staffing topologies-staffing processes for complex organisations

Stafng Topologies: Mapping stafng processes for complex organizations

Talent Drives Performance

Stafng Topologies:

Mapping stafng processes for complex organizations


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Executive Summary

Thriving in todays fast-paced knowledge economy requires organizations to deployeffective strategies for staffing and Human Capital Management (HCM); placing theright people in the right roles at the right time is the primary differentiator of highperforming companies. The complexity of todays business environment, however,requires constant consideration of changes both internal to an organization as well asexternal, market-driven factors. Potential revenue generation requires an enterprisestaffing management solution that can adapt to cyclical business demands and be flex-ible in accommodating the corresponding ebb and flow of staffing and internal mobil-ity requirements.

Industry leading organizations have recognized the need for a staffing strategy that isenabled by technology and driven by meaningful metrics and systematic processes.These leaders are thriving on the vast Internet pool of potential candidates, but at thesame time have recognized the necessity of connectivity within their own employeepools. And, they are moving at lightning speed as they recognize that a new breed ofcandidate has emerged, one that is armed with a vast arsenal of information andchoices that make this new candidate unwilling to suffer the poor communication andlong cycle times typical of traditional staffing environments.

Understanding an organizations unique HCM requirements is simplified through useof a common vocabulary and approach to identifying the many elements and chal-lenges that define an organization's staffing landscape, the sum of which comprise itsunique Staffing Topology. This paper defines and explains how, with an understand-ing of the elements of a Staffing Topologyincluding Key Drivers, Hires Types, andStaffing Modelscommonalities emerge across the enterprise and trends are moreeasily identified. The result is that the effects of marketplace and organizationalchanges can be measured, even predicted, and linkages can be drawn that will enabletrue enterprise solutions capable of meeting the needs and goals of today's dynamicorganizations.



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Table of Contents

I. THE ELEMENTS OF A STAFFING TOPOLOGY.................................... 5

Key Drivers...............................................................................................................................6

Hire Types ................................................................................................................................6

Staffing Models.......................................................................................................................7

Staffing Alignment ...........................................................................................................7

Role Specialization ..........................................................................................................8

Level of Centralization ....................................................................................................9

Level of Service ................................................................................................................9

II. PUTTING STAFFING TOPOLOGIES TO WORK .................................11

The Role of Metrics............................................................................................................. 12

Executing a Data-Driven Strategy.................................................................................... 13

Common Pitfalls................................................................................................................... 13

III. STAFFING TOPOLOGIES APPLIED: THE UNITEDHEALTH GROUP STORY..........................................................................................................16

The Staffing Topology ........................................................................................................ 16

The Challenges .................................................................................................................... 17

The Solution.......................................................................................................................... 18

The Results ........................................................................................................................... 18

IV. STAFFING TOPOLOGIES APPLIED: TOOLS AND BEST PRACTICES.................................................................................................20

Mapping Hire Types............................................................................................................ 20

Full-Service .................................................................................................................... 21

Self-Service .................................................................................................................... 21

Centralized ..................................................................................................................... 22

Decentralized ................................................................................................................. 22

Process Mapping ................................................................................................................ 23

Configurable Workflows.................................................................................................... 23

Skills Database .................................................................................................................... 23

Staffing Topologies Knowledge Base ............................................................................ 23

V. CONCLUSION.............................................................................................25

Stafng Topologies:


I. THE ELEMENTS OF A STAFFING TOPOLOGY

Beginning with the host of internal and external factors (Key Drivers) that shape aCorporate Strategy, staffing success requires determining the types of positions tobe filled (Hire Types), how to best structure staffing organizations (StaffingModel), and how to align day-to-day staffing functions (Staffing Processes) tomaximize the corporate value contribution of the overall staffing strategy. Thesum of these factors is a Staffing Topology -- a map defining the complex inter-play of factors that must be successfully negotiated on the journey to effective and

efficient staffing management.

The exciting promise of defining an organizations Staffing Topology is theopportunity to maximize the value that staffing drives within organizations byproviding a comprehensive roadmap for the implementation and effective use ofnew processes, tools, and technologies to best address the needs of the entireenterprise. The resulting economies of scale and standardized processes will enablemeasurability and predictability while allowing more accurate justification ofstaffing expenditures, identification of inefficiencies, and increases in productiv-ity. This is a critical step for todays HR function in its evolving role as a strategicbusiness partner capable of executing on a comprehensive HCM strategy.

The value of understanding the elements of a Staffing Topology can be illustratedby considering, as an example, the challenge of doubling the size of an IT organi-zation in a geographically isolated location to support the anticipated needs of amerger--a merger that will simultaneously trigger a layoff of similar IT profession-als in another city. The task of effectively redeploying this talent internally is com-plicated by the need to meet aggressive hire targets, and a mandate to increase theoverall quality of hire while staying within strict cost-per-hire guidelines despite atalent shortage.

