Talent Management - February 2011
Talent Management - February 2011
Talent Management - February 2011
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16
16 Hiring and Managing
the Overqualified
24 They’re Human
Capital, Not Cattle
32 May I See Your
Whine List?
Ladan Nikravan Ronald J. Baker Beverly Kaye
Hiring overqualified Most talent management Workplace uncertainty can
candidates need not be systems were designed breed employee concerns.
a bad thing if managers for the Industrial Era, By learning to identify what’s
communicate openly, give when tangible assets were beneath common employee
them room to grow and dominant. Organizations complaints, managers can
ensure they’re adequately must adapt to today’s turn whines into wins.
challenged. intangible assets to speed up
production.
42 Dashboard
Navigating Change Together
Michael Haid
Employee engagement and performance
suffered as a result of the recession.
Managing talent through change will help
ensure employees are committed and aligned
with business strategy.
44 Application
Driving Growth in a Storm
Lisa Buckingham
20
Economic crisis brought change to Lincoln
Financial Group in the form of an executive
development program that allowed it to invest
in talent despite turbulent times.
columns
10 Thinking Ahead
John Boudreau
32
Intimacy and Talent
COMING
NEXT MONTH...
12 Leading Edge
Jac Fitz-enz
• When Mergers and
Acquisitions Lead Getting What You Want
to Unkept Promises
resources
•Screening for Adaptability
and Resiliency
14 Making It Work
Marc Effron
4 Editor’s Letter
The End of the War on Talent
Doing Competencies Right
•Non-Retirement Retirement
49 Advertisers’ Index
50 Full Potential
Marshall Goldsmith
Meet and greet Strategies 2011 speakers and fellow attendees before the event begins. #ST2011
Join the Strategies 2011 Community** to participate in lively group discussions, create
your agenda and more! Visit Strategies2011.com/community to create your profile today.
STRATEGIES2011.COM
Sponsored by
[leading edge] by Jac Fitz-enz
at editor@talentmgt.com.
Stacey Harris
Director, Strategic HR Research, and
Principal Analyst, HR and Talent Community Giveback: Call of the Wild NEW SESSION
Management, Bersin & Associates
Please join us on Wednesday evening prior to the networking reception
Lacey All as we do our part to give back to the Half Moon Bay area.
Strategic Talent Initiatives, Strategies 2011 has partnered with Wildlife Associates,
Starbucks Coffee Co. who for 31 years has been caring for non-releasable,
abused, abandoned and injured wildlife. A select few of
Suzan McDaniel these animals will join us in The Ritz-Carlton Ballroom
Vice President, Talent Management, and take on the role of “wild teachers” as we learn
Hewlett-Packard more about the Wildlife Associates organization and
assemble enrichment “toys” for the animals in their care.
STRATEGIES2011.COM
[making it work] by Marc Effron
Bill Harper
Vice President and Chief Diversity Officer, Pacific Gas and Electric Co.
Register today at
STRATEGIES2011.COM
Hiring and Managing
the Overqualified
Ladan Nikravan
T
he abundance of overqualified talent ap- Managers: Challenge Them and Let Them Grow
plying for jobs below their education and Employers are seizing the opportunity to stock up on
skill levels is yet another lingering effect of discounted talent, but without the foresight to de-
the lackluster job market. But this pool of
velop their roles, many of these employees will not
job seekers should not perceive their over-
stay. Employees need challenges and room to stretch to
qualification as a burden, and talent managers should
maintain motivation. Organizations that hire overqual-
realize that, if properly managed, these workers can of-
ified employees need to find more meaningful work for
fer more than managers expect.
these employees, challenge them and accommodate the
Traditionally, companies avoid hiring overqualified types of skills and qualifications they have.
workers because they tend to be unhappy with the lim-
itations of their position or are unmotivated to excel “If a position is not quite at the level of a candidate, a
in assigned tasks and thus commonly quit. Although company can look at doing several things to fully uti-
many are simply grateful to be working right now, lize that talent and keep the person engaged,” Ellig said.
overqualified employees still need to be strategically “They can combine two positions into one to broaden
placed and supervised by talent managers to ensure the scope. If that’s not possible to do, they can look,
they’re adequately challenged. and promise, to do that down the road. If they can’t
do that now or later, the individual should be given a
“Smart companies want the best athletes,” said Janice
stretch project assignment, even if it’s outside of his
Ellig, co-CEO of executive search firm Chadick Ellig.
or her particular department or sphere of expertise, to
“In a market with an oversupply of great talent, com-
add fresh perspective, view and value to the organiza-
panies should always be on the lookout for people who
tion and their own work.”
will not just help them today but will fit their strategy
going forward.” Overqualified employees could conduct on-the-job
In a labor market where job seekers sometimes out- training and mentor newly hired employees, for ex-
number openings 5 to 1, the rise of overqualified talent ample.
in companies is not surprising. These mature and “Since companies aren’t spending the same amount of
skilled individuals are just as productive as their less dollars in training and development [as] they have in
skilled counterparts when placed and led properly. the past, when you have very experienced people you
“The cultural fit within an organization has to be there can use them as advisers to people less experienced,”
for an employee,” Ellig said. “The values have to be said Kathryn Kehoe, managing director at CMF As-
in sync. The communications have to be a two-way sociates. “When you have people who have a lot of
street. If those are all in play and in place, great people experience, they’ve worked through several economic
February 2011
will surely stay.” cycles and have come through the eye of the needle,
about different roles, it can actually be about becoming brings a lot of experience. Prior experience is a valu-
T-shaped so that you’re learning across the organiza- able quality in a prospective employee, and the more
“You need to see if your organization is expecting to Experienced, highly qualified workers have a lot to
grow and develop and come up with more complex offer, so rather than looking at the worries in hiring
products or service delivery,” Lawler said. “If you are, someone who’s overqualified, hiring managers should
then it makes sense to hire someone who is maybe a focus on what they’re getting, which, if properly man-
February 2011
little overqualified, providing you can see a way for aged, can be a better asset than imagined.
