One of the great paradoxes of the current economy is a relatively high level of general unemployment among Western economies and simultaneously, a very tight labor market for certain skilled roles. Anecdotes of hiring cycles in the six-month range for specialized developers or designers are not uncommon in software circles, and high-tech manufacturers voice frequent complaints about the lack of skilled talent. The key to solving these hiring challenges is to think differently about the problem. All too often, hiring managers and recruiters default to a “hiring” focused answer, when frequently the real answer lies in development, internal mobility, apprenticeship and long-term career and succession planning. In this session, we’ll talk about how all these pieces fit together and why “hiring for critical roles” is fundamentally the wrong strategy in most cases.

1. Hiring for Critical Roles: You’re Doing It Wrong
You can listen to today’s webinar using your computer’s
speakers or you may dial into the teleconference.
If you would like to join the teleconference,
please dial 1.408.600.3600 and enter access code: 922 774 593 #.
You will be on hold until the seminar begins.
#TMwebinar

2. Hiring for Critical Roles: You’re Doing It Wrong
Speaker: David Wilkins
Global HCM Solution Architect
Oracle
Moderator: Kellye Whitney
Managing Editor
Talent Management magazine
#TMwebinar

3. Tools You Can Use
• Q&A
– Click on the Q&A icon
on your floating toolbar
in the bottom right
corner.
– Type in your question in
the space at the
bottom.
– Click on “Send.”
#TMwebinar

4. Tools You Can Use
• Polling
– Polling question will
appear in the
“Polling” panel.
– Select your
response and click
on “Submit.”
#TMwebinar

5. Frequently Asked Questions
1. Will I receive a copy of the slides after the webinar?
YES
2. Will I receive a copy of the recording after the webinar?
YES
Please allow up to 2 business days to receive these materials.
#TMwebinar

6. Hiring for Critical Roles: You’re Doing It Wrong
Kellye Whitney
Managing Editor
Talent Management magazine
#TMwebinar

7. Hiring for Critical Roles: You’re Doing It Wrong
David Wilkins
Global HCM Solution Architect
Oracle
#TMwebinar

8. <Insert Picture Here>
Hiring For Critical Roles: You’re Doing It Wrong
David Wilkins
Blog: talent-management-blog

9. Executive Summary
• High unemployment is a myth (at least for critical
roles)
• Skill shortages are bad and getting worse
• “Hiring” as a default approach is flawed
– It costs more.
– It results in lower productivity and performance.
– It hurts engagement and turnover for hi-pos.
• We need to reprioritize development and mobility
• To do this, we need better talent intelligence, job
definitions, and matching tools
• But mostly we need a strategy
8

10. Poll
• Are you having difficulty filling critical roles?
• Yes
• No
9

11. The “High Unemployment” Myth
Education level (March, 2012) Unemployment Rate
Less than high school diploma 12.9
High school diploma 8.3
Associate’s degree or some college 7.3
Bachelor’s or higher 4.2
Master’s (as of May 2011) 3.6
Doctorate’s or Professional (as of May 2.4
2011)
For critical roles, which group are you hiring from?
http://www.bls.gov/news.release/empsit.t04.htm
http://www.bls.gov/emp/ep_chart_001.htm
10

12. The Challenge of Critical Roles
The R&D shortage is particularly
acute in industries where
product innovation is critical.
Among the Technology/ Media/
Telecom companies surveyed,
40% predict a severe shortage
of R&D talent, while 39% of
Consumer/ Industrial Products
companies surveyed and 37% of
Life Sciences/Health Care
companies surveyed foresee
shortages in this area.
Talent Edge 2020: Blueprints for
the new normal, December
2010, Deloitte.
11

13. The Challenge of Critical Roles
The R&D shortage is particularly
acute in industries where
product innovation is critical.
Among the
Technology/Media/Telecom
companies surveyed, 40%
predict a severe shortage of
R&D talent, while 39% of
Consumer/ Industrial Products
companies surveyed and 37% of
Life Sciences/Health Care
companies surveyed foresee
shortages in this area.
Talent Edge 2020: Blueprints for
the new normal, December
2010, Deloitte.
12

