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Stafng Topologies:

Mapping stafng processes for complex organizations

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

Executive Summary

Thriving in todays fast-paced knowledge economy requires organizations to deploy


effective strategies for staffing and Human Capital Management (HCM); placing the
right people in the right roles at the right time is the primary differentiator of high
performing companies. The complexity of todays business environment, however,
requires constant consideration of changes both internal to an organization as well as
external, market-driven factors. Potential revenue generation requires an enterprise
staffing management solution that can adapt to cyclical business demands and be flexible in accommodating the corresponding ebb and flow of staffing and internal mobility requirements.
Industry leading organizations have recognized the need for a staffing strategy that is
enabled by technology and driven by meaningful metrics and systematic processes.
These leaders are thriving on the vast Internet pool of potential candidates, but at the
same time have recognized the necessity of connectivity within their own employee
pools. And, they are moving at lightning speed as they recognize that a new breed of
candidate has emerged, one that is armed with a vast arsenal of information and
choices that make this new candidate unwilling to suffer the poor communication and
long cycle times typical of traditional staffing environments.
Understanding an organizations unique HCM requirements is simplified through use
of a common vocabulary and approach to identifying the many elements and challenges that define an organization's staffing landscape, the sum of which comprise its
unique Staffing Topology. This paper defines and explains how, with an understanding of the elements of a Staffing Topologyincluding Key Drivers, Hires Types, and
Staffing Modelscommonalities emerge across the enterprise and trends are more
easily identified. The result is that the effects of marketplace and organizational
changes can be measured, even predicted, and linkages can be drawn that will enable
true enterprise solutions capable of meeting the needs and goals of today's dynamic
organizations.

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

Table of Contents
I.

THE ELEMENTS OF A STAFFING TOPOLOGY.................................... 5


Key Drivers............................................................................................................................... 6
Hire Types ................................................................................................................................ 6
Staffing Models....................................................................................................................... 7
Staffing Alignment ........................................................................................................... 7
Role Specialization .......................................................................................................... 8
Level of Centralization .................................................................................................... 9
Level of Service ................................................................................................................ 9

II.

PUTTING STAFFING TOPOLOGIES TO WORK .................................11


The Role of Metrics............................................................................................................. 12
Executing a Data-Driven Strategy.................................................................................... 13
Common Pitfalls................................................................................................................... 13

III.

STAFFING TOPOLOGIES APPLIED: THE UNITEDHEALTH GROUP


STORY..........................................................................................................16
The Staffing Topology ........................................................................................................ 16
The Challenges .................................................................................................................... 17
The Solution.......................................................................................................................... 18
The Results ........................................................................................................................... 18

IV.

STAFFING TOPOLOGIES APPLIED: TOOLS AND BEST


PRACTICES.................................................................................................20
Mapping Hire Types............................................................................................................ 20
Full-Service .................................................................................................................... 21
Self-Service .................................................................................................................... 21
Centralized ..................................................................................................................... 22
Decentralized ................................................................................................................. 22
Process Mapping ................................................................................................................ 23
Configurable Workflows .................................................................................................... 23
Skills Database .................................................................................................................... 23
Staffing Topologies Knowledge Base ............................................................................ 23

V.

CONCLUSION.............................................................................................25

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

I.

THE ELEMENTS OF A STAFFING TOPOLOGY

Beginning with the host of internal and external factors (Key Drivers) that shape a
Corporate Strategy, staffing success requires determining the types of positions to
be filled (Hire Types), how to best structure staffing organizations (Staffing
Model), and how to align day-to-day staffing functions (Staffing Processes) to
maximize the corporate value contribution of the overall staffing strategy. The
sum of these factors is a Staffing Topology -- a map defining the complex interplay of factors that must be successfully negotiated on the journey to effective and
efficient staffing management.
STAFFING TOPOLOGY
The sum of the elements that define an organization's staffing landscape

CORPORATE
STRATEGY

HIRE
TYPES

STAFFING
MODELS

STAFFING
PROCESSES

S TA F F I N G S T R AT E G Y
KEY DRIVERS

The exciting promise of defining an organizations Staffing Topology is the


opportunity to maximize the value that staffing drives within organizations by
providing a comprehensive roadmap for the implementation and effective use of
new processes, tools, and technologies to best address the needs of the entire
enterprise. The resulting economies of scale and standardized processes will enable
measurability and predictability while allowing more accurate justification of
staffing expenditures, identification of inefficiencies, and increases in productivity. This is a critical step for todays HR function in its evolving role as a strategic
business partner capable of executing on a comprehensive HCM strategy.
The value of understanding the elements of a Staffing Topology can be illustrated
by considering, as an example, the challenge of doubling the size of an IT organization in a geographically isolated location to support the anticipated needs of a
merger--a merger that will simultaneously trigger a layoff of similar IT professionals in another city. The task of effectively redeploying this talent internally is complicated by the need to meet aggressive hire targets, and a mandate to increase the
overall quality of hire while staying within strict cost-per-hire guidelines despite a
talent shortage.
Challenges such as these are common in today's dynamic business environment.
The rapid pace of change in todays economy (for example, shorter product life
cycles require a faster time to market for new products) demands a thorough
understanding of talent attraction and management strategies for effective HCM.
Placing the right people in the right roles at the right time, consistently, has
become increasingly important as organizations recognize the significant potential