New employees join an organization with a high staggered basis and a determined process on how to
level of commitment, but the honeymoon stage conduct surveys. The compiling process and ques-
doesn’t have to dissipate. tions asked depend on company preference; what’s
Problems arise in the employer-employee relation- more important is what is done with the numbers
ship when expectations do not become realities. obtained.
In order to ensure ongoing commitment well after
“Collecting data is as good as what you do with
the employee gets situated, companies are using
new-hire surveys to assess new employees’ level of it,” Carvin said. “You can collect all the data in the
satisfaction. world, but if you don’t use it, there’s no point in
even having it. It’s really important that as you’re
Turnover costs are one of the largest controllable
collecting this data, you begin to create action plans
expenses incurred by organizations, and commu-
nication in early employment is crucial to develop and create a bit of a road map of things that you can
a healthy relationship and maintain commitment work on or solve that can improve the process.”
from newly acquired talent. Establishing a strong Survey results need to be aggregated in a way that
bond between an employee and employer boosts en- highlights trends rather than individual or anec-
gagement and can drive results faster. dotal performances. The purpose of these surveys
“There’s so much going on with the new hires that is to improve the process and organization — not
you just don’t know if you don’t ask,” said Beth N. to provide performance data on the individual em-
Carvin, CEO of Nobscot Corp. “It’s all about reten- ployee. According to Carvin, a company can best
tion and helping employees get off to a good start guarantee honest feedback if employees understand
with an increased speed to productivity. New-hire
the purpose of the survey and receive clear com-
surveys help organizations audit their processes;
it’s a wonderful way to really improve procedures munication on when it is coming. Tangible proof of
and reduce early turnover.” improvements from previous survey results help,
too.
Carvin said employee turnover is a bigger problem
now than ever before. In the past, employees were “New-hire surveys can create a company standard
willing to work through obstacles and often opted that acts upon the criticism of new employees and
to stay to avoid being perceived as job hoppers. Al- the inclusive opinions of everyone in the organiza-
though the recession has put a tighter leash on those tion,” Carvin said.
wishing to jump, employees are still more likely
than before to leave. Through the use of new-hire surveys, organizations
can identify critical job features that ensure the suc-
“Today, people are less likely than ever to stay if
cess and satisfaction of newly hired employees and
there’s an issue, if it doesn’t feel right or if the ex-
pectations are different from what they thought,” forge a strong employer-employee partnership that
Carvin said. minimizes turnover.
To effectively use new-hire surveys as an engage- “Taking action is really important for improving
ment tool, companies need to have a scheduler who your organization and improving the corporate cul-
plans the distribution of surveys to new hires on a ture around employee feedback,” Carvin said.
C
ompanies are increasingly turning to ana- Figure 1: Likelihood That Employees
lytics to sharpen their competitive edge. To Will Actively Look For a New Job
execute this strategy, they need analytical In the Next Year
talent — people who know how to use sta- On average, analytical professionals were less
tistics, quantitative or qualitative analysis likely to intend to stay with their current
and information-modeling techniques to make busi- employers than other employees.
ness decisions.
21%
Analytical talent includes the senior executives who lead Very likely
14%
analytical initiatives, the semi-professionals who apply
analytics to business problems and the army of employ- 26%
ees who increasingly rely on data to perform their jobs. Likely
15%
But the most strategic value is created by the analytical
professionals who build the models and algorithms com-
23%
panies need to improve decisions about everything from Unsure
new product offerings to marketing investments. 20%
■ Analytical professionals
Unfortunately, these highly specialized workers are
■ Other employees
among the most challenging to attract and retain be-
cause the best analytical talent is in high demand and Source: Accenture, 2009
has no shortage of employment opportunities. Further,
the quants are also those most likely to look for a new ily available. Some employers are forging links with top
job. In a 2009 study by the Accenture Institute for High universities to create a pipeline of new analytical talent.
Performance, “How to Engage and Retain Analytical
Talent,” 47 percent of analytical professionals said it It’s not simply a matter of getting HR to find more
was likely or very likely they would look actively for a quantitative experts. Managers must understand what
new job in the next year (Figure 1). makes these specialists tick and apply an informed ap-
proach to manage them. Analytical pros are a special
A high attrition rate among top quants is a problem com- breed. Their backgrounds, skills, attitudes and motiva-
panies can’t afford to ignore. When analysts jump ship, tions can differ markedly from other employees. What
they take vast amounts of knowledge and expertise with these professionals want most is an employer that
them, and there is often no one with the same depth of values analytics and analytical talent. Any company
technical skill to replace them. Further, finding analyti- courting top quants must get two things right:
cal skills in the market is increasingly challenging as
more companies join the hunt for these rare skills. Busi- 1. Create an organization that serves as a magnet for
nesses are aggressively poaching top analysts and have top analytical talent.
begun seeking out the best talent globally, even moving 2. Recognize analytical talent as a scarce and valuable
February 2011
their work groups to where analytical skills are read- resource — and manage it accordingly.
