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Copyright © 2011 Bersin & Associates. All rights reserved.
Data Science Comes to
Human Resources
Moneyball comes to HR
Josh Bersin
President and CEO, October, 2011
Copyright © 2011 Bersin & Associates. All rights reserved. Page 2
Bersin & Associates
 Who We Are
• Bersin & Associates empowers HR and learning organizations to
drive bottom line impact through world class research and
consulting
 Practices
- Human Resources
- Enterprise Learning
- Talent Management
- Talent Acquisition
- Leadership & Succession
 Offerings
• WhatWorks® Membership: Research, Tools, Education,
Consulting
• IMPACT: The industry’s premiere conference on the
Business of Talent
• BersinBasics®: Fundamentals of Talent Management for
Business Professionals at All Levels
Human
Resources
Leadership
Development
Learning &
Development
Talent
Acquisition
Talent
Management
Copyright © 2011 Bersin & Associates. All rights reserved. Page 3
Introduction to
Performance
Management
Understanding
Multi-Rater
Assessments
Planning for
Succession
Management
Understanding
Pay for
Performance
Understanding
Leadership
Development
How to Assess
People
Intro to
Competencies
in Talent
Management
Intro to
Competencies in
Talent
Management
Using
Competencies in
Talent
Management
Understanding
and Using Job
Profiles
Cascading &
Aligning Goals
Fundamentals of
Goal Setting
Understanding
Performance vs.
Potential
Conducting a
Performance
Appraisal
Introduction to
Learning &
Development
Strategy
Introduction to
Informal Learning
Learning
Capability
Development &
Culture
Creating
Development
Plans
Conducting a
Performance
Appraisal
Fundamentals of
Goal Setting
Fundamentals of
Coaching
How to Assess
People
Understanding
Pay for
Performance
Performance &
Succession
Management
Leadership
Development
Fundamentals
Competencies
& Job Profiles
Coaching & Goal
Development
Learning &
Development
Strategy
Fundamentals of
Performance
Appraisals
F U N D A M E N T A L S O F T A L E N T M A N A G E M E N T
F O R B U S I N E S S P R O F E S S I O N A L S
Copyright © 2011 Bersin & Associates. All rights reserved. Page 4
Agenda
 Today’s Business Environment
 Talent Markets: Out of Balance
 Modern High-Impact Talent Management Strategies
 Need for Assessment Science
 How Moneyball applies to HR
 Why Data Science Matters
Copyright © 2011 Bersin & Associates. All rights reserved. Page 5
Today’s Business
Environment
Copyright © 2011 Bersin & Associates. All rights reserved. Page 6
2011 Business Environment
Globalization, Innovation, Cost Containment
What Are Your Organization’s Top Business Challenges for 2011?
© Bersin & Associates, Corporate TalentWatch®
Research, Senior HR and Business Executives,
1/2010
■ June 2011 ■ June 2010
0% 10% 20% 30% 40% 50% 60% 70%
Rapid business growth
Acquisition or mergers
Global expansion
Launching new products and services
New top management team
Diminished access to capital
Declining margins
Need to Accelerate Innovation
Competitive threats
Severe business downturn
Financial pressure to cut costs
+90% Increase
+100% Increase
+400% Increase
35% of organizations see the need to
accelerate innovation and globalize –
the highest level in four years…. yet…
51% struggle to hire the right talent,
despite high unemployment…
Copyright © 2011 Bersin & Associates. All rights reserved. Page 7
The Global Auto Marketplace
Automobile Sales – U.S. vs. China
0
2
4
6
8
10
12
14
16
18
20
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
MillionVehiclesSold
U.S.
China
13.9 million
10.4 million
Copyright © 2011 Bersin & Associates. All rights reserved. Page 8
Ford Figo Story
Designed in
India for the
Indian Market
Manufactured
in Chennai by
Indian Staff
Size, Shape,
and features
designed for
lifestyle and
roads in India
Colors, face,
and styling
designed for
Indian tastes
Ford Figo – Fastest Selling Car in India
Copyright © 2011 Bersin & Associates. All rights reserved. Page 9
The Hyper-Connected Workforce
Copyright © 2011 Bersin & Associates. All rights reserved. Page 10
What would You Be Willing to Give Up for
a Week to Keep your Mobile Phone?
 Brushing teeth: 22%
 Sex: 33%
 Exercise: 54%
 Caffeine: 55%
 Gaming is now the fastest
growing application on
mobile devices
Copyright © 2011 Bersin & Associates. All rights reserved. Page 11
The Borderless Workplace
Employee
Mentor
Peer
Partner
Candidate
Customer
W O R K P L A C E
Transparent
Dynamic
Performance-driven
Specialized
Interconnected
New Models for HR & L&D
W O R K F O R C E
Connected
Global
Multi-Generational
Mobile
Transient
New Models for Career
Manager
L I F E S T Y L E
750 million people on Facebook
135 million people on LinkedIn
75% of workers are mobile
BigData is Everywhere
Copyright © 2011 Bersin & Associates. All rights reserved. Page 12
Today’s Talent Marketplace
Out of Balance
Skills and
Experience Shortage
Specialization
Free Agent
Economy
Too Many
Candidates
Copyright © 2011 Bersin & Associates. All rights reserved. Page 13
Copyright © 2011 Bersin & Associates. All rights reserved. Page 14
The Ill-Prepared US Workforce
 Only 32% of college graduates
have “excellent” skills to enter
the workforce
 Only 16% of high school
graduates have such skills.
