Talent Management Module 5 PDF

BASICS OF HUMAN RESOURCE MANAGEMENT MODULE 5 Hon. Prof. (FH) Mag. (FH) Regina Rastbichler , MA  THE HRM LANDSCAPE HR- Strategy & Planning...

BASICS OF HUMAN RESOURCE MANAGEMENT MODULE 5 Hon. Prof. (FH) Mag. (FH) Regina Rastbichler , MA  THE HRM LANDSCAPE HR- Strategy & Planning Talent Competen Mgmt.& cy Mgmt. Developme Employ Change nt er Manageme Brandin nt Diversi g Talent ty Acquisiti Wor Retenti on k on Candida Compensati te on & Selectio Benefits HR n Socia HR Organization HR-IT Controlli 2 l Medi ng a MAIN QUESTIONS ► How can companies ensure that they have successors ready for key positions at any time? ► Which methods and criteria are typically used to identify talent inside companies? ► What are required conditions for employees to leverage their talent as part of their long-term career? 3 TALENT MANAGEMENT 4 Source: digitalHR.com 1. WHY TALENT MANAGEMENT? 5 WHY DO ORGANIZATIONS NEED TALENT DEVELOPMENT?  To compete effectively in a complex and dynamic environment to achieve sustainable growth  To develop leaders/experts for tomorrow from within an organization  To maximize employee performance as a unique source of competitive advantage To empower and engage employees:  Cut down on high turnover rates 6 Source: Janice Caplan, 2014  DEMAND, SUPPLY AND CONTEXT FACTORS FOR TALENT External context Employers MANAGEMENT (demand) Increasingly competitive Competitive advantage global markets Workforce Government policies flexibility/agility Technological Competition for labour developments „Employer of choice“ Employment levels Talent- agenda manageme Skills shortages nt Organisational Workforce context (supply) Business strategy Demographic trends Employee engagement Workforce diversity Recruitment and Perceptions of leaders retention Succession planning and managers Work-life balance Line Managment capability 7 Roles: WHAT IS A „TALENT“ Typical high potential in the company Potential for a next development step (temporary statement) Talents are characterized by specific and strategically relevant competencies Possible further criteria: performance; Willingness to take responsibility Willingness to be mobile; Background of experience Each company must define in their specific business context what talent is and means The definition what a talent is in the company is the starting point 8 for development of a TM-Strategy  CONVENTIONAL (EXCLUSIVE) APPROACH hig h Potenti al Performanc hig h e  Very few, who have a given talent (A-Performer, High Potentials)  They are a talent (selected „Elite“ that must be developed 9 and promoted into key functions) based on von Hehn, Svea, REASONS FOR CONVENTIONAL/EXCLUSIVE APPROACH. 10  INTEGRATED APPROACH Selection & Talented employees Number of Performanc e Mgmt. employe es Performance based on best fit  „Everyone has Talent“  Identify these talents , develop and make best use in the company 11 based on von Hehn, Svea,  TALENT MANAGEMENT DEFINITION IN TODAYS BUSINESS CONTEXT Talent management applies to everyone !  It focuses people on developing the capabilities that meet the business challenges on the horizon so that they have these capabilities needed when required  Talent management enables everyone to develop their talents and reach their full potential  This automatically takes care of highly ambitious, high potential people, high-flyers, and future leaders 12 Based on: Svea v. Hehn, 2016; Janice  INTEGRATED TM-MODEL (V. HEHN, 2016) Input Talent Management Output System HR Strategy Culture Practices Performance success Support overall business Line Mgrs. lead Talent Strategic goal Mgmt. their staff Identi- setting, Syste employee and analyzing ms result oriented ficatio current situation n Corpora Senior Mgmt. is involved and Employ te Planning Sucessio shows n ee Strateg activities engagement Planning Develop y + Roles & - ment Responsibilit es employees are open to change Define and continous Retention learning Recruiting measures and evaluation HR-Mgrs. act Provide proactively as necessary Business instruments, partners Context (e.g. societal-, market-, legal-, 13 13 e.g. regional factors)  HOW TALENT MANAGEMENT MEETS BUSINESS NEEDS Botto Employe e Shared m Engageme management line nt People databank People with Managin the right g capabilities risk when needed Self managed succession Missed Agility opportuni and Future future- ty orientati focus on 14 ©copyright Janice Caplan  THE BIG IDEAS OF „FOCUS ON THE FUTURE“ Formal processes for engaging people in the business strategy (eg. Business plans sessions) Informal processes that encourage regular dialogue about trends and what‘s going on in the outside world (e.g. networking, communities of practise). Get people excited about change and opportunity Visions and values that are truly lived (they are discussed regularly and role modeled by Mgmt.) Clear definitions of the functional and behavioural capabilites (competencies) the business will need to meet its future challenges. 