of duty. As they analyze grape supply, develop new promotion system that allows analysts to remain indi-
Layoffs associated with the Great Recession allowed tain provisions and eligibility requirements apply, but
hiring executives to cherry-pick from a flooded tal- employees who qualify will have the flexibility to work
ent market, but as the economic downturn slowly offsite should they need to do so.
reverses, business focus will shift from acquiring top Millennials and Generation X particularly value flex-
talent to keeping it. ible work arrangements for their impact on work-life
According to Shelly Little, CEO of Michaels Wilder, balance. Studies show these two demographic groups
a talent recruitment and retention firm, businesses almost always will choose employers that offer remote-
may be surprised to learn that retaining top talent office capabilities over employers that offer higher
doesn’t necessarily mean throwing buckets of money salaries but require rigid office attendance. According
at employees. Innovative strategies to keep employ- to Little, boomer and traditionalist generations are slow
ees engaged and involved yield better retention and to recognize the merits of this type of program.
motivation results than a token yearly raise. Focus on When Michaels Wilder first implemented ROWE,
creating and retaining exceptional talent by showing upper management was hesitant because the new pro-
employees that they matter. gram threw a wrench into an entrenched management
Little said one of the best ways to identify, reward and style. “It was a bit of a curve ball,” Little said. “But
keep top talent is to create internal opportunities for once management started participating themselves,
employees to take on high-profile projects that put they thought, ‘This is great. I can’t wait to do this more.
them in the spotlight. “We get them to work with se- Please don’t take this away.’”
nior levels of management,” she said. “This gives them Along with revenue generation, length of employee
the opportunity to understand the company hierarchy tenure is one of the top indicators of success, accord-
and move politically within the organization.” ing to Little. Small steps to make sure employees will
These types of projects also facilitate internal stay even 12 months longer can directly affect a com-
knowledge transfer. As the baby boomer and tradition- pany’s bottom line. Further, retention programs like
alist generations retire, it’s critical for organizations to the ones implemented at Michaels Wilder are not ex-
guard against knowledge drain. Creating opportunities pensive.
for newer employees to work on projects with senior “More tenured employees perform better, and that re-
talent facilitates knowledge transfer and boosts reten- sults in more revenue for the company,” Little said. “If
tion rates by making younger generations feel invested you’ve got employees who are engaged and involved
in the company. at work and stay with the company, they build and
Investing in remote-office technology is another way develop client, vendor and partner relationships. The
to attract and retain top talent. Michaels Wilder has longer they keep those relationships and the longer
adopted a program called Results-Oriented Work Envi- they stay with you, the bigger the tangible benefit in
ronment (ROWE), originally implemented by Best Buy. the form of increased revenue to your company.”
“
T
Enlightened leaders he management of knowledge workers
should be based on the assumption that
understand that knowledge the corporation needs them more than
workers contribute based they need the corporation. They know
they can leave. They have both mobility
on their strengths, crave and self-confidence. This means they have to be treated
autonomy over how they and managed as volunteers, in the same way as volun-
teers who work for not-for-profit organizations.”
work and want to be treated
– Peter Drucker, A Functioning Society:
as colleagues rather than Selections From 65 Years of Writing
subordinates. on Community, Society and Polity, 2003
February 2011
To compete effectively, companies in the pharmaceuti- Quintiles found a solution that satisfied all these
cal services industry must be able to demonstrate their requirements and rolled it out the across the entire en-
ability to meet customer needs around the globe. For terprise over a six-week period. Today, the solution has
most companies, this means being able to visualize and completely eliminated the need for administrative staff
present to prospective clients an accurate snapshot to manually create and maintain spreadsheets and org
of the current workforce and its capabilities. It also charts, which saves the company hundreds of labor
means that behind the scenes, the company must be hours annually.
able to incorporate HR data into decision making so it
can deliver on its promises and ensure that business Most importantly, visualizing the data exposed numer-
units around the world maximize ROI and operate in ous inaccuracies in the existing understanding of the
line with the company’s business goals. company hierarchy. By relying on current and highly
accurate data, Quintiles has significantly improved
Clinical research organization Quintiles, which has
workflow management. For example, the always up-
more than 20,000 employees and offices in 60 coun-
to-date view of the organization includes location,
tries, recognized it needed to make better use of HR
data to organize talent and enhance decision making. title, manager and employee status, providing man-
Previously, whether for operations or sales demonstra- agers with immediate access to the key employee
tions, the HR team was constantly overrun with calls information they need for planning, budgeting and
and e-mails asking for updated organizational charts daily operations. Further, managers around the globe
and confirmation of employee information. Dozens of always have the most current information when plan-
administrators across the globe were spending a great ning to hire, fire, promote, set bonus structure or pitch
amount of time manually creating and updating Excel- new business.
based charts on a weekly, and sometimes daily, basis. The new, up-to-date org charts, affectionately nick-
In addition to wanting to relieve administrators of named Q Charts, are useful for the sales staff. Now the
these time-consuming burdens, the company wanted team can easily show clients and prospects the com-
a tool that could quickly visualize accurate and up-to-
pany structure and hierarchy, demonstrating Quintiles’
date data from its previous system.
regional presence.
