Set Talent in Motion

Transcripción

HCI
Research
Set Talent in Motion:
Achieving Organizational
Success with Talent Mobility
In partnership with:
HCI Research
Table of Contents
Executive Summary......................................................................... 1
About this Research........................................................................ 3
Definition of Key Terms................................................................... 3
Introduction..................................................................................... 4
Leveraging the Mobility Environment............................................ 5
Defining Talent Mobility.................................................................. 6
Recognizing Talent Mobilizers........................................................ 7
Proactive Versus Reactive Talent Mobilizers................................ 10
Talent Mobility Behaviors & Practices.......................................... 12
Identifying & Addressing Talent Mobility Challenges.................. 17
Conclusions & Recommendations................................................ 19
Appendix A: About the Research Partners.................................. 22
Appendix B: Respondent Demographics..................................... 23
Appendix C: Works Cited............................................................. 25
ii
Copyright © 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
Set Talent in Motion: Achieving Organizational Success with Talent Mobility
Set Talent in Motion:
Achieving Organizational
Success with Talent Mobility
Executive Summary
This original research report by the Human Capital Institute (HCI) and Lee
Hecht Harrison (LHH) explores the discipline of Talent Mobility, an integrated
talent management process supporting talent movement that hinges on an
organization’s ability to effectively understand, develop, and deploy talent
in response to business needs within and outside of an organization. These
behavioral segments are defined in the following way:
• Understand — organizations focus on talent mobility as a priority, prepare
managers to assess their talent and actively communicate with employees
information and plans about career opportunities.
• Develop — organizations provide and prioritize opportunities for
employees to gain experience and increase skills, while holding managers
accountable for developing employees.
• D
eploy — organizations focus on filling open roles internally and ensuring
that employees have the tools they need to move into new and different
positions, while also recognizing redeployment and outplacement as critical
components of the talent mobility lifecycle.
A 37-item survey distributed to organizational leaders in the spring of 2013
formed the basis of this research in which we examined current concepts,
practices and challenges, and proposed a new holistic model of Talent Mobility
for businesses to capitalize on.
1
HCI Research
The greatest challenges facing Talent Mobility in business today are: confusion
and inconsistent definitions of what “Talent Mobility” is; a lack of a true,
strategic approach to designing and implementing related programs and
initiatives; and, a lack of proper prioritization across the broader goals of the
organization. Our research proposed and tested a holistic model of Talent
Mobility, and found that organizations and leaders must plan and implement
three distinct processes in order to achieve Talent Mobility success:
1. Understand an organization’s current talent and needs;
2. Strategically Develop that talent; and
3. Effectively Deploy the talent.
Our hypothesis was that Committed Talent Mobilizers — organizations that
exhibit all three of the behaviors above — would achieve better bottom-line
results, as well as espouse a more proactive approach to Talent Mobility than
would other organizations. Our survey findings confirmed this hypothesis.
Organizational leaders from Committed Talent Mobilizers are more likely to
agree that within their business, “High potentials are identified, development
plans are created, career discussions are conducted regularly, and succession
plans for key positions are created and supported.” Moreover, organizations
that have embraced a holistic view of Talent Mobility are much more likely than
other organizations to report revenue growth at or above target goals.
The report illustrates the Talent Mobility landscape today, highlighting
common behaviors and practices, and identifies key areas for improvement.
Most notably:
• T
o meet the demands of today’s employee development needs related
to Talent Mobility, organizations must be more transparent about
opportunities for lateral moves and advancement opportunities.
• A
s a whole, organizations are underperforming in terms of providing
employees with information and resources needed to improve their skills,
and do not prioritize or adequately fund Talent Mobility practices.
• E
mployees today expect -and organizations will benefit from- enhanced
employee opportunities such as working in cross-functional teams, task/
job rotation, and stretch assignments.
• T
o ensure that Talent Mobility is treated as a holistic process, more
collaboration is needed among Recruiting & Hiring, Training &
Development, and HR Business Partners.
2
About This Research
This research study was developed in a partnership between the Human Capital
Institute (HCI) and Lee Hecht Harrison (LHH), and was conducted in the spring
of 2013. A total of 435 valid surveys were completed in March 2013 by HCI
members and LHH clients, the results of which make up the core of this research.
As part of the HCI research process, qualitative interviews were conducted with
business leaders, practitioners, and subject matter experts on the topic of Talent
Mobility. These contributors include:
• Margo Armstrong, Assistant Vice President, Talent Practices, MassMutual
• Wanda Shoer, Director of Global Mobility Operations, Johnson & Johnson
The research findings are summarized in this report, along with information and
quotes from relevant secondary sources, including white papers, articles, books,
interviews and case studies.
Definition of Key Terms
Talent Mobility
An integrated talent management process supporting talent movement that
hinges on an organization’s ability to effectively understand, develop, and deploy
talent in response to business needs.
Indices of Understand, Develop & Deploy
Indices produced by the HCI/LHH survey analysis that represent the three
essential behavioral components of Talent Mobility.
• C
ommitted Talent Mobilizers
Respondent organizations that scored highly on all three Talent Mobility
indices: Understand, Develop and Deploy.
• T
ier II Talent Mobilizers
Respondent organizations that scored highly on two of the three Talent
Mobility indices.
• T
ier I Talent Mobilizers
Respondent organizations that scored highly on only one of the three
Talent Mobility indices.
• N
on-Mobilizers
Respondent organizations that did not score highly on any of the three
Talent Mobility indices.
Proactive Talent Mobility
Organizations characterized by activities such as identifying high-potential
employees, creating development plans, holding regular career discussions, and
creating and supporting succession plans for key positions.
3
HCI Research
Reactive Talent Mobility
Organizations that tend not to identify future talent needs, have a weak
pipeline, and only fill key roles after they are vacated.
Introduction
Today’s leading organizations are devoting more attention than ever before
to Talent Mobility. What was once recognized as a strategy for preparing
employees to take on global assignments has evolved considerably in the
past few years. Today, it has become a more comprehensive workforce
planning strategy and approach that encompasses the readiness for
talent movement and the management process of shifting talent across
an organization’s projects, roles, teams, departments, and locations. It
embraces and plans for increased lateral and vertical movement among
employees, domestic and global moves, and even transitions talent outside
of the organization.
