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Practical talent managemet ver 1
1.
Practical Talent Management HOS
JAKARTA – HOS MEDAN
2.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 2 FACILITATOR BIMA HERMASTHO Founder & owner PT. Freemind Management Consulting – Business Performance Improvement Consulting http://www.freemind-consulting.com Commissioner of PT RMT – an EPC & vendor of Exxon Mobil Oil Indonesia (EMOI Cepu), PT. Patra Tri Daya Group, PT. Indosigma Quality, PT. Alfa Matrixindo, PT. Beka Makmur, Jakarta Founder Indonesian Balanced Scorecard School (http://www.bsc-indonesia.com) & Indonesian Six Sigma School (http://www.sixsigma-indonesian.com) - both are free online course in Balanced Scorecard and Six Sigma. Founder Indonesian Human Capital Institute, a free online HRM course (http://sdm-indonesia.net) Professional experiences: various positions from Management Trainee, HR Manager, TPM Training Manager, OD Senior Manager, Human Capital & OD Director in local and global companies (PT. Teleperformance Indonesia, PT. Multi Bintang Indonesia Tbk, PT. Coats Indonesia , PT. Polysindo Eka Perkasa – Asia Pacific Fibre, etc) Active & registered member: SHRM (American Society for HRM), ASTD (American Society for Training and Development), ASQ (American Society for Quality) & ISSP (International Six Sigma Professional Society) Doctorate degree in “Strategic HRM & Total Quality Management” – UNDIP Certified Balanced Scorecard Professional Certified Lean Management Professional Certified Global Professional in HRM Certified Six Sigma Black Belt Certified Kaizen Professional TPM (Total Productive Management) Trainer Certified Mediator on ADR (Alternative Dispute Resolution) bima@freemind-consulting.com +62 8122862849 http://www.bsc-indonesia.com http://www.sdm-indonesia.net http://www.freemind-consulting.com
3.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Outline • Talent Management Fundamental • Talent Management Toolkit: Competency • Talent Management Toolkit: Performance Alignment Review (PAR) • Talent Review & Rating Calibration • Talent Development Program & Retention Strategy • Practical Software : > Organization Plus (Charting & Modelling) > Organization Publisher (Charting, WF Analytics & 9 Box Grid) 3
4.
Talent Management Fundamental
5.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 What is Talent Management? The purpose of TM is to ensure that the right supply of talented workforce is ready to realize the strategic goals of the organization both today and in the future Organization’s efforts to attract, select, develop, and retain key talented employees in key strategic positions. Talent management includes a series of integrated systems of recruiting, performance management, maximizing employee potential, managing their strengths and developing retaining people with desired skills and aptitude 5
6.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Management • TM introduced by Mc Kinsey consultants, late 1990’s • TM is identified as the critical success factor in corporate world • TM focuses on > differentiated performance: A, B, C players influencing company performance and success > identifying key positions in the organization !!! Surveys show that firms recognize the importance of talent management but they lack the competence required to manage it effectively 6
7.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 What is Talent? According to McKinsey; talent is the sum of • a person’s abilities, • his or her intrinsic gifts, • skills, knowledge, experience , • intelligence, • judgment, attitude, character, drive, • his or her ability to learn and grow. 7
8.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Who are Talented People? • They regularly demonstrate exceptional ability and achievement over a range of activities • They have transferable high competence • They are high impact people who can deal with complexity (Robertson, Abbey 2003) 8
9.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Why Organizations Need Talent Development? • To compete effectively in a complex and dynamic environment to achieve sustainable growth • To develop leaders for tomorrow from within an organization • To maximize employee performance as a unique source of competitive advantage • To empower employees: Cut down on high turnover rates Reduce the cost of constantly hiring new people to train 9
10.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Management Model • There are different approaches to talent management in organizations • A successful TM model has to link 1. TM creed (culture, values, expectations) with 2. TM strategy and 3. TM system. (Lance and Dorothy Berger, 2011) The values, expectations and elements of > the desired culture and > the business excellence should be embedded in HR systems as selection criteria, competency definitions, performance and promotion criteria and development processes. 10
11.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 The Talent Creed • “A TM creed is the set of core principles, values and mutual expectations that guide the behavior of an institution and its people” • It describes in general terms what types of people are expected to work in the organization and what type of a culture is desired to achieve success 11
12.
