features How to Create More Value From Employee Surveys 16 Close the Relationship Gap in Your Organization 20 Take Employer Branding to the Next Level 24 The Strategic Importance of Workplace Culture 28 Special Report: HR Technology 34 columns Working Knowledge Assist the Rebound 10 Leading Edge Stopping Short 12 departments Profile Robb Webb: Hyatt’s Culture Guru 40 Guest Editorial Profit Is Not a Purpose 14 Full Potential Just a Waitress, or Mojo Queen? 50 Insight Does Education Pay? 42 resources Dashboard Editor’s Letter 4 Three Best Practices Employees Crave 44 Application Virtually Engineer Top Talent 46 Advertisers’ Index 49 Editorial Resources 49 September 2012 Special Report: HR Technology Proﬁt Is Not a Purpose Does Education Pay? The Strategic Importance of Workplace Culture Three Best Practices Employees Crave Culture Guru Hyatt’s Robb Webb prioritizes individual development to ensure engagement at the hotel corporation remains high Advertisement Tata Interactive Learning Forum 2012 October 3-4 , 2012 The Mayflower Renaissance (Marriott) , Washington DC Running Learning Like A Business: Focus On Outcomes, Effectiveness, and Efficiency Please register today at www.TataLearningForum.com to request an invitation. The event is by invitation only. TLF 2012 Speakers Dave Vance Former President, Caterpillar University » Expect to meet over 50 CLOs, VPs, EVPs in Training, HR & Business functions, and share industry best practices and participate in thought-provoking discussions. » TLF 2012 will serve as a launch pad for TDRp - Talent Development Reporting Principles – an exciting initiative to provide a framework to measure and report talent development outcomes. Kate Harrington VP - Learning & Enablement, Rogers Communications Claudia Rodriguez VP - Global Learning Organization, Motorola Solutions » The Brandon Hall Group will present their research on the interrelation of the learning and talent management functions. The event will encourage the CLOs to put on their CFO hats. Sandy Shaw VP - Talent Management, Sodexo » Overnight accommodation will be sponsored by Tata Interactive Systems (a part of the $83.3 Billion TATA Group) Carrie Beckstrom VP - Learning & Performance, ADP Words of Appreciation from Tata Learning Forum 2011 “Great contacts to follow up with, good learning from other’s presentations, high quality speakers with extensive and impactful experiences” – Sonia Vora, VP, Global Training, Northern Trust “I have attended several learning focused conferences, and I found this most relevant to my organization’s current situation.” – Melanie Jescavage, Senior Director, Learning Programs, Cerner Corporation Advertisement Need a good reason to bring your training online? How about doubling your revenue? That’s the result that some of our customers are getting, thanks to GoToTraining’s RevStream feature, which allows learners to register and pay in one easy step. So you can add fee-based training to your mix with no special accounting and no third-party software needed. And GoToTraining makes it fast, easy, and cost-effective to offer truly interactive sessions with learners in any location. Train clients in groups large and small—and keep your own staff up to speed, too. Open up your business to a brand new revenue stream. Why should you bring your training online? Find out at GoToTraining.com/FindYourReason 1 866 962 6491 [from the editor] by Mike Prokopeak Call Me Maybe In case you’ve been living under a rock and have been shielded from the cultural phenomenon “Call Me Maybe,” then lucky you — the song’s chorus isn’t already playing in an endless loop in your head as you read these words. out a number of subsequent chart toppers, but “Call Me Maybe” falls into a long line of one-hit wonders that explode into ubiquity before inevitably fading. Review the last dozen years or so and while the ﬂavor of the month is often sweet, the less glamorous work of long-term talent management is what tops the charts. “Call Me Maybe,” which began a months-long run as Billboard’s No. 1 in June, is a sticky sweet confection of adolescent longing and insouciance sung by Canadian singer Carly Rae Jepsen. Like any good pop hit, it deploys ruthlessly catchy hooks and a repetitive chorus to grab a stranglehold on your attention. After just one fleeting listen it plops down in your subconscious only to pop up at the most inconvenient of times, such as when you’re trying to write your monthly letter from the editor under deadline. It’s been helped by a veritable supernova of YouTube video covers, including one by the Harvard men’s baseball team that has more than 15 million views, and another by the U.S. Olympic swim team. September 2012 4 My personal favorite is the version done by the singer herself accompanied by “Late Night” host Jimmy Fallon and his house band, The Roots, using instruments apparently requisitioned from a kindergarten classroom. Amazingly, “Call Me Maybe” has united such disparate figures as Cookie Monster, Justin Bieber, U.S. troops in Afghanistan and former U.S. Secretary of State Colin Powell in homage. No offense intended to Jepsen, who at just 26 years old may very well put talent management magazine www.talentmgt.com you’ll see similar one-hit wonders rise and fall in talent management. As we floundered in the depths of recession three years ago and employers shed jobs by the thousands, the No. 1 hit was engagement. Faced with doing more with less, employers tasked their HR departments with boosting employee engagement in hope of driving productivity higher without raising costs. Since then, other hits have topped the charts. Topics like wellness and work-life balance (what cantankerous former GE boss Jack Welch called a “phenomenon of below-average performers” in his book Winning) burst on the scene. A sputtering recovery with mounting external economic pressure and rising internal temperatures pushed employers to find a way to maintain high productivity while limiting burnout. Lately the top hit has been innovation. As bosses come to grips with the realities of the knowledge economy, they’ve turned to the generation of new ideas and products as the way to remain fresh and profitable. Talent managers have dutifully followed along. The same can be said for the other business trends of late. Big data and workforce analysis are riding high, along with social media. Because something is a short-term hit doesn’t mean it lacks long-term value. Work-life balance, wellness, innovation, collaboration, engagement, social networking and quantitative analysis are all valuable ongoing parts of what we do. But all are merely pieces of successful talent management, which is the broader mission to find, attract, develop and deploy talented and high-performing people in pursuit of our organizational goals. Focusing on the latest and greatest hit does a disservice to that mission. It may offer short-term gratification along with necessary justification to a skeptical stakeholder, but in the long run we risk casting ourselves as today’s here-today, gone-tomorrow pop phenomenon. Focusing on the latest hit wittingly or unwittingly reinforces the impression that what we do is short-lived, effervescent and fleeting. Pay attention to what’s happening in the here and now for inspiration, but remember that talent management is a complex, complicated and above all long-term process. The formula for success is no simple song, no matter how much it catches the imagination. I’m not arguing that you be your organization’s designated curmudgeon. HR too often is wrongly stereotyped as the organization’s designated buzz kill. Rather, enjoy the hits, take pleasure in the warm glow they cast, but recognize that they are fleeting. The rhythms that move the organization run much deeper and slower than any one song, no matter how catchy. Have a thought to share? Here’s my number, call me maybe: 312-6769900. Mike Prokopeak Editorial Director [email protected] Experience the next level of search technology with SeeMore from Monster. Through simple, seamless integration with all systems, SeeMore consolidates all of your resume databases in one safe, secure location. Your internal databases. Monster’s database. Referrals. Social networks. All in the same place. The benefit? An HR department better able to streamline their talent management workflow to reduce hiring time and increase productivity. SeeMore. From Monster. Find better. tm Visit findbetter.monster.com to learn more about Volume 8, Issue 9 September 2012 GROUP PUBLISHER John R. Taggart [email protected] EDITOR IN CHIEF Norman B. Kamikow [email protected] SENIOR VICE PRESIDENT, OPERaTIONS Gwen Connelly [email protected] VICE PRESIDENT, EDITORIaL DIRECTOR Mike Prokopeak [email protected] MaNaGING EDITOR Kellye Whitney [email protected] SENIOR EDITOR Deanna Hartley [email protected] aSSOCIaTE EDITORS Frank Kalman [email protected] Ladan Nikravan [email protected] COPY EDITOR Christopher Magee [email protected] EDITORIaL INTERN Jeffrey Cattel WEBINAR DIRECTOR, RESEaRCH aND aDVISORY SERVICES Sarah Kimmel [email protected] VICE PRESIDENT, BUSINESS DEVELOPMENT Kendra Chaplin [email protected] Tuesday, Sept. 25, 2012 11AM PT/2PM ET aRT DIRECTOR Adrienne Brust [email protected] PRODUCTION MaNaGER Linda Dziwak [email protected] wEB MaNaGER Spencer Thayer [email protected] E-MaRkETING SPECIaLIST Molly Koeneman [email protected] DIGITaL MEDIa COORDINaTOR Chatigny Imburgia [email protected] DIRECTOR, EVENT DEVELOPMENT Trey Smith [email protected] SOCIaL MEDIa COORDINaTOR Rose Michaels [email protected] BUSINESS MaNaGER Vince Czarnowski [email protected] MID-aTLaNTIC & MIDwESTERN aDVERTISING MaNaGER Clifford Capone [email protected] NaTIONaL aDVERTISING DIRECTOR Cathy Sanassarian [email protected] EaSTERN aDVERTISING MaNaGER Kari Carlson [email protected] DIGITaL aCCOUNT MaNaGER Jerome Atendido [email protected] EVENTS SaLES MaNaGER Kevin Fields [email protected] CIRCULaTION DIRECTOR Cindy Cardinal [email protected] LIST MaNaGER Jay Schwedelson [email protected] aDVERTISING aDMINISTRaTIVE aSSISTaNT Melanie Lee [email protected] CONTRIBUTING wRITERS: Laurie Bassi Scott Blanchard Halley Bock Jeffrey Cattel Neil Costa Jac Fitz-enz Marshall Goldsmith Lisa Earle McLeod Dan McMurrer Ladan Nikravan Lizz Pellet Connie Perez Kellye Whitney Kevin D. Wilde Effective Leadership Assessment: Strategies, Tools & Tips for Success To succeed today, organizations need to know where their best talent is and how to grow it to create future leaders. But without the right strategies, tools and information, executing leadership assessments is nearly impossible. So what does an organization need to be successful in assessing and developing leaders? Join us for a discussion about the tools and information you need as well as examples of some of the best practices from industry-leading companies. Speaker: Stephan Millard Talent Management Strategist SumTotal Systems Register today at NORMaN B. kaMIkOw President JOHN R. TaGGaRT Executive Vice President GwEN CONNELLY Senior Vice President Operations PaTRICIa PIERCE Chief Financial Officer TalentMgt.com/ webinars Powered by September 2012: Volume 8, Issue 9 24 16 How to Create More Value From Employee Surveys 24 Laurie Bassi and Dan McMurrer Jeffrey Cattel In the war for talent, potential employees can be swayed by brands that align closely with their ideal work environment. Employee surveys should be expanded to include a broader set of questions that go beyond employee engagement. 20 Close the Relationship Gap in Your Organization 28 The Strategic Importance of Workplace Culture Scott Blanchard Lizz Pellet Leaders who connect with the workforce on an emotional level can improve collaboration, execution and performance. Cultural shifts can produce discontent in the workplace. But that challenge can be mitigated if senior leaders treat culture like other key performance indicators. September 2012 8 Take Employer Branding to the Next Level talent management magazine www.talentmgt.com 34 Special Report: HR Technology Ladan Nikravan Mobile and social technologies are transforming how HR professionals do their jobs and communicate with employees, consumers and job candidates. Are you a part of the Talent Management Network? Follow us: twitter.com/TalentMgtMag Like us: talentmgt.com/facebook Join the group: talentmgt.com/LinkedIn departments 40 proﬁle Robb Webb: Hyatt’s Culture Guru Kellye Whitney 20 Hyatt CHRO Robb Webb prioritizes individual employee development at all levels of the company to promote tenure and a customer-centric culture. 42 Insight Does Education Pay? Ladan Nikravan Harvard professor Richard Freeman and Northeastern University’s Andrew Sum say earning a degree has benefits, but they disagree on what those are. 44 Dashboard Three Best Practices Employees Crave Halley Bock Organizations can rebuild workforce trust by changing how employees access information and participate in decision-making processes. 46 16 Application Virtually Engineer Top Talent Neil Costa After hosting its first onsite career fair, A123 Systems developed a recruitment campaign using online digital marketing channels. 28 On the Web columns Meet Our ‘Psychology at work’ Blogger in this blog channel, Dan Bowling, an expert on the science of well-being and work, discusses how to boost talent development and organizational performance with a better understanding of human behavior and psychology. “I believe that happiness at work does drive business results ... and I am confident there are legions of you out there who agree. We need to be careful, however, about over-promising and under-delivering.” Dan Bowling, managing principal of Positive Workplace Solutions working knowledge kevin D. wilde Assist the Rebound 12 Leading Edge Jac Fitz-enz Stopping Short 14 Guest Editorial Lisa Earle McLeod Profit Is Not a Purpose 50 Full Potential Marshall Goldsmith Just a Waitress, or Mojo Queen? 4 Editor’s Letter Call Me Maybe 49 advertisers’ Index 49 Editorial Resources Correction: In the article “Here Today, Gone Tomorrow” in the August issue, Rebecca Callahan should have been identified as president of Recruitment Process Outsourcing for Randstad Sourceright. oN The coVer: ©2012, Nic GourGuechoN talent management magazine www.talentmgt.com September 2012 blog.talentmgt.com/category/ psychology-at-work/ 10 resources 9 [working knowledge] by Kevin D. Wilde Assist the Rebound When a star performer stumbles in a new assignment, there are two decisions to be made. Organizational leaders make the first one: “Should we give the employee a second chance?” With an affirmative choice, the employee makes the second choice: “Will I give myself a second chance?” The company’s second chance decision is made up of a number of affirmative elements, such as: • The talented employee’s lack of acceptable performance in the current role is not due to an ethical lapse. • In the long run, the skills and competencies to succeed are there, but the present job needs something else. • Thereisstillsolidsupport from key stakeholders and sponsors. • The second chance role inside the organization is a better option for all concerned. • Theemployeewillrecover,with the ambition, innovation and self-confidence shown in prior roles. It isn’t uncommon after a series of successful stretch assignments for a shooting star to hit the wall. Self-doubt may follow as the regular A-level talent sees a report card with much lower marks. Smart talent managers in these save situations carefully guide the employee to regain performance traction and self-confidence in specific phases. September 2012 10 The first rebound phase comes with a conversation about changing jobs. Managers should be direct and clear on the need for a change. Bosses are understandably nervous about providing negative feedback to a high-potential employee. They fear a negative reaction, which may result in the employee believ- talent management magazine www.talentmgt.com ing he or she has failed in such a way that career support has been lost, and that future prospects are better outside the company. While that is a risk, the employee knows current performance is falling short and generally appreciates being told the truth rather than having to buy into a sugar-coated story about the need for change. Further, there are valuable lessons to learn in the stretch assign- Help an employee give him or herself a second chance in the organization. ment that resulted in the stumble. Obscuring the facts eliminates potential growth and may plant the seeds for a blind-spot that becomes a derailment later in the career. The point is to deliver the message and conduct the conversation to show respect, empathy and support toward the employee. The key is to help the employee give him or herself a second chance. A rebound in self-confidence and lessons in resiliency are set in motion in the first meeting. The employee needs to hear that the change in role is the result of careful consideration and that support will continue. The second rebound phase is the early journey in the new role. Employees will sense and internalize the signals that will either rebuild or tear down self-confidence. While timing may necessitate a holding pattern slot to provide movement out of a failing situation, it’s much better for the next role to provide a high level of challenge and engagement. Early success in the rebound role can reinforce the employee’s efforts to regain positive momentum and resonates well with the organization. It reminds the entire workforce of the employee’s value. If a holding pattern role is the only option, then work quickly to find a more suitable role; otherwise you risk losing the employee, who sees the career progress clock ticking loudly and views the new assignment as losing time. Positioned skillfully, a useful way to show support is to demonstrate investment in ongoing development. Sponsorship to a high-profile executive education program is one way to show commitment. A related step may be to provide specific training to shore up a deficiency in needed competencies, such as strategic thinking, influence and technical mastery. Another early signal is the quality of support from sponsors and other key organization stakeholders. Ongoing mentoring and key management visibility in the new role sends the right signal: We value you and believe this new role will be important to the organization and your career. All the messages need to align for a talented high potential to recover. The work of a talent management leader is to orchestrate decisions and help the employee decide to make the most of the second chance. About the Author Kevin D. Wilde is the vice president and chief learning officer at General Mills and author of Dancing with the Talent Stars. He can be reached at [email protected] Virtual HR Environments Learn how leading organizations are integrating virtual environments into their HR strategies to recruit, on-board and provide benefits. Virtual HR Environments Made Easy Learn how other industry leaders have gone virtual: www.unisfair.com/virtualHR The InterCall logo is a registered trademark of InterCall. [leading edge] by Jac Fitz-enz Stopping Short Perhaps it is because human resources people are focused on administering programs and providing services that they tend to stop before they reach business value. When we try to evaluate or analyze our work, we often quit at the intermediate results rather than pushing through to the end point found in the marketplace. As a result, line managers nod their heads at our HR services but don’t consider them important because we