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Part of the CHRO Insight Series CEB Corporate Leadership Council™
Second Quarter 2016HR News Report
Featured Trends
Employment Value Proposition: Millennials Aren’t Job Hopping for the Reason You Think
Leadership: Leaders and Employees Are Divided on Change Management
Performance Management and Productivity: What Are Performance Ratings Worth?
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CEB Corporate Leadership Council™
Practice LeaderBrian Kropp
Research DirectorsMatt DudekJessie Knight
Senior Research AnalystsIsabel EcksteinBlakeley HartfelderBethany HorstmannMeg Zolner
Research AnalystsDanielle DouglasMichele FlomFiona LamNina MorenoEmily PowellPeter Vail
Content Publishing Solutions
Print DesignerReid Griffler
EditorSabrina Ashwell
Diversity and InclusionIncrease Stakeholders’ Stake in D&I
Employee EngagementBusiness Leaders Still Aren’t Engaged with Engagement Data
Employment Value PropositionMillennials Aren’t Job Hopping for the Reason You Think
HR TransformationMore Money Doesn’t Mean More Analytics Impact
LeadershipLeaders and Employees Are Divided on Change Management
Learning and DevelopmentEasier Beats Fun in Employee Learning
Organization DesignPersonalized, Not Consistent, Design Enables Effective Change
Performance Management and ProductivityWhat Are Performance Ratings Worth?
RecruitingYour Hiring Managers’ Requirements Don’t Match Reality
Total RewardsBalanced Wellbeing Strategies Mean Balanced Employees
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Starting at the Bottom: It’s Time to Change Your Change StrategyApril–September 2016
How can heads of HR and their teams create a change-capable workforce that consistently performs well during change and that vastly improves the probability of change success?
Join our upcoming meeting series where we will answer this question through new best practices and tools:
• Incorporate profiles of the types of employees who are most successful at managing change into talent decision-making processes.
• Adopt new manager and leader expectations for managing change.
• Adjust talent management processes for new engagement and performance strategies.
• Use new communication strategies to improve employee performance through change.
Designing HIPO Strategies for an Uncertain FutureAugust–November 2016
How can organizations develop HIPO strategies that are agile enough to address the rapidly changing needs of the organization and its most promising employees?
Join our upcoming meeting series where we will answer this question through new best practices and tools:
• Use our new high-potential model to uncover hidden HIPO talent within your workforce.
• Take advantage of HIPO preferences data to build an employment value proposition to retain your HIPO talent.
• Use our HIPO Program Development Guide to build agile HIPO programs that respond as the profile of the high-performing leader evolves.
The Risk of Inaction
Source: CEB analysis.
The average organization can expect to lose
in lost productivity from failed change over three years.
$10,700per employee
HIPO Program Failure
Source: CEB analysis.
of HIPO programs fail to deliver the leadership talent that the organization needs when it needs it.
69%
The Top Two Conversations You Need to Join in 2016
CEB Corporate Leadership Council™ 2016 Meeting Series Topics
How to Attend Contact your account manager, or e-mail [email protected].
Definition
Analytic Impact The extent to which talent analytics improves decisions and provides actionable support to key stakeholders
Data Source1 CEB 2015 Careers Employee Survey.
CEB Perspective
Organizations most satisfied with their D&I metrics approach are more likely to track a comprehensive set of D&I metrics, including employee engagement, D&I compliance, and participation in D&I activities. They also share metrics throughout the organization. Supporting leaders to interpret data and engaging them in identifying solutions can boost analytic impact by up to 24%.1
What’s Next for You?
■ Identify and prioritize the D&I metrics best aligned with business needs with this CEB Ignition™ Guide.
■ Ensure the relevance and credibility of talent data with this guide. ■ Train HRBPs on data judgment by using this exercise.
Diversity and Inclusion
Increase Stakeholders’ Stake in D&I
The challenge of how to collect, commit to, and set goals for diversity and inclusion (D&I) metrics slows organizations’ advancement of metrics in a holistic D&I strategy.
In the News
Most internal stakeholders say talent data is difficult to consume and act on. This feeling is compounded in a D&I context, given the uniqueness and relatively recent emergence of D&I metrics tracking. As D&I continues to move beyond basic representation statistics, HR organizations recognize the importance of clarifying a metrics strategy that will set the tone of and goals for D&I progress.
CHRO
CEO
Senior HR Officers
Business Unit Leaders
Board of Directors
0% 45% 90%
88%
72%
65%
47%
40%
30%General Counsel
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Percentage of Organizations Sharing D&I Scorecards with Stakeholder Groups
n = 44.Source: CEB analysis.
