ROI of Talent Management

Presented by:

Maan HamdanCEO

Agenda

Who

What

Where

When

Why

How

is talent management?

are the benefits within each solution?

should my organization make this investment?

do you use to measure ROI?

is the right time to implement a TMS?

do I begin my search for the right TMS provider?

Description of Talent Management

Who does what, when,

and how

Examples: • Job descriptions• Talent Profile of

employees• Core/job

competencies • Skills list, etc.

Systems to:(1) Automate

processes(2) Store content

(3) Provide analytics

Technology

Content/DataProcess

Unified Talent Management dB

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Skill

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Talent Management Steps

Go back to step

3

Establish process

Train team

Implement technology

Train team

Collect data

Train team

Review analytics

Train team

Modify process (as needed)

Train team

Who is Talent Management?

As a business executive or an HR professional, you know the ability to present a robust business case, while simultaneously demonstrating value from talent is pivotal to the success of your organization.

Implementing a talent management solution is simply a tool to better help YOU manage your talent.

Talent management is not a what, it is a who. And the who is,

you

But don’t just take our word for it….

Organizations with superior talent management practices generate 26% higher revenue per employee, 40% lower turnover among high potential employees and 29% higher employee engagement than their peers.

Deloitte 2013

20%

23%

77%

Average increase in employee productivity.

Increase in overall market capitalization.

84%

Clients experiencing margin improvements.

Clients experiencing revenue growth.

By the NumbersBy the Numbers

What do you use to measure ROI?

There are 3 Focus Areas worth measuring, once you have implemented your talent management solution:

Human CapitalAre you retaining more of your high quality people?Are you seeing higher productivity per employee?

Do you see improved customer service relationship skills?

Business Performance

Are you noticing more revenues?Do you see a higher overall profit?

Do you see higher customer satisfaction ratings?Is there an increase in customer numbers?

Are you noticing more repeat business?

Financial Success

Business Insights with Talent Management

To obtain the information needed to measure those 3 Focus Areas, you can choose to become

eitherfrustrated

or

automatedWhen you unify your talent practices with a talent

management solution, you can spend less time collecting and checking for accuracy and more time

analyzing the meaning of your talent data.

With the help of technology, you can effectively convey valuable business insights, while also tracking

and measuring talent ROI.

Retention/Attrition

Performance ratings

Percentage of “high potentials”

Engagement scores

Career progression

Succession ratios

HR Metrics

Benefits of a Talent solution?

Recruiting&

Staffing

Employee Performance Managemen

t

Learning Managemen

t

Career Development & Succession

Planning

Compensation

Within a Unified talent management solution, there are

different areas that require attention. Each will add value by

itself, and the value of a total solution is worth much more than

the sum of the parts.

ROI – Recruiting & Staffing

Great people are the foundation of your business; you need to attract and hire top talent

ROI of Effective Recruitment

Implement recruiting WORKFLOWS that are tailor made to the type of position and job requirements

Use web and SOCIAL MEDIA recruiting to widen your search area and to capture highly qualified applicants, and focus on your company recruiting brand

Create more effective SOURCING programs by reproducing and utilizing the talent profiles of the highest performing employees

Create effective WORKFORCE PLANNING processes by considering both internal and external talent pools in your efforts

ROI of Effective Recruitment

REPORTS create insights into which channels are the most cost effective, enabling recruiters to invest only in the sources where results are achieved

Focus on the MORE-QUALIFIED APPLICANTS (as determined by screening questions, assessments, etc) which leads to better hires

Implement ON-BOARDING programs to get employees trained and productive faster

Use REFERRAL PROGRAMS to involve the employees, partners, and clients in finding your next best candidate

83%

75%

50%

By the Numbers

Reduction in the time required to post new positions.

Increase in qualified candidates per open position.

Increase in hiring manager satisfaction based on the quality of resumes submitted.

EDG, Inc.. Case Study: Applicant Tracking (October 2013)

ROI of Performance

Companies and people perform

better when their goals are aligned,

performance is measured, and

success is rewarded.

Classic Performance Management

… is a series of distinct annual steps that occur outside the day-to-day manager-employee relationship.

• Goals are set and rarely updated to reflect reality

• Performance feedback is given infrequently and inconsistently

• The criteria for performance are unclear, and

• Employees have little understanding of their performance to date

Does not work well…

Modern Performance Management

…. is less focused on assessment and more focused on coaching and development

• Goal-setting and ongoing discussion of goals

• Regular managing and coaching

• Development planning as a part of regular check-ins

• Rewarding and recognizing that occur on a daily, weekly, monthly, and yearly basis

• Managers perform ongoing assessment of performance

• Faster actions, corrections, and better results

Great Demonstrated Results…

Impact on Business Value

ROI of Performance

Seamlessly ALIGN talent programs with measurable business goals. This, in turn, helps you measure employees impact, which is key for your continued investment in talent.

