Get ready for 2014 solve the talent management equation with job competencies

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In a 2012 Bersin and Associates research paper, only 6 percent of HR teams rated themselves excellent in data analysis, while 56 percent rated themselves poor." In school we all learn standard notation for math and how to solve equations, but we don't have that in talent management. We don't have it as a broad standard and we probably don't even define what our own internal "standard notation" is. While there is a wealth of data residing within the organization that might help us better define what "good" looks like and how to get there, elements like job descriptions or core and leadership competencies are not defining quantitative elements of our equation that align with the business side of our equation. In this session, we will: Review the challenges in defining talent management. Discuss the elements in the talent management equation. Describe how a job competency framework can balance the two sides of the equation. Review three steps to implementing a framework to making sense of the data

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  • 1.GET READY FOR 2014: SOLVE THE TALENT MANAGEMENT EQUATION WITH JOB COMPETENCIES To us, business is personalGordon Ritchie, October 2013

2. AGENDA IntroductionChallenges in defining talent managementElements in the talent management equationHow a job competency framework can balance the two sides of the equation3 steps to implementing a framework to making sense of the dataConclusion Questions, Next steps 2012 Kenexa Corporation4 3. CHALLENGES IN DEFINING TALENT MANAGEMENT 4. WORKFORCE MANAGEMENT SEE ANY SIMILARITIES? Were not gonna compete with teams that have big budgets. Were gonna work within the constraints that we have and youre going to go out and do the best job you can recruiting new players. I want you to go find replacements for the guys we lost with the money we do have. Copyright Kenexa, 2013 2012 2012 Kenexa Corporation6 5. Billy Beanes mission was to field and reward a team that can win against richer competitors.Isnt that what we need to do as well? Copyright Kenexa, 2013 2012 2012 Kenexa Corporation7 6. WE KNOW WHAT WE DO IS IMPORTANT BECAUSE THE ANALYSTS TELL US Best-In-Class organizations are more than twice as likely to identify competency data for each employee. SHRM recognized in their 2012 Employee survey, being recognized in using your skills is now the #1 employee job satisfaction issue, above pay, benefits etc.If we can apply science to improving the selection, management, and alignment of people, the returns can be tremendous. Forbes Leadership Article February 2013Copyright Kenexa, 2013 2012 Kenexa Corporation8 7. POLLING QUESTION 1 What are the obstacles you face to quantifying talent management? A. Disconnected talent management tools B. Poor reporting or analytics tools C. No standard formulas D. No clear definition of what talent it or the results they impact 2012 Kenexa Corporation9 8. POLLING QUESTION 1 ANSWERS 2012 Kenexa Corporation10 9. WHAT ARE YOU MEASURING FOR RESULTS? How does your HR group measure success?How does your business measure success?1. %ge review forms completeRevenue2. Onboarding completeCustomer retention3. Cost per hireProfit4. Hours of learning deliveredGross Margin5. Compensation plan increaseEBITDA6. Staff turnoverEBITDA Per Employee7. Staff tenureShare price8. Employee engagementEPSA+B/TM = DOW($ X PE) We know what + / X and = means. But how do we balance the equation to solve what affect one item has on the other side? 2012 Kenexa Corporation11 10. ELEMENTS IN THE TALENT MANAGEMENT EQUATION 11. DEFINING A ROLE WE NEED PERFORMED Job DescriptionsResumesLinkedIn profilesSocial profilesExperienceTime servedSelf reportedAssessments Cultural, Leadership, Succession,Performance ratingsBusiness ResultsPerformance Management, Coaching, Goal Setting, Assessment, Succession Planning Employee Development, Advancement, Compensation Planning, Affiliation and EngagementUnified Talent Profile?Job Descriptions, Job Value and Competencies Copyright Kenexa, 2013 2012 2012 Kenexa Corporation13 12. Business ResultsJob Descriptions, Market Data and Competencies Copyright Kenexa, 2013 2012 Kenexa Corporation14 13. TALENT ANALYTICS: BIG DATA CUBE Data in:CompensationFunctionJob LevelCore Competencies Disconnected TM tools Disconnected processes Incumbents Candidate Self/360/test/SJT Performance Appraisals Compensation Plans Engagement Surveys Development plansFunctional CompetenciesJob Profile 2012 Kenexa Corporation15 14. IF YOU WANT IT, YOU CAN FIND IT Social CloudSystem of record HRIS, ATS, LMS, Mobile Crowd sourcedAnalytics tools Structured/Unstructured Excel Best of breed vs integrated suite Performance Custom/config/off the shelf Compensation survey planning Access WordONLY AS GOOD AS THE DATA THATS Assessments IN THERE. Etc, OLD DATA CAN BE WORSE THAN NO DATACopyright Kenexa, 2013 2012 Kenexa Corporation16 15. ELEMENTS IN THE EQUATIONTALENTCopyright Kenexa, 2013 2012 Kenexa Corporation+SKILLSxCULTURAL FIT=PERFORMANCE17 16. ITS ABOUT THE EMPLOYEES Employee Engagement Index (EEI) positively correlates to financial returns. Higher EEI results in greater discretionary effort. ROA = 3X that of those that dont invest in HCMPs. Those not investing are typically less than 1% of payroll on recognition. Kenexa High Performance Institute, 2013: Human Capital Management Practices, a win-win solution HCMP-Human Capital Management Practices of Development, Performance and Recognition. ROA-Return on Asset = profit related to total assets. 