Talent Management – Unit-5

Emerging trends in HR

A. Human Resource Audit

The word Audit comes from the Latin verb audit, which means to listen. Listening implies an
attempt to know the state of the affairs as they exist and as they are expected/ promised to exist.
Auditing as a formal process is rooted in this feature of listening. Consequently, it is a diagnostic
tool to gauge not only the current status of things but also the gaps between the current status and
the desired status in the area that is being audited.

Human-Resource Audit is also a systematic formal process, which is designed to examine the
strategies, policies, procedures, documentation, structure, systems and practices with respect to
the organization's human resource management. It systematically and scientifically assesses the
strengths, limitations, and developmental needs of the existing human resources from the larger
point of view of enhancing organizational performance.

Human Resource Audit is a comprehensive method of objective and systematic verification

of current practices, documentation, policies and procedures prevalent in the HR system of
the organization. An effective HR audit helps in identifying the need, for improvement and
guides the organization in maintaining compliance with ever-changing rules and regulations.

The purpose of an HR Audit is to recognize strengths and identify any needs for improvement in
the human resources function.

Human Resource Audit means the systematic verification of job analysis and design,
recruitment and selection, orientation and placement, training and development, performance
appraisal and job evaluation, employee- and executive remuneration, motivation and morale,
participative management, communication, welfare and social security, safety and health,
industrial relations, trade unionism, and disputes and their resolution. HR audit is a vital tool
which helps to assess the effectiveness of HR functions of an organization.

A complete Human Resources Checkup, including administration, employee files, compliance,

handbook, orientation, training, performance management, and termination procedures. The
intended outcomes include minimizing your liability exposure and introduction or enhancement
of human resource best practices.

The team that is responsible for the audit should re resent a cross-section of the organization’s
staff including line staff, middle staff and upper management and those responsible for HR
functions.
Human Resource audit is highly useful for the purpose of following:

 Does the organization regularly forecast the supply of and demand for employees in
various categories?
 Do job analyses exist for all positions in the organization'?
 Are all potential sources of recruitment identified and evaluated'?
 Are measurable selection criteria developed and used while filling up jobs?
 Do effective training and development programs exist?
 Is there a performance evaluation system that helps assess past and potential
performance?
 Is the remuneration program designed to motivate employees?
 Is the plant unionized?
 Does a grievance procedure exist?
 Does the organization have high quality of work life?
 Does the HRM practice contribute to organizational effectiveness?
 Does the management underestimate the capacity of HRM to contribute to organizational
effectiveness?

HR Audit of Talent Management

Internal audit of Talent management is necessary because the organization needs to identify and
proactively address the potential future talent shortfalls keeping in mind following concerns.

 Risk of losing experienced employees in the next three to five years makes workforce and
succession planning critical;
 Delays in filling vacant positions presents a risk to the organization's ability to fulfill its
duties;
 Due to the size of the organization, succession planning is difficult and presents a risk;
 Need to bring structure, discipline and regularity to talent management practices;
 Talent management seen as just an HR program rather than a shared responsibility;
 Need for efficient, practical tools suitable for a small organization; and,
 Need for commitment of employees to Public Safety rather than a specific leader.

Scope of HR Audit Talent Management

 Talent Strategy
 Talent Management Governance and HR Functional Infrastructure
 Talent Metrics
  Workforce Planning
 Recruitment and Staffing Strategies
 Succession Management
 Learning and Development

Approaches to Human Resources Audit

The following approaches are adopted for purpose of evaluation:

1. Comparative approach
2. Outside authority approach
3. Statistical approach
4. Compliance approach
5. Management by objectives (MBO) approach

Comparative approach

In this, the auditors identify Competitor Company as the model. The results of their organization
are compared with that company/industry.

Outside authority approach

In this the auditors use standards set by an outside consultant as benchmark for comparison of
own results.

Statistical approach

In this, Statistical measures are performance is developed considering the company's existing
information.

