3 steps to enterprise talent success with Performance Profiles
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Do you know the keys to a high performance culture? Can you describe what success in your company's key roles looks like? If not, you're not alone. Over one-third of organizations in Brandon Hall Group’s recent skills gap survey have not defined the critical roles required to enable their future business success. Knowing the traits that lead to performance in particular jobs is a core task for the modern HR function, but creating an accurate picture of success can be difficult. By turning to data, many successful organizations are building "Performance Profiles" that help them reduce staff turnover, boost productivity and accelerate time to performance. This webinar will address the latest research on Performance Management, the science behind Performance Profiles, and how they can be deployed in the HCM cycle. In this Slideshare, Laci Loew, VP and Principal Analyst of Brandon Hall Group's Talent Management Practice, and Jason Taylor, Infor’s Chief HCM Scientist will explore the following: Critical trends in using data to define success, and the talent science behind it How to develop high-quality Performance Profiles for your organization Turning data into action – how profiles accelerate time to performance for new hires, identify low performers, and support development efforts through data-driven insights The importance of mobile tools for managing and measuring performance Managing employee and manager expectations around Performance Profiles
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3 steps to enterprise talent success with Performance Profiles
- 1. Three steps to enterprise talent success with Performance Profiles Jason Taylor, PhD Infor Chief HCM Scientist @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 1 Copyright ©2014 Infor. All rights reserved. This presentation is provided for informational purposes only and does not constitute a commitment in any way. The information, products and services described herein are subject to change at any time without notice.
- 2. What are your Top HCM challenges? Turnover and retention Lack of bench strength Showing ROI Operational improvement Doing more with less @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 2
- 3. Brandon Hall Group’s Performance Management Framework ©2014 Brandon Hall Group, Inc. 3
- 4. Brandon Hall Group’s Performance Management Framework Reveals 10 Leading Practices of Performance Management 1. Create a PM strategy in alignment with your business strategy ensuring cascaded goals 2. Institutionalize PM as an ongoing process --- not an annual activity with a beginning and an end 3. Adopt an approach to PM that focuses on developing employees’ strengths, not evaluating their ©2014 Brandon Hall Group, Inc. 4 weaknesses 4. De-couple performance discussions with compensation discussions 5. Engage peers and subordinates in providing performance feedback 6. Review and revise goals regularly to keep aligned with changing business priorities 7. Hold managers accountable for acting as coaches to develop employees’ strengths 8. Catch employees’ performing well (or not so well) and provide immediate, on-the-fly feedback (and do this regularly!) 9. Define and execute on targeted individual development plans enabled with performance support tools 1. Define a select few metrics to measure the impact of performance management and monitor those metrics regularly to create the conduit for making continuous improvement changes and creating a culture of perpetual high-performance.
- 5. The Business Impact of Leading Practice (Level 4) Performance Management ©2014 Brandon Hall Group, Inc. 5 Business Metric Level 4 Level 3 Level 2 Level 1 Customer retention increased 1-20%+ 37.8% 25.9% 13% 0% Revenue increased 1- 20%+ 57.8% 51.9% 47.8% 15.8% Customer satisfaction increased 1-20%+ 55.5% 27.2% 30.4% 5.3% Voluntary turnover has stayed the same or decreased 1 – 20%+ 60.8% 42.5% 45.9% 15.8% 85% or more of our business goals set in the last 12 months have been achieved 56.4% 47.1% 29.3% 11.8% Organizational engagement has increased 1-20%+ 44.5% 26.3% 8.6% 15.8%
- 6. 5 Calls to Action For Generating Leading Practice (Level 4) Performance Teach your managers to be effective development coaches. Consider eliminating forced distribution. Engage executives in performance management. Focus on developing employee strengths. Automate performance management process and integrate it with other talent processes. ©2014 Brandon Hall Group, Inc. Management
- 7. Three steps to talent success Build your Talent Science Deploy Talent Science across HCM Put your Talent data to work @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 7
- 8. Three steps to talent success Build your Talent Science Deploy Talent Science across HCM Put your Talent data to work @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 8
- 9. What is Talent Science? The ability to leverage performance data to improve future outcomes through people. @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 9
- 10. Infor CloudSuite HCM Talent Management Workforce Management Learning Management Core HR Employee Connect Talent Acquisition Talent Science Robust • Broadest solution in the market - complete back office platform • Single & multi-tenant SaaS • Science-driven • Socially-enabled • Modern UX • Industry analytics, benchmarks and dashboards • Flexible deployment approach – Implementation Accelerators Proven • 5,000 customers • 50M paychecks monthly • 30 million applicants annually @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 10
- 11. Talent Science at the Center @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 11
- 12. The “Backbone” of Talent Science Performance Profile U.S. Patent 8,204,778 U.S. Patent 8,484,072 Complete Assessment Incumbents Performance Data @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 12