15 Source: Caplan, J., THE BIG IDEAS OF „SELF- MANAGED SUCCESSION“ Most of learning, development, assessement and career practices should be directed towards future-focused capabilities or individual specific needs. Giving everyone the opportunity to have a long-term (career) development plan that aligns personal aspirations with business needs HR to provide tools and processes that will help to facilitate important conversations about performance and „careers“ between managers and their people Self-managed succession is a tripartite relationship beween providing tools (HR), giving feedback and support (Mgrs.) and taking advantage of Developmetn and opportunites 16 (employees) Source: Caplan, J.,  THE BIG IDEAS OF „PEOPLE DATABANK“ Understanding people‘s aspirations and their current capabilities and those being developed Taking adavantage of technology to make different data available to people across the businesses --- >Issue of Data Security Regulations! Using software and social media programs available to help people seek each other out to share ideas , learn and work together across boundaries (e.g. yello pages, communities of pratice) 17 Source: Caplan, J., THE BIG IDEAS OF „SHARED MANAGEMENT“ Clarify managers‘ roles based on their critical employee engagement responsibilites: providing insightful feedback, supporting development opportunities, communicating and assessing standards of performance HR to support managers and help them deal with high/poor performers 18 Source: Caplan, J., 2. STARTING POINT: „STRATEGY“ 19 RELEVANCE FOR KEY-/BOTTLENECK FUNCTIONS THROUGH TM ► Bottleneck functions are lo w hard to be filled from the outside. For key Tale functions you need the nt Internal Development ► best of the best. One solution might be to Availabili ty build an internal supply External through function easier Hiring to be filled (simple hig h hiring) and to develop lo Strategi hig w c h most talented Relevanc e people into key and bottleneck 20 functions Based on Trost, A. HR Strategies-Balancing stability and agility in times of digitazation, 2019 TYPES OF TM WITHIN THE HR PLAYING FIELD (HR TRIANGLE) Company is responsible for Central the development of the planning and most talented people. It People control does something with the develop people naturally. Doing nothing. Hierarch “The cream y and Hir Institutionalizati always stability Network comese to & the on s and pay top” agility People are responsible for their own development People- but will be supported by any mean centered enablement 21 Based on Trost, A. HR Strategies-Balancing stability and agility in times of digitazation, 2019  REACHING BUSINESS OBJECTIVES THROUGH TM 1. Evaluating and Defining the overall business strategy create future focus, e.g. SWOT Analysis 2. Planning TMS activities + Roles / Responsibilities: Qualitative/quantitative Workforce planning including Competency Profiles Employee identification and selection (internal/external recruitment) Development Planning based on potential future gaps Link with Performance Management Clarification of role HR / Line- and Senior Management 3. Define success criteria and measures 22 Conduct evaluation (e.g. BSC) Based on Hehn, Svea  ANALYZING THE CURRENT SITUATION: SWOT Societal factors (demography, values) Strengths Weaknesses Labour market Educational structure Market situation for the business Opportunitie Threats Legal constraints s Political aspects Strengths and activities of competition Regional factors + Corporate Culture 23 Budget! Based on von Hehn, S.,  EXAMPLE SWOT – ANALYSIS BUSINESS GOAL: BUS.EXPANSION AND STAFF NEW POSITIONS Internal Strengths : Internal Weaknesses: Considered attractive employer; High costs through external Implementation of a recruiting for higher postitions company wide competency (80% external, 20% internal) model No systematic succession planning Missing career/development paths External Opportunities: External Threats: Younger academics available Demographic change; through BA-studies Only few applications of experienced Managers/Professionals What are potential objectives/priorities 24 for TM ?  