Deliver D&I and Other Data Clearly
■ How do our line leaders like to consume internal data? Where are opportunities to present our D&I data according to those preferences?
■ How do line leaders use our talent dashboards?
Tease Out Key Data-Based Insights
■ What are the core D&I challenges we want to discuss with line leaders? What data will support our argument?
■ Where should we actively aim to influence our line partners instead of letting them draw their own conclusions from D&I data?
Support Ongoing Execution of D&I Decisions
■ How well do our line leaders identify appropriate next steps given D&I and other talent data?
■ Where does D&I execution typically fall short, and how can we improve?
Diversity and Inclusion
Three Key Things to Take Away from Seagate’s Practice
Seagate’s Implication-Based Decision SupportSeagate uses data visualization tools, decision-making criteria, and execution guidance to coach line leaders in making data-based talent decisions and setting appropriate goals.
Source: Seagate; CEB analysis.
© 2016 CEB. All rights reserved. CLC5851016SYN 5
Developing Simplified VisualizationsIllustrative Example
Visualizations highlight the talent condition to be diagnosed, current state and industry benchmarks, and the recommended goal.
Current State
Industry Benchmark
Internal Goal
Seagate’s Approach: Filtered Data Visualization for Leader-Led Diagnosis of Workforce Health
Workforce Distribution
40%
0%
20%
Gra
du
ate
Inte
rmed
iate
Sen
ior
Sta
ff
Sen
ior
Sta
ff
Pri
nci
pal
Fel
low
Workforce Planning Discussion
HRBPBusiness Leader
Typical Approach: High Volume of Workforce Planning Data Available to HR
What is the most important data for business leaders to diagnose challenges?
“”
RA
NK
Global Australia China India Southeast Asiaa United Kingdom United States
1 Compensation 48.5%
Work–Life Balance 55.3%
Compensation 68.2%
Work–Life Balance 37.4%
Work–Life Balance 41.7%
Work–Life Balance 54.3%
Compensation 57.1%
2Work–Life Balance 38.7%
Location 43.7%
Development Opportunity 33.0%
+1 Growth Rate 30.5%
Compensation 36.8%
Location 45.7%
Work–Life Balance 43.8%
3 Stability 33.7%
Respect 32.6% +2 Stability
29.8% +2 Respect 28.4% +1 Stability
32.1%Stability 34.3%
Health Benefits 40.6%
4 Respect 29.7%
Stability 32.0% -1
Future Career Opportunity 28.8%
-2 Stability 26.0% -1
Future Career Opportunity 30.0%
+1 Compensation 30.9% +1 Stability
40.0%
5 Location 29.5% +1 Compensation
28.2% +1 Respect 26.7% -1
Future Career Opportunity 23.8%
Health Benefits 28.1%
-1 Respect 29.4% -1 Location
39.4%
6Future Career Opportunity 23.0%
-1Ethics and Integrity 28.2%
-2Work–Life Balance 25.9%
+2Technology Level 23.8%
Respect 27.8%
Vacation 22.3%
Respect 29.5%
7Development Opportunity 20.6%
Future Career Opportunity 23.9%
Health Benefits 25.2%
+2 Location 20.6%
Location 24.2%
Future Career Opportunity 21.8%
Retirement Benefits 27.1%
8Ethics and Integrity 19.0%
+1Job–Interests Alignment 17.5%
+1Retirement Benefits 20.2%
-2 Compensation 20.0% +2
People Management 21.5%
Recognition 18.9% +1 Vacation
24.7%
9 Vacation 18.1% -1 Recognition
17.3% -1 Vacation 19.7% -2
Innovative Work 19.4%
+2Ethics and Integrity 20.8%
+2Retirement Benefits 18.3%
-1Ethics and Integrity 23.3%
10Health Benefits 16.9%
Manager Quality 17.2%
Location 17.5%
Development Opportunity 19.0%
-2Development Opportunity 19.8%
Development Opportunity 16.3%
Future Career Opportunity 21.5%
Definitions
Mood Indicators Technologies that measure and monitor employees’ moods, are easy to deploy, and require little employee effort
Pulse Surveys Short, low-effort surveys that measure the organization’s sentiment toward an issue or a topic
Data Source1 CEB 2015 Head of Engagement Survey.
CEB Perspective
Over half of heads of Engagement rate acting on engagement data as their biggest challenge, and only 20% believe their organizations do this well.1 Although changing engagement metrics may slightly help, real progress will come only from post–data collection steps. Organizations should increase action plans’ relevance and involve line leaders more in action planning.
What’s Next for You?
■ Identify innovations in measuring employee engagement with this report. ■ Plan and implement an engagement strategy with this playbook. ■ Access tools to help managers carry out action plans with our manager
resource portal.