14. And the Future Looks Worse
Georgetown University Center on Education and the
Workforce on shortfall of college grads in 2018
3,000,000
Accenture study from 2006 showed that STEM
enrollments would need to increase by
between 2006-2016 to meet demand
20-30%
Instead, enrollments have GONE DOWN.
13

15. Poll Question
• How do you typically fill critical roles?
• Mostly external hires
• Mostly internal hires
• A pretty even mix of each
14

16. Challenges in Hiring Externally for Critical Roles
• Cost
• Time
• Retention
• Engagement
15

17. External Hire Challenges: Cost and Time
• External hires cost more
– Critical roles are usually industry-wide, not company specific
– Thus, there is usually high demand for limited resources
– Critical roles are critical for a reason – unique skills, high
need
– Scarcity + high demand = high cost
– “Unknowns” in external hiring = more focus on “observable
characteristics” such as education / experience =  pay
• Scarcity also often means head hunters which adds
more cost
• Scarcity also means longer time to hire, adding
opportunity cost
16

18. External Hire Challenges: Cost and Time
• External hires cost more
– Critical roles are usually industry-wide, not company specific
– Thus, there is usually high demand for limited resources
– Critical roles are critical for a reason – unique skills, high
need
– Scarcity + high demand = high cost
– “Unknowns” in external hiring = more focus on “observable
characteristics” such as education / experience =  pay
• Scarcity also often means head hunters which adds
more cost
• Scarcity also means longer time to hire, adding
opportunity cost
17

19. External Hire Challenges:
Retention, Productivity, and Engagement
• External hires aren’t as productive as internal hires; it
takes 2 years for new hires to get “up to speed”
• Externals average shorter tenures than internal hires
• Externals average lower performance reviews
• Hiring outside = risk to existing top performers and
high potentials
– “Lack of career development” is #1 reason for dysfunctional
turnover
– “Training and development opportunity” is #1 driver of
employee engagement
– “More opportunities to do what I do best” is #1 driver of
employee engagement
18

20. External Hire Challenges:
Retention, Productivity, and Engagement
• External hires aren’t as productive as internal hires; it
takes 2 years for new hires to get “up to speed”
• Externals average shorter tenures than internal hires
• Externals average lower performance reviews
• Hiring outside = risk to existing top performers and
high potentials
– “Lack of career development” is #1 reason for dysfunctional
turnover
– “Training and development opportunity” is #1 driver of
employee engagement
– “More opportunities to do what I do best” is #1 driver of
employee engagement
19

21. Why Does Talent Leave?
20

22. Yet We Know Very Little About Our Talent:
Performance Management and Compensation
21

23. Yet We Know Very Little About Our Talent:
Performance Management and Compensation
22

24. Yet We Know Very Little About Our Talent:
Succession and Talent Mobility
23

25. Yet We Know Very Little About Our Talent:
Succession and Talent Mobility
24

26. Yet We Know Very Little About Our Talent:
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.
25

27. Addressing the Problem
External Hires Internal Hires
• Fresh eyes and • Anytime the
perspectives other criteria
• High growth, don’t apply…
new territories, • In other words,
new strategic this should be
directions the “default”
model
26

28. Your Default Hiring Flowchart
Catalog
External
Talent
Talent
Catalog Profiles
Internal
Talent
27

29. Your Default Hiring Flowchart
Catalog
External
Talent
Talent
Catalog Profiles
Internal
Talent
Catalog Job
Requirements Job Roles
28

30. Your Default Hiring Flowchart
Catalog
External
Talent
Talent
Catalog Profiles
Internal
Talent
Match Potential
Candidates
Catalog Job
Requirements Job Roles
29

31. Your Default Hiring Flowchart
Catalog
External
Talent
Talent
Catalog Profiles
Internal
Talent
Potential Green light
Match Assess Gaps
Candidates Candidates
Catalog Job
Requirements Job Roles
30

32. Your Default Hiring Flowchart
Catalog
External
Talent
Talent
Catalog Profiles
Internal
Talent
Critical
Potential Green light Talent
Match Assess Gaps Add
Candidates Candidates Pipelines
Catalog Job
Requirements Job Roles
31

33. Your Default Hiring Flowchart
Catalog
External
Talent
Talent Development
Catalog Profiles Plans
Internal
Talent
Critical
Potential Green light Talent
Match Assess Gaps Add
Candidates Candidates Pipelines
Catalog Job
Requirements Job Roles
32