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

inherent in effective HCM. Realizing that potential means tackling a myriad of


challenges, whether to increase quality or cut costs, reduce turnover, improve
internal mobility, or even reduce employee theft (otherwise known as "shrinkage") on the part of retail operations. Success requires a firm understanding of all
the underlying factors to be negotiated, the challenges they represent and, importantly, it requires having the tools and expertise in place to meet those needs.
There are three main categories of elements within an organization's Staffing
Topology, the presence and nature of which will determine how to best craft
effective staffing processes that will drive enterprise-wide efficiencies, productivity
enhancements, and overall increases in shareholder value.
Key Drivers

Internal and external factors that must be considered to maximize staffing effectiveness
Understanding an organizations Staffing Topology begins with an examination of the
factors, or Key Drivers, both Internal and External, that shape the organization. These
include everything from how the organization is structured to location, marketplace
conditions, cultural influences, and the effectiveness of the corporate brand. They
include management goals, mandates for cost and quality improvements, objectives
for increased workforce mobility, the effects of a merger or acquisition, and projections
of significant growth. A union environment, maintaining compliance with government regulations, corporate downsizing, or the need to improve employee retention
are all significant factors that must be understood. These elements represent the cyclical business demands of the organization and comprise its dynamic Corporate Strategy. To be successful, a Staffing Strategy and technology implementation must
accurately reflect, and account for, these Key Drivers. It is well known that such drivers and corporate strategies are subject to constant change and adjustment. Understanding how they may change, depending on certain factors, and how to make
corresponding real time changes to a staffing solution will prepare the organization to
meet its staffing needs regardless of economic conditions.
Hire Types

The category of individuals the organization seeks to hire


Corporate Strategy, as shaped by the dynamic forces of Key Drivers, dictates the
Hire Types required to staff the organization, which, in a single enterprise, will
typically include a combination of professional, campus, hourly, and contingent
workers. Each of these Hire Types includes many subgroups, each presents unique
challenges, and each requires different attraction, capture, assessment, and candidate processing strategies. As an example, for the hourly Hire Type, a single organization may employ retail, call center, distribution, and manufacturing hourly
workers, with each subcategory possessing its own unique characteristics. By

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

understanding how these different Hire Types compare and contrast, commonalities can be discovered and solutions that address the needs of the entire enterprise
can be identified and implemented.
Staffing Models

How staffing organizations are structured


An organization may have multiple Staffing Models (including one for each Hire
Type, business unit, and/or location), or a single Staffing Model that varies to account
for dissimilar elements. Elements of a staffing model include the degree to which a
staffing organization is centralized, the level of HR involvement, the amount of role
specialization within the staffing team, and whether staffing is aligned by job, location,
or business unit. These elements are woven together in a complex topology, where a
change in a single element can produce a profound impact on the whole.
Ideally the products of a comprehensive Staffing Strategy, Staffing Models are in many
cases dictated by cultural influences and resource allocationsthe understanding of
which is critical for a successful strategy. Each of the four main elements of a Staffing
Model is described below.
Stafng Alignment

The complexity of staffing organization alignment has grown with todays increased
emphasis on workforce mobility. This is dictated by both economic cycles and the
growing shortage of knowledge workers in particular, as well as through business process outsourcing. As a result, it is not uncommon to see internal transfers and promotions handled by HR Generalists while Staffing Specialists utilize an entirely separate
process to bring external talent into the organization. What is of primary importance in
this case is to ensure that the roles are aligned, and that processes and technology are
implemented to ensure that each group gains access to both the talent that already
resides within the organization and that which is external but attracted to the corporate
employment brand. Three primary models form the basis for any number of variations:

 Job function: Staffing Specialists aligned by job function are specialists at


staffing for a specific discipline or job family, regardless of geography. This
narrow focus typically provides an increased understanding of the technical
requirements of open positions, as well as expertise with the unique sourcing
challenges particular to a given market segment.

 Geography: Staffing Specialists aligned by location manage all of the


requirements for a given location and typically have a deeper understanding
of the local market. Due to their close proximity to Hiring Managers, they
often benefit from stronger relationships, as well as an increased familiarity
with the intangibles of open positions. Because they manage a more diverse
portfolio of job requisitions, these Staffing Specialists generally possess a
broader understanding of the organization.

