measuring the return on investment in talent management in the nhs. participant workbook may 7, 2015...
TRANSCRIPT
Measuring the Return on Investment in Talent Management in the NHS.
Participant Workbook
May 7, 2015
Paul Turner
Professor Paul Turner
Paul Turner is Professor of Management Practice at Leeds Business School and has held Professorial positions at Universities in Birmingham, Nottingham and Cambridge.
Paul Turner’s previous positions have included President of Europe, Middle East and Africa, Employee Care for the Convergys Corporation of Cincinnati, Group HR Business Director for Lloyds TSB, Vice President of the CIPD, a Director of BT, a Non-Executive Director of Blessing White and OPI and a General Manager for Plessey in both the UK and Asia Pacific.
Paul was leader of HR Master Classes in Dubai, Bangkok and Kuala Lumpur in 2014 and 2015, Chair of the European Human Asset Conferences from 2009 to 2014 and Chair of the European Talent for Tomorrow Conferences. He was a judge on the Middle East and European HR Excellence Awards, as well as the CIPD People Management Awards and a consultant on the CIPD research into Workforce Planning (2010) and Talent Management (2007).
Paul has spoken at business conferences around the world and is the author or co author of Make Your People Before You Make Your Products (2014), Meaning at Work- Employee Engagement in Europe (2012),Talent Management in Europe (2012), Workforce Planning (2010), The Admirable Company (2008), Talent (2007), Organisational Communication (2003) and HR Forecasting and Planning (2002). He has written articles for business journals and the International Press.
Paul has a first degree from the University of East Anglia, a Ph.D from the University of Sheffield and is a Companion of the CIPD.
The fundamental premise
‘If you make your people before you make your products, your people will satisfy your customers; which in turn will make your company profitable;
which in turn will increase the value for your shareholders and provide money to invest for growth’
(Turner and Kalman 2014)
Agenda for the Day
10.00-10.15 Introduction and objectives for the day
10.15- 11.15 Defining talent in the NHS
11.15- 12.00 Identifying goals and objectives for talent management
12.00-13.00 Talent metrics currently in place
13.00-14.00 Lunch
14.00-14.30 Evidence of ROIT from external sources
1430-15.30 Developing a process for measuring talent management initiatives
15.30-16.00 Review and conclusion
What do ‘talent’ and ‘talent management’ mean in
the NHS?
The context for talent management
Talent Management in the 21st Century is different
to talent management in the 20th Century
4-5 generations in the workforce
Across multiple geographies
Connected in an unprecedented
wayHighly mobile
Not defined by the
organisation
Talent Management in the 21st Century is different to talent management
in the 20th Century
Talent 1.0- succession planning
Talent 2.0- attraction of star CEO’s and Executives
Talent 3.0- attraction of high potentials and specialistsTalent as audience
Talent as communityTalent 4.0- talent management in a multi -generational, multi- cultural, mobile, high expectation, networked, information transparent, global environment
Talent Management in the 21st Century is different to Talent Management
in the 20th Century
The internal context- People are not capital, assets or resources; they are people. People design, make and deliver;
they develop IP and create wealth
If you give your people the chance to perform at their best; if they are engaged in what you’re trying to achieve and if you have a workplace in which they can develop and shine; then you will have a powerful edge that no other organisation can
copy.
How are we doing?
The internal reality- managing people is more complicated than rocket science because people are more complicated than
rockets.
Today we manage talent in a flexible or non- hierarchical workforce structure
We manage talent in a diverse workforce
We have to deal with generational differences and the attitudes to employment and career management
We face a three fold challenge
Attracting talent when there are talent shortages
Retaining talent in an era of organisational uncertainty and unpredictability
Managing and engaging talent through conveying meaning and contribution at work
What do ‘talent’ and ‘talent management’ mean in
the NHS?