©SHRM 2013 bima@kotakpos.info
ph. +628122862849 The Talent Strategy Describes what type of people the organization will invest in and how it will be done Besides the specific elements of their creed, the talent strategy of all high performing organizations should have these directives: 1) Identify key positions in the organization (not more than 20, 30 %) 2) Assess your employees and identify the high performers (classify according to their current and future potential) 3) Retain key position backups 4) Make appropriate investments (select, train, develop, reward) 12
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Assessing the Employees Superkeepers- greatly exceed expectations (3-5%) Keepers – exceed expectations (20 %) Solid citizens- meet expectations (75 %) Misfits- below expectations (2-3 %) (Berger and Berger, 2011) 13
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Allocating Investments in People Superkeepers- receive about 5 % of all the resouces; need very high recognition, compensate much more than the pay market, promote very rapidly Keepers –receive about 25 % of all the resources, need high recognition, compensate more than the pay market, promote rapidly Solid citizens- receive about 68 % of all the resources, need recognition, compensate at the market level or just above Misfits- receive about 2 % of all the resources for some, compensate at below market average (Berger and Berger, 2011) 14
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Management System Implementation program of the talent strategy which has a set of processes and procedures (1) assessment tools (2) multi-rater assessment (3) diagnostic tools (4) monitoring processes If the management is not willing to use assessment in their organizations they can’t do talent management 15
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Assessment Tools for TM The five assessment tools should be linked to ensure that each assessment is consistent with the four other evaluations • Competency Assessment • Performance Appraisal • Potential Forecast • Succession Planning • Career Planning 16
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Multi-Rater Assessment • Employee. The owner of the career plan that is aligned with the succession plan • Boss. The primary assessor • Boss’s boss. The key link in the vertical succession and career plan • Boss’s peer group. Source of potential new assignments in the same or other function 17
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Diagnostic Tools SuperkeeperTM reservoir. SuperkeepersTM are employees whose performance greatly exceeds expectations, who inspire others to greatly exceed expectations, and who embody institutional competencies. Keeper Key position backups. The “insurance policies” that ensure organization continuity. Every key position should have at least one backup at the “Keeper” (exceed job expectations) level. Surpluses. Positions with more than one replacement for an incumbent. While ostensibly a positive result of the talent management process, it can be a potential source of turnover and morale problems if the replacements are blocked by a non-promotable incumbent and/or there is no realistic way most of the promotable replacements can advance. Voids. Positions without a qualified backup. Determine whether it will transfer someone from the surplus pool, develop alternative candidates, or recruit externally. Blockages. Non-promotable incumbents standing in the path of one or more high-potential or promotable employees. Problem employees. Those not meeting job expectations (measured achievement or competency proficiency). Give opportunity to improve, receive remedial action, or be terminated. The time frame should be no longer than six months. (Lance and Dorothy Berger, 2011) 18
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Monitoring Processes Evaluate the results of talent management system on a regular basis for • quality, • timeliness and • credibility 19
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Talent Management Toolkit:
Competency
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 What is competency? Competencies are the core elements of talent management practices They are the demonstrable and measurable knowledge, skills, behaviors, personal characteristics that are associated with or predictive of excellent job performance. Examples > Adaptability, teamwork, decision making, customer orientation, leadership, innovation etc. 21
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Competencies and Definitions Action Orientation Targets and achieve results,overcomes obstacles, accepts responsibility, creates a results-oriented environment..... Interpersonal Skill Effectively and productively engages with others and establishes trust, credibility, and confidence with them Creativity/Innovation Generates novel ideas and develops or improves existing and new systems that challenge the status quo, takes risks, and encourage innovation Teamwork Knows when and how to attract, develop, reward, be part of, and utilize teams to optimize results. Acts to build trust, inspire enthusiasm, encourage others, and help resolve conflicts and develop consensus in supporting higperformance teams (Berger and Berger, 2011) 22
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Why Competencies? The challenge is to identify which competencies the organization expects to see in their people The starting point of the model is the creed (values, principles, expectations) and the business strategies Through a competency model the organization sends a consistent message to the workforce about “what it takes” to be successful in the job Helps employees understand what helps drive successful performance The Competency Model approach focuses on the “How” of the job. Competency model is behavioral rather than functional, focuses on the people rather than jobs Competency models are outcome driven rather than activities (Job descriptions focus on activities, competencies focus on outcomes) Integrates HR strategy with business strategy –both focus on outcomes 23
