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An Agency's Journey to Unified Talent Management

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An Agency's Journey to Unified Talent Management

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“Did you know that approximately 10,000 people will retire each day? This means 43 percent of the current workforce will retire in the next decade,” stated Steve Dobberowsky, Principal, Thought Leadership & Advisory Services at Cornerstone.

There are many challenges that government agencies face today, such as shrinking budgets and the Baby Boomer retirements. So, how are HR professionals adopting a talent management strategy that will drive positive results in this day and age?

In this training with GovLoop, we'll examine how the workforce is rapidly changing and the challenges and solutions that HR professionals are dealing with - including developing a Unified Talent Management strategy.

“Did you know that approximately 10,000 people will retire each day? This means 43 percent of the current workforce will retire in the next decade,” stated Steve Dobberowsky, Principal, Thought Leadership & Advisory Services at Cornerstone.

There are many challenges that government agencies face today, such as shrinking budgets and the Baby Boomer retirements. So, how are HR professionals adopting a talent management strategy that will drive positive results in this day and age?

In this training with GovLoop, we'll examine how the workforce is rapidly changing and the challenges and solutions that HR professionals are dealing with - including developing a Unified Talent Management strategy.

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An Agency's Journey to Unified Talent Management

  1. 1. Not For Distribution Steve Dobberowsky, Principal, Thought Leadership & Advisory Services Bill Taylor, Solutions Architect, Strategic Solutions An Agency’s Journey to Unified Talent Management Not For Distribution
  2. 2. Not For Distribution Our Presenters Today 2 With a strong belief that technology should be empowering and knowledge should always be accessible, Bill served 7 years in Federal Government competitive service implementing talent management solutions at the Department level, then with multiple agencies through a Shared Service Center. Leveraging career choices that started with programming, databases and networks and segued into sales and marketing, he entered the learning space with laser discs and continues to exploit today’s evolving technologies in designing effective solutions. He helps create a common language for decision-makers with practical analogies of technical realities, as they seek to unify talent processes. BILL TAYLOR Solution Architect, Strategic Solutions STEVE DOBBEROWSKY Principal, Thought Leadership & Advisory Services Steve has served 11 years of Federal Government competitive service with 7 years in HR and HR IT leadership roles ensuring effective talent management processes at a bureau level, at the Department level and at a Shared Service Center where he delivered solutions for multiple agencies. He is a proven, business-savvy leader with a track record of providing high quality, innovative services and solutions. He is also adept at achieving desired outcomes from multiple initiatives simultaneously, working collaboratively and decisively to overcome obstacles and deliver results, and creating a continuously learning, improving and adaptable organization. He has a resilient proficiency and is effective at heading up change efforts, building organizations, uniting divergent groups, and leading a diverse and geographically dispersed workforce. Utilizing his initial professional experiences as a high school teacher, he is a seasoned leader who leverages resources, information, knowledge, skills and technology to develop people, foster relationships and build partnerships.
  3. 3. Not For DistributionNot For Distribution Trends in the Workforce
  4. 4. Not For Distribution The Talent Dilemma 4 Unprecedented shortages at a time of continued unemployment • Consistently over 52% of employers cannot fill open jobs • Shortages have intensified in specific areas with STEM roles showing predictable deficits (Science, Technology, Engineering, Mathematics) • We are importing manufacturing/journeyman talent to work in our factories / industries. • A person is predicted to have 11.3 jobs from age 18-46 • 10,000 people reach retirement age (65) in the U.S. every day …. 43% of the current workforce will retire in the next decade Source: Pew research; Hackett group; Randstad, 2012; Harris Interactive, 2011 Manpower: Talent Shortage Survey, 2011; U.S. Bureau of Labor Statistics Not For Distribution
  5. 5. Not For Distribution It’s all over the board, mobility survey in 2014 The Talent Dilemma 5Source: HCI Internal Mobility Research 2014 51% 64% 64% 55% 37% 50% 68% 69% 51% 43% Executives/C-Suite Mid-level Leaders Front-line Leaders Individual Contributors Entry-level Skills Shortage Skills Gap More than half of respondents report employee skills gaps & skill shortages in external talent pools