13
Talent Factory
Maximum Talent EngagementTalent management embedded in management systemsCEO as CTOMeasurement of ROIT
Talent Desert
Minimum discussionMinimum engagementMinimum action
The NHS Talent Evolution Grid
Practical Implementation
Conc
eptu
al A
ccep
tanc
e
LowHighLow
High
14
A Talent Factory
Maximum Talent Engagement; Talent management embedded in systems; CEO as CTO; measurement of ROIT
Talent Desert
Minimum discussionMinimum engagementMinimum action
The NHS Talent Evolution Grid- team to identify how to move between boxes
Practical Implementation
Conc
eptu
al A
ccep
tanc
e
LowHighLow
High
Tale
nt e
ngag
emen
t pla
n A
Talent engagement plan D
Talent engagement p
lan C
Talent engagement p
lan B
In your organisations, what are the goals and
objectives for talent management; why do it in the
first place?
Objectives of Talent Management
How objectives are achieved through talent management
Measures of effectiveness of talent management
Objectives of Talent Management
How objectives are achieved through talent management
Measures of effectiveness of talent management
How HR analytics evolve
18
Level 1-producing ad hoc metrics and reports that tell “what happened.”
Level 2-Descriptive benchmarking and dashboards, which get at “what happened, and how do we compare with others on a defined set of metrics?”
Level 3-Advanced survey analytics, which is about “why did it happen, and how/where can we improve?”
Level 4-is creating predictive solutions, or “what is likely to happen, and how can we be better prepared?”
Talent Metrics Measure
Return on Investment Return on Human Capital
ROIT (Return on investment in Talent) = total benefit of investment in talent – total costs of delivering talent programmes or initiatives x 100
Lower turnover and greater retention of skills
Workforce turnover rate as a percentage
Productivity increases
Throughput of the unit per capita
Cost: income ratio as a result of talent initiatives
CI ratio- Operating costs (administrative and fixed costs, such as salaries and property expenses) divided by operating income
Employee retention
Retention metrics
Employee Engagement
Employee attitude surveysEmployee engagement index
Internal promotions versus external recruitmentAvailability of people to manage strategic projects
Workforce management data
The Rise of Big Data- what is it?
20
The Rise of Big Data- why is it ‘big?’
21
There are five broad ways in which using big data can create value:
• big data can unlock significant value by making information transparent and usable • as organizations create and store more transactional data in digital form, they can collect
more accurate and detailed performance information
• big data allows ever-narrower segmentation of customers and therefore much more precisely tailored products or services
• sophisticated analytics can substantially improve decision-making
• Big data can be used to improve the development of the next generation of products and services.
Big data spans four dimensions: Volume, Velocity, Variety, and Veracity.
Using HR analytics in talent management
22
• The application of data mining and business analytics techniques to people data.
• Correlates business and people data to establish connections between the two and then creates strategies based on that information
• To show the impact that people management has on the performance of the organisation as a whole.
• To provide intelligence and insight to people information that can help an organisation achieve its business goals
The challenge for HR is to decide what data should be captured and ‘how to use the data to model and predict capabilities so the organization improves performance and gets an optimal return on investment’ in people.
IBM’s vision for Workforce Analytics
• Smarter workforce• Talent acquisition• Performance• Learning and development• Succession management• Workforce planning
Strategic
• Smarter operations• Benefits• Payroll• Absence managementOperational
Workforce planning- plan to increase
revenue based on combinations of
talent-inform organisation design to fit market
Recruitment analytics-probable success within job
families-analysis of social
media to attract best candidates
Leadership development-
identifying emerging leaders based on data
analysis-learning and
development through information sharing
Examples of HR analytics
Implementing HR Analytics? CIPD 2013
Talent analytics has three key dimensions:
Technology
• What systems, processes and infrastructure drive data and talent analytics? What platforms are being used and how can we use systems such as Oracle, Hadoop and the like to develop a coherent data strategy?
Techniques
• How should we develop an approach to talent analytics? How should we define, store and share data? How should it be analysed? This aspect covers everything from defining employee turnover to predicting patterns of employee behaviour.
Talent
• Who should deliver our analytics capability? Should we develop new talent pools and, if so, what types? How do we recruit the scarce talent to resource this growing capability need?
Objectives of Talent Management
How objectives are achieved through talent management
Measures of effectiveness of talent management
Process for data collection and dissemination