This presentation shares findings of a joint research paper by Human Capital Institute and Taleo.

1. THE BUSINESS IMPACT OF
TALENT INTELLIGENCE
Join the Conversation!
• On Twitter: #TaleoTalent David Wilkins
• In Twitter or Twitter client, search for VP, Taleo Research
#TaleoTalent. @dwilkinsnh
• When you comment, add TaleoTalent @TaleoResearch
so everyone can see it.

2. YOUR PRESENTERS
› David Wilkins, VP Taleo Research
› David Wilkins has been a workplace thought leader for more than
15 years, pioneering innovative approaches in employee
productivity and performance, recruiting and retention, and
communications. As Vice President of Taleo Research, David is
responsible for primary and secondary research in the talent
management and broader HR space.
› Amy Lewis, Practice Leader for Talent Strategy and Talent
Acquisition, HCS

3. AGENDA
› 2010 & 2011 studies
› What is talent intelligence?
› Review of survey findings
› Recommendations
› Q&A

4. 2010 STUDY
› Significant gaps between level of importance of talent data
and access
› Focused on efficiency rather than effectiveness
› Not measuring the metrics that matter

5. 2011 STUDY
Key questions to answer:
› What are the financial benefits of using TI?
› What are some common TI practices?
› What metrics are used and what metrics need to be
developed?
› What are the barriers to adopting TI systems and how
have they been overcome?

6. WHAT IS TALENT INTELLIGENCE?
Talent intelligence is the ability to capture
meaningful information on company talent
in order to help managers gain more insight
and make better business decisions faster.

7. DPOS VERSUS DDOS
Data Proficient Organizations (DPOs):
How much do you agree that your
Those organizations that agree they are
organization is proficient at analyzing
proficient at analyzing workforce data
workforce data? How satisfied are your
AND their business leaders are satisfied
business leaders with the data that is
with the workforce data provided to them.
provided to them?
Data Deficient Organizations (DDOs):
Those organizations that disagree they
are proficient at analyzing workforce data
AND/OR their business leaders are not
satisfied with the workforce data provided
to them.

8. HR SATISFACTION
› How much do you agree with this statement: HR uses workforce metrics to
demonstrate its contribution to your organization’s business goals and strategy.
› How satisfied are you with your organization’s ability to analyze and make
connections between recruiting and retention?
DPOs DDOs
Agree HR uses workforce metrics to demonstrate its contribution to your
94% 50%
organization's business goals and strategy
Satisfied with organization’s ability to analyze and make connections
78% 20%
between recruiting and retention

9. BENEFITS
Higher productivity and innovation resulting from
the right people in the right roles 78%
More efficient and effective hiring resulting from
better identification of required profiles 73%
Greater organizational agility created by more
awareness of talent gaps and strengths 70%
Improved engagement levels tied to job fit and better
overall alignment between individual contributions 68%
Better partnership and communication aided by a stronger
connection between business planning and talent planning 66%
Reduced turnover results from better hiring and improved fit
64%
Higher levels of business continuity driven by improved
succession planning 59%
Increase flexibility in business response aided by short-
and long- term workforce planning 59%
How important are the following benefits to your 0% 25 50if you had
organization, 75 100
greater access to robust talent data and related insight and% % %
% analytics?
Percentage Very Important

10. BENEFITS
Higher productivity and innovation resulting from
the right people in the right roles 78% ROI of employee development 73%
More efficient and effective hiring resulting from
73% Revenue per employee 60%
better identification of required profiles
Greater organizational agility created by more
70% Profitability 58%
awareness of talent gaps and strengths
Improved engagement levels tied to job fit and better Cost per hire 56%
overall alignment between individual contributions 68%
Better partnership and communication aided by a stronger HR spend per employee 46%
connection between business planning and talent planning 66%
45%
Reduced turnover results from better hiring and improved fit Cost of training
64%
Higher levels of business continuity driven by improved 42%
Sourcing cost
succession planning 59%
Increase flexibility in business response aided by short- 14%
Stock value
and long- term workforce planning 59%
0% 25% 50% 75% 100
How important are the following benefits to your 0% 25 50if you had
organization, 75 100 Which of the following financial metrics would be %
greater access to robust talent data and related insight and% % %
% analytics? positively impacted by leveraging more robust
Percentage Very Important talent insights?

