1 HCI Research Set Talent in Motion: Achieving Organizational Success with Talent Mobility In partnership with:
2 HCI Research Table of Contents Executive Summary...1 About this Research...3 Definition of Key Terms...3 Introduction...4 Leveraging the Mobility Environment...5 Defining Talent Mobility...6 Recognizing Talent Mobilizers...7 Proactive Versus Reactive Talent Mobilizers...10 Talent Mobility Behaviors & Practices...12 Identifying & Addressing Talent Mobility Challenges...17 Conclusions & Recommendations...19 Appendix A: About the Research Partners...22 Appendix B: Respondent Demographics...23 Appendix C: Works Cited...25 ii Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
3 Set Talent in Motion: Achieving Organizational Success with Talent Mobility Set Talent in Motion: Achieving Organizational Success with Talent Mobility Executive Summary This original research report by the Human Capital Institute (HCI) and Lee Hecht Harrison (LHH) explores the discipline of Talent Mobility, an integrated talent management process supporting talent movement that hinges on an organization s ability to effectively understand, develop, and deploy talent in response to business needs within and outside of an organization. These behavioral segments are defined in the following way: Understand organizations focus on talent mobility as a priority, prepare managers to assess their talent and actively communicate with employees information and plans about career opportunities. Develop organizations provide and prioritize opportunities for employees to gain experience and increase skills, while holding managers accountable for developing employees. Deploy organizations focus on filling open roles internally and ensuring that employees have the tools they need to move into new and different positions, while also recognizing redeployment and outplacement as critical components of the talent mobility lifecycle. A 37-item survey distributed to organizational leaders in the spring of 2013 formed the basis of this research in which we examined current concepts, practices and challenges, and proposed a new holistic model of Talent Mobility for businesses to capitalize on. 1 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
4 HCI Research The greatest challenges facing Talent Mobility in business today are: confusion and inconsistent definitions of what Talent Mobility is; a lack of a true, strategic approach to designing and implementing related programs and initiatives; and, a lack of proper prioritization across the broader goals of the organization. Our research proposed and tested a holistic model of Talent Mobility, and found that organizations and leaders must plan and implement three distinct processes in order to achieve Talent Mobility success: 1. Understand an organization s current talent and needs; 2. Strategically Develop that talent; and 3. Effectively Deploy the talent. Our hypothesis was that Committed Talent Mobilizers organizations that exhibit all three of the behaviors above would achieve better bottom-line results, as well as espouse a more proactive approach to Talent Mobility than would other organizations. Our survey findings confirmed this hypothesis. Organizational leaders from Committed Talent Mobilizers are more likely to agree that within their business, High potentials are identified, development plans are created, career discussions are conducted regularly, and succession plans for key positions are created and supported. Moreover, organizations that have embraced a holistic view of Talent Mobility are much more likely than other organizations to report revenue growth at or above target goals. The report illustrates the Talent Mobility landscape today, highlighting common behaviors and practices, and identifies key areas for improvement. Most notably: To meet the demands of today s employee development needs related to Talent Mobility, organizations must be more transparent about opportunities for lateral moves and advancement opportunities. As a whole, organizations are underperforming in terms of providing employees with information and resources needed to improve their skills, and do not prioritize or adequately fund Talent Mobility practices. Employees today expect -and organizations will benefit from- enhanced employee opportunities such as working in cross-functional teams, task/ job rotation, and stretch assignments. To ensure that Talent Mobility is treated as a holistic process, more collaboration is needed among Recruiting & Hiring, Training & Development, and HR Business Partners. 2 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
5 Set Talent in Motion: Achieving Organizational Success with Talent Mobility About This Research This research study was developed in a partnership between the Human Capital Institute (HCI) and Lee Hecht Harrison (LHH), and was conducted in the spring of A total of 435 valid surveys were completed in March 2013 by HCI members and LHH clients, the results of which make up the core of this research. As part of the HCI research process, qualitative interviews were conducted with business leaders, practitioners, and subject matter experts on the topic of Talent Mobility. These contributors include: Margo Armstrong, Assistant Vice President, Talent Practices, MassMutual Wanda Shoer, Director of Global Mobility Operations, Johnson & Johnson The research findings are summarized in this report, along with information and quotes from relevant secondary sources, including white papers, articles, books, interviews and case studies. Definition of Key Terms Talent Mobility An integrated talent management process supporting talent movement that hinges on an organization s ability to effectively understand, develop, and deploy talent in response to business needs. Indices of Understand, Develop & Deploy Indices produced by the HCI/LHH survey analysis that represent the three essential behavioral components of Talent Mobility. Committed Talent Mobilizers Respondent organizations that scored highly on all three Talent Mobility indices: Understand, Develop and Deploy. Tier II Talent Mobilizers Respondent organizations that scored highly on two of the three Talent Mobility indices. Tier I Talent Mobilizers Respondent organizations that scored highly on only one of the three Talent Mobility indices. Non-Mobilizers Respondent organizations that did not score highly on any of the three Talent Mobility indices. Proactive Talent Mobility Organizations characterized by activities such as identifying high-potential employees, creating development plans, holding regular career discussions, and creating and supporting succession plans for key positions. 3 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
