business impact of talent intelligence

T A L E N T I N T E L L I G E N C E K N O W S .

THE BUSINESS IMPACT OF TALENT INTELLIGENCE

David WilkinsVP, Taleo Research

@dwilkinsnh@TaleoResearch

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YOUR PRESENTERS

› David Wilkins, VP Taleo Research

› David Wilkins has been a workplace thought leader for more than 15 years, pioneering innovative approaches in employee productivity and performance, recruiting and retention, and communications. As Vice President of Taleo Research, David is responsible for primary and secondary research in the talent management and broader HR space.

› Amy Lewis, Practice Leader for Talent Strategy and Talent Acquisition, HCS

AGENDA

› 2010 & 2011 studies

› What is talent intelligence?

› Review of survey findings

› Recommendations

› Q&A

2010 STUDY

› Significant gaps between level of importance of talent data and access

› Focused on efficiency rather than effectiveness

› Not measuring the metrics that matter

2011 STUDY

Key questions to answer:

› What are the financial benefits of using TI?

› What are some common TI practices?

› What metrics are used and what metrics need to be developed?

› What are the barriers to adopting TI systems and how have they been overcome?

WHAT IS TALENT INTELLIGENCE?

Talent intelligence is the ability to capture meaningful information on company talent

in order to help managers gain more insight and make better business decisions faster.

DPOS VERSUS DDOS

How much do you agree that your organization is proficient at analyzing workforce data? How satisfied are your business leaders with the data that is provided to them?

Data Proficient Organizations (DPOs):

Those organizations that agree they are proficient at analyzing

workforce data AND their business leaders are satisfied with the

workforce data provided to them.

Data Deficient Organizations (DDOs):

Those organizations that disagree they are proficient at analyzing workforce data AND/OR their

business leaders are not satisfied with the workforce data provided to

them.

HR SATISFACTION

› How much do you agree with this statement: HR uses workforce metrics to demonstrate its contribution to your organization’s business goals and strategy.

› How satisfied are you with your organization’s ability to analyze and make connections between recruiting and retention?

DPOs DDOs

Agree HR uses workforce metrics to demonstrate its contribution to your organization's business goals and strategy

94% 50%

Satisfied with organization’s ability to analyze and make connections between recruiting and retention

78% 20%

BENEFITS

78%

73%

70%

68%

66%

64%

59%

59%

0% 25%

50%

75%

100%

Higher productivity and innovation resulting from the right people in the right roles

More efficient and effective hiring resulting from better identification of required profiles

Greater organizational agility created by more awareness of talent gaps and strengths

Improved engagement levels tied to job fit and better overall alignment between individual contributions

Better partnership and communication aided by a stronger connection between business planning and talent planning

Reduced turnover results from better hiring and improved fit

Higher levels of business continuity driven by improved succession planning

Increase flexibility in business response aided by short- and long- term workforce planning

How important are the following benefits to your organization, if you had greater access to robust talent data and related insight and analytics?

Percentage Very Important

BENEFITS

78%

73%

70%

68%

66%

64%

59%

59%

0% 25%

50%

75%

100%

Higher productivity and innovation resulting from the right people in the right roles

More efficient and effective hiring resulting from better identification of required profiles

Greater organizational agility created by more awareness of talent gaps and strengths

Improved engagement levels tied to job fit and better overall alignment between individual contributions

Better partnership and communication aided by a stronger connection between business planning and talent planning

Reduced turnover results from better hiring and improved fit

Higher levels of business continuity driven by improved succession planning

Increase flexibility in business response aided by short- and long- term workforce planning

How important are the following benefits to your organization, if you had greater access to robust talent data and related insight and analytics?

Percentage Very Important

73%

60%

58%

56%

46%

45%

42%

14%

0% 25% 50% 75% 100%

ROI of employee development

Revenue per employee

Profitability

Cost per hire

HR spend per employee

Cost of training

Sourcing cost

Stock value

Which of the following financial metrics would be positively impacted by leveraging more robust

talent insights?

TOP AND BOTTOM METRICS

IMPORTANCE AND ACCESS

› 37 key metrics from around the talent lifecycle

› How important is this data? Are you able to access it and is it reliable?