have not delivered the payoff. Benchmarking, return on investment evaluation and analytics all take time and resources. They all have the potential to add value, but unless we can link the result to a business improvement they are little more than a sunk cost. Fundamentally, business operations cover quality, innovation, productivity or service. I call them QIPS, and they are not final objectives. They are penultimate stops on the way to profitability. September 2012 12 When we offer an HR service — be it recruiting, training, retention management, compensation or any other — each has its valuation points. We need to first benchmark — compare our HR services and outcomes to other companies — to see where we stand. Even if we are the best, this is not proof that our efforts are affecting the end goal. In fact, it is not even proof that our corporate QIPS are better than the competition. It is simply a comparative score. It may show that our turnover compares favorably with the benchmark, or that our leadership competencies are better or worse. But that is all it is. It is not a leading indicator. talent management magazine www.talentmgt.com Next is ROI evaluation. ROI is an after-the-fact exercise attempting to show how something has changed as a result of an HR intervention. We can show that there was or was not a significant change in the outcome from our service. ROI is most often used on training. Training can be measured at several levels, from trainee satisfaction through learning to application on the job, and finally effects on QIPS. In some cases ROI has been pushed all the way to increases in sales, leading when we evaluate HR, we too often quit at intermediate results. hopefully to improved profitability. But it does raise questions, such as, why did sales increase? What happened to margins? What about cost of sales? Even if ROI shows an increase in customer satisfaction, that is still a step away from financial impact — our ultimate goal. Analytics are divided into three sections. Descriptive tells what happened in the past. This is where benchmarking and ROI evaluation fit. The news from the past quarter may be good, but it doesn’t forecast positive change for the future. Predictive analytics suggests what can happen given future investment decisions. We may be able to demonstrate that there is a high improvement probability as a result of investing in a program to reduce turnover or increase engagement. Prescriptive analytics tells us what and how we should do something to realize those values. The problem I suggested from the start is that we quit before we reach the goal — the so-called payoff. Let me give you two examples from fields familiar to all of us. Suppose you plan a great Thanksgiving dinner. You work out your menu, purchase the ingredients, prepare the food and walk into the dining room empty handed. Your guests can smell the savory aromas emanating from the kitchen. It might even make them salivate, but until you bring the food to the table for them to appreciate, all you have done is tantalize them. A second example would be expanding a house. Again, you develop a plan, bring all the materials to the site, erect the structure and finish painting and landscaping, but if you don’t turn on the electricity and the plumbing, all you can do is admire your creativity and skill. No one will reap the benefits of living in the house. There are countless examples of stopping short, and seldom is there a good reason for it. Why go all the way to the executive suite and fail to open the door? Predictive analytics is the key to the door and a seat at the table. About the Author Jac Fitz-enz is founder and CEO of the Human Capital Source and Workforce Intelligence Institute. He can be reached at [email protected] Make the Human Connection. We are people people. JOIN THE COMMUNITY. Human capital is about the people in your organization who you manage, train or support. It’s also about managing your own career. For that, you need to learn from other human capital professionals’ ideas, knowledge and experience. Now, there’s one place you can make the connection — an active, members-only online community for meaningful discussions about pertinent issues facing the human capital industry, and a one-stop clearinghouse for the resources, research, thought leadership and networking opportunities people like you need to succeed. Become a member today for FREE. HUMAN CAPITAL MEDIA.COM [guest editorial] by Lisa Earle McLeod Profit Is Not a Purpose What’s the purpose of your business? If you answered, “to deliver shareholder value” or some other version of “make money,” you may be destined for mediocrity. Making money isn’t enough. If you want to attract top talent, drive revenue and outperform your competition, your organization needs a more noble purpose than just scrambling for a buck. Workplace studies and social science are confirming what we already know in our hearts to be true: People want to make a difference, and they want to make a difference at work. Six years ago, a major biotech firm asked my team to conduct a six-month-long, double-blind study of its sales force. The purpose of the study was to determine the behaviors that separated top salespeople from average salespeople. The study revealed something no one expected. The most pronounced difference was that the top performers all had a larger sense of purpose than their average counterparts. The salespeople who sold with noble purpose, who truly wanted to make a difference to their customers, consistently outsold those who were focused on sales goals and money. The words noble and selling are rarely seen together. Most people believe top-performing salespeople are only motivated by money, and that their sole objective is to close the deal. That belief is wrong. September 2012 14 The data from a 10-year study from Millward Brown Optimor of more than 50,000 brands around the world show that companies talent management magazine www.talentmgt.com with ideals to improve people’s lives at the center of all they do outperform the market by a huge margin. Another study conducted by Jim Stengel, former chief marketing officer of Procter & Gamble, revealed, “those who center their business on improving people’s lives have a growth rate triple that of their competitors.” People have become jaded about mission and vision. Too often, they’re nothing more than meaningless platitudes about market leadership posted on a placard that no one reads. To attract top talent, drive revenue and outperform the competition, organizations need a more noble purpose than just scrambling for a buck. A noble sales purpose is different. It is a concrete reason to get out of bed in the morning. It’s how you and your company make a difference today. Here’s why purpose matters: Purpose is why your organization exists. Purpose drives sales. You don’t have to create world peace. Your purpose can be to help customers be more successful or to make a difference in your industry. Purpose makes you money. Jim Collins and Jerry Porras of Good to Great fame documented that organizations driven by purpose and values outperform the market 15 to 1 and outperform comparison companies 6 to 1. Purpose may sound ﬂuffy, but it translates into cold, hard cash. Having a purpose beyond making money almost always results in you making more money. Purpose isn’t just a feel-good thing; it’s essential in a tough economy. CMIT provides IT services to small businesses. Two years ago, if you asked its people what they did, they would have told you: “We sell IT services.” Now CEO Jeff Connally says: “Our purpose is to help small businesses be more successful.” We pulled that purpose to the front and center of everything they do, and the company’s sales are up 35 percent while competitors are floundering. Purpose attracts top talent. Beyond food and shelter, human beings have two fundamental emotional needs: connection and meaning. We want to make a difference, and we want to be part of something bigger than ourselves. After working with more than 200 organizations and spending more than 10,000 hours in the field assessing top performers, I know without a doubt that working for a noble purpose engages top performers in a way that spreadsheets never will. Profits connect with your head. Purpose connects with your heart. If you want your organization to be more successful, start with purpose. About the Author Lisa Earle McLeod is a sales leadership consultant and author of the upcoming book, Selling with Noble Purpose: How to Drive Revenue and Do Work that Makes You Proud. She can be reached at [email protected] GET CERTIFIED. GET NOTICED. TM Being HR certified is a mark of distinction. It represents a personal and professional commitment to the field. HR certification serves as a visible acknowledgement of your demonstrated mastery of core HR principles and skills essential to the best practice of HR. “I have seen the value perception of my HR certification increase from my employer and many other organizations as they prefer and even require the HR Certification Institute’s credentials. My credentials have opened employment opportunities and provided me with professional credibility.” – Javier Lozano, SPHR-CA, GPHR APPLY FOR THE 2012 HR CERTIFICATION EXAMS TODAY. WINTER Applications Accepted: July 9—October 5, 2012 Late Applications Due^: November 9, 2012 Exam Dates*: December 1, 2012—Jan. 31, 2013 Visit www.hrci.org/certified/tm for more information on our PHR®, SPHR®, GPHR® and California (PHR-CA®/SPHR-CA®) certification exams and exam schedules. *GPHR® and California (PHR-CA®/SPHR-CA®) exams are held from Dec. 1—31, 2012. ^A late fee of US$75 will be applied on all late applications. FOLLOW US ON t in f and our CERTIFICATION MATTERS BLOG How to Create More Value From Employee Surveys Laurie Bassi and Dan McMurrer With retooling, hr leaders can better use survey data to drive business results. C EOs often proclaim that “people are our most important asset.” Yet many HR departments find themselves unable to play a significant part in translating these words into reality for several reasons: • Some HR departments rely so heavily on benchmarking that they fail to customize their strategies to their organization’s unique circumstances, thereby almost guaranteeing they will, at best, stay average. for HR departments or functions to ignore analytics,” said Larry Costello, executive vice president, Tyco Fire and Security. “The forces bringing analytics to the forefront are simply too powerful to disregard.” Talent leaders can use a four-step process to create an HR analytics strategy that will transform the traditional engagement survey into a source of actionable business intelligence. Analytics can ensure HR is not pigeonholed as nonstrategic and out-of-touch. “It’s no longer possible Step 1 — Create a smarter employee survey. Traditional employee engagement or satisfaction surveys are not up to the task of producing actionable business intelligence. Engagement is necessary to produce great results, but it’s not sufficient. For example, in the Harvard Business Review article “Manage Your Human Sigma,” while describing an analysis of customer engagement at a multi-site retailer, Gallup researchers state, “Our working assumption was that at least a few of the top employee engagement stores would also be top customer engagement stores. We were wrong. Just one store appeared on both lists.” Figure 1: The Essential Elements of a Smarter Employee Survey Figure 2: Data That Produces Actionable Business Intelligence • Othersgettoocaughtupintheﬂavor-of-the-month programs. • Many are so busy putting out ﬁres they have no time to address what’s truly important — drivers of business results. • Despiteitspotential,toooftentheonlythingthat comes out of the annual employee engagement survey is a big data dump with no real impact. Good employer HRIS data Customer satisfaction survey Great business results Good seller September 2012 16 Good steward 360 feedback for leaders Source: McBassi & Co., 2012 Source: McBassi & Co., 2012 talent management magazine www.talentmgt.com Data that produces actionable insights Employee engagement survey Sales force comp payout Financial performance On the Web Without some essential ingredients, surveys provide no real value to support goals. To find out what these ingredients are, visit talentmgt.com/ articles/view/3059. There are two major deficiencies in most employee engagement surveys: 1. They pay too little attention to critical organization-level factors such as work processes, hiring processes and informal learning. These factors are big drivers of business results, but are typically not among the top employee engagement/satisfaction drivers. For this reason, they are under-measured in most surveys. 2. They miss the opportunity to tap into workforce wisdom about the drivers and impediments of what it takes for an organization to be a good seller and a good community and environmental steward — both of which are increasingly necessary to an organization’s ability to outperform its competition (Figure 1). Employee survey content should be expanded to include a broader set of questions that go beyond HR’s current concept of employee engagement. Step 2 — “Linkage analysis” to business outcomes. Next, statistically link the data from the smarter employee survey to data on desired outcomes. For example, Figure 2 shows the types of data that global technology company Applied Materials has statistically linked with its employee survey to create actionable intelligence for the business as a whole. The specific statistical methodologies that should be used for the linkage analysis will depend on the outcome being analyzed. The techniques can range from complex multivariate analysis, such as logit regression or panel estimation techniques, for most individual-level data, to more straightforward univariate analysis — correlations and statistical testing of differences of means — for group data with small sample sizes. However, it’s important not to get hung up on the statistical nuances since there are plenty of experts who can help with this. The critical point is that linkage analysis is the missing connection that allows organizations to move beyond guesswork, hope and intuition on the people side of their business. “Leveraging analysis that connects areas like employee engagement to important business results is the missing link,” said Mary Humiston, senior vice president, global human resources, Applied Materials. “It is helping us to develop a talent management magazine www.talentmgt.com September 2012 Linkage analysis can be done with soft outcomes data collected within a smarter employee survey, which includes engagement — including employees’ intent to stay and willingness to recommend the organization to friends as a good place to work — as well as elements such as employees’ reported ability to help the organization achieve its cost containment goals; and the extent to which employees report that the work environment supports excellent customer service. Data on hard outcomes comes from outside the survey, such as sales, safety, turnover and customer satisfaction, and is then mapped to the survey. This involves aligning these outcomes to the survey responses of the employees who provided them. It is important to note that this mapping requires the survey be non-anonymous. Hence, creating business intelligence from a smarter employee engagement survey requires contracting with an independent third-party analytics firm, since failing to do so is likely to result in less-than-frank responses to a nonanonymous survey. 17 strong fact-based HR strategy for driving improved business results. Identifying the unique human drivers of our business outcomes with precision and rigor is helping us to elevate our game.” Step 3 — Create a rigorous, fact-based process to identify the best areas of opportunity. It’s important to understand that benchmarking is not analytics. For example, knowing that an organization benchmarks at the 90th percentile on a specific survey item should not be cause for celebration — unless linkage analysis reveals that the specific item drives an important business outcome. And a low score on a specific survey item should only create significant concern if it drives a key outcome. Benchmarking provides little, if any, basis for creating a fact-based HR strategy. Figure 3, which is based on a confidential client case, illustrates this point. Each point in the graph represents a survey question. The vertical axis shows how strong or weak the organization is on each survey item, measured relative to the overall organizational average. Survey items in the bottom half (Quadrants 3 and 4) are areas of weakness, while items in the top half (Quadrants 1 and 2) are strengths. Following a survey, many organizations spend lots of time working on their lowest-scoring items. They would therefore focus heavily on seeking to improve survey item A — lower left corner — the item with the lowest overall score. However, if a second piece of information is added to the mix, a different conclusion emerges. Take a look at the horizontal axis, which shows the results on how important each question is in predicting a key measure of sales success based on Step 2. Those items farther to the right (Quadrants 2 and 4) are positive predictors of sales success, and those items on the left (Quadrants 1 and 3) are negative predictors of sales. As expected, many more survey items are positive predictors than negative ones. Remember survey item A with the lowest score? Turns out it’s a negative predictor of sales and therefore is actually a poor target for improvement. The best area of focus turns out to be survey item B, which has the fourth-lowest score, but is both an important positive predictor of sales and still an area of relative weakness. While it might be tempting to wonder what the specific survey questions are that correspond to A and B, that would miss the point, which is that each organization must do its analytics homework to determine the survey items that are most important for it rather than accept a one-sizefits-all answer. The content of the actual survey items in this example doesn’t matter; the results will be different for every organization. That’s the point of doing this analysis — to help organizations move beyond benchmarking and target survey items that are the most important predictors of their organization’s business outcomes. Step 4 — Make insightful and easy-to-understand recommendations. Getting to step 3 can be challenging, since it helps move organizations beyond potentially misleading one-size-fits-all benchmarking measures. But to enjoy the full advantage of this breakthrough, effectively communicating the find- Figure 3: Moving Beyond Benchmarking (Strength) Each data point = one survey item, showing its score (strength/weakness) and its link with a key sales outcome 30 Quadrant 1 Quadrant 2 Negative drivers and relative strengths Positive drivers and relative strengths 20 Survey score 10 0 Survey item B -10 Survey item A (Weakness) -20 September 2012 18 -30 Quadrant 3 Negative drivers and relative weaknesses -0.30 -0.20 Source: McBassi & Co., 2012 talent management magazine www.talentmgt.com Quadrant 4 TOP AREAS OF OPPORTUNITY Positive drivers and relative weaknesses -0.10 0.00 0.10 0.20 Correlation with measure of sales success 0.30 0.40 ings from the analysis is essential. Three points to keep in mind: 1. Avoid data dumps and the temptation to share everything learned in the course of the analysis. 