Employee Engagement
Business Leaders Still Aren’t Engaged with Engagement Data
Engagement surveys help organizations understand employee sentiment, but challenges in acting on the data have led many organizations to question the utility of these surveys.
In the News
Organizations’ traditional engagement measure—annual employee feedback surveys—is competing with new, more nimble technologies such as pulse surveys and mood indicators as well as non-survey measurements based on HRIS or social media data. Although organizations are using surveys and newer approaches to achieve just-in-time measures of engagement, how to quickly act and show progress on engagement still challenges many.
20% Effective
80% Not Effective
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Organizational Effectiveness in Acting on Engagement DataPercentage of Heads of Engagement
n = 177.Source: CEB 2015 Head of Engagement Survey.
Identify Engagement Data Champions
■ What would effective engagement champions look like at our organization, and what training and support would they need?
■ How willing and able are our line leaders and managers to track, interpret, and share talent data, including engagement data?
Get Grassroots Engagement Feedback from Employees
■ How comfortable do employees feel voicing concerns and frustration about their work and brainstorming creative solutions?
■ What makes feedback sessions productive, and how would we apply that feedback to engagement action planning?
Plan Customized Engagement Activities
■ How should we change our action planning process to ensure managers can use all available inputs (including engagement data) to customize their plans?
■ How can we drive greater accountability with line leaders for creating and tracking progress on action plans?
Employee Engagement
Three Key Things to Take Away from UOB’s Practice
UOB’s Customized Team Engagement Action PlansUOB builds and implements customized team action plans by providing line leaders with action planning support from talent champions (mid-level managers) and grassroots feedback from employees.
Objectives 1. Disseminate engagement survey results.
2. Obtain staff feedback or survey questions with weak results.
3. Generate ideas for team action plans.
Participant Roles Champion
■ Facilitates discussion ■ Explains survey results ■ Links engagement to business goals
Line Managers ■ Share success stories from previous action plans ■ Solicit ideas for new action plans
Employees ■ Explain their engagement needs ■ Suggest ideas for action plans
Employees ■ Explain their engagement needs ■ Suggest ideas for action plans
Discussion Template (Illustrative)
Survey Question Current State Desired Future State Ideas for Engagement Action Plans
Q 31 Inadequate clarity on available career paths
Team members see long-term careers at UOB.
■ Include three-year career goals on IDP.
■ Highlight cross-functional opportunities through job portal.
Source: United Overseas Bank Limited; CEB analysis.
© 2016 CEB. All rights reserved. CLC5851016SYN 7
UOB Engagement Action Planning Session
Definitions
Career Risk Triggers Work or life events that prompt employees to reflect on and reconsider their careers
EVP The set of attributes the labor market and employees perceive as the value they gain through employment with the organization
Data Source1 CEB 2015 Careers Employee Survey.
CEB Perspective
Our data shows that millennials want new experiences, not new jobs. But millennials’ responsibilities change faster than those of other generations, a career risk trigger that spikes job search activity by 17%. 1 To better retain millennials, effectively deliver the EVP attributes millennials value most, such as future career opportunity and development opportunity.
What’s Next for You?
■ Equip employees and managers to more effectively communicate with these guides.
■ See how HCL made internal opportunities more visible. ■ Identify how to fulfill your EVP promise with this CEB Ignition™ Guide.
Employment Value Proposition
Millennials Aren’t Job Hopping for the Reason You Think
By attributing millennial job hopping and attrition to generational disloyalty, organizations risk ignoring underlying, day-to-day causes of millennial dissatisfaction and attrition.
Featured
In the News
Research studies and popular press citing millennials’ tendency to switch jobs more than other generations continue to dominate public conversation on millennials. The recommended responses range from providing more vacation days to investing in more technology for employees. Some organizations, though, question how different this generation really is as they consider how to refine their employment value propositions (EVPs).
0%
15%
30%
0%
15%
30%
26%
17%
Millennials Non-Millennials
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Anticipation of Significant Change in Job Responsibilities Within the Next Six Months
n = 2,005 (millennials); 8,506 (non-millennials)Source: CEB Q1 2016 Global Labor Market Survey.
Prepare for Predictable Risks
■ What career risk triggers occur most often with our employees?
■ How well prepared are managers and employees to respond to career risk triggers?
Empower Managers to Detect Evolving Career Risk Triggers
■ How do managers determine when to have career conversations?
■ What additional training or development support for managers is required to prepare them to detect career risk triggers?
Tailor Interventions Based on the Risk
■ What different treatments of career risk triggers should we recommend managers use?