When effectively planned and implemented, a Talent Mobility program is
wholly beneficial for both the organization and key employees. It enables an
organization to lower its talent acquisition costs by capitalizing more efficiently
on in-house talent, helps leaders develop a more capable and resilient talent
pipeline, and helps deliver strong financial performance. At the same time,
Talent Mobility is a way to engage top performers and make organization-wide
opportunities more readily available to key talent.
One study remarked on this trend: “One of the biggest success-drivers in
enduring organizations is their ability to rapidly and transparently move people
from role to role and function to function as business needs change. To do
this requires a new way of thinking about and managing talent. It requires
managers to become more fluent and transparent when speaking about talent
and it requires employees to become more actively engaged and candid about
their career aspirations and development goals.”1
1
ersin by Deloitte. (2009, November
B
18). Talent Mobility: The New Era of
Talent Management. Retrieved May 24,
2013, from www.bersin.com
4
In this research, we found that in order to achieve success with a Talent Mobility
program, organizations and leaders must first understand the organization’s
current talent and needs, strategically develop that talent, and effectively
deploy it to where it can best support organizational goals. The nebulous
nature of the term “Talent Mobility” raises questions about how it is perceived
and practiced today, and offers us the opportunity to more clearly define it in
this report. In addition to obtaining baseline data about the practice of Talent
Mobility, our research examined what behaviors differentiate organizations
as they mobilize their talent. Measures tied to the indices of Understand,
Develop, and Deploy were analyzed to see which, if any, impact revenue and
an organization’s approach to Talent Mobility.
“For the generation now
entering the workforce,
there is a big interest in
moving around a business,
in doing different things with
your career and making an
immediate impact. To be able
to support that kind of speed,
organizations need to think
about talent mobility and
capitalize on the practice of
it. Moving talent laterally is a
way to keep new generations
interested and focused on
expanding their skills and
support the business, while
also giving them what they
need in order to develop into
leaders.”
— Wanda Shoer, Director of
Global Mobility Operations,
Johnson & Johnson
2
ace, A. (2012, July). The Enduring
P
Talent Trial. T+D, p. 22.
3
arnevale, T. (2005, January). The
C
Coming Labor and Skills Shortage.
T+D, pp. 37– 41.
4
opulation Division, Department of
P
Economic & Social Affairs, United
Nations. (2002). World Population
Ageing: 1950-2050. New York: United
Nations Publications.
5
ureau of Labor Statistics, U.S.
B
Department of Labor. (2012, September
18). Retrieved May 24, 2013, from
Bureau of Labor Statistics: www.bls.gov
5
Leveraging the Mobility Environment
The state of talent management today calls for solutions that Talent Mobility can
offer. On one hand, organizations are experiencing a shortage of skilled labor
and weak leadership pipelines. “Despite their zeal for workforce development,
CEOs admit their shortcomings when it comes to securing the right people
for the right jobs to drive growth,” Ann Pace notes in a 2012 T +D Magazine
article. “Because of talent constraints during the past 12 months, 31 percent [of
CEOs] could not innovate effectively, 29 percent were unable to pursue a market
opportunity, and 24 percent canceled or delayed a key strategic initiative.”2
These challenges are only expected to intensify in many developed countries
as large numbers of workers reach the retirement age. In the U.S., more than 46
million Baby Boomers with training and education beyond high school will be
over age 57 in 2020, which could translate into a labor shortage of as many as 20
million skilled workers.3 Worldwide, one in 12 individuals was at least 60 years
old in 1950, a statistic that increased to one in 10 in 2000, and the proportion is
expected to increase to more than one in five by 2050.4
Simultaneously, as the workforce demographic is changing, the drive for
workplace flexibility continues to alter the talent-management landscape. Many
younger workers feel restricted by the standardized 9 – 5 work cycle, while more
mature workers find themselves caring for children and/or aging parents while
also managing work obligations. Employers are meeting these demands by
redefining when, where, and how workers are able to do their jobs — remotely,
on a flexible schedule, and/or through job-sharing, for example.
In the midst of such sweeping change, employee turnover — particularly among
younger workers — is a challenge for today’s organizations. While the median
job tenure for U.S. workers age 65 and older was about 10.3 years in 2012, it was
only 3.2 years for workers ages 25 to 34, and for all U.S. workers, the median
employee tenure was 4.6 years.5 Employees in the 21st century are simply not
planning to “make a career” at a single organization (or even two or three).
Many of these individuals are seeking job fulfillment and rapid career growth,
and they are willing and able to “job hop” to achieve those goals. According
to a PricewaterhouseCoopers study, 38% of Millenials surveyed agreed with the
statement “I am always actively on the lookout for other opportunities and keep
an eye on the job market.”
The recent economic downturn and tenuous recovery has potentially
compounded this turnover issue, as L&D departments have refrained from
offering the full spectrum of training programs and development processes
to employees, further adding to the “stagnation” of workers and their skillsets. If employees lack meaningful challenges in their roles and feel that career
opportunities are limited, they are organizational flight risks — especially as the
economy rebounds. In addition to the loss of productive and high-potential
talent that voluntary turnover can result in, replacing that key talent is an
HCI Research
Talent Mobility is an
integrated talent management
process supporting talent
movement that hinges on
an organization’s ability
to effectively understand,
develop, and deploy talent in
response to business needs.
expensive proposition for organizations, as turnover costs can range from 93200% of a departing employee’s salary. 6
Organizations are realizing more than ever that not having the right
employees strategically deployed hinders productivity and is a risk to the
organization’s overall health and talent pool. In addition, a failure to deploy
talent most effectively leads to increased work for recruiting and acquisition
— departments that often operate reactively to fill critical, vacant roles. In
response to this challenge, organizations and leaders can address Talent
Mobility practices and integrate a new, holistic perspective and approach to it
in their organizational culture.