Compliance approach

In this, auditors review past actions to calculate whether those activities comply with legal
requirements and industry policies and procedures.

Management by objectives (MB0) approach

This approach creates specific goals, against which performance can be measured, to arrive at
final decision about organization's actual performance with the set objectives.

B. Human Resource Information Systems (HRIS)

A Human Resource Information System (HRIS) is a system used to acquire, store, manipulate,
analyze, retrieve, and distribute information related to the company's human resources. From the
manager's perspective, an HRIS can be used to support strategic decision making, to avoid
litigation, to evaluate programs or policies, or to support daily operating concerns.

A computerized HRIS is an information system that makes use of computer and monitors control
and influences the movement of human being from the time they indicate their intention to join
an organization till they separate from it after joining. It consists of the following sub-system:

 Recruitment Information; It includes the placement data bank advertisement module,

general requirement and training requirement data,
 Personnel Information; It includes employee information such as transfer monitoring
and increment and promotion details.
 Manpower Planning Information: It seeks to provide information that could assist
human resource mobilization, career planning, succession planning and input for skill
development.
 Training Information: It provides information for designing course material, arrange for
need base training and cost analysis of training etc.
 Health Information System: This subsystem provides information for maintenance of
health related activities of the employees,
 Appraisal Information; It deals with the performance appraisal and merit rating
information which serves as input for promotion, increment and secession and career
planning etc.
 Payroll System: It consists of information concerning wages, salaries incentives,
allowance, perquisite deduction for provident fund etc. data on compensation pattern of
computer is also included in it.
 Personal Statistics System: it is a bank historic and current data used for various type of
analyst.

Uses of HRIS

Human resource information System refers to the system of gathering, classifying, processing,
recording and dismantling the information required for efficient and effective management of
human resource in an organization. Need for such a system arises due to several factors:

1. Organizations that employ a very large number of people, it becomes necessary to

develop employee database for taking personnel issues.
2. In a geographically dispersed company every office requires timely and accurate
information for manpower management. If information is stored in a multiple location
cost and inaccuracy will increase.
3. Modern day compensation package is complex consisting of many allowance and
deductions etc, A centrally available data can become useful for taking timely decisions.
 4. Organizations have to comply with several laws of the land. A computerized information
system would store and retrieve data quickly and correctly enabling the organization to
comply with statutory requirements.
5. With the help of computerization personnel information system, employer record and file
can be integrated and retrieved for cross-referencing and forecasting. The system should
be oriented towards decision making rather than towards record keeping.
6. Necessary flexibility for adaptation to changes taking place in the environment can be
built into mechanized information system.

HRIS and Talent Management

Talent management has prompted a new industry of software including HRIS, HRIS Systems,
Performance Appraisal Software, and Training Software. In other words, technology can help
implement a talent management solution that is ideal for a company's specific employees.

According to Maslow's hierarchy of needs, employees will continue to strive for "self g
actualization," By providing resources that support your employees, you are encouraging them to
realize their full potential, to attain "self actualization." This helps your business grow and reach
its full potential. Furthermore, organizations with motivated employees typically create a
following among the local work force pool, pulling in new employees that are just as motivated
and loyal as the existing team. Thus, by focusing resources on individual talent and encouraging
employees to reach their full potential, the current work force creates economic growth and spurs
future success.

Organization MUST also have technology to help identify, track, and manage talent. Today,
most solutions are cloud-based, integrating major HRMS Solutions with corporate solutions,
including accounting. While an HRIS system can help with organizing employees and their
"talent. It helps to:

 Review real-time salary information and compare this information across industries for
competitiveness.
 Access cascading goals and provide for complete corporate goal view, ensuring total
integration of company goals.
 Review, at a glance, Members for promotion or other project opportunities
 Measure existing talent against future needs.

