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This presentation shares findings of a joint research paper by Human Capital Institute and Taleo.
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T A L E N T I N T E L L I G E N C E K N O W S .
THE BUSINESS IMPACT OF TALENT INTELLIGENCE
David WilkinsVP, Taleo Research
@dwilkinsnh@TaleoResearch
Join the Conversation!• On Twitter: #TaleoTalent• In Twitter or Twitter client, search for
#TaleoTalent.• When you comment, add TaleoTalent
so everyone can see it.
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
AGENDA
› 2010 & 2011 studies
› What is talent intelligence?
› Review of survey findings
› Recommendations
› Q&A
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
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?
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.
DPOS VERSUS DDOS
How much do you agree that your organization is proficient at analyzing workforce data? How satisfied are your business leaders with the data that is provided to them?
Data Proficient Organizations (DPOs):
Those organizations that agree they are proficient at analyzing
workforce data AND their business leaders are satisfied with the
workforce data 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.
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 organization's business goals and strategy
94% 50%
Satisfied with organization’s ability to analyze and make connections between recruiting and retention
78% 20%
BENEFITS
78%
73%
70%
68%
66%
64%
59%
59%
0% 25%
50%
75%
100%
Higher productivity and innovation resulting from the right people in the right roles
More efficient and effective hiring resulting from better identification of required profiles
Greater organizational agility created by more awareness of talent gaps and strengths
Improved engagement levels tied to job fit and better overall alignment between individual contributions
Better partnership and communication aided by a stronger connection between business planning and talent planning
Reduced turnover results from better hiring and improved fit
Higher levels of business continuity driven by improved succession planning
Increase flexibility in business response aided by short- and long- term workforce planning
How important are the following benefits to your organization, if you had greater access to robust talent data and related insight and analytics?
Percentage Very Important
BENEFITS
78%
73%
70%
68%
66%
64%
59%
59%
0% 25%
50%
75%
100%
Higher productivity and innovation resulting from the right people in the right roles
More efficient and effective hiring resulting from better identification of required profiles
Greater organizational agility created by more awareness of talent gaps and strengths
Improved engagement levels tied to job fit and better overall alignment between individual contributions
Better partnership and communication aided by a stronger connection between business planning and talent planning
Reduced turnover results from better hiring and improved fit
Higher levels of business continuity driven by improved succession planning
Increase flexibility in business response aided by short- and long- term workforce planning
How important are the following benefits to your organization, if you had greater access to robust talent data and related insight and analytics?
Percentage Very Important
73%
60%
58%
56%
46%
45%
42%
14%
0% 25% 50% 75% 100%
ROI of employee development
Revenue per employee
Profitability
Cost per hire
HR spend per employee
Cost of training
Sourcing cost
Stock value
Which of the following financial metrics would be positively impacted by leveraging more robust
talent insights?
TOP AND BOTTOM METRICS
TOP AND BOTTOM METRICS
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
WORKFORCE DATA - DDO
Em
ploy
ee E
ngag
emen
tC
ompe
tenc
y S
kill
Gap
Ana
lysi
s
Tota
l Tur
nove
rO
pen
\ Vac
ant P
ositi
ons
WORKFORCE DATA - DPO
Em
ploy
ee E
ngag
emen
tC
ompe
tenc
y S
kill
Gap
Ana
lysi
s
Tota
l Tur
nove
rO
pen
\ Vac
ant P
ositi
ons
WORKFORCE DATA - DPO
Em
ploy
ee E
ngag
emen
tC
ompe
tenc
y S
kill
Gap
Ana
lysi
s
Tota
l Tur
nove
r
Ope
n \ V
acan
t Pos
ition
s
WORKFORCE DATA - DPO
Em
ploy
ee E
ngag
emen
tC
ompe
tenc
y S
kill
Gap
Ana
lysi
s
Tota
l Tur
nove
r
Ope
n \ V
acan
t Pos
ition
s
Under Investment
Over Investment
SOURCING AND ONBOARDING
Qua
lity
of H
ire
Bes
t sou
rces
of T
alen
t
Ave
rage
Tim
e to
Hir
e
for
Cri
tical
Rol
esFi
rst Y
ear
Volu
ntar
y Tu
rnov
er
Tim
e to
Pro
duct
ivity
Ave
rage
Tim
e to
Hir
e
% o
f Pos
ition
s Fi
lled
by In
tern
al
Off
er A
ccep
tanc
e R
ate
Tota
l New
Hir
e C
ost
# of
App
licat
ions
per
Hir
e
SOURCING AND ONBOARDING
Qua
lity
of H
ire
Bes
t sou
rces
of T
alen
t
Ave
rage
Tim
e to
Hir
e
for
Cri
tical
Rol
esFi
rst Y
ear
Volu
ntar
y Tu
rnov
er
Tim
e to
Pro
duct
ivity
Ave
rage
Tim
e to
Hir
e
% o
f Pos
ition
s Fi
lled
by In
tern
al
Off
er A
ccep
tanc
e R
ate
Tota
l New
Hir
e C
ost
# of
App
licat
ions
per
Hir
e
SOURCING AND ONBOARDING
Qua
lity
of H
ire
Bes
t sou
rces
of T
alen
t
Ave
rage
Tim
e to
Hir
e
for
Cri
tical
Rol
esFi
rst Y
ear
Volu
ntar
y Tu
rnov
er
Tim
e to
Pro
duct
ivity
Ave
rage
Tim
e to
Hir
e
% o
f Pos
ition
s Fi
lled
by In
tern
al
Off
er A
ccep
tanc
e R
ate
Tota
l New
Hir
e C
ost
# of
App
licat
ions
per
Hir
e
We know a lot about stuff that’s tactical.