2. Home in on the most important findings and implications, and focus on those. 3. Communicate simply and compellingly. This is as much art as science, but it’s a critical skill to create actionable business intelligence on the people side of the business. Traditional employee engagement or satisfaction surveys are not up to the task of producing actionable business intelligence. Figure 4 provides an example of how the insights from Step 3 can be presented in a way that makes it easy for senior executives to quickly absorb the most important findings. The top areas of opportunity emerging from Step 3 provide a compelling business case to create a factbased HR strategy to drive business results. Once this has been achieved, it is typically no longer necessary for HR to push the findings of the employee engagement survey onto the organization — the organization starts to pull for the analysis and insights. The move from push to pull is a significant breakthrough in HR’s ability to help the organization be truly strategic. “At Applied Materials we are using analytics to convert both HR data and business data from information into actionable insights,” said Angela Sheffield, head of global workforce planning at Applied Materials. “The executive team is very engaged — they are asking for more. It really helps them to understand the link between what goes on in HR and our business results and guides them to where the biggest levers are for improvement.” There are powerful forces — in terms of both supply and demand — that are bringing HR analytics to the forefront. First, technology advances have made HR data available on a scale that was heretofore unimaginable. More importantly, the growing economic premium associated with superior human capital management means that HR strategy is simply too important to be left to gut and intuition. If HR doesn’t step up to the plate, another part of the organization is sure to fill the void. One of the real beauties of this approach is that it is possible to provide insightful, customized reports to each manager and offer specific recommendations for actions the manager should take — based on his or her specific pattern of results — to help that manager achieve his or her objectives. Laurie Bassi is CEO of McBassi & Co. and chairman of Bassi Investments. Dan McMurrer is chief analyst at McBassi & Co. and chief research officer at Bassi Investments. They are co-authors of Good Company: Business Success in the Worthiness Era. They can be reached at [email protected] Figure 4: Where Can Talent Leaders Improve Business Results? Key outcomes for sample company Survey item The senior management team seeks and uses input from employees in making decisions. Employee commitment Sales productivity ✓ ✓ ✓ Sample company shares information and reasoning behind important decisions with customers. Employees’ performance problems are addressed appropriately. The most competent employees are promoted. Sample company does things the right way and avoids taking shortcuts. Sample company has well-defined processes for getting work done. Hiring process results in the best candidate getting the job. Sample company encourages and expects teamwork. ✓ ✓ ✓ ✓ ✓ ✓ September 2012 ✓ ✓ ✓ Customer satisfaction Source: McBassi & Co., 2012 talent management magazine www.talentmgt.com 19 Close the Relationship Gap in Your Organization Scott Blanchard Managers and employees need to be able to trust one another and communicate effectively to succeed. Listening and direct communication techniques can help. O ne of the biggest productivity and performance gaps in most organizations is the distance that separates an organization’s managers from their direct reports. Close work relationships that include frequent conversations, clear goals and candid feedback can improve collaboration, execution and performance. Distant relationships cause resistance, mistakes and lower productivity as employees satisfy the minimum requirements of their job descriptions but not much more. There are four skills that every manager needs to possess to bring out the best in people — the ability to build trust, to listen, to deliver feedback effectively and to manage challenging conversations. In 2011, The Ken Blanchard Cos. released research findings on employee work passion that indicate feedback, connectedness and a sense of justice are all positively correlated to employee intentions to perform at a high level, apply discretionary effort, endorse an organization and support fellow workers in ways that are respectful and considerate. Not providing employees with adequate feedback on performance, not recognizing their improvements and ideas, or not ensuring that policies and procedures are fairly and consistently applied to all has repercussions. Without these things employees are more likely to engage in unproductive or even financially damaging behaviors such as passive aggressiveness and bare-minimum performance, and higher turnover can result. September 2012 20 There are two aspects of positive work relationships. The first is the degree to which the manager and direct report have a productive business relationship — meaning they are winning together, accomplishing goals and creating success. talent management magazine www.talentmgt.com The second aspect is the emotional, or affective, part of the relationship. This includes intangibles such as trust and positive feelings. The aforementioned study indicates the strongest correlations between the factors that create a passionate work environment revolve around an employee’s overall feeling of wellbeing in the workplace and his or her intentions to remain with an organization, to endorse the organization and its leadership, and to apply discretionary effort above and beyond minimum requirements when necessary. Trust Is Hard Earned and Easily Lost The reality is, today’s workforce remains largely disaffected and lacks trust in senior leaders. A 2011 employee satisfaction report from Maritz Research found that “Poor communication, lack of perceived caring, inconsistent behavior and perceptions of favoritism” were cited by respondents as the largest contributors. As a result, the report identified that “only 10 percent of employees trust management to make the right decision in times of uncertainty” and only 12 percent believe their employers genuinely listen to and care about their employees. It may sound cliché and simple, but people often don’t care what leaders know until they know that they care. Employees value leaders who connect with the workforce on an emotional level. A 2010 Towers Watson global workforce report found the most-desired attributes employees wanted in senior leaders were trustworthiness (79 percent) and concern for the well-being of others (67 percent). For managers looking to improve employee trust levels, there are several questions to ask reflectively: Are you trustworthy and reliable? Can employees count on you in a pinch? Do you have a clean and clear relationship emotionally with your employees? Cindy Olmstead, a business consultant and trust expert, has an ABCD model that can help managers assess their behavior. The model also can help open up conversations between managers and direct reports if some past behavior has created a sense of distrust. able: Do you demonstrate competence in your job? Believable: Do you act with integrity? Connected: Do you demonstrate that you care about others? On the Web By looking at these four subcomponents of trust, managers and direct reports have a greater chance of successfully identifying and resolving behaviors that can lead to a negative perception. Listening as a Skill Another bedrock foundation of a good relationship is the manager’s ability to fully understand and “get” the direct report. To accomplish that, people need to feel deeply understood and listened to. For many years, active listening was taught in leadership development programs as the gold standard. Active listening went beyond being quiet and focused to include understanding. Listeners could demonstrate this by repeating back to the speaker what they had just heard. Recently, many practitioners have been advocating an additional component to take listening to a higher level — the ability to “listen with the intention of being influenced.” While this is not something that can be as easily demonstrated, it can be easily recognized by the talent management magazine www.talentmgt.com September 2012 helping leaders connect with the workforce on an emotional level doesn’t mean they shouldn’t also learn resilience. To find out how the u.S. Army combats emotional distress among troops, visit blog.talentmgt.com/?p=1412. Dependable: Do you perform in a consistent and reliable manner? 21 speaker. People act and respond differently when they are actually considering what a speaker is saying as opposed to waiting to respond, dismiss or take the conversation in a different direction. When people are listening with the intention of possibly being influenced or having their minds changed, their responses, body language and questions are different. People sit forward in their chairs naturally and ask to hear more. The technique encourages listening to grow and can be a powerful way to contribute to a person truly feeling heard. The Problem With Feedback Over the years, leaders have been taught a feedback model based on a pipe dream. The pipe dream is that a manager will sit down with a person, have a conversation with him or her pointing out the behaviors that need to change, and then that person will hear what the manager is saying, agree with the assessment, and successfully change his or her behavior permanently. That almost never happens, and when it does it’s only by accident. that phone call.” They position what should be a direct request to change as feedback. A better way for managers to approach this is to make a direct request. “Mary, I just heard you answer the phone this way and, as your manager, I need you to answer the phone this other way. Here’s my reasoning behind that. Are you willing to comply with my request?” A manager may still get into a drawn-out conversation, but leading with a direct request is a better way to begin than soft-pedaling the request as feedback, which implies there is some choice on the employee’s part as to whether to act on it. A direct request is the more appropriate approach and has a higher likelihood of success when behavior needs to change. As a side benefit, people also will see the manager as more direct and open with this approach instead of having a hidden agenda, which some people sense when a manager opens with, “I have some feedback for you.” To bring out the best in people, every manager needs the ability to build trust, to listen, to deliver feedback effectively and to manage challenging conversations. What typically happens is that managers see behavior they don’t like and decide to give the employee feedback about it. Typically, the employee sees the situation differently and doesn’t agree. Further, if the employee has any type of negative relationship with the manager, he or she often will discount or devalue the feedback. The employee, in turn, also will have feedback he or she would like to give. Now there is a defensive atmosphere. Feedback must be approached carefully, and a manager needs to lower expectations for the initial feedback session. Behavioral change is almost always a drawn-out affair, and managers need to be prepared to work with an employee over an extended period of time to achieve lasting change. September 2012 22 Managers also have to make sure they are not using feedback as a soft sell of what should be a direct request for behavioral change. For example, if someone is answering the telephone in an inappropriate way, often managers — especially young managers — will use an indirect approach, saying, “Mary, I have some feedback for you around the way you just answered talent management magazine www.talentmgt.com Dealing With Difficult Conversations Eryn Kalish, a mediator in the San Francisco Bay area, said challenging conversations are mainly the result of an issue that was not tackled when it was small and has been allowed to grow over time, such as issues with attitudes or behaviors. If they had been addressed when they first came up by having a direct conversation, the issues could have been defused early. But in many organizations, small things, especially those that seem to be sensitive, are allowed to go on until the situation becomes untenable for one party or the other. Further, there is a lot of history and tension connected to the issue. When dealing with difficult conversations, it is important for managers to understand they are dealing with emotion as much as content. Kalish said she teaches that managers have to create a structure so both people involved in the conversation can freely express their side of the story. Managers should be able to: • Stateconcernsdirectly:Learnhowtospeakupin a way that doesn’t alienate others. • Probe for more information to gain a deeper understanding. • Engage others through whole-hearted listening, including listening with the intent of being influenced. • Attendtobodylanguage.Beabletospotdiscrepancies between what is seen versus what is being said. • Remain forward focused, but only when everybody is ready to move forward. Each person needs to be allowed to tell his or her version of the story. Managers can’t begin to resolve an issue until both people have had a chance to explain what’s been happening from their point of view. Build Strong Relationships Over Time In March 2011, Nilofer Merchant, Harvard Business Review corporate director and founder and former CEO of Rubicon Consulting, said, “Culture trumps strategy, every time.” Part of that culture is the accumulated beliefs, values and behaviors that develop in an organization. She said, “a healthy culture allows us to produce something with each other, not in spite of each other. That is how a group of people generates something much bigger than the sum of the individuals involved.” Blanchard’s leadership-profit chain research looked into the connections among leadership, employee work passion, customer devotion and organizational When you’re ready to further develop your team When you’re ready to invest in your organization’s future You are ready for American Public University American Public University is ready to help your team succeed. We’re a nationally recognized university with bachelor’s and master’s degrees for business, retail, IT professionals, and more — completely online. So your employees can take classes on their own time. And people are taking notice. 99% of employers surveyed would hire one of our graduates again.* When you’re ready, visit StudyatAPU.com/talent *APUS Alumni Employer Survey, January 2011 - December 2011 We want you to make an informed decision about the university that’s right for you. For more about our graduation rates, the median debt of students who completed each program, and other important information, visit www.apus.edu/disclosure. success and vitality. The research found that effective leadership — especially effective day-to-day management practices — is the key to create a highengagement, high-performance work environment that wows customers and creates superior financial performance. Another backbone of day-to-day leadership is effective performance management skills, including the ability to build trusting relationships, listen, deliver feedback effectively and manage emotionally charged conversations. Leaders at businesses everywhere need to identify and evaluate the dozens, hundreds or thousands of relationships that either help or hinder their organizations’ efforts to reach their goals. Closing the distance between managers and direct reports is one of the best ways to get started. Begin today. Scott Blanchard is an executive vice president and principal of The Ken Blanchard Cos. and co-founder of Blanchard Certified. He can be reached at [email protected] talentmgt.com Take Employer Branding to the Next Level Jeffrey Cattel Branding one’s company as a most-admired employer may require marketing, but hr executives play a key role by focusing on early identification and leadership development programs. E nter the Googleplex, headquarters of the world’s largest search engine in Mountain View, Calif., and one is transported to a utopia that appears more Willy Wonka than Wall Street. The 500,000-square-foot complex features employee lounges outfitted with pool tables and snack bars. Outside, employees can take a break at the beach volleyball courts or take a dip in one of the two swim-in-place pools. Hungry employees enjoy up to three free gourmet meals a day, and they can take advantage of subsidized haircuts and massages. Every part of the Googleplex, from its interiors to policies that let employees bring their dogs to work, exemplifies Google’s well-established work-hard, playhard mentality. This has become a cornerstone of the company’s employer brand, and likely helps Google perennially garner a top spot on Fortune magazine’s list of the World’s Most Admired Companies. Last year, Google finished second. Fifteen years after it first collaborated with Fortune to put together the most admired list, the Hay Group, a global management consulting firm, commissioned the study “Lighting the Path to Success” to look at the driving factors in the continued prominence of companies such as Apple and Starbucks that regularly land at the top of the list. “Most Admired Company respondents were considerably more likely to indicate that their companies had developed an explicit employer brand,” said Mark Royal, senior principal at Hay Group. “It’s something that Most Admired Companies are focusing on from a branding standpoint.” September 2012 24 Eighty-eight percent of the companies on the Fortune list developed an explicit employer brand, compared with 67 percent of their peers. talent management magazine www.talentmgt.com A Cultural Shift Employer branding refers to a company’s reputation as an employer, and it isn’t new to the workplace. Simon Barrow, chairman of People in Business, the employer brand consulting subsidiary of recruitment agency TMP Worldwide LLC, first introduced the term at the Chartered Institute of Personnel and Development’s annual HR conference in 1990. But the concept of employer branding remains important today in the war for top talent, said Kortney Kutsop, an employer brand specialist at employee branding company Universum. The company surveys some 500,000 people annually, including 65,000 college-age students, to find out what traits they find most attractive in an employer. Like Fortune, Universum comes out with its own list, the Top 100 Ideal Employers. “We’ve really seen a shift over the last few years where students are no longer saying, ‘I’m going to work for a company because I want to go into this industry,’” Kutsop said. “They think, ‘I’m computer science and I can actually work anywhere I want,’ whether it’s a consulting company or an accounting firm or someone like McKinsey or Google.” With a perceived wider range of options, potential employees are more easily swayed by employer brands that align closely with their ideal work environment, Kutsop said. As a result, talent leaders are becoming more involved in this branding. On the Web To find out how to take your organization from bland to brand and position it to attract diverse talent, visit diversity-executive.com/articles/view/943. Employer Brand