- 13. Study parameters • Sample size: 17,849 employees • Study period: 2 years • Comparison: “Recommended” by Talent Science vs. “Not Recommended” by Talent Science With Talent Science, store managers are improving customer service and driving revenues to strengthen the company’s leadership position in the retail industry. Results 9.3% Higher Sales to Goal average by “Recommended” hires 28.9% Reduction in involuntary turnover among “Recommended” hires Turnover reduction 28.9% reduction in involuntary turnover “Not Recommended” by Talent Science “Recommended” by Talent Science @Infor_HCM Copyright © 20134. Infor. All Rights Reserved. www.infor.com 13
- 14. Study parameters • Sample size: 2,506 employees • Study period: Over five years • Comparison: Hired with Talent Science vs. Hired without Talent Science The study period consisted of two similar blocks of time to document pre-deployment and post-deployment results. Turnover reduction Results $5.6M saved compared to previous year’s turnover rate 60.96% lower turnover rate after the third month of employment 11.1% higher monthly sales by “Recommended” Managers on Duty representing $9.5M/yr if applied to all hires 60.96% lower turnover without Talent Science with Talent Science @Infor_HCM Copyright © 20134. Infor. All Rights Reserved. www.infor.com 14
- 15. Start with the data, end with the data! 51% lower termination rate $1.1M increase in sales Better hiring decisions 63% more promotions $4.75M potential sales growth Higher goal attainment 41.9% lower turnover $560k savings Increased retention 633% annual ROI Improved productivity 69% lower turnover $857 monthly production increase Reduced costs 46% lower termination $395K turnover-related savings Higher starts to leads 33% lower involuntary turnover Streamlined hiring process 55% lower turnover $2.4M saved Lower turnover 31% higher performance rank Improved performance @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 15
- 16. Talent Science Components Volume Big Data Velocity Variety Veracity Value Validity @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 16
- 17. Mobile Trends(n = 38,909,513) @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 17
- 18. Talent Science: Mobile Assessment • Challenge • Reliable assessment medium? • Candidate experience • Method • 2.9 million candidates • Results 100 90 80 70 60 50 40 30 20 • Customized testing experience • Equivalent to desktop assessment • Increased applicant access 0 10 Mean Dimension Value Mobile Desktop @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 18
- 19. Talent Science Components Volume Big Data Velocity Variety Veracity Value Validity @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 19
- 20. Talent Science: Applicant Behavior • Challenge • Applicant social desirability? • Method • 10 measures of assessment “authenticity” • 750,000 incumbents • Results • Candidate transparency is important • Concurrent assessment of retention predictors • 152 additional days of tenure 500 450 400 350 300 250 200 150 100 50 0 Median Tenure Passed AA Failed AA * * AA = Authenticity Alert * @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 20
- 21. Three steps to talent success Build your Talent Science Deploy Talent Science across HCM Put your Talent data to work @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 21
- 22. Interrelated Issues in HCM Development Bench Strength Turnover Theft More with Less @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 22
- 23. Behavior Impacts Operational Challenges Participants (n = 53,713) 463% Reduction Full service to Small Footprint Associate Assistant Manager Manager Data Collected Over 5 Years Termination due to theft .11% .62% No/Low Fit High Fit @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 23
- 24. Start with the HCM Cycle Retain Attract Develop @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 24
- 25. Meet Allison. She’s your new employee! @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 25 Copyright ©2014 Infor. All rights reserved. This presentation is provided for informational purposes only and does not constitute a commitment in any way. The information, products and services described herein are subject to change at any time without notice.
- 26. 9.1% AIrlelinsoen J oJonneess Product Manager @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 26
- 27. Allison Jones Product Manager @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 27 HR Services Delivery
- 28. Allison Jones @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 28 Talent Management
- 29. Three steps to talent success Build your Talent Science Deploy Talent Science across HCM Put your Talent data to work @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 29
- 30. Job Fit Positioned for success Coaching required Poorly positioned Behavioral Level Skill Level Training required @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 30 Talent Management
- 31. Allison Jones @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 31 Learning Management
- 32. Team Fit High Functioning Team Low Functioning Team Behavioral Level Skill Level @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 32 Talent Management
- 33. Team Fit Behavioral Level Skill Level @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 33 Talent Management
- 34. Allison Jones @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 34 Talent Management
- 35. It’s not Magic…It’s Science Build your Talent Science Deploy Talent Science across HCM Put your Talent data to work Profiles Value Return on Investment @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 35
- 36. Three steps to enterprise talent success with Performance Profiles Jason Taylor, PhD Infor Chief HCM Scientist http://blogs.infor.com/infor-hcm/ @Infor_HCM Copyright © 2013. Infor. All Rights Reserved. www.infor.com 36 Copyright ©2014 Infor. All rights reserved. This presentation is provided for informational purposes only and does not constitute a commitment in any way. The information, products and services described herein are subject to change at any time without notice.
