Talent Management Module 06

Module 6 Objectives Understand the origin of talent management and how it fits within human resources planning (HRP), human capital management, Strategic HRM, and corporate strategy Discuss the evidence for the importance of TM in general and, specifically, in terms of the talent management lifecycle Discuss the common attributes of talented individuals Discuss the steps in the development and use of an HRP program. Explain the use of HRP in forecasting supply and demand of new employees Explain the importance of job analysis and job descriptions to talent management programs Identify and discuss the important HR metrics for the HRP program of a company. Explain the difference between a long and short strategy for TM and why it is important Explain the contribution of a TM program to corporate strategy as well as the importance of an adaptable workforce Discuss the effects of corporate culture on the talent management program Discuss how the use of computer applications in an HRIS support the components of talent management as well as their use in setting performance goals and evaluating job performance Discuss how companies are using social networks to recruit talented individuals

Chapter 11 Talent Management

THE STRATEGIC IMPORTANCE OF HR PLANNING To succeed under new competitive conditions, companies change vision, values, structure, strategy and corporate culture Changes in HR policies and practices encourage and support behaviors needed for organizational change Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

TALENT MANAGEMENT (TM) TM generally refers to the process of hiring, socializing, developing, and retaining employees, while at the same time attracting highly skilled individuals from the labor market. TM requires an HRM plan that is a comprehensive program of using and developing the person’s knowledge, skills, and abilities. The outcome of a TM program nested within the HRM function is that individuals can become high performing employees who can contribute to the effectiveness and profitability of the company. Strategic Importance of HR Planning: Right people for the right job at the right time based on goals & mission of the organization, particularly when it is necessary to modify future strategy, e. g., financial collapse of 2008-09. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

IMPORTANCE OF TALENT MANAGEMENT Results of two surveys SHRM 2010: 449 HR professionals Question: top HR challenges to face during the next decade Results: Nearly half the respondents (47 percent) said that obtaining human capital and optimizing on human capital investments was the top challenge for the next 10 years. CedarCrestone (2010) Question: what HR computer-based application categories would have increased adoption and usage in the near future Results: Three application categories will grow 90% or more talent management social media, and workforce optimization to include workforce planning and analytics Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

TALENT MANAGEMENT ISSUES Talent Management Lifecycle Created by expanding into new markets, changing needs of employees, and the retirement of “baby boomers” Acquiring and growing a talented human capital workforce that adapts to changes in the marketplace is key to the talent management lifecycle Requires long-term talent management strategy and a short-term tactical strategy Attributes for Talent : Five common ones Ability to communicate with others using multiple media Drive; motivation Ability and willingness to listen to the ideas of others Problem solving skills Imagination Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

HRP LINK TO BUSINESS OBJECTIVES Begins with the identification of the strategic goals/objectives of the company Business strategic goals/objectives focus attention on: Number of employees needed for growth or decline Required competencies and behaviors of employees Required levels of employee productivity Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

JOB ANALYSIS: ACCURACY CRITICAL FOR EFFECTIVE HRP In order In order to make forecasts in HRP accurate, it is crucial that the (KSA) required in the forecasted jobs be known. Job Analysis does this! Job Description: What the Job involves: duties, tasks, activities, responsibilities. Working contract Job Specification: What it takes to do the job – Knowledge, Skills & Abilities (KSAs), Competencies (behaviours, attitudes) Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

TALENT MANAGEMENT PROCESS HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits Strategic Choice HR Needs Firm Performance - skills - behaviors - culture - productivity - quality - profitability HR Capability HR Actions - behaviors - results - skills - abilities - knowledge Feedback & Emergent Strategies Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

OVERVIEW:HRP AND STRATEGIC PLANNING Identify people-related Analysis Strategy Formulation Strategy Implementation Clarify performance expectations and future management methods: values, guiding principles business mission objectives and priorities resource allocations Implement processes to achieve desired results: business goals company strengths/weaknesses external opportunities/threats source of competitive advantage Establish the context: business goals company strengths/weaknesses external opportunities/threats source of competitive advantage Identify people-related business issues Define HR strategies, objectives, and action plans Implement HR processes, policies and practices Human Resource Planning Process Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

