Workforce Management
Talent Management Tactics
-Develop an integrated, proactive talent management strategy. View "employer of choice" status as an outcome of a coherent organizational culture rather than ad hoc programs. -Share accountability for recruitment and retention with the organization's line managers. -Know the organization's business environment, plans, and competitive climate. -Know what factors contribute to difficulties in attraction and retention. -Keep various retention factors in balance. -Track turnover. -Track successful talent management situations and then capture and repeat best practices. -Market the organization and its brand to current employees as vigorously as to the outside talent pool. -Align compensation practices to support talent retention and commitment.
Ingredients for Effective Succession Planning
-Visible support from senior leadership and all members of top management -Clearly defined leadership criteria -Defined plan to find, retain, and motivate future leaders and high-potential employees -Simple, easy-to-follow, measurable process -Use of succession planning to reinforce organizational culture -Process that focuses heavily but not exclusively on leadership development -Process that is a real organizational priority
Evaluating the Talent Management System
All talent management programs should be evaluated on a regular basis to ensure the effectiveness of each program in helping to maintain a high-performance workforce. Methods for measuring talent management effectiveness include: -Evaluating the percentage of positions for which there are internal successors. -Comparing the number of external hires to internal promotions. -Evaluating the differentiation of pay between performance levels. -Identifying high-potential employees and reviewing their corresponding retention rates. -Tracking retention and turnover rates at all levels of the organization.
Flexible Staffing
Also referred to as alternative staffing, flexible staffing uses alternative recruiting sources and workers who are not regular employees. Many staffing approaches are possible other than conventional full-time arrangements where the organization directly hires, supervises, and provides compensation and benefits to regular employees.
Domain Box #1
An organization's strategic plans should generate a list of the workforce capabilities needed to execute business strategy as well as a monetary value for each capability based on how critical it is to generating new revenues or reducing costs. Then, as with a well-managed supply chain, employers should compare the competencies they need with the "inventory" (workforce) they actually have. The gap between the ideal and the real can keep learning needs (and budgets) in line because it will sustain a focus on what people really need in order to be competent and to execute strategy.
Domain Box #3
As part of their talent management responsibilities, human resource professionals must be able to anticipate the future talent needs of the organization and foresee what the potential employee pool will look like when those organizational needs become a reality. Used appropriately, talent pools can be created and developed to fill the gaps between the talent that the organization will need and the talent that is likely to be available.
Evaluating Succession Planning
At the onset of succession planning, standards should be established about what success looks like and metrics identified as to how program success will be measured. Standards and metrics used to evaluate succession planning will vary but should generally attempt to assess: -Employee satisfaction with personal development initiatives. -Management satisfaction with employee performance and job readiness. -The extent of goals achieved and the time to full-function attainment. Succession planning helps to provide continuity in leadership and avoid extended and costly vacancies in key positions.
Demand Analysis
Considers the model organization of the future and its human capital needs. Once the supply model is developed, data can be compared to the demand analysis projections and gaps can be identified, including numbers of employees and gaps in skills. -Judgmental forecasts apply expert judgment to information from the past and present to predict future conditions and staffing needs and to understand opportunities and threats that can affect the staffing plan. To effectively use judgmental forecasting, HR needs estimates of: -New positions or skill sets needed. -Positions to be changed, eliminated, or left unfilled. -Job sharing. -Job design needs or organizational structure changes. -Costs of changes. -Adjustments in overhead, contracted labor, and supervision. Statistical forecasts generally fall into two categories: regression analysis and simulations. These techniques have many uses but are illustrated here in the area of workforce planning. -Regression analysis can be subdivided into two types: a. Simple linear regression is a projection of future demand based on a past relationship between employment level and a single variable related to employment. b. Multiple linear regression operates the same as simple linear regression, except that several variables are utilized to project future demand. -Simulations are representations of real situations in abstract form; they are often referred to as "what if" scenarios. They provide organizations with the opportunity to speculate as to what would happen if certain courses of action are pursued.