■ What interventions can HR scalably deploy, and what interventions should rely on the managers to introduce via 1:1 conversations?
Employment Value Proposition
Three Key Things to Take Away from CEB’s Practice
CEB’s Career Risk TriggersOur career risk triggers highlight events in employees’ lives corresponding to the highest increases in job search activity and decreases in career satisfaction to inform career conversations.
Career Risk Trigger ∆ Career Satisfaction ∆ Job Search Activity
Birthday –4% +12%
Tenure in role –3% +9%
Tenure in organization –4% +6%
Lack of recent development opportunity –3% +7%
Change in manager or responsibilities –3% +17%
Major gathering of friends/classmates –2% +16%
© 2016 CEB. All rights reserved. CLC5851016SYN 9
Career Risk Conversations (Manager Driven)
Managers should schedule short career checkups with direct reports based on personal career risk triggers.
3xPost–Performance Review Career Conversation (Centrally Mandated)
Managers should encourage employees to schedule one extensive career conversation per year to reflect on strengths and interests.
1xCareer Checkups (Employee Driven)
Managers should encourage direct reports to schedule regular career checkups to follow up on development actions.
Source: CEB analysis.
Definition
Analytic Impact The extent to which talent analytics improves decisions and provides actionable support to key stakeholders
Data Source1 CEB 2015 Careers Employee Survey.
CEB Perspective
Investing in sophisticated analytics methods and technologies does not guarantee progress. To ensure investments this year result in high analytic impact, organizations should improve business application of talent data instead of focusing on more sophisticated analytics methods.
What’s Next for You?
■ Prioritize the right analytics questions with this CEB Ignition™ Guide. ■ Source and apply benchmarking data to your projects with this tool. ■ Prepare HRBPs to make recommendations from talent data with this
guide.
HR Transformation
More Money Doesn’t Mean More Analytics Impact
Despite talent analytics’ rising importance, organizations still struggle to exploit analytics to meet critical business needs.
In the News
Ninety-five percent of HR leaders globally plan to increase investments in HR analytics in the near future. However, our data highlights that effectively managing talent analytics ranks last of 38 activities on HR’s performance evaluation—averaging 1.46 on a seven-point scale.
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Three Least Mature HR Activities GloballyBy Average Maturity Score (Scale of 1–7)
n = 534 organizations.Source: CEB analysis.
0.00
1.00
2.00
0.00
1.00
2.00
1.46
1.69 1.70
Manage Talent Analytics
Manage EVP Develop a Workforce Plan
Prioritize Analytics Needs Based on Business Goals
■ What are our organization’s biggest talent goals? What does talent data suggest about our performance on those goals?
■ To what extent are we involving business leaders in talent analytics decisions?
Identify Potential Data Application Challenges Early
■ Are we tracking all the data we need? To what extent can we use the talent data we have?
■ Who should be involved in the implementation process?
Embed Data-Based Insights Within Talent Discussions
■ To what extent are we embedding talent analytics in ongoing talent discussions?
■ How can we most effectively deliver talent data during talent discussions?
HR Transformation
Three Key Things to Take Away from Gap’s Practice
Gap’s Analytics Prioritization PrinciplesGap Inc. uses line feedback to prioritize human capital questions for ongoing analytics tracking that aligns with organizational and business unit goals.
Source: Gap Inc.; CEB analysis.
© 2016 CEB. All rights reserved. CLC5851016SYN 11
Gap Inc. Workforce
Analytics Team
100 Human Capital Questions Survey
Please rank the top 15.
Top 15 Human Capital QuestionsPiperlime
Top 15 Human Capital QuestionsBanana Republic
Top 15 Human Capital QuestionsOld Navy
Key Stakeholders
Piperlime
Old Navy
Banana Republic
Intermix
Gap
Athleta
HR Operations Team (Data Expertise)
HR Generalist Team (Business Expertise)
Old Navy
Top 15 Questions (Old Navy)
VP
HR representatives from each brand review the 100 human capital questions provided by the Workforce Analytics Team and identify the top 15 that are most important to help them make decisions for their business.
Definition
Open Source Change When an organization uses the entire workforce to plan and implement change by leveraging their diverse skills, experiences, and knowledge
Data Sources1 CEB 2016 Change Management Head
of Function Survey.2 CEB 2016 Workforce Change Survey.
CEB Perspective
Sixty-five percent of organizations don’t adequately source and incorporate employee feedback on change strategy. 1 However, using this feedback or facilitating Open Source change can increase the probability of change success by 15 ppt., compared with only 4 ppt. when relying on leaders’ perspectives alone. 2
What’s Next for You?