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Why Competencies? The competency model serves as the foundation upon which all workforce processes are built. Competencies promote alignment of talent management systems by creating a common language that enables these systems to talk with each other! That is, results of one TM system is used as the input data for the following TM system. 24
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 The Competency Model • The Competency Model identifies usually three groups of competencies: > Core competencies for the entire organization to shape the organizational capabilities and culture required to achieve the strategic goals(5 or 6) > Leadership competencies for the management teams of various levels for selection, career planning and development > Functional (technical)competencies (specific for each job family) 25
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Developing a Competency Model Use commonly available “ready to use” models with small adjustments for your organization Develop own competency model with help of consultants Behavioral Benchmarking compare superior performers with other best people in the organization and in other benchmark companies 26
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Developing Organization’s Own Competency Model Overview of current tasks and responsibilities Come to agreement about what successful “outcome driven” performance looks like Review of competency library and selection of “must haves” for the position Rank top competencies as demonstrated by exemplary (superior) performers Identify of those competencies that align with the vision, mission and strategic plan of the organization Verify the competencies with a larger sample of the organization 27
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Choosing Competencies Before choosing competencies in an organization following requirements must have been completed: • Establishment of vision, mission, values • Strategic business goals • Identification of the tasks, responsibilities and outcomes expected from each position • Identification of the superior (exemplary) performers • Satisfactory competency library 28
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Management TALENT=COMPETENCE+COMMITMENT+ CONTRIBUTION • Being competent is not only enough to be a talent • The competent person should be committed to the causes and goals of the organization • And should be able and willing to contribute to the success of the organization So, developing your talent is not enough, the organizations need to take all the measures to motivate, reward their talent pool to gain their commitment and contribution. Retention is also essential to gaurantee future alignment of the talent with the right key positions 29
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ph. +628122862849 Talent Management Model 30
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Management Model • Expectations for the future. Businesses should identify > Job roles > Spesific objectives > Competencies • Capabilities to meet the expectations • Work environment > Managerial support > Rewards and recognition > Removing barriers • Feedback systems needed to > Focus > To keep on track > Develop 31
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 LEADERSHIP TALENT MODEL EVALUATE ORGANIZATIONAL TALENT CREATE FEEDBACK- BASED PLANS DEVELOP TALENT PLACE TALENT STRATEGICALLY What do we need? Where? What do we have? Are we aligned with strategy? LEADERSHIP VALUES & BEHAVIORS • What are our strengths and needs? • What top talent development is needed? • How will we develop our top talent? • What resources are needed? • How will the resources be made available? • Are we placing people to maximize their potential? • Are our placement actions aligned with our strategy? STRATEGIC DIRECTION Infrastructure (Delivery, Communications, Integration) & Metrics MANAGE PERFORMANCE • How is our top talent performing? – Results – Values & Behaviors • Are incentives aligned with performance goals? 32
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ph. +628122862849 Talent Management Cycle 33
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Management Process Organization Analysis -Job descriptions -Job spesifications Assessing the Emloyees A B C D Potential Candidates Performance Evaluation Buss. Results Personal Development Activities Career Committees Potancial Candidates and Succession Lists Approval of the Lists Analysis Assessment Development Talent Development Programs January - March April May on...... 34
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Structure of a Talent Management Program • Building Block 1: Identification and assessment of competencies • Building Block 2: Performance appraisals • Building Block 3: Succession and career planning • Development of talent (coaching, mentoring, training) • Linking compensation with the program (reward and motivate) • Targeting culture as an important driver of TM programs • Secure senior executives’ commitment to make the talent management model work • Evaluate the results of talent management system on a regular basis 35