34. Your Default Hiring Flowchart
Catalog
External
Talent
Talent Development
Catalog Profiles Plans
Internal
Talent
Critical
Potential Green light Talent
Match Assess Gaps Add
Candidates Candidates Pipelines
Update
Catalog Job Requirements
Requirements Job Roles
33

35. Catalog
Address Your Talent Intelligence Gaps Internal
Talent
• Where are your skill and competency gaps?
• Do you have robust talent data for your team?
– Pre-hire experience, job roles
– Skills, capabilities, competencies
– Self-identified skills developed in personal life
– Career aspirations and related gaps
– Learning and development plans
– Crowd-sourced assessment of potential, capabilities, fit, etc…
– Current and automatically updated talent data
34

36. Address Your Job Role Gaps Catalog Job
Requirements
• Have you defined requirements for each job?
• Do you have job families?
• Can you identify potential career paths based on
competencies, capabilities, experience?
• For critical roles, have you identified longer-term
competency development strategies?
– Required experience and levels of mastery
– Education and formal knowledge requirements
– Bridge roles or “stepping stone” roles that provide experience
– Assessment models
35

37. Developing Your Talent Development
Assess Gaps
Plans
• Career Aspirations
• Skill Gap Assessment
• Action Learning
• Stretch Goals and Assignments
• Talent Mobility
• Multi-stage Development and Competency Model
• Mentor / Mentee Models
36

38. Update Requirements Update
Assess Gaps
Requirements
• Is the job definition static or dynamic?
• How much “wiggle room” is there to rethink work
assignments and responsibilities to overcome gaps?
• Do requirements change over time in response to
changing competitive landscape, strategy, new
opportunities or threats?
• Job roles and requirements are a means to an end
– Reflection of “best” way to organize work, not the “only” way
– Often better to rethink work assignments than lose a top
performer or hi-po for lack of internal opportunities
37

39. Matching – Not Deep Enough Match
• Goal is not to “hire,” but to match talent to
requirements
• Yet we don’t know the basics
48%
say that their skills go
feel that their work history &
experiences are not leveraged
by their employer
75%
unnoticed
38

40. Matching – Not Social Enough Match
Those who know talent best aren’t involved in matching
Professional & work Professional & work
capabilities aspirations / ambitions
None of the
Other None of the Other above
1% above 1% 6%
Don’t know 3% My family / Don’t know My family /
5% partner 5% partner
21% My line 43%
manager
My line manager 13%
22%
My friends HR software /
outside of work systems
4% 1%
HR software /
systems
1% My colleagues
My colleagues and peers
22% My friends
and peers
outside of work
43%
9%
39

41. Matching – Not Smart Enough Match
40

42. Recruiters – Not Smart Enough
• What’s the #1 predictor of job performance?
– Interview
– References
– Job Tryout
– Cognitive Ability or Psychomotor Skills
– Educational Background
– Experience
– Training and Experience Rankings
– Academic Achievement
– Interest
– Age
– Biographical Inventory
41

43. Research Data – Predicting Job Performance
42

44. Blend Your Critical Talent Pipelines Critical
Talent
Pipelines
• Internal candidates
• External candidates
• Stop-gap contingent workers
43

45. 44

46. 45

47. 46

48. Wrap up
• High unemployment is a myth (at least for critical
roles)
• Skill shortages are bad and getting worse
• “Hiring” as a default approach is flawed
– It costs more.
– It results in lower productivity and performance.
– It hurts engagement and turnover for hi-pos.
• We need to reprioritize development and mobility
• To do this, we need better talent intelligence, job
definitions, and matching tools
• But mostly we need a strategy
47

49. Suggested Resources to Follow
http://www.slideshare.net/TaleoResearch
http://www.taleo.com/talent-management-blog/
48

50. Join Our Next TM Webinar
The Evolution of Reference-Checking Into a
Strategic Hiring Solution
Thursday, June 14, 2012
•
TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific
Register for upcoming TM Webinars at
www.talentmgt.com/events
Join the Talent Management magazine Network
http://network.talentmgt.com/
#TMwebinar