  6. 6. Not For Distribution 6 Employee Retention is No Different than Customer Retention Source: Shankman / HONIG 2014, Diginomica 2015 Generally – it costs roughly 5 times more to acquire than retain a customer When they encounter service multiple times for the same reason 71% INFLEXIBILITY After being left on hold for a long time65% LATENESS If dealing with unfriendly or impolite customer service agents77% RUDENESS After having to contact customer service multiple times for the same reason 73% INCOMPETENCY Of consumers claim they would leave a service provider if a service delivered is different from what is implied78% DECEPTION CAUSES OF CUSTOMER DISSATISFACTION Are satisfied with clear information posted to company websites for simple inquiries 38% CLEAR WEBSITE Want to speak with a real person on the phone for difficult inquiries 46% HUMAN Feel it is extremely Important that customer service representatives know their client history based on previous interactions 50% SUPPORTIVE Want access to faster customer service 69% FAST Want ease of access to customer service73% EASY WHAT CUSTOMERS EXPECT (BESIDES COMPETITIVELY PRICED PRODUCTS & SERVICES WHICH WORK FLAWLESSLY) Good-Bye Talent Management – Hello People Management “ “ H RH R H R H
  7. 7. Not For Distribution “Goodbye Talent Management, Hello People Management” Understand Your Employee 7Source: HCI Internal Mobility Research 2014 47% Agree that it is easier for an employee to find a job outside of our organization than inside it. 89% Agree that hiring is less expensive from within the organization. 86% Agree that it is faster from within the organization. 60% Agree that employees promoted from within perform better. Not For Distribution
  8. 8. Not For Distribution 17% 14% 15%29% 26% Generation X (1965–1976) iGeneration “Next” (after 1997) Traditionalists (prior to 1946) Baby Boomers (1946–1964) Generation Y “Millennials” (1977–1997) We have been trained as human resource executives to address many forms of diversity, we must now be prepared to manage extreme age diversity as well. Our strategies need to address generational context. Five Generations In The Workforce 8Source: Percentage of the Population US Census 2007 Gen Y is AKA as Millennials, Gen Next, Gen Why & the Echo Boom Not For Distribution
  9. 9. Not For Distribution Approximately 25% of the North American workforce is comprised of Gen Y; however, only about half have entered the workforce to date. By 2025, Gen Y will make up roughly 75% of the workforce.* 9 Gen Y is the Ultimate Future of Your Workforce 25% 32% 38% 4% TRADITIONALISTS GEN Y GEN X BABY BOOMERS 25% 75% GEN Y ALL OTHER DEMOGRAPHICS Source: Generations in the Workplace in the U.S. & Canada *Source: Erica Dhawan, Gen Y Workforce & Workplace Are Out of Sync. **Source: 15th Annual Global CEO Survey 2013 North American Workforce Population By Generation in 2010 North American Workforce Population By Generation in 2025 Twenty-eight percent of managerial positions are already held by Millennials, which is enough talent to succeed Boomers’ share of leadership positions at 23 percent — Bersin and Associates (2012) 87% of Gen Y managers took on a new management role between 2008 and 2013, compared with 38% of Gen X managers and just 19% of those aging baby boomer managers. — Ernest and Young (2014) On average, one Baby Boomer is retiring every eight seconds.**
  10. 10. Not For Distribution In 2014 – New Hire Turnover, A Problem. 10Source: PwC Saratoga’s 2012/2013 US Human Capital Effectiveness 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 2006 2007 2008 2009 2010 2011 First-Year Turnover Rate First Year Turnover 29% 28% 31.7% 23.6% 22.7% 21.5% According to government statistics in February 2013, for the first time since September 2008, more employees left companies by resigning than by being laid off. “ “ 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 2004 2005 2006 2007 2008 2009 2010 2011 Voluntary Turnover & Unemployment Rate Voluntary Separation Rate U.S. Unemployment Rate 9.3% 10.5% 10.4% 10.4% 9.2% 7.3% 7.0% 8.0% 5.5% 5.1% 4.6% 4.6% 5.8% 9.3% 9.6% 8.5%
  11. 11. Not For Distribution Inverse Relationship Between Unemployment & Consumer Confidence 11 ✓ As consumer confidence increases, employees see an opportunity to make a job change Quits have increased by almost 1 million between Jan 10 and Jan 15 … approximately 60% increase from 1.7 M to 2.7 M, but are still below pre- recession levels of over 3 million ✓ Source: Bureau of Labor Statistics, Current Population Survey and Job Openings and Labor Turnover Survey, July 7, 2015. 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Layoffs & Discharges Quits Quits & Layoffs & Discharges SEASONALLY ADJUSTED IN THOUSANDS ~60% Overall 21% are a planning a move in 2016. By demographic a third (32%) of 18-24 year olds, while a quarter (25%) of 25 to 34 year olds will be job hunting. —Penna Career Services Survey - UK
  12. 12. Not For Distribution Timeframe an Employee Makes a Decision to Leave 12Source: Aberdeen Group, 2008 0% 5% 10% 15% 20% 25% 30% 35% Other The First Five Years The First Two Years The First Year The First Six Months The First Month The First Week The First Day Not For Distribution
  13. 13. Not For Distribution 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% Less than 1 yr 1 yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs 7 yrs 8 yrs 9 yrs 10 yrs 11 to 14 yrs 15+ yrs QuitRatePercent Typical Voluntary Turnover Rates for Different Years of Seniority Different Reasons at Different Times… 13 Why Do People Leave in the First Few Years? Source: IC4p/Attrition and Retention Consortium • Concerns around development and career opportunities • Compensation and benefits • Supervision “The Boss Effect”