6 HCI Research Reactive Talent Mobility Organizations that tend not to identify future talent needs, have a weak pipeline, and only fill key roles after they are vacated. Introduction Today s leading organizations are devoting more attention than ever before to Talent Mobility. What was once recognized as a strategy for preparing employees to take on global assignments has evolved considerably in the past few years. Today, it has become a more comprehensive workforce planning strategy and approach that encompasses the readiness for talent movement and the management process of shifting talent across an organization s projects, roles, teams, departments, and locations. It embraces and plans for increased lateral and vertical movement among employees, domestic and global moves, and even transitions talent outside of the organization. When effectively planned and implemented, a Talent Mobility program is wholly beneficial for both the organization and key employees. It enables an organization to lower its talent acquisition costs by capitalizing more efficiently on in-house talent, helps leaders develop a more capable and resilient talent pipeline, and helps deliver strong financial performance. At the same time, Talent Mobility is a way to engage top performers and make organization-wide opportunities more readily available to key talent. One study remarked on this trend: One of the biggest success-drivers in enduring organizations is their ability to rapidly and transparently move people from role to role and function to function as business needs change. To do this requires a new way of thinking about and managing talent. It requires managers to become more fluent and transparent when speaking about talent and it requires employees to become more actively engaged and candid about their career aspirations and development goals. 1 1 Bersin by Deloitte. (2009, November 18). Talent Mobility: The New Era of Talent Management. Retrieved May 24, 2013, from In this research, we found that in order to achieve success with a Talent Mobility program, organizations and leaders must first understand the organization s current talent and needs, strategically develop that talent, and effectively deploy it to where it can best support organizational goals. The nebulous nature of the term Talent Mobility raises questions about how it is perceived and practiced today, and offers us the opportunity to more clearly define it in this report. In addition to obtaining baseline data about the practice of Talent Mobility, our research examined what behaviors differentiate organizations as they mobilize their talent. Measures tied to the indices of Understand, Develop, and Deploy were analyzed to see which, if any, impact revenue and an organization s approach to Talent Mobility. 4 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
7 Set Talent in Motion: Achieving Organizational Success with Talent Mobility For the generation now entering the workforce, there is a big interest in moving around a business, in doing different things with your career and making an immediate impact. To be able to support that kind of speed, organizations need to think about talent mobility and capitalize on the practice of it. Moving talent laterally is a way to keep new generations interested and focused on expanding their skills and support the business, while also giving them what they need in order to develop into leaders. Wanda Shoer, Director of Global Mobility Operations, Johnson & Johnson 2 Pace, A. (2012, July). The Enduring Talent Trial. T+D, p Carnevale, T. (2005, January). The Coming Labor and Skills Shortage. T+D, pp Population Division, Department of Economic & Social Affairs, United Nations. (2002). World Population Ageing: New York: United Nations Publications. 5 Bureau of Labor Statistics, U.S. Department of Labor. (2012, September 18). Retrieved May 24, 2013, from Bureau of Labor Statistics: Leveraging the Mobility Environment The state of talent management today calls for solutions that Talent Mobility can offer. On one hand, organizations are experiencing a shortage of skilled labor and weak leadership pipelines. Despite their zeal for workforce development, CEOs admit their shortcomings when it comes to securing the right people for the right jobs to drive growth, Ann Pace notes in a 2012 T +D Magazine article. Because of talent constraints during the past 12 months, 31 percent [of CEOs] could not innovate effectively, 29 percent were unable to pursue a market opportunity, and 24 percent canceled or delayed a key strategic initiative. 2 These challenges are only expected to intensify in many developed countries as large numbers of workers reach the retirement age. In the U.S., more than 46 million Baby Boomers with training and education beyond high school will be over age 57 in 2020, which could translate into a labor shortage of as many as 20 million skilled workers. 