Challenges such as these are common in today's dynamic business environment.The rapid pace of change in todays economy (for example, shorter product lifecycles require a faster time to market for new products) demands a thorough

STAFFINGPROCESSES

STAFFINGMODELS

HIRETYPES

CORPORATESTRATEGY

KEY DRIVERS

STAFFING TOPOLOGYThe sum of the elements that define an organization's staffing landscape

S T A F F I N G S T R AT E G YTalent Drives Performance 5

understanding of talent attraction and management strategies for effective HCM.Placing the right people in the right roles at the right time, consistently, hasbecome increasingly important as organizations recognize the significant potential

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inherent in effective HCM. Realizing that potential means tackling a myriad ofchallenges, whether to increase quality or cut costs, reduce turnover, improveinternal mobility, or even reduce employee theft (otherwise known as "shrink-age") on the part of retail operations. Success requires a firm understanding of allthe underlying factors to be negotiated, the challenges they represent and, impor-tantly, it requires having the tools and expertise in place to meet those needs.

There are three main categories of elements within an organization's StaffingTopology, the presence and nature of which will determine how to best crafteffective staffing processes that will drive enterprise-wide efficiencies, productivityenhancements, and overall increases in shareholder value.

Key DriversInternal and external factors that must be considered to maximize staffing effectiveness

Understanding an organizations Staffing Topology begins with an examination of thefactors, or Key Drivers, both Internal and External, that shape the organization. Theseinclude everything from how the organization is structured to location, marketplaceconditions, cultural influences, and the effectiveness of the corporate brand. Theyinclude management goals, mandates for cost and quality improvements, objectivesfor increased workforce mobility, the effects of a merger or acquisition, and projectionsof significant growth. A union environment, maintaining compliance with govern-ment regulations, corporate downsizing, or the need to improve employee retentionare all significant factors that must be understood. These elements represent the cycli-cal business demands of the organization and comprise its dynamic Corporate Strat-egy. To be successful, a Staffing Strategy and technology implementation mustaccurately reflect, and account for, these Key Drivers. It is well known that such driv-ers and corporate strategies are subject to constant change and adjustment. Under-standing how they may change, depending on certain factors, and how to makecorresponding real time changes to a staffing solution will prepare the organization tomeet its staffing needs regardless of economic conditions.

Hire TypesThe category of individuals the organization seeks to hire

Corporate Strategy, as shaped by the dynamic forces of Key Drivers, dictates theHire Types required to staff the organization, which, in a single enterprise, willtypically include a combination of professional, campus, hourly, and contingentworkers. Each of these Hire Types includes many subgroups, each presents uniquechallenges, and each requires different attraction, capture, assessment, and candi-date processing strategies. As an example, for the hourly Hire Type, a single orga-Talent Drives Performance

nization may employ retail, call center, distribution, and manufacturing hourlyworkers, with each subcategory possessing its own unique characteristics. By

Stafng Topologies:


understanding how these different Hire Types compare and contrast, commonali-ties can be discovered and solutions that address the needs of the entire enterprisecan be identified and implemented.

Staffing ModelsHow staffing organizations are structured

An organization may have multiple Staffing Models (including one for each HireType, business unit, and/or location), or a single Staffing Model that varies to accountfor dissimilar elements. Elements of a staffing model include the degree to which astaffing organization is centralized, the level of HR involvement, the amount of rolespecialization within the staffing team, and whether staffing is aligned by job, location,or business unit. These elements are woven together in a complex topology, where achange in a single element can produce a profound impact on the whole.

Ideally the products of a comprehensive Staffing Strategy, Staffing Models are in manycases dictated by cultural influences and resource allocationsthe understanding ofwhich is critical for a successful strategy. Each of the four main elements of a StaffingModel is described below.

Stafng AlignmentThe complexity of staffing organization alignment has grown with todays increasedemphasis on workforce mobility. This is dictated by both economic cycles and thegrowing shortage of knowledge workers in particular, as well as through business pro-cess outsourcing. As a result, it is not uncommon to see internal transfers and promo-tions handled by HR Generalists while Staffing Specialists utilize an entirely separateprocess to bring external talent into the organization. What is of primary importance inthis case is to ensure that the roles are aligned, and that processes and technology areimplemented to ensure that each group gains access to both the talent that alreadyresides within the organization and that which is external but attracted to the corporateemployment brand. Three primary models form the basis for any number of variations:

Job function: Staffing Specialists aligned by job function are specialists at staffing for a specific discipline or job family, regardless of geography. This narrow focus typically provides an increased understanding of the technical requirements of open positions, as well as expertise with the unique sourcing challenges particular to a given market segment.

Geography: Staffing Specialists aligned by location manage all of the requirements for a given location and typically have a deeper understanding of the local market. Due to their close proximity to Hiring Managers, they often benefit from stronger relationships, as well as an increased familiarity Talent Drives Performance 7

with the intangibles of open positions. Because they manage a more diverse portfolio of job requisitions, these Staffing Specialists generally possess a broader understanding of the organization.

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Business unit: Staffing Specialists aligned by business unit are assigned to manage the requirements for all roles within that specific unit, usually across multiple locations. These Staffing Specialists are true generalists who typi-cally provide a good balance between organizational effectiveness and opera-tional efficiencybut sometimes at the cost of benefits provided by other models.