Editor's Notes
- Thank you Jason. The list of HCM Concerns that we saw on the slide before are all underscored, at least in part, by a single driving force – improving performance. For both Infor and Brandon Hall Group, improving performance means improving business results – specific business metrics including revenue, engagement, retention and the like. The integration of all talent management processes is crucial in accelerating business results, but tackling leadership development and succession management, talent acquisition and onboarding, learning and development, and workforce planning simultaneously is overwhelming and simply not practical much less feasible. To that end, many organizations prioritize performance management in a first phase of executing on a high-performance talent strategy. Performance management has been a business practice for more than 50 years, yet more than 70% of organizations still report that the business value of their approach to performance management is average, below average, or even poor. To understand how high-performance, or what we call Level 4 organizations –those that in fact achieve measurable results on specific business metrics -- approach performance management differently than their lower-performing peers, Brandon Hall Group, last month, conducted our annual “state of performance management” study. In analyzing the survey responses from more than 200 global organizations and in studying our notes from our interviews and focus groups with executives, other business leaders, HR and Talent leaders, we distilled the framework you see here. Our framework reflects how high-performance organizations implement performance management. As you look over our Framework, it becomes obvious that Level 4 performance management is a continuous 6-sep process – not a set of “check the box” activities with specific start and end dates. NEXT
- Further, in studying the spokes of our Framework,10 leading practices of high-performance performance management become explicit. They are: Create a PM strategy in alignment with your business strategy ensuring cascaded goals Institutionalize PM as an ongoing process --- not an annual activity with a beginning and an end Adopt an approach to PM that focuses on developing employees’ strengths, not evaluating their weaknesses De-couple performance discussions with compensation discussions Engage peers and subordinates in providing performance feedback Review and revise goals regularly to keep aligned with changing business priorities Hold managers accountable for acting as coaches to develop employees’ strengths Catch employees’ performing well (or not so well) and provide immediate, on-the-fly feedback (and do this regularly!) Define and execute on targeted individual development plans Define a few metrics to measure the effectiveness of your PM process For those few Level 4 organizations who adopt, implement, and sustain performance management in alignment with these 10 practices, they in fact regularly record better business results than those of their lower performing peers. Let’s take a look. NEXT
- Specifically, Brandon Hall Group studied the impact of performance management on 6 different business metrics: customer retention, revenue, customer satisfaction, voluntary turnover in key talent segments, achievement of business goals, and organizational engagement. As you see here, Level 4 organizations recorded higher levels of achievement in all 6 metrics. So, dare I might say that the data here begins to build a sturdy business case for the transformation of traditional performance management in alignment with the 10 leading practices showcased in the Brandon Hall Group Framework. To begin the transformation, we asked those same business and and talent leaders to share the most important actions they took. NEXT
- This is what they told us: Teach your managers to be effective development coaches. While the focus on tomorrow’s performance management approach is on coaching for development, 56.5% of organizations feel their managers need to be better skilled in development coaching and providing timely actionable feedback. Consider eliminating forced distribution. While 33% of organizations say they currently or plan to use forced ratings distributions, another 49% said that they do not currently use and have no plans for utilization of forced ratings. In fact, 55% of organizations said that forced distribution does not improve performance and in fact another 22.5% said it actually causes a degradation of performance. Engage executives in performance management. 55% of organizations do not believe that their executives and other business leaders are fully engaged with PM. Another 34% say their executives don’t hold leaders accountable for performance. Yet, performance management is a business imperative, not a talent challenge and needs to be championed by business leaders not HR. Focus on developing employee strengths. 73.3% of organizations indicated that a strengths-based approach is critical to effective performance management, yet 82% of organizations said their managers were only somewhat effective, or not at all effective in strengths-based development planning and feedback. Automate your performance management process and integrate it with other talent processes. 30% of organizations still manage performance management solely through paper-based forms. Automating the process with technology and integrating it with other talent processes, particularly career management, leadership development, and succession management will increase the efficiency and effectiveness of talent. Let me turn your attention for a moment to the 5th critical action – automating your performance management. When we asked high-performance organizations to describe the most critical elements of performance management automation, each one described performance profiles and the critical role of performance profiles in achieving high-impact performance management, as well as in improving overall talent and organizational performance – the single driver that underscores most human capital management concerns. To fully describe the role that performance profiles play in describing the success of your company’s critical talent segments, knowing the traits that lead to optimized performance in key job roles, and understanding how performance profiles are used in Level 4 organizations to impact business metrics, I turn our discussion over to Jason who is eager to share the science behind the role of performance profiles in the performance management process and their impact on business results. NEXT
