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

GET READY FOR 2014:
SOLVE THE TALENT
MANAGEMENT EQUATION
WITH JOB
COMPETENCIES
To us, business is personal

Gordon Ritchie, October 2013

AGENDA
•

Introduction

•

Challenges in defining talent management

•

Elements in the talent management equation

•

How a job competency framework can balance the two sides of the
equation

•

3 steps to implementing a framework to making sense of the data

•

Conclusion
– Questions,
– Next steps

© 2012 Kenexa Corporation

4

CHALLENGES IN DEFINING
TALENT MANAGEMENT

WORKFORCE
MANAGEMENT
SEE ANY
SIMILARITIES?
“We’re not gonna compete with teams that have
big budgets.”
“We’re gonna work within the constraints that we
have and you’re 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

6

Billy Beane’s
mission was to
field and reward a
team that can win
against richer
competitors.

Isn’t that what we need to do as well?
2012

7

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 2013


8

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


9

POLLING QUESTION 1
ANSWERS


10

WHAT ARE YOU MEASURING FOR
RESULTS?
How does your HR group measure
success?

How does your business
measure success?

1. %ge review forms complete

•

Revenue

2. Onboarding complete

•

Customer retention

3. Cost per hire

•

Profit

4. Hours of learning delivered

•

Gross Margin

5. Compensation plan increase

•

EBITDA

6. Staff turnover

•

EBITDA Per Employee

7. Staff tenure

•

Share price

8. Employee engagement

•

EPS

A+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?

11

ELEMENTS IN THE
TALENT MANAGEMENT
EQUATION

DEFINING A ROLE WE NEED
PERFORMED
•

Job Descriptions

•

Resumes

•

LinkedIn profiles

•

Social profiles

•

Experience

•

Time served

•

Self reported

•

Assessments
– Cultural, Leadership,
Succession,

•

Performance ratings

Business
Results

Performance Management,
Coaching, Goal Setting,
Assessment, Succession Planning
Employee Development, Advancement,
Compensation Planning, Affiliation and
Engagement

Unified
Talent
Profile?

Job Descriptions, Job Value
and Competencies
2012

13

Business
Results

Job Descriptions, Market Data and Competencies

14

TALENT ANALYTICS: BIG
DATA CUBE
Data in:

Compensation

Function

Job Level

Core Competencies

• Disconnected TM tools
• Disconnected processes
• Incumbents
• Candidate
• Self/360/test/SJT
• Performance Appraisals
• Compensation Plans
• Engagement Surveys
• Development plans

Functional Competencies

Job Profile

15

IF YOU WANT IT, YOU CAN
FIND IT
• Social
• Cloud

System of record…
• HRIS, ATS, LMS,

• Mobile
• Crowd sourced

Analytics tools

• Structured/Unstructured

• Excel

• Best of breed vs integrated suite

•

• Performance

• Custom/config/off the shelf

•

• Compensation
survey planning

• Access
• Word

ONLY AS GOOD AS THE DATA THAT’S
• Assessments
IN THERE.
Etc,…
OLD DATA CAN BE WORSE THAN NO
DATA


16

ELEMENTS IN THE
EQUATION

TALENT


+

SKILLS

x

CULTURAL
FIT

=

PERFORMANCE

17

IT’S 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 don’t
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.

18

WHY COMPETENCIES ARE
IMPORTANT.
Internal challenges to address via assessments

All Organisations
37%

Weak or limited leadership pipeline

36%

Consistency in employee competence
31%

Excessive first year turnover among new hires

“The number one strategy used by best in class
companies was to develop a competency
framework.”
30%

Lack of skills to meet organizational needs

0%

Impact of Assessments
in Talent Management

5%

10%

15%

20%

25%

30%

35%

40%

8%

Employee performance

18%
2%

Quality of hire

17%
Employee productivity

0%

-10%

0%

7%

14%
Not Using Assessments

Overall turnover

Using Assessments

Recruiting costs

-12%
-15%

-10%

-5%

0%

5%

10%

15%

20%

Source: Aberdeen 2009 Study; Assessments in Talent Management

19

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 That’s the equivalent of 10 new
staff members.


20

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.


21

THE RESULTS ON THE RIGHT
HAND SIDE…
What did you put on your SEC 10K or Annual report?
Succession

• Acquiring
Talent

• Engaging
Talent

Cost of a poor
hire:
$300K-$500K

Cost of losing a
talented
employee:
$250K-$500K

Expense
management

• Retaining
Talent

Sales results

Operational
efficiency rate
due to poor
employee
engagement:
30%

Value of a top
performer: 2-4X
performance of
average
employees

• Evaluating
Talent

Competitive
product
results

These numbers are consolidation of numbers from the HCI.

