The New Model for Talent Management: Agenda for 2015

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The Talent Agenda for 2015 What comes after “Integrated Talent Management?”

Josh Bersin Principal, Deloitte Consulting LLP October, 2014

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Who We Are - Global provider of leading practices, trends, and benchmarking research in

talent management, learning, and strategic HR.

- 60% of the Fortune 100 are Bersin by Deloitte research members, with more than 19.5 million employees managed by HR teams using Bersin Research.

Broad Research Practices • Human Resources • Leadership Development • Learning & Development • Talent Acquisition • Talent Management

Offerings - WhatWorks® Membership: Research, Tools, Education, Benchmarking

- IMPACT®: The industry’s premiere conference on the Business of Talent

- Advisory Services & Consulting

Human Resources

Leadership Development

Learning & Development

Talent Acquisition

Talent Management

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Research Basis

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How the Talent World has Changed

“Our candidates today are not looking for a career…”

“They’re looking for an

Experience.”

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Top Global Talent Priorities % Rated “Urgent” or “Important”

60%

62%

67%

69%

70%

71%

74%

75%

75%

78%

78%

89%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Diversity & Inclusion

The Overwhelmed Employee

Fix Performance Management

Reinvent L&D

Integrated HR Technology

Globalized HR & Talent Management

Talent & HR Analytics

Workforce Capabilities

Talent Acquisition & Access

Reskilling HR

Retention & Engagement

Leadership Gaps

Deloitte Global Human Capital Trends Research, n=2500, 2/2014

v Areas of Biggest Capability Gap

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The Old Idea of Integrated TM Slow Response to Changing Business Needs

- Inability to identify current and future talent gaps - Hiring strategy and development planning not in sync - No clear picture of future “talent profile” - Leadership pipelines in jeopardy

Disconnected Decision Making - Data and processes not integrated - Talent not shared across business units - Learning plans not linked to assessments and skills

gaps in current talent pool - Lack of visibility into talent gaps

Not responsive to Employee Demands - Employees want career development - Defined career paths and competencies not clear and

consistent - Talent mobility difficult during change - Managers still the weakest link in organizational

performance

Administratively Intensive - Data entry is repetitive - High volume of manual work to complete HR review

processes - Difficult to obtain executive-level talent information - Hard to plan for the future

Learning & D

evelopment

Sourcing &

Recruiting

Perform

ance Managem

ent

Leadership Developm

ent

Succession P

lanning

Workforce P

lanning

Com

pensation - Benefits

Traditional Silos of HR

Integration… But…

to what end?

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High Impact Talent Management® Methodology

High Impact Talent Management® © Bersin & Associates

Process Redesign Process Integration

Talent Gaps and Solution Strategy

Performance Management Strategy

Business Units Business

Units Business Units

Talent Plan Talent

Plan Talent Plans

Sourcing and Recruiting Strategy

Talent Systems Strategy

Learning and Development Strategy

Compensation & Rewards Strategy

Workforce and Marketplace Assessment

Business Problem Identification

Business- Related Talent Challenges

HR Processes

Systems and Process Implementation

1

2

3

4

Business Plans & Challenges

Leadership Devt. Succession Strategy

Competency Mgt. Strategy

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Attracting & Acquiring Talent

Managing & Developing Talent

Extending Talent

Understanding & Planning Talent

Employment Brand Social Sourcing

Talent Networks Mobile Job Sites Candidate Marketing

External Brand Work Environment

Mission and Values

Diversity & Inclusion

Work-Life Balance Rewards

Recognition

Performance Management

Goal Setting

Career Management

Leadership Development

HIPO Assessment Professional Career Mgt

Technical Career Mgt

Contract Labor

Alumni Programs College Recruiting

Talent Networks

Supply Chain Talent Analytics WF Planning

Engagement

Retention Mgt

Segmentation

L&D

Coaching

Certification

LinkedIn

Glassdoor

Reputation

Suppliers

Partners

Data Providers MOOCs, Content Providers

Assessments

Job Networks Brand

Management Development Career

Lattice Academia

Partners

The Talent Ecosystem: Everything is Connected

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Driving Performance & Development