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Integrated Functions of TM • Performance appraisals, assessments of potential, competency evaluations, career planning, and replacement planning (the core elements of talent management) should be linked to each other. • Stand alone functions are destined to end with failure 36
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Talent Management Toolkit: Performance
Alignment Review (PAR)
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Performance Management Goals • Create a common performance culture • Enhance individual, team and organizational effectiveness • Align individual performance with business goals • Create a culture of on-going feedback and development • Create a consistent methodology to assess employee contribution • Provide information to help determine > Compensation decisions > Promotions > Rewards & Recognition > Developmental Opportunities 38
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Performance Cycle Corporate Goal Setting & Alignment Goals Flow Down Setting Expectations Mid-Year Review Final Review Rewards $ Ratings Calibration Meeting Organization Goals, Priorities, Imperatives, Behaviors Perform, Monitor, Feedback Next Level Mgr HRMgr Mgr Mgr Development Process 39
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Performance Review Tempo Q4 Q1 Q2 Q3 Q4 Sept-Nov Dec-Feb Mar-May Jn-AugJn-Aug Goal setting & alignment Perform, monitor, feedback Mid-year review Final review Sept-Oct 40
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Example Behaviors Sustained Profitability: Reduce operating expenses; strengthen balance sheet; eliminate duplicate structures; improve effectiveness and efficiency Asset Velocity: Increase inventory turns; improve cash- to-cash cycle Execution Excellence: Reduce complexity; common repeatable processes; improve overall quality and responsiveness; collaborate better with each other; streamline our organization Revenue Growth: Continue to win new business; secure follow-on business Restore Employee Morale: Themes include change; flexibility; creating an environment of open & honest feedback; learning quickly; accepting new challenges • Integrity • Team Player • Champion Change • Coach Others • Continuously Learn To accomplish our Business Priorities… We must create a “XYZ Co” culture through demonstration of the right behaviors… Organization Goals, Priorities, Imperatives, Behaviors 41
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Business Priorities & Behaviors Integrity Team Player Coach Others Champion Change Continuously Learn Behaviors How work is accomplished Results What work is accomplished Performance to Expectations Business Contributions Equal Emphasis on Results & Behaviors 42
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Sample Behavioral Description Individual Contributor Manager of Others Executive • Asks for & offers help to others when needed. • Understands team & organizational goals. • Places team & organizational goals before personal goals. • Shares best practices with others. • Stays involved; actively participates. • Treats others with dignity and respect • Set expectations for cross functional; cross business cooperation • Promote the use of own and others’ capabilities to other functions • Proactively share information across organizational boundaries • Promote a team culture, recognizing the contributions of all team members • Share best practices across organizational boundaries • Treat others with dignity and respect • Address behavior in others that may damage constructive relationships • Remove organizational barriers to collaboration and teamwork • Share best practices across organizational boundaries • Achieve business results through collaboration with others; place higher priority on Solectron goals than own personal goals • Offer resources, even when it hurts, when it will help others achieve company goals • Treat others with dignity and respect • Actively engage with community and/or charitable organizations Team Player Work effectively and cooperatively with others; establish and maintain good working relationships; cultivate an active network of relationships; identify opportunities and take action to build strategic relationships. 43
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Performance Concept A00-04050117 Behaviors Performance Didn’t Meet Meet Didn’tMeetMeet Behavior Issue Balance Results & Behavior Issue Results Issue 44
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Performance = 5 Behaviors = 1 Performance = 5 Behaviors = 2 Performance = 5 Behaviors = 3 Performance = 5 Behaviors = 4 Performance = 5 Behaviors = 5 Performance = 4 Behaviors = 1 Performance = 4 Behaviors = 2 Performance = 4 Behaviors = 3 Performance = 4 Behaviors = 4 Performance = 4 Behaviors = 5 Performance = 3 Behaviors = 1 Performance = 3 Behaviors = 2 Performance = 3 Behaviors = 3 Performance = 3 Behaviors = 4 Performance = 3 Behaviors = 5 Performance = 2 Behaviors = 1 Performance = 2 Behaviors = 2 Performance = 2 Behaviors = 3 Performance = 2 Behaviors = 4 Performance = 2 Behaviors = 5 Performance = 1 Behaviors = 1 Performance = 1 Behaviors = 2 Performance = 1 Behaviors = 3 Performance = 1 Behaviors = 4 Performance = 1 Behaviors = 5 5 4 3 2 1 Behaviors Performance Overall Rating Guide 1 2 3 4 5 Exceptional Commendable Fully Effective Needs Improvement Unacceptable 45
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Rating Distribution • Managers have the flexibility to adjust distributions within guidance. Total distribution must equal 100%. • Distribution is to be applied when population sizes reach 100 or more. Small departments are not expected to meet the distribution. • Managers can include employees that have been managed out of the organization during the review period. These situations are limited to performance issues – not employees who have left in good standing. From To Rules 5 Exceptional 10% 0-10% 5 cannot exceed 10%; together cannot exceed 30%4 Commendable 20% 20-30% 3 Fully Effective 60% 50-60% Can be adjusted up or down 2 Needs Improvement 5% 10% + Cannot be less than 10%1 Unacceptable 5% 46