We know very little about stuff drives the
business.
SOURCING AND ONBOARDING
Qua
lity
of H
ire
Bes
t sou
rces
of T
alen
t
Ave
rage
Tim
e to
Hir
e
for
Cri
tical
Rol
esFi
rst Y
ear
Volu
ntar
y Tu
rnov
er
Tim
e to
Pro
duct
ivity
Ave
rage
Tim
e to
Hir
e
% o
f Pos
ition
s Fi
lled
by In
tern
al
Off
er A
ccep
tanc
e R
ate
Tota
l New
Hir
e C
ost
# of
App
licat
ions
per
Hir
e
SOURCING AND ONBOARDING
Qua
lity
of H
ire
Bes
t sou
rces
of T
alen
t
Ave
rage
Tim
e to
Hir
e
for
Cri
tical
Rol
esFi
rst Y
ear
Volu
ntar
y Tu
rnov
er
Tim
e to
Pro
duct
ivity
Ave
rage
Tim
e to
Hir
e
% o
f Pos
ition
s Fi
lled
by In
tern
al
Off
er A
ccep
tanc
e R
ate
Tota
l New
Hir
e C
ost
# of
App
licat
ions
per
Hir
e
Sometimes we have decent data, but we
can’t always slice and dice it in meaningful
ways.
LEARNING AND DEVELOPMENT
% o
f Dev
elop
men
t Pla
ns
Alig
ned
to G
oals
% o
f the
Wor
kfor
ce
Com
plet
ed R
equi
red
Trai
ning
% o
f Dev
elop
men
t Pla
ns th
at
Suc
cess
fully
Add
ress
Per
form
ance
Gap
s%
of C
ompl
ete
Em
ploy
ee
Dev
elop
men
t Pla
nsLe
ngth
of T
ime
Bet
wee
n
Trai
ning
Inte
rven
tion
and
Impr
oved
Per
form
ance
LEARNING AND DEVELOPMENT
% o
f Dev
elop
men
t Pla
ns
Alig
ned
to G
oals
% o
f the
Wor
kfor
ce
Com
plet
ed R
equi
red
Trai
ning
% o
f Dev
elop
men
t Pla
ns th
at
Suc
cess
fully
Add
ress
Per
form
ance
Gap
s%
of C
ompl
ete
Em
ploy
ee
Dev
elop
men
t Pla
nsLe
ngth
of T
ime
Bet
wee
n
Trai
ning
Inte
rven
tion
and
Impr
oved
Per
form
ance
We know who’s being trained and
developed;
we just have no idea whether it matters…
PERFORMANCE MANAGEMENT AND COMPENSATIONTo
p P
erfo
rmer
Ret
entio
nP
rodu
ctiv
ity
Top
Per
form
er F
light
Ris
kH
igh
Pot
entia
ls b
y D
epar
tmen
t
Com
pens
atio
n
Ben
chm
arks
by
Job
Rol
e
% o
f Bon
us P
ool t
o To
p
Per
form
ers
Top
Per
form
ers
with
out a
Car
eer
Pla
nA
vg P
erfo
rman
ce R
evie
w S
core
s
PERFORMANCE MANAGEMENT AND COMPENSATIONTo
p P
erfo
rmer
Ret
entio
nP
rodu
ctiv
ity
Top
Per
form
er F
light
Ris
kH
igh
Pot
entia
ls b
y D
epar
tmen
t
Com
pens
atio
n
Ben
chm
arks
by
Job
Rol
e
% o
f Bon
us P
ool t
o To
p
Per
form
ers
Top
Per
form
ers
with
out a
Car
eer
Pla
nA
vg P
erfo
rman
ce R
evie
w S
core
s
We know we need to keep top performers,
but we don’t know who’s at risk or why…
SUCCESSION AND TALENT MOBILITYC
ritic
al R
oles
with
No
Iden
tifie
d S
ucce
ssor
s
Suc
cess
ion
Ben
ch S
tren
gth
% o
f Lea
ders
hip
Pip
elin
e Fi
lled
Ext
erna
lly v
s. In
tern
ally
% o
f Suc
cess
ion
Pla
ns A
ctua
lly
Impl
emen
ted
Top
Per
form
ers
Not
on
Suc
cess
ion
Pla
ns
Per
form
ance
Rev
iew
Sco
res
afte
r a
Mob
ility
Eve
nt
SUCCESSION AND TALENT MOBILITYC
ritic
al R
oles
with
No
Iden
tifie
d S
ucce
ssor
s
Suc
cess
ion
Ben
ch S
tren
gth
% o
f Lea
ders
hip
Pip
elin
e Fi
lled
Ext
erna
lly v
s. In
tern
ally
% o
f Suc
cess
ion
Pla
ns A
ctua
lly
Impl
emen
ted
Top
Per
form
ers
Not
on
Suc
cess
ion
Pla
ns
Per
form
ance
Rev
iew
Sco
res
afte
r a
Mob
ility
Eve
nt
