Talent Management – Getting it Right Scott D. Esposito Best Practices Institute March 2013 1

Talent Management: Getting It Right Agenda What is talent management Importance of talent management Overview of talent management processes Key issues and concerns Areas for further considerations

Talent Management: Getting It Right What Is Talent Management ? The means by which organizations build and sustain the human capabilities required to achieve business goals.

Talent Management: Getting It Right Why Is It Important? Leadership development has the longest lead time of any organization activity. Top talent is a competitive differentiator – it can mean the difference between average and outstanding performance. The investment value of attracting, hiring and training top talent can reach 2X base pay. Firms that excel at talent management deliver better results: Hi-Performer Turnover % Downsizing (10% or more) Revenue / EE No Strategy 5% 32% $144,400 Mature Strategy 3% 23% $181,900 © BERSIN & ASSOCIATES 2009 Survey of 773 companies

Talent Management: Getting It Right Talent at 30,000 Ft. The HR Value Stream Employee Life Cycle Interdependent -- Interconnected

Talent Management: Getting It Right Acquisition Key points to consider: Leadership passion and commitment Leveraging your brand into an effective value proposition Warm recruiting and opportunistic hiring Pitfalls and misconceptions: Overlooking / ignoring market feedback Using cost / process efficiency to measure effectiveness Narrow or single dimension talent assessments

Talent Management: Getting It Right On-boarding / Assimilation Key points to consider: Often a weak link Process begins at time of offer Company wide involvement A multi-year commitment Pitfalls and misconceptions: Treated as an event or program Ownership limited to immediate management or HR Reliance on self-service vs. human interaction

Talent Management: Getting It Right Coach / Develop Key points to consider: Determine highest priorities at time of hire Development is continuous not situational Assign multiple coaches – reach across levels and functions Pitfalls and misconceptions: Career development is optional Not evolving development strategies to match business changes

Talent Management: Getting It Right Manage Performance Key points to consider: Treat performance management as a project plan Seek input from multiple stakeholders Demand proficiency and high standards from all supervisors Declining performance – diagnose root causes Pitfalls and misconceptions: Allowing marginal performers to evaluate others Performance management is an annual, retrospective event Failing to identify next steps and taking immediate action

Talent Management: Getting It Right Rewards Key points to consider: The value placed on rewards varies by individual Transparency, fairness and consistency Differentiation, risk and having “skin in the game” Pitfalls and misconceptions: Sacrificing the salary budget to save jobs Letting internal equity drive pay limits for top talent. Underestimating the value of a positive work environment.

Talent Management: Getting It Right Engagement / Retention Key points to consider: Most important influence - immediate supervisors Building an inclusive culture Measure – act – evaluate; promote high involvement Pitfalls and misconceptions: Policies and practices inconsistent with stated philosophy Ignoring the basics in favor of gimmicks and trends High retention = engaged workforce

Talent Management: Getting It Right Termination Key points to consider: You may want them back Debriefing and knowledge capture Communications and graceful exits Pitfalls and misconceptions: Collecting data with no end game Being surprised and unprepared Low turnover is good news

Talent Management: Getting It Right The Case of Hi-Potentials Key points to consider: All hires are prospective hi-potentials until proven otherwise Criteria is observable and measurable with objective standards Expectations are clearly identified Sizing the group to meet current and future needs Pitfalls and misconceptions: Creating a secret society Once a hi-pot, always a hi-pot Being overly prescriptive on career paths

Talent Management: Getting It Right Final Considerations Assess your current talent processes – are they producing the results you need, or is it time to re-boot and start over. Start at the beginning; establish a talent philosophy, strategies and operating principles (consistent with vision and values). While technology, workflow and automation are important, don’t let them become a crutch to compensate for weaknesses in talent management competencies. Set high expectations and standards for leaders; ensure talent management goals carry significant performance and/or pay consequences. Research and adopt best practices, but beware of trying to replicate another organization’s outcomes.

Talent Management: Getting It Right Contact Information Scott Esposito Managing Director Horton International, LLC 29 South Main St., Suite 327 West Hartford, CT. 06107 W: (860)-521-0101 E: esposito@hortoninternational.com