– Workforce data

– Sourcing, onboarding talent

– Learning and development

– Succession planning and talent mobility

– Performance management and compensation

WORKFORCE DATA - DDO

Em

ploy

ee E

ngag

emen

tC

ompe

tenc

y S

kill

Gap

Ana

lysi

s

Tota

l Tur

nove

rO

pen

\ Vac

ant P

ositi

ons

WORKFORCE DATA - DPO

Em

ploy

ee E

ngag

emen

tC

ompe

tenc

y S

kill

Gap

Ana

lysi

s

Tota

l Tur

nove

rO

pen

\ Vac

ant P

ositi

ons


Em

ploy

ee E

ngag

emen

tC

ompe

tenc

y S

kill

Gap

Ana

lysi

s

Tota

l Tur

nove

r

Ope

n \ V

acan

t Pos

ition

s


Em

ploy

ee E

ngag

emen

tC

ompe

tenc

y S

kill

Gap

Ana

lysi

s

Tota

l Tur

nove

r

Ope

n \ V

acan

t Pos

ition

s

Under Investment

Over Investment

SOURCING AND ONBOARDING

Qua

lity

of H

ire

Bes

t sou

rces

of T

alen

t

Ave

rage

Tim

e to

Hir

e

for

Cri

tical

Rol

esFi

rst Y

ear

Volu

ntar

y Tu

rnov

er

Tim

e to

Pro

duct

ivity

Ave

rage

Tim

e to

Hir

e

% o

f Pos

ition

s Fi

lled

by In

tern

al

Off

er A

ccep

tanc

e R

ate

Tota

l New

Hir

e C

ost

# of

App

licat

ions

per

Hir

e


Qua

lity

of H

ire

Bes

t sou

rces

of T

alen

t

Ave

rage

Tim

e to

Hir

e

for

Cri

tical

Rol

esFi

rst Y

ear

Volu

ntar

y Tu

rnov

er

Tim

e to

Pro

duct

ivity

Ave

rage

Tim

e to

Hir

e

% o

f Pos

ition

s Fi

lled

by In

tern

al

Off

er A

ccep

tanc

e R

ate

Tota

l New

Hir

e C

ost

# of

App

licat

ions

per

Hir

e

We know a lot about stuff that’s tactical.

We know very little about stuff drives the

business.


Qua

lity

of H

ire

Bes

t sou

rces

of T

alen

t

Ave

rage

Tim

e to

Hir

e

for

Cri

tical

Rol

esFi

rst Y

ear

Volu

ntar

y Tu

rnov

er

Tim

e to

Pro

duct

ivity

Ave

rage

Tim

e to

Hir

e

% o

f Pos

ition

s Fi

lled

by In

tern

al

Off

er A

ccep

tanc

e R

ate

Tota

l New

Hir

e C

ost

# of

App

licat

ions

per

Hir

e


Qua

lity

of H

ire

Bes

t sou

rces

of T

alen

t

Ave

rage

Tim

e to

Hir

e

for

Cri

tical

Rol

esFi

rst Y

ear

Volu

ntar

y Tu

rnov

er

Tim

e to

Pro

duct

ivity

Ave

rage

Tim

e to

Hir

e

% o

f Pos

ition

s Fi

lled

by In

tern

al

Off

er A

ccep

tanc

e R

ate

Tota

l New

Hir

e C

ost

# of

App

licat

ions

per

Hir

e

Sometimes we have decent data, but we

can’t always slice and dice it in meaningful

ways.

LEARNING AND DEVELOPMENT

% o

f Dev

elop

men

t Pla

ns

Alig

ned

to G

oals

% o

f the

Wor

kfor

ce

Com

plet

ed R

equi

red

Trai

ning

% o

f Dev

elop

men

t Pla

ns th

at

Suc

cess

fully

Add

ress

Per

form

ance

Gap

s%

of C

ompl

ete

Em

ploy

ee

Dev

elop

men

t Pla

nsLe

ngth

of T

ime

Bet

wee

n

Trai

ning

Inte

rven

tion

and

Impr

oved

Per

form

ance

LEARNING AND DEVELOPMENT

% o

f Dev

elop

men

t Pla

ns

Alig

ned

to G

oals

% o

f the

Wor

kfor

ce

Com

plet

ed R

equi

red

Trai

ning

% o

f Dev

elop

men

t Pla

ns th

at

Suc

cess

fully

Add

ress

Per

form

ance

Gap

s%

of C

ompl

ete

Em

ploy

ee

Dev

elop

men

t Pla

nsLe

ngth

of T

ime

Bet

wee

n

Trai

ning

Inte

rven

tion

and

Impr

oved

Per

form

ance

We know who’s being trained and

developed;

