For two decades metrics from human capital management have been conspicuous by
their absence. Now, successful, forward-thinking companies are providing a framework
for business intelligence dashboards to include the pulse of that most crucial element
of any corporate initiative, the people.
This is a talent-driven, talent-scarce job market. In the May 2006 cover article
of Business 2.0, editors suggested that an unusual convergence of economic factors
make this the best time to look for a job since the most dizzying days of the dotcom
boom. The Bureau of Labor Statistics quit rate suggests 2.6 million people are leaving
their jobs each month. In the lead story of October 2006 edition of The Economist,
editors note that, “talent has become the world’s most sought-after commodity.”
“The shortage is causing serious problems.”
With the projected labor shortfall estimated at 26 million over the next decade,
unique demands of a multi-ethnic, four-generation workforce, and increased expectations
of the employee experience, developing expert people managers is no longer just
a good idea, it’s critical to managers and their organization’s success. This means
that job number one for every manager is to become a talent expert - proficient
at attracting, optimizing and retaining the top talent companies needs to meet and
exceed its goals.
Whereas, in the past, companies might have focused on process, projects and numbers,
now managers will need to add considerable people management skills to their repertoire
in order to engage, inspire and maximize the potential of their direct reports.
Management in today’s world is very different from what it used to be. Many
managers learned how to manage from managers who weren’t necessarily expert people
managers, nor were they expected to be. Whereas in the past, the measure of a good
manager was the bottom line, today’s managers are measured not only by their results,
but also by their ability to attract, optimize and retain talent. In the past managers
might have asked questions like “How will I meet my numbers?” or “What do I need
to get the project done?” Now managers are asking, “How I can attract the
best talent, inspire them to contribute at the highest levels, and keep them?”
Today’s manager has a new mindset. He or she approaches management from a different
point of view, because of an inherent understanding that to be effective it is critical
to balance the drive for results with expert people management. In the table
below we distinguish between management as we have known it in the past, and the
kind of thinking required to effectively manage in the new workplace.
Managers:
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Then
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Now
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Think of their staff as employees
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Think of their staff as talent
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Believe people are important
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Know people are everything
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Think of training as a department
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See training as a necessity
|
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Are drivers
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Are facilitators, mentors, and talent miners
|
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Focus on bottom line results
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Focus on results and people
|
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Are good technicians
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Are good technicians and brilliant talent managers
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Are required to have some people skills
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Must be expert people managers
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Rely on human resources for recruitment, selection and on boarding
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Partner with HR to recruit, select and onboard
|
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Believe one-size management fits all
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Are versatile and committed to meeting the unique needs and demands of
a multi-ethnic, four-generation workforce
|
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Feel turnover is expected
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Actively manage retention
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Are accountable for results
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Are accountable for results and talent management
|
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Tolerate people management responsibilities
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Are dedicated people managers
|
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Aware of employee satisfaction levels
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Rigorously manage engagement
|
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Hope top producers will stay
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Actively manage retention through “stay interviews”
|
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Conduct infrequent, tactical one-on-one meetings with direct reports
|
Conduct frequent, strategic one-on –one meetings to discuss direct reports
goals, aspirations and future plans
|
Excellent Managers are accountable for talent management
In a conversation with a group of managers at a successful consumer products company,I asked managers how they measure their effectiveness. One manager responded by saying that a key indicator of her success is that she can go away for a few days and when she returns everything is still okay. Another manager suggested that a key measure of his success is that his direct reports are able to make decisions on their own. Both are good answers, but fail to objectively measure managementeffectiveness. The true measure of an Excellent Manager is his or her results.
An Excellent Manager is measured by these criteria:
- Has a strong reputation which attracts top candidates to seek a position
in your company
- Influences top candidates to accept a position in your company
- Inspires current employees to refer qualified job candidates
- Minimizes the number of bad hires who terminate or quit within the first
12 months of employment
- Maintains a high level of employee engagement
- Ensures employees participate in relevant, actionable training each year
- Architects internal promotions for top talent
- Actively mentors key talent
- Conducts a meaningful annual performance review for employees to inspire
improved performance and deepen engagement
- Achieves a high level of performance of new hires within 6-12 months after
hire
- Retains top talent
- Is not one of the top three reasons employees give for leaving in their
exit interviews.
In my book: Excellence at Work: The Six Keys to Inspire Passion in the Workplace,
I outline the importance of not only establishing a new mindset and communicating
clear expectations to managers, but, most importantly, to engender a sense of accountability
for expert talent management. The only way to ensure accountability is to measure
and reward desired management behaviors. We all know that you get the behavior you
reward. Up until now it has been rare to find companies that hold managers accountable
for their people management competencies. Apart from one or two items on the annual
performance review, measurement of talent management has been absent. No surprise
then, that for many managers this is not considered a priority.
The most reliable pathway to modify behavior is regular measurement reinforcement
and reward. Think Weight Watchers! The success of this weight loss company lies
in it’s simple approach to monthly weigh in’s in the company of one’s peers.
Enter the management dashboard - an interactive, “cool” way for managers to monitor
and track their talent management efforts, with visual symbols of their progress
and comparison of their results with their peers. Couple this with visibility to
senior management, and the change from traditional management to the new management
reality becomes possible.
An effective talent management dashboard:
- Reinforces and rewards managers’ talent management efforts on carefully
considered key indicators showing monthly progress and comparison charts
- Measures employee engagement and offers real-time information to help managers
create continuous action to maximize productivity
- Links talent management initiatives to bottom line business results
The bottom line: it helps drive increased retention, decreased
recruitment costs and improved performance.
Sandy Asch, Principal
Alliance for Organizational Excellence LLC
sandy@Uexcel.com
www.Uexcel.com