Keeps Southwest Flying High “A lot of it is going to rely on marketing and communications,” Kutsop said. “But the role of HR is absolutely crucial in developing programs and measuring return on investment.” Steve Canale, manager of global recruiting and staffing services for General Electric, understands the importance of employer branding firsthand. During its 135-year history, GE has established a strong company and employer brand that aids its recruitment process. It finished 15th on last year’s Fortune list of most admired companies and third on Universum’s Ideal Employer rankings. “We have a strong competitive advantage on the engineering and technology manufacturing side,” Canale said. “When we mention GE on campus, we’re typically able to get people’s attention. They know who we are.” Canale stressed the importance of developing an employer brand that is truthful and an accurate representation of an employee’s experience. “We’re trying to portray it in reality,” he said. “That is important to us because we don’t want to paint it as something that it’s not just to attract people in the door. We’re trying to position it so we attract the best, who we feel are going to be successful in the company.” That’s exactly where companies with top employer brands succeed, said Angela Hills, executive vice president at Pinstripe Inc., a recruitment process outsourcing company. The company is well known for an employer brand that emphasizes fun at work, whether it’s customer service representatives dressing up in costumes for Halloween or flight attendants rapping the FAA safety regulations. Walters breaks down Southwest’s success as a brand into three branches: • The people: “They are empowered to make decisions that provide outrageous customer service, even if it’s coloring outside the lines of what is normally done.” • The brand: “People want to work for Southwest. Our candidates are our customers. They fly SWA; they see how we treat our customers.” • The recruitment process: “Our brand goes hand in hand with recruiting. We do have a very established intern program and we have great relationships with many different colleges.” — Jeffrey Cattel talent management magazine September 2012 “Organizations that consistently stay on lists like this have a consistency between who they are and who everyone thinks they are,” Hills said. “The cool factor isn’t just the marketing hype. They have a way of aligning their employer brand — their internal employee experience of how it is to work at the organization — and their outward brand.” During the past four decades, Southwest Airlines has branded itself as more than just a low-cost carrier. In recent years, while other airlines have reported record losses and even filed for bankruptcy, Southwest continued to post profits. Its success comes back to the airline’s workplace culture and employer brand, said Sharmon Walters, manager of Southwest’s People Department. www.talentmgt.com 25 How to Extend Employer Branding Online In the ever-expanding realm of social media recruiting, employer branding remains one of the most critical aspects to engage top candidates. Employer branding, however, is more than just how good a company’s website or careers site looks, according to Sajjad Masud, founder of Simplicant, a cloud-based social media recruiting service. “It includes the culture of the company, the responsiveness of the hiring managers and recruiters, attention to the needs of employees and candidates, and a tone that is welcoming to the candidates,” Masud said. Traditionally, these pillars of employer branding have been present in face-to-face interactions with human resource professionals. New forms of social media recruiting, however, allow for a more personalized virtual touch and give candidates a better taste of the company’s culture. The older systems simply asked job seekers to submit an application online. not a surprise that these older platforms are simply not able to provide what employers, recruiters and candidates need in this era dominated by social media.” Simplicant and other next-generation virtual recruiting platforms are attempting to fill a two-decade technological gap. These platforms emphasize an interactive application process and include automated templates that can communicate with each candidate for better engagement. “When the application process is easy, intuitive and interactive, candidates are more likely to go through the entire application form,” Masud said. “Providing an engaging experience and linking it to the employer brand and company culture is one of the many ways a next-generation system can leave a strong impression on the candidates who visit the career site.” These next-generation systems help ensure that potential candidates return to a company’s career site. “Most of the recruiting systems in place today were Visitors can sign up to get notifications when posibuilt 10, 15 or even 20 years ago,” Masud said. “It’s tions open that match specific keywords or applicable résumé experience and skills. Longevity on Fortune Most Admired List, 2008-2012 Next-generation, cloud-based recruiting platforms also allow companies to easily share open positions on social networks such as LinkedIn, Twitter and Facebook. Simplicant tracks the success of each social media recruiting campaign to evaluate which methods work best for each company. Further, the analytics let companies know what colleagues and friends are most helpful in bringing qualified candidates to the company. Wal-Mart Stores McDonald’s IBM General Electric Goldman Sachs Group Microsoft Starbucks Toyota Motor Johnson & Johnson Southwest Coca-Cola Amazon FedEx Procter & Gamble Berkshire Hathaway Google Apple 0 Source: Fortune, 2012 26 talent management magazine 1 2 3 Number of years in top 10 www.talentmgt.com 4 5 “Using social media to source referrals makes the search process fun, cost-effective and a lot more effective for employers,” Masud said. — Jeffrey Cattel “Organizations that consistently stay on lists like this have a consistency between who they are and who everyone thinks they are. The cool factor isn’t just the marketing hype.” — Angela Hills, executive vice president, Pinstripe Inc. Going Local Foot in the Door Rankings such as Fortune’s Most Admired Companies and Universum’s Ideal Employer list tend to favor large, global companies. According to Royal of the Hay Group, which collaborates on the Fortune list, the primary criterion for inclusion is revenue. For Canale at General Electric, the importance of a strong employer brand to get a talented set of potential employees in the door cannot be underestimated. But in the same breath, he said that a focus solely on employer branding oversimplifies the situation. “These are essentially the largest players in the different industry segments that we examine as part of the rankings,” he said. Human resource departments at companies such as GE emphasize early identification programs. GE brings in 3,000 rising college sophomores, juniors and seniors as interns and co-op students for 90-day summer programs. Regional and local companies also work to build employer brands, even if they fail to be recognized at a national level. Consider, Clark Nuber, a certified public accounting and consulting firm. The midsize company based in Bellevue, Wash., won the Better Workplace Award this year from the Association of Washington Business and was named one of the 50 Best Small and Medium Workplaces by the Great Place to Work Institute and the Society for Human Resource Management for three consecutive years starting in 2007. “If we provide good assignments and treat our early identification interns well, they go back to campus and can hopefully become net promoters of GE,” Canale said. “They become brand ambassadors of GE, and that is the most important thing we can do in terms of a recruiting perspective because students believe other students more than they believe their parents or teachers or advertisements or the recruiters.” Tracy White, senior director of human resources at Clark Nuber, said employer branding played a large role in winning the workplace accolades. Further, people in the Pacific Northwest are starting to notice. Following graduation, GE hires roughly 1,000 students in the U.S. each year. More than 70 percent of those students have already had contact with GE through an internship or co-op. “Last week I was out doing errands and I had on a jacket that says Clark Nuber,” White said. “And a person came up to me and said, ‘Oh, Clark Nuber,’ and told me a story about a friend who worked at the company. It’s not uncommon, if you’re around here, for people to actually recognize our brand and know someone who works here.” The enrichment doesn’t stop when employees are hired. GE and Clark Nuber have leadership development programs to help ensure continued success in the workplace. White attributes the success of Clark Nuber’s employer brand to a focus on employees and a willingness to allow workplace flexibility, something you don’t often find at a midsize CPA firm. GE has seven separate corporate leadership programs that hire students into two-year rotations, which involve six-month assignments in a new recruit’s field of concentration. “Students are very attracted to the fact that they can come into a company that’s going to continue to invest in their development and their education,” Canale said. talent management magazine www.talentmgt.com September 2012 “If they have something in their life that has come up, they can take advantage of it,” White said. “It’s not a situation where people have to work 70 or 80 hours a week. They can participate in their children’s activities.” “We always say it’s the employees’ responsibility to manage their career,” White said. “But it’s the firm’s responsibility to provide them with the tools and resources to be able to manage it.” 27 The Strategic Importance of workplace Culture Lizz Pellet culture should be treated like other key performance indicators. The challenge is getting leadership to buy in and elevate culture to a strategic priority. M any company cultures shifted during the past few years’ economic challenges, and the resulting stress has caused fault lines to appear in their cultural framework. But today’s business environment requires that companies understand organizational culture and make it a top priority on the strategic initiatives list. When cultures shift, they often produce a level of discontent with the talent pool that is a breeding ground for frustrated and angry behavior. Cultural fault lines, if not examined and repaired, eventually can lead to unrest among employees, which can be significant to the organization — most notably in a loss of an organization’s best performers. The advent of social media often helps spread negative energy more quickly. This kind of discontent is often a result of significant changes in the organization, such as installation of a new leadership team, a merger or acquisition. These kinds of changes often force top talent to re-evaluate how they feel about working for the organization. Culture, therefore, can no longer be an afterthought or byproduct of leadership’s actions; it must be elevated to a strategic priority. Too often, however, culture is closer to the bottom of strategic concerns, an aspect quickly dismissed if need be because of its reputation as a touchy-feely component of organizational life and business, belonging solely to human resources. The challenge is getting senior leadership to buy into the idea that culture is a valuable asset and should be treated like other key performance indicators (KPI). In some organizations, cultural assessment or transformation are on the strategic initiatives list. However, they are typically identified as tasks or deliverables versus strategies that require a systemic and holistic approach to understand an organization’s identity. September 2012 28 Definitions of organizational culture vary, but essentially it is a collective behavior of humans in an organization, formed by similar values, visions, norms, language, sys- talent management magazine www.talentmgt.com tems and symbols. Culture also may be interpreted as the way people — employees, clients and stakeholders — interact with one another in the organization. A chief executive reading this definition is likely to latch onto the word “stakeholder.” Therefore, that is the lens talent leaders should use when presenting items surrounding culture and culture strategy and importance to senior executives. Organizational culture is created by leaders’ actions, what leaders pay attention to, what gets rewarded and punished and the allocation of resources. No two cultures are the same because no two leadership teams are the same. Particularly when involved in merger and acquisition activity, cultural due diligence should be an imperative to align the executives of both organizations. Ideally, organizations should take the best attributes of both cultures and create a unified front. This isn’t always the case, however. What tends to happen is the acquiring company will impose its culture onto the other. That may be the quickest or most expedient way to move forward, but it’s not necessarily the most strategic. A more strategic approach to merging two cultures would be to leverage the culture of the acquired firm and keep it intact until a cultural assessment can be conducted. According to the Journal of Business Strategy article “The Big Exit: Executive Churn in the Wake of M&As,” companies can expect to lose 21 percent or more of their executives each year for up to 10 years after an acquisition. This suggests culture is especially vital to an organization’s success or failure during an acquisition. Organizations should not wait until they acquire a company before considering how best to transition cultures. On the Web Find out from DJo hr executive Tom capizzi why integrating talent management into organizational culture is essential for global growth at talentmgt.com/materials/view/21/. While venture capitalists are focused on return on investment, there is almost always a conversation around cultural compatibility, because they know the deal can sour quickly and permanently if it’s not properly addressed. including factors like culture. By including cultural and human system fit as part of cultural due diligence, and the impact those systems have on the bottom line, an organization can help to maximize a merger’s true potential (Figure 1). A classic example of this is the merger between DaimlerBenz and Chrysler that created DaimlerChrysler, a deal consummated for $37 billion in May 1998. Nine years later, Daimler-Benz sold Chrysler to Cerberus Capital Management, which specializes in restructuring troubled companies, for $7 billion and lost 80 percent of the deal’s original value. In this instance, it could be argued that cultural compatibility, or lack thereof, contributed to the acquisition’s ultimate failure. Chrysler wasn’t highend like Daimler-Benz; Daimler tried to retain much of its culture after the merger while ignoring Chrysler’s. The firms’ cultural clashes, coupled with a recession — which led to lagging sales — eventually spelled a recipe for disaster for the two firms. For the sake of argument, let’s assume that by including cultural due diligence organizations could mitigate shareholder risk by 25 percent. Again, using the numbers from the previous example, cultural due diligence could have saved nearly $30 billion in losses. It’s safe to say this process wouldn’t have cost even a small percentage of that figure. Why, then, are lenders, venture capitalists and investors not demanding that cultural due diligence be required during the acquisition process? Why do failures like DaimlerChrysler keep happening? The goal is to mitigate as much risk as possible, but it appears there is no standard or defined process to follow. The traditional approach to M&A, some could argue, is outdated by not Talent leaders involved in a merger or acquisition should pay attention to cultural compatibility and conduct a formal cultural due diligence process. Can an organization conduct cultural due diligence before the deal is closed? Yes and no. Talent leaders can certainly become more educated on the culture of the target company. During the letter of intent stage, for instance, the integration team can request data that will provide cultural insights. That might include: • Employeeengagementsurveyresults. • Documentsthatconveythecompany’smission,vision and values. Figure 1: Traditional and New M&A Approaches TRADITIONAL M&A APPROACHES Financial performance • Asset size gain • Pre-tax income (profit) per employee Product and market potential • Product complementarities • Channel structure complementarities • Customer base complementarities Regulatory issues Operational and technical alignment • Market dominance in main product lines • National regulatory bodies’ treatment of proposed M&A Cultural fit Human systems fit • Organizational structure • Executive leadership composite • Values alignment • National culture • • • • • • • Relationships Leadership Infrastructure Employee engagement Communication Change management Finance THE NEW M&A APPROACH $ INCREASED RETURN ON ASSETS September 2012 • Operational assessment alignment and rationalization • Technology platform definition and decision • Integration/transformation to new company operations and technology NEW M&A APPROACH Source: Felix Global Corp. 2007 talent management magazine www.talentmgt.com 29 Cultural Due Diligence at Adreima Connie Perez Private equity-owned health care company Adreima is in growth mode. The organization set out to conduct cultural due diligence, and has since adopted a cultural health assessment process as a key component in its integration strategy. In the competitive outsourcing industry, Adreima has marketed and adopted expertise as one of its core values. In a service business, employee retention is a key factor for success. The company’s previous approach to teach, communicate change and on-board new people would no longer work in a rapidly growing organization. So Adreima looked for better ways to understand employees’ perceptions, concerns and priorities related to culture. With support from the board of directors, Adreima customized its cultural health assessment to reflect its values. The initial survey was launched to create a cultural health baseline and was conducted six months after private equity group Waud Capital Partners bought the company. The results revealed a healthy organization, but identified opportunities for improvement. The data was shared with all employees, which contributed to an increase in response rates in subsequent survey cycles. The leadership team and shared governance council — primarily an employee-led group — worked together to establish priorities and plans based on these results. The data and action plan were shared with the board, and two key performance indicators (KPI) were added — one to reflect an overall health indicator and one related to compliance. Having invested heavily to develop a comprehensive compliance program, the more than 90 percent healthy rating assured leaders the program was reaching front-line staff and that the investment was showing a positive return. Adreima acquired Hospital Inpatient Services in September 2010, doubling its size. The assessment was deployed to all new team members within three months of the acquisition — again, to serve as a baseline indicator of cultural health as well as the initial