Assessing & Improving Corporate

Culture

Accelerating Time to

Competency

Improving Management &

Leadership

Improving Career & Talent

Mobility

Planning & Analyzing

Talent

Delivering and Managing

Employment Brand

Improving Speed and Quality of

Hire

Driving Engagement

and Retention

Talent Imperatives for 2015

Diversity, Work Environment, Purpose, Values, and Mission

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Agenda

Talent Acquisition

Engagement and “Simply Irresistible”


Talent Mobility – Career Development

Learning & Development

Talent Analytics

Becoming Bold

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Talent Acquisition Most Important of All

Changing the Way We Manage

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Hiring Manager

Relationships

Candidate Pool

Development Social Media

Campaign

Recruiter Training

Governance & Decision Making

Employee Referral Program

TA Program Management

Optimized TA Technology

Diverse Candidate

Slates

Employment Branding

Assessment Against

Requirements Reporting &

Analytics

Source: High-Impact Talent Acquisition®, Bersin by Deloitte, 2014

Top Practices in Talent Acquisition

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Reactive Tactical Recruiting Recruiters are “order takers;” posting of positions on an as-needed basis. Minimal hiring compliance standards met; no real processes defined. No strategic focus on candidate

experience.

Level 1

Standardized Operational Recruiting Effective assessment of candidates against job requirements. Begin to establish strong relationships with hiring managers. Some link to workforce planning. Standard interview

documents.

Level 2

Integrated Talent Acquisition Strong employment brand. Active pipeline of candidates. Robust TA programs (e.g., diversity, alumni, employee referral). Investment in new TA products and

services.

Level 3

Optimized Talent Acquisition Strategic enabler of the business. Successful social media campaign.

Recruiter training builds strategic capabilities. Ability to predict external forces & remain agile.

Level 4

Talent Acquisition Maturity Model B

ers

in b

y D

elo

itte


35%

29%

23%

13%

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TA Performance Outcomes

Overall, we found that Level 4

organizations are 2.6x more likely to perform higher than organizations at Level 1 across all TA performance drivers

Level 1 Level 2 Level 3 Level 4

160% more likely to perform higher

Level 1 Level 3 Level 4

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The top three drivers of talent acquisition maturity are: 1. Building strong

relationships with hiring managers

2. Cultivating pools of potential candidates long before hire

3. Driving employment brand

62% Create new products more quickly than competitors

88% Meet or exceed financial targets

100 % Meet or exceed customers’ expectations


Three Key Drivers of Impact

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Employment Brand and

Employee Engagement?

What Is the Difference Between…

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The Reality Today…

Employee Engagement

IS Your Employment Brand

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How The Puzzle Fits



Culture


Competency


Leadership


Mobility


Talent


Employment Brand


Hire

Driving Engagement

and Retention

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Re-Thinking Employee Engagement

Building the Simply Irresistible Organization

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Engagement Still Startlingly Low

Worldwide only 13% of employees are “highly engaged” in their jobs.

63% “disengaged” and 24% “actively disengaged.”

(Australia and NZ are twice as “engaged” as the rest of the world!) with 25% “highly engaged”

China, Middle East, Africa, India are the lowest at 6-8% fully engaged

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Glassdoor Data Is Startling

Rating of Senior Leadership: 2.8 out of 5

Rating of Career Opportunities: 2.9 out of 5

Rating of Company Culture: 3.1 out of 5

Rating of Work-Life Balance: 3.2 out of 5

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Only 54% of employees would recommend company to a friend -Glassdoor, Bersin Analysis, October, 2014

And Even Worse

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Yet Some Companies Outperform Average

3.1

What are these guys

doing??

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What we have learned: An Integrated Approach is Needed The Simply Irresistible Organization®

Meaningful Work

Great Management

Fantastic Environment

Growth Opportunity

Trust in Leadership

Autonomy Agile Goal Setting (ie. OKR)

Flexible, humane work environment

Facilitated talent mobility

Mission and purpose

Selection to Fit Coaching & feedback Recognition rich culture

Career growth in many paths

Investment in people, trust

Small Teams Leadership Development

Open flexible work spaces

Self and formal development

Transparency and communication

Time for Slack Modernized Performance Mgt.

