DC14 9. The why and ROI of new talent (John Slattery)

SummerbrookDevelopment

Early Talent

How can we raised its profile, impact and ROI


Agenda

Share experiences and key tools used to get Early Talent included on the

organisations talent management agenda, and some tools and techniques for

ensuring it continues to deliver value to the business.


Summerbrook Development Ltd

• John Slattery – Coach, trainer and consultant supporting companies and universities

• 20+ years experience in recruiting & developing apprentices, interns and graduates

• Most recently Group Head of L&D at United Biscuits


A Few Domestics

On Silent Please

50 Minutes10 for Questions

Business Card @Back of Room

Speak up

Leave address if want copy of slides


What one factor is most likely to

influence whether young football players

reach the elite/top of their

game?

Question


Answer• Date of Birth• Cut-off date for youth clubs is December 31• Players born earlier in year are older (faster & stronger) by

the cutoff and more likely to make the team• ‘Early Birthday’ players secure access to better coaching and

competition, making them more likely to make the next elite team

Born Jan,Feb, Mar

Born Oct,Nov, Dec

Born Jan,Feb, Mar

Born Oct,Nov, Dec

Born Jan,Feb, Mar

Born Oct,Nov, Dec

50%

17%

England50%

15%

Germany47%

4%

Italy


Manchester United – Most Trophies


So………………..Early Talent• If you want to successfully grow talent for

the future:– Clear vision, shared by all – especially

senior management– Sufficient investment of budget and

resource– Sustainable talent management

processes – They need to be able to play– They need to deliver the results!


So what is wrong with many company’s Talent Pipelines?

“…the pipeline model of succession planning is leaky, rusty and fundamentally broken…..” Corporate Executive Board (2013)

“Leaky”: Turnover, lost aspiration, changing preferences

“Rusty”: Future misaligned with current ability. Organisations want to replace 1/3 of bench.


• Senior perception – Not business driver, long term proposition, easy to cut, bigger process is broken

• Management perception – dips in performance & engagement, increase in leavers, not able to fully satisfy their HiPo’s

• HR perception – no measure of value (ROI), limited career paths, low post programme support, limited linking with HiPo Talent Plans, limited dedicated support for post programme talent

So what is wrong with many companies Early Talent Pipelines?


What evidence is there?• Chartered Institute of Personnel & Development (2013)

– 75% of companies do not perform Talent Management for graduates• Corporate Executive Board (2013):

– “…the pipeline model of succession planning is fundamentally broken…..”

– “Less than 30% of rising leaders are of sufficient quality…..”– “1/3 of the positions that pipelines are being built for will not exist

by the time a leader reaches them”– “25% of leaders believe there are opportunities for career

advancement….”

Association of Graduate Recruiters (2013)– Under 33% of companies measure ROI on graduate progs.– 56% of companies monitor salary progression

Corporate Leadership Council– Successful HiPo Development can lead to a 15.4% advantage in Total

Shareholder Value


So what can we do to address this for Early Talent?

1. Raise the profile of Early Talent– Senior Management Attention– Return in Investment and personal involvement

2. Integrate Early Talent into company talent strategy– Expand strategy to include graduates and create career

paths

3. Tactics to increase sustainability– Linking levels of leaders and delivering career skills for

graduate and managers


1. Raise the Profile - ROI Options• Return on Graduate hires

– Work value added (sales, increased efficiency/quality etc)– Value of accumulated ‘in-company knowledge and experience’– Future succession plan potential (to leader)– Strong employee value proposition

• Cost avoidance– Employees leaver after short stay– Poor recruitment decision– Slow pace of ‘getting up to speed’– Poor employee value proposition

Choose the ones you want to use!


ROI on Graduate to Leader Pipeline (per grad)

Promotion No. Salary

Salary Saving (10%)

Pot. Rec. Fee20% 1st Yr Salary Sub Total

27,0001 32,000 3,200 6,400 9,6002 38,000 3,800 7,600 11,4003 45,000 4,500 9,000 13,5004 52,000 5,200 10,400 15,6005 60,000 6,000 12,000 18,0006 70,000 7,000 14,000 21,0007 92,000 9,200 18,400 27,6008 120,000 12,000 24,000 36,000

£152,700


How to measure ROI of Tangibles?

= £152,700 - £37,500

£37,500X 100% = 307% ROI

(£115,200)

* Initiative Spend (Estimated recruit cost, 1st Yr Grad Salary, tax, training spend) = £37,500

Calculate an average for a typical year group

Career ROI

Improvement - Initiative Spend

Initiative Spend

*X 100% =


How to measure ROI of Intangibles?

= £270,000 - £37,500

£37,500X 100% = 520% ROI

(£232,500)

* Improvement in sales growth of £27m since they joined the Sales function. Could also be improvements in efficiencies, quality, waste attributes to them being internal promotions.