As Quintiles searched for a solution, it did not want to
The ability to visualize HR data and create pre-
create a new burden for the IT department. As a re-
sentation-quality org charts has helped to restore
sult, the company established three additional product
requirements: The new program needed to be an easy- management’s confidence in the accuracy of company
to-implement, on-demand solution; it needed to inherit data and its ability to deliver on promises to customers
security settings directly from PeopleSoft; and, in order and prospects.
to increase the adoption rate and save money, it needed
to have an easy-to-use interface that required minimal Ryan Kandel is director of the HR service center for Quintiles.
training. He can be reached at editor@talentmgt.com.
So why all the fuss about efficiency? It can be easily A Model to Increase Knowledge
measured. But that in no way means we can manage it, Worker Effectiveness
let alone change it, especially when talent leaders are “For the ‘knowledge workers,’ the question is less how
talking about knowledge workers. None of this means
much they produce than whether they direct their at-
that firms should ignore new technology and produc-
tivity tools. No one is endorsing Luddites. A different tentions to the right ‘product.’ It is effectiveness rather
argument is being made: Efficiency, in and of itself, than efficiency that characterizes their economic
is not a competitive advantage. It is the equivalent of contribution. And efficiency itself in the knowledge
having bathrooms — it’s a table stake. We need a new worker is much less a matter of the individual do-
framework to increase the effectiveness of people who ing more, as it is a matter of the group doing better.
work with their minds, not their muscles. These are new things. So far none of us, whether we
comfortable with intuition, judgment and discern- of Implementing Value Pricing: A Radical Business Model for
ment over measurements, as well as verbal, visual and Professional Firms. He can be reached at editor@talentmgt.com.
S
caling the corporate ladder was once the Project work has increased fortyfold over the past two
definition of professional success. But or- decades. In the same time frame, organizations have
ganizational hierarchy isn’t what it used to flattened, with University of Chicago Professor Ra-
be — and neither is today’s workforce. So- ghuram Rajan and Harvard Business School Professor
cial and demographic forces have changed Julie Wulf finding 25 percent fewer rungs for upward
the composition of today’s workforce across gender, advancement in a 2003 study of 300 large U.S. firms.
generation, family structure, cultural background and
Those numbers likely have not changed significantly.
other diversity lines.
Further, family structures have changed markedly.
A corporate lattice model represents a more flexible
approach to the way work is now performed and is a According to Catalyst, only 1 in 6 U.S. families mirror
fitting metaphor for how careers are built and talent is the traditional structure upon which the ladder model
developed. Further, lattice thinking is in use today, and was built, where the father works and the mother
lattice organizations are not simply stays at home. According to 2009’s “The Shriver Re-
reacting to forces but rather are re-
designing the rules of work itself. Figure 1. Shifting From Ladder to Lattice
The corporate ladder emerged at
the start of the Industrial Age as a
model for maximizing efficiencies
and economies of scale. It prof-
fers a worldview in which power,
rewards and access to information
are tied to which rung each em-
ployee occupies. It defines career
success as a linear climb to the top
and assumes that employees are
more alike than different and that • Traditional, hierarchical • Flatter, often matrixed structure.
they all want and need the same structure. • Distributed authority; broad
things to deliver results. • Top-down authority; limited information access.
information access. • Multidirectional career paths.
The changes prompting the col- • Linear, vertical career paths. • High workforce mobility;
lapse of this century-old ladder are • Low workforce mobility; loyalty is based on continuing
striking. Globalization and tech- loyalty is based on job security. opportunity.
nology are creating more virtual • Work is a place you go to. • Work is what you do.
and dispersed teams, and man- • Individual contributor-driven. • Team- and community-driven.
agement practices haven’t kept • Separation of career and life. • Integration of career and life.
pace. The shift from an industrial • Tasks define the job. • Competencies define the job.
economy to a knowledge economy
• Many workers are similar to • Many workers are different from
also means that 21st-century work
February 2011
commodate a range of needs — is indicative of this. For example, when the National Science Foundation
I
t was time to review the employee survey re- Research into employee engagement and retention
sults that her organization had disseminated shows that career opportunities are continually cited
several months ago. Anxiously, the talent man- as a major reason for both disengagement and turn-
ager picked up the first report. As she scanned over. A 2008 survey of 3,000 workers from multiple
it, her eyes caught one set of responses that had industries conducted by Career Systems International
reared its ugly head for the past few years: questions showed that 77 percent of employees believe they have
about careers and development conversations with more abilities than they are currently using in their
managers. work. Only 54 percent said they know how to find out
Again, the responses were disappointing. She leaned about career opportunities in their organization, and
back in her chair and thought about the efforts over 50 percent of managers reported that they know how
the past year to improve this area. Nothing seemed to to help their employees see the organization as a job
move the needle. Glancing over the comment section, market. These results are not surprising; employees
she read complaint after complaint. She knew that want to feel there are opportunities in their current
managers would not be thrilled when confronted with organization.
yet another request to do a better job conducting indi- HR leaders can make a positive impact by coaching
vidual development planning conversations. managers on how to use tried-and-true methods to
With a long sigh, she picked up her yellow highlighter engage employees. A mindset shift is required to help
and decided to power through. Actually, she couldn’t line managers use “whine sessions” as opportunities
wait to finish up and get home, maybe relax with a nice to delve into what’s really important to employees.
glass of red. There are many opportunities for conversations that
come from sincere inquiry. The question “What can I
The Whine List do to keep you satisfied, engaged and on my team?” is
rarely asked and provides great data. When answers
HR leaders for whom this is a common scenario are come couched in a complaint, the tone and negativity
in good company. Ever since the financial collapse of
can shut down the dialogue. If we can help managers to
2008, line managers have been under siege, with in-
see that people complain about what they care about,
creased pressure from the executives above to make
perhaps they will listen a bit deeper and a bit longer.
cuts, do more with less and keep the troops motivated.
