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© Copyright IBM Corporation 2015 1
What is Your Critical Skills Gap? Get beyond feeling it, to closing it.
Gordon Ritchie
© Copyright IBM Corporation 2015 2
Objectives for This Session:
• Review the importance and relevance of the skills gap,
and why that matters.
• Approaches to defining and acting on the skills gap
• How IBM can help you accelerate your ability to define
and act on addressing your skills gap.
© Copyright IBM Corporation 2015 4
Talent Gaps Concern the C-Suite
Source: 2014 IBM CHRO study: New Expectations for a
New Era: CHRO insights from the Global C-Suite Study
% of CHROs
• 66% anticipate losing business to competitors
• 64% fear a loss of revenue
• 53% anticipate delays in innovation
• 59% face lower customer satisfaction
87%
80%
68%
65%
60%
Talent Development
Employee Engagement
Talent Retention
Workforce Productivity
Sourcing & Recruiting
CHROs find developing talent to be their largest workforce challenge
CEOs fear gaps in their current talent will directly impact customer success:
Source: Accenture 2013 Skills and Employment Trends Survey
© Copyright IBM Corporation 2015 5
Skill Assessments Drive Results
-12%
-10%
14%
17%
18%
7%
2%
8%
-20% -10% 0% 10% 20%
Not UsingAssessments
Employee performance
Quality of hire
Employee productivity
Overall turnover
Recruiting costs
Source: Aberdeen 2009 Study; Assessments in Talent Management
© Copyright IBM Corporation 2015 6
Engagement Matters
• More than 50% of Millennials, and Boomers do not understand their managers’ expectations of them as an employee. IBM Institute of Business Value, “Myths,
Exaggerations and Uncomfortable Truths “
• Companies experience a 21% and 22% increase in productivity and
profitability when employees score in the top quartile for engagement. - Gallup
• SHRM found through their HR Job Satisfactions surveys in 2012 and 2013 that
the #1 employee engagement issue, above pay and benefits. Is Being recognized for using their skills
© Copyright IBM Corporation 2015 8
Skills are the Foundational Layer of Talent Management
Comprehensive OD Experience & Established Methodology
Comprehensive Job Models & Framework
Job Data Competency Data
Talent Management Workforce application
Compensation Performance
Succession Planning
Assessment & Analytics
Learning & Development
© Copyright IBM Corporation 2015 9
Determine Where Skills Fit Sp
ecif
icit
y o
f th
e Fr
amew
ork
Defines culture
Reinforces strategy
Broadly applied training and communicate
…does not define job requirements or operational specifics
Defines job skills and expectation to goals
Enables assessment and insights
Supports development and improvement
Empowers TM Technology
…challenging to develop, manage and update
Types of Models
Low
High
© Copyright IBM Corporation 2015 10
Global Insurance Provider Company Background: A global insurance provider with over 60,000
employees in 170 countries.
Objectives: Drive shareholder value through maximizing contribution
of its employees. Shared expectations and unify best practices.
A global language around jobs and competencies
Global job requirements based on strategy
Employees assigned to global jobs
Global assessment of competency levels
Job and competency based training
A talent and learning culture
© Copyright IBM Corporation 2015 11
Scope
• Function Structure • Job Catalog of 7000 roles • Global Jobs defined as 300
roles
Benefits
• Knowing where people sit and what they do
• Headcount Reporting by Function
How They Got There
Scope
• Build Job Profiles with competencies
• Mapping Profiles to employees
Benefits
• Clarity on roles and requirements
• Detailed headcount reporting
Scope
• Build a system and process for the Competency Assessment covering 50’000 employees
Benefits
• Development planning • Identify training needs • Optimize L&D budget • Measure competency
gaps
Scope
• Business Academies • Data Warehouse • Quality improvements • Integration into HR
Benefits
• Learning linked to jobs and competencies
• Automated reporting • Career paths • Joined up HR
processes for managers
Create a structure
& job catalogue
Global Job Profile
Mapping
Competency Assessment
On going Improvement
© Copyright IBM Corporation 2015 12
Group
Functions
929No Segment
400
GI
3'036
GL
538
Group
Operations
830
Basic
20%
Intermediate
41%
Advanced
26%
Expert
13%
Job Proficiency Levels
Headcount by Segment/Function a.o.