EXAMPLE: TALENT IMPLICATIONS OF BUSINESS STRATEGY Enter the key components of your business Strategy: Improve Current Business: Grow Current Business: Grow New Business: Next, list 3-5 trends that you see in terms of required talent in order to successfully implement your strategy. Talent Required: List 3-5 key implications that you see for your organization and talent going forward. Consider these as you build your talent grid Organization and Talent Implications: 25 Source: Regina Rastbichler, Hewlett- Packard  EVALUATING TM- ACTIVITIES INPUT – Factors Were processes/instruments used? How often?, Reaction of involved employees? Process Evaluati OUTPUT – Factors on Did the way processes/instruments were used deliver desired results? OUTCOME Factors Business Impact, ROI, Return on expectations 26 Based on Hehn, Svea,  Balanced Scorecard – example succession planning Retention Goal Measure Action......... Performanc Talent Developme Goale Measure Action Goalnt Measure Action Managagement......... System......... Succession Goal Measure Planning Target Action Positionin Number 80% of Systemizi g of of identified ng of identified people talent internal talent for placed, placed succession next level number within 24 planning: positions of months Establish people in „Talen 27 „talent Based on Hehn,v., t  EXAMPLES: SUCCESS CRITERIA AND INDICATORS Success Criteria Indicator (Key Performance Indicator) Acceptance of TMS Number of participants of instruments development activities Alignment of development activities to Competency Model Number of clicks for TM instruments Higher employee performance on HR website Number of positive feedback from customers Higher employee performance rankings Success rate of employees (Sales, Succession planning for key- Profit, Innovation process positions improvement Time in current job of high 28 3. COMPETENCY MANAGEMENT 29 INTEGRATED TM-MODEL (HEHN, 2016) Input Talent Management Output System HR Strategy Culture Practices Performance business success Support overall Line Mgrs. lead Talent Strategic goal Mgmt. setting, their staff Identi- analyzing employee and Syste l e current result oriented ms on d ficatio situation ym Corpor Senior Mgmt. is nc Employe involved and e et ate Planning Sucessio e p Strat activities + shows n Develop- egy Roles & engagement om Planning ment Responsibilites employees are C Define open to change and continous measures Retention Recruitin learning and g evaluation HR-Mgrs. act Provide proactively as Business necessary partners 30 Context (e.g. instruments, societal-, market-, legal-, e.g. regional factors)  EXAMPLE: ABB LEADERSHIP COMPETENCY MODEL 31  COMPETENCY ICE-BERG MODEL Technical knowledge, Visibl education Awareness of e industry standards Skills & Use of negotiation techniques Knowled ge Establish a partnership with customers Self Concept, Identity, values, believes Hidde Values Believes e.g. Integrity n Motives & Positive attitude toward personality trait others Concern for accuracy Desire and willingness to 32 Based on: Mc Clelland/Spencer,Lyle, succeed 1993  COMPETENCY APPROACHES PROF. JOHN ERPENBECK Competencies are abilities to act self- organised (physically motive and mentally) in s open problem and decision situations and in competencies Knowledge complex and chaotic Qualification systems Norm s Values 33  COMPETENCY DEFINITION ERPENBECK/ ROSENSTIEL Transf er Selforganised, Professional, Know-how, creative ability to creative action methods, skills, act in open qualification, (problematic) tools = situations 34  4 BASIC COMPETENCY DIMENSIONS (ERPENBECK&HEYSE) P- Personal A- Activity and M- Methods and S- Socio- Competence Action Professional communicative Competence Competence competencies e.g. the ability e.g. to act e.g. e.g. team flexibility, skills, ability reflexively and independenc objectivit on a self- y, to accept e, criticism organised basis project creativity, to evaluate management initiative, Ability to oneself, Ability to solve reliability, problems cooperate and willingness to creatively using communicate learn functional with others Cross-sectional (Meta-competencies): know- how and intrinsically methods competencies whose facets influence all four competence classes. E.g. media competence, management or leadership competence, innovation competence, 35 KODE ®X- COMPETENCY DICTIONARY (HEYSE&ERPENBECK) 36 LEVEL OF COMPETENCY FRAMEWORKS 37  USAGE OF COMPETENCY MODELS IN HR Successi Performanc on e Planning Manageme nt Recruitme Talent nt Review Competen cy Model People Potential Developme nt Assessme nt Source: Trost, A. & Jenewein, T. (Hrsg., 2011). 