Talent Management: How to Make Your Metrics Matter
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1 Talent Management: How to Make Your Metrics Matter April 26-27, 2012 Cathy Missildine, SPHR Chief Performance Officer Intellectual Capital Consulting
2 Agenda The 3 key areas to measure when it comes to talent Metric examples in each key area that can be used immediately on the job Reporting tips to ensure management and leadership take action on the data collected #metrics 2 4/21/2012
3 The Path to Desired Business Results Facilitators Enablers Business Results Processes Revenue Products Profitability Technology Market Share Financial Budget Cost Savings Others 3 4/21/2012 Vision and Mission Others
4 Business Strategy Map: Example (Private) Strategic Goals Business Results Performance Objectives Performance Metrics Performance Outcomes Actions Increase Market Share Increase sales from new customers by 20% Increase new sales from call center by 10% Increase new sales from sales force by 15% Reduce call center turnover by 20% Improve new customer satis. ratings from call center interactions by 30% Increase call center engagement from 73.4% to 80% Increase hit ratio from 10% to 20% Improve call center sales skills Improve call center product knowledge Improve call center productivity Increase number of appointments Create new call center sales training course Implement rewards & recognition program in call ctr Hire four phone appointment setters Reduce prices of top 3 products by 4% Increase new sales from web store by 15% Increase percentage of closings Upgrade CRM system 4 4/21/2012
5 Metrics Hierarchy Organizational Level Profit Margin ROI Functional Level Average Performance Scores Quality of Hire Department Level Source/Hire Days to fill 5 4/21/2012
6 Performance is done by PEOPLE 6 4/21/2012
7 3 Critical High Performing Metrics Focus Areas Goal Alignment Employee Performance Quality of Hire These 3 areas are critical to strategic execution and impact to bottom line 7 4/21/2012
8 An Average Organization Snapshot: 7% decrease in productivity Talent loss Under-managed recruiting pipelines 25% of HIPO s at risk of leaving Combination of overstretched and under rewarded Compares to only 10% of non- HIPO s 46% delta in employee commitment Between those who have clearly defined job goals/objectives and those who don t And the above must be addressed with: No budget Increased demand from Board and C-Suite Greater reliance on key talent in order to reach goals Darren Shearer via Source: Confronting Six Enemies of Post Recession Performance Corporate Executive Board Webinar 8 4/21/2012
9 Goal Alignment Single most cited reason for failure of strategy: Execution Goals must be cascaded up and down so that all employees understand expectations 9 4/21/2012
10 Goal Alignment: Are we all pulling in the same direction? Culture and goal setting Strong culture creates a common mindset Goal setting ensures that the specifics are laid out Clear set of competencies ensures that you have the skill set to reach your goals Slide provided by Halogen Software, Sean Conrad 10 4/21/2012
11 Goal Alignment-Metric Examples % of employees tracking goals % of goals obtained % of sales quota exceeded % of bonuses paid on goal attainment % of goals exceeded 11 4/21/2012
12 Goal Alignment See how employee performance is tied to corporate success! 12 4/21/2012 Slide provided by Halogen Software, Sean Conrad
13 Goal Alignment Metrics Give Your Managers the Ability to Intervene When Things Go Off Track 13 4/21/2012 Slide provided by Halogen Software, Sean Conrad
14 Or to Right the ship before it goes off course 14 4/21/2012 Slide provided by Halogen Software, Sean Conrad
15 Employee Performance Being a high performing organization doesn't mean that all employees are high performing Make sure managers are trained-bias Give high performers the recognition they deserve Make sure system is utilized and the data is relied upon 15 4/21/2012
16 Employee Performance Metrics Examples High performer average engagement score vs. all others High performer growth rate Employee performance rate increase High to low performer ratio Performance appraisal participation rate Critical competency scores Sustained high performer rate 16 4/21/2012
17 Employee Performance: Nurturing Organizational Competencies See Year Over Year Progress Are we closing gaps? 17 4/21/2012 Slide provided by Halogen Software, Sean Conrad
18 Employee Performance Metrics Determine departmental, team or individual strengths and weaknesses: Identify Low & High Performers 18 4/21/2012
19 Quality of Hire A relatively new measure used to assess quality of recruits Presently we use measures that relate to efficiency (speed and cost) of the process not quality By profiling current HIPO s organizations can become more predictive in hiring thus saving on the front end and adding to bottom line 19 4/21/2012
20 Quality of Hire Metrics Example Voluntary turnover rate, HIPO s, non-hipo s Retention rate, HIPO s, non-hipo s New Hire failure rate ROI of Human Capital Investment Time to fill Cost per hire Promotion rate Employee engagement rate, HIPO s, non-hipo s Average new hire performance rating Time to productivity new hire 20 4/21/2012
21 Combine Data Points for further insight High Performance Butterflies Add Turnover % & $$$$$ True Loyalists Add Turnover % & $$$$ Low Performance Change Seekers Add Turnover & $$$$$ Morale Busters Add Turnover % & $$$$ 21 4/21/2012 Engagement
22 Talent Inventory: Quality of Hire Identifying HiPos 1 = high potential 22 4/21/2012
23 Infrastructure Necessary for Delivering on the Metrics that Matter Three Components Necessary for Success: 1An executive and organizational mindset that supports talent s role in business strategy execution. 2Talent processes and tools are designed and mapped to enable the business to effectively manage talent effectively. 3Talent systems or software that support the talent processes and tools. 23 4/21/2012
24 Metrics Need Data The best Talent Management systems in the world won t help you make informed decisions if the tools aren t used! 24 4/21/2012 Slide provided by Halogen Software, Sean Conrad
25 Making Metrics Matter The best laid plans will fail if not executed properly. You ve aggregated your data /automated your processes now what? Executives need to know their organizational strengths and weaknesses. Manager and employees are accountable for performance. They need to answer the question Do we have the right people with the right skills doing the right things for meeting today s and tomorrow s business strategy? Slide provided by Halogen Software, Sean Conrad 25 4/21/2012
26 Data insight ACTION! KISS-reporting, Killer slide Tie manager performance to metrics Brainstorm ways to improve and sustain results Make action plans part of performance process Progress is tracked and communicated loudly in the organization Management meetings have dedicated time to metrics and progress HR acts as coach, consultant and change agent 26 4/21/2012
27 Contact Us intellectualcapitalconsulting.blogspot (770) Cathy Missildine 27 4/21/
28 ICC Partial Client List 29 4/21/2012
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