THREE PHASES IN HUMAN RESOURCE PLANNING 5-3 Setting HRP Objectives (1) Determining Labor Demand derived from product demand – based on historic records Add employee turnover by job Determining Labor Supply: Two sources internal movements caused by transfers, promotions, turnover, retirements – data should be in HRIS external labor market Planning HR Programs (2) Determining Gap between demand and supply Changing/creating HR programs to fill gap Developing HR programs & evaluating (3) implementation of planned HRM programs from phase 2 determine if they have actually closed the gap between supply and demand Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

HRP: FORECASTING LABOR DEMAND STEPS Projected Sales Business Plan Forecast Overall Needs 1.0 Determine Job Needs 2.0 Employee Turnover Numbers & KSAs Turnover Rates Numbers & KSAs Job Openings HR Forecast storage Recruiting Program Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

DETAILED HUMAN RESOURCES PLANNING Resulting in Employment Forecasting Leads to Supply Analysis Balance Supply and Demand CONSIDERATIONS INTERNAL RECRUITMENT Product/Service Economics Technology Financial Resources Absenteeism/ Turnover Growth Management Philosophy Staffing Tables Markov Analysis Skills Inventories Management Inventories Replacement Charts Succession Planning Full-Time Part-Time Recalls Manager follow a systematic process, or model, when undertaking HRP. The three key elements of the process are outlined below and developed in more detail on subsequent slides. Key elements of HRP include: Employment Forecasting. HRP assesses the current and future needs of the organization for employment and helps to prepare to meet those needs at the direction of management. Supply Analysis. Supply analysis seeks to identify whether there are sufficient number and types of employees available to staff anticipated openings. Supply analysis activities encompass both internal and external sources of recruitment. Balancing Supply and Demand Considerations. HRP also must provide management with plans for managing supply and demand over time. This includes provisions for expanding and contracting the size of the organization’s work force. REDUCTIONS Terminations Layoffs Demotions Retirement EXTERNAL TECHNIQUES Demographic Changes Education of Workforce Labor Mobility Governmental Policies Unemployment Rate Trend Analysis Managerial Estimate Delphi Technique Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

TALENT MANAGEMENT AND CORPORATE STRATEGY The fundamental requirement to connect corporate strategy to HRP and TM is based on the capability to be able to adapt to changes in the global economy HR departments need to take on a value creation role to support corporate and business unit strategy HR function has to become a high-performance system designed to maximize the quality of human capital in the organization Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

CHANGE AND CREATING AN ADAPTABLE WORKFORCE Change is a constant in business companies need a workforce that can adapt to changes IBM (2008) study: need three key capabilities First, organizations must be capable of predicting their future skill requirements Second, they need to effectively identify and locate experts Third, they must be able to collaborate across their organizations 9/18/2018 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

TALENT MANAGEMENT AND CORPORATE CULTURE Talented individuals choose company based on image and culture Corporate culture Are strong enduring beliefs and tenets that the company holds dear. Differentiate the company from other companies. Seen in symbols, company history & heroes, behavioral norms Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

TM AND INFORMATION SYSTEMS Measuring the ROI for human capital in TM has to be reflected in the HR balanced scorecard Numeric results of the components of the TM program are: (1) number of talented individuals hired, (2) job performance of these individuals, and (3) retention of these individuals These numbers need to be entered into the HRIS The talent management functional areas offered by application software products include skills assessment, succession planning, recruiting management, career development, and employee lifecycle Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

TM, RECRUITING, PERFORMANCE EVALUATION, ANALYTICS & HRIS Social networking and company Web sites have become popular with recruiters and applicants There is business alignment and performance management software that assists in managing the employees’ lifecycle in an organization Using workforce analytics to manage talent involves asking questions of the employee data warehouse Queries about new employees in terms of job success based on with current employees Analytics for existing employees can be used to understand the personal characteristics of successful employees Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

MEASURING THE SUCCESS OF TALENT MANAGEMENT Measuring performance results is critical for all organizational programs This results-oriented perspective is also expected in the HR department for TM compare the costs of proposed programs to current TM program in terms of the financial benefits produced – Cost Benefit Analysis overall result will a cost-benefit ratio, and can be reflected on the HR balanced scorecard Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.