■ Solicit employee feedback with this CEB Ignition™ Guide. ■ Learn how to align employees with corporate strategy with this article. ■ Help HRBPs solicit and influence employee feedback with this webinar and
research report.
Leadership
Leaders and Employees Are Divided on Change Management
Although most leaders believe they effectively involve employees in change strategy decisions, employees feel differently—and this disconnect has several implications for change management.
In the News
To make change faster, organizations have evolved change management processes such that leaders make most of the strategic change decisions. Leaders aspire to and believe they do involve employees in this process, but most employees disagree. This mismatch has led some organizations to argue for democratizing change strategy setting, making organizations move slower in the short term but win in the long term.
74% Agree
26% Neutral or Disagree
42% Agree
58% Disagree
Featured
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Leaders’ and Employees’ Perceptions of Involvement in Setting Change StrategyPercentage of Leaders Saying They Involve Employees in Creating Change Strategy
Percentage of Employees Saying They Are Involved in Creating Change Strategy
n = 102.Source: CEB 2016 Change Management Head
of Function Survey.
n = 6,686.Source: CEB 2016 Workforce Change Survey.
Coach Leaders on Identifying Influential Change Stakeholders
■ To what extent have we provided leaders with tools and questions to identify potential participants in an open source process?
■ Where do we typically have resistance during change, and how can we include those groups earlier in the change?
Identify Opportunities to Include Employees in Decision Making
■ What systems allow leaders and employees to participate in making decisions?
■ What does employees’ feedback suggest about our decision making’s inclusivity? How can we make our commitment to inclusiveness clear and credible?
Hold Leaders Accountable for Making Inclusive Change Decisions
■ What strategies can help support leaders’ inclusive change decision making (e.g., peer-to-peer reinforcement, objectives)?
■ What are our expectations for employees in holding their managers and senior leaders accountable for managing change inclusively?
Leadership
Three Key Things to Take Away from Red Hat’s Practice
Red Hat’s Open Decision FrameworkRed Hat’s Open Decision Framework coaches leaders on how to involve their employees early in change decision making and provides dedicated decision criteria and other enablement support.
© 2016 CEB. All rights reserved. CLC5851016SYN 13
Who would be surprised by this?
Who is likely to opt out or reject the solution?
Who is knowledgeable about this and may not speak out?
Are specific demographics or geographies affected?
Who might care about this despite not being affected?
Who is outspoken about this?
By asking these questions, leaders realize whom to include in decisions.
1. Whom Should I Include?
2. How Should I Include Them?
Leaders can experiment with how to include others based on:
■ The impact of the decision, ■ The time constraint, ■ Employee expertise, and ■ Legal constraints.
Formal Org Meeting
Advisor to Project Team
Informal Conversation
Member of Project Team
Employee Survey
Scale of Employee Involvement
n = 102.Source: CEB 2016 Change Management Head of Function Survey.
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Most organizations have redesigned their learning programs to make learning more fun and enjoyable, but employees find this type of learning hard to understand and apply.
Organizations That Have Redesigned Learning Content in the Past Three Years to Make It More Enjoyable
n = 112.Source: CEB 2016 Head of L&D Digital Learner Survey.
Easier Beats Fun in Employee Learning
Opportunity: Prioritize Ease of Understanding for Learning ImpactThe rise of digital technology has many implications for L&D functions, including changes to the clients whom L&D and HR support. New “digital learners” are more empowered in owning learning, more networked in learning from their peers, and more impatient to learn new information just in time.
To adapt to this new, predominant learner, most L&D organizations have used strategies to deliver more varied types of learning in more ways, including redesigning learning content to make it more enjoyable. However, only 45% of employees think this content is easy to understand.1 As a result, organizations should reevaluate their learning offerings’ design and delivery to create an effortless, not just enjoyable, learning experience.
79% Agree
Learning and Development
© 2016 CEB. All rights reserved. CLC5851016SYN 15
1 AssessDiscuss these questions at your next team meeting.
For CHROs ■ What consumption of our existing learning programs
and channels are we seeing? Have we created a culture of continuous learning?
For HRBPs ■ How would managers and employees evaluate our
learning content? What type of learning does my business unit need right now?
2 PlanFind the right best practice.
For CHROs ■ Learn how some organizations are building a strong
learning culture to drive greater learning application from employees.
For HRBPs ■ Learn how Herbert Smith Freehills uses network
performance points to foster greater employee collaboration and peer learning.
3 ExecuteDrive and embed change.
For CHROs ■ Use ongoing talent planning discussions to identify
employee learning needs with the CEB Ignition™ Guide to Conducting an Organizational Talent Review.
For HRBPs ■ Share resources from this portal to ensure managers
support the right learning and development activities.
