REPRIORITIZING WHAT MATTERS MOST: A Focus on Career Management to Drive Business Results

Transcription

1 REPRIORITIZING WHAT MATTERS MOST: A Focus on Career Management to Drive Business Results Keith Caver Towers Watson Melissa Jones CSAA IG Renée Smith Towers Watson April 1, 2014

2 Recent Headlines Highlight Challenges and Opportunities GWS Friction Points. By 2021, a new map of talent surplus and deficits will emerge Talent 2021 Security Minded. Whether it is attraction or retention, financial security is top of mind Transformative HR TM&R Generation Gap? Not when it comes to pay it is the #1 attraction driver for all ages in the U.S. Structurally Unsound. Businesses are attempting to reach 21 st century heights on 20 th century talent and reward platforms Engagement at Risk. Only 35% are highly engaged, stress is increasing and energy is flagging towerswatson.com 2014 Towers Watson. All rights reserved. 1

3 Finding and Keeping Employees Isn t Enough Pay continues to be major headline, but career advancement is the new retention risk Top 7 Drivers Attraction Drivers Retention Drivers 1 Base pay/salary Base pay/salary 2 Job security Career advancement opportunities 3 Career advancement opportunities Trust/confidence in senior leadership 4 Organization s reputation as good employer Job security 5 Convenient work location Manage/limit work-related stress 6 Learning and development opportunities Convenient work location 7 Health care/wellness benefits Relationship with supervisor/manager And Sustainable Engagement is at risk Source: Towers Watson 2012 Global Workforce Study - United States. towerswatson.com 2014 Towers Watson. All rights reserved. 2

4 What Do We Mean by Sustainable Engagement? Am I engaged, enabled and energized to deliver my best performance? Sustainable Engagement Engagement Satisfaction Am I happy here? Commitment Do I intend to stay here? Do I have line of sight into the business and commitment to the organization? towerswatson.com 2014 Towers Watson. All rights reserved. 3

5 Sustainable Engagement Has An Impact on Metrics That Matter Attached to the company and willing to give discretionary effort A local work environment that supports productivity and performance organizations that get it right see results 41% 6.5 Lower retention risk Only 17% of associates with high engagement are high retention risks compared to 58% of disengaged associates Fewer days lost Better presenteeism: An average of 7.6 days lost per year for associates with high engagement vs days lost per year for the disengaged Individuals physical, interpersonal and emotional well-being at work 3x Operating margin High sustainable engagement organizations operating margins are 3x higher compared to those with the lowest levels of engagement towerswatson.com 2014 Towers Watson. All rights reserved. 4

6 Audience Poll: What Percentage of Your Workforce Do You Think is Highly Engaged*? Option Description 1 < 1/3 of employee population 2 ~ 1/3 of employee population 3 ~ 1/2 of employee population *Individuals with above-average favorable opinions in all three aspects of Sustainable Engagement towerswatson.com 2014 Towers Watson. All rights reserved. 5

7 Among Our Study Population, Only Slightly More Than One-Third are Highly Engaged 37% 27% 13% 23% Source: Towers Watson 2012 Global Workforce Study - United States. towerswatson.com 2014 Towers Watson. All rights reserved. 6

8 In Addition to Being a Retention Risk, Engagement Drivers Confirm the Importance of Career Development Leadership Stress, Balance and Workload Goals and Objectives Supervision Image Effective at growing the business Sincere interest in employees wellbeing Behaves consistently with organization s core values Trust and confidence in job being done Stress levels at work are manageable Healthy balance between work and personal life Work arrangements are flexible Enough employees in work group to get job done right Good understanding of organization s business goals and steps needed to reach those goals Understanding of how job contributes to the organization achieving its business goals Treats me with respect Encourages new ideas and ways of doing things Acts in ways consistent with his/her words Effective career development conversations Effective career management tools Organization highly regarded by general public Organization conducts its business with honesty and integrity towerswatson.com 2014 Towers Watson. All rights reserved. 7