Managers must understand that they don’t need to
Add to that increased discontent from the employees
move mountains. But they can make wise use of their
below, who are feeling overwhelmed, underutilized,
workers’ whine lists instead of simply succumbing to
frustrated, underpaid — and just plain unhappy with
fatalistic “here we go again” thinking.
their jobs. And when employees are unhappy, what do
they do when it’s time for their organizational surveys? The most important thing HR leaders can do is help
They unload. And what do embattled managers do in managers understand that what sounds like a whine
the face of this discontent? Many duck the topic alto- is actually an opportunity to understand employees’
gether and simply avoid opening Pandora’s box. The grievances and their specific requests for change. And
February 2011
rest? Well, they often unload on their HR leaders. when managers understand their employees better,
February 2011
feel they’re not being properly utilized get bored, frus- tions. When employees understand how to realistically
J
im Collins, author of Good to Great said, “The
old adage ‘People are your most important
asset’ is wrong. People are not your most im-
portant asset. The right people are.”
Experts agree that having the right people
in place directly translates into better business per-
formance — from increased operational efficiency and
productivity to higher revenue and profitability to im-
proved customer satisfaction and industry leadership.
However, finding the right people in today’s dynamic
business environment is easier said than done. Recruit-
ing is changing fast, with myriad challenges facing
those responsible for attracting, hiring and retaining
top talent.
The role of human resources has shifted within most
leading organizations, and HR practitioners are now
required to demonstrate value to the business. Tal-
ent acquisition helps organizations create and sustain
a competitive advantage by deploying the talent re-
quired to achieve corporate objectives.
Hertz, one of the world’s largest car rental brands, oper- Hertz established recruitment service level agreements
ates from approximately 8,400 locations in 146 countries. with business divisions; developed a global HR technol-
The company has undergone major transformation on ogy strategy, detailed process map reviews, alignment
a global scale since late 2007, when the Global Talent workshops and metrics; and supported applicant track-
Management Center of Expertise (GTM) was established ing implementation.
under the leadership of Karl Heinz Oehler. The global recruitment future state process includes
At that time, Hertz experienced high levels of volun- four components:
tary employee turnover within the first 90 days of • Plan: Identify talent need; create and submit requisi-
employment, which adversely impacted cost per hire, tion for approval; and schedule intake meeting.
service delivery, business growth and customer satis-
faction. The GTM team partnered with internal Lean • Attract: Identify sourcing channels; post internally,
and Six Sigma resources to identify opportunities to externally or both; tap into high potentials and suc-
cessors; review resumes; and screen candidates.
remove waste or duplication and uncover root causes
of turnover. • Assess and select: Phone screening; a minimum of
two interviews, at least one face-to-face; relevant
Hertz began its talent acquisition strategy by identify-
assessment exercises for shortlisted candidates;
ing key recruitment goals. These included:
schedule second interview; make hiring decision;
• Establish a world-class recruitment model focused make verbal offer; and confirm acceptance.
on sourcing and selecting the best candidates through
• Offer and on-board: Complete background check;
cost-effective methods.
confirm start date; prepare offer letter; send welcome
• Establish a global recruitment process to drive con- packet; invite new hire to on-boarding portal; close
sistency and consider local needs. requisition; and notify unsuccessful candidates.
• Develop, implement and measure recruitment effec- Hertz’s recruitment process is supported by iCIMS
tiveness to enable Hertz to be the preferred employer talent acquisition technology deployed globally. This
in the marketplace. technology offers the flexibility to configure the system
based on local needs and requirements, which is im-
• Create clearly defined and transparent ownership of
portant to meet the needs of future state processes. In
the process to enable a seamless flow through the re-
addition to enabling a more efficient candidate recruit-
cruitment life cycle.
ment and screening process, the technology delivers
• Transition the role of recruiter from transactional re- information, metrics and analytics to help business and
cruitment support to strategic talent adviser, talent HR leaders improve decision making.
scout and sourcing expert. The ability to aggregate this data provides the organiza-
• Achieve significant turnover cost reduction through tion with real-time information to assess recruitment
best-in-class retention practices, providing pro- centers’ performance, identify process bottlenecks and
cesses, tools and policies deployed globally. make decisions on ways to improve service delivery and
process efficiencies. Hertz is reducing its risk by provid-
Hertz partnered with Knowledge Infusion to support
ing accurate information in a timely manner and also
the implementation of this global strategy in 2009.
integrating people, process and technology to create a
In December 2008, Hertz decided to centralize recruit- holistic solution that maximizes return on investment.
ment internally and transform the way services are For years, talent leaders had disparate recruitment and
delivered to the business. Specifically, Hertz’s talent on-boarding processes and systems, which limited their
acquisition strategy was designed to deliver reduced effectiveness as strategic business partners. Now they can
overhead costs by consolidating recruiting activities in deliver world-class recruiting services and efficiencies,
central locations, as well as flexibility to meet chang- create powerful candidate and new-hire experiences, and
ing business needs in unpredictable economic climates. ensure the right talent is in the right place at the right
As part of its HR service delivery, Hertz sought to time.
implement best-practice recruitment and selection
methodologies to increase operational efficiencies and Vanessa Flynn is the talent acquisition strategic lead at Hertz.
enhance new-hire quality and job fit. She can be reached at editor@talentmgt.com.
the development and implementation of a talent acqui- Knowledge Infusion’s KI OnDemand Service. They can be
sition strategy, can be a daunting task. reached at editor@talentmgt.com.