Inclusive, diverse culture

High impact learning culture

Inspiration

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The overwhelmed employee

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Companies with “soul” had a

return from 1996 through 2006,

8x higher than S&P 400

firms

1026% Companies with “soul” experience:

• Much higher engagement and retention

• Better customer service

• Long-term profitability

Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, 2014

Mission and Purpose Matters

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Recognition Drives Retention

7.2% 8.7%

10.5%

0%

2%

4%

6%

8%

10%

12%

Excellent (5) Fair (3-4) Poor (1-2)

Effectiveness of Recognition Program at Improving Employee Engagement

Voluntary Turnover Rate

31% Reduction in

voluntary turnover!

Source: Bersin & Associates Recognition Survey for HR Practitioners, January 2012, n = 573.

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Disruptive New Tools & Technology Explosion of New Options to Measure, Monitor, and Sense Engagement

Next Gen Engagement - CultureAmp - RoundPegg - BlackbookHR - TinyHR - BetterCompany - NikoNiko

Culture - CultureIQ - Deloitte - Good.co

Wellness - Upjoy - Happify - Goodthink

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Role of Organizational Culture

Courage

Commit ment

Inclusion

Shared Beliefs

Collective

Focus

Risk & Governance

External Orientation

Change &

Innovation

DIFFER

ENTIATIN

G

CO

RE

Courage represents the degree to which employees exhibit courage and resilience when confronting adversity, ethical dilemmas, failures, or opposition.

Commitment represents the extent to which employees feel a sense of pride and ownership to the success and brand of the organization.

Inclusion represents the degree to which an organization accepts and promotes diversity, uniqueness, and bringing one’s “authentic self” to the workplace.

Shared Beliefs represents the degree to which employees demonstrate commitment to organization specific core values / beliefs.

Collective Focus represents the degree to which an organization emphasizes collaboration, teaming, and cooperation in its operations.

Risk and Governance represents the degree to which an organization emphasizes compliance, quality, and structure in its operations.

External Orientation represents the degree to which an organization emphasizes a focus on customers and the external environment.

Change & Innovation refers to the extent to which an organization emphasizes embracing ambiguity, change, and risk to drive expansion and innovation.

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How The Puzzle Fits



Culture


Competency


Leadership


Mobility


Talent


Employment Brand


Hire

Driving Engagement

and Retention

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Rethinking Performance Management

Changing the Way We Manage

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The Crux of the Problem

Only 8% of organizations believe their performance management process is worth the time they’re

putting into it.

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The Two Philosophies of PM

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Science Behind Performance Management

Status

Certainty

Autonomy

Relatedness

Fairness

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Clarifying the Purpose of PM

Coaching for Development

Talent Decisions

Performance Improvement

Legal Documents

Employee Motivation

Compensation

Performance Feedback

PERFORMANCE MANAGEMENT

Coaching for Development

Talent Decisions

Performance Improvement

Legal Documents

Employee Motivation

Compensation

Performance Feedback

PERFORMANCE MANAGEMENT

Kelly Services

Source: “Getting Away from the Score: Creating Better Ongoing Performance Feedback,” Bersin & Associates, 2012. .

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10%

19%

26%

36%

First-level

Mid-level

Senior-level

Executives

Source: Leadership Development Factbook Survey, Bersin by Deloitte, 2014, n=288

% of Positions with Successors Identified

Succession Management: Does It Work?

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Back Office, Operational, Contingent Employees

Top Management

Senior Management

First Line Management

Traditional View Talent Mobility

SMEs (Consultants)

Senior Specialists

Functional Specialists / Front-Line Employees

Middle Management

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Back Office, Operational, Contingent Employees

Top Management

Senior Management

First Line Management

The Reality

SMEs (Consultants)

Senior Specialists

Functional Specialists / Front-Line Employees

Middle Management

Top Management

Contract Hire

Job Intern

Developmental Assignment

Lateral Promotion

Stretch Assignment

External Assignment Upward

Promotion Lateral

Assignment New

Assignment

Part Time Loan

New Candidate

New Leader

Exec Succession

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The Talent Mobility Formula Bringing the Talent System Together

DESIRED COMPETENCIES (KNOWLEDGE,

BEHAVIOR, SKILLS)

OPEN POSITIONS &

OPPORTUNITIES

INDIVIDUAL NEEDS / DESIRES

INDIVIDUAL DEVELOPMENT

PLAN (IDP)