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

 Business unit: Staffing Specialists aligned by business unit are assigned to


manage the requirements for all roles within that specific unit, usually across
multiple locations. These Staffing Specialists are true generalists who typically provide a good balance between organizational effectiveness and operational efficiencybut sometimes at the cost of benefits provided by other
models.
Role Specialization

The process of staffing within some organizations is evolving toward a specialized


function due to a number of factors including, importantly, the advent of the Internet.
However, role specialization may not be appropriate for every circumstance or every
organization. Regardless, the degree of specialization within a staffing function is a
critical consideration in the creation of an effective strategy. This consideration is well
illustrated by a comparison of the responsibilities of an HR Generalist with those of a
Staffing Specialist.
A day-in-the-life of an HR Generalist might include administering a benefits or compensation program, employee relations, union grievances, terminations, and/or issues
of legal compliance--in addition to staffing. Effectively multitasking across these functions requires an emphasis on consistency of process, ensuring that each task is accomplished in a professional, careful, consistent manner--skills for which HR Generalists
have long been valued and rewarded.
By contrast, the Staffing Specialist has grown significantly in importance to effective
staffing, thanks to increased competition for top-notch talent as job boards, online
resume databases, and streamlined communications have facilitated talent movement.
In this new paradigm, skills previously relegated to third-party search firms and
employment agencies are cultivated in-house, with staffing increasingly focused on
sales, marketing, and public relations (employment branding) activities. These specialized professionals bring with them a new sense of urgency and risk-taking.
To further complicate matters, organizations are increasingly realizing that they need
sourcing specialists who possess skills required for locating talent, rather than for
attracting and hiring potential candidates. In many organizations, the task of staffing
is divided between these roles. As a result, candidates may be handed-off from
sourcing to staffing to HR as they move from sourcing to screening and selection to
offer and hire.
As the staffing function continues to evolve, HR generalists, staffing specialists, and
sourcing specialists are learning to work effectively together to assimilate their different
roles. However, because each approaches the task of staffing from a decidedly different
perspective, a successful strategy must account for and capitalize on such differences.

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

Level of Centralization

The level of centralization in a staffing model is defined as the degree to which management seeks direct control over the staffing function. This involvement might be
exercised in the organization's entire staffing strategy, or it may vary across the elements of resources, budget, process, and metrics.
The more narrow definition of centralization, wherein resources are physically centralized in a single location, has become less relevant as technology closes distances that
formerly created significant barriers to communication. However, physical proximity
facilitates face-to-face communication, which is a key component to building strong
relationships, one of the most important contributions to staffing effectiveness, and
not a factor typically inherent in highly centralized staffing models.
It is also important to consider the impact of technology on both centralization and
decentralization. An enterprise staffing management solution offers, for the first time,
an effective means by which to track compliance to process, the efficiencies of a shared
candidate database, and the capability to capture and report enterprise-wide metrics,
providing the necessary tools to make a compelling case for centralization. However,
the same technology also enables more effective decentralization as it provides visibility across an enterprise into the demand for and supply of candidates, as well as realtime collaboration among Staffing Specialists, HR generalists, sourcing specialists, and
hiring managers.
Typically, staffing models particularly for large, complex organizations -- are a
hybrid of centralization and decentralization, often varying significantly within a
single process or Hire Type, and the potential benefits of either must be balanced
against the risk of the corresponding challenges they present. For instance, an
organization with a highly centralized sourcing function will typically enjoy significant economies of scale. At the same time, it may not realize the potential benefits of niche job boards or other specialized, local market resources that would be
more likely utilized by a local resource in a decentralized staffing model. As noted
above, the choice of structure may also be defined by cultural legacy, geographic
diversity, or by business concerns (e.g., an organization with numerous small
retail outlets typically employs a decentralized structure, as the value of a centralized resource to help screen or process candidates is difficult to realize in the lightning-fast hiring process typical of such environments).
Level of Service
Level of Service in a Staffing Model speaks strictly to the participation of HR in the
completion of tasks necessary to effect a hire or internal transfer, as opposed to the
level of centralization, in which elements such as budget, process, or metrics are considered. To make this point clear, it is important to note that it is possible to have a
full-service, decentralized staffing model (wherein local HR representatives bear primary responsibility for staffing, yet report to the local line), just as it is possible to have

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

a largely self-service, centralized model, (where centralization is provided by technology, budget, and/or process, but tasks remain the responsibility of local HR or the hiring manager).
Self-service models empower hiring managers to become more involved in the process,
and technology enables this with intuitive tools. However, it may be most advantageous to provide hiring managers with visibility into the staffing process (through
technology) without full responsibility for the staffing process. Whatever the level of
service provided by HR, this element, and combinations thereof, are of critical consideration when designing successful staffing processes.

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Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

II.

PUTTING STAFFING TOPOLOGIES TO WORK

Staffing Topologies represent a new approach to:

Understanding the complex issues that must be considered to maximize


shareholder value generation for large organizations, and

Utilizing new processes, tools, and technologies to address the needs of varying topologies and meet staffing goals.
Why Topologies Matter
Studies show that organizations excelling in the staffing arena generally produce a
greater return for their investors.