Talent Excellence
Tom Capizzi established HR centers of excellence at DJO Global
to help bring the company together around eight core values.
Capizzi:
over the past three years. After this period of growth, As you’re looking internally into
the human resources function at DJO Global un- your organization, you’re looking at
dertook a significant challenge as it worked to bring the success of those core values. Are employees dem-
disparate parts of the company into a cohesive whole. onstrating what they said they would do? Are your
Tom Capizzi, executive vice president of global human directors enforcing people growth? Are they developing
resources at DJO, helped redesign the HR function those folks? Then you’ve got the right talent to move up
around centers of excellence to provide service-fo- in the organization. When you do recruiting that way,
cused functionality to the global team. then engagement and retention are key parts. How do
Capizzi instituted a core value system called The DJO you keep people engaged and focused? In this market,
Way and aligned the integration of its various compa- it’s been easier over the last year or so because the
nies’ product lines, people and cultures around eight market has been so slow. Companies have seen a slow-
values: continuous improvement, customer focus, down in people who want to leave. There obviously
open to new ideas, corporate citizenship, teamwork, aren’t a lot of jobs available out there. But that’s going
enforcing people growth, urgency and accountability, to change. As the market continues to grow, we’re go-
and consistently exceeding expectations. He said these ing to see key people leave the company if we’re not
would give the company a common language so every- focused on retaining them.
one can understand the mission and vision. The key to retention is career development. Employees
think, “Where am I going? Is the company investing in
Capizzi: We talk a lot about aligning people’s mately, the core for retention is around development.
objectives and the goals of company Employees are considering, “I think I’m a talented in-
together. It leads to optimal workforce performance dividual, but where is this company taking my talent,
because they have a better feel of what they do and and where can my talent take me?”
how they affect the end users. The end user is a patient
who’s using one of our braces or one of our physical
therapy products. What an employee does on a day- TM: How do you handle succession planning at
your organization?
Capizzi:
to-day basis, whether they’re building the product, Now that we have an established
working in customer care, selling to the patients, or if core of our business and can pro-
they’re in finance or HR, any one of those organizations mote from within, we tend to move people around
may not directly touch the customer or patient, but in- quite a lot. We challenge employees to take on new
directly, they do. challenges domestically and internationally. We try to
We created an image of these eight stackable boxes that get folks exposure to a global understanding of DJO,
are our values, and that image is displayed throughout as we are growing on the international side of health
the organization worldwide. We’ve even translated it care, and what we do on the orthopedic side is seeing
into the six or seven different languages that we work huge growth on the international front. Getting more
in, so employees are constantly seeing it and feeling it. employees to understand that is key to DJO’s success.
Our employees are also engaged in a values campaign Many years ago, the international assignment was ex-
right now worldwide. Every six weeks we talk about citing, depending on how long and where. If you can go
one of these values and what it means to them and and not be burdened with a language barrier, it made
how they can take it and equate it to their work. We it a lot easier to bring people across. The tax process
have a system in place where employees can identify has changed as well. In the past, there was tax equal-
and recognize their colleagues for demonstrating these ization and tax protection for expatriate employees.
values. We give out awards, or value bucks, that they
February 2011
Navigating
Change Together
Effectively managing talent through change will go a long way to ensure
that employees are aligned with the overall business strategy and are
committed to doing their part to achieve business goals.
The uncertain economy forced many companies to cut Employees find it challenging to adjust and adapt
costs in the face of declining revenues. The resulting quickly to change. Organizational change initiatives
impact set in motion cycles of disruptive organizational are typically not supported with follow-through com-
change. Some managers have struggled to handle the munications to reinforce the decision, explain the
pace of change, and engagement, retention, productiv- rationale or provide support to those affected. This
ity and performance are all suffering as a result of poor creates employee stress and adds to the ambiguity
communication, erosion of trust, lack of customer fo- around their role or connection to the future success
cus, ineffective strategic thinking and the inability to of the organization. When employees lack clarity, they
link the workforce with business strategy. founder and stress levels rise. When employees are
bewildered by change and struggle to cope, negativ-
How are employees feeling amid this barrage of con-
ity grows. Productivity suffers as negative discussions
tinual change? A survey of 2,904 workers conducted
and rumor mills take priority over normal business
by Right Management in August 2010 revealed that
activity (Figure 2). Inward focus, mistrust and uncer-
employees are working longer hours (Figure 1), and 79
tainty harm customer service, and lowered morale
percent reported their workloads increased as a result
permeates throughout the organization.
of layoffs at their company. Fewer than half of employ-
ees leave their desk to take a lunch break each day. The worst thing talent managers can do is remain si-
lent and tolerate bad attitudes. Rather than being seen
Increased workloads, decreased confidence in corpo-
as people who can lead others to a better future, lead-
rate direction and growing mistrust of leadership have ers who are viewed as contributing to negativity are
raised employee negativity while lowering productiv- seen as part of the problem, which can undermine au-
ity. Consequently, a significant number of employees thority, optimism and effectiveness.
are likely underperforming because of poor engage-
ment. That’s why employers must focus on managing
change, engaging employees and building skills and Breaking the Cycle
behaviors that both employees and employers need to Talent managers are in a strong position to break the
thrive in today’s dynamic business climate. workplace negativity cycle by educating and inspir-
ing others to embrace a positive attitude. It’s essential
that managers develop key behaviors necessary to lead
Recognizing Signs of Negativity
change effectively, such as communicating openly,
Productivity can suffer in a workplace characterized honestly and frequently while also encouraging au-
by criticism, spiteful gossip and lack of teamwork. thentic discussions with employees. Organizations
Surveys of 1,404 HR professionals conducted by Right that do not manage change well are more likely to
Management in September 2010 showed that more lose talent. Some practices to lead others positively
than 61 percent of organizations suffer from excessive include:
negativity that harms performance and productivity.
