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Stafng Topologies:
Mapping stafng processes for complex organizations
Executive Summary
Stafng Topologies:
Mapping stafng processes for complex organizations
Table of Contents
I.
II.
III.
IV.
V.
CONCLUSION.............................................................................................25
Stafng Topologies:
Mapping stafng processes for complex organizations
I.
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
Stafng Topologies:
Mapping stafng processes for complex organizations
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
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
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:
Stafng Topologies:
Mapping stafng processes for complex organizations
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
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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Stafng Topologies:
Mapping stafng processes for complex organizations
II.
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
105
100
S&P 500
95
90
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.
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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
12
A more effective talent management is not only about better HR processes, its about a different
mindset. War for Talent, 2001, McKinsey & Company
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
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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.
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Stafng Topologies:
Mapping stafng processes for complex organizations
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.
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Stafng Topologies:
Mapping stafng processes for complex organizations
III.
Professional
Technical
Campus
Executive
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Stafng Topologies:
Mapping stafng processes for complex organizations
Staffing Model:
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:
17
Stafng Topologies:
Mapping stafng processes for complex organizations
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:
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Stafng Topologies:
Mapping stafng processes for complex organizations
Overall hard dollar cost savings in the first two years of implementation:
$23.2 million
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Stafng Topologies:
Mapping stafng processes for complex organizations
IV.
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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Stafng Topologies:
Mapping stafng processes for complex organizations
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
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Stafng Topologies:
Mapping stafng processes for complex organizations
22
Stafng Topologies:
Mapping stafng processes for complex organizations
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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Stafng Topologies:
Mapping stafng processes for complex organizations
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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Stafng Topologies:
Mapping stafng processes for complex organizations
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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Stafng Topologies:
Mapping stafng processes for complex organizations
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