Role SpecializationThe process of staffing within some organizations is evolving toward a specializedfunction due to a number of factors including, importantly, the advent of the Internet.However, role specialization may not be appropriate for every circumstance or everyorganization. Regardless, the degree of specialization within a staffing function is acritical consideration in the creation of an effective strategy. This consideration is wellillustrated by a comparison of the responsibilities of an HR Generalist with those of aStaffing Specialist.

A day-in-the-life of an HR Generalist might include administering a benefits or com-pensation program, employee relations, union grievances, terminations, and/or issuesof legal compliance--in addition to staffing. Effectively multitasking across these func-tions requires an emphasis on consistency of process, ensuring that each task is accom-plished in a professional, careful, consistent manner--skills for which HR Generalistshave long been valued and rewarded.

By contrast, the Staffing Specialist has grown significantly in importance to effectivestaffing, thanks to increased competition for top-notch talent as job boards, onlineresume databases, and streamlined communications have facilitated talent movement.In this new paradigm, skills previously relegated to third-party search firms andemployment agencies are cultivated in-house, with staffing increasingly focused onsales, marketing, and public relations (employment branding) activities. These special-ized professionals bring with them a new sense of urgency and risk-taking.

To further complicate matters, organizations are increasingly realizing that they needsourcing specialists who possess skills required for locating talent, rather than forattracting and hiring potential candidates. In many organizations, the task of staffingis divided between these roles. As a result, candidates may be handed-off fromsourcing to staffing to HR as they move from sourcing to screening and selection tooffer and hire.

As the staffing function continues to evolve, HR generalists, staffing specialists, andsourcing specialists are learning to work effectively together to assimilate their differentroles. However, because each approaches the task of staffing from a decidedly differentperspective, a successful strategy must account for and capitalize on such differences.Talent Drives Performance

Stafng Topologies:


Level of CentralizationThe level of centralization in a staffing model is defined as the degree to which man-agement seeks direct control over the staffing function. This involvement might beexercised in the organization's entire staffing strategy, or it may vary across the ele-ments of resources, budget, process, and metrics.

The more narrow definition of centralization, wherein resources are physically central-ized in a single location, has become less relevant as technology closes distances thatformerly created significant barriers to communication. However, physical proximityfacilitates face-to-face communication, which is a key component to building strongrelationships, one of the most important contributions to staffing effectiveness, andnot a factor typically inherent in highly centralized staffing models.

It is also important to consider the impact of technology on both centralization anddecentralization. An enterprise staffing management solution offers, for the first time,an effective means by which to track compliance to process, the efficiencies of a sharedcandidate database, and the capability to capture and report enterprise-wide metrics,providing the necessary tools to make a compelling case for centralization. However,the same technology also enables more effective decentralization as it provides visibil-ity across an enterprise into the demand for and supply of candidates, as well as real-time collaboration among Staffing Specialists, HR generalists, sourcing specialists, andhiring managers.

Typically, staffing models particularly for large, complex organizations -- are ahybrid of centralization and decentralization, often varying significantly within asingle process or Hire Type, and the potential benefits of either must be balancedagainst the risk of the corresponding challenges they present. For instance, anorganization with a highly centralized sourcing function will typically enjoy sig-nificant economies of scale. At the same time, it may not realize the potential ben-efits of niche job boards or other specialized, local market resources that would bemore likely utilized by a local resource in a decentralized staffing model. As notedabove, the choice of structure may also be defined by cultural legacy, geographicdiversity, or by business concerns (e.g., an organization with numerous smallretail outlets typically employs a decentralized structure, as the value of a central-ized resource to help screen or process candidates is difficult to realize in the light-ning-fast hiring process typical of such environments).

Level of ServiceLevel of Service in a Staffing Model speaks strictly to the participation of HR in thecompletion of tasks necessary to effect a hire or internal transfer, as opposed to thelevel of centralization, in which elements such as budget, process, or metrics are con-Talent Drives Performance 9

sidered. To make this point clear, it is important to note that it is possible to have afull-service, decentralized staffing model (wherein local HR representatives bear pri-mary responsibility for staffing, yet report to the local line), just as it is possible to have

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Stafng Topologies:


a largely self-service, centralized model, (where centralization is provided by technol-ogy, budget, and/or process, but tasks remain the responsibility of local HR or the hir-ing manager).

Self-service models empower hiring managers to become more involved in the process,and technology enables this with intuitive tools. However, it may be most advanta-geous to provide hiring managers with visibility into the staffing process (throughtechnology) without full responsibility for the staffing process. Whatever the level ofservice provided by HR, this element, and combinations thereof, are of critical consid-eration when designing successful staffing processes. Talent Drives Performance

Stafng Topologies:


Study results link staffing excellence to a10.1% increase in market value (basedon an analysis of HR practices at morethan 400 publicly traded companies).

--Human Capital Index StudyWatson Wyatt WorldwideII. PUTTING STAFFING TOPOLOGIES TO WORK

Staffing Topologies represent a new approach to:

Understanding the complex issues that must be considered to maximize shareholder value generation for large organizations, and

Utilizing new processes, tools, and technologies to address the needs of vary-ing topologies and meet staffing goals.

Why Topologies MatterStudies show that organizations excelling in the staffing arena generally produce agreater return for their investors.

