RETURN ON TALENT
• What is ROT?
• ROT = knowledge generated + knowledge applied. For generations,
companies have used ROI to determine value. Increasingly,
companies are now also using ROT. If you have talented people,
knowledge is just one component. The generation of that
knowledge is the most important thing talent can provide. It
becomes an asset only when it is captured and used effectively.
• Understand the value of knowledge. The value of knowledge
generated increases with its effective deployment. This leads to a
more creative workforce, smoother processes, continued
improvement and enhanced communication. It helps management
be flexible, capitalizes on opportunities and keeps pace with the
changing business climate. Talented people influence those around
them and share their knowledge over time.
• ROT measures payback from your investment in
people. It shows whether managers are hiring the
right talent and how effectively they use it. ROT can
be a qualitative or quantitative measurement, based
on the viewpoint of management. If you want to see
quantitative results, you must put a price on
knowledge generated based on results achieved.
• Knowledge becomes a key productivity factor. It joins
more traditional resources such as raw materials,
buildings and machinery. To make your investment
more profitable, you must constantly measure and
continuously improve ROT.
OPTIMIZING INVESTMENT IN
• INVESTMENTS IN TALENT An organization makes
multiple investments in acquiring and effectively
utilizing its talent:
• Management time and effort – Numerous man
hours spent by business and HR managers in
recruiting and managing talent.
• Operating costs – The largest human resource
costs in a company are in areas of recruitment,
training, staff welfare, travel for human resource
related processes, etc.
• Overall employee costs – This is an
aggregation of cost to company
(compensation and benefits) of all employees.
These costs are part of every company’s profit
& loss statement and normally tend to
increase over time.
Integrating Compensation with Talent Management
•Compensation is the total cash and non cash
payments that you give to an employee in
exchange for the work they do for your
•It is typically one of the biggest expenses for
the businesses with employees.
There are those who believe that compensation is of secondary
importance to most people in their decisions to stay at or leave
organizations. These people conclude that to retain top talent,
pay only needs to be fair and competitive.
There are others who believe that compensation is the primary
tool for attracting and retaining talent.
compensation can be a potent tool for retaining important
contributors, but only in the context of an integrated package of
tangible and intangible rewards that operate within the
framework of a reward philosophy that supports a winning
Talent value chain
Superkeepers: Creating a “magnetic culture” to attract, retain and energize people
that represent your top talent. These are the 3% to 5% of the organization
Keepers: Maintaining an environment and reward programs that recognize those that
make a continual difference to the organization. These individuals represent the 25%
30% of the organization who have clearly demonstrated their leadership capabilities
and exceed expectations for both job accountabilities and core competencies.
Solid Citizens: Providing rewards that keep those who are the baseline contributors on
even keel without requiring an undue investment and create an environment that
motivates these individuals to move up the talent chain. These individuals are those
65% or so of the organization who meet expectations in terms of core competency
requirements and job responsibilities and may be able to lead others.
Misfits: Making the tough decisions regarding those 3% to 5% who do not appear to
fit within the organization and clearly do not perform as expected or demonstrate
Key Principles to know how compensation plans creates value
1) Compensation plans need to be tailored to the specific needs and unique
characteristics of the organization
2) To effectively manage and maximize talent, compensation plans need to be
expanded and integrated with programs, tools and practices that impact the
actions of people
3) Rewards need to be meaningful to the individual and directly relate to the
strategy and key drivers of the organization’s success
4) Rewards need to directly support the creation of magnetic cultures.
Elements of total rewards
Salaries and other forms of secured compensation,
• Variable pay and the opportunity to share in the success of achievements,
• A stake in the long-term growth and future of the organization through equity participation,
career opportunities or job security.
• The investment in one’s development and increasing competencies,
• The opportunities to have challenging and meaningful work,
• The appreciation and recognition of one’s contributions to the organization,
• The involvement in decisions that impact one’s work and career,
• The ability to make meaningful decisions and exert some degree of control over resources
commensurate with one’s role in the organization,
• The confidence in the leadership, mission and importance of the organization in one’s
Designing Integrated Rewards—Making the Strategy Real
The process of developing an integrated rewards philosophy that can be translated into
real programs addresses five key questions:
1. Who are those that we believe are critical to the present and future success of our
2. What are the things that they value or find important at this stage in their careers and
in the foreseeable future? What are the basic talent segments of the organization?
3. What do we as an organization need from them that will enable us to sustain or
enhance our marketplace leadership?
4. How effective and how competitive (or distinctive) do the programs we offer need to
be to reinforce the commitment and performance of these individuals?
5. What are we willing to do and not do as an organization?
• Information technology and system have changed
the way business gets conducted. Every decision-
making process is enhanced with utilization of an
information system. Information systems have been
deployed by human-resource team to enhance
employee employer relationship.
• Companies require great deal of contribution from
employee for its success though information systems
have made several processes automated.
Purpose of Talent Management
• Employee Competency Assessment
• Succession Planning
• Training and Professional Development
• Providing Additional Features as Required &
• TMIS has all the tools to perform the task of
• recruiting , on-boarding , performance
management, training and development , need
assessment and succession planning.
• with these function and the complete picture of
every employee TMIS provides, manager and
employee build career path
• A fully integrated TMIS enables companies to
merge traditional analysis with their talent
• TMIS make recruiting process more efficient for
companies and candidates
• With online recruiting system , the job application
process can be done completely online
• As communication tools TMIS is the fastest way
to get information to the applicants
• Companies can place detailed requirement
including education, work experience and
proficiency level for each position
• Use technology for on-boarding reduce
costs,turnover and time for new employee to be
• Use technology to help them with
- Automating communication and filling out forms
- Tracking new employees progress
• During on-boarding process company pushes
information to new recruits through TMIS to
• companies can use TMIS to design customized
performance management programs which are
online, paperless, efficient & easy to use
• Automatic alerts let manager know when
upcoming revieware near as well as other deadline
• Employees , manager and anyone involved in 360-
degree review can complete questions online
making it much easier for HR
• HR can calibrate reviews based on each reviewer’s
past evaluation which are stored by the TMIS
Training and Development
- using TMIS companies can
- administer their Training and Development
- set up courses
- Enroll employee
- develop career paths
- monitor training and development budget , in
addition to compensation and benefits
• Succession planning enables companies to
react and plan for changes in the workplace
• with TMIS , companies can plan for changes
in individual positions and changes in whole