Nearly 2 out of 3 senior executives and human re- • Set expectations. Help employees have a clear un-
source professionals indicated that negativity in the derstanding of what’s expected of them at work. This
workplace makes it difficult for workers to focus on involves regular discussions to clarify goals, work-
their jobs. loads and deliverables.
In many cases, negativity is ignored. Most people don’t • Communicate the vision. Provide employees with
like confrontation, so it’s easier to turn a blind eye and a line of sight for how they can contribute to meeting
put up with it or, even worse, begin to contribute to customer needs. This involves alignment with the
the negativity. Instead, managers should address nega- firm’s vision and mission and a clear understanding
tivity by coaching alternate behaviors — ones that are of what each individual employee can do to contrib-
more productive to the situation, such as not complain- ute to the organization’s purpose.
ing without offering suggestions, helping employees to • Develop employees. Offer training and career de-
February 2011
be more self-aware and not tolerating whining. velopment to help both managers and employees feel
Driving Growth
in a Storm
Lincoln Financial Group’s HR team implemented an executive development
program to grow and sustain talent during economic crisis and beyond.
This last recession pressured many companies to Professors from Wharton worked with the HR team
cut back on investments, reduce staffing levels and to design a custom, weeklong residential program,
restructure operations. Financial services company funded by Lincoln, for the company’s top 60 corpo-
Lincoln Financial Group was no exception. rate leaders. The program formed the basis of the
In the midst of making decisions about expense re- company’s broad-based enterprisewide develop-
ductions, Lincoln CEO Dennis Glass stressed the ment curriculum, which focused on delivering on
importance of investing to prepare leaders for the the CEO’s key goals — that all leaders at Lincoln
eventual recovery and re-engaging the workforce at share a common language and approach to problem
a time when many companies would not be focused solving, collaboration and strategic planning — and
on talent development. To carry out Glass’ vision, the
Lincoln HR team designed a leadership excellence
program that would develop the leaders needed to
drive Lincoln’s growth in the coming years.
ment levels remained steady and in some areas even classroom experiences, online self-directed learning
increased compared to a similar survey conducted in modules, virtual learning experiences, reading lists,
tutorials, immersion and consultative experiences In addition to employee growth and positive feedback,
with industry experts. the LEAD program has had impact beyond the realm
To maintain the program’s effectiveness, Lincoln con- of talent development and employee engagement by
tinues to meet regularly with academic advisers from strengthening customer relations, which ultimately
Wharton and periodically conducts follow-up needs can boost bottom-line sales. A number of customer
assessments. firms have requested that Lincoln Financial help them
connect with Wharton in order to build out their own
Within six months of the conclusion of the first Whar- internal training programs.
ton residency program, participants from Lincoln’s
distribution company, Lincoln Financial Distributors The program also has allowed the company to align
(LFD), requested to use materials from the Wharton its leadership under a framework of consistent de-
program for an upcoming meeting with a strategic velopment that strengthens the talent pipeline and
customer firm. The HR team went one better and ar- boosts leadership at every level of the organization.
ranged for Wharton to lead a small-group working To ensure the program continues to deliver value,
session at the meeting. Since then, the HR team has written evaluations and one-on-one interviews from
partnered with LFD to share industry and manage- participants are collected. HR also holds monthly
ment insight, including the importance of scenario meetings to discuss feedback, gauge program suc-
planning, with key customers. While it is a somewhat cess and focus on opportunities for improvement. As
unusual partnership between talent management and the LEAD program continues to evolve, the HR team
sales, this is a natural extension of Lincoln’s company will conduct quarterly program assessments to fur-
culture, enhancing the company’s reputation as a ther measure success.
learning organization and underscoring its commit- Through the economic crisis, Lincoln Financial weath-
ment to its customers. ered the storm by remaining committed to learning
and development at all levels and even taking steps
Future Growth to provide more development. The company’s lead-
Lincoln’s aim in launching the program was to pre- ers take the position that, as the economy improves,
pare for the future by anticipating talent needs and companies that focused on talent, innovation and
providing a workplace environment where employ- business growth will be poised to emerge as leaders in
ees at every level can develop their career potential. the new era of the insurance industry. The HR team at
Over the past two years, the HR team has worked to Lincoln Financial Group is vigilant that it must foster
instill the leadership development program as a top a learning environment that positions Lincoln’s work-
priority among all of Lincoln’s 7,500 employees. Since force and leadership team for continued success.
formally launching in 2009, Lincoln’s programs have
trained approximately 1,200 employees per year and
Lisa Buckingham is senior vice president and chief human
have provided more than 1,400 individual learning
February 2011
Now companies can’t afford what they used to pro- focused, so there’s an environment where all employees
vide for expatriates. With all the social and economic can go to a center of excellence, like employee services,
issues out there, there’s probably more cushion for and they can provide you with information or data you
an employee to want to go to France, England or Ger- need to be successful in your day-to-day job.
many. Unfortunately, our society is leading us away One center of excellence handles employee benefits,
from people willing to do that because of the nature of disability issues and common policy questions. This
terrorism and other things we’re dealing with. You’re could be anything around their job description and ca-
seeing less people raising
their hands and taking a
two-year developmental
assignment. You’ll see less
long-term assignments “It can’t remain the same for us to
and more short-term as-
signments — we’ll send
continue to be competitive and be
someone on a project for
six months. There’s less
a key player in the global market as
of that permanency and we are today. We have to continue
commitment to uproot
families, sell your house to change.”
