the top 15 strategic things that talent management should be doing

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THE TOP 15 STRATEGIC THINGS THAT TALENT MANAGEMENT SHOULD BE DOING © Dr John Sullivan [email protected] www.drjohnsullivan.com 1

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Outlining the most important strategic things that Talent managers should be doing to increase their strategic impact and credibility

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Page 1: The top 15 strategic things that Talent Management should be doing

THE TOP 15 STRATEGIC THINGS

THAT TALENT MANAGEMENT

SHOULD BE DOING© Dr John Sullivan

[email protected]

www.drjohnsullivan.com 1

Page 2: The top 15 strategic things that Talent Management should be doing

Introduction

Many talent management leaders are risk adverse and although they talk about the need to "be more strategic" they all too frequently find excuses that indefinitely postpone those strategic actions

I suggest that the leadership set aside at least half a day for the team to identify upcoming problems and opportunities and the resulting strategic moves that need to be made

This is a checklist of the strategic talent management actions that I’ve found that the very best corporations should have on their "to do list"

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Page 3: The top 15 strategic things that Talent Management should be doing

What keeps CEO’s up at night?

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Let’s start with a question

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What are the business areas where CEO’s expect the most change?

1. Engagement with the Board of Directors

2. Capital structure

3. Focus on corporate reputation & rebuilding trust

4. Organizational structure (including M&A)

5. Investment decisions

6. Approaches to managing risk

7. Strategies for managing talent

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What is the #1 business issue for CEO’s?

PwC 14th annual global CEO survey 2011

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Conclusion - Because CEO’s now know our importance

If you are not currently getting a boatload of money

from your executives… something is wrong!

And realize that… our area is where CEO’s expect the most change

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If you need dramatic change

What are the top 15 strategic

things that Talent Management

can do to dramatically change

their results?

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The top 15 strategic actions in Talent Management

1) Increase the productivity of your workforce Workforce productivity is merely comparing the

output of your entire workforce (the total value of the products and services they produce) with the cost of your workforce (total labor and HR costs)

Many Talent Management departments measure engagement (a precursor to productivity) but they don't measure workforce productivity and even fewer take proactive actions to directly increase it

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The top 15 strategic actions in Talent Management

1) Increase the productivity (Continued) Increasing productivity requires Talent

Management to identify the barriers that restrict productivity

And then to proactively provide the consulting advice, best practices and tools that have been proven to increase a team's productivity

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Productivity comes from these 20 key factors that managers can change

1. A great manager 2. Effective plans & strategies3. Clear and prioritized

goals /activities to focus the work

4. Rapid learning / sharing5. Right motivators / rewards 6. The right employee skills 7. 2 way communications8. Performance metrics9. Quality team members

from great hiring & retention10.Collaboration for innovation

11.“Right job” placement12.Processes are integrated13.Information for decisions14.The right tools/technology15.Quality inputs/materials16.Enough budget/ resources17.The work environment is

designed for productivity18.Time devoted to the task19.Outside of work factors 20.ID & removing barriers to

productivity/innovation

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More productiveMake internal talent more productive

RetainRetain key internal talent

MoveRedeploy internal talent

BorrowBorrow contingent labor

HR has only 8 options for increasing productivity

Release Weak & excess labor

Use substitutes (Tech, contingent, outsource, cust.)

Buy Recruit regular employees

BuildDevelop internal talent

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The top 15 strategic actions in Talent Management

2) Increase employee innovation Fierce marketplace competition requires firms to

accelerate innovation in product and service areas despite having fewer resources

Rather than targeting a few departments, HR must increase innovation in all areas of the business

Innovation may be becoming more impactful that workforce efficiency

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The top 15 strategic actions in Talent Management

Increase employee innovation by: The targeted hiring of innovators

Retaining innovators

Identifying and minimizing the barriers that innovators face within the Corporation

HR must help shape the culture so that the expectation of continuous innovation permeates every business area and function

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The top 15 strategic actions in Talent Management

3) Reward great people management Most managers simply don't spend enough time on

talent management activities

Managers are not directly measured or rewarded based on how well they manage their talent. This is true even though HR “owns” all of the key components related to measuring and rewarding (performance management, performance appraisal, competencies and reward systems)

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The top 15 strategic actions in Talent Management

3) Reward great people management (Continued) The key action step is to develop a "people

management scorecard" for each individual manager and reward them based on their performance against those standards

Next: An example of a manager scorecard >

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Quarterly people management scorecard

1.Team productivity & quality2.Employee innovation impacts3.Quality of hires4.Retention of key employees5.Development of leaders6.Internal release of developed leaders7.Employee satisfaction with feedback8.Best practice sharingAverage combined rating on the 8 factors ______

Bot

. 10%

Bel

ow a

ver.

