“Did you know that approximately 10,000 people will retire each day? This means 43 percent of the current workforce will retire in the next decade,” stated Steve Dobberowsky, Principal, Thought Leadership & Advisory Services at Cornerstone.
There are many challenges that government agencies face today, such as shrinking budgets and the Baby Boomer retirements. So, how are HR professionals adopting a talent management strategy that will drive positive results in this day and age?
In this training with GovLoop, we'll examine how the workforce is rapidly changing and the challenges and solutions that HR professionals are dealing with - including developing a Unified Talent Management strategy.
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Steve Dobberowsky, Principal, Thought Leadership & Advisory Services
Bill Taylor, Solutions Architect, Strategic Solutions
An Agency’s Journey to
Unified Talent Management
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Our Presenters Today
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With a strong belief that technology should be empowering and knowledge should always be accessible, Bill served 7 years in
Federal Government competitive service implementing talent management solutions at the Department level, then with multiple
agencies through a Shared Service Center. Leveraging career choices that started with programming, databases and networks and
segued into sales and marketing, he entered the learning space with laser discs and continues to exploit today’s evolving
technologies in designing effective solutions. He helps create a common language for decision-makers with practical analogies of
technical realities, as they seek to unify talent processes.
BILL TAYLOR
Solution Architect, Strategic
Solutions
STEVE DOBBEROWSKY
Principal, Thought Leadership
& Advisory Services
Steve has served 11 years of Federal Government competitive service with 7 years in HR and HR IT leadership roles ensuring effective
talent management processes at a bureau level, at the Department level and at a Shared Service Center where he delivered solutions
for multiple agencies. He is a proven, business-savvy leader with a track record of providing high quality, innovative services and
solutions. He is also adept at achieving desired outcomes from multiple initiatives simultaneously, working collaboratively and decisively
to overcome obstacles and deliver results, and creating a continuously learning, improving and adaptable organization. He has a
resilient proficiency and is effective at heading up change efforts, building organizations, uniting divergent groups, and leading a diverse
and geographically dispersed workforce. Utilizing his initial professional experiences as a high school teacher, he is a seasoned leader
who leverages resources, information, knowledge, skills and technology to develop people, foster relationships and build partnerships.
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The Talent Dilemma
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Unprecedented shortages at a time of
continued unemployment
• Consistently over 52% of employers cannot fill open jobs
• Shortages have intensified in specific areas with STEM
roles showing predictable deficits (Science, Technology,
Engineering, Mathematics)
• We are importing manufacturing/journeyman talent
to work in our factories / industries.
• A person is predicted to have 11.3 jobs from age 18-46
• 10,000 people reach retirement age (65) in the U.S. every
day …. 43% of the current workforce will retire
in the next decade
Source: Pew research; Hackett group; Randstad, 2012; Harris Interactive, 2011
Manpower: Talent Shortage Survey, 2011; U.S. Bureau of Labor Statistics
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It’s all over the board, mobility survey in 2014
The Talent Dilemma
5Source: HCI Internal Mobility Research 2014
51%
64%
64%
55%
37%
50%
68%
69%
51%
43%
Executives/C-Suite
Mid-level Leaders
Front-line Leaders
Individual Contributors
Entry-level
Skills Shortage Skills Gap
More than half of respondents report employee skills gaps & skill shortages in external talent pools
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Employee Retention is No Different than
Customer Retention
Source: Shankman / HONIG 2014, Diginomica 2015
Generally – it costs roughly 5 times more to acquire than retain a customer
When they encounter
service multiple times
for the same reason
71%
INFLEXIBILITY
After being left
on hold for a
long time65%
LATENESS
If dealing with
unfriendly or
impolite customer
service agents77%
RUDENESS
After having to
contact customer
service multiple
times for the
same reason
73%
INCOMPETENCY
Of consumers claim they would leave a
service provider if a service delivered is
different from what is implied78%
DECEPTION
CAUSES OF CUSTOMER DISSATISFACTION
Are satisfied with
clear information
posted to company
websites for
simple inquiries
38%
CLEAR WEBSITE
Want to speak
with a real
person on the
phone for difficult
inquiries
46%
HUMAN
Feel it is extremely Important
that customer service
representatives know their
client history based on previous
interactions
50%
SUPPORTIVE
Want access
to faster
customer
service
69%
FAST
Want ease of access to customer service73% EASY
WHAT CUSTOMERS EXPECT
(BESIDES COMPETITIVELY PRICED PRODUCTS & SERVICES WHICH WORK FLAWLESSLY)
Good-Bye Talent Management – Hello People Management
“
“
H
RH
R
H
R H
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“Goodbye Talent Management, Hello People Management”
Understand Your Employee
7Source: HCI Internal Mobility Research 2014
47%
Agree that it is easier
for an employee to
find a job outside of
our organization than inside
it.