we just have no idea whether it matters…

PERFORMANCE MANAGEMENT AND COMPENSATIONTo

p P

erfo

rmer

Ret

entio

nP

rodu

ctiv

ity

Top

Per

form

er F

light

Ris

kH

igh

Pot

entia

ls b

y D

epar

tmen

t

Com

pens

atio

n

Ben

chm

arks

by

Job

Rol

e

% o

f Bon

us P

ool t

o To

p

Per

form

ers

Top

Per

form

ers

with

out a

Car

eer

Pla

nA

vg P

erfo

rman

ce R

evie

w S

core

s

PERFORMANCE MANAGEMENT AND COMPENSATIONTo

p P

erfo

rmer

Ret

entio

nP

rodu

ctiv

ity

Top

Per

form

er F

light

Ris

kH

igh

Pot

entia

ls b

y D

epar

tmen

t

Com

pens

atio

n

Ben

chm

arks

by

Job

Rol

e

% o

f Bon

us P

ool t

o To

p

Per

form

ers

Top

Per

form

ers

with

out a

Car

eer

Pla

nA

vg P

erfo

rman

ce R

evie

w S

core

s

We know we need to keep top performers,

but we don’t know who’s at risk or why…

SUCCESSION AND TALENT MOBILITYC

ritic

al R

oles

with

No

Iden

tifie

d S

ucce

ssor

s

Suc

cess

ion

Ben

ch S

tren

gth

% o

f Lea

ders

hip

Pip

elin

e Fi

lled

Ext

erna

lly v

s. In

tern

ally

% o

f Suc

cess

ion

Pla

ns A

ctua

lly

Impl

emen

ted

Top

Per

form

ers

Not

on

Suc

cess

ion

Pla

ns

Per

form

ance

Rev

iew

Sco

res

afte

r a

Mob

ility

Eve

nt

SUCCESSION AND TALENT MOBILITYC

ritic

al R

oles

with

No

Iden

tifie

d S

ucce

ssor

s

Suc

cess

ion

Ben

ch S

tren

gth

% o

f Lea

ders

hip

Pip

elin

e Fi

lled

Ext

erna

lly v

s. In

tern

ally

% o

f Suc

cess

ion

Pla

ns A

ctua

lly

Impl

emen

ted

Top

Per

form

ers

Not

on

Suc

cess

ion

Pla

ns

Per

form

ance

Rev

iew

Sco

res

afte

r a

Mob

ility

Eve

nt

We know we need to have succession plans

for critical roles, but we don’t…

TOP PERFORMER AND HI-PO DATA IS UGLY

› 80% of companies don’t know who is a flight risk.

› 78% of companies don’t know who is on a succession plan.

› 80% of companies don’t know who has a career path.

› 65% of companies don’t know much about who they’re retaining.

› 84% of companies don’t if their development plans are working.

› 65% of companies don’t know much about Hi-Po’s.

Performance Plans Aligned to Goals

Succession Bench Strength

Top Performers NOT on succession plans

Risk of loss for critical employees/positions

Top performers with NO career path

Competency/skills gap analysis

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Important or Very Important Access to Reliable Data

2010 VS. 2011: AVERAGE DIFFERENCES? NOT MUCH

Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010

Performance Plans Aligned to Goals

Succession Bench Strength

Top Performers NOT on succession plans

Risk of loss for critical employees/positions

Top performers with NO career path

Competency/skills gap analysis

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Important or Very Important Access to Reliable Data

2010 VS. 2011 DIFFERENCES? MORE NUANCED ANALYSIS

Source: US Talent Intelligence Survey, Taleo Research and HCI, 2010

2010: <25% had critical insight into their

people

2011: 35% classified as “Data Proficient”

DPO VS. DDO IMPORTANCE METRICS CAN BE BIG

› Critical Roles with No Identified Successors 23%

› Top Performers without a Career Path 21%

› % of Development Plans Aligned to Goals 23%

› Best Sources of Talent 22%

› Average Time to Hire for Critical Roles 19%

› Employee Engagement 27%

› Competency Skill Gaps 20%

› Productivity21%

› High Potentials by Department 19%

Importance


› Critical Roles with No Identified Successors 23% 28%

› Top Performers without a Career Path 21% 23%

› % of Development Plans Aligned to Goals 23% 24%

› Best Sources of Talent 22%26%

› Average Time to Hire for Critical Roles 19% 28%

› Employee Engagement 27%22%

› Competency Skill Gaps 20%23%

› Productivity21% 23%

› High Potentials by Department 19%26%

Importance Reliable Access


› Critical Roles with No Identified Successors 23% 28%

› Top Performers without a Career Path 21% 23%

› % of Development Plans Aligned to Goals 23% 24%

› Best Sources of Talent 22%26%

› Average Time to Hire for Critical Roles 19% 28%

› Employee Engagement 27%22%

› Competency Skill Gaps 20%23%

› Productivity21% 23%

› High Potentials by Department 19%26%

Importance Reliable Access

Across all measures, DPO’s average

“reliable access” score was 24%

better than DDO’s

FINANCIAL PERFORMANCE

Source: Deloitte, “Extracting Maximum Value from Intangible Assets”

INTANGIBLES: 80% AND GROWING

Source: Deloitte, “Extracting Maximum Value from Intangible Assets”

“…knowledge workers have driven more

than 70 percent of the economic growth

in the U.S. over the past three decades,

and 85 percent of the new jobs created

in the past decade have required

complex knowledge skills.”

McKinsey – Economic Conditions Snapshot, 2010

INTANGIBLES: 80% AND GROWING

RANKING OF BARRIERS

DDOs

1. Lack of analytic skill

2. Already have a system

3. Lack of executive support

4. Cost

5. Lack of tools

DPOs

1. Already have a system

2. Lack of analytic skill

3. Lack of tools

4. Cost

5. Lack of executive support

SUMMARY & CONCLUSIONS

› On average, not much movement from 2010

– Companies still don’t know measure strategic TM

– Over investment in tactical data, under in strategic

› If other functions in the business knew as little about their core asset, those leaders would be fired

› Some companies are beginning to do things differently

› Those companies are outperforming peers on key financials

› As an industry, we need to get serious about talent intelligence

– Shift to knowledge work requires it

– Competitive pressures demand it

– War for Talent never went away and it’s going to get worse fast

business impact of talent intelligence

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