Human Capital Growth Webinar: 2018 HCG talent development benchmark study

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2018 HCG Talent Development Benchmark Study
2018 HCG Talent
Development
Benchmark Study
Part I
May 2018

2
Authors
Shreya Sarkar-Barney, Ph.D.
CEO & Founder
Human Capital Growth
Alyssa Perez
Consultant
Izabela Widlak, M.S.
Sr. Research Consultant

3
Leadership
Excellence
Talent
Management
Excellence
US India
We help organizations achieve better outcomes through talent using
science, analytics, and empathy.
Drive business impact
through timely talent
actions
Evidence-based solutions
for measurable and
sustained improvements in
leadership

Agenda
 Study context
 Study participants
 Results of the L&D Benchmark study
 Q&A
4

Part II
Mark your calendars!
Next Webinar
Wednesday, June 6th 2018, 8am-9am PT
5

Human Capital Dashboard
C-Suite Perspectives
85.2 million
skilled worker
shortage by
20301
1https://www.kornferry.com/institute/talent-crunch-future-of-work?reports-and-insights
3 https://www.ddiworld.com/DDI/media/trend-research/glf2018/global-leadership-forecast-2018_ddi_tr.pdf?ext=.pdf
4Economist Intelligence Unit/CMA Report (2012): Talent pipeline draining growth
60%
Failure to
attract/retain top
talent3
43%
Inadequate
human capital
reason for not
achieving
financial targets4
40%
Inadequate
human capital
reducing
company’s ability
to innovate4
6

Return on Human Capital Investment?
7
Increase in annual HR budgets1
4% - 8%
2007-2017
HR performance scorecard2
D – C+
1Bloomberg BNA (2016), 2Deloitte (2017), 3 Statista
Annual estimated training budgets in 20173
$93 Billion (US)
$180 Billion (Global)

The Opportunity!
8
24%
Firms that make the right human capital
investments stand to gain up to a 24% lift
in their operational and financial
performance

Talent Development Excellence
Learning and
Development
Career
Development
Leadership
Development
Current role
Future role Broader role
Survey Goals
• Understand current practices in talent
development
• Assess use of science-backed practices
• Degree of integration across talent
development practices
9

Highlights
10
Employee Manager L&D Function
• Plenty of access to training
• Organizational support for closing
skills gaps
• Limited opportunities to develop deep
skills for the future
• Yet to benefit from training that is
personalized and impactful in
preparing for a future role
• Although managers play an important
role in driving training impact, about half
of them are uninvolved.
• Managers not skilled in identifying skills
gaps
• Positive culture of learning evolving in
organizations
• Training satisfaction continues to be the most
popular learning effectiveness measure, despite its
limited informational value
• Innovation is the least expected outcome of
training
• Training analytics yet to mature
Consistent with our mission, this research was designed to assess success of current talent
development efforts and contrast with science-based practices.

Benchmark Study Participants
Learning and
Development
N=26
(70%)
Career
Development
N=15
(41%)
Leadership
Development
N=21
(41%)
All three areas
N=9
(24%)
50Organizations from across the global
37usable records
*Minimum 5 responses for inclusion in analyses
11

Industry Segments
3% 3%
5%
3%
8%
5%
5%
11%
30%
3%
8%
5%
11%
Aerospace & Defense
Manufacturing
Education
Government
Insurance
Manufacturing
Agriculture
Pharmaceuticals
Technology
Automotive
Other
Banking
Business Services
12

Entity Type
3% 8%
51%
38%
Government Nonprofit
Publicly traded Private
3%
5%
40%46%
3% 3%
Early stage start-up Funded late stage start-up
Growth Mature
Plateauing Renewal
Organizational Lifecycle
13

Size of the Workforce
24%
16%
8%
6%
5%
11%
30%
1 - 999
1,000 - 4,999
5,000 - 9,999
10,000 - 19,999
20,000 - 49,999
50,000 - 99,999
More than 100,000
14

Role in the HR Function
2%
11%
3%
3%
8%
11%
30%
11%
5%
16% Analyst
Business Partner
CHRO
CLO
Consultant
Director
Manager
Specialist
Vice president
Other
15

Learning and Development
Benchmark Results
16

Definition of Learning
17
A relatively permanent change in
behavior as a result of experience
and practice

Learning Excellence
Learning Effectiveness
Learner
Characteristics
Learning
Design
Learner’s Work
Environment
Needs
Analysis
Continuous
Improvement
Learning Outcomes
Skill Gain Engagement Safety Quality Productivity
Strategy Culture Budget Resources Technology
BEFORE AFTERDURING
18

