Talent Management Needs Improvement

Talent Management Needs Improvement

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Insights from Betterworks Research

Managers Say Their

Your business needs to grow and innovate

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Your workforce is your company’s single largest expense

3Paycor

70%...and its largest asset

https://www.paycor.com/resource-center/a-closer-look-at-labor-costs

Improving productivity comes down to how businesses organize, develop and align people at work

Deloitte’s Global Capital Trends - 2017

Pro

du

ctiv

ity

Time

Business productivity

Technology change

Gap in productivity

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https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/central-europe/ce-global-human-capital-trends.pdf

of HR pros agree there is solid evidence linking employee engagement to performance

5HR.com: State of Employee Engagement 2019

90%

https://www.hr.com/en/resources/free_research_white_papers/hrcom-the-state-of-employee-engagement-may-2019_jwb9ckus.html

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Gartner: Get Ready for the Convergence of Employee Performance and Engagement

Gartner is predicting the convergence of Employee Performance and Engagement

Goal Management

Frequent coaching sessions

Social feedback and recognition

https://www.gartner.com/doc/reprints?id=1-6DLXHIC&ct=190316&st=sb

https://www.gartner.com/doc/reprints?id=1-6DLXHIC&ct=190316&st=sb

You need a workforce who:

Is Agile, Aligned and Working on What Matters

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Less than half of managers feel good about the state of goals setting and alignment

Just 41% said that “all of the people at their business had a clear understanding of the company’s mission and vision”

Just 40% said that “corporate, departmental and team goals are transparent and shared openly at all levels of the organization”

Just 42% have a way to measure goal alignment on an ongoing basis

Just 38% said their organization communicate goals and priorities very clearly so every employee knows what they are accountable for

41% 40% 42% 38%

Betterworks Research: Managers Say Their Talent Management Needs Improvement

https://www.betterworks.com/talent-management-needs-improvement/

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MIT Sloan: With Goals, FAST beats SMART

Specific, ambitious goals lift individuals and teams to elite performance levels

https://content.betterworks.com/with-goals-fast-beats-smart

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Effective Performance Management starts with Agile Alignment to Top Priorities

Source: Betterworks 2018 State of Continuous Performance Management

Aligning everyone’s goals is critical to business growth

Cross functional goal visibility allows teams to work more

effectively together

Cross functional goal alignment is critical for

business growth

In my company, our priorities can change quickly and it is

important that we quickly re-align

% S

tro

ngl

y A

gree

< 1,000 Employees 1,000 > Employees < 1,000 Employees 1,000 > Employees < 1,000 Employees 1,000 > Employees < 1,000 Employees 1,000 > Employees

50% 62% 51% 64% 49% 59% 42% 55%

Larger enterprises need this alignment more

91%agree employee performance is enhanced when employees and managers create goals together

82%agree team members who have more frequent conversations with their managers perform better

89%agree goal alignment requires conversations between managers and employees

More Conversation is Necessary

11Source: Betterworks 2018 State of Continuous Performance Management


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Is always Improving

Managers just aren’t having these important conversations

have regular discussions with employees about their career growth and aspirations

Only 43% are “held accountable for developing their people”

37% 43%



There is a huge disconnect at the top...

People managers are held accountable for developing their people

Senior Leaders

First line% Strongly Agree:

51% 37%



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McKinsey: Harness the Power of Performance Management

68% say on-going coaching and feedback has the most positive impact on individual performance

https://www.mckinsey.com/business-functions/organization/our-insights/harnessing-the-power-of-performance-management


Is getting and giving peer feedback and social recognition

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Source: Deloitte Human Capital Trends 2019

31% operate almost wholly in teams while 65% perform some of their work in teams

https://www2.deloitte.com/insights/us/en/focus/human-capital-trends.html

Your Workforce Needs:

Alignment Progress Development Recognition

Everyone’s work is agily aligned to the company’s top priorities for sense of purpose

Progress is encouraged through check-ins and regular coaching and feedback

Personal development is prioritized with a focus on building skills for the future

Business impact is recognized and rewarded by their peers and managers

Intuitive, seamless and social

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Continuous because engagement isn’t a one time event

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Companies with continuous performance management...