Talent Management
Development and integration of HR processes that attract, develop, engage, and retain the knowledge, skills, or abilities of employees that will meet current and future organizational needs. The goal is to increase workplace productivity by supporting the development, engagement, and retention of high-value employees. An effective talent management strategy is shaped by an organization's: -Expectations regarding the differentiation of talent. -Overall philosophy regarding integration versus local differentiation. -View of the role that line leaders have in the development of people. -Philosophy regarding the movement of people across borders, businesses, and functions. -View of the role of diversity in staffing strategy. -Beliefs about hiring for potential versus hiring for position.
Types of Flexible Staffing Arrangements
Employers can define their relationship with staffing firms through different service arrangements. The choice of a particular flexible arrangement depends on a variety of operational, financial, and legal factors, including: -The function to be performed. -The level of supervision required. -Time constraints. -Financial constraints. -Concerns about legal risks and liability. Types of Flexible Staffing Arrangements -Payrolling: An organization identifies specific people and refers them to a staffing firm, which employs them and assigns them to work at the organization; arrangement is usually at a lower cost than traditional (finite) temporary help. -Employee leasing or professional employer organization (PEO): In an explicit joint venture, an organization transfers all or substantially all employees at a discrete site or facility to the payroll of an employee leasing firm; the PEO leases employees back to the organization while handling most of the HR administrative functions (e.g., payroll, benefits). -Temp-to-lease programs: An organization contracts with two (usually affiliated) staffing firms—generally a temporary service and a PEO; the temporary firm assigns long-term temporaries to a client organization and, after a period of time, the employees are promoted to lease status and become eligible for benefits from the PEO. -Outsourcing or managed services: An independent organization with expertise in operating a specific function contracts with an organization to assume full responsibility for the function (as opposed to just supplying personnel); functions may be peripheral to the core business (e.g., security, food services) or closer to operations (such as managing all flexible staffing programs or the IT function).
Workforce Management
Encompasses all the activities needed to ensure that the workforce competencies—knowledge, skills, abilities, and other characteristics—meet current and future organizational and individual needs. HR plays a vital role in these activities, ensuring that the right numbers of the right people are in the right jobs with the right skills at the right time. In this sense, workforce management is, in its essence, a form of risk management. HR manages human resources to maximize the organization's opportunities for success.
Flexible Staffing Types
Flexible Staffing Administration by the Organization: Temporary assignments: Employees hired to work on a specified job to supplement the regular workforce on a short-term basis or for a specific period of time. Temporary employees: Employees hired to work directly on the organization's payroll on a short-term basis or for a specific period of time to rotate among several positions or departments as needed. On-call workers: Employees who report to work only when needed. Part-time employees: Employees scheduled to work less than a regular workweek on an ongoing basis; benefits eligibility may depend on various factors (e.g., number of hours worked). Job sharing: The practice of having two different employees performing the tasks of one full-time position. Each of the job-sharing partners works a part-time schedule, but together they are accountable for the duties of one full-time position. Communication between the two employees is a key to success. Seasonal workers: Part-time or "casual" workers hired to perform seasonal work in a variety of industries (e.g., agriculture, construction, tourism, and recreation); may or may not be eligible for benefits (e.g., paid time off). Phased retirement: Any work arrangement that falls somewhere in between full-time retirement and working full-time; these types of programs allow mature employees to work on a reduced or modified basis as they approach retirement. Flexible Staffing Administration Outsourced: Finite temporary help: Workers who are recruited, screened, and employed by a temporary help firm; the temporary firm assigns individuals to work at client sites for a finite duration (e.g., to cover an employee's medical/maternity leave). Temp-to-hire programs: Workers hired on a temporary basis (usually through a temporary firm) with the understanding that they may be offered regular employment if they perform competently for a specified time. Contract workers: Highly skilled workers (e.g., engineers, data processing specialists) supplied for long-term projects; under contract between the organization and a technical services firm.
Supply Analysis
Forecasting Tools: Accurate supply forecasts account for movement into and inside the organization (new hires, promotions, and internal transfers) and out of the organization (resignations, retirements, involuntary terminations, and discharges). Forecast approaches include a variety of quantitative and qualitative analyses. Analysis tools range from a manager's "best guess" to rigorous mathematical applications. Turnover Analysis: Turnover is defined as the act of replacing employees leaving an organization or the attrition or loss of employees. The turnover rate is a metric that is normally expressed using an annualized formula that tracks the number of separations and the total number of workforce employees per month. Flow Analysis: Employees can flow in, up, down, across, and out of an organization, so examining this flow is important in supply analysis. There are three methods to accomplish flow analysis: -Analyze the career development plans for employees on an aggregate basis by job function, division, or other organizational classification. -Obtain estimates from each division of transfers and promotions into, out of, and within the divisions. -Project future movement through statistical analysis.