3 Worldwide, one in 12 individuals was at least 60 years old in 1950, a statistic that increased to one in 10 in 2000, and the proportion is expected to increase to more than one in five by Simultaneously, as the workforce demographic is changing, the drive for workplace flexibility continues to alter the talent-management landscape. Many younger workers feel restricted by the standardized 9 5 work cycle, while more mature workers find themselves caring for children and/or aging parents while also managing work obligations. Employers are meeting these demands by redefining when, where, and how workers are able to do their jobs remotely, on a flexible schedule, and/or through job-sharing, for example. In the midst of such sweeping change, employee turnover particularly among younger workers is a challenge for today s organizations. While the median job tenure for U.S. workers age 65 and older was about 10.3 years in 2012, it was only 3.2 years for workers ages 25 to 34, and for all U.S. workers, the median employee tenure was 4.6 years. 5 Employees in the 21st century are simply not planning to make a career at a single organization (or even two or three). Many of these individuals are seeking job fulfillment and rapid career growth, and they are willing and able to job hop to achieve those goals. According to a PricewaterhouseCoopers study, 38% of Millenials surveyed agreed with the statement I am always actively on the lookout for other opportunities and keep an eye on the job market. The recent economic downturn and tenuous recovery has potentially compounded this turnover issue, as L&D departments have refrained from offering the full spectrum of training programs and development processes to employees, further adding to the stagnation of workers and their skillsets. If employees lack meaningful challenges in their roles and feel that career opportunities are limited, they are organizational flight risks especially as the economy rebounds. In addition to the loss of productive and high-potential talent that voluntary turnover can result in, replacing that key talent is an 5 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
8 HCI Research Talent Mobility is an integrated talent management process supporting talent movement that hinges on an organization s ability to effectively understand, develop, and deploy talent in response to business needs. expensive proposition for organizations, as turnover costs can range from % of a departing employee s salary. 6 Organizations are realizing more than ever that not having the right employees strategically deployed hinders productivity and is a risk to the organization s overall health and talent pool. In addition, a failure to deploy talent most effectively leads to increased work for recruiting and acquisition departments that often operate reactively to fill critical, vacant roles. In response to this challenge, organizations and leaders can address Talent Mobility practices and integrate a new, holistic perspective and approach to it in their organizational culture. Defining Talent Mobility As a first step in our survey research, we asked respondents how their organizations currently define Talent Mobility. No consensus emerged; rather, organizational leaders expressed wide variance in how their organizations perceive the term. Nearly half of respondents (47%) cited that development of in-house talent most closely aligned with their organization s definition of Talent Mobility, followed by promotions/advancement of roles (see Fig. 1). Figure 1: What is Talent Mobility? Development of in-house talent 47% Promotions/Advancement of roles 29% Lateral moves within the business 13% Moving positions and/or tasks 12% to people best positioned to manage them 0% 10% 20% 30% 40% 50% Fig. 1 demonstrates how respondent organizations perceive or define Talent Mobility. 6 Brotherton, P. (2010, December). Warning Signs of Turnover Waiting to Happen. T+D, p. 24. In order to address the lack of a basic definition of Talent Mobility among organizational leaders, we propose the following definition that is supported by our research data and analysis: Talent Mobility is an integrated talent management process supporting talent movement that hinges on an organization s ability to effectively understand, develop and deploy talent in response to business needs. In order to achieve success in a Talent Mobility program, organizations must implement effective ways to assess the talent already in-house, design development methods to increase the scope and skill-sets of that talent, and enforce plans to deploy that talent according to the needs of the organization (see Fig. 2). 6 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
9 Set Talent in Motion: Achieving Organizational Success with Talent Mobility nd t ers t a n d Ta le n Figure 2: Holistic Model of Talent Mobility De Know your employees strengths and development needs Talent lop ve U Talent Mobilizers y lo Dep Plan and prioritize to help employees gain experience and increase skills Provide the tools and resources to move employees into new internal or external roles Ta le n t Fig. 2 illustrates the holistic model of Talent Mobility, an integrated process supporting talent management that hinges on an organization s ability to effectively understand, develop, and deploy talent in response to business needs. Recognizing Talent Mobilizers Rather than a singular process within talent development, Talent Mobility is better understood as a critical segment of the talent lifecycle that includes three primary facets of talent mobilization from strategically acquiring and assessing talent, to actively developing those individuals, to preparing and deploying employees effectively for roles inside or even outside of the organization. To explore the impact of these on organizational performance, we conducted a factor analysis to create three indices to capture the key elements of these behaviors understand, develop, and deploy. An organization scored high on an index if respondents reported that the correlated behaviors listed below are practiced or offered 50% of the time or more often. Those organizations that scored high on an index were then categorized as an Understander, Developer, or Deployer, respectively. Understanders Organizations that understand their talent focus on talent mobility as a priority, prepare managers to assess their talent and actively communicate with employees information and plans about career opportunities. Behavioral measures of Understanders include: Employees are well informed about open positions. Managers assess existing talent. Leaders invest financial resources into talent mobility. Organizations conduct company-wide talent reviews. Organizations hold regularly scheduled performance reviews. 7 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
