The HR Director s Talent Challenge: Research report on Motivation and Engagement of staff in Higher Education institutions

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1 The HR Director s Talent Challenge: Research report on Motivation and Engagement of staff in Higher Education institutions

2 Fierce competition for funding and the need to differentiate from other institutions within the education sector has led to increased rivalry and the growing influence of league tables, which can make or break a university s reputation. The talent and performance management methodologies adopted as best practice differentiators in the commercial sector have moved from the status of buzz-words in the education sector to become priority issues. This is due to a recognition of the positive impact of effective talent strategies in driving organisational performance. MidlandHR wanted to understand the extent to which HR Directors within Higher Education institutions across the UK are considering the importance of motivating and engaging staff, the ways in which this is achieved and the extent to which HR Directors are adopting HR technologies to support the effective management of talent. Executive summary MidlandHR commissioned an independent research company to explore the ways in which HR Directors within Higher Education institutions are engaging with the challenge of talent management, looking at their perception of the importance and effects of employee motivation and engagement, as well as their use of talent management software to support HR strategies. Results were collected in April 2013 through a telephone questionnaire conducted by an independent research company seeking the opinions of 34 HR Directors from Higher Education institutions in the UK. For purposes of this study, Motivation has been defined as the combination of energy, creativity and commitment that people apply to their jobs at work. Engagement has been defined as commitment to the values and objectives of the institution as a whole, working towards common goals and understanding the impact of individual actions on performance. It is understood that both motivation and engagement deliver improved performance throughout organisations. Key findings: The majority of HR Directors in Higher Education think that motivation and engagement has increased in importance over the past 5 years Just under half of respondents [47%] have a talent management strategy that is driven by the HR team, with a further 35% planning to implement one Engagement of people within Higher Education institutions is high - 97% of respondents believe that employees working within their organisation are either fairly or very engaged The top tactics for ensuring employees are engaged: - Clarity of role - Setting performance expectations - Regular appraisals - Recognition and reward The majority of respondents [56%] are planning to increase the strategic use of HR and talent management software in their institution within the next 5 years Recommendations HR Directors from Higher Education institutions should use this research report to benchmark the attention paid to their talent management strategy. Specifically, they should ask: Are we competitive with other institutions when it comes to motivating, engaging and retaining talent? Do we enable our people to drive success in our institution? How could we improve the management of our people to drive real benefits? Could we improve the management of our people through the use of HR software for talent management? 1 2

3 Key findings The importance of an effective talent management strategy Incorporating recruitment, people development, learning management, performance management, reward and succession planning, talent management fundamentally differs from the traditional HR learning and development techniques of the past in its strategic approach to attraction, acquisition, performance, development and retention of the workforce. It recognises the inseparability of these areas and it is vitally linked to, driven by and measured in the success of the organisation s vision and goals. For HR in Higher Education institutions innovation, differentiation and high performance have become universal requirements, driving the urgency to become more competitive in the market. Just under half of the respondents to this survey have already recognised this and have a talent management strategy that is driven by their HR team, with a further 35% having recognised the requirement to implement such a strategy. 15% 15% 3% 3% 82% 82% Have motivation and engagement got more or less important in the past 5 years? More important Less More important It Less has important stayed the same It has stayed the same Top 3 employee engagement tactics The HR Directors interviewed had varied views on the most effective tactics for employee engagement, with four tactics eventually emerging as the most popular: clarity of role, setting performance expectations, regular appraisals, and recognition and reward schemes. All four tactics are based on the setting of expectations and measurement against those expectations, which can be effectively supported by HR and talent management software. Do you have a defined talent management strategy that is driven by your HR team? Yes No, but we are planning to implement one No, and we are not planning to implement one 35% 18% Clarity of role Setting performance expectations Regular appraisals/personal development reviews KPIs set that directly relate to measures of organisational success Team building events Company meetings Recognition and reward Flexibility of working hours Compassionate team Clarity of corporate strategy Effective communication Clear leadership Consultation % What do you think are the top 3 tactics for ensuring employees are engaged? 3 4

4 The use of HR software to support talent management Talent management strategies are necessarily holistic. The challenge for educational institutions lies in achieving better alignment between organisational goals and the contribution of individual faculties and departments with a long tradition of autonomy (The Challenge of Establishing World-Class Universities, Salmi). This is where technology comes in, helping organisations align and deliver their talent management programme more efficiently and cost effectively, providing increased and improved information to individuals and departments with greater speed (Towers Watson, 2012). 26% 74% Do you use talent management software to support employee engagement? Yes No MidlandHR s solutions for Higher Education MidlandHR is the only supplier of HR, payroll and talent management solutions with a specialist Higher Education team who have many years experience of working in Higher Education, understand current and emerging challenges and will work in partnership with your team throughout your implementation and beyond. Request an overview of MidlandHR s solutions for Higher Education at: Currently, only 26% of respondents use talent management software to support employee engagement. However, unsurprisingly, the majority [56%] are planning to increase the strategic use of HR and talent management software in their institution over the next five years. 44% 0% Are you planning to increase the strategic use of HR and talent management software in your institution within the next 5 years? Yes, we are planning to increase No, we are planning to keep the same No, we are planning to decrease 56% Conclusion The importance of motivating and engaging employees within Higher Education institutions is increasingly recognised at the highest levels within HR. In five years time, Higher Education institutions without an effective talent management strategy may well find themselves on the wrong side of a growing performance gap. With greater pressures on HR Directors to deliver impact at organisational level, it is unsurprising that many HR teams are either planning to or already support the management of talent with technology that provides a clear view of the strength of operational alignment, a universal platform and toolset for feedback, evaluation and progress, and a vital mechanism for analysis and decision making support. 19% 5 6

5 Ruddington Hall, Ruddington, Nottinghamshire NG11 6LL t +44 (0) f +44 (0) e info@midlandhr.com w Midland Software Limited Registered office: Peterbridge House, 3 The Lakes, Northampton NN4 7HB. No part of this literature may be reproduced without the written permission of MidlandHR. All content correct at time of going to press.