Benefits of HRIS

 Employee Data (e.g., identification number, name, contact details, emergency contacts).
 Headcount management (i.e., tracks employee headcount for finance, HR executive
management).
 Job information (job title, job description, job level).
 Compensation data management. (e.g., salary grade and range, related market data).
  For an in-house payroll system: payroll deduction, income tax information.
 For an in-house benefits system: Benefits data (e.g., types of coverage for health, dental
and life insurance).
 Time and attendance (tracks absenteeism, including vacation, sick leaves and other
leaves).
 Basic performance management data (including performance rating, performance
review date[s])
 Employee training

Other benefits of HRIS include following:

 Clear definitions of goal.

 Reduction in the amount and cost of stored human resource data.
 Availability of timely and accurate information about human assets.
 Development of performance standard for the human resource division.
 More meaningful career planning and counseling at all levels.
 Individual development through linkage between performance reward and job training.
 High capability to quickly and effectively solve problems.
 Implementation of training programs based on knowledge of organizational needs.
 Ability to respond to ever changing statutory and other environment.
 Status for the human resource functions due to its capability for strategic planning with
the total organization.
 The HRIS system is an investment to an organization, An HRIS system is more than just
a storage and organizational tool to contain confidential information about your
organization's employees.

The HRIS system needs to be viewed from a financial perspective. For instance, an HR manager
or department usually has to justify their expenditures and if HR's functions are not tracked
properly, you could be losing money. These include:

 Providing benefits for ineligible employees or their dependents.

 Documenting why people leave the organization because the cost of terminations is high,
and if you can track why people leave, then changes can ensue.
 Not properly recording vacation or sick leave taken. Time and attendance creates a loss
of productivity, so having a way to track it to ensure there is not abuse of the system or
employee taking time they don’t have will help to reduce the risk of losing productivity
and ultimately, revenue
 Reduce potential legal to in an employee dispute. Accurate and complete records can help
build your case or diffuse a situation before it even gets in the courts.
 Gradually however progressive companies have started computerized information system in
the area of collective bargaining, employee manual, training, performance appraisal etc. with
sophisticated software, computer based information system can be used in almost all the
functions of human resource management.

HRIS software used these days

1. SAP
2. Spectrum HR
3. Oracle HRMS
4. People soft
5. HR soft

C. Human Resource Accounting

Human Resource Accounting is the process of assigning, budgeting, and reporting the cost of
human resources incurred in an organization, including wages and salaries and training expenses.

Human Resource Accounting is the activity of knowing the cost invested for employees towards
their recruitment, training them, payment of salaries & other benefits paid and in return knowing
their contribution to organization towards its profitability.

"Human Resource Accounting is an attempt to identify and report investments made in human
resources of an organization that are presently not accounted for in conventional accounting
practice. Basically it is an information system that tells the management what changes over time
arc occurring to the human resource in the business."

"Human resource accounting is the measurement of the cost and value of the people for the
organization."

Objectives of HR Accounting

The objective of HRA is not merely the recognition of the value of all resources used by the
organization, but it also includes the management of human resource which will ultimately
enhance the quantity and quality of goods and services. The main objectives of HR Accounting
system are as follows:

1. To furnish cost value information for making proper and effective management decisions
about acquiring, allocating, developing and maintaining human resources in order to
achieve cost effective organizational objectives.
2. To monitor effectively the use of human resources by the management.
3. To have an analysis of the human assets i.e. whether such assets are conserved, depleted
or appreciated.
 4. To aid in the development of management principles and proper decision making for the
future by classifying financial consequences of various practices.
5. In all, it facilitates valuation of human resources recording the valuation in the books of
account and disclosure of the information in the financial practices.
6. It helps the organization in decision making in the following areas: Direct Recruitment vs
promotion, transfer vs retention, retrenchment vs retention, impact on budgetary controls
of human relations and organizational behavior, decision on reallocation of plants closing
down existing units and developing overseas subsidiaries etc.