10 HCI Research Organizations use talent management software. Successors to key positions are identified ahead of need. Developers Organizations that develop their talent do so by providing and prioritizing opportunities for them to gain experience and increase skills, while holding managers accountable for developing employees. Behavioral measures of Developers include: Managers are responsible and held accountable for building and developing talent. Organizations use career planning processes or platforms. Opportunities for stretch assignments are offered/available. Coaching is offered/available. Internal networking is offered/available. Job search/skill development is offered if/when downsizing occurs. Deployers Organizations that deploy their talent effectively focus on filling open roles internally and ensuring that employees have the tools they need to move into new and different positions. These companies also recognize redeployment and outplacement as critical components of the talent mobility lifecycle. Behavioral measures of Deployers include: Redeployment is considered a key component of talent mobility. Outplacement is a key component of talent mobility. Dedication and seniority are rewarded with opportunities for advancement. Management positions are typically filled internally. Organizations focus on moving job roles/tasks to people best positioned to manage them. Organizations measure/track internal talent moves. Leaders provide employees with tools/information needed to capitalize on internal opportunities. We grouped organizations according to the extent to which they exhibit the behaviors associated with Understanders, Developers, and/or Deployers to determine what survey respondent organizations are doing, and how many have adopted a holistic talent mobilization strategy (see Fig. 3). Based on our data, we broke down respondents into one of four Talent Mobilizer types Non-Mobilizers, Tier I Talent Mobilizers, Tier II Talent Mobilizers, and Committed Talent Mobilizers, and this classification showed a relatively balanced distribution: 8 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
11 Figure 3: Talent Mobilization Types Set Talent in Motion: Achieving Organizational Success with Talent Mobility 26% 26% (3 out of 3 behaviors) 24% 24% 26% 26% 26% 26% Committed Talent Mobilizers Non-Mobilizers (0 out of 3 behaviors) Tier I Talent Mobilizers Committed Talent Mobilizers (1 (3 out of 3 behaviors) Tier Non-Mobilizers II Talent Mobilizers (2 (0 out of 3 behaviors) 24% 24% 24% 24% 26% 26% Tier I Talent Mobilizers Committed Talent Mobilizers (3 (1 out out of of 3 behaviors) behaviors) Non-Mobilizers Tier II Talent Mobilizers (0 (2 out of 3 behaviors) As a leader, understanding what it takes to develop an individual and knowing what tools are available to do so is essential. Recognizing what kinds of development methods are offered and which ones are most appropriate to increase necessary skills can have a significant and positive impact in how these programs are used. Also, understanding who your talent is and how you can help them grow is key. This process of understanding, developing, and deploying talent is critical to effective talent mobility; flexibility and continuous analysis is also vital. Wanda Shoer, Director of Global Mobility Operations, Johnson & Johnson 7 Oracle. (2012, June). Talent Mobility: An Oracle White Paper. 24% 24% Tier I Talent Mobilizers Fig. 3 illustrates the breakdown of talent mobilization types (1 out Non-Mobilizers, of 3 behaviors) Tier I Talent Mobilizers, Tier II Talent Mobilizers, and Committed Talent Mobilizers. Tier II Talent Mobilizers Non-Mobilizers: About one quarter (26%) of organizations (2 out of 3 behaviors) did not score highly on any of the three behavioral indices Understand, Develop, or Deploy. Tier I Talent Mobilizers: An additional quarter of respondents (24%) scored highly on ONE behavior index. Tier II Talent Mobilizers: 24% of respondents scored highly on TWO behavioral indices. Committed Talent Mobilizers: 26% of respondents scored highly on all three behavioral indices related to Talent Mobilization Understand, Develop, and Deploy. After breaking down our respondents into their respective mobilization groups, we wanted to see what, if any, impact these behaviors had on organizational performance. We hypothesized that Committed Talent Mobilizers (those respondent organizations that exhibit the behaviors of Understanding, Developing AND Deploying talent) would experience higher revenue growth, as well as tend to be more proactive in their approach to Talent Mobility, than would other organizations. Indeed, after a detailed analysis, our hypothesis was confirmed, demonstrating the positive impact a robust Talent Mobility practice can have on business performance. There is a statistically significant relationship between Committed Talent Mobilizers and revenue growth (see Fig. 4). More than three quarters (81%) of Committed Talent Mobilizers report on or above target revenue growth rates, compared with only 68% of other organizations. Notably, these data show that it s not sufficient for organizations to be effective at one behavioral component of Talent Mobility (Understand/Develop/Deploy), or even two. Rather, Committed Talent Mobilizers are inclined to aggressively focus on effectively implementing and supporting Talent Mobility. They are 12% more likely than other organizations to report positive revenue growth, demonstrating a clear return on investment for businesses that prioritize this practice. Organizations need to evaluate how they measure up on each of 9 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