Defining Talent Mobility
As a first step in our survey research, we asked respondents how their
organizations currently define Talent Mobility. No consensus emerged; rather,
organizational leaders expressed wide variance in how their organizations
perceive the term. Nearly half of respondents (47%) cited that development of
in-house talent most closely aligned with their organization’s definition of Talent
Mobility, followed by promotions/advancement of roles (see Fig. 1).
Figure 1:
What is Talent Mobility?
Development of in-house talent
47%
Promotions/Advancement of roles
29%
Lateral moves within the business
13%
Moving positions and/or tasks
to people best positioned
to manage them
12%
0%
10%
20%
30% 40%
50%
Fig. 1 demonstrates how respondent organizations perceive or define Talent Mobility.
6
rotherton, P. (2010, December).
B
Warning Signs of Turnover Waiting to
Happen. T+D, p. 24.
6
In order to address the lack of a basic definition of Talent Mobility among
organizational leaders, we propose the following definition that is supported
by our research data and analysis: Talent Mobility is an integrated talent
management process supporting talent movement that hinges on an
organization’s ability to effectively understand, develop and deploy talent in
response to business needs. In order to achieve success in a Talent Mobility
program, organizations must implement effective ways to assess the talent
already in-house, design development methods to increase the scope and
skill-sets of that talent, and enforce plans to deploy that talent according to the
needs of the organization (see Fig. 2).
nd
t
ers
t a n d Ta le n
Figure 2:
Holistic Model of
Talent Mobility
De
Know your employees’ strengths
and development needs
Talent
lop
ve
U
Talent
Mobilizers
y
lo
Dep
Plan and prioritize to help
employees gain experience
and increase skills
Provide the tools
and resources to move
employees into new internal
or external roles
Ta
le n
t
Fig. 2 illustrates the holistic model of Talent Mobility, an integrated process supporting
talent management that hinges on an organization’s ability to effectively understand,
develop, and deploy talent in response to business needs.
Recognizing Talent Mobilizers
Rather than a singular process within talent development, Talent Mobility is better
understood as a critical segment of the talent lifecycle that includes three primary
facets of talent mobilization — from strategically acquiring and assessing talent,
to actively developing those individuals, to preparing and deploying employees
effectively for roles inside or even outside of the organization. To explore the
impact of these on organizational performance, we conducted a factor analysis to
create three indices to capture the key elements of these behaviors — understand,
develop, and deploy. An organization scored “high” on an index if respondents
reported that the correlated behaviors listed below are practiced or offered 50%
of the time or more often. Those organizations that scored high on an index were
then categorized as an Understander, Developer, or Deployer, respectively.
Understanders — Organizations that understand their talent focus on
talent mobility as a priority, prepare managers to assess their talent and
actively communicate with employees information and plans about career
opportunities. Behavioral measures of Understanders include:
• Employees are well informed about open positions.
• Managers assess existing talent.
• Leaders invest financial resources into talent mobility.
• Organizations conduct company-wide talent reviews.
• Organizations hold regularly scheduled performance reviews.
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HCI Research
• Organizations use talent management software.
• Successors to key positions are identified ahead of need.
Developers — Organizations that develop their talent do so by providing
and prioritizing opportunities for them to gain experience and increase skills,
while holding managers accountable for developing employees. Behavioral
measures of Developers include:
• M
anagers are responsible and held accountable for building and
developing talent.
• Organizations use career planning processes or platforms.
• Opportunities for stretch assignments are offered/available.
• Coaching is offered/available.
• Internal networking is offered/available.
• Job search/skill development is offered if/when downsizing occurs.
Deployers — Organizations that deploy their talent effectively focus on filling
open roles internally and ensuring that employees have the tools they need
to move into new and different positions. These companies also recognize
redeployment and outplacement as critical components of the talent mobility
lifecycle. Behavioral measures of Deployers include:
• Redeployment is considered a key component of talent mobility.
• Outplacement is a key component of talent mobility.
• Dedication and seniority are rewarded with opportunities for
advancement.
• Management positions are typically filled internally.
• Organizations focus on moving job roles/tasks to people best positioned
to manage them.
• Organizations measure/track internal talent moves.
• Leaders provide employees with tools/information needed to capitalize
on internal opportunities.
We grouped organizations according to the extent to which they exhibit the
behaviors associated with Understanders, Developers, and/or Deployers to
determine what survey respondent organizations are doing, and how many
have adopted a holistic talent mobilization strategy (see Fig. 3).
Based on our data, we broke down respondents into one of four Talent Mobilizer
types — Non-Mobilizers, Tier I Talent Mobilizers, Tier II Talent Mobilizers,
and Committed Talent Mobilizers, and this classification showed a relatively
balanced distribution:
8
Committed
Set Talent in Motion: Achieving Organizational Success with Talent
Mobility
26%
26%
Talent Mobilizers
(3 out of 3 behaviors)
Non-Mobilizers
Figure 3:
Talent Mobilization Types
24%
26%
26%
24%
26%
26%
Tier I Talent Mobilizers
Committed Talent Mobilizers
(1
(3 out
out of
of 3
3 behaviors)
behaviors)
Tier
II Talent Mobilizers
Non-Mobilizers
(2
24%
24%
26%
24%
24%
26%
(1 out
out of
of 3
3 behaviors)
behaviors)
(3
Tier II Talent Mobilizers
Non-Mobilizers
(0
24%
24%
Fig. 3 illustrates the breakdown of talent mobilization types
— Non-Mobilizers,
(1 out
of 3 behaviors) Tier I
Talent Mobilizers, Tier II Talent Mobilizers, and Committed Talent Mobilizers.
“As a leader, understanding
what it takes to develop an
individual and knowing what
tools are available to do so is
essential. Recognizing what
kinds of development methods
are offered and which ones
are most appropriate to
increase necessary skills
can have a significant and
positive impact in how these
programs are used. Also,
understanding who your talent
is and how you can help them
grow is key. This process of
understanding, developing,
and deploying talent is critical
to effective talent mobility;
flexibility and continuous
analysis is also vital.”
— Wanda Shoer,
Director of Global Mobility
Operations, Johnson & Johnson
7
Oracle. (2012, June). Talent Mobility: An
Oracle White Paper.
9
• N
on-Mobilizers: About one quarter (26%) of organizations
did not score highly
on any of the three behavioral indices — Understand, Develop, or Deploy.