This premise is born out by a study comparing the stock price performance of TaleoS&P 500 customers to S&P 500 companies that dont use Taleo. Analysis shows thatTaleo customers outperformed the S&P 500 by 20 percent during the turbulent year

of 2002.1

1. Methodological remarks: The Taleo Customers Index is calculated using the same methodologythat is used to calculate the market capitalization weighted index known as the Standard & Poors500 Index. The Taleo Customers Index is calculated for all trading days in the calendar year 2002,based on the daily closing prices and the average number of common shares outstanding for thecompanies in the Index. Each of the companies in the Taleo Customers Index also belongs to the

Taleo Customers IndexA comparison of the stock market performance of Taleo customers, as compared to companies in the S&P 500 Index for 2002

D-02N-02O-02S-02A-02J-02J-02M-02A-02M-02F-02J-02

110

105

100

95

90

85

80

75

70

65

Taleo Customers

S&P 500Talent Drives Performance 11

S&P 500. Information on the basic number of shares outstanding is from the companies 10-QSEC filings. The Taleo Customers Index is rebalanced at the end of each quarter in 2002, toaccount for changes in the number of common shares outstanding. The chart above sets the valuesfor both the Taleo Customers Index and the S&P 500 at 100 on Jan. 2, 2002.

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Stafng Topologies:


The results of the stock index comparison analysis are dramatic, with strong per-formance from the Taleo group of companies. Many factors impact any individualcompanys stock valuation; yet, notably, the common factor among the high per-forming companies is that all are Taleo customers. The studys outcome is note-worthy in that it presents an indication of this subset of companies strategicmindset about human capital management, which has been seen as a critical factor

in other studies.1

A Staffing Topology is the roadmap on which an organization plots its path tostaffing excellence that can influence a companys stock valuation. UnderstandingStaffing Topologies is critical for today's HR function to become a strategic busi-ness partner capable of executing on a comprehensive HCM strategy and deliver-ing value to the organization. Flawless execution begins with careful planning,which is only possible as the result of an in-depth analysis of the underlying fac-tors behind the challenges at hand. Once those factors and challenges are clearlyunderstood, a strategy can be developed through the identification of metrics,which can be used to manage performance by guiding staffing behaviors toachieve the desired outcomes.

Enabling an Enterprise SolutionAn understanding of the organizations Staffing Topology can guide selection ofenterprise staffing technology by focusing the discussion not on a feature/func-tionality comparison, but on the very real issues of aligning processes and drivingutilization. As the linkages between elements, challenges, and product functional-ity are understood, commonalities and trends emerge across organizationalboundaries. The wisdom of an enterprise solution, and the resulting benefits ofstandardization, can be more clearly articulated, building a clear case for finallyeradicating ad hoc strategies and divergent processes typical with multiple sys-tems.

The same advantage extends to the technology implementation process, whereknowledge of a Staffing Topology enables the development of intuitive work-flows, meaningful metrics, and systematic processes that empower the entire orga-nization. The result is an implementation that features early and broad end-useradoption leading, in turn, to deep system utilization, better alignment with all keystakeholders, and the promise of superior, measurable return on staffing invest-ment.

The Role of MetricsUnderstanding a Staffing Topology enables the implementation of a fully configurable,flexible technology solution that will serve as the bedrock for driving ROI. It is alsoTalent Drives Performance

vitally important to the next step to effective staffingestablishing meaningful perfor-

1. A more effective talent management is not only about better HR processes, its about a differentmindset. War for Talent, 2001, McKinsey & Company

Stafng Topologies:


mance metrics. Although the use of metrics to achieve operational effectiveness is notnew, its application to strategic performance management in staffing continues tomeet with varying degrees of success. Why? At the heart of the matter is a lack ofunderstanding of the elements that define the staffing landscape. The evolution ofstaffing has meant a change in roles, beliefs, and behaviors, complicating the very defi-nition of what constitutes a best practice and, consequently, what needs to be mea-sured. Also, until very recently, technology that allows real-time recording andreporting of metrics simply did not exist. Reporting was a burdensome, adjunct task,plagued by manual systems and issues of data integrity. Without the benefit of under-standing and tools, a staffing function cannot be expected to perform effectively.

The process of implementing a metrics-driven staffing strategy requires the develop-ment of staffing processes that resonate with an entire organization across multipleHire Types, whether that means Ph.D. candidates from MIT, store clerks in Boise, or ahospital administrator in Brussels. It requires accounting for factors that might includetalent shortages or surpluses, union rules, cultural influences, and a full range of man-agement mandates to improve anything from the quality of hire to EEO complianceto more effective succession planning. All of these elements, whether managed strate-gically or merely dealt with tactically, impact organizational staffing effectiveness andefficiency, and hence overall organizational performance.

Executing a Data-Driven StrategyAs mentioned above, flawless execution of an HCM strategy begins with an in-depthanalysis of the underlying factors behind the challenges at hand. Once those factorsand challenges are clearly understood, a strategy can be developed and executedthrough the identification and consistent application of meaningful metrics.