Advantages of HR Accounting

1. It checks the corporate plan of the organization. The corporate aiming for expansion,
diversification, changes in technological growth etc. has to be worked out with the
availability of human resources for such placements or key positions. If such manpower
is not likely available, HR accounting suggests modification of the entire corporate plan.
2. It offsets uncertainty and changes as it the organization to have the right time person for
the right job at the right time and place.
3. It provides scope for advancement and. development of employees by effective training
and development.
4. It helps individual employee to aspire for promotion and better benefits.
5. It aims to see that the human involvement in the organization is not wasted and brings
high returns to the organization.
6. It helps to take steps to improve employee contribution in the form of increased
productivity.
7. It provides different methods of testing to be used, interview techniques to be adopted in
the selection process based on the level of skill, qualifications and experience of future
human resources.
8. It can foresee the change in value, aptitude and attitude of human resources and
accordingly change the techniques of interpersonal management.
9. It furnishes cost/value information for making management decisions about acquiring,
allocating, developing, and maintaining human resources in order to attain cost- It allows
management personnel to monitor effectively the use of human resources.
10. It provides a sound and effective basis of human asset control, that is, whether the asset is
appreciated, depleted or conserved.
11. It helps in the development of management principles by classifying the financial
consequences of various practices.

HR Accounting and talent management

Human Resource Accounting should encompass talent management that is needed in the
organization. As it is said, every unit of electricity saved is a unit of electricity generated. Today
likewise, every precious human resources saved generated. Today organizations go for the best
talent pool aiming to attract ‘stars’ to become part of the pool. With few years of experience for
such talented persons, organization has indeed invested in them to derive future benefits. With
HR costs looming, every effort has to be made to spot the talent, nurture it, groom it and convert
it into organization’s assets can create value and add value.

HR accounting helps in “assigning, planning, and reporting the expenses and budgeting of talent
brought about in an organization that incorporates compensation, pay rates and preparing costs as
well investment in retention.

D. Business Process Reengineering

Business Process Re-engineering (BPR) aims at cutting down enterprise costs and process
redundancies, but unlike other process management technique, it does so, on a much broader
scale. Business Process Reengineering (BPR) - also known as process innovation and core
redesign - attempts to restructure obliterate unproductive management layers, wipe out
redundancies, and remodel processes differently.

Business Process reengineering is an approach to look beyond the defined boundaries and bring
in desired changes, BPR is about rethinking the entire way the organization is handled, BPR
takes a look at every system and tries to find ways to reengineer them to be faster, more efficient
and smoother.

Before a company decides to adopt BPR for their functional reshuffling, they usually answer the
following questions:

 Who are our customers? What values are we offering them?

 Are the current processes delivering expected values?
 Do the processes need to be redefined or redesigned?
 Are the processes in sync with our long-term mission and goals?
 How would we handle the existing processes if we were a new company?

Business Process Reengineering (BPR) Example

An exemplary case of Business Process Reengineering, BPR rewiring processes happened in an

American telecom company that had several departments to address customer support regarding
technical snags, billing, new connection requests, service termination, etc. Every time a customer
had an issue, they were required to call the respective department to get their complaints
resolved. The company was doling out millions of dollars to ensure customer satisfaction, but
smaller companies with minimal resources were threatening their business.
The telecom giant reviewed the situation and concluded that it needed drastic measures to
simplify things — a one-stop solution for all customer queries. It decided to merge the various
departments into one, let go of employees to minimize multiple handoffs and form a nerve center
of customer support to handle all issues.

A few months later, it set up a customer care center in Atlanta and started training its repair
clerks as 'frontend technical experts' to do the new, comprehensive job. The company equipped
the team with new software that allowed the support team to instantly access the customer
database and handle almost all kind of requests.