Missing are:
• Professionalism/work ethic
• Creativity and Innovation
• Lifelong learning/self-direction
• Critical thinking/problem solving
 Only 18% of workforce training
programs raise skills from
“deficient” to “adequate”
Copyright © 2011 Bersin & Associates. All rights reserved. Page 15
A Free Agent Workforce
 Job tenure for under-35 year
olds is 2.5 years
 The average worker today will
have 11 jobs by the age of 45
 2/3 of all employers are
increasing their percentage of
contingent workers
 We estimate that as much as
40% of the US workforce is
currently on a contingent basis
Copyright © 2011 Bersin & Associates. All rights reserved. Page 16
High Performing Organizations Understand This
Increasing Specialization
 Expertise drives competitive
advantage
 Specialization improves
quality and reduces cost
 Deep skills developed
through “deliberate practice”
and reinforcement
 Deep skills come from a range
of developmental experiences
 We need career development
in all critical job roles
Back Office, Operational, Contingent Employees
Functional Specialists / Front-Line Employees
Top
Management
Senior
Management
Middle
Management
Senior Specialists
First Line
Management
The
Experts
Copyright © 2011 Bersin & Associates. All rights reserved. Page 17
Change in Employment Contract
 In 2011 32% of employees are “planning
on leaving” their employers, vs. 19% two
years ago
 59% of employees believe their employer
is a sound “long term” place to work vs.
65% over last three years
 Only 42% of employees believe that
promotions go to the “most qualified”
employees
Mercer Whats Working
Research, October 2011
Loyalty
Career
Equity
Copyright © 2011 Bersin & Associates. All rights reserved. Page 18
The Workforce Really Is Younger….
“By 2013, 47% of employees will be those born after 1977.
-- US Census Bureau
And…Younger employees are much more likely
to leave their employers.
Under 25 year olds are 10% more likely
to want to leave, and under 35 are 5% more likely.
Mercer October 2011
This generation has a very different view of work and, therefore, of loyalty.
They see work as a mutually beneficial exchange with their employer and,
when it’s no longer working for them, they plan to move on.
There is no strong sense of allegiance to the organization or expectation of
long-term employment. Their allegiance is primarily to themselves and their
careers, and that has major implications for how employers manage this
youngest segment of their workforce.”
Mercer October 2011
Copyright © 2011 Bersin & Associates. All rights reserved. Page 19
What Makes People Want to Stay?
3
2
1
So….hiring and promoting the “right people” and
developing the “right leaders” has a multiplying
effect on retention, engagement, and performance.
Copyright © 2011 Bersin & Associates. All rights reserved. Page 20
What Talent Management is
All About
Copyright © 2011 Bersin & Associates. All rights reserved. Page 21
Why Talent Management is Needed
Learning&Development
Sourcing&Recruiting
PerformanceManagement
LeadershipDevelopment
SuccessionPlanning
WorkforcePlanning
Compensation-Benefits
Traditional Silos of HR
 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
Copyright © 2011 Bersin & Associates. All rights reserved. Page 22
Talent Strategy
& Planning
Sourcing
& Recruiting
1
2
Performance
management
Learning &
Development
4
Succession
planning
5
Leadership
Development
6
Integrated Talent Management
3
HR Systems
& Metrics
Compensation
7
Competency
Management
Global
Recruiting
Efficiency and
Effectiveness
Team alignment
Pay equity
Managerial
expertise
Deep expertise
Generational
evolution
Productivity
Career
Development
New leadership
models and
needs
Total talent
mobility
Talent pools
and segments
Effective pay
equity and
efficiency
Comparative
pay analysis
Pay for
performance
Future planning
Scenarios
Business level
talent plans
Gap and risk
analysis
Copyright © 2011 Bersin & Associates. All rights reserved. Page 23
Talent Management Maturity Model®
Level 1: Siloed HR Processes
Individual HR processes or silos;
may have systems in place but not connected
Level 2: Standardized Talent processes
Talent processes consistent and tailorable, some integration;
several systems connected through manual processes
Level 3: Integrated Talent Management
Heavy focus on connecting systems and processes;
single person or team responsible for talent initiatives
Level 4: Strategic Talent Management
Fully integrated processes and systems
used to make business decisions. TM is business-integrated
7%
20%
45%
28%
Copyright © 2011 Bersin & Associates. All rights reserved. Page 24
© Bersin & Associates
TalentWatch, Fall 2011, n=283
Today’s Talent Challenges
Copyright © 2011 Bersin & Associates. All rights reserved. Page 25
Back Office, Operational, Contingent Employees
Top
Management
Senior Management
First Line Management
Creating Talent Mobility
SMEs
(Consultants)
Senior Specialists
Functional Specialists / Front-Line Employees
Middle Management
Emerging
Leaders
Emerging
Leaders
Copyright © 2011 Bersin & Associates. All rights reserved. Page 26
Back Office, Operational, Contingent Employees
Top
Management
Senior Management
First Line Management
Implementing Talent Mobility
SMEs
(Consultants)
Senior Specialists
Functional Specialists / Front-Line Employees
Middle Management
Top
Management
Contract
Hire
Job
Intern
Developmental
Assignment
Lateral
Promotion
Stretch
Assignment
External
AssignmentUpward
Promotion
Lateral
Assignment
New
Assignment
Part Time
Loan
New
Candidate
New
Leader
Exec
Succession
Copyright © 2011 Bersin & Associates. All rights reserved. Page 27
Managing Talent Mobility
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
Coaching
Assessment
Strategic
Competencies Organizational
Planning /
Restructuring
Performance
Management
Individual
Development
Plan (IDP)
Career
Management
Copyright © 2011 Bersin & Associates. All rights reserved. Page 28
High-Impact Talent Mobility
Facilitated Talent Mobility – New Market for Integrated Career Development
Strategic Workforce Planning
Talent Assessment
Talent Outreach & Exploration
Talent Deployment
Talent Onboarding & Development
Copyright © 2011 Bersin & Associates. All rights reserved. Page 29
Value of Development Planning
 Organizations with highly effective
development planning significantly
outperform those without.