It cannot be overstated that execution is the indispensable key to obtaining superiorvalue creation; strategy without implementation, technology without adoption, ormetrics without accountability will not produce desired results. Superior value cre-ation is only possible with the design and implementation of a complete enterprisesolution. This means a fully configurable technology solution that resonates across theentire organization, achieved through effective process analysis and change leadership,featuring engagement and accountability at levels of the organization from executivesto Staffing Specialists to hiring managers, and driven by meaningful performancemanagement metrics.

Common PitfallsJust as a flexible, properly configured, and well-utilized technology, built on a strongunderstanding of an organization's Staffing Topology, provides an excellent founda-tion upon which to standardize processes, profile and share candidates, when technol-Talent Drives Performance 13

ogy is poorly designed, implemented or utilized, these benefits quickly turn intowasted corporate resources. Potential pitfalls include:

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Stafng Topologies:


Selecting the wrong solution: 100+ vendors comprise the hiring manage-ment solutions arena, creating a maze of confusion that requires diligence to sort through. Such diligence must include a thorough review of the soft-ware, services, security, service-level agreements, vendor financial perfor-mance, and vendor references given by similarly sized customers. Beware of one-size-fits-all platforms; the fallacy of the belief that a complex organiza-tion will benefit from such simplicity will continue to become apparent as the Internet and the technological solutions it has spawned continue to mature.

The right solution has the ability to make complex processes appear simple by resonating with the user experience to the point where using it becomes second nature, much like driving a car. However, just because a car might be easy to drive doesn't mean it is a simplistic tool. The solution must be capa-ble not only of initial configuration, during implementation, but also con-figuration whenever the organization needs to change business processes. Optimally, such configuration will be done in real time and without vendor intervention.

Poor configuration, incomplete training: No matter how intuitive today's tools might be, if they are improperly configured, utilization will suffer. As circumstances and challenges evolve, technology must evolve. A highly con-figurable platform is a crucial component to enabling a complex Staffing Topology. Additionally, as new Staffing Specialists come into the organiza-tion, training must be renewed.

Emphasizing the wrong metrics: Today's technology provides exposure to a wealth of available measurements, as virtually every activity within the staff-ing function is tracked. It is critical to make a distinction between what is tracked, what is reported, and what is emphasized in performance measure-ment. As one familiar adage suggests, What gets measured gets done. Pub-lishing or pushing the wrong metrics will guide Staffing Specialists to execute the wrong activities, producing a negative impact on staffing effec-tiveness. Similarly, too many metrics can paralyze organizational effective-ness. Consider many organizations favorite metric, cost-per-hire. Overemphasizing this metric can negatively impact quality of hire, thus affecting enterprise performance and ultimately driving costs higher.

Lack of understanding the importance of relationships: The importance of staffing metrics is clear, but the real value of metrics is in their ability to guide productive relationships between Staffing Specialists, hiring managers, and candidates. The level of staffing effectiveness can be gauged in direct proportion to the level of understanding and communication shared between these individuals. The lack of effective, widespread use of metrics in staffing can be traced to the difficulty in managing a function that is so dependent on the quality of relationships between individuals responsible Talent Drives Performance

for, and participating in, the process.


The relationship between hiring managers and staffing professionals rests on a full and shared understanding of the requirements and intangibles of the positions they are attempting to fill. The degree to which the new employee qualifications deviate from pre-staffing requirements can be a highly effec-tive measure of the quality of this relationship, once allowance is made for market decisions (i.e., the hiring manager makes a conscious decision to hire a less-than-ideal candidate due to market considerations).

Online prescreening questions regarding a candidate's skills can provide quantifiable evidence of how accurately pre-staffing requirements are aligned with job function needs. Scorable questions profiling a candidate's skills, abilities, and experiences allow a staffing organization to conduct a point-of-hire analysis of the deviation between skills that were originally required with the actual background of the hired candidate. Because close alignment can only be achieved through an ongoing process of communica-tion and feedback between hiring managers and Staffing Specialists, the degree of deviation is an accurate measure of the effectiveness of this impor-tant partnership.

Poor communication of goals: The purpose of metrics is to motivate behaviors that will produce desirable results. Developing effective metrics requires not only an understanding of an organization's Staffing Topology, it requires communicating this information to those responsible for staffing, along with the goals the staffing organization is striving to reach.

Lack of management follow-through: Execution is the key to any success-ful strategy. While great strides have been made and pockets of excellence can be easily identified, the legacy of the tactical mindset of the HR func-tion remains evident in many staffing practices today. Tremendous value can yet be achieved by encouraging these able professionals to execute a business strategy, manage performance through the use of metrics, and lead and manage change. Talent Drives Performance 15

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Stafng Topologies:


III. STAFFING TOPOLOGIES APPLIED: THE UNITEDHEALTH GROUP STORY

The importance of understanding a Staffing Topology is well illustrated by thecase of UnitedHealth Group (UHG), one of America's most-respected healthcarecompanies (as reported in Fortune Magazine), headquartered in Minnesota, andserving more than 38 million Americans around the world. UHG, a Fortune 100company, has more than 31,000 employees and annual revenues of $24 billion.

