How to Protect and Grow Your Company by Managing Your Talent Footprint
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Transcript of How to Protect and Grow Your Company by Managing Your Talent Footprint
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How to Protect and Grow Your Company by Managing Your Talent
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Speaker: John Kranz Product Manager PeopleFluent
Moderator: Sarah Sipek
Associate Editor Workforce magazine
How to Protect and Grow Your Company by Managing Your
Talent Footprint
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Frequently Asked Ques6ons
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Sarah Sipek Associate Editor Workforce magazine
How to Protect and Grow Your Company by Managing Your
Talent Footprint
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John Kranz Product Manager PeopleFluent
How to Protect and Grow Your Company by Managing Your
Talent Footprint
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© PeopleFluent 2015
How to Protect and Grow Your Company by Managing Your Talent Footprint
June 10, 2015 John Kranz, Product Manager
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Agenda
• Today’s Talent Management Challenges • IdenMfying CriMcal Roles • True Cost of AOriMon • Retaining Top Talent • Succession Planning
• Visualizing Your Talent Footprint
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Poll QuesMon
• Which HCM soSware do you have deployed? 1. SAP/Success Factors 2. Oracle 3. PeopleSoS 4. NetSuite 5. Epicor 6. UlMmate SoSware 7. Infor 8. Payroll System Provider (ADP, etc.) 9. N/A; not listed above
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© 2015 PeopleFluent Managing Your Talent Footprint
IdenMfying CriMcal Roles
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What is a Cri6cal Role? Jobs that must be performed—and
performed well—for companies to succeed
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Iden6fying Cri6cal Roles
Internal • What is the level of risk to the enterprise if the posiMon is leS
vacant for an extended period? • To what extent does the posiMon:
• Drive revenue and impact boOom-‐line financial results? • Involve developing strategy, designing new products, or creaMng growth opportuniMes for the organizaMon?
• Require broad decision making authority? • Involve relaMonships with external customers and key stakeholders?
• Influence the performance of or manage other criMcal posiMons?
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Iden6fying Cri6cal Roles
External • What is the current market value of the posiMon? How has the value changed over Mme?
• How is the posiMon valued by other companies? • What is the degree of compeMMon for qualified candidates for this posiMon in the marketplace?
• To what extent does the posiMon require the use of rare/unique capabiliMes and skill sets?
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Ques6ons
• What is a criMcal role in our organizaMon? • How do we idenMfy and compare candidates for criMcal roles?
• Do we have a succession plan around our criMcal roles?
• What is our voluntary turnover rate for criMcal roles?
• Do we have Development Plans to fill CriMcal Roles from within the OrganizaMon?
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“Yes, We’ve Iden6fied Cri6cal Roles”
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“Yes, We Also Know Our Bench Strength”
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True Cost of AOriMon
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AMri6on vs. Reten6on
• AOriMon/Turnover -‐ the gradual reducMon of the size of a workforce by not replacing personnel lost through reMrement, resignaMon, sickness or death
• RetenMon -‐ an effort by a business to maintain a working environment which supports current staff in remaining with the company
Source: SHRM
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Business Impact of AMri6on • Costly ($11B Annually*)
• Effects business performance • Customer RelaMonships • Company ReputaMon • Loss of Intellectual Capital • Reduced ProducMvity
• It can be hard to manage
Source: SHRM
*Bureau of NaMonal Affairs
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Costs Associated with AMri6on
• Direct replacement costs can reach as high as 50%-‐60% of an employee’s annual salary
• Total costs associated with turnover ranges from 90% to 200% of annual salary
Source: SHRM
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Why Employees Leave • Rela6onship with Immediate Supervisor • Low Employee Engagement (Highest Cost BEFORE Leaving)
• Believe in Senior Leadership • Pride in working for the company • Employee Value ProposiMon • Lack of good working condiMons • No flexible work schedule • Very few supporMve colleagues • Work-‐life imbalance • Lack of challenges in job / goal sesng • Mismatch between job and person (80%) / onboarding • Lack of coaching and feedback (Mentorship Program?)
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Reten6on Challenges
• Talent shortages • specific skills and competencies needed
• 62% of the respondents of SHRM survey reported already having difficulty hiring workers with the skills essenMal for a 21st century workforce
• Worldwide employee turnover set to spike in 2014, reaching 23.4 per cent by 2018
• RetenMon is key concern for organizaMons and requires immediate acMon
Source: SHRM, HayGroup
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Poll QuesMon
• Do you have line of sight into ReMrement Eligible employees and Mme horizon to help forecast future aOriMon? 1. Yes 2. No
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ReMrement Tracking
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© 2015 PeopleFluent Managing Your Talent Footprint
Retaining Top Talent
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Recrui6ng Prac6ce impacts Reten6on
• 50% of companies with high retenMon don’t use job boards
• Social media is cheaper and more effecMve (7% of applicants from referrals account for 40% hires)
• Hires referred by other employees more likely to sMck around (3 yr. study: 47% referrals, 14% job boards)
• Average referral bonus for FTE’s is $1,200 (compare this outlay to cost for replacement hire!)
• Measuring Up: Performance RaMng of New Hires and retenMon by Hiring Source
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Can Employer Improve Reten6on?
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Retaining Top Talent • 25% of employees plan to change jobs this
year or next according to CareerBuilder • Whether voluntary or involuntary, very
disrupMve to business • Retaining high performers when aOriMon
occurs helps maintain a more producMve work structure
• Are you aware of RetenMon Risk?