  14. 14. Not For Distribution How Do We Make the Decision? Not For Distribution
  15. 15. Not For Distribution We’re already doing a lot of these things, but… 15Source: Modern Survey, Stat of the Week – 2/12/2016 ✓ 44% of U.S. workers say their organization does a good job in talent management. Only 26% of HR pros say their organization measures & monitors the talent management process well. ✓
  16. 16. Not For Distribution Source: CSOD, HCMG Federal Benchmarking 2016 Challenges in Boosting Workforce Capabilities Development 68%of HCM are investing in staff-wide L&D initiative 15%emphasize training their team on new technologies 54%of agencies lack Millennial-focused L&D tools 51%of agencies say identifying and closing skill gaps is their #1 priority 17%of top agencies have already created strategies to develop younger workers L&D is #2 goal for another 45%
  17. 17. Not For Distribution 17 To manage Agency assets effectively, we need to be able to answer these questions: 1. How do an employee’s performance goals link to Agency’s strategic goals? How do employees see their impact on Agency’s mission? 2. Who works here? What do they do? 3. Did we meet our goals? Are we on track to meet them? 4. Are we rewarding our top performers? Do we have gaps in the leadership pipeline? 5. What does it cost and how can we forecast? How can we report all this data?
  18. 18. Not For Distribution Talent Management is Good Business 18 End-to-end people strategies offer organizations significant advantages:  40% lower turnover among high performers  17% lower overall voluntary turnover  87% greater ability to “hire the best people”  156% greater ability to “develop great leaders”  92% greater ability to “respond to changing economic conditions”  144% greater ability to “plan for future workforce needs” Source: Bersin & Associates, 2009 Talent Management Factbook
  19. 19. Not For Distribution Lessons Learned in 2010 19 Companies with automated talent management systems are better at:  Targeted recruitment  Heavy focus on development, management, leadership, mobility and culture  Understanding and using core competencies  Moving people into ever-increasing levels of responsibilities, offer new challenges and providing succession and development programs  Driving Business Success Source: Bersin & Associates
  20. 20. Not For Distribution Engagement – Top of the List 20Source: 2014 CEO Challenge Report & Economic Outlook — The Conference Board Managing Human Capital Risk Global Importance-adjusted Strategies for Managing Operational Excellence ASIA N = 291 EUROPE N = 103 USA N = 108 1 Raise employee engagement & productivity 1 2 1 2 Focus on reduction of baseline costs 13 3 3 3 Break down internal silos T10 1 T4 4 Continual improvement (six sigma, total quality, etc.) 5 7 2 5 Seek better alignment between strategy, objectives & organizational capabilities 7 6 T4 6 Invest more in new technologies 2 8 9 7 Redesign business processes T10 4 6 8 Improve speed to market 12 9 7 9 Improve cash management 9 18 T20 10 Ensure supply chain integrity 8 T12 12 11 Deeper integration of global operations 3 T10 14 12 Improve performance & accountability of middle management 4 22 10 13 Improve performance & accountability of senior management 6 16 13 14 Better align IT with business goals 14 T12 8 15 Achieve economies of scale through organic business growth 18 17 11 • Gallup (2013) found that 13 percent of employees globally are engaged, 63 percent are not engaged, and 24 percent are actively disengaged. • Organizations with high engaged /disengaged ratios (9:1) experienced a 147% higher EPS than their competition. “ ” Employee engagement is the extent to which employees are willing to expend discretionary effort to achieve an organization’s objectives, which translates into measurable performance. – Saratoga Institute  1 – Raise Employee Engagement and Productivity  5 – Seek Better Alignment Strategy  Organization  12 – Improve Performance of Middle Management  13 – Improve Performance of Senior Management CEO CHALLENGE 2013: LOOKING AT STRATEGIES FOR OPERATIONAL EXCELLENCE OPERATIONAL EXCELLENCE: Raising Employee Engagement & Productivity
  21. 21. Not For Distribution Why Unify Talent Management NOW? 21 Be Clear in the WHY! • Tracking with Spreadsheets • Engagement Levels • Employment Brand • Consistency of Experience • Organizational Transformation • Reduce Data Entry Mistakes • Accountability • Take Action on Performance Results • Quick Access to Data IMPROVEMENT OBJECTIVES • Attrition • Time-to-Productivity • Level of Productivity • Increased Trust • Ability to Meet Talent Needs • Retain Top Talent • Competitive Position • On Boarding Administrative Cost ORGANIZATIONAL IMPACT
