Best-in-Class Organizations Don t Leave Talent Assessment to Chance Brought to you by:

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Best-in-Class

Organizations Don’t Leave Talent

Assessment to Chance

September 28, 2010 Brought to you by:

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© AberdeenGroup2009

Today’s Speakers

Mollie Lombardi, Sr. Research Analyst

Aberdeen Group

Robert Weigand, Director of Organizational Development

St. Luke’s Hospital & Health Network

Tanya Markovich, Director of Workplace Initiatives

St. Luke’s Hospital & Health Network

Catey DeBalko, Vice President, Marketing

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Agenda

 Thinking There

 Assessments as a foundation for talent decision

making

 Getting There

 The tools needed for the journey

 Living There

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Thinking There

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Alignment = Productivity and Performance

Effort Business Results Pre-alignment Post-alignment Increased results via better alignment Alig nm ent

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Better decisions throughout the talent

lifecycle

73% 63% 44% 0% 25% 50% 75%

Improving quality of hire Identifying high-potential talent

Identifying skill / competency gaps for each job role

per c entage of r es pondents , n= 264

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Top Performers Use them More Widely

22% 21% 19% 35% 43% 40% 38% 18% 21% 24% 26% 15% 0% 25% 50% Individual contributors Front-line managers Mid-level managers Executives per c ent age of r e s p ondent s , n= 264

Best-in-Class Industry Average Laggard

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Top Performers use them Differently

4.58 4.52 4.31 4.20 4.00 4.12 3.94 3.40 3.67 3.18 4.14 3.70 3.27 3.40 2.92 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 Identifying candidates likely to have the greatest impact Identifying competency gaps for individuals Identifying team fit and building

teams Evaluating promotion readiness of employees Assigning team members based fit P e rc ent a ge of r e s p ondent s , n= 264

Best-in-Class Industry Average Laggard

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Assessments are Differentiating Top

Performance in Succession

68% 62% 53% 53% 31% 33% 23% 30% 20% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% Skills-based assessments Assessment tools that measure readiness and gaps Data w arehouse or repository Talent profile repositories Forecasting or predictive analytics softw are P e rc ent age of R es pondent s , n= 268

Best-in-Class All Others

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Driving post-hire performance

 Best-in-Class Companies are more than

times

as likely to use assessments to measure readiness / identify competency gaps as part of their development and succession efforts

 Best-in-Class Companies are

2 times

as likely

to use skills assessments as part of their development and succession efforts

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So, Why Assessments?

Impact Throughout the Lifecycle

57% 21% 14% 10% 46% 12% 8% 4% 0% 20% 40% 60%

Positions w ith ready and w illing successors Improvement in hiring manager satisfaction Improvement in cost per hire

Change in profit per FTE per c ent age of r e s pondents , n= 417 Using Assessments Not Using Assessments

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The Rewards of Top Performance

19% 19% 23% -3% -6% -2% 12% 9% 15% -10% 0% 10% 20% 30% Change in profit per FTE Change in revenue per FTE Reduction in cost per hire

Average Year-over-Year Change, n = 264

Best-in-Class Industry Average Laggard

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Getting There

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SLH&HN

 SLH&HN was facing host of industry and

operational challenges ranging from staff retention to cost containment and patient satisfaction

 Created a leadership steering committee

 Conducted a site visit exploring best practice

leadership development models - Delnore

Hospital, Ohio & Baptist Healthcare System, FL

 Committee identified five operational imperatives

and designed a leadership development initiative & goals

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Key Capabilities

89% 89% 85% 76% 74% 77% 48% 74% 65% 62% 0% 25% 50% 75% 100% Senior executives support assessment efforts

Competencies for all job roles have been

defined Employees understand how assessments are conducted and interpreted HR and/or managers are trained to apply assessment results Qualified professional is available to interpret assessment results Best-in-Class All Others

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Performance of Organizations Using Assessments to Measure Readiness and Identify Gaps

76% 75% 62% 48% 71% 56% 41% 30% 0% 20% 40% 60% 80% Retention of high-potentials Time-to-productivity among new ly promoted leaders Performance among new ly promoted leaders Bench strength Using Assessments Not Using

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Change in performance of Organizations Using

Assessments to Measure Readiness and Identify Gaps

11% 5% -5% -9% 7% 0% 1% -3% -10% -5% 0% 5% 10% 15% Employee engagement among successor candidates

Revenue per FTE Cost to fill key

leadership positions

Time to fill key leadership positions

Using Assessments Not Using

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The Journey

 2001 – Myers-Briggs® Type Indicator (MBTI®) assessment

 Manager  Employee

 2004 – CPI™ 434 assessment

 Hire for fit & reduce manager turnover

 2005 – CPI 434 & MBTI assessments

 Leadership development & coaching for new hire managers

 2008 – CPI 434, MBTI, Watson-Glaser II, TKI and EQ

assessments

 Leadership Support & Development Program for existing

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Competency Model Integrated with Talent

Management Processes

78% 80% 85% 73% 69% 61% 72% 47% 0% 25% 50% 75% 100%

Talent acquisition Learning & development Performance management Succession planning per c ent of r e s pondents , n= 206 Best-in-Class All Others

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Integration Drives Top Performance

Organizations that integrate their competency definitions across all four talent management

processes are five times likely as to achieve Best-in-Class performance as those that do not

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Key Competency Management Capabilities

37% 30% 18% 90% 88% 80% 73% 83% 75% 57% 54% 48% 0% 25% 50% 75% 100% Organizational competencies agreed to by senior management

HR & hiring managers collaborate to define job role competencies Existing employees assessed against competency profiles Candidates assessed against competency profiles per c ent of r e s pondent s , n= 206

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74%

of Best-in-Class organizations make sure that a qualified professional is available to

interpret assessment results (either on staff, our through partnerships with solution

providers), and are 37% more likely than Laggards to do so

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Organizations with individuals trained to

interpret assessments are more satisfied

23% 48% 13% 42% 0% 25% 50%

Extremely satisfied Somew hat satisfied Qualified Interpreter

No Qualified Interpreter

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Performance of organizations with

individuals trained to interpret assessments

Source: Aberdeen Group, Talent Assessment Strategies, March 2010 12% 9% 78% 75% 59% 51% 21% 74% 72% 46% 47% 19% 0% 25% 50% 75% 100% New -hire retention Time to productivity

Benchstrength New -hire

performance Change in hiring manager satisfaction Change in profit per FTE Qualified Interpreter No Qualified Interpreter

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Living There

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The Results

 Reduced turnover & increased retention

 2006 brought 41% manager vacancy rate down

to 10%

 2009 manager vacancy rate is 2%

 Increased employee satisfaction (based on 3

concurrent years of data – 2007, 2008, 2010)

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Top 10 Takeaways

1.

Build, buy, rent or borrow a

competency framework

2.

Get stakeholders on board

3.

Start with the hard stuff (skills)

4.

Move assessments into the post-hire

5.

Define the metrics

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Top 10 Takeaways

6.

Tie to business results

7.

Tie back to candidate sources

8.

Make sure the results are used

correctly

9.

Don’t forget the HARDER stuff

(behavior and fit)

10.

Integrate assessment data throughout

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Thanks for your interest!

 Mollie Lombardi

Senior Research Analyst, Human Capital Management mollie.lombardi@aberdeen.com 617-854-5216  CPP, Inc. www.cpp.com custserv@cpp.com 800.624.1765

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