Ave

rage

Top

25%

Top

5%

Name _________________ Dept._________Quarter # ______

Key people mgmt performance factors

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The top 15 strategic actions in Talent Management

4) Identify and fix bad managers Research by Google has shown that in most cases,

an employee’s manager is the single highest impact factor on the hiring, retention, innovation, productivity and the development of employees

Yet most organizations have no formal program for identifying weak managers

Strategic actions would include implementing surveys and metrics to identify with managers and to provide general list with proven tools and approaches to improve a manager’s people management performance

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5) Convert Talent Management metrics into their dollar impact

Unfortunately, most traditional talent management metrics fail to impress executives because they are not expressed in "the language of business", which is dollars

Senior managers care most about increasing revenue, not Over Head functions

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How to convert (Continued) Saying we have a 12% turnover rate, a 54%

engagement rate or an 87 day time to fill generally won't impress senior managers because the metrics are not expressed in their dollar impact on corporate revenue

In contrast, stating that every percentage point increase in regrettable employee turnover costs us $7.2 million get an immediate reaction. Work with the CFO's office to credibly calculate the impacts

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6) Calculate the risks of weak Talent Management Risk management is an increasingly important

function throughout the business, but unfortunately, few talent management functions have put anyone charge of risk management

Risk managers identify and quantify the risks associated with potential talent problems (its probability and likely costs)

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6) Calculate the risks (Continued) Risk managers can show how underfunding

important talent programs can create tremendous economic risks such as losing key innovators to competitors, failing to have enough developed leaders and a weak employer brand that drives top candidates away

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7) You need to prepare for a leadership gap A combination of increased growth and higher

turnover rates will mean that most corporations will begin to suffer because of a lack of leadership benchstrength

In addition, because the type of leaders that will be needed will also change, the entire leadership and succession program will have to be re-examined and new social media and project rotation tools will need to be developed and implemented

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8) Speed up internal movement through proactive internal placement

Few things increase productivity, retention and development faster than faster internal movement

Unfortunately, most corporate programs require the employee to initiate the movement and to find the "correct" placement area

A more strategic approach is a proactive one where recruiters periodically identify and then help to correctly place employees that should be moved both for their own and for the corporate good

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9) Improve internal best practice sharing Talent management leaders spend most of their

time and resources on developing new programs and approaches

Surprisingly, you can have a higher impact faster and at lower cost by simply identifying and sharing "hidden" existing best practices

A superior approach is a proactive one that seeks out these affected practices wherever they might be in the organization. And once identified, they are shared in such a manner that managers easily understand their value and implement them

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10) Update your retention program Retention programs have been allowed to atrophy

because the economy has reduced most employee turnover to a trickle

Unfortunately, turnover is about to dramatically increase, so processes to prioritize key individuals, processes for identifying who is at risk and retention toolkits need to be reinvigorated before it is too late

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11) Employee referral programs need to be reinvigorated As the rate of hiring and competition for talent

increase, stagnant employee referral programs need to be re-examined

Because they produce the highest quality and volume of hires, referrals as the percentage of all hires should begin to reach over 40%

Employee referral programs must be closely integrated with the developing social media approaches

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12) Assess your external employer brand During the economic downturn, the area of

employer branding has been frequently ignored because very little hiring was going on

Unfortunately during the same time the reputation of many corporations has been tarnished as a result of layoffs, salary/promotion freezes and a reduction and development resources

Corporate images in general and in some specific industries like banking, oil etc. have been damaged by recent events and “occupy” type movements

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12) Your external employer brand (Continued) The growth of glassdoor.com, blogs, Twitter and

Facebook now make it much easier for negative messages to be spread

At the very least, the positive/negative aspects of your employer brand should be measured and monitored before an upturn in hiring begins

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13) Re-examine your social media approach Although many talent managers have "done

something" in the area of social media recruiting, it's important to now realize that the potential for social media in talent management is much greater than almost everyone anticipated

Plans should be developed to determine how social media can positively impact training, employee development, learning, retention, collaboration, problem identification, crowdsourcing of answers and best practice sharing