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Talent Review &
Rating Calibration
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Calibration Concept • The purpose is to create a review process that establishes a more consistent, equitable, and accurate performance evaluation and feedback environment across manager groups within functions. • The process facilitates a common understanding and method to arrive at final ratings • Distribution of ratings is not the goal 48
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Meeting Participation EVP VP Director Supervisor Individual Contributor Manager • Next Level Review • All “manager of managers” participate with their direct manager (peer group) • Matrix reporting relationships not included, only direct reporting relationships • Organization structure will drive number of meetings required • Sequence of meetings not important (e.g., “top down” vs. “bottom up”) 49
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Participation Example Function Leader Direct Report Direct Report Direct Report Next Level Leader Direct Report Direct Report Direct Report Calibration Meeting Calibration Meeting Etc… Important: Functional reviews; not site or region! 50
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Rating Profiles – Optional Resource 1 = Unacceptable EXCEPTIONAL • Top 10% of performers. Clearly stands out from others; exceeds all expectations, measures and targets against established objectives and/or standards • Self starter who takes initiative and works independently with minimum supervision; produces high quality products with very little rework required; always delivers on commitments • Proactively assumes additional responsibilities; willingly works outside of job scope for the good of Solectron; consistently surprises with level of effort, quality work, improvement suggestions • Proactive problem solver; looks for improvement opportunities with customers and/or process; recognizes what needs to be done and generates creative solutions • Clearly understands and supports organization strategy and priorities; understands how own work contributes to the success of Solectron • Recognized expertise; others seek out this person for guidance and counsel • Works across functions and organization boundaries to build strategic relationships; valued team player who builds effective partnerships • Considered a change champion; always open to new ideas and stimulates others to embrace change; model of flexibility, accepts changes and redirection as improvement opportunities • Openly shares information with others for the good of Solectron • Builds trusting relationships; provides constructive and honest feedback to help others succeed; accepts feedback from others and acts on the feedback for self-improvement • Willingly takes on new challenges; stretches current capabilities; seeks new learning opportunities 2 = Needs Improvement 3 = Fully Effective 4 = Commendable 5 = Exceptional 51
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Rating Calibration Tool – Data Entry Empl ID Comdef Site (Optional) Last Name First Name Job Grade (Optional) Status (T for Termed) Comdef Site Empl ID Last Name First Name Objectives Behaviors Final NP Scores Manager A Employee 1 3 3 3 Manager A Employee 2 4 4 4 Manager A Employee 3 3 3 3 Manager A Employee 4 3 3 3 Manager A Employee 5 3 3 3 Manager A Employee 6 3 3 3 Manager B Employee 1 5 4 5 Manager B T Employee 2 3 2 2 Manager B Employee 3 4 3 3 Manager B Employee 4 4 4 4 Manager B Employee 5 3 3 3 Manager B Employee 6 3 3 3 Manager B Employee 7 4 4 4 Manager B Employee 8 4 3 3 Manager B Employee 9 5 5 5 Manager B Employee 10 4 4 4 Manager C Employee 1 3 3 3 Manager C T Employee 2 3 2 2 Manager C Employee 3 3 3 3 Manager C Employee 4 3 3 3 Manager Employee Ratings 52
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Rating Calibration Tool – Distribution Ratings Distribution - Numbers 0 2 12 4 2 0 2 4 6 8 10 12 14 1 2 3 4 5 Rating NumberofEmployees Ratings Distribution - Percentages 0% 10% 60% 20% 10% 0% 10% 20% 30% 40% 50% 60% 70% 1 2 3 4 5 Rating PercentageofEmployees 53
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Talent Development Program
and Retention Strategy 54
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 55
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 9 Highest Performance Highest Potential Total Compensation Keep well ahead (25%) of market. Grant long-term incentives. Retention Assign a member of top management to monitor satisfaction and engagement. Engagement Assign to key committees, teams, networks; special invitations to meetings; provide opportunities to represent Company in community and industry forums. Exposure Arrange exposure to significant and relevant senior management/board members, Executive Development programs. Assessment Provide complete continuous assessment, evaluation and feedback alternatives. Coach Make coaches available for key skill development. Mentor Assign a senior level mentor. Assignment Move aggressively through a series of targeted, challenging, diverse and broadening jobs every 24-36 months. Development Use challenging jobs to enhance current skills and develop others. Consider as candidate for Company sponsored graduate or executive development programs. Is now performing with the best. Has the ability to take on major stretch assignments in new areas. Should be positioned to become a top leader in the future. Talent Management Plan POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 56