12 HCI Research the three behavior indices of Understand, Develop, and Deploy, and use that information as a roadmap for areas of improvement and future goals. As one article noted, Successful talent mobility programs yield substantial enterprisewide benefits, including lower talent acquisition costs, stronger leadership teams, and better financial performance. 7 This research corroborates that statement, and more importantly, it identifies the three essential behavioral components that can help organizations forecast the next steps they need to take to adopt a strategic Talent Mobility focus. Figure 4: Respondent Organizations with Revenue Growth On/Above Target *Statistically significant difference at <.05 level. Non-Mobilizers All Others Gap 71% 73% -2% Tier I Talent Mobilizers All Others 68% 75% -7% Tier II Talent Mobilizers All Others 69% 74% -5% Committed Talent Mobilizers All Others 81%* 69% 12% Fig. 4 shows the revenue growth rate Committed Talent Mobilizers experienced in the last fiscal year is 12% higher than other organizations. Proactive vs. Reactive Talent Mobilizers Committed Talent Mobilizers organizations that Understand, Develop, and Deploy talent are 12% more likely to experience positive revenue growth than other organizations. Part of the struggle facing Talent Mobility and its limited formal practice in many organizations today is how the discipline is treated as an afterthought in comparison to other talent management processes. The way an organization and its leaders address Talent Mobility can result in very different outcomes, and our survey looked specifically at a proactive versus a reactive approach to Talent Mobility. Respondents were asked to characterize their organization in terms of one of two approaches to Talent Mobility: Proactive: High potentials are identified, development plans are created, career discussions are conducted regularly, succession plans for key positions are created and supported. Reactive: Future talent needs have not been identified, there is a weak talent pipeline, roles are only filled when they are vacated. Among the behavioral indices, our data found that Non-Mobilizers are much less likely than other organizations are to describe their approach to Talent Mobility as Proactive (2% vs. 61 %), and Tier II Talent Mobilizers are more likely than 10 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
13 Set Talent in Motion: Achieving Organizational Success with Talent Mobility other organizations are to be Proactive (54% vs. 42%). An even larger difference emerged between Committed Talent Mobilizers, as 87% of these respondents proactively address Talent Mobility versus only 30% of others (see Fig. 5.) Figure 5: A Proactive Approach to Talent Mobility * Statistically significant difference at <.05 level. Non-Mobilizers All Others GAP 2% 61%* -59% Tier I Talent Mobilizers All Others 38% 47% -9% Tier II Talent Mobilizers All Others As organizations welcome in more Gen Y employees and Baby Boomers exit, the leadership teams are younger. And in that environment, the opportunity for vertical movement is very slim. Employees must be willing to sidestep, move around, and grow their skills in new and different ways. Vertical movement still happens, but not nearly as frequently. Margo Armstrong, Assistant Vice President of Talent Practices, MassMutual 54%* 42% 12% Committed Talent Mobilizers All Others 87%* 30% 57% Fig. 5 demonstrates that Committed Talent Mobilizers and Tier II Talent Mobilizers are 12 57% more likely than other organizations to take a proactive approach to Talent Mobility. When we looked at the breakdown among all of our survey respondents, slightly more than half of organizational leaders (56%) reported operating reactively regarding talent moves within the business, while the remaining 44% characterize their organization as proactive in their approach to Talent Mobility (see Fig. 6). Thus, for the majority of organizations, there is an acute need for improvement in terms of recognizing the need for and benefits of a robust Talent Mobility program. Margo Armstrong from MassMutual commented on the risk of a rushed and careless approach to talent in business today. Having an emergency successor is not sufficient. A reactive approach to talent mobility works in the short-term but it is not strategic; it s a stop gap measure, she said. An organization may be able to keep its doors open, but operating reactively is not going to benefit the business. Accordingly, organizations and leaders need to focus on designing and implementing related plans and processes to support a proactive approach to Talent Mobility. Figure 6: Contrasting Approaches to Talent Mobility 44% Reactive 56% 56% 44% Proactive Fig. 6 illustrates that among all survey respondent organizations, more than half (56%) take a reactive approach to Talent Mobility. 11 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