VISION

STRATEGIC INITIATIVES

DESIRED BUSINESS

OUTCOMES

VALUES

MISSION

ORGANIZATION NEEDS

MOBILITY

STRENGTHS

DEVELOPMENT NEEDS

CAREER ASPIRATIONS

ANNUAL GOALS

Succession Management

Career Development

Individual Development

Plan (IDP)

Strategic Competencies Organizational

Planning / Analytics


Development Planning

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Entire Organization Must Contribute to World-Class Career Management

• Identify

Career Goals

• Maintain Profiles • Demonstrate

Values • Socialize

Interests • Create Internal

Network • Share Expertise

Employee • Define Job

Profiles • Provide Coaching • Assess Potential • Identify

Development Opportunities

• Provide Candid Feedback

• Share Talent Openly

Manager • Provides Tools &

Resources • Develop Career

Models • Facilitate

Process • Offer Career

Coaching • Career

Development Training

• Integrate with Talent Mgmt

HR • Infrastructure –

Process, Technology, People

• Create Culture of Mobility

• Communicate Expectations

• Create Transparent Marketplace

Company

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How The Puzzle Fits



Culture


Competency


Leadership


Mobility


Talent


Employment Brand


Hire

Driving Engagement

and Retention

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Modern, Disrupted L&D Building a Supply Chain of Skills

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E-Learning & Blended

Talent Management

Experiential Learning

Continuous Embedded

2001 2005 2015

Evolution of Corporate L&D From Content-Centric to Continuous and Experience-Centric

2010

E-Learning Get Materials Online

Content Management Taxonomy

Social, Collaborative Corporate University

Blended Programs

Learning Paths Role-Based

Self-Authored Extreme Blended

Gaming, Embedded, On-Demand

Rich Catalog University

2020

Learning Everywhere

All The Time

We are Here Intelligent Learning

Instructional Design Kirkpatrick

Career Curricula

Content Community

70-20-10

Job Relevant Classroom

LMS as E-Learning Platform

LMS as Talent Platform

LMS as Data (Where is the LMS?)

LMS as Experience Platform

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The Continuous Learning Model Education, Experience, Environment, Exposure

EDUCATION

EXPOSURE

ENVIRONMENT

EXPERIENCE

Intermediate – Grow in Role Current job development and competency expansion WHAT DO I NEED TO GROW IN MY CURRENT ROLE?

Immediate – Perform Well Performance support and other tools for point-of-need learning WHAT DO I NEED TO PERFORM NOW?

Transitional – Next Role Development of skills and relationships that will meet long-term business goals WHAT DO I NEED TO GROW IN MY CAREER?

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“SUPPLY CHAIN” VIEW OF SKILLS

of organizations have a senior leader running the training function

49% of organizations have a written business plan

for learning

<45%

70% 64% 43%

26%

48% 29%

HILO Overall

Competencies & Profiles

Development Planning

Career Paths

L&D Has Challenges Leadership & Governance

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Running L&D Is Complex

Build a local but federated learning organization

Rationale the clutter of content

Learn to leverage MOOCs, and SME authored content

Understand and drive learning culture

Rebuild the corporate university

Modernize learning infrastructure and measurement tools

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The Workforce is Flocking to MOOCs

1.6m 2.5m

3.0m 3.0m

9.0m 4.0m

5.0m 5.0m

10.0m 19.0m

5432

#15432

#1

Total number of licensed or registered users 5 largest providers in… Enterprise learning solutions MOOCs

Established enterprise learning solutions

Massive, open, online course providers

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Potential for MOOCs

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Learning as Solution for Recruiting

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Sum Total Skillsoft SAP Oracle Cornerstone

On Demand Saba

Blackboard

SkillSoft

Dupont

NetDimensions

Healthstream

Cross Knowledge

Meridian

Halogen Silkroad Peoplefluent

RISC

Elsevier

imc

IBM

Intellum

Kallidus

IBM

Absorb

RedTray

Expertus

Open Text

Lumesse

OnPoint Digital Intuition

ADP

Cegos

Bloomfire Wisetail

Desire2Learn

Docebo

Cyberwisdom

Digital Ignite

Healthcare Source

INFOR

Litmos

CoursePeer

Thomson Reuters

Underwriters Labs

BrainHoney Schoolology

TMS

K-12 / Higher Ed

Vertical Specialists

Social / Mobile

Content

The New Middle

Compliance

LMS Vendor Evolution

Skillsoft Sum Total

Content+Technology

Wiley CrossKnowledge

Content+Technology

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The 1990s-2000s LMS

Course Administration Enrollment and Scheduling

Resource Management Extended enterprise

e-learning e-commerce

Virtual classroom Assessment tool

Security and roles Reporting

Lear

ning

Adm

inis

trat

ion

Collaboration “Discussion Group”