We know we need to have succession plans
for critical roles, but we don’t…
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.
Performance Plans Aligned to Goals
Succession Bench Strength
Top Performers NOT on succession plans
Risk of loss for critical employees/positions
Top performers with NO career path
Competency/skills gap analysis
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Important or Very Important Access to Reliable Data
2010 VS. 2011: AVERAGE DIFFERENCES? NOT MUCH
Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010
Performance Plans Aligned to Goals
Succession Bench Strength
Top Performers NOT on succession plans
Risk of loss for critical employees/positions
Top performers with NO career path
Competency/skills gap analysis
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Important or Very Important Access to Reliable Data
2010 VS. 2011: AVERAGE DIFFERENCES? NOT MUCH
Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010
Performance Plans Aligned to Goals
Succession Bench Strength
Top Performers NOT on succession plans
Risk of loss for critical employees/positions
Top performers with NO career path
Competency/skills gap analysis
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Important or Very Important Access to Reliable Data
2010 VS. 2011 DIFFERENCES? MORE NUANCED ANALYSIS
Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010
2010: <25% had critical insight into their
people
2011: 35% classified as “Data Proficient”
DPO VS. DDO IMPORTANCE METRICS CAN BE BIG
› 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%
› Productivity21%
› High Potentials by Department 19%
Importance
DPO VS. DDO IMPORTANCE METRICS CAN BE BIG
› 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%
› Productivity21% 23%
› High Potentials by Department 19%26%
Importance Reliable Access
DPO VS. DDO IMPORTANCE METRICS CAN BE BIG
› 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%
› Productivity21% 23%
› High Potentials by Department 19%26%
Importance Reliable Access
Across all measures, DPO’s average
“reliable access” score was 24%
better than DDO’s
FINANCIAL PERFORMANCE
Source: Deloitte, “Extracting Maximum Value from Intangible Assets”
INTANGIBLES: 80% AND GROWING
Source: Deloitte, “Extracting Maximum Value from Intangible Assets”
“…knowledge workers have driven more
than 70 percent of the economic growth
in the U.S. over the past three decades,
and 85 percent of the new jobs created
in the past decade have required
complex knowledge skills.”
McKinsey – Economic Conditions Snapshot, 2010
INTANGIBLES: 80% AND GROWING
RANKING OF BARRIERS
DDOs
1. Lack of analytic skill
2. Already have a system
3. Lack of executive support
4. Cost
5. Lack of tools
DPOs
1. Already have a system
2. Lack of analytic skill
3. Lack of tools
4. Cost
5. Lack of executive support
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
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