This premise is born out by a study comparing the stock price performance of Taleo
S&P 500 customers to S&P 500 companies that dont use Taleo. Analysis shows that
Taleo customers outperformed the S&P 500 by 20 percent during the turbulent year
of 2002.1

Taleo Customers Index


A comparison of the stock market performance of Taleo customers,
as compared to companies in the S&P 500 Index for 2002
110

Taleo
Customers

105
100

S&P 500

95
90

Study results link staffing excellence to a


10.1% increase in market value (based
on an analysis of HR practices at more
than 400 publicly traded companies).

--Human Capital Index Study


Watson Wyatt Worldwide

85
80
75
70
65
J-02

1.

F-02

M-02

A-02

M-02

J-02

J-02

A-02

S-02

O-02

N-02

D-02

Methodological remarks: The Taleo Customers Index is calculated using the same methodology
that is used to calculate the market capitalization weighted index known as the Standard & Poors
500 Index. The Taleo Customers Index is calculated for all trading days in the calendar year 2002,
based on the daily closing prices and the average number of common shares outstanding for the
companies in the Index. Each of the companies in the Taleo Customers Index also belongs to the
S&P 500. Information on the basic number of shares outstanding is from the companies 10-Q
SEC filings. The Taleo Customers Index is rebalanced at the end of each quarter in 2002, to
account for changes in the number of common shares outstanding. The chart above sets the values
for both the Taleo Customers Index and the S&P 500 at 100 on Jan. 2, 2002.

Talent Drives Performance

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Stafng Topologies:
Mapping stafng processes for complex organizations

The results of the stock index comparison analysis are dramatic, with strong performance from the Taleo group of companies. Many factors impact any individual
companys stock valuation; yet, notably, the common factor among the high performing companies is that all are Taleo customers. The studys outcome is noteworthy in that it presents an indication of this subset of companies strategic
mindset about human capital management, which has been seen as a critical factor
in other studies. 1
A Staffing Topology is the roadmap on which an organization plots its path to
staffing excellence that can influence a companys stock valuation. Understanding
Staffing Topologies is critical for today's HR function to become a strategic business partner capable of executing on a comprehensive HCM strategy and delivering value to the organization. Flawless execution begins with careful planning,
which is only possible as the result of an in-depth analysis of the underlying factors behind the challenges at hand. Once those factors and challenges are clearly
understood, a strategy can be developed through the identification of metrics,
which can be used to manage performance by guiding staffing behaviors to
achieve the desired outcomes.
Enabling an Enterprise Solution

An understanding of the organizations Staffing Topology can guide selection of


enterprise staffing technology by focusing the discussion not on a feature/functionality comparison, but on the very real issues of aligning processes and driving
utilization. As the linkages between elements, challenges, and product functionality are understood, commonalities and trends emerge across organizational
boundaries. The wisdom of an enterprise solution, and the resulting benefits of
standardization, can be more clearly articulated, building a clear case for finally
eradicating ad hoc strategies and divergent processes typical with multiple systems.
The same advantage extends to the technology implementation process, where
knowledge of a Staffing Topology enables the development of intuitive workflows, meaningful metrics, and systematic processes that empower the entire organization. The result is an implementation that features early and broad end-user
adoption leading, in turn, to deep system utilization, better alignment with all key
stakeholders, and the promise of superior, measurable return on staffing investment.
The Role of Metrics

Understanding a Staffing Topology enables the implementation of a fully configurable,


flexible technology solution that will serve as the bedrock for driving ROI. It is also
vitally important to the next step to effective staffingestablishing meaningful perfor1.

12

A more effective talent management is not only about better HR processes, its about a different
mindset. War for Talent, 2001, McKinsey & Company

Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

mance metrics. Although the use of metrics to achieve operational effectiveness is not
new, its application to strategic performance management in staffing continues to
meet with varying degrees of success. Why? At the heart of the matter is a lack of
understanding of the elements that define the staffing landscape. The evolution of
staffing has meant a change in roles, beliefs, and behaviors, complicating the very definition of what constitutes a best practice and, consequently, what needs to be measured. Also, until very recently, technology that allows real-time recording and
reporting of metrics simply did not exist. Reporting was a burdensome, adjunct task,
plagued by manual systems and issues of data integrity. Without the benefit of understanding and tools, a staffing function cannot be expected to perform effectively.
The process of implementing a metrics-driven staffing strategy requires the development of staffing processes that resonate with an entire organization across multiple
Hire Types, whether that means Ph.D. candidates from MIT, store clerks in Boise, or a
hospital administrator in Brussels. It requires accounting for factors that might include
talent shortages or surpluses, union rules, cultural influences, and a full range of management mandates to improve anything from the quality of hire to EEO compliance
to more effective succession planning. All of these elements, whether managed strategically or merely dealt with tactically, impact organizational staffing effectiveness and
efficiency, and hence overall organizational performance.
Executing a Data-Driven Strategy