response to the acquisition. The data illuminated areas of synergy between the two cultures and areas of concern. The assessment also measured employee engagement, which allowed Adreima to plan and prioritize certain areas of the business and for leadership, and the results were communicated in a webinar given by the CEO. September 2012 30 • Performance evaluation templates to determine if there is accountability for employees and leaders to live the values and to quickly assess the level of leadership support for those values. • Thecareersite.Whatisandisnotonthis site is an insight into employees’ daily lives. Acquisitions are inherently risky, and without the proper strategy, mergers can get ugly. Cultural due diligence is necessary in the acquisition process to ensure maximum shareholder value is achieved. This process should be deployed within the first 90 days of the close (Figure 2). Ideally talent leaders should start the process by assessing and defining the cultures through a validated cultural assessment. This allows the organization to: • Preserve the deal and achieve the benefits first envisioned following the acquisition. • Identify ways to take full advantage of the positive aspects of each organization’s culture. • Allow leadership to have quantitative data displaying organizational health by demographics such as leader, location and department. • Designaplantoaccentuatethepositive and eliminate or mitigate unhealthy aspects in both organizations’ cultures. • Identifyunhealthyareasofthecultures that hinder or undermine strategic goals. The entire organization took the next survey cycle in October 2011. The overall health of the acquired company had improved by more than 10 percent within that year. One office with lower initial scores improved significantly, a fact that was met with cheers and celebration by leaders and team members in that organization. After the acquisition of Accounts Receivable Management and Data Services Inc. in January, the survey was completed within the first 30 days to help facilitate team member engagement and establish action plans to be implemented immediately. • Assess areas of employee engagement and disengagement by leader to identify the most effective leaders in both companies. Values gap analysis was an important data point in the survey. Employees respond to the values they would like to experience every day compared to the values they currently experience. During every survey cycle completed, employees chose an “environment of continuous learning” as their top desired experience. Based on these results, Adreima revised orientation and on-boarding processes, established new training programs, reinforced tuition reimbursement benefits and developed new on-the-job training approaches. This activity should be conducted for the entire employee population of the acquired company and not just a statistically valid sample size. The newly acquired employees’ first impression of the combined company should not be one of exclusion — invite everyone to participate. Connie Perez is the chief executive officer at Adreima, a hospital revenue cycle management firm. She can be reached at [email protected] talent management magazine www.talentmgt.com • Create a solid, actionable plan that can be measured and benchmarked over time. Lizz Pellet is vice president, U.S. Group, for management consulting firm Felix Global. She can be reached at [email protected] HUMAN CAPITAL INSIGHTS SUPPLEMENT TO MEDIATEC PUBLISHING INC. SEPTEMBER 2012 E-Learning Are You Learning From Your Learning Programs? As every business leader knows, there are always gaps between your strategic goals and your workforce capabilities. Although training can help bridge those gaps, you must be able to determine whether it is effective and delivers a real ROI for the business. Business metrics and analytics can show the links between training and key metrics such as revenue by a particular sales representative, compliance training by production facility, individual performance, salary increases, retention of high performers and overall career development. Learn more about the value of business-critical workforce analytics and learning in this SuccessFactors article. SPONSOR: E-Learning Are You Learning From Your Learning Programs? Bridging the gaps: Improve performance and deliver a quantifiable ROI A s every business leader knows, there are always gaps between your strategic goals and your workforce’s capabilities. Training will move you toward bridging those gaps, but by itself it’s not enough. One reason that’s true is that training is often managed without the tools necessary to deliver the right training or, even more importantly, to measure the impact of training on the business. How do you know if training is effective? How can you determine whether it delivers a real ROI for your business? Only when you use business Training without the right analytics is like driving without a map. The relationship between learning and analytics is often misunderstood. Typically, when people discuss analytics and learning, they’re talking about reporting within a specific learning management system. But this doesn’t help you make the connection with what is happening in the overall organization, or show you whether the training is having the desired effect. Training without the right analytics is like driving without a map. You know what you want the training to achieve, but you have no idea whether you’re delivering the right solution, whether you’re providing it to the right people, and whether that ultimately has an impact on the business. ANALYTICS SHOW REAL BUSINESS RESULTS The value of analytics is that they demonstrate what real results you can achieve. Effective, data-based insights show the links between training and key metrics such as revenue by a particular sales representative, compliance training by production facility, individual performance, salary increases, retention of high performers and overall career development. The key to successfully using analytics with learning is combining traditional training reporting with business data from other systems. This data is critical to understanding the business impact of training. The first step when developing a training program is identifying the key business issues you’re trying to solve. • Whatareyourcompany’sbusinessproblems? • Cantheybesolvedthroughtraining? metrics and analytics to support your learning programs will you start to see the impact across your business. • Wasthetrainingeffective? • Whatwasthetraining’simpact? SPECIAL SUPPLEMENT SEPTEMBER 2012 By Jeff Kristick Jeff Kristick is the vice president of product sales and strategy for the learning product line at SuccessFactors. He came to SuccessFactors via the Plateau Systems acquisition, where he was senior vice president of marketing. Prior to joining Plateau, Kristick worked at TIBCO Software and Siebel Systems in a variety of senior product marketing and management roles. He received his bachelor’s degree in mechanical engineering from the U.S. Naval Academy and his MBA from the Kellogg School of Management at Northwestern University. WORKFORCE ANALYTICS MEASURE THE IMPACT OF TRAINING and deliver a powerful tool for measuring business performance. The best way to answer these questions is by using workforce analytics to continually measure your company’s performance — and the only way to measure the impact on performance is to incorporate business data and metrics in your analysis. Ultimately, you’ll be able to identify the gaps in your workforce’s capabilities and understand how to bridge them with the right training. Performance will improve across the business and you’ll be better equipped to execute your strategy more efficiently and profitably. The financial business case for analytics and learning is real and significant. When you can fine-tune how you manage your most strategic asset — human capital — it leads to real, measurable results. Workforce analytics give you up-to-the-minute information on the impact of training on your business results. When integrated into a suite of applications with both workforce metrics and analytics capabilities, they can help identify problems and show you how to solve them through training. Plus, analytics provide a transparent way of calculating the ROI across the entire company, not just within your training department. Traditionally, training departments have been measured by how cheaply and effectively they can deliver training. But with the use of analytics against company metrics, you can now measure the impact of training in terms of how much money you’re saving per training dollar — or how much additional revenue you can generate. For example, if you know that your best sales representatives take a certain set of courses that cost $10,000 per person, and those reps generate $100,000 more in revenue than their peers, the decision to send more reps to training is simple. EXECUTE YOUR STRATEGY MORE EFFICIENTLY AND PROFITABLY Workforce analytics and learning are two significant pieces of the entire SuccessFactors solution. Combined, they can provide a tremendous amount of insight for your training department Analytics provide a transparent way of calculating the ROI across the entire company, not just within your training department. In today’s economy, this kind of insight makes you more effective, ensures you get maximum value from your budget and generates insights that in turn create a real and sustainable competitive advantage. To learn more, visit successfactors.com. SPECIAL SUPPLEMENT SPECIAL REPORT: HR TECHNOLOGY Is HR the New IT? Ladan Nikravan As recruitment, on-boarding and development head to the cloud and mobile devices put sophisticated tools into everyone’s hands, hr leaders are discovering that technology savvy and analytical skills are key to effective talent management. L ast spring prospective Fastrac Markets employees had one choice when applying for a job at the gas station. They had to come to the location where they wanted to work and fill out an application onsite. Not only was this time consuming — hiring managers spent their days traveling to stores picking up applications — it was fruitless, because Dave Hogan, the company’s vice president of human resources, knew he wasn’t reaching top talent. Cecile Leroux Vice president, product strategy and development, Ultimate Software “We are moving beyond just giving employees access to data from wherever and whenever to a new era of “consumerization” in HR technology. This means that employees today want the capability to collaborate and get work done using technology like they do outside of the office — in ways that traditional HR technology has not allowed. Expectations are that business applications should work more like consumer apps — think Facebook, Amazon, etc. Employees want simple-to-use, easily adoptable applications that will allow them to interact with co-workers, bosses, even executives.” On the Web For more on hr technology, visit talentmgt.com/ articles/view/3493. Hogan adopted a new, Web-based talent management solution to generate assessments and reports. He said he thought candidates would appreciate the opportunity to apply through their desktops at home, but he didn’t expect the deluge of response. “I’ve had several people come into the store saying they have a question about our application,” he said. “When I look for the Web instruction sheet to give them, they say they know how to do it — they just applied on the phone in the car — they just want to make sure something they submitted was OK.” Hogan shouldn’t be surprised. According to Cisco’s “Visual Networking Index: Global Mobile Data Traffic Forecast Update,” globally, mobile data traffic grew 2.3fold in 2011, more than doubling for the fourth year in a row. By 2016, there will be 1.4 mobile devices per capita — that’s more than 10 billion, which will exceed the world’s estimated population at that time of 7.3 billion. Figure 1 Timeline of HR Technology Evolution On premise Early 2000s: Best of breed talent application: 1990s: Transaction automation: HR is largely focused on automating core HR, benefits and payroll transactions. This period is marked by the “elimination of paper.” 1990 HR begins focus on deploying best-of-breed talent management applications and automating singular processes — performance and compensation. 1995 2000 Late 1990s: Continued transaction focus: September 2012 34 HR extends its transaction focus and tracking capability largely in recruiting and learning. Talent management begins to take shape via Word, Excel and PowerPoint. HR-centric Source: Knowledge Infusion, 2012 talent management magazine www.talentmgt.com SPECIAL REPORT: HR TECHNOLOGY Thanks to this trend, when it comes to mobile workforce management technology, the days of pen, paper and spreadsheets are practically history. Employees once flustered by bureaucratic tasks can accomplish wonders from wherever they like. Managers plagued by scheduling and time-off requests can approve or deny dozens in a matter of minutes. “In the past, HR has been responsible for certain administrative activities and compliance,” said Jim Holincheck, vice president of services strategy and marketing at software provider Workday. “Those responsibilities never go away, unless they are outsourced. Technology, however, has been a great enabler for reducing the effort and cost associated with administration and compliance. HR has moved from focusing on efficiency to effectiveness.” Mobile Builds a Brand By adopting mobile technology for HR processes, employers can boost service levels, employee satisfaction and productivity rather than dealing with administrative frustrations. “You build brand loyalty by being relevant to employees’ lifestyle,” said Nate DaPore, president and CEO of PeopleMatter, a talent management software provider. “If you look at the traditional talent management system, most employees only use [it] several times a year: when they’re hired, when they need to look up benefit information, when they’re forced into training or performance management. Talent managers need to find a way to get employees back into the system day to day. Using a platform like mobile is a start, but you need to do something unique to have your app next to Facebook, Twitter and email.” One of PeopleMatter’s apps, Schedule, is an online employee scheduling system that allows hourly employees Jason Corsello Vice president of corporate development and strategy, Cornerstone OnDemand “Technology strategies are no longer being driven by IT departments; rather, they are being driven by what employees need, want and expect in order to get their jobs done using technology from their everyday lives. This includes social, mobile and cloud technologies. While social and mobile are the channels through which employees, managers and business leaders engage with learning and talent management tools, the cloud is the catalyst that brings it all to life. You can’t realize the promise of these other technologies without it. As a result, HR is becoming more real-time, with traditional processes evolving into living, breathing, ongoing interactions.” to view schedules, request time off, trade shifts and communicate with others from their smartphones. The PeopleMatter platform also includes Hire and Learn, which give employers the ability to manage all of their applicant tracking, hiring, on-boarding, training and scheduling online within a single system. “You have to provide a vehicle to continuously drive the employee back into the system,” DaPore said. “A schedule is the trunk of the tree for employees; they want to access that information immediately and have it in their back pockets. Benefits, policies and procedures are branches of that tree, but the hours they work are most important, and that’s how you can pull them into everything else.” When it comes to benefits, many consumer-directed health care programs enable participants to view account information, upload receipt images and file claims from their mobile devices. HR leaders hope making this functionality more convenient might improve engagement in their health and health care. Cloud 2010-2012: Unified HCM: HR continues to drive toward unified process and technology and begins to enable user experience and process connected to its core HR system. 2005 Mid- to late 2000s: Talent management suite: 2010 2012 and beyond: Unified workforce experience: HR looks beyond systems to deliver a unified workforce experience by combining knowledge, collaboration, analytics and transaction into a personalized employee experience. September 2012 HR begins to understand the value of integration and looks to the talent management suite as the solution. Organizations begin to combine more than one process under a single-vendor technology. 