9 The CSAA Insurance Group Engagement Story

10 Who is CSAA Insurance Group (CSAA IG)? One of the top 20 personal lines property and casualty insurance groups in the United States 2.8 billion in premiums in ,500 employees Offer automobile, homeowners and other personal lines of insurance to AAA members through partnerships with AAA clubs Over the past 10 years, grown from a regional insurance provider offering insurance to AAA members in three states, to a coast-to-coast organization reaching nearly 17 million AAA members in 23 states and Washington D.C. In 2011, CSAA IG separated from the AAA of Northern California, Nevada and Utah club Under its brand license with the AAA Federation, CSAA IG has the rights to call itself a AAA insurer, to sell AAA Insurance and to use the AAA logo CSAA IG aspires to be the #1 insurer in AAA member households across the markets it serves and is on a path of significant expansion towerswatson.com 2014 Towers Watson. All rights reserved. 9

11 Our Goal is to Foster a Culture to Achieve Our Primary Objective Objective: To be the #1 insurer in AAA member households across the markets we serve Strategy Measures 2014 Target 2015 Target 2016 Target Employee Engagement Index HPN +1 HPN +1 HPN +1 High Performance Culture Create an efficient, highperformance, customer & partner-centric culture to drive profitable growth Leadership Bench Strength Critical Roles with Ready Now Successors 65% 75% 75% Retention of High Potential Talent 95% 95% 95% Reduce Turnover Y.O.Y. Reduction 2.5 Points 2.0 Points 2.0 Points AIP Payout Actual vs. Expected On Results On Results On Results Underwriting Expense Ratio 32.7% 32.5% 32.5% * HPN = High Performance Norm towerswatson.com 2014 Towers Watson. All rights reserved. 10

12 Employees Are Key to Achieving This Objective Our people are our competitive advantage, and core to becoming the #1 insurer in AAA member households across the markets we serve. We are clear on the capabilities and skills required to excel both today and in the future. Our strategy is anchored in our vision, mission, values, goals and strategic initiatives. We attract, hire, develop, engage and retain the best talent. And, the best talent ensures our future success. We ensure our people grow and have the expectation and freedom to challenge themselves professionally. We ensure our people have the tools and information required for success in a form that is easy to understand and use. We recognize and reward people for both their performance and skills. towerswatson.com 2014 Towers Watson. All rights reserved. 11

14 Engagement Score Our Engagement Story and Career Management Timeline 85% % FY % FY % % 70% Relocated headquarters from San Francisco to Walnut Creek, CA high engagement, high input move 65% Opened state of the art facilities (CA, OK) designed to foster teamwork and collaboration towerswatson.com 2014 Towers Watson. All rights reserved. 13

15 Engagement Score Our Engagement Story and Career Management Timeline 85% 80% 75% 70% 65% FY % FY % FY % 2011 Separated from the AAA of Northern California, Nevada and Utah club Developed integrated competency approach Deployed CSAA IG talent strategy Began assessment of leadership capability towerswatson.com 2014 Towers Watson. All rights reserved. 14

16 Engagement Score Our Engagement Story and Career Management Timeline 85% FY % 75% FY 2009 FY % FY % 80% 70% 70% % Introduced new competency framework Defined enterprise analytics strategy Configured & deployed new Workday Platform towerswatson.com 2014 Towers Watson. All rights reserved. 15

17 Engagement Score Our Engagement Story and Career Management Timeline 85% FY 2012 FY % 75% FY 2009 FY % FY % 80% 81% 70% 70% % Developed Career Management approach/strategy Completed talent data integration Deployed best practice succession management towerswatson.com 2014 Towers Watson. All rights reserved. 16

18 We ve Got Big Plans in Place for 2014 and Beyond Launch Career Management Pilots Refresh/simplify integrated competency framework Implement year-round competency assessment, career planning Develop/deploy Employee Value Proposition towerswatson.com 2014 Towers Watson. All rights reserved. 17

19 Career Management Research and Best Practices

21 Towers Watson s Focus Within Talent Management and Areas of Expertise Assessment and Development Succession Management Team Alignment Career Management Performance Management Competency Management Talent Management and Organizational Alignment Strategy HR Strategy Strategic Workforce Planning Workforce Analytics Labor Market Research towerswatson.com 2014 Towers Watson. All rights reserved. 20