Workforce Analysis Process
Gathers data about the current workforce and forecasts future workforce needs. Supply Analysis: Where are we now? What do we have? Demand Analysis: Where do we want to be? What do we need? Gap Analysis: What is lacking? What knowledge, skills or abilities currently exist and are needed in the future? Solution Analysis: What can we afford? How will we get what we need?
Tactical Objectives
High-priority gaps identified in the workforce analysis process are the basis for defining tactical objectives. Tactical objectives focus on closing high-priority gaps in the near term (as opposed to the long-term HR strategic objectives). They specify in concrete and measurable terms which gaps must be closed and when. Tactical objectives support the organization's staffing needs because they: -Specify which gaps will receive focused attention. -Describe the degree to which the gap will be closed. -Specify the time frame in which this will be achieved. -Describe the localities or functional groups to which the objectives will apply. -Identify special considerations to be made because of unique local conditions.
Succession Planning
Important talent management strategy to help identify and foster the development of high-potential employees. Succession plans focus on positions that are the most critical to the future needs of the organization. The goal is to "keep talent in the pipeline" and have people in place for future roles in the organization. It is important to recognize that succession planning, like other aspects of talent management, applies to employees at all levels of the organization. It should not be applied exclusively to senior management. Succession planning must be closely tied to and aligned with several other human resource management functions, including: -Career management. Succession plans help to ensure that individuals in specific talent pools obtain the insights, awareness, and field experience necessary to make ongoing contributions to the organization. -Training and learning. Structured training experiences provide the knowledge and skills necessary for success in various positions on the career advancement ladder. -Performance management. Succession planning must also be carefully aligned with the organization's performance management process to ensure that future managers and functional experts receive the ongoing developmental feedback, critical evaluation, and mentoring required to maintain their professional development. Replacement planning concentrates on immediate needs and a "snapshot" assessment of the availability of qualified backups for individuals in key positions. Replacement planning is an important element in business continuity planning in the event of an emergency or business interruption.
Talent Pools
Members of a specific talent pool (e.g., high-potential employees or potential global assignees) are employees who meet a set of formal identification criteria. These employees typically receive specialized development and enrichment experiences above those associated with traditional employee development. -Represent an essential component of strategic business planning. When talent management is carefully aligned with long-term business and strategic planning, the organization can develop a well-planned approach to giving employees who have specific skill sets the developmental experiences they need to prepare them for the future. -Allow the organization to maximize and more effectively target employee and career development efforts. -Can be a useful tool for identifying and cataloging the developmental experiences of employees who are candidates for future international assignments. -Represent a valuable resource during crisis management. When an organization makes the effort to identify and catalog critical skill sets and experiences, they can quickly draw on these resources to fill in or supplement workforce gaps in times of organizational crisis. -Talent pools can be used to help organizations identify and recognize the value of solid performers—those individuals who keep the organization running on a daily basis but are not typically singled out for recognition or special development experiences because they are not part of or have not expressed interest in specialized talent pools. -Defined talent pools may aid in clarifying or guiding compensation decisions to be sure key talent (including high potentials and leadership candidates) are rewarded and motivated. -Talent pools represent an additional contributor to effective knowledge management, especially in global organizations. Talent pools of functional experts and historians serve a vital function in preserving essential knowledge and proprietary information.
Priortizing the Gap
Once the gaps have been identified, they must be analyzed and prioritized to determine which ones will be addressed. High-priority gaps are used as the basis for defining the plan's tactical objectives. Management and other key stakeholders should be involved when gaps are prioritized. The following criteria can be used to establish priorities and make recommendations: Permanence. Does the problem identified in the gap analysis occur on an ongoing basis, or is it due to some temporary factor that may be resolved without having to take any action? Impact. How significant is the impact of this gap on the organization compared to other identified gaps? Control. To what extent is the problem reflected in this gap controllable with a reasonable expenditure of resources, or is the solution likely to be more expensive than the problem itself? Evidence. How certain is the quality of the data? Does the evidence provide a clear indication that the gap is a serious problem, or is more evidence required? Root cause. To the extent that the gap indicates a problem that needs to be addressed, is it the root cause of the problem? Or is there a deeper problem that must be fixed to eliminate this gap permanently? Some gaps may appear unexpectedly.
