresistible Organization® Meaningful Work Great Management Fantastic Environment Growth Opportunity Trust in Leadership Autonomy Agile Goal Setting (ie. OKR) Flexible, humane work environment Facilitated talent mobility Mission and purpose Selection to Fit Coaching & feedback Recognition rich culture Career growth in many paths Investment in people, trust Small Teams Leadership Development Open flexible work spaces Self and formal development Transparency and communication Time for Slack Modernized Performance Mgt. Inclusive, diverse culture High impact learning culture Inspiration
  25. 25
  26. 26 The overwhelmed employee
  27. 27 Companies with “soul” had a return from 1996 through 2006, 8x higher than S&P 400 firms 1026% Companies with “soul” experience: • Much higher engagement and retention • Better customer service • Long-term profitability Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, 2014 Mission and Purpose Matters
  28. 28
  29. 29 Recognition Drives Retention 7.2% 8.7% 10.5% 0% 2% 4% 6% 8% 10% 12% Excellent (5) Fair (3-4) Poor (1-2) Effectiveness of Recognition Program at Improving Employee Engagement Voluntary Turnover Rate 31% Reduction in voluntary turnover! Source: Bersin & Associates Recognition Survey for HR Practitioners, January 2012, n = 573.
  30. 30 Disruptive New Tools & Technology Explosion of New Options to Measure, Monitor, and Sense Engagement  Next Gen Engagement - CultureAmp - RoundPegg - BlackbookHR - TinyHR - BetterCompany - NikoNiko  Culture - CultureIQ - Deloitte - Good.co  Wellness - Upjoy - Happify - Goodthink
  31. 31 Role of Organizational Culture Courage Commit ment Inclusion Shared Beliefs Collective Focus Risk & Governance External Orientation Change & Innovation DIFFERENTIATING CORE Courage represents the degree to which employees exhibit courage and resilience when confronting adversity, ethical dilemmas, failures, or opposition. Commitment represents the extent to which employees feel a sense of pride and ownership to the success and brand of the organization. Inclusion represents the degree to which an organization accepts and promotes diversity, uniqueness, and bringing one’s “authentic self” to the workplace. Shared Beliefs represents the degree to which employees demonstrate commitment to organization specific core values / beliefs. Collective Focus represents the degree to which an organization emphasizes collaboration, teaming, and cooperation in its operations. Risk and Governance represents the degree to which an organization emphasizes compliance, quality, and structure in its operations. External Orientation represents the degree to which an organization emphasizes a focus on customers and the external environment. Change & Innovation refers to the extent to which an organization emphasizes embracing ambiguity, change, and risk to drive expansion and innovation.
  32. 32 How The Puzzle Fits Driving Performance & Development Assessing & Improving Corporate Culture Accelerating Time to Competency Improving Management & Leadership Improving Career & Talent Mobility Planning & Analyzing Talent Delivering and Managing Employment Brand Improving Speed and Quality of Hire Driving Engagement and Retention
  33. 33 Rethinking Performance Management Changing the Way We Manage
  34. 34 The Crux of the Problem Only 8% of organizations believe their performance management process is worth the time they’re putting into it.
  35. 35 The Two Philosophies of PM
  36. 36 Science Behind Performance Management Status Certainty Autonomy Relatedness Fairness
  37. 37 Clarifying the Purpose of PM Coaching for Development Talent Decisions Performance Improvement Legal Documents Performance Feedback PERFORMANCE MANAGEMENT Talent Decisions Legal Documents Employee Motivation Compensation Performance Feedback Kelly Services Source: “Getting Away from the Score: Creating Better Ongoing Performance Feedback,” Bersin & Associates, 2012. .
  38. 38 10% 19% 26% 36% First-level Mid-level Senior-level Executives Source: Leadership Development Factbook Survey, Bersin by Deloitte, 2014, n=288 % of Positions with Successors Identified Succession Management: Does It Work?
