Talent Management - January 2009 - (Page 44)

1. Inconsistent performance planning and appraisals: In this ﬁrst stage, an organization will support employee performance appraisal for managers to develop performance plans and rate employees annually. Practices usually are not automated, and as a result, they are applied inconsistently. Managers and employees regard performance management as an administrative exercise, not as a business improvement tool. governance. Less than 3 percent of organizations reported they are in this stage. Measuring Performance Management In the past, HR has not had great demand from business users for talent metrics because business users do not know what information to request. Talent measures are perceived to be highly intangible. Further, there are no regulatory requirements or industry standards for reporting this type of information. Today, integrated talent management initiatives require greater transparency of talent information at all levels of the organization. Leading organizations identify talent measures that support business-speciﬁc strategies and outcomes, as well as the measures key to more integrated employee performance management. Technology solutions provide analytic tools and dashboards to communicate the status of these measures and often are tailored to different levels of the organization. Following are a few representative examples of “new” measurements now being tracked: percentage of employees with development and career plans; percentage of promotable employees; retention rates for high potentials, high performers and executives; ﬂight risk for high potentials and high performers; hiring sources for high performers; and top performers below standard market compensation. Purchasing and implementing technology without ﬁrst evaluating and reﬁning processes is akin to putting the cart before the horse. 2. Enterprise-wide performance management: Moving to this stage is difﬁcult. An organization will implement enterprise-wide practices and standards such as goal-setting, common rating scales, core and level competencies, mandatory development plans and pay for performance. To achieve consistency and compliance, many implement a technology solution focused on performance management. Most organizations ﬁnd themselves at this level. 3. Integrated performance management: In this stage, organizations pursue a more integrated approach with employee performance management at the core of talent strategy. More emphasis is placed on establishing a talent culture. Organizations design performance support for managers as coaches and career managers. Integration points with career and succession management are established. Performance management practices also incorporate high-potential identiﬁcation to support talent pool management. Competency assessments predict job ﬁt and leadership potential. Employees are encouraged to explore career options based on talent proﬁles. Because employee performance and talent data are more integrated, managers and business leaders begin to rely on more comparative and integrated talent measures to support decision making and planning. Less than 10 percent of respondents ﬁt into this stage of maturity. 4. Tailored performance management: Organizations focus on the unique needs of workforce segments. Goal-planning, competency management and assessments are tailored for speciﬁc groups, business units or geographies. Design considerations are made for operational, legal or cultural factors. Organizations determine which practices must be consistently applied across the organization and which can be customized. Many global organizations establish design teams with representation from various business units to determine operational framework and Technology Considerations The performance management systems market is the fastest-growing segment in the human capital management market and will soon be the biggest. The market was estimated to reach $520 million by the end of 2008, a 35 percent increase from 2007. It has tremendous potential for growth, with only 12 percent penetration in the United States and less than 9 percent globally. If talent leaders evaluate these solutions using a basic features checklist, there are few differences. However, research points out several ways purchasers can differentiate options. For instance, user experiences differ from solution to solution. This is one of the most important factors in a successful implementation. Buyers also must consider feature maturity, global capabilities, domain management, delivery models, price and conﬁgurability. To prioritize activities and investments, performance management requires focus. Creating a performance-driven culture, and compensating appropriately within such a culture, is the top business driver identiﬁed by research respondents. Integrated talent management brings competitive advantage. To capitalize on this potential, an organization must have a foundation built on strong, well-supported and modern performance management processes. Leighanne Levensaler is director of talent management research for Bersin & Associates, a research and advisory services ﬁrm. She can be reached at editor@talentmgt.com. 44 January 2009 talent management magazine www.talentmgt.com http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of Talent Management - January 2009

Talent Management - January 2009 Editor’s Letter Contents Human Performance Leading Edge Learning Connections Integrate Web 2.0 Into the On-Boarding Experience Show ’Em the Money: Compensation Trends 2009 Transition at the Top How Hollywood Manages Talent and What You Can Learn Get the Most Bang With Limited Training Bucks Life After Layoffs Attract Specific Talent Groups Performance Management: Its Time Is Now Helping the Helpers Advertisers’ Index Editorial Resources Full Potential

Talent Management - January 2009

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