89%
Agree that hiring is less
expensive from within
the organization.
86%
Agree that it is
faster from within
the organization.
60%
Agree that employees
promoted from within
perform better.
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17%
14%
15%29%
26%
Generation X
(1965–1976)
iGeneration “Next”
(after 1997)
Traditionalists
(prior to 1946)
Baby Boomers
(1946–1964)
Generation Y
“Millennials”
(1977–1997)
We have been trained as human resource executives to address many forms of
diversity, we must now be prepared to manage extreme age diversity as well.
Our strategies need to address generational context.
Five Generations In The Workforce
8Source: Percentage of the Population US Census 2007
Gen Y is AKA as Millennials, Gen Next, Gen Why & the Echo Boom
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Approximately 25% of the North American workforce
is comprised of Gen Y; however, only about half have
entered the workforce to date.
By 2025, Gen Y will make up
roughly 75% of the workforce.*
9
Gen Y is the Ultimate Future of Your Workforce
25%
32%
38%
4%
TRADITIONALISTS
GEN Y
GEN X
BABY
BOOMERS
25%
75%
GEN Y
ALL OTHER
DEMOGRAPHICS
Source: Generations in the Workplace in the U.S. & Canada
*Source: Erica Dhawan, Gen Y Workforce & Workplace Are Out of Sync.
**Source: 15th Annual Global CEO Survey 2013
North American Workforce Population By Generation in 2010 North American Workforce Population By Generation in 2025
Twenty-eight percent of managerial positions
are already held by Millennials, which is enough talent to
succeed Boomers’ share of leadership positions at 23
percent
— Bersin and Associates (2012)
87% of Gen Y managers took on a new management
role between 2008 and 2013, compared with 38% of Gen
X managers and just 19% of those aging baby boomer
managers.
— Ernest and Young (2014)
On average, one Baby Boomer is retiring every eight seconds.**
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In 2014 – New Hire Turnover, A Problem.
10Source: PwC Saratoga’s 2012/2013 US Human Capital Effectiveness
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2006 2007 2008 2009 2010 2011
First-Year Turnover Rate
First Year Turnover
29%
28%
31.7%
23.6% 22.7% 21.5%
According to government statistics in February 2013, for the first time since September 2008, more
employees left companies by resigning than by being laid off.
“
“
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2004 2005 2006 2007 2008 2009 2010 2011
Voluntary Turnover & Unemployment Rate
Voluntary Separation Rate U.S. Unemployment Rate
9.3%
10.5% 10.4% 10.4%
9.2%
7.3% 7.0%
8.0%
5.5%
5.1% 4.6% 4.6%
5.8%
9.3% 9.6%
8.5%
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Inverse Relationship Between Unemployment & Consumer
Confidence
11
✓ As consumer confidence
increases, employees see an
opportunity to make a job
change
Quits have increased by
almost 1 million between Jan
10 and Jan 15 …
approximately 60% increase
from 1.7 M to
2.7 M, but are still below pre-
recession levels of over 3
million
✓
Source: Bureau of Labor Statistics, Current Population Survey and Job Openings and Labor Turnover Survey, July 7, 2015.
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Layoffs & Discharges
Quits
Quits & Layoffs & Discharges
SEASONALLY ADJUSTED IN THOUSANDS
~60%
Overall 21% are a planning a
move in 2016. By demographic
a third (32%) of 18-24 year olds,
while a quarter (25%) of
25 to 34 year olds will be
job hunting.
—Penna Career Services Survey - UK
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Timeframe an Employee Makes a Decision to Leave
12Source: Aberdeen Group, 2008
0% 5% 10% 15% 20% 25% 30% 35%
Other
The First Five Years
The First Two Years
The First Year
The First Six Months
The First Month
The First Week
The First Day
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0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Less than
1 yr
1 yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs 7 yrs 8 yrs 9 yrs 10 yrs 11 to 14
yrs
15+ yrs
QuitRatePercent
Typical Voluntary Turnover Rates for Different Years of Seniority
Different Reasons at Different Times…
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Why Do People Leave in the First Few Years?