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Preflight Checklist for Higher Reten6on
• Social Media/Referral-‐based RecruiMng • Quality of Hire • EffecMve Onboarding Process • Quarterly Goals/Review Process • Employee Engagement Surveys • CriMcal Roles • Flight Risk MiMgaMon • Development Plans • Mentoring Program • Succession/Replacement Planning • Good Turnover • Benchmarking and Goal Sesng
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Ques6ons • Are we retaining our top talent? • Where are we experiencing highest turnover of high performers?
• What is the internal promoMon rate of our High Performers?
• What programs are proving effecMve in improving our retenMon rate?
• What recruitment programs and investments (not costs) are contribuMng to retaining High Performers?
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© 2015 PeopleFluent Managing Your Talent Footprint
Succession Planning
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Nearly one-‐third (31%) of companies with more than 1,000 employees said they
don’t currently have a succession planning program at their organizaMon.
Source: CareerBuilder
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Succession planning needs to be in place up and down the en6re chain of command, not just for
management roles
Defini6on: Succession Planning/Development
The structured and coordinated prac6ce of iden6fying and preparing pools of internal talent to fill key posi6ons, with the goal of mee6ng business objec6ves.
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What is Lacking in Succession Planning?
• Not enough opportuniMes for employees to learn beyond their own roles – 39%
• Process isn’t formalized – 38% • Not enough investment in training and development – 33%
• Not acMvely involving employees or seeking their input – 31%
• It only focuses on top execuMves – 29 % **Managers also reported that workers’ awareness of and input on their own succession planning is important. 49% of employers said employees don’t set up career paths with their managers with Mmelines and milestones
Source: CareerBuilder
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Value of Succession Planning
• Avoids costs. Replacing someone, especially with an external candidate, creates costs in the areas of recruitment, HR administraMon, lost producMvity, and missed opportuniMes.
• Retains skills and knowledge. These are assets with real value that may be impossible to replace.
• Prevents backfilling. Stop the unintended ripple effect that’s created down the ranks as employees act as stop-‐gaps for vacant roles.
• Creates fluidity. An “irreplaceable person” won’t be promoted, blocking advancement for those below. This entrenchment forces a costly external search.
• Improves engagement and reten6on. Reduce turnover by engaging and keeping talented people. Offer clear career paths and build a team culture.
• Removes vulnerability. Skills redundancy ensures business conMnuity if a key staff member leaves.
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Ques6ons
• What is our Bench Strength for CriMcal Roles?
• Are we extending Succession Planning below Director Level?
• Do we understand the posiMon requirements to properly idenMfy Successors?
• What programs are proving effecMve to increase Successor Readiness?
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Poll QuesMon
• Which of the following BEST describes your efforts around Succession and/or Growth Planning? 1. We conduct Succession Planning that focuses on
top Mer of the organizaMon only 2. We conduct Succession Planning which spans deep
into our organizaMonal structure 3. We do not conduct Succession Planning
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Succession Planning with 9 Box
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Visualizing Your Talent Footprint
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Poll QuesMon
• Which best applies to you? How do you manage your HCM data? 1. All HCM data and Talent/Performance informaMon
is housed in a single system of record 2. We uMlize a single Product Suite (mulMple/
integraMon soluMons) to manage our HCM data (single vendor)
3. We uMlize mulMple best of breed point products across our organizaMon (mulAple vendors)
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Are You Able to Visualize Key Talent Data?
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Sample Talent Data • Performance/PotenMal RaMngs • Performance of New Hires • CriMcal Roles • RetenMon Risk • PosiMon Requirements • Readiness / Development Plans • PosiMon and Company Tenure • QualificaMons • Time to Hire • Good/Bad AOriMon • Internal Placement • ReMrement Eligible Date
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Bringing Your Talent Data Together • A secure, web-‐based soluMon that integrates a hierarchical
view of your business with data contained within virtually any data source including HR, ERP, succession or financial systems
HCM Data
Finance Data
Succession Data
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How Does it Work? 3 Step Process
STEP 1: Connect to Data Sources
STEP 2: Define & Configure Chart Styles/Content
STEP 3: Publish/Share Org Charts & Reports
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Common HR Talent Mgmt Data Needs • CriMcal Roles • High Performers • Head Count, FTE, and Contractors • Head Count with Open PosiMons • Span of Control Analysis • Salary • Performance • Talent Review • Succession Planning • OrganizaMonal Planning • BudgeMng • Diversity
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Driving Informed Talent Mgmt Decisions • Roll-‐up and summarize data
(such as head counts, salaries, etc.) to analyze workforce data
• Quickly produce ad-‐hoc reports using powerful search funcMons
• Create mulMple views using the same source data (cost center, org unit, etc.)
• View matrix reports, open posiMons, contractors and more
Quickly produce powerful workforce charts and reports that surface answers to the most
difficult workforce questions.
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The Value Proposition 1. Combine Talent Data from mulMple sources to build
talent profile view spanning the enMre workforce 2. IdenMfy criMcal roles and high performers 3. Flag retenMon risk / impact of loss (Mgr. EffecAveness) 4. Define PosiMon Requirements 5. Create Talent Pools 6. Evaluate New High Performers and Source of Hire 7. Conduct Succession Planning 8. IdenMfy and Compare Successor Candidates 9. Assign Successor Readiness 10. Evaluate and build bench strength (fill talent gaps)
Key Benefits in Managing Your Talent Footprint
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TM © 2015 PeopleFluent Managing Your Talent Footprint
Thank You
Find PeopleFluent on… TwiMer: twiOer.com/peoplefluent LinkedIn: linkedin.com/company/peoplefluent Facebook: facebook.com/peoplefluent Blog: peoplefluent.com/resources/peoplefluent-‐blog
John Kranz Product Manager [email protected] (m) 480.225.8204 For more informaFon, call: 214-‐574-‐5020 or visit our website at: www.peoplefluent.com
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