  39. 39 Back Office, Operational, Contingent Employees Top Management Senior Management First Line Management Traditional View Talent Mobility SMEs (Consultants) Senior Specialists Functional Specialists / Front-Line Employees Middle Management
  40. 40 Back Office, Operational, Contingent Employees Top Management Senior Management First Line Management The Reality SMEs (Consultants) Senior Specialists Functional Specialists / Front-Line Employees Middle Management Top Management Contract Hire Job Intern Developmental Assignment Lateral Promotion Stretch Assignment External Assignment Upward Promotion Lateral Assignment New Assignment Part Time Loan New Candidate New Leader Exec Succession
  41. 41 The Talent Mobility Formula Bringing the Talent System Together DESIRED COMPETENCIES (KNOWLEDGE, BEHAVIOR, SKILLS) OPEN POSITIONS & OPPORTUNITIES INDIVIDUAL NEEDS / DESIRES INDIVIDUAL DEVELOPMENT PLAN (IDP) VISION STRATEGIC INITIATIVES DESIRED BUSINESS OUTCOMES VALUES MISSION ORGANIZATION NEEDS MOBILITY STRENGTHS DEVELOPMENT NEEDS CAREER ASPIRATIONS ANNUAL GOALS Succession Management Career Development Individual Development Plan (IDP) Strategic Competencies Organizational Planning / Analytics Performance Management Development Planning
  42. 42 Entire Organization Must Contribute to World-Class Career Management • Identify Career Goals • Maintain Profiles • Demonstrate Values • Socialize Interests • Create Internal Network • Share Expertise Employee • Define Job Profiles • Provide Coaching • Assess Potential • Identify Development Opportunities • Provide Candid Feedback • Share Talent Openly Manager • Provides Tools & Resources • Develop Career Models • Facilitate Process • Offer Career Coaching • Career Development Training • Integrate with Talent Mgmt HR • Infrastructure – Process, Technology, People • Create Culture of Mobility • Communicate Expectations • Create Transparent Marketplace Company
  43. 43 How The Puzzle Fits Driving Performance & Development Assessing & Improving Corporate Culture Accelerating Time to Competency Improving Management & Leadership Improving Career & Talent Mobility Planning & Analyzing Talent Delivering and Managing Employment Brand Improving Speed and Quality of Hire Driving Engagement and Retention
  44. 44 Modern, Disrupted L&D Building a Supply Chain of Skills
  45. 45 E-Learning & Blended Talent Management Experiential Learning Continuous Embedded 2001 2005 2015 Evolution of Corporate L&D From Content-Centric to Continuous and Experience-Centric 2010 E-Learning Get Materials Online Content Management Taxonomy Social, Collaborative Corporate University Blended Programs Learning Paths Role-Based Self-Authored Extreme Blended Gaming, Embedded, On-Demand Rich Catalog University 2020 Learning Everywhere All The Time We are Here Intelligent Learning Instructional Design Kirkpatrick Career Curricula Content Community 70-20-10 Job Relevant Classroom LMS as E-Learning Platform LMS as Talent Platform LMS as Data (Where is the LMS?) LMS as Experience Platform
  46. 46 The Continuous Learning Model Education, Experience, Environment, Exposure EDUCATION EXPOSURE ENVIRONMENT EXPERIENCE Intermediate – Grow in Role Current job development and competency expansion WHAT DO I NEED TO GROW IN MY CURRENT ROLE? Immediate – Perform Well Performance support and other tools for point-of- need learning WHAT DO I NEED TO PERFORM NOW? Transitional – Next Role Development of skills and relationships that will meet long-term business goals WHAT DO I NEED TO GROW IN MY CAREER?
  47. 47 “SUPPLY CHAIN” VIEW OF SKILLS of organizations have a senior leader running the training function 49% of organizations have a written business plan for learning <45% 70% 64% 43% 26% 48% 29% HILO Overall Competencies & Profiles Development Planning Career Paths L&D Has Challenges Leadership & Governance
  48. 48 Running L&D Is Complex  Build a local but federated learning organization  Rationale the clutter of content  Learn to leverage MOOCs, and SME authored content  Understand and drive learning culture  Rebuild the corporate university  Modernize learning infrastructure and measurement tools
  49. 49 The Workforce is Flocking to MOOCs 1.6m 2.5m 3.0m 3.0m 9.0m 4.0m 5.0m 5.0m 10.0m 19.0m 5 4 3 2 #1 5 4 3 2 #1 Total number of licensed or registered users 5 largest providers in…  Enterprise learning solutions  MOOCs Established enterprise learning solutions Massive, open, online course providers
  50. 50 Potential for MOOCs
  51. 51 Learning as Solution for Recruiting