78
67
61
56
56
50
50
Our L&D efforts have consistently resulted in closing the skills gaps of our
employees
Our L&D efforts are shaping the culture of our organization
Our L&D efforts are helping build a strong employer brand
Our L&D function has a reputation of growing talent internally
Our L&D team has an effective approach to distilling the knowledge and
skill requirements from our business strategy
Our company has a culture of problem-solving through continuous learning
Our L&D team is highly effective in developing new skills in a timely
manner
Results indicate proportion of respondents who “strongly agreed” or “agreed” to the statements.
L&D Effectiveness
Learning
Effectiveness
19

78
67
56
56
22
22
Skill development is tied to a business activity and
a timeline to ensure it is prioritized
An off-the-shelf training solution is purchased and
delivered
The skill need is noted in the employees’ learning
plans, and a target completion date is assigned
Resources are reallocated to accelerate the critical
skill development for the target employee
segment
Business leaders actively sponsor critical skill
development initiatives
An expert is recruited to grow the critical skills in-
house
Approaches to Handling Requests for Critical Skill Development
Needs
Analysis
20
Conducting a needs
assessment
4%-9%
lift in learning
effectiveness

14%
Cognitive
Ability
13%
Work
Environment
Learner Characteristics
[VALUE]%
18%
[VALUE]%
[VALUE]%
Employees' belief that they can apply the learned
material on the job
Employees' motivation and willingness to learn the
new skills
Employees' ability to learn
Employees' personality characteristics such as
conscientiousness, learning orientation, etc.
Learner Characteristics Measured During Learning Activities
 5%
 8%
 8%
 8%
Learner
Characteristics
21

Where do you look for inspiration (the most) when designing talent development
programs?
11%
11%
30%
33%
15%
Ask friends and colleagues inside and outside the
organization
Look for recommendations from business leaders in
the organization
Practices adopted by leading organizations
Read scientific publications for research findings on
what works
The Harvard Business Review or similar publications

Critical Training – Learning Design
82
73
55
46
46
46
36
18
There are multiple opportunities to practice the new skill
The learning content is divided into modules or subsections
Employees receive feedback on their training performance
Employees take a knowledge test before and after learning
Employees take a knowledge test after learning
Employees complete an assignment after learning
Employees set skill application goals before the training ends
The assessment results are used to channel the right level of learning
content
Learning
Design
23

91
91
91
82
73
46
46
36
27
Funding to attend external training
Request internally-sourced training
On-the-job training
Mentoring
Funding to attend conferences
Tuition assistance
Cross-training
Shadowing
Apprenticeship
Learning and development options available to employees at all
levels
Learning
Design
24

Open and closed skills
Blume, B. D., Ford, J. K., Baldwin, T. T., & Huang, J. L. (2010). Transfer of training: A meta-analytic review. Journal of management, 36(4), 1065-1105.
25
Closed Skills Open Skills
 Skills learned in a training environment can be
reproduced identically in the work setting
 Easier to find opportunities to apply the skills
 Rapid feedback and reinforcement
Examples:
Programming
Data analyses
 Skills are highly variable, there is not single
correct way to act
 Requires higher-level of cognitive components
 More prone to skill decay
 Requires greater support for transfer
Examples:
Leadership
Negotiation

58
50
8
For critical skills, the physical setting of the training
is similar to the real work setting
Most learning offerings are designed to provide a
realistic psychological experience through role
plays and simulations
For high risks skills, augmented reality is used to
provide a realistic experience in a safe environment
Learning
Design
Use of design elements in L&D offerings
26

MANAGER AND LEADERSHIP TRAINING
Leadership Development
People manager development (beginner & advanced)
Supervisory Training
New Manager Training
New hire onboarding
Graduate/Entry Level Training
Recruiting skills
Mentoring
Feedback
Emotional Intelligence
Virtual Teams
Digital Skills
Managing Complexity
Risk mitigation
Innovation
DATA AND ANALYTICS
Metrics
Analytics
Machine Learning
Data privacy and security
SOFTWARE AND ENGINEERING SKILLS
Engineering Skills
Full Stack Developer Program
Agile
Architecture
PRODUCT/INDUSTRY SKILLS
Maintenance Training Program
Operator Training Program
External Certifications
Product Training
Tools Training
Industry Domain
FUNCTIONAL SKILLS
Sales & service
Project and Program Management
Quality management
Safety Training
Compliance Training
ALL EMPLOYEE TRAINING
Online learning libraries for all employees
Mandatory Training
On the job training (OJT)
Training programs most critical for business success
Learning
Design
27