With Without
Voluntary Turnover 8% 11%
Turnover among High-Performers 2% 3%
Ability to “develop great leaders” 23% 7%
Ability to “plan for future talent
needs”
22% 6%
Median Revenue per Employee $169,000 $82,800
Copyright © 2011 Bersin & Associates. All rights reserved. Page 30
Value of a Coaching Culture
A coaching culture is the #1 driver of employee engagement
0%
10%
20%
30%
40%
50%
60%
70%
80%
Below Average Average Above Average
Employee Results
No or Weak Cultural
Support for Coaching
Good Cultural Support
for Coaching
Excellent Cultural
Support for Coaching
Employee Engagement Index
Bersin & Associates
High-Impact Performance Management®
2011
Copyright © 2011 Bersin & Associates. All rights reserved. Page 31
Agile Performance Management
 Continous goal setting
“OKR – Objectives and Key Results”
not cascading goals
 Continuous feedback from all
directions including bottom up
 Daily or weekly “scrums” to review job
and team performance
 Managers continuously look for ways
to remove bottlenecks
 Delegate authority within guidelines
 Make people successful with coaching
and work simplification
 Reward people with feedback and
purpose
Copyright © 2011 Bersin & Associates. All rights reserved. Page 32
Open Career Development
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Individually Manager Level Business Unit Level Enterprise Level
Business Impact (12 measures)
Engagement and retention
%Improvement
inbusinessimpact
“Manage your
Own Career”
A Career
Development
Strategy
Today people want
“open” career
opportunities
Copyright © 2011 Bersin & Associates. All rights reserved. Page 33
Tremendous Need for
Assessment Science
Copyright © 2011 Bersin & Associates. All rights reserved. Page 34
How do Companies Hire People?
2/3 of hiring done without any significant assessment
 Background checking: 79%
 Managerial interviews: 64%
 Interview training: 47%
 Behavioral assessments: 34%
 Reference calls: 32%
 Skills-based assessments: 25%
% of Organizations Which Regularly Use Following Assessment Practices
Bersin & Associates High-Impact Talent Acquisition
Study, Fall 2010, 158 organizations responded
2/3 use no real
assessment process
at all … leaving
the process to
hiring managers
or recruiters
Copyright © 2011 Bersin & Associates. All rights reserved. Page 35
Large Managerial Skills Gap
Managerial skills rated lower than skills of entry-level workers
24%
26%
38%
38%
42%
50%
59%
2%
5%
2%
5%
10%
7%
6%
Top Executives
Engineering-Professional
Director-Level
Customer Service
Sales representatives
Entry-Level
Line Managers
% Uneven
% Weak
Current Capabilities by Role, June 2011
Weakest
© Bersin & Associates, Corporate TalentWatch®
Research, Senior HR and Business Executives, 9/2011
Copyright © 2011 Bersin & Associates. All rights reserved. Page 36
Assessment Science Works
 16,500 retail employees
 Turnover rate - 72%
 Shift in business from
collectors to jewelry buyers
Clearly
Define Role
Design
High Value
Assessment
Implement
(Games and
Assessments)
Incredible
Results
Turnover reduced by ½ to 36%
Sales improvement of 26%
90% improvement in screening
Copyright © 2011 Bersin & Associates. All rights reserved. Page 37
But… there is a Surprise Effect
 What is the most important
baseball statistic that drives a
winning team?
• Team batting average?
• Runs batted in (RBI)?
• Pitcher’s earn run average (ERA)?
 On Base Percentage (OBP)
 Not a Characteristic of the
Player (candidate)
Copyright © 2011 Bersin & Associates. All rights reserved. Page 38
How do Scouts Find Top Players?
 They look for “traditional
performance characteristics”
• Speed and athleticism
• Ability to hit, home runs
• Appearance, confidence
• Just like corporate recruiters look at
grades, experience, prior roles…
 But what really matters is their
ability to get on base
Copyright © 2011 Bersin & Associates. All rights reserved. Page 39
Cognitive
Ability
Friendliness
and
Leadership
Copyright © 2011 Bersin & Associates. All rights reserved. Page 40
The War for The Best People
Copyright © 2011 Bersin & Associates. All rights reserved. Page 42
Copyright © 2011 Bersin & Associates. All rights reserved. Page 43
Copyright © 2011 Bersin & Associates. All rights reserved. Page 44
Copyright © 2011 Bersin & Associates. All rights reserved. Page 45
Attracting the right candidate in the right place
quickly, efficiently, and consistently
Copyright © 2011 Bersin & Associates. All rights reserved. Page 46
The Need for
Data Science in HR
Copyright © 2011 Bersin & Associates. All rights reserved. Page 47
BigData in US Business
6 billion photos uploaded to
Facebook every month
14 Exabytes of Data in US
Corporations (1 Exabyte is
40,000X the library of congress)
YouTube uploads more content
each day than all networks combined
1.5 million more data-savvy
managers needed to leverage
big data in the United States
US Businesses will be short
140,000-190,000 analytic positions
in the next three years
We are at an inflexion point:
Organizations
which learn to leverage big data will far
outperform those who do not.