— you don’t see much of
that. Especially as we go
to other countries like
– Tom Capizzi, Executive Vice President,
China, Japan or Brazil, Global Human Resources, DJO Global
you’ll see people raising
their hands for shorter as-
signments.
reer planning, so this service organizational model will
Capizzi: As we look at where health care is and help us manage our workforce going forward.
going, DJO has to evaluate some It’s making sure we’re providing the type of learning
areas of growth. Perhaps we’ll be looking at new busi- management systems for employees to be successful.
ness models. The way we sell, distribute and develop Employee relations, training, compensation [and] bene-
products is going to change. It can’t remain the same fits — ultimately the rewards [and] recognition system
for us to continue to be competitive and be a key side of HR is an important aspect of it as well. All the
player in the global market as we are today. We have typical functions of HR, we’ve changed them into cen-
to continue to change. The next steps for our organiza- ters of excellence.
tion around talent management are to make sure we Each center has a head, either a [vice president] or
don’t do that in a vacuum. We don’t create a business director, who is responsible for that piece of manage-
model, say we’re going to do this, then come back and ment of effective HR worldwide. They’ve built and
look at what kind of people we need. Talent manage- developed a strategy around what that means and
ment is a parallel process that goes side by side with how to support that. The centers of excellence work
product and market innovation, change and strategy. closely with each other and are specific to employees’
As we look at new markets, we’re going to focus on needs. Each is a core functionality of HR focused at a
whether we’re developing the right workforce within more global, strategic level that helps drive employee
and where we can find a workforce for the future ex- capability.
ternally, if necessary.
The HR business partner role, which is clearly the
core of where HR needs to focus, is working closely
TM: What is your vision for HR and talent man-
agement moving forward?
with leadership and ultimately getting us engaged at a
higher strategic level, not dealing with day-to-day tal-
excellence are designed in key areas. They are service- is moving in that direction.
Negative judgment is projected toward the organi- • Be flexible. Create flexible structures to accom-
zation’s leadership team, which isn’t establishing modate different lifestyles and work motivators.
appropriate working boundaries and guidelines with Employees want control over where, when and
employees. how they work, as well as the career choices they
make. Embrace a “one-size-fits-one” approach and
• Focus: Prioritization and focus gets skewed. Leaders
understand the different motivators and needs for
need to coach employees to make their own decisions
individual employees. One employee may benefit
and to effectively prioritize their work so they are
from flexible work hours to accommodate the needs
focusing their time and energy on top-level projects
of parenting school-aged children, while another em-
that positively contribute to performance. ployee may flourish from permission to work out in
the morning and stay later in the day.
Managing Talent in the New Normal
• Reward accomplishments. Don’t focus on reward-
As organizations recover from the global financial cri- ing individuals for the time they put in at work, but
sis, the reality is flatter organizations, constricted hiring, rather for what they achieve and accomplish. If one
cash conservation, heavier workloads and disgruntled individual’s goal is to retain customers through ex-
employees. cellent service, allow that employee the freedom to
The conditions today are here to stay. Managers need achieve this, perhaps by working flexible hours to
to provide guidance and coaching to employees to help meet customer needs as they arise and not sticking to
them be more agile and work in this changing, increas- an 9-to-5 schedule.
ingly pressurized work environment. • Prioritize. Equip employees with decision rules to
Some practical suggestions for talent managers include: be able to identify what’s important so they can fo-
cus their time appropriately. Empower employees so
• Increase collaboration. Work on collaboration they have the ability to decide the priorities and subse-
skills, such as utilizing cross-functional teams, quently have a greater vested interest in what they’re
learning how to manage diversity well or adopting doing. But empowerment turns to abandonment if
software sharing services to increase effectiveness. leaders aren’t providing road maps for people to use in
• Be realistic. Help employees by setting realistic ex- the decision process. For instance, if a company’s val-
pectations so they’re more likely to be successful in ues focus on customer service, teamwork, innovation
completing tasks within reasonable time frames. and work-life balance, a leader must inform people
which values are the top drivers, otherwise employ-
• Promote self-management. More and more, indi- ees may not know how to react when work situations
viduals are expected to be self-directed. For instance, force them to choose one value over another, such as
consider the increased ranks of virtual workers and customer focus and work-life balance.
the autonomous skills required to be successful in
such an environment. Nurture self-management Effectively managing talent through change will go a
skills in employees, such as adaptability, autonomy, long way to ensure that employees are aligned with the
decisiveness, dependability, tolerance for stress and overall business strategy and are committed to doing
their part to achieve business goals. Preparing work-
resourcefulness.
forces to respond confidently and competently reduces
• Communicate frequently and consistently. Com- negative reactions, mitigates the risk of turnover, im-
municate with authenticity and stay in touch with proves morale and boosts productivity.
workers consistently and regularly. Hold brief
weekly calls or meetings to make sure team members
Michael Haid is senior vice president of global solutions
are aware of priorities, updates on the business and
February 2011
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