Talent Management: How to Make Your
Metrics Matter
Cathy Missildine, SPHR Chief Performance Officer
Intellectual Capital Consulting
April 26-27, 2012
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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
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Facilitators
Processes
Products
Technology
Financial
Others
Revenue
Profitability
Market Share
Budget Cost Savings
Others
Business Results Enablers
Vision and Mission
The Path to Desired Business Results
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Business Strategy Map: Example (Private) Business Results
Performance Objectives
Performance Metrics
Performance Outcomes
Actions
Increase sales from new customers
by 20%
Reduce prices of top 3 products
by 4%
Increase new sales from web
store by 15%
Increase new sales from
sales force by 15%
Increase new sales from call center by 10%
Strategic Goals
Increase Market Share
Improve new customer satis.
ratings from call center
interactions by 30%
Increase call center engage-
ment from 73.4% to 80%
Increase hit ratio from 10%
to 20%
Reduce call center turnover
by 20% Improve call center sales
skills
Improve call center product
knowledge
Improve call center
productivity
Increase number of
appointments
Increase percentage of
closings
Create new call center sales
training course
Upgrade CRM system
Hire four phone appointment
setters
Implement rewards &
recognition program in call ctr
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Metrics Hierarchy
Department Level
Source/Hire Days to fill
Functional Level Average Performance Scores
Quality of Hire
Organizational Level
Profit Margin ROI
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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…
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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
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Goal Alignment
Single most cited reason for failure of strategy: Execution Goals must be cascaded up and down so that all
employees understand expectations
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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
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Goal Alignment-Metric Examples % of employees tracking goals % of goals obtained % of sales quota exceeded % of bonuses paid on goal attainment % of goals exceeded
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Goal Alignment
See how employee performance is tied to corporate success!
Slide provided by Halogen Software, Sean Conrad
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Goal Alignment Metrics Give Your Managers the Ability to Intervene When Things Go Off Track
Slide provided by Halogen Software, Sean Conrad
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Or to Right the ship before it goes off course
Slide provided by Halogen Software, Sean Conrad
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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
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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
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Employee Performance: Nurturing Organizational Competencies
See Year Over Year Progress Are we closing gaps?
Slide provided by Halogen Software, Sean Conrad
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Employee Performance Metrics
Determine departmental, team or individual strengths and weaknesses: Identify Low & High Performers
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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
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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
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Combine Data Points for further insight…
Butterflies
Add Turnover % & $$$$$
Change Seekers
Add Turnover & $$$$$
True
Loyalists Add Turnover % & $$$$
Morale Busters
Add Turnover % & $$$$
High Performance
Low Performance
Engagement
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Talent Inventory: Quality of Hire Identifying HiPos
1 = high potential
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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.
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Metrics Need Data
The best Talent Management systems in the world won’t help you make informed decisions if the tools aren’t used!
Slide provided by Halogen Software, Sean Conrad
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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
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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
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Contact Us
27
Cathy Missildine
(770)843-8284
@cathymissildine
intellectualcapitalconsulting.blogspot
intellectual-capital.net