- McKinsey
Copyright © 2011 Bersin & Associates. All rights reserved. Page 48
Data Analysis Skills Important to HR
Top HR Skills | Capabilities Correlation
Business Partner relationship management .52
Managing and leading people .51
Coaching and Mentoring .49
Change management and communications .48
Analyzing and interpreting data .47
Knowledge Sharing and expertise directories .47
Managing your Personal Development .45
Top Organizational | Managerial Capabilities
Developing a high performance culture .77
Developing a strong learning culture .77
Developing strong talent segmentation .74
Developing high levels of career development and mobility .73
Attracting and selecting the right talent .64
Measuring business impact of HR .64
Developing high levels of engagement .54
Giving people honest feedback .49
Copyright © 2011 Bersin & Associates. All rights reserved. Page 49
HR Organizations are Not Ready
What percentage of HR
organizations do you believe
feel have strong skills in data
analysis and interpretation?
6% Rate themselves “High”
56% - “Poor”
Bersin & Associates
High-Impact HR Organization® 2011
and 2010, n=741 organizations
Copyright © 2011 Bersin & Associates. All rights reserved. Page 50
The Lowest Rated HR Skill
17%
15%
7%
6%
4%
1%
-4%
-5%
-6%
-11%
-12%
-18%
Attracting and selecting the right talent
Promoting health and wellness
Onboarding new talent
Fairly allocating compensation
Understanding skills needed by role
Encouraging innovation and collaboration
Creating a high-performance culture
Enabling a learning organization
Identifying and developing future leaders
Driving internal mobility
Developing workforce analytics for management
Measuring HR program effectiveness
Relative Strengths of HR Skills and Capabilities
Bersin & Associates
High-Impact HR Organization® 2011
and 2010, n=741 organizations
Measurement, analytics, and
segmentation are the lowest
rated skills in HR teams
today
Copyright © 2011 Bersin & Associates. All rights reserved. Page 51
And this is true throughout business…
Copyright © 2011 Bersin & Associates. All rights reserved. Page 52
In Conclusion
 Businesses today are focused on globalization, innovation, employee
engagement, and preparing for growth
 The talent markets are out of balance, making it more important than
ever to find the “right people” for your organization
 Leadership, coaching, mobility, career development, and employment
branding are the keys to building a highly engaged workforce
 The science of assessment plays an ever-increasing critical role
 Skill, focus, and dedication to data and data science will differentiate
you in the coming years
Copyright © 2011 Bersin & Associates. All rights reserved. Page 53
Join Us – April 10-12, 2012

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Data Science and Analytics in Human Resources - Moneyball comes to HR

  • 1. Copyright © 2011 Bersin & Associates. All rights reserved. Data Science Comes to Human Resources Moneyball comes to HR Josh Bersin President and CEO, October, 2011
  • 2. Copyright © 2011 Bersin & Associates. All rights reserved. Page 2 Bersin & Associates  Who We Are • Bersin & Associates empowers HR and learning organizations to drive bottom line impact through world class research and consulting  Practices - Human Resources - Enterprise Learning - Talent Management - Talent Acquisition - Leadership & Succession  Offerings • WhatWorks® Membership: Research, Tools, Education, Consulting • IMPACT: The industry’s premiere conference on the Business of Talent • BersinBasics®: Fundamentals of Talent Management for Business Professionals at All Levels Human Resources Leadership Development Learning & Development Talent Acquisition Talent Management
  • 3. Copyright © 2011 Bersin & Associates. All rights reserved. Page 3 Introduction to Performance Management Understanding Multi-Rater Assessments Planning for Succession Management Understanding Pay for Performance Understanding Leadership Development How to Assess People Intro to Competencies in Talent Management Intro to Competencies in Talent Management Using Competencies in Talent Management Understanding and Using Job Profiles Cascading & Aligning Goals Fundamentals of Goal Setting Understanding Performance vs. Potential Conducting a Performance Appraisal Introduction to Learning & Development Strategy Introduction to Informal Learning Learning Capability Development & Culture Creating Development Plans Conducting a Performance Appraisal Fundamentals of Goal Setting Fundamentals of Coaching How to Assess People Understanding Pay for Performance Performance & Succession Management Leadership Development Fundamentals Competencies & Job Profiles Coaching & Goal Development Learning & Development Strategy Fundamentals of Performance Appraisals F U N D A M E N T A L S O F T A L E N T M A N A G E M E N T F O R B U S I N E S S P R O F E S S I O N A L S
  • 4. Copyright © 2011 Bersin & Associates. All rights reserved. Page 4 Agenda  Today’s Business Environment  Talent Markets: Out of Balance  Modern High-Impact Talent Management Strategies  Need for Assessment Science  How Moneyball applies to HR  Why Data Science Matters
  • 5. Copyright © 2011 Bersin & Associates. All rights reserved. Page 5 Today’s Business Environment