Talent vs. Human Capital Development
Talent Development
• Developing individuals’
capabilities
• Develop job relevant skills
• Closing skill gaps
Human Capital Development
• Building the collective capacity
of a team
• Develop critical capabilities
needed to win in the
marketplace
• Addressing unique needs of the
organization
28
For more information check out our Webinar on ‘Designing Learning Strategy to Deliver Competitive Advantage’

Initiatives to Develop Human Capital
35
35
31
We have several training options to develop the
collective capacity of teams
Teams engage in cross training to improve team
performance
We use team training to develop shared mental
mental models around a critical business process
Learning
Design
29

56%
11%
22%
11%
There are no mandated training hours
Greater than 50 hours
31-40 hours
21-30 hours
Mandated Training Hours
Learning
Design
30

Learner’s Work Environment – Embedding a Learning Culture
Learner’s
Work
Environment
31
Climate for learning refers to
organizational cues that
signal that learning is valued,
recognized, and rewarded.
E.g. manager goals, peer support,
equipment availability, and
opportunity to practice trained
Skills.
Explains 7% of the variance in training
effectiveness
78
67
65
65
56
56
42
Application of new skills on the job are
recognized and rewarded
Employees set learning goals before starting
their learning
Employees are encouraged to take charge of
their own learning
Funding is made available to support all
employees' learning and development needs
Employees have projects where they can utilize
actively practice their new skills
Employees are held accountable to find
opportunities to apply their new skills
When screening job candidates, they are
assessed for their ability to learn

Managerial Support for Training
56
50
44
44
44
42
Managers encourage the use of their employees'
newly learned skills
Managers have a good understanding of the
strengths each employee brings to their role.
Managers and employees share the learning
goals
Managers discuss the relevance of their new
skills with the employees
Employees set application goals with their
managers to utilize their new skills
Managers have a good understanding of the gaps
and development needs of each employee,
relative to the requirements of their role.
58%
of managers are not
equipped to assess
gaps and development
needs of each
employee
Learner’s
Work
Environment
32

At your organization, what is the expected outcome of a high-profile talent
development program?
15%
4%
4%
22%
56%
It will address 100% of the critical talent need
There is no stated expectation of a return

Metrics to Measure L&D Effectiveness
(Organizational)
55
55
50
40
40
35
35
20
20
10
Productivity
Employee engagement
Quality
Speed of work outputs
Internal promotions
Retention
Sales
Margins
Errors in work outputs
Innovation
Continuous
Improvement
34

L&D Effectiveness Measures
(Learner)
80%
70%
70%
60%
50%
50%
40%
35%
5%
Learners' ratings of satisfaction with instructor
Number of training hours completed each year
Learners' ratings of satisfaction with training
Knowledge gain as measured by a test
Learners' ratings of utility of training
Job Impact as measured by learner and manager surveys
Changes in business outcomes as a result of the training
Skill gain as measured by simulations
Return on investment
1%
1%
21%
6%
11%
Continuous
Improvement
35
>7%
Key Questions
Was the training effective?
How can the training be
modified to advance learning
outcomes?

When your team becomes aware of highly effective talent development practices, how
easy or difficult is it to influence your leadership to adopt the practice?
11%
41%
11%
37%
Almost impossible
Challenging
Extremely easy
Somewhat easy

When influencing your leaders to replace existing practices with more efficacious practices
which of the following is most effective.
33%
15%
15%
37%
Designing an experiment to establish the
efficacy before rolling it our more widely
Sharing testimonials from industry leaders
who support the practice
Showing the findings from scientific research
Showing which other reputable organizations
are using the practice

38
What’s missing, as a majority of North American
CEOs indicated in a recent poll, is the ability to
embed data analytics into day-to-day HR processes
consistently and to use their predictive power to
drive better decision making.
A CEOs Guide to Competing Through HR

Key Take Aways
• Opportunity to shift mindset of training as a cost to training as a
strategic value driver
• Suboptimal choices are driving down impact, resulting in perennial
challenges
• Devil is in the details, no silver bullet
• Where you invest matters
• Training can drive sustained improvements in human capital
• Use scientific evidence and analytics
39

If you found value in this webinar, you may also be interested in
our webinar on learning strategies and our curriculum on talent
development.
40
Checkout these resources
Designing a Learning
Strategy to Deliver
Competitive Advantage
WEBINAR
Grow your expertise in
evidence-based talent
development
LEARNING +
CERTIFICATION

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