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High Impact HR:Going Beyond Typical Approaches to Build a High-Performance Workforce
May 29, 2014
Contents
• Capital Expenditure vs Talent Acquisition and Development
• Talent Costs
• Optimizing Talent ROI
• UChicago Case Study
• Key Learnings
2
Comparing investment decisions – rigor and stakeholder involvement
1. Identify Potential Opportunities and Generate Proposals
2. Evaluate Opportunities
3. Estimate Cash Flow and Conduct ROI Analysis
4. Get Stakeholder Review and Input
5. Select Project(s) and Gain Approval
6. Implement
7. Follow Up and Monitor
$500,000 Capital Expenditure
= Typically requires senior leader involvement
Hiring manager typically makes
decision with limited to no senior leader or
HR involvement
$100,000 Hire / Up to $500,000 Cost
1. Determine Position Requirements and Post Position
2. Screen and Select Candidate
3. Offer Candidate Position; Candidate Begins
3
Is less rigor causing bad hiring or underinvesting in talent?
Bad Hiring Decision Underinvesting in Talent• Stakeholder involvement• Recruiting strategy• Short and long-term view• Department needs and
structure• Position requirements• Speed• Limited talent pool • Fit• Mistake
• Manager/HR partnership• Employee needs• Operational focus• Long-term view• Resources and tools• Time• Distractions
4
Missed opportunities to maximize value
Time
Valu
e
Employee base pay = $100,000
Bad hire exited after 1 year = up to 2.5x base pay
Bad hire
Seeks opportunities and recognition
Engaged about growth and opportunities
Realizes it’s just “talk”
Disengages
Answers the recruiter’s call
Gives up and leaves
Asks for promotion or expects raise
Bad hiring decisions and high performers leaving can cost millions
Manager in denial
Too busy to deal with it
Other excuse?
Good hire; but misaligned investments
5
Finding the right talent is hard enough, now we have to figure out how to keep them?
Workforce Segment Problems Attracting
Problems Retaining
Critical skill employees 66% 41%
High potential employees 49% 38%
Top-performing employees 48% 35%
All employees 18% 14%
Source: Towers Watson 2013 Talent Management and Rewards Study, North America
2007 2008 2009 2010 2011 2012 20130%
10%
20%
30%
40%
50%
60% Critical Skill High Potentials
Top Performing All Employees
Percentage Reporting Problems Retaining
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• Base pay, incentives, medical and benefits
• Orientation, training and development
Talent costs can be significant
• Severance, Cobra, unemployment, outplacement
• Lost productivity/backfill
• Disruptions
• Coaching and performance management
• Employee motivation and morale
IntroductoryInvestment
Costs
TangibleCosts
ExitOrganization
Intangible Costs
• Recruiting and search firms• Sourcing, selecting and
courting • Onboarding• Sign on bonus
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Optimizing ROI on talent decisions
Talent Stewardship
People Manager
HR Partners
People Manage
rPeople Manage
rPeople Manage
r
HR Partner
HR Partner
HR Partner
8
UChicago: Complex Organization
The University of Chicago
Students
University Faculty &
Staff
Union
Medical Center
Academics
National Labs &
Affiliations The
University of Chicago (Hyde Park,
Paris, Beijing and
Delhi)
15,000
23,000
1,100
7,100
82 depts., 8 schools,
5 divisions
5,000
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UChicago: Snapshot
• Lack of overarching HR and talent philosophies
• Inconsistent approaches– Position requirements– Role identification– Performance expectations and
performance management– Talent assessment and succession
planning– Coaching framework– Sourcing and selecting
• Limited HR/Manager partnership• HR transactional versus advisory
What we had…• Losing talent• Going outside for talent– Search firm costs– Internal talent pool– High potential
identification– Talent movement
• Risk and exposure• Disengaged staff
…resulted in
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A model we’ve all seen before…
HR Partners
HR Centers of Expertise
HR Administration and
Operations
People Managers
…making this work in a complex environment is not that straight-
forward11
Demonstrating value
Creating Institutional Partnership
Building Institutional Capacity
Other Engagements
• Organization effectiveness and structure
• Vision and strategy sessions• Team building
• Talent exchange• Redefining policies and
procedures• Connecting the community
12
How is UChicago HR delivering the value?• Building a new team
• Staffing and deploying like a consulting firm
• Creating one HR
• Letting managers be managers, not HR experts– Educate and equip managers – Be available– Get the right people involved
• Making it a desirable and sustainable partnership with HR
• Recognizing it’s a shared responsibility
13
Key learnings for all of us• Hire strategically
• Partner to build the infrastructure that allows talent to thrive
• Check in with your managers
• Speak their language
• Be the HR experts
• Redefine yourselves and/or offerings, as needed
• Create the culture – an environment of partnership, trust and collaboration between HR and managers
• Recognize it will take time, but it is an investment you can’t afford not to make
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