Allocating T& D resources based on contributions

Segmentation
Division of workforce into parts that are treated differently Labor economics- organizational resources are scarce & need to be allocated most heavily in places that have the greatest payoff So- develop super keepers

Purpose of segmentation
Increase the ratio of top performers to average or poor performers Increase bonuses for top performers to reward or create incentives for better performance overall Reduce unwanted turnover Close skill gaps or correcting skill mix Attract enough employees Reduce surplus employees

Potential criteria for segmentation

Category Strategic Impact Sample composition
Strategic Core Requisite Non-core Performance ratings Turnover Measurable performance Job grade Function Subunit Technical Social Managerial Education Age, gender location Security vs growth Social vs individual Part time vs full time

Performance & Behavior Organization unit/job family Skill/competence profile

Demographics Employee value & preferences

 There can be more than one criteria depending upon the problems & organizational situation

Determining segments that require analysis

Problems to be addressed Criticality of employee segment & the firms business strategy Talent mgmt software

Matching segmentation purpose & criteria

Criteria Increasing More ratio of top rewards for employees top
performers

Decreasi ng turnover H H

Closing skill gap H M

Inability to Reducing attract employee employees surplus

Strategic impact Performan ce & beh

High H

H H

H H

H H

Org. Unit/job family

Skill profile H Demograp hics

Employee values & preferences

M L M

M H H

H L L

H H M

H M L

L
M

Case
Name : Sibson consulting Problem: Skill mix Segment criteria : practice area, consultant level, competence by consulting offering Services:
Leadership performance & rewards Employee effectiveness Sales & mktg effectiveness

Consultant
Associate Consultant: Not specialized, helps in all Senior consultant : Specialize in one or two practices & so staffing needs Principal

Solution
Practice leader identified competencies needed to perform work associated with major offerings of practice & estimated revenue for next year Data collection- about level of competence for each practice
Self rating Others

Desired Vs actual capacity Choke points/ gaps for competent staff Revenue gaps & surpluses Outcome: Surplus or staff required

Optimizing your investment in your employees

ROI of talent mgmt

Productivity & profitability growth Companies aim to increase ROI on activities that companies are engaged in & implied ROI on underlying assets reqd. to perform those activities e.g. human capital

Talent portfolio mgmt

Talent allocation Talent deployment 80/20 problem Sales force= 100 Client = 1000 If 20 Sales people- $80 million Revenue per sales person =$4

Sales model
Transactional- market coverage & focus on price & volume Consultative Customer needs & relationship mgmt skills Training to change to consultative modelbut failed

Talent deployment
Identify & mgmt of optimal talent portfolio to implement a cos strategy To increase ROI- Improve ability to:
Proactively identify no., type & quality of talent required to execute business strategy Effectively attract, retain, develop & leverage the talent through its talent relationship & talent performance processes.

Framework for making talent portfolio decisions

1.Operating model & operating objectives 2. Human capital critical success factors

4. Optimal TM processes

3. Optimal talent portfolio

Defining optimal talent portfolioTYPE of talent

E.g. global electronics mfrer Study to understand current & anticipated future business environment- change in law, increasing competition, lower pricing pressures, increase in raw material costs Determine what changes are requd in strategy, operating model, objectives etcnew product devp, operation, brand mgmt, customer relations HUMAN CAPITAL

 Talent needed to be determined on activity activity basis Type of talent reqd. Not reqd Talent segment/ roles compose type of talent

Framework for identifying talent types

Defining optimal talent portfolioNumber

Driven by budget requirement & annual operating plan vs type of talent reqd Only current employee demographics Segmented along talent lines of function or level vs focused on what specific segments are most/least critical

Sizing the portfolio

Current view- characteristics & capabilities of current Dynamic- how behaving Strategic- requirement of future portfolio