Now, if a customer called for billing query, they could also have that erratic dial tome fixed or
have a new service request confirmed without having to call another number. While they were
still on the phone, they could also make use of the push button phone menu to connect directly
with another department to make a query, or input a feedback about the call quality. The
redefined customer-contact process enabled the company to achieve new goals.

 It reorganized the teams and saved cost and cycle time.

 It accelerated the information flow, minimized errors, and prevented networks.
 It improved the quality of service calls and enhanced the customer satisfaction.
 It defined clear ownership of processes within the now-re structured team.
 It allowed the team to evaluate their performance based on the instant feedback.

BPR and Talent Management

Business process reengineering (BPR) and talent management are the strategic decisions that
create impact on organization performance. When an organization is in a position to reorganize
its existing business process, the organization develops its talent pool including the talent
management. These talents benefit for achieving the desired result of reengineering.

BPR through TALENT MANAGFMENT

Business process reengineering is strategic methodological action which enables an organization

to reduce cost and increase maximize desired results which are needed to cope with changes.
Talent management is a strategic decision to fill pivotal position of the organization that can
make the BPR possible. Talent management coupled with BPR improves organizational
performance.

What differentiates successful organization from failure in 21 st Century in Talent

Management?
 1. An intensified War for Global Talent

Multi-national companies are looking at the whole world as a common market and as a result,
the geographic and cultural distinctions of talent are also blurring. Managements have
increasingly realized that to survive and compete in the 21 st century, they need to hire world class
talent. So while maintaining a delicate balance between its human resource budget and the costs
talent hiring top-notch talent, there is a serious contention to attract the best available managerial
talent for the organization.

2. Greater Stress on Upgrading Internal Talent

Re training of existing employees and upgrading their skills to match with the latest tools and
technologies is at an all-time high. Employees are also realizing that unless they upgrade their
learning, there is little chance of surviving in competition against fresh talent that is available at
cheaper cost and is equipped with the latest knowledge. Companies are also willing to retain
their existing employees with proven loyalty and experience, as long as they are willing to rise
up to the new challenges of a global economy.

3. Increased Consciousness as an Equal Opportunity Employer

US law mandates every company to be an equal opportunity employer. However, the aim must
not merely be to abide by the law, but to be enthusiastic and proud about the company’s image as
an “Equal Opportunity Employer”. Therefore, a sensitive handling of human conflicts and
providing fair opportunity to all employees for career growth and recognition within the
organization is a key requirement to run the organizational machinery effectively.

4. Managing the Outsourcing Challenges

There is a need to maintain a very delicate balance between hiring of foreign workers at lower
costs and providing sufficient opportunities for local talent. Outsourcing appears to be a
compulsion of the current times and organizations must find innovative ways to cut down their
costs without discouraging or downsizing local talent. This requires a combined effort in skill
enhancement and achieving higher productivity to justify the preference of local talent over
offshore talent.

Talent management is not an end in itself. It is not about developing employees or creating
succession plans, nor is it about achieving specific turnover rates or any other tactical outcome. It
exists to support the organization's overall objectives, which in business essentially amount to
making money. Making money requires an understanding of the costs as well as the benefits
associated with talent management choices. Today's rapid-fire changes in customers' demands
and competitors' offerings, executive turnover and increased pressure to show a financial return
for every set of business practices make the develop-from-within approach too slow and risky.

A New Way to do Talent Management (Application of supply chain models)

Forecasting product demand is comparable to forecasting talent needs; estimating the cheapest
and fastest ways to manufacture products is the equivalent of cost-effectively developing talent;
outsourcing certain aspects of manufacturing processes is like hiring outside; ensuring timely
delivery relates to planning for succession events.

The issues and challenges in managing an internal talent pipeline—how employees advance
through development jobs and experiences—are remarkably similar to how products move
through a supply chain: reducing bottlenecks that block advancement, speeding up processing
time, improving forecasts to avoid mismatches. The most innovative approaches to managing
talent use four particular principles drawn from operations and supply chain Management.