The Staffing TopologyUHG began implementing Taleo's staffing management solution in the fall of2001 as it tackled a major outsourcing and automation initiative that completelyreinvented the HR function. This initiative, called HR Direct, included the cre-ation of a centralized Staffing Services group of over 60 specialists aligned alongorganizational boundaries. This new group was chartered to service over 5,500hiring managers in accomplishing 10,000 annual hires primarily in the technical,professional, campus, and executive ranks. External drivers to be consideredincluded a critical market shortage of healthcare professionals, a shrinking econ-omy, and wide geographic dispersal of six separate business segments, each withits own existing staffing process. Management mandates, in addition to com-pletely reengineering HR, included reductions in time-to-fill and cost-per-hireand the desire for a self-service, streamlined process that would all but eliminatepaper. Consider the following Topology elements:

Key Drivers:

Align with HR Directmove to self-service HR model

Critical market shortage of healthcare professionals

Wide geographic dispersal of locations

Management mandates to reduce costs and time-to-fill, streamline processes and increase operational efficiencies through automation and role specializa-tion

Hire Types:

Professional

TechnicalTalent Drives Performance

Campus

Executive


Staffing Model:

Six separate business segments with separate staffing processes

Hybrid with many centralized elements

Some elements outsourced, including high-volume call center hiring

Many elements of full-service in sourcing and screening steps

Primarily self-service in selection and candidate management

HR generalist involvement in separate executive processes

High level of role specialization including dedicated recruiters, some sourcing specialists, heavy administrative support

Recruiting aligned by organization

The ChallengesA detailed change analysis was conducted, priorities and goals were set, and initialefforts were targeted toward quickly forging connections between this new staffinggroup and hiring managers while avoiding any major service outages and design-ing a streamlined process that would meet the needs of all six business units. Withthis accomplished, it was believed that staffing effectiveness and efficiencyimprovements would follow, including increases in quality and contribution tothe company's bottom line. Particular attention was also paid to crafting a solu-tion that would emphasize the benefits of a shared platform to account for thechallenges presented by the diversity in roles, locations, and culture across theorganization.

Key Challenges:

Meld six separate staffing processes into a single, cohesive process

Establish a program to manage staffing by performance goals and metrics

Reduce use of agencies

Reduce time-to-fill (was 50 to 75 days)

Reduce sourcing expendituresTalent Drives Performance 17

Create a shared platform of standardized job descriptions and candidates

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Stafng Topologies: Mapping stafng processes for complex organizationsAlign positioning of rollout with philosophy and goals of HR Direct ini-tiative

The SolutionThe implementation was divided into three phases, with the entire organizationparticipating in initial focus groups and process mapping sessions to determineunique organizational requirements and facilitate the configuration of a commoncandidate selection workflow. The decision was made to realign the staffing modelalong functional lines. Service Level Agreements were set. Hiring managers wereinvited into the process via the Taleo solution to create requisitions and reviewcandidates via the web. An online employment application was developed. Perfor-mance management metrics were chosen, and a program of ongoing communica-tion, training, and performance management was launched.

Key Elements of Taleo Solution:

Three-phase rolling implementation

Design of common Candidate Selection Workflows utilized across entire organization

Heavy emphasis on change management including change analysis, focus groups, process mapping sessions, communication plan, metrics analysis, and ongoing training

Creation of standardized job templates across organization

Reorganization of staffing group along functional lines

Manager WebTop to allow direct hiring manager participation

Implementation of Taleo Agency to track and control vendor performance

Movement to full, on-line employment application to streamline process and eliminate redundancies and paper

The ResultsAs a result of intensive change management and process reengineering efforts,Staffing Services was able to quickly connect with its customers, and all projectgoals were either met or exceeded, many in dramatic fashion. The ability of theUHG project team to understand the sum of the factors that comprised UHG'sStaffing Topology was crucial to this success, and has laid a foundation for con-tinuing improvements.Talent Drives Performance

Key Success Measures:

Stafng Topologies: Mapping stafng processes for complex organizations Overall hard dollar cost savings in the first two years of implementation: $23.2 million

Reduced average time-to-fill from 50 - 75 days to 27 days

New requisition approval averaging 3 days

Reduced number of active job descriptions across organization from over 3,000 to approximately 900Talent Drives Performance 19

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Stafng Topologies: Mapping stafng processes for complex organizationsIV. STAFFING TOPOLOGIES APPLIED: TOOLS AND BEST PRACTICES

The value of understanding an organization's Staffing Topology can also be illus-trated with an examination of how this knowledge is applied through tools andbest practices during an implementation.

As demonstrated, a Staffing Topology comprises a multitude of elements in threeprimary categoriesKey Drivers, Hire Types, and Staffing Models. Each organi-zation's Staffing Topology is as different as an individual fingerprint due not onlyto the large number of separate elements, but also because each element assumes adifferent level of importance in each instance. To suggest that what is true for onehealthcare company applies to all healthcare companies would be nave, althoughthey may have many individual elements in common, such as the Key Driver of anongoing shortage of nurses in the marketplace.

Similarly, geographic isolation would be defined quite differently for an organiza-tion trying to attract automobile designers to Cincinnati, Ohio, where the isola-tion is from other automakers, than an organization attempting to hireaccountants in Nome, Alaska, where the term isolation has an entirely differentmeaning. The same is true of virtually every element of a Staffing Topology--eachis unique not only in definition, but also when considered in the context of otherelements. The same organization challenged with attracting automotive designersto Cincinnati may not experience any difficulty attracting new college graduates,due to the high quality of living afforded in the greater Cincinnati area.

