hiring for critical roles: you’re doing it wrong

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You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference. If you would like to join the teleconference, please dial 1.408.600.3600 and enter access code: 922 774 593 #. You will be on hold until the seminar begins. Hiring for Critical Roles: You’re Doing It Wrong #TMwebinar

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One of the great paradoxes of the current economy is a relatively high level of general unemployment among Western economies and simultaneously, a very tight labor market for certain skilled roles. Anecdotes of hiring cycles in the six-month range for specialized developers or designers are not uncommon in software circles, and high-tech manufacturers voice frequent complaints about the lack of skilled talent. The key to solving these hiring challenges is to think differently about the problem. All too often, hiring managers and recruiters default to a “hiring” focused answer, when frequently the real answer lies in development, internal mobility, apprenticeship and long-term career and succession planning. In this session, we’ll talk about how all these pieces fit together and why “hiring for critical roles” is fundamentally the wrong strategy in most cases.

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Page 1: Hiring for Critical Roles: You’re Doing It Wrong

You can listen to today’s webinar using your computer’s

speakers or you may dial into the teleconference.

If you would like to join the teleconference,

please dial 1.408.600.3600 and enter access code: 922 774 593 #.

You will be on hold until the seminar begins.

Hiring for Critical Roles: You’re Doing It Wrong

#TMwebinar

Page 2: Hiring for Critical Roles: You’re Doing It Wrong

Speaker: David Wilkins

Global HCM Solution Architect

Oracle

Moderator: Kellye Whitney

Managing Editor

Talent Management magazine

#TMwebinar

Hiring for Critical Roles: You’re Doing It Wrong

Page 3: Hiring for Critical Roles: You’re Doing It Wrong

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Page 4: Hiring for Critical Roles: You’re Doing It Wrong

Tools You Can Use

• Polling

– Polling question will

appear in the

“Polling” panel.

– Select your

response and click

on “Submit.”

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Page 5: Hiring for Critical Roles: You’re Doing It Wrong

Frequently Asked Questions

1. Will I receive a copy of the slides after the webinar? YES

2. Will I receive a copy of the recording after the webinar?

YES

Please allow up to 2 business days to receive these materials.

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Page 6: Hiring for Critical Roles: You’re Doing It Wrong

#TMwebinar

Kellye Whitney

Managing Editor

Talent Management magazine

Hiring for Critical Roles: You’re Doing It Wrong

Page 7: Hiring for Critical Roles: You’re Doing It Wrong

#TMwebinar

David Wilkins

Global HCM Solution Architect

Oracle

Hiring for Critical Roles: You’re Doing It Wrong

Page 9: Hiring for Critical Roles: You’re Doing It Wrong

8

Executive Summary

• High unemployment is a myth (at least for critical

roles)

• Skill shortages are bad and getting worse

• “Hiring” as a default approach is flawed

– It costs more.

– It results in lower productivity and performance.

– It hurts engagement and turnover for hi-pos.

• We need to reprioritize development and mobility

• To do this, we need better talent intelligence, job

definitions, and matching tools

• But mostly we need a strategy

Page 10: Hiring for Critical Roles: You’re Doing It Wrong

9

Poll

• Are you having difficulty filling critical roles?

• Yes

• No

Page 11: Hiring for Critical Roles: You’re Doing It Wrong

10

The “High Unemployment” Myth

Education level (March, 2012) Unemployment Rate

Less than high school diploma 12.9

High school diploma 8.3

Associate’s degree or some college 7.3

Bachelor’s or higher 4.2

Master’s (as of May 2011) 3.6

Doctorate’s or Professional (as of May

2011)

2.4

http://www.bls.gov/news.release/empsit.t04.htm

http://www.bls.gov/emp/ep_chart_001.htm

For critical roles, which group are you hiring from?

Page 12: Hiring for Critical Roles: You’re Doing It Wrong

11

The Challenge of Critical Roles

The R&D shortage is particularly

acute in industries where

product innovation is critical.

Among the Technology/ Media/

Telecom companies surveyed,

40% predict a severe shortage

of R&D talent, while 39% of

Consumer/ Industrial Products

companies surveyed and 37% of

Life Sciences/Health Care

companies surveyed foresee

shortages in this area.

Talent Edge 2020: Blueprints for

the new normal, December

2010, Deloitte.

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12

The Challenge of Critical Roles

The R&D shortage is particularly

acute in industries where

product innovation is critical.

Among the

Technology/Media/Telecom

companies surveyed, 40%

predict a severe shortage of

R&D talent, while 39% of

Consumer/ Industrial Products

companies surveyed and 37% of

Life Sciences/Health Care

companies surveyed foresee

shortages in this area.

Talent Edge 2020: Blueprints for

the new normal, December

2010, Deloitte.