22

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
process

Budget
Too difficult to
Constraints
define
competencies

Too many
jobs

Lack of
executive
support

Source: Competencies, Compensation and
Technology Luncheons.- 2012
2012

23

STANDARDIZING THE
FORMULA WITH A
COMPETENCY FRAMEWORK

“COMPETENCIES ARE THE CURRENCY OF
TALENT MANAGEMENT” JOSH BERSIN, 2007

But as soon as I say “competency”, you hear…
•

Core

•

Time consuming

•

Leadership

•

Hard to do

•

Functional

•

Hard to prove ROI

•

Technical

•

No impact

•

Behavioural

•

Tried it

•

Traits

•

Tried it again,

•

CARS

•

Done them

•

BARS

•

Someone else did some too

•

Proficiency levels

•

Too HR

•

Assessment

•

Not important or relevant

•

Fewer = easier


25

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 admission

Leadership competencies

=

developing the future

Functional competencies

=

executing as a team

Technical competencies

=

impacting performance of the
organization today.


26

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
Management

Learning
Needs
Analysis

Functional Job &
Competency
Framework

Using a Job Competency Framework

Risk
Analysis

Compensation

provides a Clear, Common and Consistent
language for Talent Management.
It connects processes and enables integration across
HRIS and Talent Management investments, already made.


Resource
Planning

Recruitment
& Selection

27

ITS ABOUT ALIGNING THE JOB
NEEDED TO THE JOB DONE
Functional Job
Analysis

Outcomes
Research

•
•
•
•
•

•
•
•
•
•

Library
Custom
Professional
3rd party
Business results

Assessment
Survey
Compensation
Performance
Core High
Performance
Behaviors

Application
•
•
•
•
•
•
•
•
•

Performance
Pre-hire
Post hire
Development
Engagement
Succession (tactical)
Succession (Executive)
Compensation
Workforce capability

•

=

•
•
•

HR Impact and
respect
Employee job
satisfaction
Operational success
Business results

Kenexa definition of Competency is a combination of knowledge, skills and
abilities (KSA) describing the demonstrable indicators of proficiency.
Core Competencies

=

price of admission

Leadership competencies

=

develop the future management line of succession

Functional competencies

=

execute as a team and ensure operational succession

Technical competencies

=

impact performance of the organization today.


28

THE KENEXA JOB MODEL
Matrix
Job Function
6 Job Levels
(IC, Supervisor,
Manager, etc)
Primary Job Focus
(tech, Prof, Admin,
Mgmt, etc)


Job Description
–
–
–
–
–

Code
Title
Summary
Responsibilities
Compensation

Competencies (KSA’s)

(Core, Leadership, Functional and Technical)

– Definition
– 4 Proficiency Levels

• Behavior statements by level
• Target Proficiency level

– Application Accelerators

Learning References
Development Statements
Coaching Tips
Performance Rating Writing
Assistants
• Interview Questions
•
•
•
•

29

WORKING ACROSS
ORGANIZATIONAL LEVELS

1. Identify Levels within
Organization using job bands
2. Define the scope of
responsibility in each Level


30

Sales Representative, Snr

Target proficiency levels
Benchmark expectations
Provide complete view of the job.
Identify key candidates
Help organizations focus on who they
need.


31

Interview Questions aligned to the competencies aligned to the job.
Enable consistent selection over time for positions.
Improve the tools in interviewers hands


32

SMART Goals: Both Quantitative, and Qualitative
Consistent, clear and customizable
Engage new employees in onboarding and longer term objectives.


33

Help Coaches step back from “Unconscious Competence”
Help apprentices have a focal point, not football or weather.
Focus productive relationship focused on the behaviours and experiences that
need to be shared.

34

PERFORMANCE over time, not just proficiency: 1 = Bad, 5 = Good.
Granular feedback, that is not provided if I don’t have time, or can’t think of how
to write a politically correct, defensible statement.
Focus on key areas and Recognize skills being performed.

35

Multiple Learning Styles: OJT, Professional Curriculum, In-house SOP, etc.
Mapped to specific competencies
Customizable.
External learning catalogue mapping.


36

Behavioral, Demonstrable, Observable levels of proficiency setting clear
expectations or what good looks like.
Set expectations for Onboarding. Critical in accelerating time to performance in a
job.
Basis for Skills Gap analysis
Foundation for “big data” formula for analysis in HR that drives business impact.


37

WHERE YOU CAN APPLY IT
Where it helps How it helps

What you need

Attracting
candidates

Set expectations of who will be successful
in the job beyond a job description

Demonstrable behaviours of what you
expect

Hiring Decisions

Smarter hiring decisions based on
capability to do the job

Interview questions tied to the
competency behaviours required

Onboarding

Improve chance of success and retention
with accelerated time to productivity

Demonstrable expectations of what good
looks like

Managing

Skill focused coaching tips, SMART goals,
Support managers development
discussions with tools to improve trust and and extended expectations for growth
impact.

Engagement

Provide clear view of portable/mobile
skills to engage the engageable.

Reusable competencies across roles,
levels and functions to provide skills
based career matrix.

Performance
Management

Provide job specific performance criteria
for evaluation and contribution.

Job specific competencies and expected
levels of demonstrable behaviour

Development

Drive up learning as its easier to find
content in your LMS

Learning catalogue mapped to
competencies

Compensation
Planning

Understand the jobs you are matching
beyond just the salary survey job title.

Match jobs based on skills, tied to
excellence as performance to pay.