2015 Workforce-centric talent management magazine www.talentmgt.com 35 ADVERTISEMENT 6HOHFWLQJ+LJK3HUIRUPHUVLQ+LJK7HFK CASE STUDY: Manufacturer Saves Millions Through Improved Hiring Decisions F or Littelfuse, an innovative $600-million company with the premier circuit protection brand worldwide, finding committed, attentive and driven employees is an ongoing process required to uphold its global leadership position. Continually raising the standard comes with every job. To meet the challenge, it relies on a web-based, referenceassessment solution that incorporates over 30 years of research in job competency modeling. The solution has had a dramatic impact on the company’s recruitment efficiency and hiring quality. The Situation: So Much Required, So Little Time From offices in over 28 countries, the 5,000 employees of Littelfuse deliver products that are found in virtually every product that requires electrical energy, from automobiles to computers to industrial equipment. Yet, only in the past few years has Littelfuse raised its level of sophistication concerning its reference-assessment process. “It’s fair to say that we hadn’t been doing the best job of reference-checking,” said Holly Stanton, human resources director for global talent and the Americas, at Littelfuse. “On rare occasions we found someone willing to tell us something about a candidate that actually made a difference. But, often we couldn’t justify time spent on reference-checking because it yielded little more than standard employment information.” The Solution: A Broader Reference-Base and Better Data Upon discovering the automated survey process, Littelfuse tested it internally, then piloted it on an actual applicant. After those initial trials four years ago, the company adopted the solution for a full range of positions across all functional and professional levels in the United States, Canada, Mexico, China and the Philippines. It has never looked back, and internal feedback from hiring managers has been consistently positive. The method involves having the candidate send his or her references—managers, peers, subordinates, and business partners—an electronic survey that contains approximately 20 questions. And, because the questions are specific to particular types and levels of positions, they pertain to the skills and behaviors that correlate with day-to-day success on the job. References respond because the electronic format is easy and because the e-mailed invitation comes directly from the candidate. Since sources are released from legal liability and know that their responses will be aggregated and not identifiable, they are candid in their assessments. “Our managers are amazed at the kinds of references people give, especially as we see a lot more negative references than we had expected,” Stanton said. “This may be, in part, because we had historically requested only two or three references. Our current system is set to require a minimum of five, two of whom must be managers. Candidates have had to broaden their reference-base, which tends to produce more revealing information.” The tool produces a report that displays easy-to-read bar graphs revealing a candidate’s scores. “When a candidate scores low—and sometimes horrendously low—across most statements, it’s obvious we don’t have a match,” said Stanton. “Because we’re looking to hire the best, even if someone’s report shows low scores in just one area that’s critical to the job, we continue looking.” Quality Selection Yields Measurable Results Clearly, the process is efficient. However, Littelfuse considers the true value to be in how the system influences the company’s hiring choices. Since adopting the process, Littelfuse has avoided hiring about 48 low-scoring candidates—candidates who might have otherwise been hired only to become poor performers. At an average annual salary of $83,000, this represents nearly $4 million in wages that could have been spent on employees the company did not want to retain. Statistics on usage for Littelfuse reveal the strategic impact that HR can have on operations and quality-of-hire: s 50-percent of the 416 reference assessments provided were from managers s 5 references responded per candidate s 89-percent of those references who were contacted responded s The reference response time was less than one day s 12-percent of candidates received scores showing “great developmental need,” providing insight into whom not to hire “It’s the behavioral-based questions that provide the assurance we need,” Stanton said. “There’s no doubt that we’re making better-quality decisions, and we also feel that the objective feedback reflects better on the integrity of our selection process. It not only helps us identify the most optimal future employees, it also speaks well for the company.” www.SkillSurvey.com/tm s Phone: (610) 947-6300 What Would His References Say? Gathering reference information often takes too long and yields limited information about a candidate’s past performance. What if you could: • avoid the lowest 10-15% of your new hires through behaviorally-based screening questions (Quality) • increase recruiters’ productivity by getting feedback from 5 references in 2 days (Efficiency) • gain 3 passive candidates per hire by capturing reference responder’s contact information in a searchable database (Sourcing) • be audit-ready with the click of a button (Compliance) Find out how over 500 leading companies, including Fortune 1000 firms, are doing this every day. (610) 947-6300 • [email protected] • Watch the video: www.skillsurvey.com/tm These leading organizations use online reference-checking: SPECIAL REPORT: HR TECHNOLOGY “Technology-driven innovation is transforming all business processes in a short amount of time,” said Daniel Burrus, author of Flash Foresight: How to See the Invisible and Do the Impossible. “We had customization in the past, but mobility is leading to personalization. That means there are opportunities for us to grow our careers and grow our businesses when we work together, collaborate and communicate in new ways.” Eric Lochner President, global talent management, Kenexa “Technological advances in systems are enabling HR professionals to link informed workforce decisions to positive business outcomes. Workforce data centered on employee profiles, hiring needs, competencies, goals, performance, succession, compensation and other areas is now easily available, and can be harvested and analyzed to provide greater insights and actions needed for HR professionals to do their jobs better. These tools allow companies to fill voids in the workforce, reduce risk and plan for the future.” No More Silo While many talent managers have realized integrating talent management tools, content and processes delivers consistent messages to employees, many leaders remain confined within internal organizational silos. Technology is changing this. More leaders have to work in knowledge teams with marketing and IT to introduce employees to new tools and technologies. “Consider this HR 3.0,” said Jessica Miller-Merrell, CEO of Xceptional HR and author of Tweet This! Twitter for Business. “Up until early this year, talent managers would most often send out a company memo that said: ‘Come to a meeting at 2:30 on Tuesday to learn more about the employee benefit process and how it works on the intranet.’ Now you’ll get a company memo, but it’ll be a push notification to your mobile phone guiding you to an interactive video on how to access the employee benefit information on your company’s app.” September 2012 38 According to Holincheck, this trend means HR has a greater say in its technology destiny. Subscription licensing for software as a service products allows HR to purchase products out of its operational budget rather than through a capital budget that undergoes deeper and broader scrutiny. However, IT often still needs to be involved to integrate new technology with other products. talent management magazine www.talentmgt.com Burrus agreed. He said in the past, IT kept to itself and HR kept to itself because the relationship was cooperative, not collaborative. HR can increase the value it brings to the organization because of technology, but that means HR leaders need to know what technology can do. “There’s a new level of communication and collaboration between tech people and people dealing with culture, training and education,” Burrus said. “In the past, IT folks were kind of like plumbers. They made sure everything was hooked up, everything worked, everyone knew how to turn things on and off, and that HR technology was secure with no leaks. “Today, with hardware and software as a service, we have on-demand IT, which is transforming into what we always wanted IT folks to do, but they were too busy to do, which is to help us use technology to gain new competitive advantages and apply it in new and powerful ways. Through this we are transforming how we sell, market, communicate and collaborate with each other. HR is involved in all those things, but now so are IT and individual departments, daily. HR is restructuring companies; it’s transformative because of mobility.” Chris Leone Senior vice president, applications development, Oracle “Technology trends such as social, mobile, big data and the cloud are creating a fundamental change in how employees and HR create value and relationships within the networked organization. Each of these individually affects work, the employee and work culture — collectively they are a formidable force of change within the HR landscape. Technology today can provide deep workforce insight with benchmarks that can help HR and business leaders make intelligent hiring and talent decisions all linked to business metrics.” Technology Is No Panacea According to Ted Elliott, CEO and founder of talent relationship management product provider Jobscience, people forget that technology is only a tool, not an end in itself. Older workers bring the hard-wired experience — or what freshly minted MBAs may call pattern recognition skills — that younger workers are still developing. SPECIAL REPORT: HR TECHNOLOGY “Realize that even if an employee is in a very nontechnology-related job, there is and will always be a technology component to almost every job in an organization. Providing training and ongoing support is a key for success and future development of those employees.” — Warren Laughlin, human resources vice president, Longmont United Hospital “Companies cannot do without experienced employees,” he said. “Instead of worrying about whether older workers can keep up with new technology, we should demand that IT only deploy technology that all employees can use. If only experienced workers can figure out how to use the technology, it’s not good for the business.” Miller-Merrell suggests that HR leaders teach employees about mobile HR technology and its progression of use via social networks such as Facebook, Twitter and LinkedIn. “We need to spend a lot more time than we already do talking to our employees about how these tools can and should be used,” she said. “It’s about more than ‘Here’s our mobile policy, here’s our social media policy, and here’s our flex-work policy.’ We need to explain the what, how and where of these tools and how they can benefit the company and employee when used.” Talent managers have to work hard to make sure all new technology is intuitive. Most busy employees don’t have the time or attention to learn new software. IPads, iPhones and their rivals will continue an aggressive march into the workplace and the HR department. It’s a talent manager’s responsibility to make sure technology for these platforms and others can be learned quickly and is an asset to the business. “We see growing adoption of talent management applications. However, much of the adoption has focused on automating traditional processes,” Workday’s Holincheck said. “This is valuable, but adopting talent management technology does not mean your organization is managing talent more effectively. It is the garbage in equals garbage out phenomenon.” “My optimistic view of the future is that HR embraces its business partner role and gets beyond the perception of other business leaders that its primary role is administration and compliance,” he said. “People coming into HR roles will hopefully have broader business experience and more analytical skills. “HR will discover that analytics are a key tool for solving the garbage in, garbage out problem in talent management, and emerging technologies around mobile, social and analytics — delivered in the cloud — will become tools the HR professional uses to instill culture, drive change and facilitate work in the organization.” Andrew “Flip” Filipowski CEO, SilkRoad Technology “Companies need better insight into how employees and trends drive business. Social talent management allows just that by mapping and measuring relationships, influence and knowledge across the organization. It changes the way employees communicate with each other by mirroring the way they’ve become accustomed to social networks. It changes the way employees learn by leveraging both traditional and informal learning gleaned from a shared knowledge catalog of employees. It removes HR from its traditional siloed-employee approach to talent management to one that fully engages and understands employees and everything around them.” talent management magazine www.talentmgt.com September 2012 Holincheck said companies can have the best talent management technology and the best talent processes in the world, but if they have not identified the correct competencies for the job, set the right goals or identified the appropriate development items, it does not matter. Likewise, if a leader has great talent management technology and talent processes but managers who do a poor job of communicating with employees, the company will fail. 39 profile by Kellye Whitney Robb Webb: hyatt Culture Guru Long employee tenure is common at Hyatt — a testament to the organization’s cultural strength and HR strategies that focus on internal employee development and engagement. Serendipity often plays a role in how the course of a life plays out. For instance, Robb Webb, chief human resources officer for Hyatt Hotels Corp., never set out to work in HR. In fact, he didn’t really plan anything. His career trajectory was almost shockingly random, one lucky appointment after another. Webb said part of the skill set that enables HR leaders like him to have that seat at the table is being Canadian. He said it relatively tongue in cheek, but said it’s important to understand and appreciate diversity in a new culture. When he moved from Citigroup to Hyatt, his first task was to understand the hotel business. It began during college. He went to a government center in his native Canada to ask for help finding a job. The woman who waited on him said, ‘You look like a nice person. Why not come work for us?’ He applied and ended up helping other students find jobs. “If you’re going to drive change, it’s better to drive change from within,” he said. “I remember flying to Australia and reading in a book: Change is a door that can only be opened from the inside. There are a lot of people that stand outside the door pounding on it, throwing hand grenades, battering rams and the door doesn’t open because you have to do it from the inside.” After college he worked for the United Way, where he later caught the attention of an executive for Westinghouse Canada Ltd. who hired him away to work in HR. Nine years later, he moved into the financial services industry as an assistant vice president. After a year, his employer offered to move him to the company headquarters in California. Here Webb said his wife gave serendipity a push when she suggested he go for it. After a decade, the company was acquired by Citigroup. Webb stayed, and made more geographic moves up the career ladder before landing at Hyatt five years ago. There’s a common thread in Webb’s career: At each stage someone recognized something in him that they wanted for their own organization, then lured him away to the next opportunity. For instance, in the mid-90s while he was living in California, over a long dinner at an offsite meeting with his boss and the fellow who would run the company’s newest venture in Hong Kong, another opportunity dropped into his lap. September 2012 40 “We were discussing who could coordinate the setup and launch of the company. I turned to [my boss] and said, ‘If there’s nobody else, I’d be interested in doing it,’” Webb said. “He put his wine glass down and said, ‘That only took four hours. I was waiting for you to say that.’ I said, ‘But I’m the HR guy; I shouldn’t be the guy who’s opening up companies,’ and he said, ‘No, you’re Robb, and you’re actually the guy with the skill set that we need to open the company; don’t limit yourself by what your title says on your business card.’ It was a fascinating experience.” talent management magazine www.talentmgt.com The Hyatt culture was already strong when Webb came on board, evidenced by the long tenure of many of the company’s employees. He’s a rookie compared to the 30-plus years many of his peers on the executive committee have been with the company. But just as customers won’t come back to buy products or services from a company that doesn’t meet their needs, employees won’t stay with a company unless they feel valued. With more than 90,000 people working under the Hyatt brand in 46 countries, Webb and his team provide an experience where each individual can achieve his or her full potential and feel engaged with Hyatt and its business. Culture is key in that process. As Webb said, one can buy nice sheets, great furniture and art work when setting up a hotel, but people decide whether to return because of the human component. “I think it was Warren Buffett who talked about the moat around your company — how big, how deep, how wide is the moat in terms of keeping competitors at bay,” he said. “The most lasting strategy to extend and deepen the moat has to do with human capital. It’s also the most difficult to copy. If a competitor looks and says, ‘Wow, Hyatt’s got all this tenure, they’ve got great culture’ and so on, ‘Let’s go hire a couple of Hyatt people, and we’ll have that culture,’ knock yourself out. It’s not going to happen. If it was that easy, everybody would do it.” Webb said there are several building blocks that contribute to the company’s talent strategy. Global en- gagement is one piece — not in the sense of the annual survey, but in a 365-days-a-year context. “We’re now coming up on five years of measuring and talking about engagement, and that’s been a small but important way to give people a common language to talk about what people expect at work,” Webb said. Development is another piece. Last year he launched the first Hyatt Leadership Forum, custom designed after a year of interviewing people to identify goals so that participants will come away with a broader business perspective as well as things that are immediately relevant to their careers at Hyatt. Leader is in the program title, but the program is for all employees. Development also acts as an engagement tool. Hyatt partnered with Gallup to develop a methodology and instrument to measure engagement. The tool has 12 questions, which makes it more likely that a general manager, for instance, will remember and use it to recognize others’ contributions more frequently. “It isn’t a program,” Webb said. “We think of engagement as small e, not capital E — that it’s just the way we behave. It’s who we are as a company. It’s part of our people brand. Guests have a guest experience with us; employees should have an employee experience with us.” in growth areas such as Asia, Europe and the Middle East. For instance, to ensure that a new hotel in Vietnam has the feel, employees and values that matter to Hyatt while simultaneously opening 10 other hotels in the region, Webb and his team deploy “carriers of the Hyatt DNA” to open the hotels. Then, with the right recruitment and selection mechanisms in place — and a brand that promotes the company’s philosophy on growing the best leaders in the industry — the company can attract people who share Hyatt’s values around respect, PROFILE continued on page 48 talent management magazine www.talentmgt.com September 2012 In addition to its impact on the employee experience, culture also plays a significant role in how talent leaders develop the company’s global brand and properties ©2012, Nic GourGuechoN “If I ever heard anyone say, ‘Am I on the list?’ my answer is ‘Yeah, if you work here, you’re on the list because everyone is on the list,’” Webb said. “Everyone at every level of the company has an opportunity to develop somehow, and depending on what you do, who you are and what your interests are that will look very different.” 