  • 6. Copyright © 2011 Bersin & Associates. All rights reserved. Page 6 2011 Business Environment Globalization, Innovation, Cost Containment What Are Your Organization’s Top Business Challenges for 2011? © Bersin & Associates, Corporate TalentWatch® Research, Senior HR and Business Executives, 1/2010 ■ June 2011 ■ June 2010 0% 10% 20% 30% 40% 50% 60% 70% Rapid business growth Acquisition or mergers Global expansion Launching new products and services New top management team Diminished access to capital Declining margins Need to Accelerate Innovation Competitive threats Severe business downturn Financial pressure to cut costs +90% Increase +100% Increase +400% Increase 35% of organizations see the need to accelerate innovation and globalize – the highest level in four years…. yet… 51% struggle to hire the right talent, despite high unemployment…
  • 7. Copyright © 2011 Bersin & Associates. All rights reserved. Page 7 The Global Auto Marketplace Automobile Sales – U.S. vs. China 0 2 4 6 8 10 12 14 16 18 20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 MillionVehiclesSold U.S. China 13.9 million 10.4 million
  • 8. Copyright © 2011 Bersin & Associates. All rights reserved. Page 8 Ford Figo Story Designed in India for the Indian Market Manufactured in Chennai by Indian Staff Size, Shape, and features designed for lifestyle and roads in India Colors, face, and styling designed for Indian tastes Ford Figo – Fastest Selling Car in India
  • 9. Copyright © 2011 Bersin & Associates. All rights reserved. Page 9 The Hyper-Connected Workforce
  • 10. Copyright © 2011 Bersin & Associates. All rights reserved. Page 10 What would You Be Willing to Give Up for a Week to Keep your Mobile Phone?  Brushing teeth: 22%  Sex: 33%  Exercise: 54%  Caffeine: 55%  Gaming is now the fastest growing application on mobile devices
  • 11. Copyright © 2011 Bersin & Associates. All rights reserved. Page 11 The Borderless Workplace Employee Mentor Peer Partner Candidate Customer W O R K P L A C E Transparent Dynamic Performance-driven Specialized Interconnected New Models for HR & L&D W O R K F O R C E Connected Global Multi-Generational Mobile Transient New Models for Career Manager L I F E S T Y L E 750 million people on Facebook 135 million people on LinkedIn 75% of workers are mobile BigData is Everywhere
  • 12. Copyright © 2011 Bersin & Associates. All rights reserved. Page 12 Today’s Talent Marketplace Out of Balance Skills and Experience Shortage Specialization Free Agent Economy Too Many Candidates
  • 13. Copyright © 2011 Bersin & Associates. All rights reserved. Page 13
  • 14. Copyright © 2011 Bersin & Associates. All rights reserved. Page 14 The Ill-Prepared US Workforce  Only 32% of college graduates have “excellent” skills to enter the workforce  Only 16% of high school graduates have such skills. Missing are: • Professionalism/work ethic • Creativity and Innovation • Lifelong learning/self-direction • Critical thinking/problem solving  Only 18% of workforce training programs raise skills from “deficient” to “adequate”
  • 15. Copyright © 2011 Bersin & Associates. All rights reserved. Page 15 A Free Agent Workforce  Job tenure for under-35 year olds is 2.5 years  The average worker today will have 11 jobs by the age of 45  2/3 of all employers are increasing their percentage of contingent workers  We estimate that as much as 40% of the US workforce is currently on a contingent basis
  • 16. Copyright © 2011 Bersin & Associates. All rights reserved. Page 16 High Performing Organizations Understand This Increasing Specialization  Expertise drives competitive advantage  Specialization improves quality and reduces cost  Deep skills developed through “deliberate practice” and reinforcement  Deep skills come from a range of developmental experiences  We need career development in all critical job roles Back Office, Operational, Contingent Employees Functional Specialists / Front-Line Employees Top Management Senior Management Middle Management Senior Specialists First Line Management The Experts
  • 17. Copyright © 2011 Bersin & Associates. All rights reserved. Page 17 Change in Employment Contract  In 2011 32% of employees are “planning on leaving” their employers, vs. 19% two years ago  59% of employees believe their employer is a sound “long term” place to work vs. 65% over last three years  Only 42% of employees believe that promotions go to the “most qualified” employees Mercer Whats Working Research, October 2011 Loyalty Career Equity
  • 18. Copyright © 2011 Bersin & Associates. All rights reserved. Page 18 The Workforce Really Is Younger…. “By 2013, 47% of employees will be those born after 1977. -- US Census Bureau And…Younger employees are much more likely to leave their employers. Under 25 year olds are 10% more likely to want to leave, and under 35 are 5% more likely. Mercer October 2011 This generation has a very different view of work and, therefore, of loyalty. They see work as a mutually beneficial exchange with their employer and, when it’s no longer working for them, they plan to move on. There is no strong sense of allegiance to the organization or expectation of long-term employment. Their allegiance is primarily to themselves and their careers, and that has major implications for how employers manage this youngest segment of their workforce.” Mercer October 2011
  • 19. Copyright © 2011 Bersin & Associates. All rights reserved. Page 19 What Makes People Want to Stay? 3 2 1 So….hiring and promoting the “right people” and developing the “right leaders” has a multiplying effect on retention, engagement, and performance.
