How Integrated Talent Management Can Improve Your Return on People

2. How Integrated Talent Management Can Improve Your Return on People Gary Kilzer, HRMpact Jennifer Triumph, Franciscan Alliance

3. How to Participate Today • Open and close your Panel • View and select your audio preference • Submit text questions • Q&A addressed at the end of today’s session • Everyone will receive an email within 24 hours with more information on Halogen Job Description Builder and Halogen eRecruitment

4. Poll Question:How would you describe your talent management processes? • We’re siloed – We have HR systems in place but they differ across the organization and are not connected. • We’re consistent – We’ve standardized our processes, have some integration but some systems are connected through a manual process. • We’re integrated – our systems and process are well defined and well connected • We’re strategic – our systems are fully integrated and we use HR metrics to drive the business

5. Discussion Agenda • Introductions • Why Integrated Talent Management • Making the case for Integrated Talent Management at New England Baptist • Implementing an integrated approach at Franciscan Alliance www.hrmpact.com

6. Integrated Talent Management A set of integrated programs, processes and tools to attract, engage and retain critical talent for the organization. Foundations: • Technology Platform • Shared data base • Single sign on • Talent analytics • Owned by management www.hrmpact.com

7. Why Integrated Talent Management? • Improved Corporate Performance • Higher Employee Engagement • Mature Integrated Talent Management Practices • Enhanced Regulatory/Certification Compliance • Greater Corporate Sustainability • Reduced Employment Practices Liability • Improved Stock Price and Credit Rating www.hrmpact.com

8. Investing in Talent Management Bersin & Associates- The HR Fact Book 2011 www.hrmpact.com

9. Making the Case www.hrmpact.com

10. “Voice of the Customer” What people management programs are most critical to achieving your business goals? How effective is HR at delivering those programs? www.hrmpact.com

11. Performance Gaps • HR provides an employee performance management process that is effective and easy to use. • HR designs rewards that support pay for performance. • HR provides strategic workforce planning, forecasting talent needs and gaps • HR provides people management processes that are enabled by appropriate technology. • HR helps me deal with employee relations issues consistently and fairly. ---------------------------------------------------------------------------- We need to upgrade/automate our talent management capabilities www.hrmpact.com

12. ROI Analysis-Inputs • Total # of Managers in your organization: • Total # of HR employees dedicated to performance management etc: • Total # of HR employees dedicated to recruiting & retention: • Total # of HR employees dedicated to compensation: • Total # of HR employees dedicated to employee development: • What is your current performance & talent management system? • (Paper/Forms/Spreadsheets/Manual Process -Another Online System) • How often does your organization conduct performance reviews each year? • What is the average fully loaded salary per HR employee? • What is the average fully loaded salary per Manager? • What is the average fully loaded salary per employee? • What is your organization’s voluntary turnover rate? (%) • What is our organization’s approximate annual revenue? •  What is your organization’s gross margin? (%)

13. ROI Analysis - Summary • Cost Saving Benefits • Revenue Enhancing Benefits • Investment Required • Net Present Value: $328,602 • Return on Investment: 226% • Payback period (months): 9

14. Roadmap for Change Our strategy is to implement a 24 month plan (2012-2014) that will accomplish the following: • Reallocate technology spending from HR administration activities to strategic talent management capabilities • Outsource non strategic HR activities • Improve HR service delivery effectiveness • Build organizational talent management capability to: • Attract and retain top talent • Achieve MAGNET status • Manage Employee Performance • Make more effective Compensation decisions • Develop Leadership/ Manage Succession • Support geographic expansion • Support service excellence www.hrmpact.com

15. Current vs. Future State www.hrmpact.com

16. Re-Align HR Technology Spending www.hrmpact.com

17. Implementation • Think Big • Integrated Talent Management • Start Small • Hiring and on-boarding • Employee Performance Management • Compensation • Scale Up • Learning and Development • 3600 Feedback • Succession Planning • Talent Analytics www.hrmpact.com

18. Implementing an Approach

19. View from the Past • Identification of past practices… • Paper-based evaluations • Annual • Transfer • Probationary • Competency assessments • Alignment with regulatory body requirements • Manual tracking

20. Beginning the Transition • Big Picture • Integrated Talent Management • Initial Steps • Identify needs of the organization • Align practices with strategic goals • Move to an online platform • Start with the most critical needs

21. Timeline

22. Phase 1 • Annual Performance Reviews • Move to an online platform • Track competencies • Core • Job Specific • Develop rating scales • Assess alignment of organizational strategy with employee performance

23. Phase 1 - Continued • Introductory Performance Reviews • Address current competency levels • Identify gaps and learning needs • Extend period if necessary • Determine fit • Transfer Performance Reviews • Assess previous work performance up to transfer date • Assess current goals

24. Phase 1 - Results • On time completion rates • Simplified tracking of completion rates • Reduced file sizes and paper management • Standardized metrics for performance • Ability to easily access performance assessments • Easily pull appraisals for regulatory bodies • HR audits

25. Phase 2 • Continue Annual/Intro/Transfer Evals • Peer Review • Added into annual review process • Allows managers to gain insight into performance that they may not always see • Eliminate the “overlooked” syndrome • Goal Setting Process • Train to set SMART goals • Employee set • Manager review and additions

26. Phase 2 - Continued • Initial Performance Improvement Process (PIP) • Identify obvious gaps • Corrective actions? • Learning needs? • Set Action/Development Plans • Set step due dates • Opens manager/employee conversations

27. Phase 2 - Results • More feedback and recognition • Reduced “overlooked” syndrome • Assessment of learning needs • Identify and group learning needs • Focus on employee development • Measurable goals • Goal alignment with organizational strategy • Gap analysis • Measurable metrics

28. Phase 3 • Continue Phase 1 and 2 • 360 Review • Begin from top down • Access feedback to review • Identify learning needs and identify gaps • Use a combination of analytics • Peer Focus • Overall Focus • Formalized PIP • Review performance trends over a timeframe • Create action/development plans to address gaps

29. Phase 3 - Results • Increased feedback and recognition • Employees taking charge: • Performance • Development • Engagement by both management and staff • Analytics • Measurable HR metrics

30. Phase 4 • Continue Phase 1, 2, and 3 • Gap Analysis • Look for trends • Refine processes • Establish Potential Assessment • Laying the groundwork for succession planning • Metric Assessment • Refine tools to assess alignment of organizational strategy to employee performance

31. Take Your Own Path

32. Development Model

33. Q&A • Additional questions regarding the webinar? Contact: Gary Kilzer- gary.kilzer@hrmpact.com Jennifer Triumph - Jennifer.Triumph@franciscanalliance.com • For additional Halogen Software inquiries or to request a personalized demonstration, contact: Denise Dziubaniuk – Ddziubaniuk@halogensoftware.com

34. Thank you!