Talent Management

Teri Ray, MBA, SPHR,Professor of Human Resource Management

Murray State Universitytray@murraystate.edu

Copyright © 2014 Teri T Ray

How much does a bad hire cost?

40% employers reported typical new hire costs $100033% reported between $1001-$500027% greater than $5000

Impact on Bottom line?

41% lower productivity40% lost time to recruit and train another worker37% cost to recruit and train another worker36% Negative impact on employee morale22% Negative impact on client solutions

Why do bad hires occur?

38% needed to fill jobs quickly34% Not sure; sometimes you make a mistake11% didn’t check references

All point to negligence of employer!!!CareerBuilder Survey http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?id=pr609&sd=12%2F13%2F2010&ed=12%2F31%2F2010

Talent Management Strategy

AcquisitionRetentionMeasurement

Acquisition

Critical Decision Points Talent Acquisition:Can the person do the job?Will the person do the job?Does the person fit the organization?

Value fitFuture growth

Can the person do the job?

Specify job requirements general and specificIdentify critical success factors a candidate must have to succeed on the job

ONET--FREE

Sponsored by the DOL, largest provider of occupational information

Worker CharacteristicsWorker RequirementsExperience RequirementsOccupational RequirementsOccupational CharacteristicsOccupation Specific Informationhttp://www.onetonline.org/

Onet Free Resources

Provides info on Job descriptions and specifications which are legally required by ADA, FMLA, & WCBase of job success factors and performance criteriaAssist in market rate for various jobs

Onet Resources:Tool Kit http://www.onetcenter.org/toolkit.htmlJD Writer http://www.careerinfonet.org/jobwriter/default.aspx

Other Decision Points

Will the Person do the job?Does the person match the organization?

Value set between organization and personFuture growth potential of organization & applicant

How to Assess Candidates

Structured InterviewStandardized questionsInterview based on job duties and requirementsBenchmark answersTake notesLegally defensible and twice as likely to predict future job performance

Situational Structured interviews

It is the night before your vacation. You are all packed and ready to go. Just before you get into bed, you receive a phone call from the plant. A problem has arisen that only you can handle. You are asked to come into take care of things. What would you do in this situation?Scoring Guide4 – I would go into work and make certain everything is OK. Then I would go on vacation.3 – There are no problems that only I can handle. I would make certain that someone qualified was there to handle things.2 – I would try to find someone else to deal with the problem1 – I would go on vacation.

Behavioral Descriptions

Based on the premise past performance is the best predictor of future performance

Describe a time when you were not satisfied with your own performance. What did you do about it?Give me an example of a problem you faced on the job, and how you dealt with it.Describe how you handled a situation where you found yourself dealing with someone who didn’t like you.Give me an example of an important goal you had to set and tell me about your progress in reaching that goal. What steps did you take?

Additional Interview Guide

http://www.performancesolutions.nc.gov/staffinginitiatives/selection/docs/selection_interviewformats_behaviorbasedinterviewquestions.pdf

Retention

Why Talent Stays

Interesting, challenging workOpportunities for advancement and learningCollegial workforceFair compensationA respected managerRecognition for accomplishmentFeeling a valued member of a teamA substantial benefits packageThe feeling “their work” makes a differenceOverall pride in company’s mission and products

What Can You Do?

Clear ExpectationsSense of ControlKeep them in the LoopRoom to growRecognitionLeadership

Measuring Human Capital

Investor Metrics for Human Capital

Spending on Human CapitalTotal amount spent on employeesTotal amount spent in support of employeesTotal amount spent in lieu of employeesTotal amount invested in training and development

Ability to Retain TalentVoluntary and total turnoverBroken down by EEO -1 job typesIndustry std. formula (#terminations during the period/average active headcount during period).

Metrics (cont.)

Leadership DepthPercentage of defined positions that have an identified successorPercentage of open defined positions filled internally during the period.

Leadership QualityIndex of relevant questions from employee surveysInformation on the response rate and methodology/tools

Metrics (cont.)

Employee EngagementIndex of relevant questions from employee surveyInformation on the response rate and methodology/tool

Human Capital Discussion and AnalysisNarrative to provide context and discussion of the reported metricsDisclosure of any material risks or any other material information related to human capital

Measuring Resources

SHRM/ANSI Investor Metrics http://hrstandardsworkspace.shrm.org/apps/group_public/document.php?document_id=6504&wg_abbrev=mamt02

Cascio, W. & Boudreau, J. 2008. Investing in People: Financial Impact of Human Resource Initiatives. Pearson LTD: Upper Saddle River, NJ. Free calculator for metrics:

http://hrcosting.com/hr/index.cfm?timeout=true