11. TOP AND BOTTOM METRICS

12. TOP AND BOTTOM METRICS

13. IMPORTANCE AND ACCESS
› 37 key metrics from around the talent lifecycle
› How important is this data? Are you able to access it and is it
reliable?
– Workforce data
– Sourcing, onboarding talent
– Learning and development
– Succession planning and talent mobility
– Performance management and compensation

14. WORKFORCE DATA - DDO

15. WORKFORCE DATA - DPO

16. WORKFORCE DATA - DPO

17. WORKFORCE DATA - DPO
Over Investment
Under Investment

18. SOURCING AND ONBOARDING

19. SOURCING AND ONBOARDING

20. SOURCING AND ONBOARDING

21. SOURCING AND ONBOARDING

22. SOURCING AND ONBOARDING

23. LEARNING AND DEVELOPMENT

24. LEARNING AND DEVELOPMENT

25. PERFORMANCE MANAGEMENT AND COMPENSATION

26. PERFORMANCE MANAGEMENT AND COMPENSATION

27. SUCCESSION AND TALENT MOBILITY

28. SUCCESSION AND TALENT MOBILITY

29. TOP PERFORMER AND HI-PO DATA IS UGLY
› 80% of companies don’t know who is a flight risk.
› 78% of companies don’t know who is on a succession plan.
› 80% of companies don’t know who has a career path.
› 65% of companies don’t know much about who they’re retaining.
› 84% of companies don’t if their development plans are working.
› 65% of companies don’t know much about Hi-Po’s.

30. 2010 VS. 2011: AVERAGE DIFFERENCES? NOT MUCH
Competency/skills gap analysis
Top performers with NO career path
Risk of loss for critical employees/positions
Top Performers NOT on succession plans
Succession Bench Strength
Performance Plans Aligned to Goals
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Important or Very Important Access to Reliable Data
Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010

31. 2010 VS. 2011: AVERAGE DIFFERENCES? NOT MUCH
Competency/skills gap analysis
Top performers with NO career path
Risk of loss for critical employees/positions
Top Performers NOT on succession plans
Succession Bench Strength
Performance Plans Aligned to Goals
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Important or Very Important Access to Reliable Data
Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010

32. 2010 VS. 2011 DIFFERENCES? MORE NUANCED ANALYSIS
Competency/skills gap analysis
Top performers with NO career path
Risk of loss for critical employees/positions
Top Performers NOT on succession plans
Succession Bench Strength
Performance Plans Aligned to Goals
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Important or Very Important Access to Reliable Data
Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010

33. DPO VS. DDO IMPORTANCE METRICS CAN BE BIG
Importance
› Critical Roles with No Identified Successors 23%
› Top Performers without a Career Path 21%
› % of Development Plans Aligned to Goals 23%
› Best Sources of Talent 22%
› Average Time to Hire for Critical Roles 19%
› Employee Engagement 27%
› Competency Skill Gaps 20%
› Productivity 21%
› High Potentials by Department 19%

34. DPO VS. DDO IMPORTANCE METRICS CAN BE BIG
Importance Reliable Access
› Critical Roles with No Identified Successors 23% 28%
› Top Performers without a Career Path 21% 23%
› % of Development Plans Aligned to Goals 23% 24%
› Best Sources of Talent 22% 26%
› Average Time to Hire for Critical Roles 19% 28%
› Employee Engagement 27% 22%
› Competency Skill Gaps 20% 23%
› Productivity 21% 23%
› High Potentials by Department 19% 26%

35. DPO VS. DDO IMPORTANCE METRICS CAN BE BIG
Importance Reliable Access
› Critical Roles with No Identified Successors 23% 28%
› Top Performers without a Career Path 21% 23%
› % of Development Plans Aligned to Goals 23% 24%
› Best Sources of Talent 22% 26%
› Average Time to Hire for Critical Roles 19% 28%
› Employee Engagement 27% 22%
› Competency Skill Gaps 20% 23%
› Productivity 21% 23%
› High Potentials by Department 19% 26%

36. FINANCIAL PERFORMANCE

37. INTANGIBLES: 80% AND GROWING
Source: Deloitte, “Extracting Maximum Value from Intangible Assets”

38. INTANGIBLES: 80% AND GROWING
Source: Deloitte, “Extracting Maximum Value from Intangible Assets”

39. RANKING OF BARRIERS
DDOs DPOs
1. Lack of analytic skill 1. Already have a system
2. Already have a system 2. Lack of analytic skill
3. Lack of executive support 3. Lack of tools
4. Cost 4. Cost
5. Lack of tools 5. Lack of executive support

40. SUMMARY & CONCLUSIONS
› On average, not much movement from 2010
– Companies still don’t know measure strategic TM
– Over investment in tactical data, under in strategic
› If other functions in the business knew as little about their core
asset, those leaders would be fired
› Some companies are beginning to do things differently
› Those companies are outperforming peers on key financials
› As an industry, we need to get serious about talent intelligence
– Shift to knowledge work requires it
– Competitive pressures demand it
– War for Talent never went away and it’s going to get worse fast