  52. 52 Sum Total Skillsoft SAP Oracle Cornerstone On Demand Saba Blackboard SkillSoft Dupont NetDimensions Healthstream Cross Knowledge Meridian Halogen Silkroad Peoplefluent RISC Elsevier imc IBM Intellum Kallidus IBM Absorb RedTray Expertus Open Text Lumesse OnPoint Digital Intuition ADP Cegos Bloomfire Wisetail Desire2Learn Docebo Cyberwisdom Digital Ignite Healthcare Source INFOR Litmos CoursePeer Thomson Reuters Underwriters Labs BrainHoney Schoolology TMS K-12 / Higher Ed Vertical Specialists Social / Mobile Content The New Middle Compliance LMS Vendor Evolution Skillsoft Sum Total Content+Technology Wiley CrossKnowledge Content+Technology
  53. 53 The 1990s-2000s LMS Course Administration Enrollment and Scheduling Resource Management Extended enterprise e-learning e-commerce Virtual classroom Assessment tool Security and roles Reporting Learning Administration Collaboration “Discussion Group” Portals Learning Experience The Modern LMS “Old LMS” Feature Set + Deeper Analytics Dynamic Profile Expert Directory Communities Tagging Content Management Ratings Multi-rater coaching Feedback Content Sharing Content Management Mobile “New” virtual classroom Highly Flexible UI Talent Management Features Administration & Talent Social & Collaboration User Experience LMS as “Experience Platform”
  54. 54 Big Data in L&D Big Data Analytics for L&D Learning activity Employee demographics Employee activity Expert directory Job Performance Career movement The “Netflix” of Learning • Recommendations • New Learning Paths • Content De-Cluttering
  55. 55 Talent Analytics The Time is Now
  56. 56 Benefits & Compensation Hiring Recruiting E-Learning Performance Talent Integrated TM Solutions Systems of Engagement Evolution of HR Systems MARKET GROWTH - ADOPTION 2000 2012 PROGRESSION OVER TIME Compensation HRIS Benefits Administration Applicant Tracking Recruiting Sourcing Learning Management Competency Management Succession Management Performance Management Integrated Talent Mgmt End to End Suite Social Recognition Integrated Recruiting Back Office on-premise ERP SaaS and Cloud Integrated into Work Consumer User Interfaces Analytics Segmentation Prediction Mobile and Tablet, HTML5 ERP and HRMS Integrated “Systems of Engagement” Talent Analytics
  57. 57 Today: HR Analytics is Hot
  58. 58 What Our Research Discovered Bersin by Deloitte Talent Analytics Maturity Model® Level 4: Predictive Analytics Development of predictive models, scenario planning Risk analysis and mitigation, integration with strategic planning 4% Level 3: Advanced Analytics Segmentation, statistical analysis, development of “people models”; Analysis of dimensions to understand cause and delivery of actionable solutions 10% Level 2: Proactive – Advanced Reporting Operational reporting for benchmarking and decision making Multi-dimensional analysis and dashboards 30% Level 1: Reactive – Operational Reporting Ad-Hoc Operational Reporting Reactive to business demands, data in isolation and difficult to analyze 56%
  59. 59 What is Talent Analytics: Bring HR & Business Data Together Recruiting and Workforce Planning Comp and Benefits Performance Succession Engagement Learning & Leadership HRMS Employee Data Engagement & Assessment + Sales Revenue Productivity Customer Retention Product Mix Accidents Errors Fraud Quality Downtime Losses Groundbreaking New Insights & Tools for Managers to Make Better Decisions = Data management, analytics, IT, and business consulting expertise +
  60. 60 It Takes A Multi-Disciplinary Team Connected To IT Connected to Finance and Operations Connected to Executives Connected to External Data Know the business well Consultant with business Statistical rigor Good with numbers Curious, learning nature Visual storytelling Strong data management Process oriented World Class Analytics Team
  61. 61 Focus on The Problem, not the Data Business problem first, then determine what data is needed  Why is turnover high in some areas?  What sales or service processes drive account renewal?  Which training programs drive higher performance?  How do we assess the “right” candidates for sales positions?  What will be our talent gaps next year based on retirement? Business Problem Data
  62. 62 Driving Performance & Development Assessing & Improving Corporate Culture Accelerating Time to Competency Increasing Global Leadership Improving Career & Talent Mobility Planning & Analyzing Talent Managing A Compelling Employment Brand Improving Speed and Quality of Hire Driving Engagement and Retention Talent Imperatives for 2015
  63. 63 A Time for Innovation: Bold CHRO • 76% of candidates want to work for a company with “innovative work practices” … yet • 37% of HR managers say their “culture” prevents innovation • 28% say they have no money to innovate • 27% say they don’t have the experience or skills What impact would innovative work and management practices have on your work? “The Innovation Imperative,” June 2013, Korn Ferry International, n=4080

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