2012 Kenexa Corporation18 17. WHY COMPETENCIES ARE IMPORTANT. Internal challenges to address via assessmentsAll Organisations 37%Weak or limited leadership pipeline36%Consistency in employee competence 31%Excessive first year turnover among new hiresThe number one strategy used by best in class companies was to develop a competency framework. 30%Lack of skills to meet organizational needs0%Impact of Assessments in Talent Management5%10%15%20%25%30%35%40%8%Employee performance18% 2%Quality of hire17% Employee productivity0%-10%0%7%14% Not Using AssessmentsOverall turnoverUsing AssessmentsRecruiting costs-12% -15%-10%-5%0%5%10%15%20%Source: Aberdeen 2009 Study; Assessments in Talent Management Copyright Kenexa, 2013 2012 Kenexa Corporation19 18. LETS BUILD OUT AN EQUATION Start with the big one Salary Bill = typically the biggest expense for an organization Average Salary = $100,000 Cost * productivity = contribution $10,000,000 * 100% = $10,000,000 $10,000,000 * 90% = $9,000,000 $10,000,000 * 110% = $11,000,000 Thats the equivalent of 10 new staff members.Copyright Kenexa, 2013 2012 Kenexa Corporation20 19. MAXIMIZE THE POSITIVE Loaded Salary cost X Avg Tenure X Productivity% = Salary Cost Goal X Avg Tenure X Productivity% = Goal Miss$100,000 X 5 years * 90% = $450,000 = Loss of $50,000 Sales person with a $2million quota $2,000,000 X 5 years X 90% = $1million loss That person is costing the company the opportunity to add 2 sales people which is a $20million opportunity cost. 2012 Kenexa Corporation21 20. THE RESULTS ON THE RIGHT HAND SIDE What did you put on your SEC 10K or Annual report? Succession Acquiring Talent Engaging TalentCost of a poor hire: $300K-$500KCost of losing a talented employee: $250K-$500KExpense management Retaining TalentSales resultsOperational efficiency rate due to poor employee engagement: 30%Value of a top performer: 2-4X performance of average employees Evaluating TalentCompetitive product resultsThese numbers are consolidation of numbers from the HCI. Copyright Kenexa, 2013 2012 Kenexa Corporation22 21. CHALLENGES DEFINING COMPETENCIES What prevents you from implementing competencies (or extending the competencies you have) in your organization? 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%Manual processBudget Too difficult to Constraints define competenciesToo many jobsLack of executive supportSource: Competencies, Compensation and Technology Luncheons.- 2012 Copyright Kenexa, 2013 2012 2012 Kenexa Corporation23 22. STANDARDIZING THE FORMULA WITH A COMPETENCY FRAMEWORK 23. COMPETENCIES ARE THE CURRENCY OF TALENT MANAGEMENT JOSH BERSIN, 2007But as soon as I say competency, you hear CoreTime consumingLeadershipHard to doFunctionalHard to prove ROITechnicalNo impactBehaviouralTried itTraitsTried it again,CARSDone themBARSSomeone else did some tooProficiency levelsToo HRAssessmentNot important or relevantFewer = easier 2012 Kenexa Corporation25 24. WHAT IS A COMPETENCY ?Kenexa definition of Competency is a combination of knowledge, skills and abilities (KSA) describing the demonstrable indicators of proficiency Core Competencies=price of admissionLeadership competencies=developing the futureFunctional competencies=executing as a teamTechnical competencies=impacting performance of the organization today.Copyright Kenexa, 2013 2012 Kenexa Corporation26 25. COMPETENCIES ARE THE FOUNDATION Conclusion: The most successful organizations rely on a talent infrastructure that encompasses the right competencies and job profiles as a basis for Career & integration. Succession Planning Integrated Talent Management: A roadmap for success. Performance Bersin and Associates, 2012 ManagementLearning Needs AnalysisFunctional Job & Competency FrameworkUsing a Job Competency FrameworkRisk AnalysisCompensationprovides a Clear, Common and Consistent language for Talent Management. It connects processes and enables integration across HRIS and Talent Management investments, already made. 2012 Kenexa CorporationResource PlanningRecruitment & Selection27 26. ITS ABOUT ALIGNING THE JOB NEEDED TO THE JOB DONE Functional Job AnalysisOutcomes Research Library Custom Professional 3rd party Business resultsAssessment Survey Compensation Performance Core High Performance BehaviorsApplication Performance Pre-hire Post hire Development Engagement Succession (tactical) Succession (Executive) Compensation Workforce capability= HR Impact and respect Employee job satisfaction Operational success Business resultsKenexa definition of Competency is a combination of knowledge, skills and abilities (KSA) describing the demonstrable indicators of proficiency. Core Competencies=price of admissionLeadership competencies=develop the future management line of successionFunctional competencies=execute as a team and ensure operational successionTechnical competencies=impact performance of the organization today. 2012 Kenexa Corporation28 27. THE KENEXA JOB MODEL Matrix Job Function 6 Job Levels (IC, Supervisor, Manager, etc) Primary Job Focus (tech, Prof, Admin, Mgmt, etc)Copyright Kenexa, 2013 2012 Kenexa CorporationJob Description Code Title Summary Responsibilities CompensationCompetencies (KSAs)(Core, Leadership, Functional and Technical) Definition 4 Proficiency Levels Behavior statements by level Target Proficiency level Application AcceleratorsLearning References Development Statements Coaching Tips Performance Rating Writing Assistants Interview Questions 29

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