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 8 Middle Performance Highest Potential Total Compensation Keep ahead (10%) of market. Grant long-term incentives. Retention Assign a member of top management to monitor satisfaction and engagement. Engagement Assign to key committees, teams, networks; special invitations to meetings; provide opportunities to represent Company in community and industry forums. Exposure Arrange exposure to significant and relevant senior management. Assessment Provide complete continuous assessment, evaluation and feedback alternatives. Coach Make coaches available for key skill development. Mentor Assign a senior level mentor. Assignment Move through a series of challenging and diverse jobs every 24 – 36 months. Development Use challenging jobs to enhance current skills and develop others. Consider as candidate for Company sponsored graduate or executive development programs. Consistently meets expectations and has the ability to take on new and different challenges. Could be a senior leader in time. Talent Management Plan POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 57
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 7 Highest Performance Middle Potential Total Compensation Keep well ahead (20%) of market. Enhance short-term incentives. Retention Assign a senior manager to monitor satisfaction and treatment. Hold supervisor accountable to retain. Engagement Assign to key committees, teams, networks; special invitations to meetings. Exposure Facilitate and support internal and external networking in field of specialization; senior management should meet and know. Assessment Provide learning agility and competency assessment. Mentor Assign as a performance mentor to others. Assignment Keep in current assignment and role as long as possible and look for additional assignments for potential development. Development Put into a learning agility enhancement program or consider as candidate for Company sponsored graduate or executive development programs. Consistently performs with the best and can do more. Talent Management Plan POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 58
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 6 Lowest Performance Highest Potential Total Compensation Keep at midpoint of market. Retention Assign a senior manager and HR professional to monitor satisfaction and treatment. Hold supervisor accountable for performance support. Engagement Assign to key taskforces, study groups, networks; special invitations to meetings. Exposure Facilitate and support internal networking; senior management should meet and know. Assessment Provide complete continuous assessment, evaluation and feedback alternatives. Mentor Assign a senior level mentor. Coach Provide coaches for functional and direct job skills. Assignment Monitor performance in current assignment. Look for a closer fit for the next assignment. Development Use diversity of jobs to build performance capabilities; monitor performance closely. May be new in organization, assignment or in a stretch developmental job or role. May not be in a good fit job. Should catch up in time. Has the long term potential to be among the best. Talent Management POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 59
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 5 Middle Performance Middle Potential Total Compensation Keep at market mid-point. Retention Hold supervisor accountable to monitor satisfaction. Assignment Use to fill in gaps and play multiple roles. Development Choose either a performance enhancement (move to cell 7) or potential enhancement path (move to cell 8). Always does a good job (meets expectations). Can fill multiple roles. Versatile. Dependable. Adaptable. Flexible. Utility player. Talent Management Plan POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 60
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 4 Highest Performance Lowest Potential Total Compensation Keep ahead (25%) of market. Use soft rewards and recognition. Grant long-term incentives. Retention Assign a senior manager to monitor satisfaction and treatment. Engagement Assign to key committees, team, networks; special invitations to meetings. Exposure Facilitate and support internal and external networking in field of specialization; represent Company in industry related professional groups, benchmarking panels. Assessment Provide technical and functional skills assessment. Mentor Assign a as a functional / technical mentor to others. Coach Assign to teaching and coaching activities. Assignment Keep in current assignment and role as long as possible. Development Support honing functional / technical expertise. Consistently performs with the best. Knows the job and role extremely well. Plays a vital role in producing organizational results. Seasoned. Irreplaceable. Solid. Talent Management Plan POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 61
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 3 Lowest Performance Middle Potential Total Compensation Target 5-10% below market. Assessment Provide continuous performance assessment, evaluation and feedback for alternatives. Assignment Monitor on current assignment until performance improves. Development Put on performance improvement plan, with specific functional feedback and coaching. May be new in assignment or in a stretch developmental job or role. Might be misplaced. Should move up in performance in time. Has the potential to perform better. Talent Management Plan POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 62