Page 14: Hiring for Critical Roles: You’re Doing It Wrong

13

And the Future Looks Worse

Georgetown University Center on Education and the

Workforce on shortfall of college grads in 2018

Accenture study from 2006 showed that STEM

enrollments would need to increase by

between 2006-2016 to meet demand

3,000,000

20-30%

Instead, enrollments have GONE DOWN.

Page 15: Hiring for Critical Roles: You’re Doing It Wrong

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Poll Question

• How do you typically fill critical roles?

• Mostly external hires

• Mostly internal hires

• A pretty even mix of each

Page 16: Hiring for Critical Roles: You’re Doing It Wrong

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Challenges in Hiring Externally for Critical Roles

• Cost

• Time

• Retention

• Engagement

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16

External Hire Challenges: Cost and Time

• External hires cost more

– Critical roles are usually industry-wide, not company specific

– Thus, there is usually high demand for limited resources

– Critical roles are critical for a reason – unique skills, high

need

– Scarcity + high demand = high cost

– “Unknowns” in external hiring = more focus on “observable

characteristics” such as education / experience = pay

• Scarcity also often means head hunters which adds

more cost

• Scarcity also means longer time to hire, adding

opportunity cost

Page 18: Hiring for Critical Roles: You’re Doing It Wrong

17

External Hire Challenges: Cost and Time

• External hires cost more

– Critical roles are usually industry-wide, not company specific

– Thus, there is usually high demand for limited resources

– Critical roles are critical for a reason – unique skills, high

need

– Scarcity + high demand = high cost

– “Unknowns” in external hiring = more focus on “observable

characteristics” such as education / experience = pay

• Scarcity also often means head hunters which adds

more cost

• Scarcity also means longer time to hire, adding

opportunity cost

Page 19: Hiring for Critical Roles: You’re Doing It Wrong

18

External Hire Challenges:

Retention, Productivity, and Engagement

• External hires aren’t as productive as internal hires; it

takes 2 years for new hires to get “up to speed”

• Externals average shorter tenures than internal hires

• Externals average lower performance reviews

• Hiring outside = risk to existing top performers and

high potentials

– “Lack of career development” is #1 reason for dysfunctional

turnover

– “Training and development opportunity” is #1 driver of

employee engagement

– “More opportunities to do what I do best” is #1 driver of

employee engagement

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External Hire Challenges:

Retention, Productivity, and Engagement

• External hires aren’t as productive as internal hires; it

takes 2 years for new hires to get “up to speed”

• Externals average shorter tenures than internal hires

• Externals average lower performance reviews

• Hiring outside = risk to existing top performers and

high potentials

– “Lack of career development” is #1 reason for dysfunctional

turnover

– “Training and development opportunity” is #1 driver of

employee engagement

– “More opportunities to do what I do best” is #1 driver of

employee engagement

Page 21: Hiring for Critical Roles: You’re Doing It Wrong

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Why Does Talent Leave?

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Yet We Know Very Little About Our Talent:

Performance Management and Compensation

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Yet We Know Very Little About Our Talent:

Performance Management and Compensation

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Yet We Know Very Little About Our Talent:

Succession and Talent Mobility

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Yet We Know Very Little About Our Talent:

Succession and Talent Mobility

Page 26: Hiring for Critical Roles: You’re Doing It Wrong

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Yet We Know Very Little About Our Talent:

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.

Page 27: Hiring for Critical Roles: You’re Doing It Wrong

26

Addressing the Problem

External Hires

• Fresh eyes and perspectives

• High growth, new territories, new strategic directions

Internal Hires

• Anytime the other criteria don’t apply…

• In other words, this should be the “default” model

Page 28: Hiring for Critical Roles: You’re Doing It Wrong

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Your Default Hiring Flowchart

Catalog External Talent

Talent Profiles Catalog

Internal Talent

Page 29: Hiring for Critical Roles: You’re Doing It Wrong

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Your Default Hiring Flowchart

Catalog External Talent

Talent Profiles Catalog

Internal Talent

Job Roles Catalog Job

Requirements

Page 30: Hiring for Critical Roles: You’re Doing It Wrong

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Your Default Hiring Flowchart

Catalog External Talent

Talent Profiles Catalog

Internal Talent

Job Roles Catalog Job

Requirements

Match Potential Candidates

Page 31: Hiring for Critical Roles: You’re Doing It Wrong

30

Your Default Hiring Flowchart

Catalog External Talent

Talent Profiles Catalog

Internal Talent

Job Roles Catalog Job

Requirements

Match Potential Candidates

Assess Gaps Green light Candidates

Page 32: Hiring for Critical Roles: You’re Doing It Wrong

31

Your Default Hiring Flowchart

Catalog External Talent

Talent Profiles Catalog

Internal Talent

Critical Talent

Pipelines

Job Roles Catalog Job

Requirements

Match Potential Candidates

Assess Gaps Green light Candidates

Add

Page 33: Hiring for Critical Roles: You’re Doing It Wrong

32

Your Default Hiring Flowchart

Catalog External Talent

Talent Profiles Catalog

Internal Talent

Critical Talent

Pipelines

Job Roles Catalog Job

Requirements

Match Potential Candidates

Assess Gaps

Development Plans

Green light Candidates

Add

Page 34: Hiring for Critical Roles: You’re Doing It Wrong

33

Your Default Hiring Flowchart

Catalog External Talent

Talent Profiles Catalog

Internal Talent

Critical Talent

Pipelines

Job Roles Catalog Job

Requirements

Match Potential Candidates

Assess Gaps

Development Plans

Update Requirements

Green light Candidates

Add

Page 35: Hiring for Critical Roles: You’re Doing It Wrong

34

Address Your Talent Intelligence Gaps

• Where are your skill and competency gaps?