As mentioned above, flawless execution of an HCM strategy begins with an in-depth


analysis of the underlying factors behind the challenges at hand. Once those factors
and challenges are clearly understood, a strategy can be developed and executed
through the identification and consistent application of meaningful metrics.
It cannot be overstated that execution is the indispensable key to obtaining superior
value creation; strategy without implementation, technology without adoption, or
metrics without accountability will not produce desired results. Superior value creation is only possible with the design and implementation of a complete enterprise
solution. This means a fully configurable technology solution that resonates across the
entire organization, achieved through effective process analysis and change leadership,
featuring engagement and accountability at levels of the organization from executives
to Staffing Specialists to hiring managers, and driven by meaningful performance
management metrics.
Common Pitfalls
Just as a flexible, properly configured, and well-utilized technology, built on a strong
understanding of an organization's Staffing Topology, provides an excellent foundation upon which to standardize processes, profile and share candidates, when technology is poorly designed, implemented or utilized, these benefits quickly turn into
wasted corporate resources. Potential pitfalls include:

Talent Drives Performance

13

Stafng Topologies:
Mapping stafng processes for complex organizations

 Selecting the wrong solution: 100+ vendors comprise the hiring management solutions arena, creating a maze of confusion that requires diligence to
sort through. Such diligence must include a thorough review of the software, services, security, service-level agreements, vendor financial performance, and vendor references given by similarly sized customers. Beware of
one-size-fits-all platforms; the fallacy of the belief that a complex organization will benefit from such simplicity will continue to become apparent as
the Internet and the technological solutions it has spawned continue to
mature.
The right solution has the ability to make complex processes appear simple
by resonating with the user experience to the point where using it becomes
second nature, much like driving a car. However, just because a car might be
easy to drive doesn't mean it is a simplistic tool. The solution must be capable not only of initial configuration, during implementation, but also configuration whenever the organization needs to change business processes.
Optimally, such configuration will be done in real time and without vendor
intervention.

 Poor configuration, incomplete training: No matter how intuitive today's


tools might be, if they are improperly configured, utilization will suffer. As
circumstances and challenges evolve, technology must evolve. A highly configurable platform is a crucial component to enabling a complex Staffing
Topology. Additionally, as new Staffing Specialists come into the organization, training must be renewed.

 Emphasizing the wrong metrics: Today's technology provides exposure to a


wealth of available measurements, as virtually every activity within the staffing function is tracked. It is critical to make a distinction between what is
tracked, what is reported, and what is emphasized in performance measurement. As one familiar adage suggests, What gets measured gets done. Publishing or pushing the wrong metrics will guide Staffing Specialists to
execute the wrong activities, producing a negative impact on staffing effectiveness. Similarly, too many metrics can paralyze organizational effectiveness. Consider many organizations favorite metric, cost-per-hire.
Overemphasizing this metric can negatively impact quality of hire, thus
affecting enterprise performance and ultimately driving costs higher.

 Lack of understanding the importance of relationships: The importance of


staffing metrics is clear, but the real value of metrics is in their ability to
guide productive relationships between Staffing Specialists, hiring managers,
and candidates. The level of staffing effectiveness can be gauged in direct
proportion to the level of understanding and communication shared
between these individuals. The lack of effective, widespread use of metrics in
staffing can be traced to the difficulty in managing a function that is so
dependent on the quality of relationships between individuals responsible
for, and participating in, the process.

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Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

The relationship between hiring managers and staffing professionals rests on


a full and shared understanding of the requirements and intangibles of the
positions they are attempting to fill. The degree to which the new employee
qualifications deviate from pre-staffing requirements can be a highly effective measure of the quality of this relationship, once allowance is made for
market decisions (i.e., the hiring manager makes a conscious decision to
hire a less-than-ideal candidate due to market considerations).
Online prescreening questions regarding a candidate's skills can provide
quantifiable evidence of how accurately pre-staffing requirements are
aligned with job function needs. Scorable questions profiling a candidate's
skills, abilities, and experiences allow a staffing organization to conduct a
point-of-hire analysis of the deviation between skills that were originally
required with the actual background of the hired candidate. Because close
alignment can only be achieved through an ongoing process of communication and feedback between hiring managers and Staffing Specialists, the
degree of deviation is an accurate measure of the effectiveness of this important partnership.

 Poor communication of goals: The purpose of metrics is to motivate


behaviors that will produce desirable results. Developing effective metrics
requires not only an understanding of an organization's Staffing Topology, it
requires communicating this information to those responsible for staffing,
along with the goals the staffing organization is striving to reach.