Operations Management Principles Applied to Talent Management

Principle 1: Make and Buy to Manage Risk

Today, a deep bench of talent has become expensive inventory. What’s more, it’s inventory that
can walk out the door. Ambitious executives don't want to, and don’t have to, sit on the bench.
Worse, studies by the consulting firm Watson, Wyatt show that people who have recently
received training are the most likely, to decamp, as they leave for opportunities to make better
use of those new skills.

It still makes sense to develop talent internally because it is cheaper and less disruptive. But
outside hiring can be faster and more responsive. So an optimal approach would be to use a
combination of the two. The challenge is to figure out how much of each to use.

It is difficult to Predict talent demand With Certainty and instead own up to the fact that our
forecasts' especially the long-range ones, will almost never be perfect. With the error rate on a
one-year forecast of demand for an individual product hovering around 33%, and with nonstop
organizational restructurings and changes in corporate strategy, the idea that we can accurately
predict talent demand for an entire company several years out is a myth. Assessing the trade-offs
between making and buying include an estimation of the following:

 How long will you need the talent? The longer the talent is needed* the easier it is to
make investments in internal development pay off.
 How accurate is your forecast of the length of time you will need the talent? The less
certainty about the forecast, the greater the risk and cost of internal development—and
the greater the appeal of outside hires.
 Is there a hierarchy of skills and jobs that can make it possible for candidates who do not
have the requisite competencies to learn them on the job, without resorting to specialized
development roles or other costly investments? This is particularly likely in functional
areas. The more it is so, the easier it will be to develop talent internally.
 How important is it to maintain the organization’s current culture? Especially at the
senior level, outside hires introduce different norms and values, changing the culture. If it
 is important to change the culture, then outside hiring will do that, though sometimes in
unpredictable ways.

The answers to these questions may very well be different for different functional areas and jobs
within the same company. For instance, lower level jobs may be easily and cheaply by outsiders
because the required competencies are readily available, making the cost of undershooting
demand relatively modest. For more highly skilled jobs, the costs of undershooting are much
higher—requiring firm to pay for an outside search, a market premium, and perhaps also the
costs related to integrating the new hires and absorbing associated risks, such as misfits.

Principle 2: Adapt to the Uncertainty in Talent Demand

if you buy all of you buy all of your components in bulk and store them away in the warehouse,
you are probably buying enough material to produce years product and therefore have to
forecast demand years in advance. But if you bring in small batches of companies more often,
you don’t have to predict demand so far out. The same principle can be applied to shortening the
time horizon of talent forecasts in some interesting, and surprisingly simple ways.

Consider the problem of bringing a new class of candidates into an organization. At companies
that hire directly out of college, the entire pool of candidates comes in all at once, typically in
June. Let’s assume they go through an orientation, spend some time in training classes, and then
move into developmental roles. If the new cohort has 100 people, then the organization has to
find 100 developmental roles all at once, which can be a challenge for a company under pressure,
say, to cut costs or restructure.

But in fact many college graduates don't want to go directly to work after graduation. A different
way to take advantage of shorter, more responsive forecasts would be to break up a long training
program into discrete parts, each with its own forecast. Another risk reduction strategy that a
talent manager can borrow from supply chain managers is an application of the principle of
portfolios. In finance, the problem with holding only one asset is that its value can fluctuate a
great deal, and one's wealth varies a lot as a result, so investment advisers remind us to hold
several stocks in the same portfolio. Similarly, in supply chain management it can be risky to
rely on just one supplier.