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13) Re-examine social media (Continued) The mobile platform should be examined in a

similar manner because it is rapidly becoming "the dominant communications platform" for employees

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14) College recruiting needs to be reengineered Communications and job seeking approaches have

changed dramatically on college campuses but college recruiting programs have unfortunately been stagnant for years

Program features that need to be examined include remote college recruiting, social media approaches aimed at college students, mobile platform approaches and marketing research to better understand the needs and the actions of top grads

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15) Improve non-monetary motivation When compensation and cash rewards are limited,

nonmonetary motivators need to be emphasized

Unfortunately, the compensation function focuses almost exclusively on “expensive" salary, benefits and bonuses… even though a significant percentage of employee motivation comes from… recognition, praise and feedback

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15) Improve non-monetary motivation (Continued) Talent management should develop non-monetary

motivation tools for managers that are easy to use and that produce measurable results

They should also target key employees and server them in order to identify “how to best manage and motivate me” plans

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Benchmark firms

Benchmark firms to learn from Many are from the Silicon Valley, which has

already returned to a "war for talent" (Google, Facebook, Zynga all approach talent management using a more scientific approach)

Firms outside of technology have also taken some amazing steps so they should not be ignored (Zappos, Sodexho, CACI, DaVita, Deloitte, KPMG, Pepsi and the U.S. Army have all taken bold steps)

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Other strategic actions in Talent Management

Additional strategic talent actions to consider On top of the 15 major actions, some other strategic actions to that you should consider include: Prepare for VUCA, the new normal - HR plans,

approaches and processes need to be improved so that they can handle the new business environment that we face (VUCA = Volatility, Uncertainty, Complexity, Ambiguity)

Increasing revenues – examining how talent management actions can directly increase individual employee revenue generation

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Other strategic actions in Talent Management

Additional strategic talent actions to consider Integration of HR functions – an almost universal

weakness is a lack of integration. Talent management functions must more closely cooperate, coordinate and integrate so that they work seamlessly

Hire right before they do – if your firm doesn't have the strongest employer brand, location or glamorous product, you must develop a plan to quickly initiate hiring immediately before your talent competitors. A rapid "explode out-of-the-blocks" plan is also required

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Other strategic actions in Talent Management

Additional strategic talent actions to consider Avoid Corporate Headcount “Fat” - setting up a

process that ensures that the return to hiring doesn't result in a surplus of employees (i.e. headcount fat)

Competitive analysis - identifying the competitive advantage that your talent management practices provide compared to your talent competitors

Prioritizing – prioritizing jobs, managers and talent management programs so that your limited resources provide the highest possible impact

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Other strategic actions in Talent Management

Additional strategic talent actions to consider SWAT team – creating a rapid response team that

can respond to sudden talent management opportunities and problems

Alerts - providing a process that alerts managers about upcoming problems before they get out of hand

Lean or agile Talent Management - adapting lean, CRM and agile business approaches and tools to the area of talent management

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Other strategic actions in Talent Management

Additional strategic talent actions to consider Remote work opportunities – as technology,

communications and social media tools improve, talent management must develop ways that allows top talent to work "from anywhere“

Forward-looking metrics – unfortunately, almost all current talent management and recruiting metrics are backward looking, in that they tell you what happened in the past. Instead, forward looking and predictive metrics that allow for improved decision-making need to replace them

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Other strategic actions in Talent Management

Additional strategic talent actions to consider Reengineer performance appraisals - this is an

almost universally disliked process that requires tremendous amount of time but produces no measurable results. A completely new approach is required

Transparency - throughout the business world there is an increasing emphasis on transparency and openness. The time has come for talent management leaders to reassess their entire approach to secrecy, privacy and the degree of openness with employees and applicants

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Other strategic actions in Talent Management

Additional strategic talent actions to consider Cloud Talent Management - HR and talent

management processes and technology cannot be exempt from the powerful trend to move everything to the cloud

Prepare for the skill gap – the skills required by organizations will continually to upgrade, while the available labor with those skills will continue to decline

 

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Did I make you think?

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Audience Select the #1 “dumb thing” that recruiters do

1. Using active approaches for passive candidates 2. Not identifying their job acceptance criteria3. Not prioritizing jobs 4. Not managing the candidate experience 5. Expecting dull position descriptions to sell6. Not learning the business7. Using the same rec. process for different level jobs8. Making slow hiring decisions 9. Assuming interviews are accurate 10.Not taking advantage of EE referrals