22 What is Career Management? Career Management is a process to help employees understand career opportunities and chart a career path within their organization. Career management encompasses the strategy, tools, processes and technology that enable talent development, agility and mobility. towerswatson.com 2014 Towers Watson. All rights reserved. 21

24 Audience Poll: Do You Think Your Employees. 1. Understand How They Can Influence Their Careers? Option Description 1 Yes 2 No 2. Are Able to Achieve Career Advancement? Option Description 1 Yes 2 No towerswatson.com 2014 Towers Watson. All rights reserved. 23

26 Effective Career Management Programs are Designed With Four Key Tenets in Mind Strategic Provide a framework for communicating Ensure a talent pipeline to fill critical roles Build on Existing Foundation Build on the career framework to organize jobs and clarify career progression, including within and across families Enabling Illustrate career moves the company values Develop enabling career management tools Transparent Make information transparent and accessible Train managers to communicate career opportunities tailored to each employee towerswatson.com 2014 Towers Watson. All rights reserved. 25

27 The Career Management Strategy is the Starting Point for a Robust Program The what As a key component of the broader talent management strategy, a career management strategy is: An overall statement of what the company believes and wants to communicate about the value and importance of career management A set of principles that will guide the direction and execution of career management communications and tools The how To build a career management strategy: Who is eligible for a career? What is the best way to develop talent? Get senior leadership input on key philosophical tenets How do we hold people accountable for development? How do we define advancement? Are we willing to invest the resources needed to make development a practical reality? How does the organization bring career management to life? Craft the philosophy in alignment with the organization's talent strategy and EVP towerswatson.com 2014 Towers Watson. All rights reserved. 26

28 There are Three Foundational Elements Critical for Career Management Programs Career Framework Accelerators Scaled Competencies Illustrative alignment Organizes jobs within and across the organization onto a common platform by defining roles and career levels Illustrates the experiences that could potentially prepare one to move from one career level to the next Clarifies the knowledge, skills and abilities (expressed in behavioral terms) required for success towerswatson.com 2014 Towers Watson. All rights reserved. 27

29 Thinking Through the Various Types of Career Movements is an Essential Step 1 Developing a deep technical path by spending one s career 2 on the Professional Band Growing within a management career path P1 Entry P2 Intermed Professional P3 P4 Career Specialist P5 Master P6 Expert M1 Supv M2 Mgr Management M3 M4 Sr Mgr Grp Mgr M5 Sr Grp Mgr 3 Moving between from professional to management 4 Moving management back to professional Management Management Professional Professional 5 Gaining broad experience in multiple job families 6 Gaining broad experience across functions Product Managemen t Product Analyst I Product Analyst II Associate Product Manager Product Manager Product Line Manager Senior Product Manager I Partner Club Sales & Support Finance Marketing Insurance Analytics Insurance Analyst I Insurance Analyst II Insurance Analyst III Insurance Analyst IV Insurance Analyst V Insurance Analyst VI Insurance Products Claims IT towerswatson.com 2014 Towers Watson. All rights reserved. 28

30 Career Path Visuals Bring the Program to Life Database Information Security Systems Engineer Gain foundational and advanced experience in Database database analytics Analyst I and development Information Move into Security Systems Engineer Specialist to gain I broader organizational IT knowledge Systems Engineer I Database Analyst and Developer II Information Security Specialist II Systems Engineer II Senior Database Analyst and Developer Senior Information Security Specialist Senior Systems Engineer Make a move to gain Lead people management Database experience Project Manager Information Security Manager Systems Gain Engineering experience Project in IT security Manager Enterprise Database Architect Director, Systems Engineering Identified as a destination role due to the high degree of impact this role has on the organization. This is the top individual contributor in the IT function Senior with responsibility for Director, designing major components of the Data IT infrastructure. and This role requires a high Security level of understanding of databases, security, and IT systems. Individuals in this role must manage large Director, projects and project teams Information Technology Senior Director, IT Engineering Systems Support Software Engineer IT Systems Support I Start in a P1 job entry into Software job family Engineer I IT Systems Support II Senior IT Systems Move to more Support senior role with continued focus on gaining technical Senior Software knowledge Software Engineer II Engineer IT Systems Support Manager Software Engineering Project Manager Manager, Software Engineering Director, IT Systems Support Director, Software Engineering Professional P1 P2 P3 P4 P5 P6 Illustrative alignment Management M1 M2 M3 M4 M5 towerswatson.com 2014 Towers Watson. All rights reserved. 29