Competency Gaps
Group
Functions
929No Segment
400
GI
3'036
GL
538
Group
Operations
830
Basic
20%
Intermediate
41%
Advanced
26%
Expert
13%
Job Proficiency Levels
Headcount by Segment/Function a.o.
Competency Gaps below equal above
Knowledge of Claims Claims Investigation Service Excellence Fraud Management
Executive Support Through Insight ©
Zu
rich
A global language around jobs and competencies
Global job requirements based on strategy
Employees assigned to global jobs
Global assessment of competency levels
Job and competency based training
A talent and learning culture
© Copyright IBM Corporation 2015 14
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%
Manualprocess
BudgetConstraints
Too difficult todefine
competencies
Too manyjobs
Lack ofexecutivesupport
• Core
• Leadership
• Functional
• Technical
• Behavioural
• Got them from KornFery/Lominger…
• Too Time consuming and hard to do for every role
• No impact, not relevant.
• Tried it, Tried it again,….
• Done them, someone else did some too
• Too HR
Questions and Confusion Excuses
• Traits
• CARS
• BARS
• Proficiency levels
• Assessment
WHAT PREVENTS IMPLEMENTATION OF A SKILLS CULTURE ACROSS AN ORGANIZATION?
As soon as I say “competencies,”…
© Copyright IBM Corporation 2015 16
The IBM Talent Frameworks Library:
Integrate your talent management applications Process How it helps What you need
Attracting candidates
Set expectations of who will be successful in the job beyond a job description
Demonstrable behaviours of what you expect
Hiring Decisions
Smarter hiring decisions based on capability to do the job
Interview questions tied to the competency behaviours required
Onboarding Improve chance of success and retention with accelerated time to productivity
Demonstrable expectations of what good looks like
Managing Support managers development discussions with tools to improve trust and impact.
Skill focused coaching tips, SMART goals, and extended expectations for growth
Engagement Provide clear view of portable/mobile skills to engage the engageable.
Reusable competencies across roles, levels and functions to provide skills based career matrix.
Performance Management
Provide job specific performance criteria for evaluation and contribution.
Job specific competencies and expected levels of demonstrable behaviour
Development Drive up learning as its easier to find content in your LMS
Learning catalogue mapped to competencies
Compensation Planning
Understand the jobs you are matching beyond just the salary survey job title.
Match jobs based on skills, tied to excellence as performance to pay.
© Copyright IBM Corporation 2015 17
Build vs Buy: Time to impact
Develop and use quickly and update over time. Focus on buy-in and change management processes. Make sure you get to the applications; don’t get stuck in model development
Get the “big things right”; “don’t dwell on the small stuff”.
Apply existing materials and best practices in developing a rapid draft
Focus on the overall architecture Key success criteria and themes.
Position models as prototypes for learning how to change behaviors (vs. a perfect output image).
Application, Integration & Iteration
Launch & Communication
Implementation Job Skills Library Customization
80% of the effort Recommended Approach 20% of the effort
Typical Competency Design and Development Application, Integration & Iteration
Launch & Communication
Implementation
20% of the effort (if able to move out of
development stage) Typical Approach 80% of the effort
© Copyright IBM Corporation 2015 18
Skills Are The Language Of An Integrated
Talent Management Approach
© Copyright IBM Corporation 2015 19
Guided analytics reveals insights and opportunities in the data:
• Predefined questions based on knowledge of your data give you a head start! • Additional relationships suggested as your data and questions are learned • Deep analytic skills not required – but the results are displayed.
Thinking Ahead…Segmenting Your Talent Data
© Copyright IBM Corporation 2015 20
Big Data: IBM Talent Insights – by Watson Answer operational talent questions faster
Analysis made easier and more accessible
Connecting People Processes to Business impact
Discover new patterns and insights from your Talent Suite data
© Copyright IBM Corporation 2015 21
IBM Talent Frameworks
Invest wisely in your employees
Connect employees to the information they need
Attract the very best talent and get them productive
Listen to the voice of your organization and engage the workforce
Make smarter decisions with big data & insights
Skills Add Clarity And Precision
“Conclusion: The most successful organizations rely on a talent infrastructure that encompasses the right competencies and job profiles as a basis for integration.” Integrated Talent Management: A roadmap for success. Bersin and Associates, 2012
© Copyright IBM Corporation 2015 22
What is your Critical Skills Gap? Get beyond feeling it, to closing it.
Gordon Ritchie