• T
ier I Talent Mobilizers: An additional quarter of respondents (24%) scored
highly on ONE behavior index.
• T
ier II Talent Mobilizers: 24% of respondents scored highly on TWO
behavioral indices.
• C
ommitted Talent Mobilizers: 26% of respondents scored highly on all
three behavioral indices related to Talent Mobilization — Understand,
Develop, and Deploy.
After breaking down our respondents into their respective mobilization groups,
we wanted to see what, if any, impact these behaviors had on organizational
performance. We hypothesized that Committed Talent Mobilizers (those
respondent organizations that exhibit the behaviors of Understanding,
Developing AND Deploying talent) would experience higher revenue growth, as
well as tend to be more proactive in their approach to Talent Mobility, than would
other organizations.
Indeed, after a detailed analysis, our hypothesis was confirmed, demonstrating
the positive impact a robust Talent Mobility practice can have on business
performance. There is a statistically significant relationship between Committed
Talent Mobilizers and revenue growth (see Fig. 4). More than three quarters
(81%) of Committed Talent Mobilizers report on or above target revenue growth
rates, compared with only 68% of other organizations.
Notably, these data show that it’s not sufficient for organizations to be effective
at one behavioral component of Talent Mobility (Understand/Develop/Deploy),
or even two. Rather, Committed Talent Mobilizers are inclined to aggressively
focus on effectively implementing and supporting Talent Mobility. They are
12% more likely than other organizations to report positive revenue growth,
demonstrating a clear return on investment for businesses that prioritize this
practice. Organizations need to evaluate how they measure up on each of
HCI Research
the three behavior indices of Understand, Develop, and Deploy, and use that
information as a roadmap for areas of improvement and future goals.
As one article noted, “Successful talent mobility programs yield substantial
enterprisewide benefits, including lower talent acquisition costs, stronger
leadership teams, and better financial performance.”7 This research corroborates
that statement, and more importantly, it identifies the three essential behavioral
components that can help organizations forecast the next steps they need to
take to adopt a strategic Talent Mobility focus.
Figure 4:
Respondent Organizations
with Revenue Growth
On/Above Target
*Statistically significant difference at
<.05 level.
Non-Mobilizers
All Others
Gap
71%
73%
-2%
All Others
68%
75%
All Others
69%
74%
All Others
81%*
69%
-7%
-5%
12%
Fig. 4 shows the revenue growth rate Committed Talent Mobilizers experienced in the last
fiscal year is 12% higher than other organizations.
Proactive vs. Reactive Talent Mobilizers
— organizations that
Understand, Develop, and
Deploy talent — are 12%
more likely to experience
positive revenue growth
than other organizations.
Part of the struggle facing Talent Mobility and its limited formal practice in
many organizations today is how the discipline is treated as an afterthought in
comparison to other talent management processes. The way an organization
and its leaders address Talent Mobility can result in very different outcomes,
and our survey looked specifically at a proactive versus a reactive approach to
Talent Mobility.
Respondents were asked to characterize their organization in terms of one of two
approaches to Talent Mobility:
• Proactive: High potentials are identified, development plans are created,
career discussions are conducted regularly, succession plans for key
positions are created and supported.
• Reactive: Future talent needs have not been identified, there is a weak
talent pipeline, roles are only filled when they are vacated.
Among the behavioral indices, our data found that Non-Mobilizers are much less
likely than other organizations are to describe their approach to Talent Mobility
as “Proactive” (2% vs. 61 %), and Tier II Talent Mobilizers are more likely than
10
other organizations are to be “Proactive” (54% vs. 42%). An even larger difference
emerged between Committed Talent Mobilizers, as 87% of these respondents
proactively address Talent Mobility versus only 30% of others (see Fig. 5.)
Figure 5:
A Proactive Approach
to Talent Mobility
* Statistically significant difference at
<.05 level.
“As organizations welcome
in more Gen Y employees
and Baby Boomers exit,
the leadership teams
are younger. And in
that environment, the
opportunity for vertical
movement is very slim.
Employees must be willing
to sidestep, move around,
and grow their skills in new
and different ways. Vertical
movement still happens, but
not nearly as frequently.”
Margo Armstrong,
Assistant Vice President of
Talent Practices, MassMutual
Figure 6:
Contrasting Approaches to
Talent Mobility
Non-Mobilizers
All Others
GAP
2%
61%*
-59%
All Others
38%
47%
All Others
54%*
42%
All Others
87%*
30%
-9%
12%
57%
Fig. 5 demonstrates that Committed Talent Mobilizers and Tier II Talent Mobilizers are
12–57% more likely than other organizations to take a proactive approach to Talent Mobility.
When we looked at the breakdown among all of our survey respondents, slightly
more than half of organizational leaders (56%) reported operating reactively
regarding talent moves within the business, while the remaining 44% characterize
their organization as proactive in their approach to Talent Mobility (see Fig. 6).
Thus, for the majority of organizations, there is an acute need for improvement in
terms of recognizing the need for and benefits of a robust Talent Mobility program.
Margo Armstrong from MassMutual commented on the risk of a rushed and
careless approach to talent in business today. “Having an ‘emergency successor’
is not sufficient. A reactive approach to talent mobility works in the short-term
but it is not strategic; it’s a stop gap measure,” she said. “An organization may be
able to keep its doors open, but operating reactively is not going to benefit the
business.” Accordingly, organizations and leaders need to focus on designing
and implementing related plans and processes to support a proactive approach
to Talent Mobility.
56%
56%
44%
44%
Reactive
Proactive
Fig. 6 illustrates that among all survey respondent organizations, more than half (56%) take
a reactive approach to Talent Mobility.
11
HCI Research
A cross tabulation of our data with demographic variables yielded another
interesting finding, which is larger organizations and those in certain industries
tend to be more proactive in their approaches to Talent Mobility (see Fig.
7 and Fig. 8). Organizations with more than 10,000 employees and those in
financial markets and banking, as well as those in manufacturing, construction
and chemical industries, are most likely to proactively address Talent Mobility.