31 Planning For and Delivering a Career Management Program Effectively Requires the Right Tools Employee and manager tools are critical to bringing career management to life Manager Tools Employee Tools Company-specific Tools Manager Training Employee Training Potential company-specific tools and programs that Manager Tip Sheet Learning Catalog Alignment Development Guide Success Stories Illustrative Career Paths Employee Reference Guide & Employee Workbook Career Development Journey Placemat Job Family Matrix and Role Profiles should be linked/ referenced may include: Training Microsite Mentoring Program Education Assistance Programs Professional Memberships/ Registrations Policy towerswatson.com 2014 Towers Watson. All rights reserved. 30

32 What This Looks Like for CSAA IG

33 Our Competencies Were Developed Based on Our Vision and Mission and Reflect Our Core Values COMMUNICATION Speaking. Understanding the audience. Professional and effective written product. CRITICAL THINKING Uses data. Systematic approach. Considers the "Big Picture." We are caring We continuously and creatively pursue excellence We keep our commitments DECISION MAKING Evaluating and integrating information. Taking action. Weighing outcomes/ implications. INTERPERSONAL SENSITIVITY Addressing others concerns Demonstrating empathy Integration and Inclusive Treatment of Others CUSTOMER FOCUS Identifying and anticipating customer needs Customer care/service Following customer service trends INITIATIVE We have the courage to do the right thing We are diverse and inclusive KNOWING THE BUSINESS Understands operational and financial factors. Understands company products, services. Collects and evaluates metrics/data to determine actions. RESULTS ORIENTATION Assertive Communication Showing courage and taking action Taking responsibility and ownership Setting goals Applying and maintaining quality standards Tracking progress and results towerswatson.com 2014 Towers Watson. All rights reserved. 32

35 We Have Been Adding to the Foundation Elements We Have in Place Starting With a Common Set of Accelerators Already developed Already developed 2014 Career Framework Competencies Accelerators Definition What you do Organizes jobs onto a common platform by defining roles and career levels, meaning what someone does at each level, by describing overall work requirements and responsibilities How you do your work Competencies define the expectations of a job, clarifying the knowledge, skills and behaviors required for successful performance The experiences Accelerators articulate the experiences that would help to prepare someone to move from one career level to the next within a career track towerswatson.com 2014 Towers Watson. All rights reserved. 34

37 Annual Employee Engagement Scores Direct Premiums Written (in millions) As Our Engagement Scores Have Increased, So Have Our Business Results $2,837 $2,703 $2,683 $2,360 $2,413 80% 81% 75% 73% 70% towerswatson.com 2014 Towers Watson. All rights reserved. 36

38 Recognition of Progress by EEs Participation Score Annual Employee Engagement Scores Direct Premiums Written (in millions) And Other Key Indicators Have Shown Promising Results $2,837 $2,703 $2,683 $2,360 $2,413 80% 81% 75% 73% 91% 93% 70% 86% 89% 65% 65% 79% 51% 56% 35% towerswatson.com 2014 Towers Watson. All rights reserved. 37

39 We Look Forward to Seeing Continued Improvement in the Future 2014 Extend Career Management initiative Refine existing competency framework Fully integrate engagement platform/analytics 2015 Complete Career Management Initiative Deploy Integrated Workforce Planning Strategy Deploy Sustainable Engagement process 2016 & Beyond Continue evolution and maturation of Talent, Engagement and Career strategies All three strategies recognized as global business best practices towerswatson.com 2014 Towers Watson. All rights reserved. 38