  • 20. Copyright © 2011 Bersin & Associates. All rights reserved. Page 20 What Talent Management is All About
  • 21. Copyright © 2011 Bersin & Associates. All rights reserved. Page 21 Why Talent Management is Needed Learning&Development Sourcing&Recruiting PerformanceManagement LeadershipDevelopment SuccessionPlanning WorkforcePlanning Compensation-Benefits Traditional Silos of HR  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
  • 22. Copyright © 2011 Bersin & Associates. All rights reserved. Page 22 Talent Strategy & Planning Sourcing & Recruiting 1 2 Performance management Learning & Development 4 Succession planning 5 Leadership Development 6 Integrated Talent Management 3 HR Systems & Metrics Compensation 7 Competency Management Global Recruiting Efficiency and Effectiveness Team alignment Pay equity Managerial expertise Deep expertise Generational evolution Productivity Career Development New leadership models and needs Total talent mobility Talent pools and segments Effective pay equity and efficiency Comparative pay analysis Pay for performance Future planning Scenarios Business level talent plans Gap and risk analysis
  • 23. Copyright © 2011 Bersin & Associates. All rights reserved. Page 23 Talent Management Maturity Model® Level 1: Siloed HR Processes Individual HR processes or silos; may have systems in place but not connected Level 2: Standardized Talent processes Talent processes consistent and tailorable, some integration; several systems connected through manual processes Level 3: Integrated Talent Management Heavy focus on connecting systems and processes; single person or team responsible for talent initiatives Level 4: Strategic Talent Management Fully integrated processes and systems used to make business decisions. TM is business-integrated 7% 20% 45% 28%
  • 24. Copyright © 2011 Bersin & Associates. All rights reserved. Page 24 © Bersin & Associates TalentWatch, Fall 2011, n=283 Today’s Talent Challenges
  • 25. Copyright © 2011 Bersin & Associates. All rights reserved. Page 25 Back Office, Operational, Contingent Employees Top Management Senior Management First Line Management Creating Talent Mobility SMEs (Consultants) Senior Specialists Functional Specialists / Front-Line Employees Middle Management Emerging Leaders Emerging Leaders
  • 26. Copyright © 2011 Bersin & Associates. All rights reserved. Page 26 Back Office, Operational, Contingent Employees Top Management Senior Management First Line Management Implementing Talent Mobility SMEs (Consultants) Senior Specialists Functional Specialists / Front-Line Employees Middle Management Top Management Contract Hire Job Intern Developmental Assignment Lateral Promotion Stretch Assignment External AssignmentUpward Promotion Lateral Assignment New Assignment Part Time Loan New Candidate New Leader Exec Succession
  • 27. Copyright © 2011 Bersin & Associates. All rights reserved. Page 27 Managing Talent Mobility 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 Coaching Assessment Strategic Competencies Organizational Planning / Restructuring Performance Management Individual Development Plan (IDP) Career Management
  • 28. Copyright © 2011 Bersin & Associates. All rights reserved. Page 28 High-Impact Talent Mobility Facilitated Talent Mobility – New Market for Integrated Career Development Strategic Workforce Planning Talent Assessment Talent Outreach & Exploration Talent Deployment Talent Onboarding & Development
  • 29. Copyright © 2011 Bersin & Associates. All rights reserved. Page 29 Value of Development Planning  Organizations with highly effective development planning significantly outperform those without. With Without Voluntary Turnover 8% 11% Turnover among High-Performers 2% 3% Ability to “develop great leaders” 23% 7% Ability to “plan for future talent needs” 22% 6% Median Revenue per Employee $169,000 $82,800
  • 30. Copyright © 2011 Bersin & Associates. All rights reserved. Page 30 Value of a Coaching Culture A coaching culture is the #1 driver of employee engagement 0% 10% 20% 30% 40% 50% 60% 70% 80% Below Average Average Above Average Employee Results No or Weak Cultural Support for Coaching Good Cultural Support for Coaching Excellent Cultural Support for Coaching Employee Engagement Index Bersin & Associates High-Impact Performance Management® 2011
  • 31. Copyright © 2011 Bersin & Associates. All rights reserved. Page 31 Agile Performance Management  Continous goal setting “OKR – Objectives and Key Results” not cascading goals  Continuous feedback from all directions including bottom up  Daily or weekly “scrums” to review job and team performance  Managers continuously look for ways to remove bottlenecks  Delegate authority within guidelines  Make people successful with coaching and work simplification  Reward people with feedback and purpose
  • 32. Copyright © 2011 Bersin & Associates. All rights reserved. Page 32 Open Career Development -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% Individually Manager Level Business Unit Level Enterprise Level Business Impact (12 measures) Engagement and retention %Improvement inbusinessimpact “Manage your Own Career” A Career Development Strategy Today people want “open” career opportunities
  • 33. Copyright © 2011 Bersin & Associates. All rights reserved. Page 33 Tremendous Need for Assessment Science
  • 34. Copyright © 2011 Bersin & Associates. All rights reserved. Page 34 How do Companies Hire People? 2/3 of hiring done without any significant assessment  Background checking: 79%  Managerial interviews: 64%  Interview training: 47%  Behavioral assessments: 34%  Reference calls: 32%  Skills-based assessments: 25% % of Organizations Which Regularly Use Following Assessment Practices Bersin & Associates High-Impact Talent Acquisition Study, Fall 2010, 158 organizations responded 2/3 use no real assessment process at all … leaving the process to hiring managers or recruiters
  • 35. Copyright © 2011 Bersin & Associates. All rights reserved. Page 35 Large Managerial Skills Gap Managerial skills rated lower than skills of entry-level workers 24% 26% 38% 38% 42% 50% 59% 2% 5% 2% 5% 10% 7% 6% Top Executives Engineering-Professional Director-Level Customer Service Sales representatives Entry-Level Line Managers % Uneven % Weak Current Capabilities by Role, June 2011 Weakest © Bersin & Associates, Corporate TalentWatch® Research, Senior HR and Business Executives, 9/2011
  • 36. Copyright © 2011 Bersin & Associates. All rights reserved. Page 36 Assessment Science Works  16,500 retail employees  Turnover rate - 72%  Shift in business from collectors to jewelry buyers Clearly Define Role Design High Value Assessment Implement (Games and Assessments) Incredible Results Turnover reduced by ½ to 36% Sales improvement of 26% 90% improvement in screening
  • 37. Copyright © 2011 Bersin & Associates. All rights reserved. Page 37 But… there is a Surprise Effect  What is the most important baseball statistic that drives a winning team? • Team batting average? • Runs batted in (RBI)? • Pitcher’s earn run average (ERA)?  On Base Percentage (OBP)  Not a Characteristic of the Player (candidate)
  • 38. Copyright © 2011 Bersin & Associates. All rights reserved. Page 38 How do Scouts Find Top Players?  They look for “traditional performance characteristics” • Speed and athleticism • Ability to hit, home runs • Appearance, confidence • Just like corporate recruiters look at grades, experience, prior roles…  But what really matters is their ability to get on base