This tendency may be a direct result of larger organizations having increased
budgets and fewer constraints on talent management programs and practices
overall. In the same vein, businesses with more employees may be better
positioned to create and offer a wider variety of roles in the organization that a
Talent Mobility practice can best leverage.
Figure 7:
Proactive Approach by
Company Size
Small
<1,000 employees
Medium
1,001–10,000 employees
Large
10,001+ employees
35%
35%
60%
Fig. 7 shows a positive correlation between company size and a proactive approach to Talent
Mobility. The larger an organization is, the more likely it is to proactively address Talent Mobility.
Figure 8:
Proactive Approach
by Industry
Education/ Healthcare/
Government
Life
Sciences
21%
39%
Professional
Services/Tech/
Telecomm
Manufacturing/
Construction/
Chemicals
Financial/
Banking
39%
54%
57%
Fig. 8 identifies the industries of respondent organizations that take a proactive approach to
Talent Mobility. Financial/Banking organizations are most likely to report a proactive approach
to Talent Mobility than other industries.
Talent Mobility Behaviors & Practices
Only 41% of respondents
are well informed about
opportunities for lateral
mobility within their firms,
and even fewer report
having transparency around
advancement opportunities
in their organization.
12
While many organizations and leaders recognize the utility of effectively
prioritizing and practicing Talent Mobility, not everyone is able to support
that acknowledgement with action. To that end, we explored various
organizational behaviors and practices at our respondent companies to
determine which ones are most frequently exhibited, and which may be
lacking within businesses today.
An effective Talent Mobility discipline relies heavily on the clear and consistent
distribution of information. With regard to communication and transparency,
at least 50% of our respondent organizations agreed that they actively work
to make internal job openings available to all employees, communicate about
the open positions outside of one’s team, and fill management positions
from within the organization (see Fig. 9). These findings are promising as they
indicate that organizations are beginning to understand some of the ways
76% of respondent
organizations are not giving
employees the information
or resources they need to
improve their skills.
Figure 9:
Talent Mobility Behaviors
(% agree/strongly agree)
Talent Mobility can be fostered in organizations. However, fewer than half
(41%) of respondents agreed they are well informed about opportunities
for lateral mobility within their firms, and even less agreed that there is
transparency around advancement opportunities in their organization. It’s
clear that some organizations and leaders are behaving in a way that supports
Talent Mobility, but there remains vast room for improvement.
Advancement opportunities within
the organization are available to
non-management level employees
67%
Management positions are
typically filled from within
59%
Employees are well informed
about open positions outside
their team
56%
about open positions outside
their business unit/department
50%
about opportunities
for upward mobility
45%
about opportunities
for lateral mobility
“Outplacement is absolutely
an important component
of talent mobility. When
business needs require
restructuring that results
in reductions, companies
that offer outplacement
are focused on the entire
lifecycle, providing impacted
employees with the support
and development they need
to mobilize and move into
their next role outside the
organization.”
Kristen Leverone,
Senior Vice President,
Global Practice Leader of
Talent Developmentt,
Lee Hecht Harrison
13
41%
There is transparency within
my organization around
advancement opportunities
37%
Dedication and seniority are
rewarded with advancement
apportunities
Management positions are
typically filled externally
0%
36%
20%
10%
20%
30% 40%
50%
60%
70%
Fig. 9 illustrates how much respondents agree that communication, transparency, and
succession planning behaviors are practiced in their organizations.
When we examined survey respondents’ characterization of their organizations’
Talent Mobility priorities, striking findings emerged (see Fig. 10). The levels of
agreement with these measures are low across all respondents, garnering at
most 34%. Indeed, this tells us that critical components of Talent Mobility are
not being adequately addressed by organizations and their leaders. Notably,
76% of respondent organizations are not giving employees the information
or resources needed to improve their skills, and 67% of organizations do not
prioritize or adequately fund Talent Mobility practices.
HCI Research
Figure 10:
Prioritization of
Talent Mobility
(% agree/strongly agree)
Leaders in my organization invest financial
resources into the practice of Talent Mobility
34%
Leaders in my organization spend time ensuring
Talent Mobility is an organizational priority
33%
Redeployment is considered a key component
of Talent Mobility efforts
31%
Leaders in my organizations arm employees
with tools/information they need to capitalize on
internal Talent Mobility opportunities
24%
There are incentives in place for management
to support, promote, and encourage Talent
Mobility within the organization
18%
Outplacement is a key component of
talent Mobility efforts
15%
0%
10%
20%
30% 40% 50%
Fig. 10 demonstrates how much respondents agree that Talent Mobility is perceived,
prioritized and supported by leaders within their organizations.
“Talent management
tools are great, but they
are secondary to having
leadership buy-in that can
help implement development
plans and support
employees. Managers need
to support opportunities like
peer networks and helping
their employees build
relationships across other
areas of an organization.
Technology can enhance
those experiences and
establish a process around
them, but it begins with
leaders who are invested
in the success of their
employees and the
business.”
Margo Armstrong, Assistant
Vice President of Talent
Practices, MassMutual
14
It’s important to note that 85% of our respondent organizations do not recognize
outplacement or redeployment as a component of Talent Mobility. But to be most
effectively leveraged, Talent Mobility must be understood as a holistic process
of any and all talent development and transitions, including external shifts. Our
data also found that 82% of organizations do not provide incentives to support,
promote, or encourage Talent Mobility practices among management. Like any
new initiative, it is critical that executive support and promotion is in place to foster
the growth and practice of Talent Mobility in order to drive sustainable success.
The ways in which leaders monitor in-house talent are worth noting, as the
first phase of a strategic Talent Mobility program is understanding the current
talent environment and skill-sets within one’s own organization. Nearly 9 out of
10 respondents report widespread use of traditional assessment tools such as
performance reviews (see Fig. 11). However, when asked about talent planning
for the future, much less activity is reported. Half of respondents report that their
organizations employ succession planning, and only 29% agree that employees
are offered formal career planning in the form of technology platforms, tracking,
or formal discussions with their supervisors and other senior management. In
addition, with fewer than a quarter (24%) organizations using talent management
software, it is likely that leaders are missing critical information that could help
them better understand talent needs and strengths across the organization.