- As a guy who spent much of my career in the HR technology arena, I am very excited to be on stage and announce Cloudsuite HCM. It’s a culmination of 100’s of millions of investment, lots of original thinking and hard work from the best HCM team in the industry. We have no doubt that Cloudsuite HCM is the broadest, deepest, and smartest offering in the market. Yesterday Charles announced our Next Generation Financials offering which is built on the same integrated platform with HCM. If there is one word I would describe what’s going on in the backoffice race to the cloud is now is CONVERGENCE. Convergence of Talent Management & Core HR, Convergence of Workforce Management with Competency Management. Convergence of Shared Services with HR operations. Even the convergence of Human Capital Management with Finance. This convergence extends to User Experience of our employees. The average employee logs into 7 different HR systems on monthly basis. Including Payroll, Performance, Learning, Health & Safety, Time & Attendance, Scheduling, Benefits, Retirement and many more. Wouldn’t it be nice if from the time we hired lets say a Nurse, in real time we on-boarded her, enrolled her in orientation training, assigned her a mentor, created a development & competency roadmap for her, added her to payroll, and provided her a schedule for the next 8 weeks. Those if you who live this world know that’s been nearly impossible accomplish before now. We just had a third party well known consulting firm Accenture, to benchmark Infor HCM against all the major competition and their feedback was the following: We have significant advantage in our breadth and depth of capability. Our closest competitor has no Workforce Management Capability, No Leaning Management Capability, No Shared Services Capability, and No Talent Science. To accomplish the above process flow, companies are seeking one HCM provider that does it all, and does it without compromising capability. So What’s New in HCM Cloudsuite We have moved all our core HCM to our Java platform with a beautiful HTML5 Responsive design users experience that works at a computer and mobile. Multi-Tenancy to drive lower costs for our customers We have added comprehensive capabilities to GHR that include Health & Safety, Advanced Position Management & Employee Relations We have released a comprehensive HCM analytics offering with hundreds of metrics and reports that work out of the box We have introduced the worlds most advanced Talent Science capability with 250 plus companies of all sizes using big data to maximize their talent and drive better outcomes across the board We have already integrated Talent Science into Onboarding, Global HR & Learning
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- Big Data Volume - the amount of data Velocity - the speed of data collection Variety - the different types of data available Veracity - the amount “noise” or abnormalities in the data Additional factors in Talent Science Validity - the stability and accuracy of results Value - will the analyses provide value for our customers (high stakes) EAB: Any big data activity at your company? What problems are they trying to solve? What is big data? Misconceptions, definitions, no one really knows what it really is Big data is a collection of data from traditional and digital sources inside and outside your company that represents a source for ongoing discovery and analysis. A lot of big data analyses focus on trends in the current data, which may be outdated by the time it is analyzed. We are focused on the predicting performance and retention of new hires. Also, we have found that data mining (Neural Networks) – we have found to not work for this prediction…. Discuss “medium data” or big data in Talent Science. Talent Science focuses on what will happen not what has happened – we are predicting human behavior in a high stakes selection setting; not market trend analysis.
- Customized testing experience - navigation, enhanced mobile to fit screen, items and response options (common sense = context is key). Equivalent to desktop assessment - no meaningful differences in test scores Increased applicant access – candidate pool is now greater
- Big Data Volume - the amount of data Velocity - the speed of data collection Variety - the different types of data available Veracity - the amount “noise” or abnormalities in the data Additional factors in Talent Science Validity - the stability and accuracy of results Value - will the analyses provide value for our customers (high stakes) EAB: Any big data activity at your company? What problems are they trying to solve? What is big data? Misconceptions, definitions, no one really knows what it really is Big data is a collection of data from traditional and digital sources inside and outside your company that represents a source for ongoing discovery and analysis. A lot of big data analyses focus on trends in the current data, which may be outdated by the time it is analyzed. We are focused on the predicting performance and retention of new hires. Also, we have found that data mining (Neural Networks) – we have found to not work for this prediction…. Discuss “medium data” or big data in Talent Science. Talent Science focuses on what will happen not what has happened – we are predicting human behavior in a high stakes selection setting; not market trend analysis.
- Applicant commitment is important – make time for a 30 minute assessment Applicant transparency/honesty is important – act confident (non-linear model) Concurrent assessment of retention predictors – fit index score and authencity alert which both independently relate to your probability of termination. Method – include n verbally Mobile Testing - learnings, changing screen size, changing psychometric properties Authenticity alert, drop-off rates - effect sizes between flagged and not, People fake their way out of jobs, survival analysis Showing managers turn over less than associates West coast has less turnover than every other region - across multiple companies in retail Dashboard functionality Next big research project
- If we can understand how behavioral preferences link to learning styles, could tailor content not only around job content, but around what the best strategy of learning is for each person.