UNIT 19: RESOURCE AND TALENT PLANNING

1. UNIT 19: RESOURCE AND TALENT PLANNING UNIT CODE: T/508/0531 CREDIT VALUE: 15

2. UNIT 19: RESOURCE AND TALENT PLANNING • Learning Outcome 2: Determine current and anticipated skills requirements in varying contexts.

3. THE BASIC SYLLABUS • 1. Analyse labour market trends and appropriate legal requirements which influence workforce planning. • 2. Determine current and anticipated skills requirements in varying contexts. • 3. Apply the appropriate documents and processes which contribute to effective recruitment and selection. • 4. Evaluate how to manage the human resource life-cycle within the context of a HR strategy.

4. LEARNING OUTCOMES • Determine current and anticipated skills requirements in varying contexts. • D1 : (LO 1 AND 2) Critically evaluate the impact of labour market trends and skills requirements on workforce planning and make appropriate recommendations for effective response to supply and demand forecasts, succession planning and performance management.

5. OVERVIEW • Succession planning is described as, “Any effort designed to ensure the continued effective performance of an organization, division, department, or work group by making provisions for the development, replacement and strategic application of key people over time.” The 2015 State of Succession Planning Report

6. APPLICATION OF SUCCESSION PLANNING • A risk-mitigating process like succession planning works best if it involves data and fact. Not only will data-driven succession planning help keep you laser-focused as you search for the talent needles in the haystack, it will help your organization have more fact-based discussions with stakeholders. Here are the four golden rules of fact-based succession planning to help you get ahead:

7. APPLICATION OF SUCCESSION PLANNING • Golden Rule #1: Have replacements ready for 90% of critical positions • According to the father of human capital strategic analysis and measurement, Jac Fitz-Enz, succession planning starts to positively affect revenue growth when 70 percent of key positions have replacements ready.

8. APPLICATION OF SUCCESSION PLANNING • A good rule of thumb is to aim to have replacements ready for 90 percent of all key positions at any time, in case the person who is currently in a critical role leaves unexpectedly.

9. APPLICATION OF SUCCESSION PLANNING • To determine what should be defined as a critical position, look at both the importance of the role and how easy it is to train people for that role. Ask questions like: • What is the cost of mistakes in this role? • How difficult is it to replace someone in this role? • How closely is this role tied to the success of our business strategy?

10. APPLICATION OF SUCCESSION PLANNING • It’s important — especially when unemployment rates are low and top performers are more likely to be headhunted — to develop a number of succession candidates for each key position. A good target ratio is 3:1: For every role that has been identified as critical, have three people who are in the process of becoming ready to step into the role.

11. APPLICATION OF SUCCESSION PLANNING • Golden Rule #2: Seek out the needles in the haystack • Achieving a 3:1 ratio and 90 percent coverage for critical positions can be a daunting task. The key is to seek out the people within your organization who have the potential to move into critical roles, but haven’t yet been identified.

12. APPLICATION OF SUCCESSION PLANNING • For every person who has already been identified as a top performer, ask: How many more people are like them but haven’t gotten noticed?

13. APPLICATION OF SUCCESSION PLANNING • To understand where other people who have been developed effectively have come from, look at areas, such as: • Education Background: find people who came from similar schools or have similar degrees to top performers in key roles. This can be surprising because the best people have not always followed the path indicated by their degree.

14. APPLICATION OF SUCCESSION PLANNING • Roles: find people who have held similar roles in the past to those that are already identified as top performers. This can be surprising too because often the best people at leading a function have not come from within that function. Especially when it comes to leadership roles, a broad range of experiences can be more important than high levels of technical competence.

15. APPLICATION OF SUCCESSION PLANNING • Golden Rule #3: Monitor your risks • The reality is that succession positions are positions that are hard to fill — and the people with those skills are likely to have more job opportunities now that the U.S. unemployment rate is nearly at pre-recession levels.

16. APPLICATION OF SUCCESSION PLANNING • You can use a number of ad-hoc tactics to determine if someone is about to jump ship (such as whether they are updating their LinkedIn profile, or have an increase in absence days). With the right analytics tools you can use predictive analytics to determine who is likely to leave next based on past trends.

17. APPLICATION OF SUCCESSION PLANNING • For instance, you can see the attributes common to employees who have resigned over the past period, and use those to identify others at risk of leaving who share the same significant characteristics. In the world of HR, we are dealing with agents of choice, and there are so many factors involved in whether somebody stays or goes. Keeping the lines of communication open is key.

18. APPLICATION OF SUCCESSION PLANNING • Golden Rule #4: Build succession into your workforce plans • Often succession is managed as a separate program or process. The data about candidates is kept in spreadsheets and the management of experiences, learning opportunities, critical assignments, and so on is divorced from the other key planning processes in the organization.