■ Use this guide to evaluate potential barriers to employees applying learning on the job.
What the Best Companies Do™
Leading organizations recognize that an engaging learning experience may drive satisfaction, not necessarily application.
To facilitate a high-impact, effortless learning experience, organizations should prioritize the following:
Consumability—Design learning solutions based on learner values, not learning trends.
Applicability—Boost learning’s long-term career applicability, not just immediate job relevance.
Accessibility—Prioritize placement of learning, not proliferation of learning channels.
Make the Most of Your Membership
Use this CEB Ignition™ Guide from CEB Learning & Development Leadership Council to streamline and prioritize learning activities for employees. (Ask your account manager about your organization’s current memberships.)
Data Source1 CEB 2016 L&D Digital Learner Survey.
Action Plan to Maximize This Opportunity
Learning and Development
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As organizational change initiatives increase in scope and complexity, teams and employees don’t know how they should continue to work together, resulting in 55% of employees aligning their effort with the wrong work activities during change.
Percentage of Employees Aligning Their Efforts with the Wrong Activities During Change
n = 6,686.Source: CEB 2016 Workforce Change Survey.
Personalized, Not Consistent, Design Enables Effective Change
Opportunity: Personalize Team and Role Design Updates During ChangeFifty-five percent of leaders don’t know what employees need to do differently to implement change. As a result, leaders often force fit one implementation plan, leading to employees’ misaligned effort. In fact, with one change that lasts just six months, the average organization experiences 601,704 wasted employee hours.1
To effectively harness employee effort during change, organizations should prioritize strategies that allow for greater personalization, not standardization, of organizational design changes. Allowing mid-level managers and employees to translate changes to their day-to-day roles and responsibilities boosts both the immediate and ongoing relevance of change initiatives. Organizations where employees own change implementation planning increase the likelihood of change success by 11%. 2
55% Agree
Organization Design
© 2016 CEB. All rights reserved. CLC5851016SYN 17
1 AssessDiscuss these questions at your next team meeting.
For CHROs ■ How do our employees and leaders respond to
organizational design changes? How can we extend HR’s presence throughout the organization to more effectively use change and design implementation feedback?
For HRBPs ■ How can we help bridge the gap between leaders and
employees to ensure effective communication on day-to-day role and team design occurs throughout the organization?
2 PlanFind the right best practice.
For CHROs ■ See how Arrium redeployed select HRBPs to employee
and managerial levels of the organization to solicit implementation guidance and deliver timely HR support.
For HRBPs ■ See how HRBPs at Salt River Project proactively share
workforce intelligence within HR and throughout the organization during change to anticipate confusion.
3 ExecuteDrive and embed change.
For CHROs ■ Direct HRBPs’ time and attention to all levels of the
business units they support with this HR Business Unit Scorecard.
For HRBPs ■ Use our manager guide to coach managers on their
role in translating upcoming organizational design changes.
What the Best Companies Do™
Change implementation plans that don’t reflect the reality of employees’ day-to-day roles and responsibilities waste employee effort on the wrong activities.
To direct employee effort toward the right activities and increase the likelihood of change success, leading organizations integrate employees as key stakeholders during change and allow them to personalize change implementation plans.
Definition
Organizational ChangeSignificant changes to reporting relationships, operations, job design, ownership, or other structures of the organization, business unit, or function
Have You Considered…?
Deploy our ClearAdvantage Check survey in your business unit to identify the best strategies for maintaining employee alignment and involvement during change initiatives.
Data Sources1 CEB 2016 Workforce Change Survey. 2 CEB 2016 Change Management Head of Function
Survey.
Action Plan to Maximize This Opportunity
Organization Design
Definition
Performance Ratings A system of numeric or qualitative labels given to employees to represent their performance on a scale
Data Source1 CEB 2016 Pay for Performance Employee
Survey.
CEB Perspective
Only 5% of managers effectively manage performance without ratings.1 So, while organizations should evaluate ratings, they should still focus on core performance management elements: forward-looking conversations, peer feedback, and practical tools.
What’s Next for You?
■ Create a consistent evaluation process with this CEB Ignition™ Guide. ■ Coach managers on performance conversations with this report and guide. ■ Learn more about performance reviews with this report.
Performance Management and Productivity
What Are Performance Ratings Worth?
As organizations question the future of their performance processes, they are challenged to not lose sight of the most effective, everyday drivers of employee performance.
In the News
With widespread discussion about new and innovative performance management ratings and processes, many organizations are reflecting on whether to continue using ratings, remove ratings, or remain without ratings. While these big questions have led to successful solutions for select organizations, many others are questioning whether the investment of such a large-scale change is worth the potential impact.