 Lack of management follow-through: Execution is the key to any successful strategy. While great strides have been made and pockets of excellence
can be easily identified, the legacy of the tactical mindset of the HR function remains evident in many staffing practices today. Tremendous value can
yet be achieved by encouraging these able professionals to execute a business
strategy, manage performance through the use of metrics, and lead and
manage change.

Talent Drives Performance

15

Stafng Topologies:
Mapping stafng processes for complex organizations

III.

STAFFING TOPOLOGIES APPLIED: THE


UNITEDHEALTH GROUP STORY

The importance of understanding a Staffing Topology is well illustrated by the


case of UnitedHealth Group (UHG), one of America's most-respected healthcare
companies (as reported in Fortune Magazine), headquartered in Minnesota, and
serving more than 38 million Americans around the world. UHG, a Fortune 100
company, has more than 31,000 employees and annual revenues of $24 billion.
The Staffing Topology

UHG began implementing Taleo's staffing management solution in the fall of


2001 as it tackled a major outsourcing and automation initiative that completely
reinvented the HR function. This initiative, called HR Direct, included the creation of a centralized Staffing Services group of over 60 specialists aligned along
organizational boundaries. This new group was chartered to service over 5,500
hiring managers in accomplishing 10,000 annual hires primarily in the technical,
professional, campus, and executive ranks. External drivers to be considered
included a critical market shortage of healthcare professionals, a shrinking economy, and wide geographic dispersal of six separate business segments, each with
its own existing staffing process. Management mandates, in addition to completely reengineering HR, included reductions in time-to-fill and cost-per-hire
and the desire for a self-service, streamlined process that would all but eliminate
paper. Consider the following Topology elements:
Key Drivers:

Align with HR Directmove to self-service HR model


Critical market shortage of healthcare professionals
Wide geographic dispersal of locations
Management mandates to reduce costs and time-to-fill, streamline processes
and increase operational efficiencies through automation and role specialization
Hire Types:

Professional
Technical
 Campus
 Executive

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Talent Drives Performance

Stafng Topologies:
Mapping stafng processes for complex organizations

Staffing Model:

 Six separate business segments with separate staffing processes


 Hybrid with many centralized elements
 Some elements outsourced, including high-volume call center hiring
 Many elements of full-service in sourcing and screening steps
 Primarily self-service in selection and candidate management
 HR generalist involvement in separate executive processes
 High level of role specialization including dedicated recruiters,
some sourcing specialists, heavy administrative support

 Recruiting aligned by organization


The Challenges

A detailed change analysis was conducted, priorities and goals were set, and initial
efforts were targeted toward quickly forging connections between this new staffing
group and hiring managers while avoiding any major service outages and designing a streamlined process that would meet the needs of all six business units. With
this accomplished, it was believed that staffing effectiveness and efficiency
improvements would follow, including increases in quality and contribution to
the company's bottom line. Particular attention was also paid to crafting a solution that would emphasize the benefits of a shared platform to account for the
challenges presented by the diversity in roles, locations, and culture across the
organization.
Key Challenges:

Meld six separate staffing processes into a single, cohesive process


Establish a program to manage staffing by performance goals and metrics
Reduce use of agencies
Reduce time-to-fill (was 50 to 75 days)
Reduce sourcing expenditures
Create a shared platform of standardized job descriptions and candidates

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Stafng Topologies:
Mapping stafng processes for complex organizations

Align positioning of rollout with philosophy and goals of HR Direct initiative


The Solution

The implementation was divided into three phases, with the entire organization
participating in initial focus groups and process mapping sessions to determine
unique organizational requirements and facilitate the configuration of a common
candidate selection workflow. The decision was made to realign the staffing model
along functional lines. Service Level Agreements were set. Hiring managers were
invited into the process via the Taleo solution to create requisitions and review
candidates via the web. An online employment application was developed. Performance management metrics were chosen, and a program of ongoing communication, training, and performance management was launched.
Key Elements of Taleo Solution:

Three-phase rolling implementation


Design of common Candidate Selection Workflows utilized across entire
organization

Heavy emphasis on change management including change analysis, focus


groups, process mapping sessions, communication plan, metrics analysis,
and ongoing training

Creation of standardized job templates across organization


Reorganization of staffing group along functional lines
Manager WebTop to allow direct hiring manager participation
Implementation of Taleo Agency to track and control vendor performance
Movement to full, on-line employment application to streamline process
and eliminate redundancies and paper
The Results

As a result of intensive change management and process reengineering efforts,


Staffing Services was able to quickly connect with its customers, and all project
goals were either met or exceeded, many in dramatic fashion. The ability of the
UHG project team to understand the sum of the factors that comprised UHG's
Staffing Topology was crucial to this success, and has laid a foundation for continuing improvements.
Key Success Measures:

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 Overall hard dollar cost savings in the first two years of implementation:
$23.2 million

 Reduced average time-to-fill from 50 - 75 days to 27 days


 New requisition approval averaging 3 days
 Reduced number of active job descriptions across organization from over
3,000 to approximately 900

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IV.