Perhaps one of the greatest opportunities for improvement identified by these
data is that only 37% of respondents indicate that their organizations hold leaders
accountable for developing talent, which is arguably an essential component of the
secondary phase of Talent Mobility. “Developing top talent is a strategic business
imperative,” one OD Practitioner article notes. “As part of the strategic planning
process, companies divide customers into different segments so they properly address
individual needs and they invest in developing each segment differently according
to the potential for greater revenue margins, etc. Companies should do the same for
their jobs and talent. The idea is to have your best talent in your most important
jobs.”8 A robust and strategic Talent Mobility program is one of the best ways
organizations and leaders can achieve this goal of aligning skills to business needs.
Figure 11:
Talent Assessment
and Planning
Regularly scheduled
employee performance
reviews
89%
Managerial assessment of
existing talent
66%
Creation of succession
plans
50%
Regularly scheduled
company-wide talent reviews
“Experience in organizations
is really about breadth
and depth of knowledge.
When you get to a certain
leadership position in
the same department as
where you began, you
have essentially reached
your peak. In this era of
globalization and rapid
movement, leaders are
better prepared to take on a
higher-level role when they
have experienced a more
diverse trajectory, and they
understand many different
functions and processes
within the business.”
Margo Armstrong, Assistant
Vice President of Talent
Practices, MassMutual
8
Morgan, H., & Jardin, D. (2010, Vol.
42, No. 4). HR+OD=Integrated Talent
Management. OD Practitioner, pp.
23–29.
15
42%
Managers are responsible
and held accountable for
developing employees
Career planning
Absence tracking and
management data
Talent management
software
37%
29%
25%
24%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Fig. 11 shows what methods are used by survey respondent organizations to measure
talent, most notably performance reviews and managerial assessments of existing talent.
It is not particularly surprising that many of our respondents report frequent use
of established tools in employee development such as performance reviews,
formal onboarding and job training (see Fig. 12). However, newer strategies
and development methods such as working in cross-functional teams, task/job
rotation, and stretch assignments are more closely aligned with the demands of
today’s workforce and the nature of work — and these more collaborative-based,
innovative development techniques also actively prepare employees for mobility
across departments and functions.
While some organizations intuitively understand the need to grow well-rounded
future leaders that have hands-on experience and line of sight across the
business, many are missing the opportunity to expose employees to a variety
HCI Research
of assignments and experiences that would help them see the big picture. This
wide-angle perspective continues to grow in importance among leaders as the
nature of business continues to become more complex and intertwined. A leader
who is able to tap into a wealth of varied roles and experiences across a business
is better positioned to understand what needs to be done to sustain the business.
In support of this notion, one recent study found that one of the greatest drivers of
organizational success is the ability to quickly and transparently move employees
between roles and functions when needed.9
Figure 12:
Methods of Employee
Development
Frequently/Nearly Always or Always
Sometimes
Regularly scheduled
performance reviews
Never/Rarely
84%
Formal onboarding
11%
68%
19%
5%
13%
Formal job training
48%
37%
15%
Internal networking
44%
39%
17%
Opportunities to work in
cross-functional teams
44%
37%
19%
48%
14%
Opportunities for stretch
assignments
38%
Coaching
37%
40%
23%
Conferences/seminars
29%
44%
26%
Mentoring
27%
Task/job rotation
0%
43%
16%
43%
25%
30%
41%
50%
75%
100%
Fig. 12 identifies how frequently specific employee development methods are used with
respondent organizations.
9
alent Mobility: The New Era of Talent
T
Management. Retrieved May 24, 2013,
from www.bersin.com
10
.A. (2013). Trends and Best Practices
N
in Sourcing and Hiring Talent. Lee
Hecht Harrison White Paper.
11
racle. (2012, June). Talent Mobility:
O
An Oracle White Paper.
16
When asked whether their organization tracks internal talent moves, more than
half (60%) of respondents agreed. Of those organizations, approximately 4
out of 10 are able to fill at least half of roles internally; this demonstrates that
monitoring the movement of talent in an organization is one key step of the
Talent Mobility process (see Fig. 13 and Fig. 14). In addition to the cost savings
and morale boost achieved through internal sourcing,10 there is evidence of a
positive relationship between filling jobs from within and enhanced company
performance, as well as developing strong leaders. 11
Yes
No
No
43%
43%
57%
Yes
Figure 13:
Tracking Internal
Talent Moves:
Fig. 13 demonstrates that, among all respondents, 57% track or measure internal talent
movements in their organization.
41% say more than half
Figure 14:
Percentage of Roles
Filled Internally
8% 41% say more than half
10%
22%
10%
22%
28%
8%
33%
More than 75%
51–75%
36–50%
33%
16–35%
1–15%
27%
59% say half or fewer
“One of the greatest challenges
facing Talent Mobility is line
of sight and communication.
Employees need to be
more aware of available
opportunities that exist within
the organization. Fragments of
information don’t provide the
whole picture. It’s important to
implement the right technology
and processes to support the
transparency and transmission
of that information — what are
the skill-sets, the development
plans, the job openings,
and how can we integrate
that knowledge into a Talent
Mobility program?”
Margo Armstrong,
17
59% say half or fewer
Fig. 14 illustrates that of the respondent organizations that track talent moves, 41% fill
more than half of their organizational roles with internal talent.
Identifying and Addressing 41%
Talent
Mobility
say more
than half Challenges
While these data help present a clear case for the development of a Talent
Mobility program in any organization, significant challenges remain. Most
More than 75%
notably, there is a lack of strategic prioritization and effective approaches
to
51–75%
the practice, stemming from a lack of consensus about what Talent Mobility
36–50%
is and how it can be supported by organizational leaders and employees
16–35%
(see Fig. 15). It would appear that many larger organizations have the proper
1–15%
infrastructure in place to implement a Talent Mobility program, but leaders
and employees must take the leap and embrace the opportunities that a
59%
say half
or fewer
more formal, mobilized
talent
base
can offer.