Employee Performance with Ratings
Employee Performance Without Ratings
∆ = 10%
Featured
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Effect of Performance Ratings on Employee Performance
n = 9,686.Source: CEB 2016 Pay for Performance Employee Survey.
Define High-Quality, Two-Way Performance Discussions
■ What are the core drivers of effective performance conversations?
■ Do our employees and managers understand how they should be involved in core performance management activities?
Help Managers Prioritize the Right Performance Activities
■ Do we understand how managers are spending their time related to performance management? Are they prioritizing the right activities?
■ What ongoing coaching and support can we provide managers to help with this prioritization?
Hold Managers Accountable for Performance Activities and Outcomes
■ What types of performance management participation do we track? What performance outcomes could we track?
■ How should we enforce appropriate performance management participation levels?
Performance Management and Productivity
Three Key Things to Take Away from Cargill’s Practice
Cargill’s Everyday Performance Management PhilosophyCargill enabled more effective behaviors by shifting its approach from event-based interactions to more frequent conversations around expectations, feedback, and development.
Structure the conversation around personal and organizational goals so that employees are encouraged to reflect on how they fit and why they matter.
Focus on giving and seeking feedback, as well as actively listening, to encourage reflection and meaningful dialogue.
Step 1 Review current work; discuss what is working well and where the employee needs additional support. (Remember to discuss Cargill Leadership Model behaviors.)
Step 2 Discuss goal accomplishment, and ensure the link to business strategy is understood. (Remember to discuss both the what and the how.)
Step 3 Discuss barriers.
■ What is getting in the way of doing your job? ■ What is the most frustrating barrier? ■ How can I help remove barriers?
Step 4 Discuss progress being made against development goals.
Step 5 Document comments and updates in online tool or paper form.
Check-In Questions ■ What did you accomplish
this quarter?
■ What do you plan to accomplish next quarter?
■ What do you feel most proud of?
■ What was your biggest challenge?
■ What did you learn?
■ What will you do differently next time?
■ How can I help you?
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© 2016 CEB. All rights reserved. CLC5851016SYN 19
Source: Cargill; CEB analysis.
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Organizations’ talent needs are straining Recruiting’s ability to fill roles, with 81% of organizations sourcing for more specialized roles and 71% expecting candidates who match exact needs.
Recruiters Are Searching for Increasingly Specialized Needs
n = 40.Source: CEB 2015 Recruiting Agenda Poll.
n = 1,305.Source: CEB 2016 Sourcing Effectiveness Diagnostic.
Your Hiring Managers’ Requirements Don’t Match Reality
Opportunity: Reorient Hiring Needs to Expand the Labor Market OpportunityCompetition for critical talent has become increasingly fierce in recent years. In fact, 90% of the S&P 100 are competing for the same 23 roles. As this competition heats up, hiring managers are making more specific hiring requirements that are rarely, or not at all, represented in the labor market.
Most organizations have responded by expanding the number of search channels they use to find candidates for roles. Unfortunately, this approach has not worked. Instead, organizations should adjust their hiring approaches (e.g., include relevant complementary skills or industries, adapt education requirements, trade tenure for higher degree levels), which can increase the number of high-quality potential candidates generated for critical roles by 75%. 1
Recruiting
81% of Organizations Source for More
Specialized Roles Compared to
Five Years Ago
71% of Organizations
Ask Recruiters to Find Prospects
That Match All the Hiring Manager’s
Requirements
© 2016 CEB. All rights reserved. CLC5851016SYN 21
1 AssessDiscuss these questions at your next team meeting.
For CHROs ■ Why are hiring managers becoming more specific in
their hiring criteria? Does this reflect dissatisfaction with previous hires, or are required skill sets truly shifting?
For HRBPs ■ To what extent are line partners’ hiring requests
realistic? How can we encourage them to consider nontraditional talent sources, and how much resistance to this coaching are we facing?
2 PlanFind the right best practice.
For CHROs ■ See how General Mills uses talent reviews and ongoing
talent discussions to translate business goals into accurate critical roles and talent needs.
For HRBPs ■ See how select organizations collect, translate, and
disseminate competitive intelligence to help hiring managers reorient their requirements based on labor market realities.
3 ExecuteDrive and embed change.
For CHROs ■ Use the CEB Ignition™ Guide to Conducting an
Organizational Talent Review to ensure your ongoing talent needs are anchored in your business unit’s and organization’s current and future talent needs.
For HRBPs ■ Diagnose your business partners’ existing labor market
knowledge with this worksheet.