  • 39. Copyright © 2011 Bersin & Associates. All rights reserved. Page 39 Cognitive Ability Friendliness and Leadership
  • 40. Copyright © 2011 Bersin & Associates. All rights reserved. Page 40 The War for The Best People
  • 41. Copyright © 2011 Bersin & Associates. All rights reserved. Page 42
  • 42. Copyright © 2011 Bersin & Associates. All rights reserved. Page 43
  • 43. Copyright © 2011 Bersin & Associates. All rights reserved. Page 44
  • 44. Copyright © 2011 Bersin & Associates. All rights reserved. Page 45 Attracting the right candidate in the right place quickly, efficiently, and consistently
  • 45. Copyright © 2011 Bersin & Associates. All rights reserved. Page 46 The Need for Data Science in HR
  • 46. Copyright © 2011 Bersin & Associates. All rights reserved. Page 47 BigData in US Business 6 billion photos uploaded to Facebook every month 14 Exabytes of Data in US Corporations (1 Exabyte is 40,000X the library of congress) YouTube uploads more content each day than all networks combined 1.5 million more data-savvy managers needed to leverage big data in the United States US Businesses will be short 140,000-190,000 analytic positions in the next three years We are at an inflexion point: Organizations which learn to leverage big data will far outperform those who do not. - McKinsey
  • 47. Copyright © 2011 Bersin & Associates. All rights reserved. Page 48 Data Analysis Skills Important to HR Top HR Skills | Capabilities Correlation Business Partner relationship management .52 Managing and leading people .51 Coaching and Mentoring .49 Change management and communications .48 Analyzing and interpreting data .47 Knowledge Sharing and expertise directories .47 Managing your Personal Development .45 Top Organizational | Managerial Capabilities Developing a high performance culture .77 Developing a strong learning culture .77 Developing strong talent segmentation .74 Developing high levels of career development and mobility .73 Attracting and selecting the right talent .64 Measuring business impact of HR .64 Developing high levels of engagement .54 Giving people honest feedback .49
  • 48. Copyright © 2011 Bersin & Associates. All rights reserved. Page 49 HR Organizations are Not Ready What percentage of HR organizations do you believe feel have strong skills in data analysis and interpretation? 6% Rate themselves “High” 56% - “Poor” Bersin & Associates High-Impact HR Organization® 2011 and 2010, n=741 organizations
  • 49. Copyright © 2011 Bersin & Associates. All rights reserved. Page 50 The Lowest Rated HR Skill 17% 15% 7% 6% 4% 1% -4% -5% -6% -11% -12% -18% Attracting and selecting the right talent Promoting health and wellness Onboarding new talent Fairly allocating compensation Understanding skills needed by role Encouraging innovation and collaboration Creating a high-performance culture Enabling a learning organization Identifying and developing future leaders Driving internal mobility Developing workforce analytics for management Measuring HR program effectiveness Relative Strengths of HR Skills and Capabilities Bersin & Associates High-Impact HR Organization® 2011 and 2010, n=741 organizations Measurement, analytics, and segmentation are the lowest rated skills in HR teams today
  • 50. Copyright © 2011 Bersin & Associates. All rights reserved. Page 51 And this is true throughout business…
  • 51. Copyright © 2011 Bersin & Associates. All rights reserved. Page 52 In Conclusion  Businesses today are focused on globalization, innovation, employee engagement, and preparing for growth  The talent markets are out of balance, making it more important than ever to find the “right people” for your organization  Leadership, coaching, mobility, career development, and employment branding are the keys to building a highly engaged workforce  The science of assessment plays an ever-increasing critical role  Skill, focus, and dedication to data and data science will differentiate you in the coming years
  • 52. Copyright © 2011 Bersin & Associates. All rights reserved. Page 53 Join Us – April 10-12, 2012

Hinweis der Redaktion

  1. (c) Bersin and Associates
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  4. And let me emphasize how important globalization has become. For the first time ever, more than 20% of our survey respondents cited “urgency to globalize” as one of their top 3 goals. I spent a week in the mid-west last winter and met with a variety of manufacturing companies and heard the same mantra from each: our US business is flat to declining, we see all our future growth in China, Brazil, India, Eastern Europe, and other developing countries. This chart will give you a sense of how quickly this has changed. The US automobile industry, which has been the world’s largest for many years, is now #2 to China. And remember that the auto industry drags with it hundreds of other industries like steel, electronics, tires, and energy. According to the Economist in February, China’s demand for oil is growing at 3X the rate of the US, and Saudi Arabia, the largest exporter of oil, is now moving its entire focus away from the US toward China as its business partner. In fact China will eclipse Japan as the #2 economy in the world in this coming year. To make this really hit home consider this: Marriot’s biggest growth market is Asia, with 75,000 new rooms planned for 2010 – the company’s growth in the US is fewer than 10,000. What this means is that our companies, the businesses we support, will have to shift from domestic and multi-national to truly global. Just as Japanese companies spent the decade of the 60s and 70s to build businesses and talent strategies to come here, we in turn must now globalize our businesses to expand into developing markets. A good example of this is AO Smith, one of the world’s biggest manufacturers of water heaters. AO Smith now has a China engineering organization that designs water heaters for emerging markets like india, staffed by excellent engineers who understand the needs of emerging markets. I will discuss throughout the next 30 minutes “globalizing” does not mean “setting up an international operation.” It means globalizing your talent programs, strategies, and systems. Do you know how to train leaders in the middle east and why and how they are different from leaders in Europe, the Far east, and India? Do you understand the role of the patriarch in middle-eastern organizations? Do you believe you can take a US trained manager and expect him to succeed in China or the Middle east? Now is the time to focus on these important new issues in our emerging talent strategies. DIFERENT ENGGEMENT DRIVERS IN DIFFERENT COUNTRIES
  5. As Jeff Imelt stated it so well, we are globalizing to go after “global markets” – not to become “multinational.” The best example of what this means is the story of the Ford Figo. Designed in india by indian engineers, manufactured by an indian factory – with India colors, sized for Indian roads, styled for Indian tastes, and with features for Indian families. 1/3 of the people who built this car had never even driven a car. Now the fastest growing car in Ford’s lineup and the #1 selling car in India.