14 HCI Research A cross tabulation of our data with demographic variables yielded another interesting finding, which is larger organizations and those in certain industries tend to be more proactive in their approaches to Talent Mobility (see Fig. 7 and Fig. 8). Organizations with more than 10,000 employees and those in financial markets and banking, as well as those in manufacturing, construction and chemical industries, are most likely to proactively address Talent Mobility. This tendency may be a direct result of larger organizations having increased budgets and fewer constraints on talent management programs and practices overall. In the same vein, businesses with more employees may be better positioned to create and offer a wider variety of roles in the organization that a Talent Mobility practice can best leverage. Figure 7: Proactive Approach by Company Size Small <1,000 employees Medium 1,001 10,000 employees Large 10,001+ employees 35% 35% 60% Figure 8: Proactive Approach by Industry Fig. 7 shows a positive correlation between company size and a proactive approach to Talent Mobility. The larger an organization is, the more likely it is to proactively address Talent Mobility. Education/ Government Healthcare/ Life Sciences Professional Services/Tech/ Telecomm Manufacturing/ Construction/ Chemicals Financial/ Banking 21% 39% 39% 54% 57% Fig. 8 identifies the industries of respondent organizations that take a proactive approach to Talent Mobility. Financial/Banking organizations are most likely to report a proactive approach to Talent Mobility than other industries. Talent Mobility Behaviors & Practices Only 41% of respondents are well informed about opportunities for lateral mobility within their firms, and even fewer report having transparency around advancement opportunities in their organization. While many organizations and leaders recognize the utility of effectively prioritizing and practicing Talent Mobility, not everyone is able to support that acknowledgement with action. To that end, we explored various organizational behaviors and practices at our respondent companies to determine which ones are most frequently exhibited, and which may be lacking within businesses today. An effective Talent Mobility discipline relies heavily on the clear and consistent distribution of information. With regard to communication and transparency, at least 50% of our respondent organizations agreed that they actively work to make internal job openings available to all employees, communicate about the open positions outside of one s team, and fill management positions from within the organization (see Fig. 9). These findings are promising as they indicate that organizations are beginning to understand some of the ways 12 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
15 Set Talent in Motion: Achieving Organizational Success with Talent Mobility 76% of respondent organizations are not giving employees the information or resources they need to improve their skills. Talent Mobility can be fostered in organizations. However, fewer than half (41%) of respondents agreed they are well informed about opportunities for lateral mobility within their firms, and even less agreed that there is transparency around advancement opportunities in their organization. It s clear that some organizations and leaders are behaving in a way that supports Talent Mobility, but there remains vast room for improvement. Figure 9: Talent Mobility Behaviors Advancement opportunities within the organization are available to non-management level employees 67% (% agree/strongly agree) Management positions are typically filled from within Employees are well informed about open positions outside their team 56% 59% Employees are well informed about open positions outside their business unit/department Employees are well informed about opportunities for upward mobility Employees are well informed about opportunities for lateral mobility 41% 45% 50% Outplacement is absolutely an important component of talent mobility. When business needs require restructuring that results in reductions, companies that offer outplacement are focused on the entire lifecycle, providing impacted employees with the support and development they need to mobilize and move into their next role outside the organization. Kristen Leverone, Senior Vice President, Global Practice Leader of Talent Developmentt, Lee Hecht Harrison There is transparency within my organization around advancement opportunities Dedication and seniority are rewarded with advancement apportunities Management positions are typically filled externally 20% 37% 36% 0% 10% 20% 30% 40% 50% 60% 70% Fig. 9 illustrates how much respondents agree that communication, transparency, and succession planning behaviors are practiced in their organizations. When we examined survey respondents characterization of their organizations Talent Mobility priorities, striking findings emerged (see Fig. 10). The levels of agreement with these measures are low across all respondents, garnering at most 34%. Indeed, this tells us that critical components of Talent Mobility are not being adequately addressed by organizations and their leaders. Notably, 76% of respondent organizations are not giving employees the information or resources needed to improve their skills, and 67% of organizations do not prioritize or adequately fund Talent Mobility practices. 13 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