Calculate an average for a typical year group

RoleROI

1% Improvement - Initiative Spend

Initiative Spend

*X 100% =


2. Integrate Early Talent into Company Talent Strategy

Learning &Growth

Financial Internal Business

ProcessesCustomer

• Turnover, EBITDA

• Cash Flow

• Return on Capital Employed

• Financial Results (Monthly, Quarterly)

• Outline key activities per function

• Key process alignment

• Focus on efficiency and customer

• Develop new ‘Solutions Strategy’ and align with existing ‘Product Strategic Plan’

• Ensure clarity of product provision

• One face to Gillettte across all products and companies

• Clear Business Solutions message to all customers

• Grow technical capability in new product areas

• Embed new competencies and behaviours across EMEA

• Grow leadership bench strength in all key HiPo areas including Graduates



Comp & Benefits

Key Metrics Capability

Talent Strategy

• Maintain turnover at 4%,

• Engagement average up 4 points

• Overhead budget be maintained

• Reduce succession gaps to 5%

• Create Academy for Finance

• Deliver Sales training to support price increase strategy

• Maintain HSE achievement levels

• Develop post graduate programme training programme

• Develop new process for Expats

• Accelerate HiPo dev in Sales

• Reduce cost of recruit. To £1.2m

• Extend Talent Pipeline to include Early Talent

• Benchmark salary spend with peer companies

• Find alternative to current health insurance provider

• Launch an on-line benefits info tool for all employees

• Harmonise European benefits



Managing Self

Managing B. Units

Managing Functions

Managing Managers

Managing Others

Managing Enterprise

HiPo Population


Managing Self

Managing B. Units

Managing Functions

Managing Managers

Managing Others

Managing Enterprise

EarlyTalent

GraduatesInternsApprentices


HiPo Population



PTJS

AT



GeneralMngrs

DeborahGreen

Julian Taylor

Paula PriestKevin Peters

Z1 Direct Reports

ChristopherWilson

John Tierney & Peter Jarvis

Colin Smith/ Michelle Cleary

ExternalHeidi McCarthy

Emergency Cover

Pat Binkley

ExternalExternalHeidi McCarthy

ExternalReady in 1

year

R.Cousins / J.Edwards / B.Maloret

Heidi McCarthy

Ray Martin Tom SlaterHilary Backwell

Ready in 2 years

Joe James

Barry Bradley

C.Wood / P.Bradbury

J.Edwards

Ray Martin



GeneralMngrs

DeborahGreen

Julian Taylor

Paula PriestKevin Peters

Z1 Direct Reports

ChristopherWilson

John Tierney & Peter Jarvis

Colin Smith/ Michelle Cleary

ExternalHeidi McCarthy

Emergency Cover

Pat Binkley

ExternalExternalHeidi McCarthy

ExternalReady in 1

year

R.Cousins / J.Edwards / B.Maloret

Heidi McCarthy

Ray Martin Tom SlaterHilary Backwell

Ready in 2 years

Joe James

Barry Bradley

C.Wood / P.Bradbury

J.Edwards

Ray Martin


Manufacturing Manufacturing Support

Functional

Career Routes

Production Supervisor

Manufacturing Manager

Factory Manager

Manufacturing Director

QA Technologist

Manufacturing QA Mngr

Projects

Secondments

EMEA Projects Director

Team Manager



L&D Investment Prioritisation(Are we focussing on the right initiatives?)

30%10%40%20%

Proprietary knowledge and skills focused on

promoting the effectiveness of

operations and process

“Run the business”(Maintenance)

“Advance the Strategy”(Growth)

Inside UB(Proprietary,

DifferentiatingKnowledge and Skills)

Outside UB(Generic

KnowledgeAnd Skills)

Proprietary knowledge and skills required to enable the

achievement of organisational growth targets

Generic knowledge and skills required to enable the

achievement of organisational growth targets

Generic knowledge and skills focused on promoting the effectiveness of operations

and process

=30% =70%

=60%

=40%


5 Tools To Get You Started

30%10%40%20%

Proprietary knowledge and skills focused on promoting the

effectiveness of operations and process

“Run the business”(Maintenance)

“Advance the Strategy”(Growth)

Inside UB(Proprietary, Differentiating

Knowledge and Skills)

Outside UB(Generic

KnowledgeAnd Skills)

Proprietary knowledge and skills required to enable the achievement of organisational

growth targets

Generic knowledge and skills required to enable the achievement of organisational growth

targets

Generic knowledge and skills focused on promoting the effectiveness of operations

and process

=30% =70%

=60%

=40%

PT

JS

AT


3. Tactics to Increase Early Talent Sustainability

1. Linking Levels of leaders

i Leader responsible for an employee● Mentors at critical career junctures● Coach for specific development needs● Reflected in leaders performance review

ii Leaders attend development events● Share vision & show commitment

iii Graduate projects pitched to senior team



2 Build Career Skills

Manager: ‘Guiding the Development of Others’

Graduate: ‘Taking Charge of Your Development’


Taking Charge ofYour Development

• Understanding the company career development processes

• Understanding your career motivators, values, style, and barriers

• The value of feedback• Planning for career

conversations with your manager

• Creating & monitoring development plans


Guiding the Development of Others

• Understanding the company career development processes

• Career Coaching Key Principles• Managing career discussions• Motivating your employee• Development & carer path

planning• Company systems & tools


Manchester United

Like them or love them

Your Graduates

Love them or lose them


Your Questions?