... outperform on their company’s top goals

+50%higher than companies with annual programs

Source: Betterworks State of Continuous Performance Management 2019-2020

+26% effectively communicate goals

+23% align workforce to top priorities

... communicate priorities and align their workforce better


+32% better able to communicate progress toward those goals

... effectively staff cross functional teams

+42% staffing the cross functional teams to address top priorities


... effectively communicate progress toward goals

+32% effectively communicate progress toward goals


... successfully hold individuals and teams accountable


+42% hold individuals accountable

+34% hold teams accountable

... are more agile and solve problems more creatively


+36% agile and adapt to changing business req

+35% able to solve problems creatively

... attract and retain top talent more effectively


+39% attracting top talent

+44% retaining top talent

... develop the entire workforce at every level


+40%developing the workforce at every level

... develop better people managers


+44% supported by HR to become a better manager

+50% HR supports them in managing the performance of their team

+40% say their HR teams are “excellent”

Your continuous performance program creates the employee experience that sustains an engaged workforce

30

Continuous performance management is not doing the same heavy, annual process more often

31

Continuous performance management is a guided cycle of lightweight conversations

32

HR agrees managers have an outsized role in retaining top talent

86%Agree that team members who have more conversations with managers are more likely to stay with the organization.

90%Agree team members need to feel comfortable about talking with managers about both work and life.

Source: Betterworks 2018 State of Continuous Performance Management 33

Managers also recognize their relationship with team members is important

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72% 88%Know their team wants to be able to talk with them about both work and life

agree their relationship with a direct report has a direct impact on the employee’s performance


Trust is Needed Between Managers and Employees

HR agree team members

need a positive relationship

with manager

92%


of HR pros rate their managers as average or worse at giving quality feedback and delivering it at the right frequency


50%

Managers Struggle To Provide Feedback

89%agree their boss would say they do a good job coaching or mentoring

76%agree are confident that they know how to best coach their team

87%agree with the statement, “I am a good coach”

Managers give themselves high marks as managers

37

And the bigger the team the manager has, the higher marks they give themselves


HR Pros disagree...

38

Just

27%Strongly agree their managers do a good job coaching and developing their teams

29%Strongly agree their managers know how to best coach their team

29%Strongly agree employees find their manager’s coaching and feedback helpful

32%Strongly agree employees all have development plans


#motivateyourworkforce

Betterworks is the complete solution for Continuous Performance Management

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Calibration, Succession, Promotion

Productivity

Engagement

Career Growth

Culture

Insights

Goals/OKRs

Conversations

Social Recognition

Confidential HR Questions

Competency Assessments

Feedback

Betterworks powers your unique continuous performance program so it delivers needed business results

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Intuitive and seamless

HRISProductivity/Communications

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With You Every Step of the Way

100% invested in the your program’s success

Best practices for program design and roll out

Customized for your unique organization

Industry leadership and innovation

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Josh BersinGlobal industry analyst;Dean, Josh Bersin Academyand Betterworks Board of Directors

How people work within and for enterprises is evolving quickly and growing ever more complex. Organizations of all sizes and industries need to uplevel their talent and performance management practices in order to remain competitive.

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#motivateyourworkforce

QUESTIONS?

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Tech is necessary for effective continuous performance management

Source: Betterworks State of Continuous Performance Management 2018

Less than ½ of HR pros are using tech for their performance management

In companies with continuous performance programs, HR asks for more from their performance management technology


Able to be configured to for their company’s unique needs (+58%)

Seamless for employees -- in the flow of work (+75%)

Help with program design (+74%)

Help with training (+38%)

Help with change management (+34%)

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Source: Deloitte Human Capital Trends 2019

On Internal Mobility: more than 50% thought employees would have an easier time finding a new job with a new employer than within their current organization

https://www2.deloitte.com/insights/us/en/focus/human-capital-trends.html