38

3 STEPS TO
IMPLEMENTING A
STANDARDS FRAMEWORK
and help you, help your business solve the
TM puzzles

3 KEY STEPS
1. Start with an existing Job Competency Framework
2. Don’t get it perfect. Get it out there.
3. Engage with managers on workers on how to use it


40

COMPETENCY IMPLEMENTATION BEST
PRACTICES
Model Building
• Ensure linkage between competencies and organization strategies
• Keep models simple at launch
• Add dimensional criteria and keep the momentum
• Start with a library or Competency Framework
Applications
• Focus on assessment and development first, then evaluation and pay applications
• Integrate of the competencies with all processes, even if tools aren’t
• Ensure consistency of applications rather than allowing too many variations
Change Management
•
•
•
•

Clarify and communicate specific objectives of your applications up front
Ensure top management and line management buy-in and ongoing support
Be focused in implementation (i.e., one function, one pilot group first)
Provide training and communication more consistently and carefully (building in training at
all stages of implementation)
• Develop and consistently apply a measurement system used to evaluate the effectiveness
of implementation over time


41

COMPETENCY IMPLEMENTATION –
SHORTEN TIME TO IMPACT
Recommended Approach

80% of the effort

20% of the effort

Kenexa / IBM Competency
Development
 Get the “big things right”;
“don’t dwell on the small
stuff”.
 Apply existing materials
and best practices in
developing a rapid draft
 Focus on the overall
architecture
 Key success criteria and
themes.

Application
Integration
Iteration
 Position models as
prototypes for learning
how to change
behaviors
(vs. a perfect output
image).

Typical Competency Development

Typical Approach 80% of the effort
Kenexa®,

Copyright
2013

Launch &
Communication

Implementation

 Develop and use quickly and update over time.
 Focus on buy-in and change management processes.
 Make sure you get to the applications; don’t get stuck
in model development

Application
Integration
Iteration

Launch &
Implementation
Communication

20% of the effort
(if able to move out of development stage)

42

THE KENEXA JOB MODEL AND
COMPETENCY LIBRARY
Kenexa Job Competency models provide: job families, job profiles with competencies critical to each role
and the proficiency level recommended for each competency
Industry Competency Models
– Banking / Financial Services
– Construction
– Consulting
– Education
– Energy
– OEM/High Tech Hardware
– Pharmaceutical

-- OEM High Tech Software
-- Insurance
-- Manufacturing
-- Media / Publishing
-- Retail
- CRM Outsource Mgmt
- Healthcare (Clinical/Admin)

General Competency Models
– General Corporate Functions (HR, Finance, Legal, Sales)
– Information Technology (IT) Operations
– SFIA (Skills Framework for the Information Age)

Job Model Components
Job Families (115+)
• Function or expertise
• 6 Job Bands for employees,
management and executive
matrices

Jobs (2,500+)
• Job descriptions
• Job profiles
• Job responsibilities
• Job focus (ie. Admin, IC, Mgmt, etc )

Competencies (1,800+)
Business
–
36
Individual
–
28
Management
–
22
Leadership
–
20
Functional/Technical – 1700
4 Levels of Proficiency with 21 unique
behavioral descriptors for action oriented
skill evaluation

Performance Accelerators
•
•
•
•
•

Learning ReferencesDevelopment Goals
Coaching Tips
Proficiency Feedback Writing Assistants
Interview Questions

− Level 1: Basic understanding
− Level 2: Working experience
− Level 3: Extensive experience
− Level 4: Subject matter depth/breadth

• Compensation Market Data

43

IMPROVE RETURN ON INVESTMENTS
ALREADY MADE IN TALENT MGMT

JOB COMPETENCY
LIBRARY
 18 Industry specific FRAMEWORKS
 115+ JOB FAMILIES,
 2000+ JOB PROFILES
 1,800+ COMPETENCIES
 4 PROFICIENCY levels w/21 Behaviors
 Interview Questions, Learning
Resources, Development Goals,
Coaching Tips
 Tool agnostic structure proven
over 20 + years


Competency
Manager Tool
* Edit existing,
* Create new,
* Assemble New,
* Compare
Competencies/skills

EXCEL
Export

Excel

45

The Sum of the Parts sets IBM apart.

World-class Talent Management technology
Software, best practices, data and research to impact the workforce
and deliver exceptional business results

Science that makes it “smarter”
Industry-leading insights into the science of human behavior, deep
expertise in talent management and predictive analytics that
demonstrates value

Social platform to drive adoption
Big data analytics, enterprise content management, plus a social
networking, collaboration and web experience platform that integrates
with how people work

Flexible service options
Expert consulting, experienced outsourcing and financing options to
make transformation happen

Delivered how and where people work
On smartphones, tablets, laptops, desktops or kiosks to ensure noone is excluded regardless of where they work or what they do.


46

QUESTIONS, NEXT STEPS
• Questions?
– Here’s one for you:
 what are your 2 most critical job roles and how is their impact
measured in your annual report revenue, profit, customer
service costs, risk mitigation?
• Next steps:


47

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

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

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (6)

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

Similar a Get ready for 2014 solve the talent management equation with job competencies (20)

Más de Human Capital Media

Más de Human Capital Media (20)

Último

Último (20)

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