Skills and competencies ASSESSMENTS are part of the review process which then is unified into the overall employee evaluation

Customizable WORKFLOWS can be configured to fit any existing performance processes within any organization, and frequent evaluations

Gain a clearer picture of your TALENT POOLS’ skills and abilities— or lack thereof, and act fast to improve the situation

67%

75%

78%

By the Numbers

Reduction in the time required to prepare for an employee evaluation.

Reduction in the amount of time required to conduct the employee evaluation.

Improvement in departmental compliance in meeting evaluation deadlines.

EDG, Inc.. Case Study: Employee Performance (October 2013)

ROI of Learning & Development

Learning is not something that ends with college. College is just the door that we use to enter into the world of education and continuous learning, which in turn

leads to development and growth.

Isn’t it telling that the more one knows, the more one realizes there is so much to

learn.

Continuous Learning Model

Did you Know that…

On average 70% of learning occurs outside formal programs

The Continuous Learning Landscape

• Greater retention of Knowledge

• Development of new Skills

• Agility – information at the moment of need

• Adaptability – small bite-size training, in various ways

• Learner responsibility – Employees are expected to take an active role in their own development

… creates significant value added to an organization’s Human Capital

Implementing Continuous Learning

… is contingent on organizations developing a learning architecture

• Solutions. High-impact learning organizations take a “solution” approach—instead of a programmatic approach—to learning, synthesizing all relevant learning elements to offer complete solutions that meet business needs.

• Core processes. These are the processes that are essential to the functioning of L&D. Common examples include performance consulting, design and development, content development, communication and internal marketing, and support.

• Disciplines. The skills that an L&D organization needs to function are its disciplines. Generally, these include elements such as instructional design, project management and content development.

• Tools and technology. These are the tools and utilities required to both create and consume training within an organization.

ROI of Learning & Development

Monitoring competency assessments through a talent management system allows you to then use your ANALYTICS to show if the investment in training certain areas are resulting in fewer gaps and increased performance for individuals or teams of employees

It is essential that you know what SKILLS AND COMPETENCIES exist within your organization and if these will support your company’s future strategy

PROGRESSION planning made easy with continued evaluations linked back to skills and competencies

Effectively track the learning and development of your employee through a TOTAL TALENT PROFILE – this part of the system allows you to view a complete overview of the employee lifecycle quickly and easily

ROI of Career Development and Succession Planning

Correctly placing talent secures both the individuals and

organizations future growth and performance.

Succession Planning

C-Level

Associate

Supervisor

Manager

Director

Vice President

Entry LevelTime to Productivity

Knowledge Gap

Time & Cost to Fill

Disruption to Organization

The Domino EffectLeaves

organization

Hired

Entry Level

Director

VP

Supervisor

Associate

Manager

Associate

Supervisor

Manager

Director

Vice President

Entry Level

ExperienceLevel

Importance of Alignment of Employee Talents & Organization Needs

Career Development Process

Know your team

Understand the gaps

Know you competencies

Communicate to Employees

Create development plans to close gaps

Assess and provide regular feedback

Evaluate progress

1

2

3

4

5

6

7

Know Your Team

Know Your Team

Know Your Team

Know your Competencies

Understand the Gaps

Create Development Plans to Close Gaps

ROI of Career Development

With a talent management system, you can utilize a powerful ANALYTICS tool to assess key indicators of your organizational health such as bench strengths and areas of risk

Optimize configurable talent grids such as 9-BOX grids supported with comprehensive workflows for calibration

Avoid external hiring costs by easily identifying high performing INTERNAL TALENT and matching them to specific vacancies

Automated SUCCESSION scenarios, Domino Lists and career paths provide early identification and adaptable career plans to easily meet your employees professional preferences

Lack of Reports = Partial Intelligence

… and that leads to bad decisions

Sample Reporting Dashboard

VACUUM

Decision Support Reporting

isibility

ccountability

ompliance

ser Self Service

nified Reporting

easurement Metrics

Data, Information, Knowledge, Wisdom

Understanding

Con

necte

dn

ess

Data

Information

Knowledge

Wisdom

Understanding

Relations

Understanding

Patterns

Understanding

Principles

What Happened

What’s Happening

What’s GoingTo Happen!

Benefits of Mature Analytics Organizations

Source: Bersin by Deloitte, 2013

Mature analytics organizations are:

2x more likely to improve their recruiting efforts

2x more likely to improve their leadership pipelines

3x more likely to realize cost reductions/efficiency gains

2.5x more likely to improve talent mobility – moving the right people into the right jobs

When is the right time to implement?

NOW

Let’s face it, accurate information is vital to improving the performance of talent initiatives. Without it decisions are

based solely on instinct or opinion, which can be damaging to the success of your organization.

Unifying talent processes by offering all processes on the same platform with a single, shared database provides an

organization with comprehensive and precise intelligence, in real-time.

Why should my organization make this investment?

Ask yourself…

Who are my top performers?

How aligned is our talent to the overall business goals of the organization?

What risks do I face if our top talent’s performance goes unrecognized and are not engaged?

When it comes to the things that matter and/or drive the business, how focused is our talent?

Is our talent aware of all internal development and growth opportunities?

Questions