Mapping Hire TypesThe sum of the elements of a Staffing Topology also presents different challengesduring different stages of the hiring process. This is especially true of StaffingModels, which often feature different levels of service and centralization acrossprocess steps. Although it is common to refer to a process as centralized or self-service, in reality, virtually all staffing processes are a hybrid of these elements.The graph on the next page illustrates the variations of these two elements that arepossible within a single staffing process.

In the organization represented below, the process starts with Position Manage-ment, which, in this example, is handled through a standardized online form andprocedure, making it highly centralized. Performed by the hiring manager, thistask is self-service, placing it in the lower right quadrant. A centralized staffinggroup then performs Sourcing and Screening, placing these activities well into theupper right quadrant. In this illustration, Selection and Candidate ManagementTalent Drives Performance

are primarily the responsibility of the Hiring Manager with assistance from local

Stafng Topologies: Mapping stafng processes for complex organizationsHR, placing them in the lower left quadrant. Finally, the Offer/Hire process ishandled by a local HR group with assistance from the hiring manager, placing thisstep in the upper left quadrant.

Mapping each of these process steps lends clarity to the roles and responsibilitiesof the hiring team and facilitates an understanding of the characteristics commonto Staffing Models featuring similar levels of centralization and service. Impor-tantly, it also provides the basis for configuring a staffing solution that will enableoptimal staffing processes. Characteristics of these Staffing Model elements aredescribed below:

Full-Service

High-touch, strategic hiring process

HR and/or Compensation own or assist in offer process

Likelihood of dedicated, full-time Staffing Specialists

Possibility of sourcing specialists

Sourcing typically more candidate-centric vs. requisition-centric

Self-Service

Hiring managers own bulk of hiring process

HR, if involved, plays extremely limited, administrative role

Offer/Hire

PositionManagement

CandidateManagement

Selection

Screening

Sourcing

DEC

ENTR

ALI

ZED CEN

TRA

LIZED

FULL-SERVICE

SELF-SERVICETalent Drives Performance 21

Sourcing typically highly tactical vs. strategic

22

Stafng Topologies: Mapping stafng processes for complex organizations Hiring process varies widely between locations

Little or no information available for reporting or performance manage-ment

Centralized

High level of control by management over recruiting strategy

Centralization can refer to budget, process, resources, and/or metrics

Standardized hiring process is likely

Often a mandated adherence to corporate metrics

Likelihood of bureaucratic checks and balances

Decentralized

Typically an ad hoc recruiting strategy

Hiring managers control sourcing budget

Loosely defined hiring guidelines or processes

Minimal use of performance metrics

Sourcing is often reactive vs. proactive

The Topology element across which it is most useful to draw comparisons is HireType, as there are typically similarities across processes designed for similar HireTypes. On a macro level, the processes utilized by two major department storechains to hire distribution center workers might appear quite similar. It is impor-tant to understand that it is the ability to distinguish the differences between sim-ilar processes that leads to true understanding of the challenges to which they willgive rise. After all, at the highest level, all staffing processes are but two steps: needidentified and candidate hired.

While taken to the extreme, this illustrates the fallacy behind the one-size-fits-all approach to implementing technology, and the reason so many implementa-tions fail to reach their stated goals. Comparison is useful, but just as the back-grounds and resumes of two candidates may appear to be very similar on thesurface, a closer examination of what lies beyond those similarities is the criticaldifference in making a quality hire. Comparison is most useful within a singleorganization with multiple Hire Types, where further reiterations of this exerciseTalent Drives Performance

illustrate the differences that may exist between them, an important step indesigning a strategy and configuring an effective enterprise solution.

Stafng Topologies: Mapping stafng processes for complex organizationsProcess MappingBeyond mapping Hire Types as discussed above, true understanding requires theconstruction of detailed process maps that examine the entire hiring process, step-by-step. Detailing the differences between internal and external staffing processes,and those that might exist across different Hire Types and/or business units, loca-tions, etc. is an essential step to understanding how technology and metrics can bemost effectively applied.

Configurable WorkflowsFrom detailed process maps, it is possible to construct technology-enabled, con-figurable workflows that will allow an organization to efficiently move candidatesthrough as many hiring processes as may exist across locations or Hire Types.Having a common platform for all Hire Types, one that satisfies the needs of adiverse, global organization, while integrating the common threads that bindthem, provides a considerable strategic advantage. Beyond the well-known bene-fits of scalability, flexibility, and reliability that are the hallmarks of a global solu-tion lies an unparalleled opportunity for shared communication and metrics,yielding yet another level of tangible and intangible benefits that are derived fromshared experiences and common practices.

For staffing technology to support and enable workflow variety within StaffingModels, it must offer complete configurability that can be easily modified in real-time as business models and needs change. Moreover, to avoid delays and highcosts, the organization must have the latitude to make these changes itself, with-out reliance on third-party vendors.