16 HCI Research Figure 10: Prioritization of Talent Mobility (% agree/strongly agree) Leaders in my organization invest financial resources into the practice of Talent Mobility Leaders in my organization spend time ensuring Talent Mobility is an organizational priority 34% 33% Redeployment is considered a key component of Talent Mobility efforts 31% Leaders in my organizations arm employees with tools/information they need to capitalize on internal Talent Mobility opportunities There are incentives in place for management to support, promote, and encourage Talent Mobility within the organization Outplacement is a key component of talent Mobility efforts 18% 15% 24% 0% 10% 20% 30% 40% 50% Fig. 10 demonstrates how much respondents agree that Talent Mobility is perceived, prioritized and supported by leaders within their organizations. Talent management tools are great, but they are secondary to having leadership buy-in that can help implement development plans and support employees. Managers need to support opportunities like peer networks and helping their employees build relationships across other areas of an organization. Technology can enhance those experiences and establish a process around them, but it begins with leaders who are invested in the success of their employees and the business. Margo Armstrong, Assistant Vice President of Talent Practices, MassMutual It s important to note that 85% of our respondent organizations do not recognize outplacement or redeployment as a component of Talent Mobility. But to be most effectively leveraged, Talent Mobility must be understood as a holistic process of any and all talent development and transitions, including external shifts. Our data also found that 82% of organizations do not provide incentives to support, promote, or encourage Talent Mobility practices among management. Like any new initiative, it is critical that executive support and promotion is in place to foster the growth and practice of Talent Mobility in order to drive sustainable success. The ways in which leaders monitor in-house talent are worth noting, as the first phase of a strategic Talent Mobility program is understanding the current talent environment and skill-sets within one s own organization. Nearly 9 out of 10 respondents report widespread use of traditional assessment tools such as performance reviews (see Fig. 11). However, when asked about talent planning for the future, much less activity is reported. Half of respondents report that their organizations employ succession planning, and only 29% agree that employees are offered formal career planning in the form of technology platforms, tracking, or formal discussions with their supervisors and other senior management. In addition, with fewer than a quarter (24%) organizations using talent management software, it is likely that leaders are missing critical information that could help them better understand talent needs and strengths across the organization. Perhaps one of the greatest opportunities for improvement identified by these data is that only 37% of respondents indicate that their organizations hold leaders accountable for developing talent, which is arguably an essential component of the secondary phase of Talent Mobility. Developing top talent is a strategic business 14 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
17 Set Talent in Motion: Achieving Organizational Success with Talent Mobility imperative, one OD Practitioner article notes. As part of the strategic planning process, companies divide customers into different segments so they properly address individual needs and they invest in developing each segment differently according to the potential for greater revenue margins, etc. Companies should do the same for their jobs and talent. The idea is to have your best talent in your most important jobs. 8 A robust and strategic Talent Mobility program is one of the best ways organizations and leaders can achieve this goal of aligning skills to business needs. Figure 11: Talent Assessment and Planning Regularly scheduled employee performance reviews 89% Managerial assessment of existing talent 66% Creation of succession plans Regularly scheduled company-wide talent reviews 42% 50% Experience in organizations is really about breadth and depth of knowledge. When you get to a certain leadership position in the same department as where you began, you have essentially reached your peak. In this era of globalization and rapid movement, leaders are better prepared to take on a higher-level role when they have experienced a more diverse trajectory, and they understand many different functions and processes within the business. Margo Armstrong, Assistant Vice President of Talent Practices, MassMutual 8 Morgan, H., & Jardin, D. (2010, Vol. 42, No. 4). HR+OD=Integrated Talent Management. OD Practitioner, pp Managers are responsible and held accountable for developing employees Career planning Absence tracking and management data Talent management software 29% 25% 24% 37% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Fig. 11 shows what methods are used by survey respondent organizations to measure talent, most notably performance reviews and managerial assessments of existing talent. It is not particularly surprising that many of our respondents report frequent use of established tools in employee development such as performance reviews, formal onboarding and job training (see Fig. 12). However, newer strategies and development methods such as working in cross-functional teams, task/job rotation, and stretch assignments are more closely aligned with the demands of today s workforce and the nature of work and these more collaborative-based, innovative development techniques also actively prepare employees for mobility across departments and functions. While some organizations intuitively understand the need to grow well-rounded future leaders that have hands-on experience and line of sight across the business, many are missing the opportunity to expose employees to a variety 15 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