19. APPLICATION OF SUCCESSION PLANNING • By integrating succession into your workforce plans you gain the ability to see when and where replacements will be required. More importantly you get to align the changes and opportunities within future plans, with the development and growth needs of your most important talent – your succession candidates.

20. APPLICATION OF SUCCESSION PLANNING • For example, your organization may be planning to open a new location or introduce a new business line. Often it is hit or miss as to whether this type of opportunity registers with those running the succession process. With an integrated analytics and planning solution it is simple to see which candidates will benefit from being moved into this start up experience.

21. APPLICATION OF SUCCESSION PLANNING • And simultaneously you have insight into all the subsequent people moves required to ensure business continuity. All of these changes get built into your plan and are easier to track and communicate – ensuring that the right changes get actioned and your succession pipeline continues to grow.

22. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Employee Performance Management is about aligning the organisational objectives with the employees' agreed measures, skills, competency requirements, development plans and the delivery of results. ‍

23. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • The emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high performance workforce. • ‍

24. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • An effective Performance Management process establishes the groundwork for excellence by: • Linking individual employee objectives with the organisation's mission and strategic plans. The employee has a clear concept on how they contribute to the achievement the overall business objective,

25. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Focusing on setting clear performance objectives and expectations through the use of results, actions and behaviours, • Defining clear development plans as part of the process, and • Conducting regular discussions throughout the performance cycle which include such things as coaching, mentoring, feedback and assessment

26. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Talent Management, as the name itself suggests is managing the ability, competency and power of employees within an organization. The concept is not restricted to recruiting the right candidate at the right time but it extends to exploring the hidden and unusual qualities of your employees and developing and nurturing them to get the desired results.

27. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Hiring the best talent from the industry may be a big concern for the organizations today but retaining them and most importantly, transitioning them according to the culture of the organization and getting the best out of them is a much bigger concern.

28. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Talent Management in organizations is not just limited to attracting the best people from the industry but it is a continuous process that involves sourcing, hiring, developing, retaining and promoting them while meeting the organization’s requirements simultaneously.

29. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • For instance, if an organization wants the best talent of its competitor to work with it, it needs to attract that person and offer him something that is far beyond his imagination to come and join and then stick to the organization.

30. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Only hiring him does not solve the purpose but getting the things done from him is the main task. Therefore, it can be said that talent management is a full-fledged process that not only controls the entry of an employee but also his or her exit.

31. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • It could just include a simple interview of all employees conducted yearly, discussing their strengths and developmental needs. This could be utilized for mapping people against the future initiatives of the company and for succession planning. There are more benefits that are wide ranged than the ones discussed above. The benefits are:

32. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • The benefits of talent management are: • Right Person in the right Job: Through a proper ascertainment of people skills and strengths, people decisions gain a strategic agenda. The skill or competency mapping allows you to take stock of skill inventories lying with the organization

33. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Retaining the top talent: Despite changes in the global economy, attrition remains a major concern of organizations. Retaining top talent is important to leadership and growth in the marketplace. Organisations that fail to retain their top talent are at the risk of losing out to competitors.

34. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Better Hiring: The quality of an organization is the quality of workforce it possesses. The best way to have talent at the top is have talent at the bottom. No wonder then talent management programs and trainings, hiring assessments have become an integral aspect of HR processes nowadays.

35. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Understanding Employees Better: Employee assessments give deep insights to the management about their employees. Their development needs, career aspirations, strengths and weaknesses, abilities, likes and dislikes. It is easier therefore to determine what motivates whom and this helps a lot Job enrichment process.

36. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Better professional development decisions: When an organization gets to know who its high potential is, it becomes easier to invest in their professional development.

37. PERFORMANCE MANAGEMENT VS TALENT MANAGEMENT • Since development calls for investment decisions towards learning, training and development of the individual either for growth, succession planning, performance management etc, an organization remains bothered where to make this investment and talent management just make this easier for them.

38. REFERENCES • Saba + Halogen Talent Management Blog. (2017). 8 Steps for Effective Succession Planning. [online] Available at: https://www.halogensoftware.com/blog/8-steps-for-effective-succession-planning [Accessed 8 Oct. 2017]. • Human Resources Today. (2017). Succession Planning Success: The Golden Rules for Future-Proofing Your Business. [online] Available at: http://www.humanresourcestoday.com/succession-planning/workforce-planning/?open-article-id=3419811&article-title=succession-planning-success--the-golden-rules-for-future-proofing-your-business&blog-domain=visier.com&blog-title=visier [Accessed 8 Oct. 2017]. • Peoplestreme.com. (2017). Explain what is Performance Management. [online] Available at: https://www.peoplestreme.com/what-is-performance-management [Accessed 8 Oct. 2017]. • Managementstudyguide.com. (2017). Benefits of Talent Management. [online] Available at: http://managementstudyguide.com/benefits-of-talent-management.htm [Accessed 8 Oct. 2017].