Source: IC4p/Attrition and Retention Consortium
• Concerns around development and career opportunities
• Compensation and benefits
• Supervision “The Boss Effect”
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We’re already doing a lot of these things, but…
15Source: Modern Survey, Stat of the Week – 2/12/2016
✓ 44% of U.S. workers say their
organization does a good job in talent
management.
Only 26% of HR pros say their
organization measures & monitors the
talent management process well.
✓
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Source: CSOD, HCMG Federal Benchmarking 2016
Challenges in Boosting Workforce Capabilities
Development
68%of HCM are investing
in staff-wide L&D initiative
15%emphasize training their
team on new technologies
54%of agencies lack
Millennial-focused L&D tools
51%of agencies say identifying and closing
skill gaps is their #1 priority
17%of top agencies have
already created strategies to
develop younger workers
L&D is #2 goal for another 45%
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To manage Agency assets effectively, we need to be able to answer these questions:
1. How do an employee’s performance goals link to Agency’s strategic goals? How do
employees see their impact on Agency’s mission?
2. Who works here? What do they do?
3. Did we meet our goals? Are we on track to meet them?
4. Are we rewarding our top performers? Do we have gaps in the leadership pipeline?
5. What does it cost and how can we forecast? How can we report all this data?
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Talent Management is Good Business
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End-to-end people strategies offer organizations significant advantages:
40% lower turnover among high performers
17% lower overall voluntary turnover
87% greater ability to “hire the best people”
156% greater ability to “develop great leaders”
92% greater ability to “respond to changing economic conditions”
144% greater ability to “plan for future workforce needs”
Source: Bersin & Associates, 2009 Talent Management Factbook
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Lessons Learned in 2010
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Companies with automated talent management systems are better at:
Targeted recruitment
Heavy focus on development, management, leadership, mobility and culture
Understanding and using core competencies
Moving people into ever-increasing levels of responsibilities, offer new challenges and providing
succession and development programs
Driving Business Success
Source: Bersin & Associates
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Engagement – Top of the List
20Source: 2014 CEO Challenge Report & Economic Outlook — The Conference Board Managing Human Capital Risk
Global
Importance-adjusted Strategies for Managing Operational
Excellence
ASIA
N = 291
EUROPE
N = 103
USA
N = 108
1 Raise employee engagement & productivity 1 2 1
2 Focus on reduction of baseline costs 13 3 3
3 Break down internal silos T10 1 T4
4 Continual improvement (six sigma, total quality, etc.) 5 7 2
5
Seek better alignment between strategy, objectives & organizational
capabilities
7 6 T4
6 Invest more in new technologies 2 8 9
7 Redesign business processes T10 4 6
8 Improve speed to market 12 9 7
9 Improve cash management 9 18 T20
10 Ensure supply chain integrity 8 T12 12
11 Deeper integration of global operations 3 T10 14
12 Improve performance & accountability of middle management 4 22 10
13 Improve performance & accountability of senior management 6 16 13
14 Better align IT with business goals 14 T12 8
15 Achieve economies of scale through organic business growth 18 17 11
• Gallup (2013) found that 13 percent of
employees globally are engaged, 63 percent are
not engaged, and 24 percent are actively
disengaged.
• Organizations with high engaged /disengaged
ratios (9:1) experienced
a 147% higher EPS than their competition.
“
”
Employee engagement is the
extent to which employees are
willing to expend discretionary
effort to achieve an organization’s
objectives, which translates into
measurable performance.
– Saratoga Institute
1 – Raise Employee Engagement and
Productivity
5 – Seek Better Alignment Strategy
Organization
12 – Improve Performance of Middle
Management
13 – Improve Performance of Senior
Management
CEO CHALLENGE 2013: LOOKING AT STRATEGIES FOR
OPERATIONAL EXCELLENCE
OPERATIONAL EXCELLENCE: Raising Employee Engagement & Productivity
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Why Unify Talent Management NOW?
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Be Clear in the WHY!