41 insight by Ladan Nikravan Does education Pay? Harvard professor Richard Freeman and Northeastern University’s Andrew Sum say earning a degree has benefits, but they disagree on what those are. There’s a lot of controversy about the value of college education as more indebted, degreed grads are stuck on their parents’ couches. With unemployment for new graduates lingering around 9 percent, many are questioning the value of higher education and whether it’s still the golden ticket to a good job. Talent Management spoke with Richard Freeman, professor of economics at Harvard University and co-director of the Labor and Worklife Program at Harvard Law School, and Andrew Sum, director of the Center for Labor Market Studies at Northeastern University, on their contrary views about the value of a college education and what it means for talent managers. Richard Freeman How important is a college education in today’s working world? Freeman: On average, college education is more important than it was in the past, but you can succeed greatly without one or without graduating with a college degree. This may seem paradoxical but it has an easy explanation. The difference in the average earnings of all college graduates compared to non-graduates has gotten large, and graduates have much lower rates of unemployment than non-graduates in the current job market. But there is much greater variation around the average experience for graduates and for non-graduates; many persons who do not have a college degree earn more than those who do. If you do not go to college but get a job in a firm that promotes from within or get into a small business that is growing and that offers workers chances for ownership stakes, you can succeed famously. You will learn more from your job experience than most graduates learn in college. It is the learning experience and skill acquisition more than college education per se that today’s working world wants. Sum: On average, college graduates will do considerably better than any young person who does not go to college after high school. The problem is the rewards for going to college have become fairly perverse over the past few years. There’s a lot more uncertainty attached to your ability to do well, although you could reduce that uncertainty by majoring in particular fields and doing particular things for yourself while you’re still in school. I still expect, on average, you will find a sizable differential that will prevail for the average college grad. When labor markets are weak, employers will increase their demands for a job. When we were interviewing call centers a couple years ago and looking at who they were hiring, many were hiring kids with a college degree. Clearly the job doesn’t require anything like that. When we would speak to the employer and ask why he or she was hiring people with degrees, the response was, “Because I can.” This problem we have in the U.S. Education Level and employment Median Annual Income Age 25 to 34, by Education Constant 2009 dollars September 2012 42 14% $50,000 College Graduates $40,000 $30,000 High School Graduates $20,000 12% 10% 8% 2% 1980 1985 1990 1995 2000 2005 2009 Source: Bureau of Labor Statistics, 2010 talent management magazine www.talentmgt.com High School Graduates 6% 4% $10,000 $0 Unemployment Rate For Adults Age 25 to 34, by Education 16% $60,000 0% College Graduates 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 is even more intense in Europe. It’s not enough to just generate the supply of college graduates; you’ve got to guarantee there will be a demand there to absorb it. Since we’re not generating many new jobs, new people trying to make it in the labor market are most adversely affected. You can try to influence demand — we’ve done this in the past with other programs — by giving employers tax Andrew Sum credits for hiring college graduates. I say we have to say, “If you end up hiring an unemployed BA degree person, for the first year we’ll subsidize your wage up to this amount” — in the past it has been up to 30 or 40 percent. This gives an incentive for employers to put more people on their payroll. We subsidize energy, we subsidize R&D, we subsidize capital investment, but we don’t do much subsidization of workers’ wages. Large numbers of people are unable to get jobs in their field; we have to do the best we can to go out and make jobs for them. what does this mean for HR leaders? Freeman: HR should be looking for people who have some skills and want to learn more and have initiative in using skills. Now, there is no good app for linking huge databases of resumes or other data to winnow down large numbers of applicants to the right few, but some such apps will be coming. There is too much data and analytic techniques from computer science and physical science for HR and talent managers to go by seat of pants or gut. The sports teams — NBA, baseball and so on — have shown what one can do with data to better link skills to job roles. You cannot simply pick people on the basis of their majors or whether they have the “right” degree or not. The creative English major has a reasonably high chance to be better than the accounting major or engineering major on a real job. I would look for people with majors/minors or double majors and some devotion to extracurricular projects. The key issue is how to get a nation that wants to increase the college graduation rate to world highs to pursue policies that will give an economic incentive to employers and students to put these graduates to work and have colleges train them to be prepared for such positions. Degree Holders and Unemployment About 1.5 million, or 53.6 percent, of bachelor’s degree holders under age 25 last year were jobless or underemployed, the highest share in at least 11 years. In 2000, the share was at a low of 41 percent. Out of the 1.5 million in the job market, about half were underemployed, an increase from the previous year. Source: Northeastern University, Drexel University and the Economic Policy Institute, based on the U.S. Census Bureau’s Current Population Survey and U.S. Department of Labor data talent management magazine www.talentmgt.com September 2012 Sum: There are some instances where I could foresee spot shortages. If this happens, HR leaders will have to be involved in working with universities and on-thejob training to get all the help they need. If the labor market stays weak, talent managers will continue to have a lot of choices when it comes to hiring. It varies a lot by occupation and by area of the country. Either way, HR leaders need to work with universities to get young people acquainted with their firm. Give them work while they’re in school so they’ll retain loyalty when they graduate. There are certain skills you can learn on the job, that’s true, but for certain jobs upward mobility will be enhanced by going to school and improving your ability to acquire skills to move up. Even to be trained on the job, the more education you bring with you, the more likely a company will spend to train you. 43 dashboard by Halley Bock three best Practices employees Crave Talent leaders can prevent best practices from turning into worst practices by creating and sustaining a positive work environment. In theory, best practices bring positive results. The intent is to use them to simplify processes, improve quality, save time and provide a consistent framework within which talent can efficiently operate. Organizations create best practices to support employees and help them succeed. However, a 2012 Fierce Inc. survey titled “Workplace Practices: What Role Do They Play in Your Organization?” finds there is often a disconnect between an organization’s well-meaning best practices and their impact on talent. Of the nearly 800 corporate executives, employees and educators across the finance, health care, retail, aerospace and defense sectors who responded to the survey, 44 percent claim their company’s best practices hinder employee productivity and morale. Forty-seven percent report their organization’s current practices consistently get in the way of achieving results. This means long-accepted best practices are failing to address the issues they were intended to fix and instead escalate problems and limit performance. •44percentofrespondentsclaim their company’s best practices hinder employee productivity and morale. •47percentreporttheir organization’s current practices consistently get in the way of achieving results. Source: Fierce Inc., 2012 September 2012 44 Three practices can create and sustain positive, productive work environments, and have the added benefit of giving talent management clear insight into what employees want: corporate transparency, individual autonomy and organizational responsiveness. These three practices are also tools organizations can use to ensure best practices remain relevant and do not devolve into worst practices. Seventy-nine percent of survey respondents identified one or more of these talent management magazine www.talentmgt.com three practices as the top ones that consistently improve their organizations. The Need to Be Clear According to the Fierce survey, some 50 percent of respondents identified lack of company-wide transparency and too little involvement in company decisions as key areas of concern. Nearly 50 percent selected lack of transparency as the top practice holding their organization back, while 25 percent were concerned that decisions were made behind closed doors or information is only disseminated on a need-to-know basis. Transparency into how and why decisions are being made is no longer optional in the modern workforce. Because of the last 20 years’ economic roller coaster, including the Enron scandal, the mortgage crisis, even the recent Facebook IPO, lack of transparency and closed-door discussions are increasingly equated with dishonesty, corporate greed and corruption. Talent management can rebuild trust within the workforce by shifting the way in which employees access information and participate in the decision-making process. For example, increasing the flow of information and consistently reporting to staff throughout the year as to the organization’s overall health, strategy and goals will engender trust. Most employees would rather participate in the good and bad news than have management protect them in an effort to avoid demoralizing talent. Given the speed of modernday communication, it is only a matter of time as to when the news — good or bad — is posted, emailed or tweeted. Organizations must take steps to ensure they are the messengers; otherwise negative impact on morale is likely. Further, management should actively involve talent at all organizational levels in the decision-making process. There was once a widely held belief and expectation that managers and leaders would have all the answers and make the calls. The expectation of today’s talent is for leadership to seek out diverse opinions and engage staff so that decisions are well informed while providing insight into the process used to arrive at the decision. Give Them Some Power Fifty percent of respondents identified the most beneficial practices as those that encourage accountability, development and individual empowerment within SURVEY RESULTS Nearly 50 percent identify lack of company-wide transparency and too little involvement in company decisions as key areas of concern. Nearly 50 percent selected lack of transparency as the top practice holding their organization back. 25 percent are concerned decisions are made by management behind closed doors. 25 percent dislike that information is disseminated on a “need-to-know” basis. Source: Fierce Inc., 2012 an organization. In their book, The Handbook of SelfDetermination Research, authors Edward Deci and Richard Ryan found employees have three basic desires when it comes to work: competence — a strong understanding of their work; autonomy — the ability to decide what they do and how they do it; and relatedness — the ability to engage with others through the course of their work. Organizations that address these needs experience higher retention levels, and job satisfaction increases because employees do not feel constantly monitored by controlling supervisors and co-workers. down corporate silos and improve the overall quality of decisions throughout the organization. Through workforce training, HAVI Global Solutions developed a common language and toolset to increase collaboration, leadership development and an autonomy culture resulting in smart risk taking. Through coaching and the development of clear roles, employees have begun to trust their own instincts. They are now more independent and proactive, bringing solutions, rather than problems, to their discussions with management. talent management magazine www.talentmgt.com September 2012 Talent managers can shift past paradigms where Here’s What We’ll Do autonomy was given exclusively to higher-level em- A dichotomy exists between an employee’s willingployees by offering increased autonomy at all levels. ness to provide feedback about best practices and an organization’s willingness They should start by defining clear to respond. Seventy perdecision-making responsibilities what Employees want cent of survey respondents with employees so they understand said they would candidly which decisions are theirs to make, 1. Transparency approach decision makers which need to be jointly made and within their organization if which should be passed to oth2. Autonomy they felt a company practice ers. Providing clarity empowers needed to be re-evaluated individuals and creates roadmaps 3. Responsiveness or adjusted. However, of for professional development and Source: Fierce Inc., 2012 those who reported limited opportunities for employees to rebenefits from their organiquest more responsibility. zation’s practices, less than Unlike best practices, autonomy offers employees the one-third believed their company was willing to change freedom to employ creative problem-solving skills and practices based on employee feedback. strategic thinking while avoiding the group-think trap. When employees are entrusted to take on challenges, In an effort to support transparency and provide a they are often fully engaged in outcomes instead of continuous feedback loop, talent management should create regular touch points to extract ideas and opinions blindly following protocol. from the workforce while keeping employees abreast For example, HAVI Global Solutions, a global packaging of what the organization is doing with the informaand supply chain company, invested in problem-solvtion. Leaders should consider scheduling monthly pulse ing training for its employees, with 95 percent of the checks with employee teams and recognize individuU.S. workforce and 75 percent of international employals for their input, or think about organizing quarterly, ees having received training thus far. Its goals were companywide or division-wide meetings, and make to develop more organization-wide transparency and inclusion among its business units, as well as break DaSHBOaRD continued on page 48 45 application by Neil Costa Virtually engineer top talent Problem: A123 Systems’ Energy Solutions Group had to quickly create an influx of fresh engineering candidates to support an expansion. Solution: The company implemented a digital recruitment advertising campaign to drive qualified candidates to an onsite career fair and created a communication loop for candidates and recruiters to engage before, during and after the event. In February, A123 Systems, a lithium-ion battery and energy storage systems developer, planned and publicized its first career fair at its facility in Westborough, Mass., where its Energy Solutions Group (ESG) operates. The company’s objective was twofold: quickly recruit a large pool of engineering candidates who matched the attributes of a dozen hard-to-fill positions, and try new recruitment marketing methods using the most current online marketing channels. A123 Systems’ products call for highly skilled employees with specific work experience and skills. This year, the ESG is rapidly expanding as demand for its products in the electric grid, telecommunications, IT, military and other markets grows based on the country’s increased interest and investment in environmentally friendly power choices. The division is also expanding its portfolio of grid storage products, which help integrate renewable power sources such as wind and solar into the existing electric grid infrastructure. Thus the company was seeking more talented engineers to develop products and bring them to market. Its human resources team needed to engage experienced technical engineers and build its pipeline of recent graduates for entry-level positions. Attracting Better Candidates Career fairs and open houses are old-fashioned, but they are still effective sourcing and hiring tools because they showcase a company’s most valuable hiring assets — its people and its culture. In the past recruiters relied on newspaper and radio advertising to drive career fair attendance. These one-way marketing channels did not allow recruiters and candidates to communicate before the event. September 2012 46 Now, using the most current online marketing channels available, recruiters can reinvigorate in-house career fairs. After deciding to host an onsite career fair, A123 Systems asked HireClix (Editor’s note: The author works for this company), a digital recruitment marketing agency, to help promote and market the event. talent management magazine www.talentmgt.com Get Started To begin targeting passive job candidates on Facebook or LinkedIn, companies need three things: • Somethingtopromote,suchasacorporatecareer page, job openings or a career fair and a landing page to communicate the details. • A description of who they want to reach by job title, geography and skills. • Asocialrecruitmentadbudget.Onlineadvertising channels provide flexibility so advertisers can spend from $10 to $1,000 per day. There are many options, and the point of entry is low. Certain sites have a tool to help employers build social media ads. Facebook: www.facebook.com/business/ads/. LinkedIn: www.linkedin.com/ads/. These walk the employer through a step-by-step process to build an ad and identify which profile pages to display the ad on based on the desired location, demographic and candidate’s interest. The company controls the cost it pays for each ad by bidding on the maximum cost to pay per click and setting a cap on the daily budget it’s willing to spend. — Neil Costa “We were looking for a focused approach that targeted specific candidates — primarily engineers who graduated from a technical school, have 10 to 15 years of work history and power supply experience,” said David Pantano, vice president of human resources for A123 Systems. “We have dabbled in social media, but we don’t use it to the best of its ability. We don’t have the expertise within our in-house HR department.” HireClix developed and executed a recruitment marketing campaign using online digital marketing channels. Using Facebook, LinkedIn, Google and targeted banner advertising on websites, the team was able to target passive and active job seekers as well as recent college graduates and experienced professionals. This digital approach had a number of advantages: • Witha$20,000budget,arecruitmentadvertisingcampaign targeted candidates with the education and work history A123 Systems wanted. • Because attendees registered online, recruiters could screen candidates pre-event to prioritize onsite interviews, schedule pre-event phone interviews and anticipate attendance. • Flexible online advertising allowed the team to increase spending in top-performing channels. • Steppingoutsidetheboundariesofanonlinejobboard and direct sourcing, the campaign attracted new candidates, rather than the same people who show up through direct sourcing. The Right Education and Work History To start, the team created an online registration page using Eventbrite, an online service where people can post, share and join events for free. The page allowed candidates to RSVP in advance for the career fair and A123 to collect contact information for candidates. The registration page also encouraged candidates to submit their resumes through the A123 career site in advance so recruiters could review their experience and prioritize them for onsite interviews. Facebook’s more than 800 million global users make it a valuable platform with which to target recent college grads and experienced engineers. A123 reached both types of candidates by sponsoring payper-click Facebook ads that started promoting the on-site career fair six weeks before the event. The Facebook ad featured A123 branding, information about the career fair and a link to the Eventbrite page where candidates could RSVP. Pay-per-click ads were displayed on Facebook profiles of students majoring in