Skills DatabaseAs important to back-end candidate-processing strategies as configurable work-flows are, so is a shared skills database to the front-end work of attracting andscreening top-notch talent. Moreover, that shared skills database, when correctlyconfigured, can provide the basis for a skills gap analysis of the assembled work-force against corporate goals. Skills are the common language spoken across afamily of jobs, both for employees and candidates. The definition of a skills data-base within a shared platform is increasingly becoming a staple of an organizationthat truly understands the impact and benefits of globalization. Especially whencoupled with well-defined competency models, a skills database is an essential stepto enabling an HCM strategy with resources deployed in true supply chain fash-ion.

Staffing Topologies Knowledge BaseOne does not need to go back more than a decade to find a combination of fourTalent Drives Performance 23

dramatic changes in the staffing environment, the effects of which have combinedto change the way companies must act to attract talent. The first was, of course,the Internet. The second was the high-tech talent shortage of the mid-1990's dur-

24

Stafng Topologies: Mapping stafng processes for complex organizationsing which many organizations, for the first time in their history, had jobs thatwould go unfilled regardless of how many resources were thrown at the problem.This unprecedented challenge, more than any other factor, raised the bar on whatconstitutes a world-class staffing function. By necessity, staffing became the toppriority of many organizations, and led to a dramatic acceleration of the state-of-the-art of staffing.

It could be argued that the third factor impacting staffing today has been aroundfor much longer than 10 yearsthat it goes back decades to when PersonnelDepartments became known as Human Resources Departments (an effort thatactually began in the 1950s). However, only in the last few years have HR in gen-eral, and staffing in particular, begun to earn a seat at the table as a strategicresource. This evolution has helped to feed, in turn, the evolution of technologyto produce the tools HR requires to fulfill this mandate.

The fourth factor having a dramatic impact on HR and staffing today is globaliza-tion, the full effects of which are yet to come. As organizations seek to think glo-bally and act locally, strategic enterprise solutions that are configurable to meetdiverse global environments, from regulatory requirements to cultural differences,present an enormous opportunity.

Combined, these factors point large, complex organizations toward a course ofanalysis and knowledge sharing that will lead to a deep understanding of StaffingTopologies. The dynamic nature of staffing dictates that this path to understand-ing cannot be divined based solely on observation or intuition. It requires a com-mitment to a data-driven staffing function, along with the desire to network andpartner with others willing to share their experiences. While the linkages betweenvarious Topology elements and their associated challenges and solutions differbetween organizations, there are also significant commonalities across industryverticals, Hire Types, and users of similar technology platforms. The body ofknowledge contained within a user community is an invaluable tool to providinginsights that transcend individual organizations, leading to the discovery and defi-nition of best practices that can be readily adapted to any circumstances.

This community is the foundation for the creation of a comprehensive, searchableknowledge base that maps the relationships between Topology elements and solu-tions, and details real-world case studies demonstrating actual success. Access tothis knowledge base is an instrumental tool in providing return on staffing invest-ments. Talent Drives Performance

Stafng Topologies: Mapping stafng processes for complex organizationsV. CONCLUSION

The formula for success in staffing in the 21st Century begins with an under-standing of the elements of a Staffing Topology as the root of the challenges thatmust be addressed. With that knowledge, organizations can use technology toenable a data-driven function, in which data is used to effectively manage criticalstrategic initiatives. This requires an intimate familiarity with the factors thatmake up an organization's Staffing Topology across multiple Hire Types, in con-cert with the dynamic forces that shape an organization both from within andwithout, and as executed through the inherent strengths and limitations of variousStaffing Models. This knowledge will enable the formation and continual reassess-ment of the appropriate attraction and retention strategies, ensuring alignmentwith best practices. It will allow the organization to react quickly to make neces-sary adjustments as factors change, avoiding the lost revenue and customer dissat-isfaction that result from operational inefficiencies.

The introduction of Staffing Topologies to the HR lexicon provides an opportu-nity to clarify the rules of engagement for staffing in the 21st Century, and ameans by which the challenges facing organizations today can be successfullynegotiated. This is a critical step in the evolution toward an enterprise solutionthat is configured to meet the dynamic needs of the complete organization.Talent Drives Performance 25

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Copyright 2005 Taleo Corporation. All rights reserved. Noportion of this document may be reproduced in any form withoutthe prior written permission of Taleo Corporation.

Taleo and all Taleo product and service names mentionedherein are trademarks or registered trademarks of Taleo in theUnited States, France, The Netherlands, U.K., Canada, Austra-lia and several other countries. All other product and companynames mentioned herein may be the trademarks of theirrespective owners.

Table of ContentsI. THE ELEMENTS OF A STAFFING TOPOLOGYKey DriversHire TypesStaffing Models

II. PUTTING STAFFING TOPOLOGIES TO WORKThe Role of MetricsExecuting a Data-Driven StrategyCommon Pitfalls

III. STAFFING TOPOLOGIES APPLIED: THE UNITEDHEALTH GROUP STORYThe Staffing TopologyThe ChallengesThe SolutionThe Results

IV. STAFFING TOPOLOGIES APPLIED: TOOLS AND BEST PRACTICESMapping Hire TypesProcess MappingConfigurable WorkflowsSkills DatabaseStaffing Topologies Knowledge Base

V. CONCLUSION

staffing topologies-staffing processes for complex organisations

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