Knowledge Management Success Factors
Organizations that excel at knowledge management focus on several key factors: -Creating an environment and structure that encourage the capture of best practices and facilitate sharing and cross-fertilization. *Recognizing that information must travel within and be retained in the organization *Appreciating the role and importance of personal networks in knowledge and information transfer *Establishing a knowledge-friendly, data-sharing culture (Individuals across cultures and across hierarchical levels must feel encouraged to share their knowledge and ideas.) -Seeing where knowledge exists and where it is liable to be lost or underutilized -Helping people develop information management and data access skills -Addressing the "What's in it for me?" question (Those who "borrow" knowledge from the system should also "deposit" knowledge. In other words, employees should be both givers and takers of knowledge. Seeing the process as reciprocal and mutually rewarding encourages its use and vitality.) -Developing criteria to define and measure successful KM projects -Identifying and addressing multicultural challenges, such as multiple languages within the organization and different preferences for screen design
Workforce Planning
Process of analyzing the organization's workforce and determining steps required to prepare for future needs. It strategically aligns an organization's human capital with its business direction.
Knowledge Management (KM)
Process of creating, acquiring, sharing, and managing knowledge to augment individual and organizational performance. KM programs typically focus on two key elements: -Expertise sharing and organizational learning -Knowledge retention and the reduction of knowledge loss due to employee attrition
Forms of Restructuring
Redistribution of Decision-Making Authority: As organizations grow larger, traditional decision-making processes may become so cumbersome that the organizations become dangerously slow in responding to competitive threats or technological changes and opportunities. As a result, decision-making authority may move downward in the organization—toward line managers—and outward—from headquarters to field. Extended Organization: The extended organization is becoming more common today as supply chain partners create processes and information channels that allow their organizations to communicate and collaborate fluidly at many different functional points. The businesses remain separate entities but may appear to outsiders to be one entity.Extended organizations are formed through the use of outsourcing, strategic alliances, or partnerships. Merger and Acquisition, Divestiture: Organizations may also try to enhance their productivity and competitiveness by adding to the value of the firm through merger and acquisition (M&A) or by shedding assets that do not contribute to the bottom line through divestiture. Reduction in Force: Reduction in force (RIF; sometimes called downsizing) refers to the termination of employment of individual employees and groups of employees for reasons other than performance—i.e., economic necessity or restructuring.
Drivers of Restructuring
Restructuring is the act of reorganizing legal, ownership, operational, or other organizational structures. It is a proactive adjustment to meet changing business needs.Restructuring intersects with workforce management when an organization makes changes in the size, number, or relationship of departments. Organizations restructure for a number of reasons. -Strategy. When organizations change their strategy, they may create new divisions to facilitate new products or services or to move into new markets. -Structure. Organizations may rearrange their structure to follow a new business model, improve efficiency, or reduce costs. -Downsizing. Organizations commonly downsize to remain functional during a loss of revenue. -Expansion. When an organization expands, new departments may be required to accommodate new products or facilities.
Developing a Formal Knowledge Management System
Step 1: Inventory knowledge assets: This step involves cataloging the organization's collection of tangible assets. Collections often include white papers, proposals, presentations, business and marketing plans, and growth and expansion plans. Some components of information systems (e.g., connections and lists of employees with specific skills, experiences, and assignment responsibilities) are also commonly added to the inventory. Step 2: Create a knowledge repository and directory: Typically, an organization's library or knowledge repository is available over its intranet or through a dedicated application. The access tool must be quick and easy to use and have a powerful search capability. More sophisticated systems, such as human capital management systems, may offer the ability to forecast information for new projects and assign team members based on skill and experience matches. Step 3: Encourage system use: This step involves implementing communication, training, and other processes designed to ensure cultural applicability and overall acceptance of the system. If the system is not perceived as essential to the successful operation of the organization, its success is uncertain. Step 4: Update the system: While keeping the database up-to-date often represents a challenge for the organization, continuous updates are essential to ensure the integrity and credibility of the system.