engineering at six universities with strong engineering programs. For example, students from the class of 2012-2015, studying an engineering discipline at Massachusetts Institute of Technology, Worcester Polytechnic Institute, University of Massachusetts and Cornell saw the ads. Test engineers at A123 Systems use custom-built test stations to “The beauty of the marketensure quality at all levels of the ing campaigns was that we manufacturing process. were sure to get qualified candidates to the career fair, and we did,” Pantano said. Courtesy of Bill Truslow Photography “The ads drove candidates to pre-register; our recruiters were able to identify the most qualified candidates before they arrived at the event. “That allowed us to triage the job seekers to the appropriate hiring managers and interviewers, which made the event run very smoothly and efficiently. We were able to devote more one-on-one time to the most qualified candidates and get a sense for the people we couldn’t hire immediately, but who would potentially be a fit for future job opportunities.” Registration Provides Predictability In total, the online marketing campaign motivated candidates to visit the career fair registration page on Eventbrite 4,500 times. Thanks to online registrations, by the time the career fair began, 160 candidates had registered to attend at A123 Systems headquarters. Members of the A123 human resources team from each of its three Massachusetts offices were on hand to work the event. As candidates arrived, they were paired with one of four technical recruiters, 12 hiring managers and engineering team members for interviews or conversations over food and beverages. Sixty-five potential candidates were interviewed at the fair, and an additional 25 interviews were conducted after the event. Two offers were subsequently made that resulted in one hire. Three candidates who attended the career fair are still actively in the interview process. “The most unique aspect of the digital marketing campaign was the ability it gave us to prescreen and pre-qualify candidates,” Pantano said. “But the event also helped with employee morale. Once you get employees talking about the company — the programs we have, the growth in the business, and what A123 Systems is doing for the environment — they get reinvigorated as to why they work here and what they like about the company.” Neil Costa is CEO and founder of HireClix, a recruitment marketing agency. He can be reached at [email protected] talent management magazine www.talentmgt.com September 2012 To recruit more experienced engineers, ads were placed on Facebook profiles where people listed professional engineering associations, engineering job titles or engineering sub-specialties as interests or in the academic and work history. These ads were targeted to attract engineers in states where other large battery technology companies have offices or headquarters, with the hope of luring talent with battery experience to new opportunities at A123 Systems. In total, the Facebook advertising campaigns for A123 Systems generated more than 10 million impressions for the company brand and delivered 3,000 visits to the A123 career fair page. Similar advertising campaigns ran on LinkedIn to identify more senior engineering talent because a majority of LinkedIn users are older than those with Facebook profiles and more advanced in their careers. The LinkedIn campaigns generated a total of 500,000 impressions and 1,000 visits to the career fair page. 47 PROFILE continued from page 41 DaSHBOaRD continued from page 45 intellectual honesty and integrity. These values are important internally and externally. sure to report back to employees on how their feedback helped management reach decisions. When organizations make a concerted effort to hear from talent, and talent feels the “ask” is authentic, decision makers gain the emotional capital required to make even unpopular decisions without losing support. When Hyatt went public in 2009, talent strategy underwent a significant change. “When we went public I was a little naïve,” he said. “I’ve been here long enough as a private company, I’d forgotten what it was like to be public. So we went public and all of a sudden a lot of stakeholders started to come at us. I had a lot of people in the religious community writing here and asking us what our position was on human trafficking around the World Cup in South Africa. How else do you answer that except to say, ‘Well, we’re opposed to it.’ I realized as a public company we can’t just know that we’re doing the right things. We need to have a framework, policies, things that demonstrate to the outside world that that’s what we believe.” That type of wholesale move carries risk and can potentially impact how talent is viewed and strategy is executed. Lilith Christiansen, vice president and co-lead of the organization development practice at management consulting firm Kaiser Associates, said it can be easier to invest in culture and people programs in a privately held organization because there’s no need to defend the resource spending to outside investors. “The fact that Hyatt made this transition in a successful way and we haven’t seen any bleeps in terms of news around a degradation of their service and culture says a lot,” she said. “I suspect it has something to do with how core their culture is to their success and their ability to deliver client service. It hasn’t been a place that investors have looked to make improvements or changes.” Moving from a private, family-owned to a publicly traded company creates a different organization, said Mark Demich, vice president of leadership and organization development at Hyatt. Once the dust settled, Demich worked with Webb as well as other business and HR leaders to put together a global review process for top talent. “We have a base criteria on how we measure leaders, a process by which we do the measurement, and then we have the actual conversation with the executive team about all of the talent at that level to understand that talent from a succession standpoint, to understand how deep that talent pool is and where leaders across the organization might come from that we hadn’t seen before for future opportunities,” he said. Leadership at all levels is fast becoming an organizational norm. Take the front doorman of Chicago’s Park Hyatt Hotel. “I love this guy,” Webb said. “He is the absolute personification of Hyatt and a leader in the company. I want 90,000 people just like him. September 2012 48 “The future is providing development for those 90,000 people so they can continue to be the stewards of our culture and of our brand, so that every time they come into contact with each other, with a guest, that guest or colleague walks away feeling more engaged, more loyal and more cared about than before the interaction. I’m trying to figure out how to bottle that. I haven’t quite gotten there yet, but that’s the goal.” talent management magazine www.talentmgt.com Regardless of the outcome, maintaining clear two-way communication is key for today’s workforce. When employees have a voice, they feel as though they are contributing and, as a result, become more engaged. Management reaps the reward of knowing exactly where it stands with its employees, and thanks to a robust communication flow, the organization has a fully functioning early warning system as to what is and is not working well. There are transparency lessons to be learned from some consumer-facing initiatives already in use. For example, Starbucks has created its own My Starbucks Idea website. Starbucks invites consumers and website visitors to submit their ideas for products, service improvements and social responsibility ideas. Tens of thousands of concepts have been submitted, reviewed by other consumers, given thumbs up or thumbs down and reviewed by Starbucks management. This level of engagement and transparency results in rich data and taps into groups’ collective wisdom. Similarly, Dell has created a site named Idea Storm. Like My Starbucks Idea, Dell’s 5-year-old site invites consumers to vote on potential advances to the company’s line of technology products. More than 17,000 concepts have been contributed by site visitors, more than 700 votes cast on the individual concepts, and 500 ideas have been implemented by the company. This transparent communication with stakeholders and the collective wisdom of Dell’s consumers has led to tangible benefits — product innovations — and intangible benefits — ongoing, deeper, brand-building conversations with its customers and potential customers. These sites invite key stakeholder groups to actively participate in strategic decisions and the company’s long-term success. These stakeholders are promised a reasonable level of response, demonstrating that the organization is actively engaged in the communication process. On top of that, people who submit winning ideas receive recognition — although not material compensation — from the company. Talent management should stay vigilant about its organization’s needs and desires today versus what the business required decades ago. Best practices are often created with a specific need in mind or as a result of a leadership belief or philosophy. As much and as often as an organization’s workforce demographic and competitive landscape shifts, so should its best practices. Halley Bock is the CEO of Fierce Inc., a leadership development and training company. 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For all other requests, including bulk issue orders, please contact MediaTec Publishing at [email protected] Advertisers’ Index aDVERTISER/URL PaGE american Public University System StudyatAPU.com/talent 23 aubrey Daniels International www.RapidChangeBook.com 6 Citrix Online LLC GoToTraining.com/FindYourReason 3 Human Capital Insights HumanCapitalMedia.com SuccessFactors SuccessFactors.com 31-33 Human Capital Media HumanCapitalMedia.com 13 HR Certification Institute www.hrci.org 15 31-33 aDVERTISER/URL InterCall www.unisfair.com/virtualHR Monster findbetter.monster.com Skillsoft Ireland Limited www.skillsoft.com/leadership SkillSurvey Inc. www.skillsurvey.com/ Society for Human Resource Management shrm.org Talent Management webinar TalentMgt.com/webinars Tata Interactive Systems www.TataLearningForum.com PaGE 11 5 Back Cover 36-37 3rd Cover 7 2nd Cover Editorial Resources COMPaNY PaGE A123 Systems 46, 47 Accounts Receivable Management 30 Adreima 30 Apple 24 Applied Materials 17, 19 Association of Washington Business 27 Bureau of Labor Statistics 42, 43 Cerberus Capital Management 29 Chartered Institute of Personnel and Development 24 Chrysler 29 Cisco 34 Citigroup 40 Clark Nuber 27 CMIT 14 Cornell 47 Cornerstone OnDemand 35 Daimler-Benz 29 DaimlerChrysler 29 Data Services Inc. 30 Dell 48 DJO HR 28 Drexel University 43 Economic Policy Institute 43 Enron 44 Eventbrite 47 Facebook 26, 39, 44, 46, 47 Fastrac Markets 34 Felix Global Corp. 29, 30 Fierce Inc. 44, 45, 48 Gallup 41 GE 4, 25, 27 General Mills 10 Google 24, 46 Great Place to Work Institute 27 Harvard University 4, 42 HAVI Global Solutions 45 Hay Group 24 HireClix 46, 47 Hospital Inpatient Services 30 Human Capital Source 12 Hyatt Hotels Corp. 40, 41, 48 COMPaNY PaGE Jobscience 38 Kaiser Associates 48 Ken Blanchard Cos., The 20, 23 Kenexa 38 Knowledge Infusion 34 LinkedIn 26, 39, 46, 47 LongHorn Steakhouse 50 Longmont United Hospital 39 Maritz Research 20 Massachusetts Institute of Technology 47 McBassi & Co. 16, 18, 19 McKinsey 24 Millward Brown Optimor 14 Northeastern University 42, 43 Oracle 38 People in Business 24 PeopleMatter 35 Pinstripe Inc. 25, 27 Procter & Gamble 14 Rubicon Consulting 23 SilkRoad Technology 39 Simplicant 26 Society for Human Resource Management 27 Southwest Airlines 25 Starbucks 24, 48 TMP Worldwide LLC 24 Towers Watson 20 Twitter 26, 39 Tyco Fire and Security 16 U.S. Department of Labor 43 Ultimate Software 34 United Way 40 University of Massachusetts 47 Universum 24, 25, 27 Waud Capital Partners 30 Westinghouse Canada Ltd. 40 Worcester Polytechnic Institute 47 Workday 35 Workforce Intelligence Institute 12 Xceptional HR 38 YouTube 4 Editorial Advisory Board Jim Bowles Vice President, BTS USA Daniel S. Bowling III Senior Vice President of HR, Coca-Cola Enterprises Doug Castor Vice President of Talent Acquisition,Wellpoint Chris Cutone Senior Vice President, Talent Director, McCann Erickson Kate DCamp Senior Executive Adviser, Cisco Systems John DiBenedetto Chief People Officer, General Parts International Inc. Jac Fitz-enz Founder and CEO, Human Capital Source Jim Gillece Chief People Officer, AlliedBarton Security Services Beverly Kaye Chief Executive Officer, Career Systems International Michael Laming Senior Vice President of HR, GENWORTH Financial Talent Management and talentmgt.com are the trademarks of MediaTec Publishing Inc. Copyright © 2011, MediaTec Publishing Inc. ALL RIGHTS RESERVED. Reproduction of material published in Talent Management magazine is forbidden without permission. September 2012 Talent Management magazine (USPS #24279) is published monthly by MediaTec Publishing Inc., 318 Harrison Street, Suite 301, Oakland, CA 94607. Periodicals Class Postage paid at Oakland, CA and additional mailing offices. POSTMASTER: Please send address changes to: Talent Management magazine, P.O. Box 2082, Skokie, IL 60076-7983. Subscriptions are free to qualified professionals within the U.S. and Canada. Nonqualified paid subscriptions are available at the subscription price of $195 for 12 issues. All countries outside the U.S. and Canada must be prepaid in U.S. funds with an additional $33 postage surcharge. Single copy price is $29.95. MaryAnn Miller Chief Human Resources Officer, Avnet Inc. Matthew T. Peters Vice Deputy Director for Human Capital, Defense Intelligence Agency Matt Schuyler Chief Human Resources Officer, Hilton Hotels Stephanie Taylor Director of Talent Management, TIAA-CREF Gail Thakarar Senior Vice President, Human Resources, ProCure Jeff Tritt Executive Vice President, People and Culture, Leo Burnett USA Kevin D. Wilde Vice President, Chief Learning Officer, General Mills Bouvier Williams Vice President, Talent Management, MTV Networks Patti Wilmot Executive Vice President of People First, Domino’s Pizza Printed by: RR Donnelley Inc., Mendota, IL talent management magazine www.talentmgt.com 49 [full potential] by Marshall Goldsmith Just a Waitress, or Mojo Queen? One person’s idea of surviving is another’s idea of success and vice versa. I got a vivid lesson about this from Frank, the president of a two-branch savings and loan in Jasper, Ga. Frank was driving through Prattville, Ala., when he stopped for dinner at a LongHorn Steakhouse. It was packed, so Frank grabbed the last remaining seat at the bar. Sitting there with 20 other people, waiting for the lone female bartender to take his order, Frank had a moment to observe and listen. He focused on the bartender, wondering how long it would take her to notice him and get him something to drink. She was in her late 30s, he guessed, dressed in the same cowboy shirt and jeans outfit as every other employee. But she was unlike any service provider he had ever seen. She didn’t waste one step, one comment, one move along the bar. She took his order for a draft beer less than 30 seconds after he settled in his seat, asking, “Are you having dinner too?” Less than a minute later, she had plunked the beer, a bowl of peanuts, a menu, and the silverware in front of him — all while serving drinks and dinners to 20 other bar patrons. September 2012 50 She also handled the drink orders for the entire restaurant, and was responsible for making sure every takeout order was correct before it went out the door. She was a non-stop bundle of energy and an efficiency expert, and she was smart. When she fell behind, she knew precisely when and talent management magazine www.talentmgt.com what to say to let patrons know she hadn’t forgotten them. She had the politician’s gift of making everyone feel like the most important person in her world. Frank was impressed. As he sliced his filet, his first thought was if there were a reality show for the best bartender in America, this woman could win. Her name was Cothy — like Cathy, only with an “o,” she said. when people pass their positive spirit to us, we feel like passing it back. He told her, “You’re the most impressive bartender I’ve ever seen. You should come work for me at my bank in Georgia.” It wasn’t the drink talking. Frank was halfserious; someone this amazing could do anything. “I’m divorced. I have an 8-yearold daughter and my mother at home. I couldn’t just get up and leave them. Besides, you couldn’t afford me.” “We pay pretty well in Georgia,” Frank said. She leaned over the bar and whispered, “Well, you’re going to leave me a tip, right? Multiply your tip by 60, then multiply that by five days a week, 50 weeks a year, and you’re getting close to what I’d cost you.” Frank did the math in his head and realized she might be out-earning him. On paper, her résumé didn’t seem promising: divorced, single mom, raising a daughter alone, living under the same roof with her mother and working nights at a bar. For many people, that would fall somewhere between sacrificing and surviving. But this woman clearly loved what she was doing, and as a result did it so well that she could handle all her responsibilities, and then some. She had enough spirit to convince a stranger to hire her on the spot. She was, without question, succeeding. As Frank got up from his meal, he tripled his usual tip. It was a small gesture, more a salute to a great worker than excessive generosity. Frank wanted to impress her as she had impressed him, even though he knew he’d never pass through Prattville again. Spirit is often infectious. When people pass their positive spirit to us, we feel like passing it back. People who find happiness and meaning at work tend to be the same people who find it at home. In other words, our spirit comes from inside ourselves, as much as it does from what we do. About the Author Marshall Goldsmith is an authority in helping successful leaders achieve positive, lasting change in behavior. He is the author or co-editor of 31 books, including MOJO. He can be reached at [email protected] The pace of change is accelerating. The way we perform, compete, and grow. People are driving this change. From the next economy, to the next generation, SHRM and its members will help you get the most out of business by getting the best out of your people. Learn more at shrm.org/leading Leading People. Leading Organizations. 12-0531 only the smart survive. work work work lunch work work work elearn lead A nimble, adaptable workforce requires nimble, adaptable leaders. Make sure they have instant access to the online learning resources they need to stay informed and grow professionally. With Skillsoft’s modular approach to leadership development they can get big learning impact in small doses: a perfect fit for busy schedules. Get a sample of Skillsoft’s leadership boosting approach by downloading the Books24x7® ExecSummaries™ title Unusually Excellent: the Necessary Nine Skills for the Practice of Great Leadership at www.skillsoft.com/leadership. Ad Copyright © 2012 Skillsoft Ireland Limited. All Rights Reserved. Summary Copyright © 2011 by Soundview Executive Book Summaries of Unusually Excellent: the Necessary Nine Skills for the Practice of Great Leadership Copyright © 2011 book author John Hamm.
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