STAFFING TOPOLOGIES APPLIED: TOOLS


AND BEST PRACTICES

The value of understanding an organization's Staffing Topology can also be illustrated with an examination of how this knowledge is applied through tools and
best practices during an implementation.
As demonstrated, a Staffing Topology comprises a multitude of elements in three
primary categoriesKey Drivers, Hire Types, and Staffing Models. Each organization's Staffing Topology is as different as an individual fingerprint due not only
to the large number of separate elements, but also because each element assumes a
different level of importance in each instance. To suggest that what is true for one
healthcare company applies to all healthcare companies would be nave, although
they may have many individual elements in common, such as the Key Driver of an
ongoing shortage of nurses in the marketplace.
Similarly, geographic isolation would be defined quite differently for an organization trying to attract automobile designers to Cincinnati, Ohio, where the isolation is from other automakers, than an organization attempting to hire
accountants in Nome, Alaska, where the term isolation has an entirely different
meaning. The same is true of virtually every element of a Staffing Topology--each
is unique not only in definition, but also when considered in the context of other
elements. The same organization challenged with attracting automotive designers
to Cincinnati may not experience any difficulty attracting new college graduates,
due to the high quality of living afforded in the greater Cincinnati area.
Mapping Hire Types

The sum of the elements of a Staffing Topology also presents different challenges
during different stages of the hiring process. This is especially true of Staffing
Models, which often feature different levels of service and centralization across
process steps. Although it is common to refer to a process as centralized or selfservice, in reality, virtually all staffing processes are a hybrid of these elements.
The graph on the next page illustrates the variations of these two elements that are
possible within a single staffing process.
In the organization represented below, the process starts with Position Management, which, in this example, is handled through a standardized online form and
procedure, making it highly centralized. Performed by the hiring manager, this
task is self-service, placing it in the lower right quadrant. A centralized staffing
group then performs Sourcing and Screening, placing these activities well into the
upper right quadrant. In this illustration, Selection and Candidate Management
are primarily the responsibility of the Hiring Manager with assistance from local

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HR, placing them in the lower left quadrant. Finally, the Offer/Hire process is
handled by a local HR group with assistance from the hiring manager, placing this
step in the upper left quadrant.
FULL-SERVICE

Sourcing

Screening

Selection

CENTRALIZED

DECENTRALIZED

Offer/Hire

Position
Management
Candidate
Management

SELF-SERVICE

Mapping each of these process steps lends clarity to the roles and responsibilities
of the hiring team and facilitates an understanding of the characteristics common
to Staffing Models featuring similar levels of centralization and service. Importantly, it also provides the basis for configuring a staffing solution that will enable
optimal staffing processes. Characteristics of these Staffing Model elements are
described below:
Full-Service

 High-touch, strategic hiring process


 HR and/or Compensation own or assist in offer process
 Likelihood of dedicated, full-time Staffing Specialists
 Possibility of sourcing specialists
 Sourcing typically more candidate-centric vs. requisition-centric
Self-Service

 Hiring managers own bulk of hiring process


 HR, if involved, plays extremely limited, administrative role
 Sourcing typically highly tactical vs. strategic

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 Hiring process varies widely between locations


 Little or no information available for reporting or performance management
Centralized

 High level of control by management over recruiting strategy


 Centralization can refer to budget, process, resources, and/or metrics
 Standardized hiring process is likely
 Often a mandated adherence to corporate metrics
 Likelihood of bureaucratic checks and balances
Decentralized

 Typically an ad hoc recruiting strategy


 Hiring managers control sourcing budget
 Loosely defined hiring guidelines or processes
 Minimal use of performance metrics
 Sourcing is often reactive vs. proactive
The Topology element across which it is most useful to draw comparisons is Hire
Type, as there are typically similarities across processes designed for similar Hire
Types. On a macro level, the processes utilized by two major department store
chains to hire distribution center workers might appear quite similar. It is important to understand that it is the ability to distinguish the differences between similar processes that leads to true understanding of the challenges to which they will
give rise. After all, at the highest level, all staffing processes are but two steps: need
identified and candidate hired.
While taken to the extreme, this illustrates the fallacy behind the one-size-fitsall approach to implementing technology, and the reason so many implementations fail to reach their stated goals. Comparison is useful, but just as the backgrounds and resumes of two candidates may appear to be very similar on the
surface, a closer examination of what lies beyond those similarities is the critical
difference in making a quality hire. Comparison is most useful within a single
organization with multiple Hire Types, where further reiterations of this exercise
illustrate the differences that may exist between them, an important step in
designing a strategy and configuring an effective enterprise solution.