  6. Today’s workforce is more diverse than ever – in age, expectations, location and mobility. Our research shows that 70% of organizations are still recruiting baby boomers, while 30% will still consider hiring a candidate who has inappropriate postings on social media. Further, our new High Impact HR research shows that organizations with mixed age work forces perform better than those that are highly skewed toward younger or older workers. Nearly every organization we work with is looking for ways to grow. Whether this is geographical or line of business expansion, HR professionals are striving to develop workforces that can manage through ambiguity and rapid change. This is why AT&T chose Bersin to redesign its performance management system, resulting in a 15% improvement in productivity in the first two years When Pfizer merged with Wyatt, they looked to Bersin to effectively consolidate two training groups into one organization, 2/3 the size of the previous team. This group cut training costs by 32% while creating innovative, high performing learning programs JetBlue University transformed their training team from request managers to performance consultants by using Bersin’s research to create a business alignment tool that ensures that the University’s resources are spent on strategically significant programs.
  7. Today’s workforce is more diverse than ever – in age, expectations, location and mobility. Our research shows that 70% of organizations are still recruiting baby boomers, while 30% will still consider hiring a candidate who has inappropriate postings on social media. Further, our new High Impact HR research shows that organizations with mixed age work forces perform better than those that are highly skewed toward younger or older workers. Nearly every organization we work with is looking for ways to grow. Whether this is geographical or line of business expansion, HR professionals are striving to develop workforces that can manage through ambiguity and rapid change. This is why AT&T chose Bersin to redesign its performance management system, resulting in a 15% improvement in productivity in the first two years When Pfizer merged with Wyatt, they looked to Bersin to effectively consolidate two training groups into one organization, 2/3 the size of the previous team. This group cut training costs by 32% while creating innovative, high performing learning programs JetBlue University transformed their training team from request managers to performance consultants by using Bersin’s research to create a business alignment tool that ensures that the University’s resources are spent on strategically significant programs.
  8. (c) Bersin and Associates
  9. 22
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  11. Need to source talent internally due to shortages. Internal talent has institutional skills and experience you need to grow. We started talking about talent mobility in 2006, with our first research on succession management – and at that point in time our maturity model showed the top of succession mnagemetn was “transparent talent mobility.” Today succession processes are totally changing, and organizations must recognize that “facilitated talent movement,” as united healthgroup calls it, is a new and strategic talent process – and it forces the integration of recruiting and onboarding with the processes of talent management and employyee deveopment. At UHG they have integrated these functions, and Rich Hughes, the CLO of UHG, now has responsibilty for the integraetd functions of Talent Acquisition, Development and Mobility. Lori Hughest is going to talk about why and how they do this – but mark my words, this next few years is the time to integrate these process so that you can build a transparent talent mobility process internally. JPM Chase, IBM examples.
  12. Today’s workforce is more diverse than ever – in age, expectations, location and mobility. Our research shows that 70% of organizations are still recruiting baby boomers, while 30% will still consider hiring a candidate who has inappropriate postings on social media. Further, our new High Impact HR research shows that organizations with mixed age work forces perform better than those that are highly skewed toward younger or older workers. Nearly every organization we work with is looking for ways to grow. Whether this is geographical or line of business expansion, HR professionals are striving to develop workforces that can manage through ambiguity and rapid change. This is why AT&T chose Bersin to redesign its performance management system, resulting in a 15% improvement in productivity in the first two years When Pfizer merged with Wyatt, they looked to Bersin to effectively consolidate two training groups into one organization, 2/3 the size of the previous team. This group cut training costs by 32% while creating innovative, high performing learning programs JetBlue University transformed their training team from request managers to performance consultants by using Bersin’s research to create a business alignment tool that ensures that the University’s resources are spent on strategically significant programs.
  13. And talent acquisition has become more complex every day. Look at all the things you must consider in order to build a compelling talent pipeline. Talent acquisition takes advantage of every element of talent management you understand – from assessment to branding to culture to management training. United Health Group Rich Hughes new role fromCLO to head of Talent Acquisition, Development, and Mobility.
  14. Today’s workforce is more diverse than ever – in age, expectations, location and mobility. Our research shows that 70% of organizations are still recruiting baby boomers, while 30% will still consider hiring a candidate who has inappropriate postings on social media. Further, our new High Impact HR research shows that organizations with mixed age work forces perform better than those that are highly skewed toward younger or older workers. Nearly every organization we work with is looking for ways to grow. Whether this is geographical or line of business expansion, HR professionals are striving to develop workforces that can manage through ambiguity and rapid change. This is why AT&T chose Bersin to redesign its performance management system, resulting in a 15% improvement in productivity in the first two years When Pfizer merged with Wyatt, they looked to Bersin to effectively consolidate two training groups into one organization, 2/3 the size of the previous team. This group cut training costs by 32% while creating innovative, high performing learning programs JetBlue University transformed their training team from request managers to performance consultants by using Bersin’s research to create a business alignment tool that ensures that the University’s resources are spent on strategically significant programs.