  22. 22. Not For Distribution Talent Management Strategy 22 While facing significant financial and HR challenges, including shrinking budgets and the impending wave of “Baby Boom” retirements, organizations must adopt a talent management strategy that aligns individual and organizational goals to drive results Performance Management Learning & Development Workforce Analytics Key Areas of Focus Action(s) Required Description 2 1 3 Drive Business Results Put processes and tools in place to accomplish goals  Be goal oriented  Transform the performance management process  Align individual (SMART) goals with organization’s mission  Make performance management an ongoing process and critical business activity  Create a learning culture  Leverage resources  Share knowledge  Emphasize the importance of personal development  Expand talent management activities to create and find untapped pockets of knowledge, skills, and abilities  Encourage and facilitate both formal and informal collaboration and mentoring  Collect and analyze key data  Build meaningful metrics  Identify organizational gaps  Assess potential risks  Reward performance
  23. 23. Not For Distribution 23 Employing an Unified Talent Management approach will allow organizations to execute strategic initiatives efficiently and optimize the use of human capital resources Current Performance  No integration with other systems  Limited goal alignment, goal tracking, and data analysis capabilities  No real-time status information  No ongoing feedback support Current LMS  Frequent patches and costly upgrades required  Unstable applications and declining service levels  Limited reporting capabilities Other  No common system for succession management, social networking, and knowledge management Current State: Disparate Systems* UTM  Federalized and configurable Software as a Service platform  Integrated and interactive modules • Performance Management − Organization-wide goal alignment, tracking, and transparency − Multi-rater, ongoing feedback tools and competency assessments • Learning Management • Standard and Custom Reporting with data collection and analysis built into the system • Career and Succession Planning • Compensation Management • Social Networking  Intuitive end user interface and processes Desired State: Single System *Note: This example refers specifically to one agency, and is for illustrative purposes The Vision: Unified Talent Management
  24. 24. Not For Distribution UTM Implementation Strategy 24 Implementation Strategy  Configure a base platform for UTM • Performance Management (most needed, more difficult to implement) • Learning Management (easier lift, easier first experience for the end user, first data set up, more end user access opportunities)  Add other UTM modules in sequence • Succession Planning • Connect • Compensation Management  Implement UTM pilots and releases in successive rollouts • Make improvements based on lessons learned • Start small, and increase the number of modules as necessary Success Requirements To implement the UTM strategy successfully, an organization will need…  A logical and defensible reason for adopting UTM (a “Burning Issue”)  Strong leadership engagement and stakeholders with decision making and approval authority  Adaptable and cross-functional planning and execution • CIO • CHCO • CLO • CPO  Strong change management initiative  Strong user engagement to ensure adoption
  25. 25. Not For Distribution Indicators of a Successful Implementation 25  Saves time and resources  Aligns individual and organizational goals  Provides robust reporting tools and reliable data  Helps evaluate development programs PerformanceEase of Use 2 4  Meets applicable regulatory requirements • SF-182 • EHRI • OMB • OPM Compliance 1  Simple structure  Provides quick access to information  Has professional look and feel  End user adoption rates  Offers more value per dollar spent  Increased cost avoidance by greater efficiencies  Effective and efficient governance procedures for upgrades Cost 3 Meeting these conditions will help future implementations succeed Configuration of each module in the implementation must meet key performance require- ments. Best practices and lessons learned will be incorporated into future implementations.
  26. 26. Not For Distribution Decision Points 26 Decision Points Next Steps  Define change management strategy  Focus on improving strategic planning  Train executive POCs  Complete UTM system technical training  Union Consultations  Should modules be added in order? • Learning Management • Succession Planning • Compensation Management  Implementation strategy: “Big Bang” vs. phased approach  Funding and staffing requirements • Implementation • Future growth  Who will own the system? • Governance • Administration • Maximize existing and new functionality The following items need to be addressed in order to implement UTM efficiently and successfully
  27. 27. Not For Distribution Lessons Learned 27 1. A strong change management program driven from senior management levels offers the best opportunity for implementing real change(s). 2. Clear and agreed upon decisions must be documented and centrally stored to avoid confusion. 3. HR data integrity (accuracy of data in the HR system feeding UTM) will ultimately determine project success. 4. Routing individual performance documents is an antiquated process. The new performance process incorporates regular documented feedback and goal alignment. Adopting this new method into your organization is critical to the project’s success. 5. Customers must be involved and ready to make key decisions. Appraisal forms are not a performance management process. 6. The activity of identifying best business practices is organization-specific.
  28. 28. Not For Distribution Thank You! Not For Distribution

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