Top 22 Processes That Drive Business Impact

Posted on
Share on Google+Share on LinkedInShare on FacebookShare on RedditTweet about this on TwitterEmail this to someone

<p><strong>Oakland, Calif. &mdash; May 21</strong><br />Bersin &amp; Associates has released its latest research&nbsp; report, &quot;High-Impact Talent Management: Trends, Best Practices and Industry Solutions.&quot; </p><p>The study is based on input from more than 750 organizations and 15 vendors, as well as interviews with 55 senior HR executives, and it ncompasses more than 1 million data elements.<br /><br />This 400-page study is the first to examine all aspects of corporate talent management, including global business drivers by industry, top talent gaps, talent trends and adoption rates of 62 talent-related processes in eight functional areas.&nbsp; </p><p>The research also provides data that can be used to help companies benchmark their strategies against organizations of similar size and in similar industry segments.<br /><br />Among its many findings is the identification of 22 talent management processes that have the strongest correlation with business impact.&nbsp; </p><p>These include coaching (formal and informal), consolidation of staffing requirements across the enterprise, strategic workforce planning and the identification of critical competencies for key job roles.&nbsp; </p><p>This list can help organizations prioritize their focus when creating or revamping talent management strategies.&nbsp; </p><p>The study also includes best practices and case studies that illustrate how these processes are executed in leading organizations today. <br /><br />&ldquo;Business and economic growth, changing workforce demographics and constrained corporate spending have collided to create daunting talent-related business challenges,&rdquo; said Josh Bersin, president of Bersin &amp; Associates. &ldquo;We found that carefully crafted talent management strategies can address these challenges and significantly improve business outcomes. Organizations without such talent management strategies are at a tremendous disadvantage. Unfortunately, our research shows that many companies fall into this category.&rdquo; <br /><br />The research highlights the depth and breadth of corporate talent challenges.&nbsp;&nbsp; </p><p>More than half of respondents (53 percent) reported critical shortages among line manager positions, 48 percent identified critical shortages in engineering and other technical professionals such as nurses and 39 percent reported critical shortages in sales professionals.&nbsp;&nbsp; </p><p>The research shows talent shortages across all industries, with particularly urgent problems in health care, government, utilities, telecommunications, and oil and gas.<br /><br />&nbsp;<br />The top talent challenge cited by organizations is a lack of qualified managers. This leadership gap, cited as critical by 51 percent of respondents, illustrates the difficulties involved in identifying, hiring and developing midlevel managers. <br /><br />Bersin cited an example of a leading defense contractor that has developed a comprehensive, multiprong talent management strategy to recruit and develop technical professionals and managers in response to a workforce analysis that revealed a shortage of 45,000 technical professionals by 2010. </p><p>Such mature solutions are rare. Bersin &amp; Associates research showed only 21 percent of responding organizations have some talent management strategy in place and fewer than 5 percent have implemented a clear strategy with operational plans and executive ownership.<br /><br />Upon analysis of 62 talent-related processes in eight functional areas, the study identified 22 processes that drive the highest levels of business impact.&nbsp; </p><p>The three functional areas driving highest impact are performance management (34 percent improvement), competency management (31 percent improvement) and sourcing and recruiting (27 percent improvement).&nbsp;&nbsp; </p><p>Other key initiatives important to talent management include leadership development, succession planning, workforce planning and HR systems.<br /><br />&ldquo;Our research identified highly refined sourcing and recruiting, performance-based coaching and identification of key competencies as the processes, which drove greatest business results,&quot; Bersin said. &quot;Organizations that integrate and optimize these processes can create a high-performance culture, a deep understanding of critical talent needs and future shortages and a clear view of the best sources for new talent.</p><p>&ldquo;It is no longer enough to simply work harder to recruit and manage people. Organizations must now work smarter and take a holistic and integrated approach to identify, source, recruit and develop talent.&rdquo;<br /><br />The study also found that although the market for HR talent management software rapidly is growing, these systems alone do not create significant business impact.&nbsp; </p><p>&ldquo;On average, organizations with talent management software solutions are only 8 percent more effective at solving the business problems we identified than those without, and in some cases, the introduction of technology creates negative returns,&rdquo; Bersin said. &ldquo;Talent management is a business problem that must be solved through senior executive commitment and a focus on integrated talent management processes. Software can assist with these improvements, but it doesn&rsquo;t create improvement.&rdquo;<br /><br />Other findings include:</p><ul><li>Business executive ownership is a key driver of successful talent management solutions. Organizations with a top executive owner are more than 35 percent more effective than those with programs owned by HR executives.<br /></li><li>Corporations clearly recognize the need to improve their talent management strategies. Only 4 percent of respondents think they have world-class processes for talent acquisition, management, development or compensation.</li><li>Leadership development and succession planning are the top areas of focus for HR executives. When asked what area is most in need of overhaul or revamping, 36 percent cited leadership development, and 30 percent cited succession planning. <br /></li><li>Learning and development investments are in need of realignment. Only 34 percent of surveyed organizations have learning and development programs that are fully aligned with the organization&rsquo;s talent management needs.<br /></li><li>Sourcing and recruiting, one of the top opportunities to drive business impact, is becoming a science based on workforce analysis, demographic and competitive analysis, targeted marketing and centralized control. Organizations with centralized sourcing and recruiting functions (only 40 percent of the market) are 14 percent more effective than those with distributed recruiting teams. <br />&nbsp;&nbsp;&nbsp; </li><li>Although only about 10 percent of respondents have adopted integrated talent management systems, those with such suites have a 60 percent higher return when compared with those organizations with unintegrated HR software applications. </li></ul><p>&ldquo;Talent management problems and solutions are very business-specific,&rdquo; Bersin said. &ldquo;Each best practice we studied was crafted to meet the needs of that company&rsquo;s market, products and services, culture and competitive issues. Forward-thinking organizations are rethinking the way HR is organized to improve its integration and alignment with specific business challenges.&rdquo;</p>

Share on Google+Share on LinkedInShare on FacebookShare on RedditTweet about this on TwitterEmail this to someone


Posted in Archive|