Principle 3: Improve the Return on Investment in Developing Employees

Perhaps the most novel approach to this challenge is to get employees to share in the costs. Since
they can cash in on their experience on the open market, employees are the main beneficiaries of
their development, so it's reasonable to ask them to contribute. In the United States, legislation
prevents hourly workers from having to share in the costs of any training required for their
current job. There are no restrictions, however, even for hourly workers, on contributing to the
costs of developmental experiences that help prepare employees for future roles.
People might share the costs by taking on learning projects voluntarily, which means doing them
in addition to their normal work. Assuming that the candidates are more or less contributing their
usual amount to their regular job and their pay hasn't increased, they are essentially doing these
development projects for free, no small investment on their part. Pittsburgh-based PNC Financial
Services is one of several companies that now offer promising employees the opportunity to
volunteer for projects done with leadership team, sometimes restricting them to ones outside
their current functional area. They' get access to company leaders, a broadening experience, and
good Professional contacts, all of which will surely help them later. But they pay for it, with their
valuable time.

Principle 4: Preserve the Investment by Balancing Employee-Employer Interests

Today, of course, employees can pick up and leave if they don't get the jobs they want inside and
the most talented among them have the most freedom to do so. In an effort to improve retention,
most companies- 80% in a recent survey by applicant-tracking company.

Taleo-have moved away from the chess-master to internal job boards that make it easy for
employees to apply for openings and so change jobs within the organization. Dow Chemical, for
example, cut its turnover rate in half when it moved its vacancies to such internal boards.

These arrangements have efficiently turned the problem of career management over to
employees. As a result, employers have much less control over their internal talent. Employees’
choices may not align with the interests of the employer, and internal conflicts are increasing
because half of the employers in the US no longer require that employees seek permission from
their supervisors to move to new positions. So it has become imperative for companies to find
more effective ways to preserve their management development investment. The key is to
negotiate solutions that balance the interests of all parties.

F. Contemporary Development

1. Digital HR arrives, changing the way HR organizations design and deliver employee
solutions. Instead of allowing digital processes such as online learning and communications to
overwhelm employees, HR and learning and development organizations will focus on designing
digital applications to improve the way employees are served and supported.

2. The stampede to replace dated HR systems will accelerate. As HR organizations strive to

build true “systems of engagement" (versus systems of record), ease of use, integrated data and
analytics will drive a massive transformational shift — away from traditional licensed HR
software to a new breed of integrated HR and talent tools in the cloud.
3. New models of talent management breed a new generation of talent management
systems. For example, the redesign of performance management to an often rating-less model is
driving the need for talent management software built around feedback-centric systems.

Similarly, aging applicant tracking systems used in recruiting are being replaced by new
integrated recruitment platforms that include smart sourcing, candidate relationship management,
interview management, applicant tracking and smart analytics.

4-The rush to replace and re-engineer performance management will accelerate globally.
Many organizations around the world are moving away from top-down annual performance
processes. Now is the time to test pilot more continuous, developmental and empowering
performance management and feedback processes to get the details right and aligned with an
organization's culture.

5-Engagement, retention, and culture will remain top priorities as new feedback tools come
to market. As the competition for talent remains fierce, the topics of culture and engagement
will remain high on the list of concerns. New tools, techniques and analytics methods to
encourage and collect employee feedback and help leaders understand where culture and
management should change.

6-Global leadership development, coupled with career talent mobility, will take on a fresh
new focus. Mentoring and coaching will grow rapidly. Research shows that coaching and
mentoring are the most valuable talent practices to develop in an organization. These activities
should be built into an organization’s culture, rewarded and include the use of technology tools
to bring in external coaches.

7-The Revolution in Corporate learning involves education will continue as a new model
evolves. The most effective learning involves education (formal training), experiences
(developmental assignments and Projects), environment (a culture and work environment that
facilitates learning), and exposure (connections and relationships with great people).

8-Diversity and inclusion will move beyond compliance and become a strategic part of
business and talent management. Organizations that align diversity and Inclusion practices to
business objectives are more likely to perform well on financial outcomes.

Benchmarking existing diversity and inclusion programs against the key areas including age,
culture, gender, nationality, ethnicity/race, and mental physical status are good steps to prepare
with.