What the Best Companies Do™
Leading organizations examine the labor market opportunity (e.g., looking at the number of, demand for, and location of potential candidates) for critical roles and talent. They then adjust hiring strategies based on not just the labor market reality but also the initial internal hiring request.
To do this, organizations should:
■ Show hiring managers how additional requirements (e.g., skills, years of experience) are limiting the number of potential candidates and
■ Generate high-value, adjacent search criteria that capture more potential candidates.
Definitions
Critical TalentRoles, functions, or business units that are critical to the organization’s success
Labor Market OpportunityThe total number of people qualified for a particular role
Search ChannelsThe online or in-person locations recruiters search for potential candidates for roles
Search CriteriaThe skill, experience, education, and other requirements used to find qualified candidates for roles
Have You Considered…?
Use CEB TalentNeuron™ tools for insights on real-time talent supply and demand data to get an accurate picture of the labor market opportunity for your critical talent needs. (Additional fees apply.)
Data Source1 CEB 2016 Sourcing Effectiveness Diagnostic.
Action Plan to Maximize This Opportunity
Recruiting
Definition
Wellbeing Organization-sponsored holistic support for employees with physical, emotional/mental, and financial health
Data Sources1 CEB, “Healthier Employees, Healthier
Bottom Line,” Talent Daily, 22 January 2016, http://bit.ly/1UeXzlU.
2 Willis Towers Watson Global Staying@Work Survey 2015/2016.
3 CEB 2016 Wellbeing Function Quick Poll Report.
CEB Perspective
Wellbeing programs are often strained by ad hoc, varied delivery and a limited number of dedicated wellbeing staff.3 To overcome these challenges and scale wellbeing impact, organizations should balance an overarching vision that directs wellbeing investments with local partner involvement, translating the vision according to local needs.
What’s Next for You?
■ Listen to this webinar to help employees improve their wellbeing. ■ See how to use wellbeing as part of a broader diversity strategy in this report. ■ Develop a holistic wellbeing strategy with this CEB Ignition™ Guide.
(Additional fees apply.)
Total Rewards
Balanced Wellbeing Strategies Mean Balanced Employees
Organizations’ commitment to the value of employee wellbeing hasn’t yet translated into improved wellbeing.
In the News
Healthy employees are more productive and focused at work and have lower turnover rates and sick leave costs. 1 As a result, organizations increasingly emphasize employee wellbeing, but they struggle to find the right strategies, whether via local, improvised programs; one global, holistic strategy; or somewhere in between. 2
22 cebglobal.comcebglobal.com
Q: Is Workforce Health and Productivity a Core Component of Overall Health Strategy?
90% Yes
n = 1,669 organizations.Source: Willis Towers Watson, Global Staying@Work Survey 2015/2016, https://www.willistowerswatson.com/en/
insights/2016/03/stayingatwork-report-employee-health-and-business-success.
Identify Elements of the Wellbeing Strategy
■ What are the core elements of our wellbeing strategy that we need to reflect globally, and what elements can we adapt?
■ How do local, specific wellbeing needs change in different locations?
Set Standards for Wellbeing Customization
■ How can we monitor local program designs to ensure their adherence to our global standards?
■ What implementation guidance can we provide that allows for the necessary local flexibility?
Provide Ongoing Wellbeing Coaching
■ Is our wellbeing program communication being managed and delivered through the right individuals and channels?
■ Do employees understand how wellbeing programs fit in our strategy?
Total Rewards
Three Key Things to Take Away from Tau Company’s Practice
Tau Company’s 4 Local Wellness ToolkitsTau Company provides step-by-step guidance to local wellbeing teams to support the creation of locally tailored yet globally consistent wellbeing environments.
LocationLocal Considerations Path Type
Corporate Headquarters
Training center with lodging facility
Created a new walking path around outside of the facility
Florida Pleasant weather, dispersed campus
Used existing sidewalks to create a walking path
Georgia Large manufacturing facility
Created walking path around the inside of the facility
Maryland Suburban setting conducive to walking
Used mapping technology to create an outdoor path in adjoining scenic area
Quality Certification and Sign-Off: Each location’s implementation of a toolkit is reviewed and officially approved by the corporate team to ensure compliance and some general consistency across the Tau Wellness Now program.
Required Attributes
� Carpeted or Painted Flooring � …
Strongly Recommended Attributes � Rubber Treading � ....
Suggested Attributes � Music � ...
© 2016 CEB. All rights reserved. CLC5851016SYN 23
Determining the Extent of Location-Specific Customization Permitted
Addressing Variations in Physical LayoutsTypes of Walking Paths Created at Four Locations
Source: CEB 2016 Change Management Head of Function Survey.
4 Pseudonym.
THE CHRO INSIGHT SERIES
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