The information and data outlined in this report can help address some of the
top challenges that organizations need to focus on before they are able to
effectively implement and leverage a Talent Mobility program. Our data show
that 21–26% of organizational leaders cannot clearly recognize or articulate what
Talent Mobility is, nor do their organizations actively prioritize it (see Fig. 15).
HCI Research
Figure 15:
Talent Mobility Challenges
No strategic approach in place to
identify future talent needs
26%
Lack of prioritization of Talent Mobility
by organizations
25%
Lack of organizational understanding of
what Talent Mobility is
21%
Talent “territorialism” among key
stakeholders
10%
6%
Lack of clearly defined roles and
responsibilities
5%
Little/no focus on developing talent to
meet future needs
4%
Lack of infrastructure to connect
employees with potential opportunities
3%
Organizations do not provide key
stakeholders with necessary tools
0%
5%
10%
15% 20%
25%
30%
Fig. 15 shows the greatest struggles facing Talent Mobility today, as reported by
respondent organizations.
A secondary challenge facing organizations is recognizing which organizational
departments and functions should work more collaboratively to maintain or
establish an effective Talent Mobility practice. In more than half of organizations
(58%), HR Business Partners are primarily responsible for Talent Mobility (see
Fig. 16). However, to ensure Talent Mobility is treated as a holistic process that
is part of the breadth of talent management offerings, cross-functional teams
focused on Recruiting & Hiring, Training & Development, and general HR
policies and processes should play a more substantial role in driving effective
Talent Mobility. While some collaboration is common, maintaining frequent
Figure 16:
Responsibility for
Talent Mobility
Frequently/Nearly Always or Always
Sometimes
Never/Rarely
Recruiting and Hiring
35%
30%
35%
Training and Development
30%
32%
38%
HR Business Partners
0%
58%
25%
24%
50%
75%
18%
100%
Fig. 16 identifies the frequency with which the departments of Recruiting and Hiring, Training
and Development, and HR Business Partners work collaboratively to manage Talent Mobility.
18
communication and corrective action across all necessary business units —
Recruiting & Hiring, Training & Development, and HR Business Partners — is
vital for achieving talent mobilization.
Conclusions & Recommendations
The challenges of today’s workplace — a shortage of skilled labor, weak
leadership pipelines, aging and retiring populations, high turnover among
Millenials, and a desire for flexibility and career growth among younger workers
— are great, but many hinge on providing employees: information and tools
they need to develop their skills; insight into organizational talent needs; and
opportunities to gain new and richer career experiences. One way to address
these challenges and better position an organization for financial success is by
strategically embracing the mobilization of talent. As Wanda Shoer, Director
of Global Mobility Operations at Johnson & Johnson said, “Analyzing talent
mobility is an exciting development that is happening in today’s market. We’re
becoming a smaller, more global world, and the ability to understand and
move our talent is a big part of how we engage with workers and communities
worldwide. This practice is a key part of talent development today, and it
will continue to grow in importance as people and businesses become more
interconnected and globalized.”
As with many innovative practices, the sophistication of Talent Mobility lies along
a continuum that every organization falls on. At one extreme, some businesses
— Non-Mobilizers — have not adopted any of the behaviors related to Talent
Mobility — whether those behaviors are tied to Understanding, Developing,
or Deploying talent. These organizations are virtually blind to the talent and
obilizers
Committed Talent M
Understand
Develop
Deploy
Non-Mobilizers
19
HCI Research
“Talent Mobility and all of
the processes and people
and information it entails
needs to begin the day an
employee walks through the
door. Employing someone
is a big organizational
investment and leaders need
to support that investment
by ensuring new talent is
best aligned with the needs
of the organization. Part
of talent management and
Talent Mobility is actively
thinking about how an
employee’s career path can
benefit the business.”
Margo Armstrong,
opportunities at their fingertips. In the middle of the spectrum are organizations
that recognize how to effectively conduct one or two of the behaviors — Tier I
Talent Mobilizers and Tier II Talent Mobilizers, positioning themselves for success
but not yet reaching their full potential. And on the highest end of the spectrum,
there are Committed Talent Mobilizers — organizations that have fully dedicated
themselves to effective Talent Mobility practices and reap those benefits —
including bottom-line results — of planning for and facilitating talent moves in
and around an organization.
This research has identified the behaviors key to implementing an effective and
holistic model of Talent Mobility:
Understand — Organizations that understand their talent focus on
talent mobility as a priority, prepare managers to assess their talent and
actively communicate with employees information and plans about career
opportunities.
Develop — Organizations that develop their talent do so by providing and
prioritizing opportunities for them to gain experience and increase skills, while
holding managers accountable for developing employees.
Deploy — Organizations that deploy their talent effectively focus on filling open
roles internally and ensuring that employees have the tools they need to move
into new and different positions. These companies also recognize redeployment
and outplacement as critical components of the talent mobility lifecycle.
Every organization must conduct a thorough assessment of its prioritization of
Talent Mobility and performance on these behavioral components so leaders
can recognize where they stand in the process and determine the next steps
they need to take. This research has identified the following areas as those most
commonly in need of attention among organizations today:
• G
reater transparency about internal opportunities, including lateral moves
and advancement.
• Prioritizing and funding the development employees need in order to improve.
• M
ore opportunities for cross-functional work, task/job rotation, and stretch
assignments.
• C
ollaboration among Recruiting & Hiring, Training & Development, and HR
Business Partners.
It’s important to remember that an effective Talent Mobility program does more
than simply track movement within an organization. Rather, it is a strategic
endeavor that can yield significant business results. Deploying workers to where
their skills can be best leveraged not only enhances business productivity, but it
also contributes to higher levels of engagement and a stronger talent pipeline.
Moreover, focusing on the development of in-house talent can help lower
20
recruitment and acquisiton costs and increase the leadership development skills
of managers.
Leaders can use this report to better define and acknowledge what the
components of Talent Mobility are, and focus on improving the behaviors and
organizational culture associated with the three indices of Understand, Develop,
and Deploy. When an organization is able to effectively achieve each of these
three behaviors, they can expect to adopt a more proactive approach to Talent
Mobility, and most importantly, experience increased revenue growth as a result.