18 HCI Research of assignments and experiences that would help them see the big picture. This wide-angle perspective continues to grow in importance among leaders as the nature of business continues to become more complex and intertwined. A leader who is able to tap into a wealth of varied roles and experiences across a business is better positioned to understand what needs to be done to sustain the business. In support of this notion, one recent study found that one of the greatest drivers of organizational success is the ability to quickly and transparently move employees between roles and functions when needed. 9 Figure 12: Methods of Employee Development Frequently/Nearly Always or Always Sometimes Never/Rarely Regularly scheduled performance reviews 84% 11% 5% Formal onboarding 68% 19% 13% Formal job training 48% 37% 15% Internal networking 44% 39% 17% Opportunities to work in cross-functional teams 44% 37% 19% Opportunities for stretch assignments 38% 48% 14% Coaching 37% 40% 23% Conferences/seminars 29% 44% 26% Mentoring 27% 43% 30% Task/job rotation 16% 43% 41% 0% 25% 50% 75% 100% Fig. 12 identifies how frequently specific employee development methods are used with respondent organizations. 9 Talent Mobility: The New Era of Talent Management. Retrieved May 24, 2013, from 10 N.A. (2013). Trends and Best Practices in Sourcing and Hiring Talent. Lee Hecht Harrison White Paper. 11 Oracle. (2012, June). Talent Mobility: An Oracle White Paper. When asked whether their organization tracks internal talent moves, more than half (60%) of respondents agreed. Of those organizations, approximately 4 out of 10 are able to fill at least half of roles internally; this demonstrates that monitoring the movement of talent in an organization is one key step of the Talent Mobility process (see Fig. 13 and Fig. 14). In addition to the cost savings and morale boost achieved through internal sourcing, 10 there is evidence of a positive relationship between filling jobs from within and enhanced company performance, as well as developing strong leaders Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
19 Set Talent in Motion: Achieving Organizational Success with Talent Mobility Figure 13: Tracking Internal Talent Moves: 57% 43% Yes No Yes No 43% Fig. 13 demonstrates that, among all respondents, 57% track or measure internal talent movements in their organization. 41% say more than half Figure 14: Percentage of Roles Filled Internally 22% 22% 10% 8% 41% say more than half 33% 10% 8% 28% 33% More than 75% 51 75% 36 50% 16 35% 1 15% 27% 59% say half or fewer One of the greatest challenges facing Talent Mobility is line of sight and communication. Employees need to be more aware of available opportunities that exist within the organization. Fragments of information don t provide the whole picture. It s important to implement the right technology and processes to support the transparency and transmission of that information what are the skill-sets, the development plans, the job openings, and how can we integrate that knowledge into a Talent Mobility program? Margo Armstrong, Assistant Vice President of Talent Practices, MassMutual 59% say half or fewer Fig. 14 illustrates that of the respondent organizations that track talent moves, 41% fill more than half of their organizational roles with internal talent. Identifying and Addressing Talent Mobility Challenges 41% say more than half While these data help present a clear case for the development of a Talent Mobility program in any organization, significant challenges remain. Most More than 75% notably, there is a lack of strategic prioritization and effective approaches 51 75% to the practice, stemming from a lack of consensus about what Talent Mobility 36 50% is and how it can be supported by organizational leaders and employees 16 35% (see Fig. 15). It would appear that many larger organizations have the proper 1 15% infrastructure in place to implement a Talent Mobility program, but leaders and employees must take the leap and embrace the opportunities that a more formal, mobilized 59% talent say half base or fewer can offer. The information and data outlined in this report can help address some of the top challenges that organizations need to focus on before they are able to effectively implement and leverage a Talent Mobility program. Our data show that 21 26% of organizational leaders cannot clearly recognize or articulate what Talent Mobility is, nor do their organizations actively prioritize it (see Fig. 15). 17 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
20 HCI Research Figure 15: Talent Mobility Challenges No strategic approach in place to identify future talent needs 26% Lack of prioritization of Talent Mobility by organizations 25% Lack of organizational understanding of what Talent Mobility is 21% Talent territorialism among key stakeholders 10% Lack of clearly defined roles and responsibilities Little/no focus on developing talent to meet future needs Lack of infrastructure to connect employees with potential opportunities 6% 5% 4% 3% Organizations do not provide key stakeholders with necessary tools 0% 5% 10% 15% 20% 25% 30% Fig. 15 shows the greatest struggles facing Talent Mobility today, as reported by respondent organizations. A secondary challenge facing organizations is recognizing which organizational departments and functions should work more collaboratively to maintain or establish an effective Talent Mobility practice. In more than half of organizations (58%), HR Business Partners are primarily responsible for Talent Mobility (see Fig. 16). However, to ensure Talent Mobility is treated as a holistic process that is part of the breadth of talent management offerings, cross-functional teams focused on Recruiting & Hiring, Training & Development, and general HR policies and processes should play a more substantial role in driving effective Talent Mobility. While some collaboration is common, maintaining frequent Figure 16: Responsibility for Talent Mobility Frequently/Nearly Always or Always Sometimes Never/Rarely Recruiting and Hiring 35% 30% 35% Training and Development 30% 32% 38% HR Business Partners 58% 24% 18% 0% 25% 50% 75% 100% Fig. 16 identifies the frequency with which the departments of Recruiting and Hiring, Training and Development, and HR Business Partners work collaboratively to manage Talent Mobility. 18 Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
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