Solution Analysis
The final stage in the workforce analysis process is the solution analysis. This is an examination of how the organization can get what it needs to meet the tactical objectives within budget constraints. Solution analysis considers whether an organization should have a continuous recruitment program or wait until vacancies appear before engaging in an intensive effort to fill openings. During solution analysis, an organization decides whether to "build," "buy," or "borrow" the talent needed to attain the staffing levels and competencies required to meet the tactical objectives: "Building" the talent refers to redeploying as well as training and developing the current workforce to meet the future needs of the organization. "Buying" the talent refers to recruiting and hiring employees. "Borrowing" the talent refers to outsourcing, leasing, and contracting with others to get the work done.
Staffing Plan
The staffing plan turns workforce analysis data and tactical objectives into reality. A staffing plan describes—in some detail—how the tactical objectives are going to be achieved through the delegation of tasks and the application of resources. Elements of a Staffing Plan: -Statement of purpose: Establishes the goals and targets for the staffing plan. This clearly describes the link between the tactical plan and the HR strategic objectives. It documents the staffing gaps that were derived from comparing the future vision with the current state and becomes the basis for the tactical objectives. The statement of purpose reminds people of the significance of the plan and serves as a benchmark to compare subsequent aspects of the plan. -Stakeholders: Identifies key decision makers and others who should be involved in the development of the plan. These are the people that will be affected by the implementation of the staffing plan or whose support will be needed for its success. -Activities and tasks: Describes the activities and tasks that need to be carried out and the time line for completion; notes relationships between activities, tasks, and deliverables. -Team members: Identifies all the people who have been assigned or who have volunteered to work on specific activities, tasks, and deliverables. -Resources: Documents financial and nonfinancial resources required for implementation. -Communication plan: Notes specific tactics and responsibilities for communicating initial details about the plan as well as monitoring the plan and soliciting ongoing feedback. -Continuous improvement: Sets up a process to review the extent to which tactical objectives are achieved; identifies ways to continuously improve the plan.
Flexible Staffing Guidelines
The term co-employment, or joint employment, generally describes a situation in which an organization shares responsibility and liability for their alternative workers with the alternative staffing supplier. A co-employment agreement summarizes the legal relationship, rights, and obligations for some flexible staffing arrangements. Employers often use independent contractors (also known as consultants or freelancers) rather than employees to gain greater workplace flexibility or manage uncertainty associated with entering a new market. A related concept is the "economically dependent worker," defined as a worker who is formally self-employed but who derives most of his or her income from one employer. The terms of a flexible agreement will naturally vary depending on the circumstances. But there are a few general guidelines that can be helpful. -Be cautious of preprinted or standard forms. -Ensure clarity. An agreement should be simple and straightforward. -Negotiate competitive pricing. Ask for volume discounts, rebates based on use, and free value-added services. -Consider including an alternative dispute resolution (ADR) provision. It's wise to be prepared should disputes arise. -Include a simple opt-out procedure. Be wary of fixed-term agreements. -Negotiate clear and precise provisions for what happens when the agreement expires or the relationship ends. Spelling out terms of the closing can help to prevent unnecessary litigation.
GAP Analysis
This is the process of comparing the supply analysis to the demand analysis to identify the differences in staffing levels and competencies needed for the future. This process of reconciling the differences between supply and demand establishes the goals and objectives for the staffing plan. A gap analysis may identify deficiencies in staffing needs as well as any surplus of staffing levels in certain jobs and/or competencies. A surplus can result from a number of factors, including operation efficiencies, new technology, lower attrition rates, and changes in the organization. Skill gap: New skills are needed to perform new jobs. Abilities gap: New behaviors are needed to be successful. Distribution gap: Talent is not properly spread throughout the enterprise. Diversity gap: The organization is too homogeneous. Deployment gap: Talent cannot be sent where it is needed most. Time gap: It takes too long to achieve results. Cost gap: Too much money is being spent on talent acquisition and development activities. Knowledge-sharing gap: Organizational learning is not occurring. Succession gap: It is not clear where the next generation of leaders will come from. Retention gap: The best talent is leaving the organization.
Domain Box #2
Through merger and acquisition (M&A) or by shedding assets that do not contribute to the bottom line through divestiture.