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Process Mapping

Beyond mapping Hire Types as discussed above, true understanding requires the
construction of detailed process maps that examine the entire hiring process, stepby-step. Detailing the differences between internal and external staffing processes,
and those that might exist across different Hire Types and/or business units, locations, etc. is an essential step to understanding how technology and metrics can be
most effectively applied.
Configurable Workflows

From detailed process maps, it is possible to construct technology-enabled, configurable workflows that will allow an organization to efficiently move candidates
through as many hiring processes as may exist across locations or Hire Types.
Having a common platform for all Hire Types, one that satisfies the needs of a
diverse, global organization, while integrating the common threads that bind
them, provides a considerable strategic advantage. Beyond the well-known benefits of scalability, flexibility, and reliability that are the hallmarks of a global solution lies an unparalleled opportunity for shared communication and metrics,
yielding yet another level of tangible and intangible benefits that are derived from
shared experiences and common practices.
For staffing technology to support and enable workflow variety within Staffing
Models, it must offer complete configurability that can be easily modified in realtime as business models and needs change. Moreover, to avoid delays and high
costs, the organization must have the latitude to make these changes itself, without reliance on third-party vendors.
Skills Database

As important to back-end candidate-processing strategies as configurable workflows are, so is a shared skills database to the front-end work of attracting and
screening top-notch talent. Moreover, that shared skills database, when correctly
configured, can provide the basis for a skills gap analysis of the assembled workforce against corporate goals. Skills are the common language spoken across a
family of jobs, both for employees and candidates. The definition of a skills database within a shared platform is increasingly becoming a staple of an organization
that truly understands the impact and benefits of globalization. Especially when
coupled with well-defined competency models, a skills database is an essential step
to enabling an HCM strategy with resources deployed in true supply chain fashion.
Staffing Topologies Knowledge Base

One does not need to go back more than a decade to find a combination of four
dramatic changes in the staffing environment, the effects of which have combined
to change the way companies must act to attract talent. The first was, of course,
the Internet. The second was the high-tech talent shortage of the mid-1990's dur-

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ing which many organizations, for the first time in their history, had jobs that
would go unfilled regardless of how many resources were thrown at the problem.
This unprecedented challenge, more than any other factor, raised the bar on what
constitutes a world-class staffing function. By necessity, staffing became the top
priority of many organizations, and led to a dramatic acceleration of the state-ofthe-art of staffing.
It could be argued that the third factor impacting staffing today has been around
for much longer than 10 yearsthat it goes back decades to when Personnel
Departments became known as Human Resources Departments (an effort that
actually began in the 1950s). However, only in the last few years have HR in general, and staffing in particular, begun to earn a seat at the table as a strategic
resource. This evolution has helped to feed, in turn, the evolution of technology
to produce the tools HR requires to fulfill this mandate.
The fourth factor having a dramatic impact on HR and staffing today is globalization, the full effects of which are yet to come. As organizations seek to think globally and act locally, strategic enterprise solutions that are configurable to meet
diverse global environments, from regulatory requirements to cultural differences,
present an enormous opportunity.
Combined, these factors point large, complex organizations toward a course of
analysis and knowledge sharing that will lead to a deep understanding of Staffing
Topologies. The dynamic nature of staffing dictates that this path to understanding cannot be divined based solely on observation or intuition. It requires a commitment to a data-driven staffing function, along with the desire to network and
partner with others willing to share their experiences. While the linkages between
various Topology elements and their associated challenges and solutions differ
between organizations, there are also significant commonalities across industry
verticals, Hire Types, and users of similar technology platforms. The body of
knowledge contained within a user community is an invaluable tool to providing
insights that transcend individual organizations, leading to the discovery and definition of best practices that can be readily adapted to any circumstances.
This community is the foundation for the creation of a comprehensive, searchable
knowledge base that maps the relationships between Topology elements and solutions, and details real-world case studies demonstrating actual success. Access to
this knowledge base is an instrumental tool in providing return on staffing investments.

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V.

CONCLUSION

The formula for success in staffing in the 21st Century begins with an understanding of the elements of a Staffing Topology as the root of the challenges that
must be addressed. With that knowledge, organizations can use technology to
enable a data-driven function, in which data is used to effectively manage critical
strategic initiatives. This requires an intimate familiarity with the factors that
make up an organization's Staffing Topology across multiple Hire Types, in concert with the dynamic forces that shape an organization both from within and
without, and as executed through the inherent strengths and limitations of various
Staffing Models. This knowledge will enable the formation and continual reassessment of the appropriate attraction and retention strategies, ensuring alignment
with best practices. It will allow the organization to react quickly to make necessary adjustments as factors change, avoiding the lost revenue and customer dissatisfaction that result from operational inefficiencies.
The introduction of Staffing Topologies to the HR lexicon provides an opportunity to clarify the rules of engagement for staffing in the 21st Century, and a
means by which the challenges facing organizations today can be successfully
negotiated. This is a critical step in the evolution toward an enterprise solution
that is configured to meet the dynamic needs of the complete organization.

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