• Tracking with Spreadsheets
• Engagement Levels
• Employment Brand
• Consistency of Experience
• Organizational Transformation
• Reduce Data Entry Mistakes
• Accountability
• Take Action on Performance
Results
• Quick Access to Data
IMPROVEMENT
OBJECTIVES
• Attrition
• Time-to-Productivity
• Level of Productivity
• Increased Trust
• Ability to Meet Talent Needs
• Retain Top Talent
• Competitive Position
• On Boarding Administrative Cost
ORGANIZATIONAL IMPACT
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Talent Management Strategy
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While facing significant financial and HR challenges, including shrinking budgets and
the impending wave of “Baby Boom” retirements, organizations must adopt a talent
management strategy that aligns individual and organizational goals to drive results
Performance
Management
Learning &
Development
Workforce
Analytics
Key Areas of Focus Action(s) Required Description
2
1
3
Drive Business Results
Put processes and tools in place to accomplish goals
Be goal oriented
Transform the
performance
management process
Align individual (SMART) goals with organization’s mission
Make performance management an ongoing process and
critical business activity
Create a learning culture
Leverage resources
Share knowledge
Emphasize the importance of personal development
Expand talent management activities to create and find
untapped pockets of knowledge, skills, and abilities
Encourage and facilitate both formal and informal
collaboration and mentoring
Collect and analyze key
data
Build meaningful metrics
Identify organizational gaps
Assess potential risks
Reward performance
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Employing an Unified Talent Management approach will allow organizations to execute
strategic initiatives efficiently and optimize the use of human capital resources
Current Performance
No integration with other systems
Limited goal alignment, goal tracking, and data
analysis capabilities
No real-time status information
No ongoing feedback support
Current LMS
Frequent patches and costly upgrades required
Unstable applications and declining service
levels
Limited reporting capabilities
Other
No common system for succession
management, social networking, and knowledge
management
Current State: Disparate Systems*
UTM
Federalized and configurable Software as a
Service platform
Integrated and interactive modules
• Performance Management
− Organization-wide goal alignment,
tracking, and transparency
− Multi-rater, ongoing feedback tools
and competency assessments
• Learning Management
• Standard and Custom Reporting with data
collection and analysis built into the
system
• Career and Succession Planning
• Compensation Management
• Social Networking
Intuitive end user interface and processes
Desired State: Single System
*Note: This example refers specifically to one agency, and is for illustrative purposes
The Vision: Unified Talent Management
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UTM Implementation Strategy
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Implementation Strategy
Configure a base platform for UTM
• Performance Management (most
needed, more difficult to implement)
• Learning Management (easier lift, easier
first experience for the end user, first
data set up, more end user access
opportunities)
Add other UTM modules in sequence
• Succession Planning
• Connect
• Compensation Management
Implement UTM pilots and releases in
successive rollouts
• Make improvements based on lessons
learned
• Start small, and increase the number of
modules as necessary
Success Requirements
To implement the UTM strategy successfully, an
organization will need…
A logical and defensible reason for adopting
UTM (a “Burning Issue”)
Strong leadership engagement and
stakeholders with decision making and
approval authority
Adaptable and cross-functional planning and
execution
• CIO
• CHCO
• CLO
• CPO
Strong change management initiative
Strong user engagement to ensure adoption
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Indicators of a Successful Implementation
25
Saves time and resources
Aligns individual and
organizational goals
Provides robust reporting tools
and reliable data
Helps evaluate development
programs
PerformanceEase of Use
2 4
Meets applicable regulatory
requirements
• SF-182
• EHRI
• OMB
• OPM
Compliance
1
Simple structure
Provides quick access to
information
Has professional look and feel
End user adoption rates
Offers more value per dollar
spent
Increased cost avoidance by
greater efficiencies
Effective and efficient
governance procedures for
upgrades
Cost
3
Meeting these conditions will help future implementations succeed
Configuration of each module in the implementation must meet key performance require-
ments. Best practices and lessons learned will be incorporated into future implementations.
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Decision Points
26
Decision Points Next Steps
Define change management strategy
Focus on improving strategic planning
Train executive POCs
Complete UTM system technical training
Union Consultations
Should modules be added in order?
• Learning Management
• Succession Planning
• Compensation Management
Implementation strategy: “Big Bang” vs.
phased approach
Funding and staffing requirements
• Implementation
• Future growth
Who will own the system?
• Governance
• Administration
• Maximize existing and new functionality
The following items need to be addressed in order to implement UTM efficiently and successfully
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Lessons Learned
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1. A strong change management program driven from senior management levels offers the
best opportunity for implementing real change(s).
2. Clear and agreed upon decisions must be documented and centrally stored to avoid
confusion.
3. HR data integrity (accuracy of data in the HR system feeding UTM) will ultimately
determine project success.
4. Routing individual performance documents is an antiquated process. The new
performance process incorporates regular documented feedback and goal alignment.
Adopting this new method into your organization is critical to the project’s success.
5. Customers must be involved and ready to make key decisions. Appraisal forms are not a
performance management process.
6. The activity of identifying best business practices is organization-specific.