9. People analytics likely will evolve to become a mainstream program in the HR and
function. Using new data streams coming from mobile, engagement and feedback applications
and network analysis, organizations are building valuable database about what people are doing,
their history, experiences at work and career progress. Increasingly this data likely will be used
to identify specific solutions to business challenges and to drive business results.

10- The HR profession leaps forward as a new breed of ER leaders emerges. Companies are
investing heavily in innovation and analytics, organizations are sharing creative solutions more
openly and HR’s alignment with business is improving dramatically.

G. Cultural Development

Companies are struggling with their culture because of a variety of factors. First, millennial now
make up the largest part of the workforce, and they demand flexibility, mobility, and accelerated
development like never before. Second, every company’s employment brand is now “on the
internet”, so if you have weak management or a poor working environment, people know about
it. Third, companies have not kept up with their leadership development and performance
management practices — so often management itself is not driving the right behaviors to make
people want to stay.

Cultural Development Activities (For Innovation and Talent Management)

Attract and
Recruit

Succession
Onboard
and
and Train
Transition
Developmen
t Culture

Motivate Retain and

and Develop
Challenge
A Culture of Career Development

Key characteristics of a culture of career development

1. It has structure and accountability

A career development culture has a defined talent management framework designed to facilitate
an individual’s career growth. It is not just a loose collection of resources. A career culture
provides each employee with a structured way to align his or her career goals to current and
future business needs, to the competencies valued by the organization, and to available
opportunities. This requires:
• Clear career paths for advancement, with the ability to move across the hierarchy
horizontally as well as upward to achieve success

• Growth opportunities for specialists who want to advance in their field but not
necessarily to leadership positions

• Leveraging of talent assessment processes to identify existing workforce skills and help
individuals focus their career development.

• Processes to create connections between individuals' career aspirations and specific

business needs.

• Leadership accountability in working with team members to achieve their career

aspirations.

2. It creates win-win opportunities

The second component of a culture geared career development is a focus on creating career
projects with win/win opportunities for the organization and the individual. Career projects have
specific objectives and must be completed within a given time horizon. The skills acquired in the
project should be well-aligned to the needs of the organization while also enabling the individual
to advance towards their long-term career goals.

HR professionals and leaders need to learn how to identify those intersections where business
objectives meet individual career aspirations in order to create win/win opportunities for growth.
Given an, opportunity to take on more of these types of career projects, Frank is more likely to
be engaged in his work and his loyalty to the organization will increase.

3. It understands that talent doesn't belong to a department or to an organization

To accomplish win-win projects growth, a couple of pieces need to be in place. The employee
needs to have a fairly clear Sense of the direction employee wants to take future career. Plus, the
relationship between manager and employee needs to trust enough that the employee is
comfortable revealing his aspirations, even if they lead outside the company. In a seeming
paradox, to keep a valued employee longer, manager may need to talk with employee about
where he sees herself working next.

4. It goes bold and allows employees to fail

In a developmental culture, employees are given assignments that test their strengths and skills.
They are allowed to fail and to learn from that experience without retribution. This is particularly
critical for high potential talent who need stretch assignments to drive their leaning. if the
organization wants to be agile, then employees need to take on challenges and learn to adapt
quickly. Cycling people through different functions and roles at a fairly rapid pace and exposing
them to a variety of challenges will accelerate their growth and flexibility. This approach
involves risk and some leaders may fail, hut the hallmark of an agile organization is to make
quick adjustments and address the challenge in a new way. One of the engines of a career
development culture is the "career conversation." This ongoing dialogue between manager and
direct report is characterized by an open exchange of ideas about One of the engines of a career
develop the employee’s career aspirations and creating win-win developmental scenarios for the
individual and the organization.

 A development culture is focused on an international talent management strategy aligned

with organizational mission and business objectives.
 A development culture is driven by leaders who serve as role models for employees,
prioritize talent management practices and reward those who develop others.