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 2 Middle Performance Lowest Potential Total Compensation Keep at market. Retention Hold supervisor accountable for retention. Exposure Facilitate and support internal and external networking in field of specialization. Assessment Provide technical and functional skills assessment along with every third year general skills assessment and learning agility options. Mentor Assign a functional / technical mentor. Assignment Keep in current assignment and role as long as possible. Development Select either a performance improvement path (to cell 4) or a learning agility enhancement path (to cell 5). Performs up to standard (meets expectations). Limited upside outside current areas of expertise and fields of specialization. Talent Management Plan POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 63
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Cell 1 Lowest Performance Lowest Potential Total Compensation Freeze pay. Hold incentives. Retention If not correctable, out-counsel. Set a time limit. Assignment Move into better fit assignment or outplace. Development Put on a performance improvement plan. Consistently struggles to perform up to standard. Has trouble keeping up. Talent Management Plan POTENTIAL P E R F O R M A N C E 1 2 3 4 5 6 7 8 9 64
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Retention: Top 5 Drivers to Attract Employees of Choice (Towers Perrin) (Generation X/Y) 90% 72% 83% 52% 38% 0% 20% 40% 60% 80% 100% Driver Career Advancement Work-Life Balance Pay for Performace Starting Pay Health-Care Benefits 65
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Retention: Top 5 Drivers to Retain Employees of Choice (Towers Perrin) (Generation X/Y) 67% 82% 43% 72% 35% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Driver Effort of Organization to Retain Quality Staff Manager Motivation Reputation of Employer Opportunities to Learn Fairly Compensated for the Work 66
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Talent Retention: Top 5 Drivers of Employee Engagement (Towers Perrin) (Generation X/Y) 82% 26% 67% 91% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Driver Improve My Skills Reputaion of Employer Management Interest in Employees Delegated Decision Making Consistent Salary Criteria 67
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Total Rewards “Tools” External Position Equity Internal Position Equity Employee Pay and Recognition Equity Total “Non-Cash” Compensation – Benefits/ Retirement Ability to Fund all Aspects of the Program • Competitiveness in terms of Geography. • Competitiveness in terms of industry. • Level of competitiveness by organization and position. •Recruitment and Retention Trends. • Determine organizational value of positions regardless of market value. •Determine value of positions not matched to the market. •Determine the differences among “families” of jobs. • Determine internal pay levels of employees based on seniority, performance, or other methods. • Determine appropriate methods to recognize employee performance and contributions. • Understanding the impact of “Generations” in compensation decisions. • Addressing the rising cost of insurance in plan design. • The need to have more employee cost sharing. •Understanding pressures from organized labor. •The need for flexibility in addressing “generational” differences in both benefit and pension design. •Impact of fluctuating stock market on pension design strategies. •Funding all aspects of the program understanding the impact of current industry trends. •Determining the “ROI” of all programs to demonstrate the impact on effective recruitment and retention of staff required for the organization to succeed. •Proactively developing strategies that reduce cost impacts while remaining effective. 68
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Review of the “Generations” • BOOMERS (born 1945 – 1965) • Get involved because it is the right thing to do, because one should give back to their community • Hold a strong sense of hope • Value tradition, teamwork and loyalty • Have time to give to volunteer, as many women stayed home to raise a family 69
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 • GENERATION X (born 1965 – 1980) • Drawn to opportunities that offer them opportunities to learn, enjoy, and be recognized • Have been described as tough to motivate, too expectant, lazy, skeptics and loners • Describe themselves as caring, committed and seeking opportunities for learning and leadership • Value frequent feedback on their performance, recognition, increased responsibility and exposure to decision-makers • Attracting and retaining these members will depend upon an organization’s ability to be flexible, adaptive and responsive to their needs. Review of the “Generations” 70
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 • GENERATION Y (born 1980 – 1994) • Most valued traits are individuality and uniqueness • Have a global and diverse perspective that other generations did not have • Can be cynical and driven by a need for instant gratification • Strengths are their adaptability, innovativeness, efficiency, resiliency, tolerance and commitment • Challenge is motivating them to get involved and retaining them for a sustained period • To engage this group, organizations need to tell the truth, explain the why, tune in to their frequency, make them a star, and look for rewarding opportunities Review of the “Generations” 71
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 72
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©SHRM 2013 bima@kotakpos.info
ph. +628122862849 Thank you. 73
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