In addition to experiencing positive bottom-line results, organizations that
thoughtfully and strategically address Talent Mobility are positioning themselves
for more sustainable performance. The ability to recognize, cultivate, and align
talent most efficiently to an organizations’ needs not only directly results in
increased productivity, but also reinforces the talent pool of any business and
actively contributes to more experienced employees and leaders for the future.
21
HCI Research
Appendix A: About the Research Partners
The Human Capital Institute
The Human Capital Institute (HCI) is a catalyst for innovative new thinking in
talent acquisition, development, deployment and new economy leadership.
Through research and collaboration, our global network of more than 138,000
members develops and promotes creativity, best and next practices, and
actionable solutions in strategic talent management. Executives, practitioners,
and thought leaders representing organizations of all sizes, across public,
charitable and government sectors, utilize HCI communities, education, events
and research to foster talent advantages to ensure organizational change
for competitive results. In tandem with these initiatives, HCI’s Human Capital
Strategist professional certifications and designations set the bar for expertise in
talent strategy, acquisition, development and measurement. www.hci.org
Lee Hecht Harrison
Lee Hecht Harrison (www.lhh.com) is the global talent mobility leader. We connect
people to jobs through innovative career transition services and help individuals
improve performance through career and leadership development. LHH assists
organizations in supporting restructuring efforts, developing leaders at all levels,
engaging and retaining critical talent, and maintaining productivity through change —
helping organizations increase profitability by maximizing their return on investment in
developing people, while assisting individuals to achieve their full potential.
About the Authors
Aubrey K. Wiete, MA is a Senior Research Analyst at the Human Capital Institute
in the Organizational Development and Leadership Practice Area. Previously, she
was a lecturer and research fellow at the University of Kentucky. Most recently, she
has authored reports on how organizational cultures can drive high performance
and what methods of development are most effective for executives leaders
today. Aubrey’s other areas of interest include using robust onboarding programs
to jumpstart employee engagement, and how workplace teams function most
effectively. She earned a bachelor’s degree from Saint Louis University and a
Master’s degree in Organizational Communication from the University of Kentucky.
Aubrey is based in Cincinnati, Ohio where she enjoys shoes, writing, Scrabble,
(occasionally) running, and spending time with her family.
Kristen Leverone is a Senior Vice President and a Global Practice Leader of Talent
Development at Lee Hecht Harrison. She is a business management professional
with over 15 years of experience in employee engagement and change management,
and project management. In her practice lead role, she leads LHH’s strategic client
engagements, develops new products and services, and provides thought leadership in
the areas of employee engagement and change management to the market. Additionally,
she consults with LHH clients on the talent mobility process and develops and implements
solutions to help organizations develop, engage, retain and redeploy their workforce to
drive business results.
22
Appendix B: Respondent Demographics
Gender
36%
Male
64%
Female
Age
3%
5%
18–33 years old
45%
34–50 years old
48%
51–64 years old
65+ years old
Industry
10%
12%
9%
16%
8%
7%
7%
2%
5% 5% 4%
3%
Healthcare
Telecommunications
Professional Services
Computer Software
Manufacturing
Wholesale/Retail
Government
Aerospace and Defense
Financial Markets
Electronics
Chemicals/Utilities/Energy
Life Sciences
Education
Construction
Banking
Automotive
Other
Title/Level of Seniority
2%
5%
31%
Director
3%
4%
Manager
7%
8%
26%
14%
Vice President
Team member
Executive VP/Senior VP
C-Level
Analyst
CEO/President
Other
23
HCI Research
Number of Employees
14%
10%
Less then 100
101–499
21%
500–1,000
1,001–3,000
11%
9%
15%
9%
9%
3,001–5,000
4%
5,001–7,499
7,500–10,000
10,001–19,999
20,000+
Less than $10 million
Revenue
$10–$50 million
3%
14%
$50–$100 million
11%
9%
$100–$500 million
$500–$750 million
10%
7%
$750 million–$1 billion
13%
21%
6%
$1–$10 billion
$10–$50 billion
$50–$100 billion
Functional Area
9%
14%
More than $100 billion
3%
N/A — government/non-profit
3%
6%
14%
Operations
Marketing/Sales
7%
76%
Human Resources
Executive Leadership
Other
Role within HR
Benefits Management
58%
HR Information Systems
51%
Hiring
41%
Recruiting
39%
Employee Relations
35%
Workforce Planning
25%
Training and Development
23%
0%
24
10%
20%
30%
40%
50%
60%
Appendix C: Works Cited
Bersin by Deloitte. (2009, November 18). Talent Mobility: The New Era of Talent
Management. Retrieved May 24, 2013, from www.bersin.com
Brotherton, P. (2010, December). Warning Signs of Turnover Waiting to Happen.
T+D, p. 24.
Bureau of Labor Statistics, U.S. Department of Labor. (2012, September 18).
Retrieved May 24, 2013, from Bureau of Labor Statistics: www.bls.gov
Carnevale, T. (2005, January). The Coming Labor and Skills Shortage. T+D, pp.
37-41.
Lloyd, F. (2012, Summer). Building a High Performance Workforce with a new
Type of Corporate Leadership. Energy Workforce, pp. 5-6.
McKeown, E. (2009, December). Employee Stagnation Could Lead to Migration.
T+D, p. 19.
Morgan, H., & Jardin, D. (2010, Vol. 42, No. 4). HR+OD=Integrated Talent
Management. OD Practitioner, pp. 23-29.
N.A. (2013). Trends and Best Practices in Sourcing and Hiring Talent. Lee Hecht
Harrison White Paper.
Oracle. (2012, June). Talent Mobility: An Oracle White Paper.
Pace, A. (2012, July). The Enduring Talent Trial. T+D, p. 22.
Population Division, Department of Economic & Social Affairs, United Nations.
(2002). World Population Ageing: 1950-2050. New York: United Nations
Publications.
PricewaterhouseCoopers. (2012). Talent Mobility 2020 & Beyond. Retrieved May
24, 2013, from PwC: www.pwc.com
Sladek, C., & Hollander, E. (2009, Second Quarter). Where is Everyone? The Rise
of Workplace Flexibility. Benefits Quarterly, pp. 17-22.
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Set Talent in Motion

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