Portals Lear

ning

Ex

perie

nce

The Modern LMS

“Old LMS” Feature Set + Deeper Analytics

Dynamic Profile Expert Directory

Communities Tagging

Content Management Ratings

Multi-rater coaching Feedback

Content Sharing Content Management

Mobile “New” virtual classroom

Highly Flexible UI

Talent Management Features

Administration

& Talent

Social & C

ollaboration U

ser Experience

LMS as “Experience Platform”

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Big Data in L&D

Big Data

Analytics for

L&D

Learning activity Employee demographics Employee activity Expert directory Job Performance Career movement

The “Netflix”

of Learning

• Recommendations • New Learning Paths

• Content De-Cluttering

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Talent Analytics The Time is Now

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Benefits & Compensation

Hiring Recruiting E-Learning Performance

Talent Integrated TM

Solutions Systems of

Engagement

Evolution of HR Systems M

AR

KE

T G

RO

WT

H -

AD

OP

TIO

N

2 0 0 0 2 0 1 2 P R O G R E S S I O N O V E R T I M E

Compensation

HRIS Benefits

Administration

Applicant Tracking

Recruiting Sourcing

Learning Management

Competency Management

Succession Management


Integrated Talent Mgmt

End to End Suite

Social Recognition

Integrated Recruiting

Back Office on-premise ERP

SaaS and Cloud

Integrated into Work

Consumer User Interfaces

Analytics Segmentation

Prediction

Mobile and Tablet, HTML5

ERP and HRMS

Integrated “Systems of Engagement”

Talent

Analytics

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Today: HR Analytics is Hot

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What Our Research Discovered Bersin by Deloitte Talent Analytics Maturity Model®

Level 4: Predictive Analytics Development of predictive models, scenario planning

Risk analysis and mitigation, integration with strategic planning 4%

Level 3: Advanced Analytics Segmentation, statistical analysis, development of “people models”;

Analysis of dimensions to understand cause and delivery of actionable solutions 10%

Level 2: Proactive – Advanced Reporting Operational reporting for benchmarking and decision making

Multi-dimensional analysis and dashboards 30%

Level 1: Reactive – Operational Reporting Ad-Hoc Operational Reporting

Reactive to business demands, data in isolation and difficult to analyze 56%

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What is Talent Analytics:

Bring HR & Business Data Together

Recruiting and Workforce Planning

Comp and Benefits

Performance Succession Engagement

Learning & Leadership

HRMS Employee

Data

Engagement & Assessment

+ Sales Revenue

Productivity

Customer Retention Product

Mix

Accidents Errors Fraud

Quality Downtime

Losses

Groundbreaking New Insights & Tools for Managers to Make Better Decisions

= Data management, analytics, IT, and business consulting expertise

+

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It Takes A Multi-Disciplinary Team

Connected To IT

Connected to Finance and

Operations

Connected to Executives

Connected to External

Data

Know the business well

Consultant with

business

Statistical rigor

Good with numbers

Curious, learning nature

Visual storytelling

Strong data management

Process oriented

World Class Analytics Team

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Focus on The Problem, not the Data Business problem first, then determine what data is needed

Why is turnover high in some areas?

What sales or service processes drive account renewal?

Which training programs drive higher performance?

How do we assess the “right” candidates for sales positions?

What will be our talent gaps next year based on retirement?

Business Problem Data

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Culture


Competency

Increasing Global

Leadership


Mobility


Talent

Managing A Compelling Employment

Brand


Hire

Driving Engagement

and Retention

Talent Imperatives for 2015

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A Time for Innovation: Bold CHRO

• 76% of candidates want to work for a company with “innovative work practices”

… yet

• 37% of HR managers say their “culture” prevents innovation

• 28% say they have no money to innovate

• 27% say they don’t have the experience or skills

What impact would innovative work and management practices have on your work?

“The Innovation Imperative,” June 2013, Korn Ferry International, n=4080

Recruiting & HR

The New Model for Talent Management: Agenda for 2015