• Do you have robust talent data for your team?

– Pre-hire experience, job roles

– Skills, capabilities, competencies

– Self-identified skills developed in personal life

– Career aspirations and related gaps

– Learning and development plans

– Crowd-sourced assessment of potential, capabilities, fit, etc…

– Current and automatically updated talent data

Catalog Internal Talent

Page 36: Hiring for Critical Roles: You’re Doing It Wrong

35

Address Your Job Role Gaps

• Have you defined requirements for each job?

• Do you have job families?

• Can you identify potential career paths based on

competencies, capabilities, experience?

• For critical roles, have you identified longer-term

competency development strategies?

– Required experience and levels of mastery

– Education and formal knowledge requirements

– Bridge roles or “stepping stone” roles that provide experience

– Assessment models

Catalog Job Requirements

Page 37: Hiring for Critical Roles: You’re Doing It Wrong

36

Developing Your Talent

• Career Aspirations

• Skill Gap Assessment

• Action Learning

• Stretch Goals and Assignments

• Talent Mobility

• Multi-stage Development and Competency Model

• Mentor / Mentee Models

Development Plans

Assess Gaps

Page 38: Hiring for Critical Roles: You’re Doing It Wrong

37

Update Requirements

• Is the job definition static or dynamic?

• How much “wiggle room” is there to rethink work

assignments and responsibilities to overcome gaps?

• Do requirements change over time in response to

changing competitive landscape, strategy, new

opportunities or threats?

• Job roles and requirements are a means to an end

– Reflection of “best” way to organize work, not the “only” way

– Often better to rethink work assignments than lose a top

performer or hi-po for lack of internal opportunities

Update Requirements

Assess Gaps

Page 39: Hiring for Critical Roles: You’re Doing It Wrong

38

Matching – Not Deep Enough

• Goal is not to “hire,” but to match talent to

requirements

• Yet we don’t know the basics

Match

48% 75%

say that their skills go

unnoticed

feel that their work history &

experiences are not leveraged

by their employer

Page 40: Hiring for Critical Roles: You’re Doing It Wrong

39

My family / partner

21%

My friends outside of work

4%

My colleagues and peers

43%

HR software / systems

1%

My line manager 22%

Don’t know 5%

Other 1%

None of the above

3% My family / partner

43%

My friends outside of work

9%

My colleagues and peers

22%

HR software / systems

1%

My line manager

13%

Don’t know 5%

Other 1%

None of the above

6%

Matching – Not Social Enough

Those who know talent best aren’t involved in matching

Match

Professional & work

capabilities

Professional & work

aspirations / ambitions

Page 41: Hiring for Critical Roles: You’re Doing It Wrong

40

Matching – Not Smart Enough Match

Page 42: Hiring for Critical Roles: You’re Doing It Wrong

41

Recruiters – Not Smart Enough

• What’s the #1 predictor of job performance?

– Interview

– References

– Job Tryout

– Cognitive Ability or Psychomotor Skills

– Educational Background

– Experience

– Training and Experience Rankings

– Academic Achievement

– Interest

– Age

– Biographical Inventory

Page 43: Hiring for Critical Roles: You’re Doing It Wrong

42

Research Data – Predicting Job Performance

Page 44: Hiring for Critical Roles: You’re Doing It Wrong

43

Blend Your Critical Talent Pipelines

• Internal candidates

• External candidates

• Stop-gap contingent workers

Critical Talent

Pipelines

Page 45: Hiring for Critical Roles: You’re Doing It Wrong

44

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45

Page 47: Hiring for Critical Roles: You’re Doing It Wrong

46

Page 48: Hiring for Critical Roles: You’re Doing It Wrong

47

Wrap up

• High unemployment is a myth (at least for critical

roles)

• Skill shortages are bad and getting worse

• “Hiring” as a default approach is flawed

– It costs more.

– It results in lower productivity and performance.

– It hurts engagement and turnover for hi-pos.

• We need to reprioritize development and mobility

• To do this, we need better talent intelligence, job

definitions, and matching tools

• But mostly we need a strategy

Page 50: Hiring for Critical Roles: You’re Doing It Wrong

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The Evolution of Reference-Checking Into a

Strategic Hiring Solution