38 Personalentwicklung 2.0. Köln:  3. TALENT ASSESSMENT /TALENT REVIEW 39  TALENT ASSESSMENT REQUIRES COMPETENCIES ► An important part of your overall talent management strategy is the development of the process and criteria organizations will use to evaluate performance and potential, and to identify future leaders, successors, and/or high potential employees. ► An effective talent assessment process should be: Consistent across your organizations business units based on a common competency understanding Aligned to your organizations business needs and future leadership needs A multi-level process that involves several data 40 According to : points ASTD  DEFINING POTENTIAL Pre-requisites are: Definition of „Potential“ Visualization of different (hierachical) levels in the company, expectations for this level and required competencies Concrete observations over a defined time period which allow conclusions about desired future behaviour in specific areas Example for „Potential Definition“: A person has potential if he/she is a fast learner who safely and successfully takes on new tasks and responsibilities and shows results quickly. The person is credited with being able to take on a complex task (with more importance to the company) / higher 41 level within 12 or 24 months based on v. Hehn, S.,  THE 9-BOX GRID  The 9-box grid is a commonly used tool to discuss the strengths and development needs of employees  Commonly used in a group environment. Executives collectively review their workforce. These diverse perspectives provide a balanced view of the skills and growth areas of an employee  The grid can also be used by a single executive as a planning tool  The 9-box grid is the end product of a larger talent management process where executives identify organizational needs and critical job roles and abilities  Proactive leaders use the results of a talent assessment to initiate a development discussion and implement development plans 42  THE 9 BOX MATRIX Talent not To be nominated for To be nominated for used key- positions,discuss key- positions. Monitor adequately performance time with superior roadblocks (evlt. performance and Waiting for change?) retention risk ! Evtl. growing Challenge direction To be nominated for Potenti performer, or of further key- positions. Monitor performance decline. development and time with superior Ask for roadblockers job satisfaction performance and retention risk ! al Talent not used Evlt. Coaching Solid performers who needed, ask for job form the basis of the motivation company. Working without closer supervision. Motivating feedback and check for personal career aspiration Performanc 43 e  EXAMPLE: PERFORMANCE POTENTIAL GRID A1 A2 Hig Plan next move Apply multiple Provide development and h C1 extra retention Performanc coaching measures e Improveme A3 Potential nt Identify Measures next developme B nt opportunit Keep in y Lo C2 Place w Manage Out Lo Performance Hig w h 44 Source: Michaels. E, Handfield-Jones, H., & Axelrod, B. (2001). The War for Talent. Boston/Mass.: Harvard Business School Press.  EXAMPL E: Performance-Potenttial Matrix Adidas AG, published in Malessa&John, 2008 45 45  EXAMPLE: 4-BOX MATRIX hig h Work Horses Stars (Cash Performan Cows) ce Wild Cats Dead Wood (Question Marks) (Dogs) (Problem lo Employees) w lo High Mind wording w potential and 46 „labeling“ Source: Bühner 2005 TALENT REVIEW STRUCTURE L 1 Leadership Team L HR Business Partner 2 L 3 L 4 High Potential source: Prof.Dr. Armin Trost 47  POTENTIAL OBJECTIVES FOR TALENT REVIEWS Attain a broad view of the readiness of employees to meet current and future business needs and its strategy Gauge the health of the organization‘s pipeline of leadership talent Align individual career interest with opportunities for growth and development Identify high potentials for accelerated assessement and development in preparation for more-senior-level roles Identify near-term successor candidates for most critical roles 48 Source: Caplan, J. 2013  BENEFITS OF TEAM REVIEW SESSION OF PERFORMANCE/POTENTIAL MATRIX Exchange of standards – learn and achieve consistency Fair validation – more objective feedback as basis for decisions Clarification of misunderstandings – can be discussed as good preparation for employee feedback Development ideas on-the-job – exchange ideas with experienced colleagues, bring people to notice in other parts of the business Transparency – pressure to discuss potential issues and evaluation criteria publicly, reduce effects of silo working by creating synergies across divisions 49 Improved feedback preparation – collect arguments for (critical) based on v. Hehn, Svea,  DEVELOPING A SUCCESSION PLAN 50 50