DC14 9. The why and ROI of new talent (John Slattery)
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The document discusses how to raise the profile of early talent development programs within organizations and ensure their continued value. It suggests integrating early talent, such as graduates and interns, into the company's overall talent strategy by expanding career paths. Tactics are presented for making early talent programs more sustainable, such as linking leadership levels and providing career skills training. Metrics and tools are provided for measuring return on investment of early talent programs to demonstrate their value to senior management.
DC14 9. The why and ROI of new talent (John Slattery)
- 1. Summerbrook Development Early Talent How can we raised its profile, impact and ROI
- 2. Summerbrook Development Agenda Share experiences and key tools used to get Early Talent included on the organisations talent management agenda, and some tools and techniques for ensuring it continues to deliver value to the business.
- 3. Summerbrook Development Summerbrook Development Ltd • John Slattery – Coach, trainer and consultant supporting companies and universities • 20+ years experience in recruiting & developing apprentices, interns and graduates • Most recently Group Head of L&D at United Biscuits
- 4. Summerbrook Development A Few Domestics On Silent Please 50 Minutes 10 for Questions Business Card @Back of Room Speak up Leave address if want copy of slides
- 5. Summerbrook Development What one factor is most likely to influence whether young football players reach the elite/top of their game? Question
- 6. Summerbrook Development Answer • Date of Birth • Cut-off date for youth clubs is December 31 • Players born earlier in year are older (faster & stronger) by the cutoff and more likely to make the team • ‘Early Birthday’ players secure access to better coaching and competition, making them more likely to make the next elite team Born Jan, Feb, Mar Born Oct, Nov, Dec Born Jan, Feb, Mar Born Oct, Nov, Dec Born Jan, Feb, Mar Born Oct, Nov, Dec 50% 17% England 50% 15% Germany 47% 4% Italy
- 7. Summerbrook Development Manchester United – Most Trophies
- 8. Summerbrook Development So………………..Early Talent • If you want to successfully grow talent for the future: – Clear vision, shared by all – especially senior management – Sufficient investment of budget and resource – Sustainable talent management processes – They need to be able to play –
- 9. Summerbrook Development So what is wrong with many company’s Talent Pipelines? “…the pipeline model of succession planning is leaky, rusty and fundamentally broken…..” Corporate Executive Board (2013) “Leaky”: Turnover, lost aspiration, changing preferences “Rusty”: Future misaligned with current ability. Organisations want to replace 1/3 of bench.
- 10. Summerbrook Development • Senior perception – Not business driver, long term proposition, easy to cut, bigger process is broken • Management perception – dips in performance & engagement, increase in leavers, not able to fully satisfy their HiPo’s • HR perception – no measure of value (ROI), limited career paths, low post programme support, limited linking with HiPo Talent Plans, limited dedicated support for post programme talent So what is wrong with many companies Early Talent Pipelines?
- 11. Summerbrook Development What evidence is there? • Chartered Institute of Personnel & Development (2013) – 75% of companies do not perform Talent Management for graduates • Corporate Executive Board (2013): – “…the pipeline model of succession planning is fundamentally broken…..” – “Less than 30% of rising leaders are of sufficient quality…..” – “1/3 of the positions that pipelines are being built for will not exist by the time a leader reaches them” – “25% of leaders believe there are opportunities for career advancement….” Association of Graduate Recruiters (2013) – Under 33% of companies measure ROI on graduate progs. – 56% of companies monitor salary progression Corporate Leadership Council – Successful HiPo Development can lead to a 15.4% advantage in Total Shareholder Value
- 12. Summerbrook Development So what can we do to address this for Early Talent? 1. Raise the profile of Early Talent – Senior Management Attention – Return in Investment and personal involvement 2. Integrate Early Talent into company talent strategy – Expand strategy to include graduates and create career paths 3. Tactics to increase sustainability – Linking levels of leaders and delivering career skills for graduate and managers
- 13. Summerbrook Development 1. Raise the Profile - ROI Options • Return on Graduate hires – Work value added (sales, increased efficiency/quality etc) – Value of accumulated ‘in-company knowledge and experience’ – Future succession plan potential (to leader) – Strong employee value proposition • Cost avoidance – Employees leaver after short stay – Poor recruitment decision – Slow pace of ‘getting up to speed’ – Poor employee value proposition Choose the ones you want to use!
- 14. Summerbrook Development ROI on Graduate to Leader Pipeline (per grad) Promotion No. Salary Salary Saving (10%) Pot. Rec. Fee 20% 1st Yr Salary Sub Total 27,000 1 32,000 3,200 6,400 9,600 2 38,000 3,800 7,600 11,400 3 45,000 4,500 9,000 13,500 4 52,000 5,200 10,400 15,600 5 60,000 6,000 12,000 18,000 6 70,000 7,000 14,000 21,000 7 92,000 9,200 18,400 27,600 8 120,000 12,000 24,000 36,000 £152,700
- 15. Summerbrook Development How to measure ROI of Tangibles? = £152,700 - £37,500 £37,500 X 100% = 307% ROI (£115,200) * Initiative Spend (Estimated recruit cost, 1st Yr Grad Salary, tax, training spend) = £37,500 Calculate an average for a typical year group Career ROI Improvement - Initiative Spend Initiative Spend * X 100%=
- 16. Summerbrook Development How to measure ROI of Intangibles? = £270,000 - £37,500 £37,500 X 100% = 520% ROI (£232,500) * Improvement in sales growth of £27m since they joined the Sales function. Could also be improvements in efficiencies, quality, waste attributes to them being internal promotions. Calculate an average for a typical year group Role ROI 1% Improvement - Initiative Spend Initiative Spend * X 100%=
- 17. Summerbrook Development 2. Integrate Early Talent into Company Talent Strategy Learning & Growth Financial Internal Business Processes Customer • Turnover, EBITDA • Cash Flow • Return on Capital Employed • Financial Results (Monthly, Quarterly) • Outline key activities per function • Key process alignment • Focus on efficiency and customer • Develop new ‘Solutions Strategy’ and align with existing ‘Product Strategic Plan’ • Ensure clarity of product provision • One face to Gillettte across all products and companies • Clear Business Solutions message to all customers • Grow technical capability in new product areas • Embed new competencies and behaviours across EMEA • Grow leadership bench strength in all key HiPo areas including Graduates
- 18. Summerbrook Development 2. Integrate Early Talent into Company Talent Strategy Comp & Benefits Key Metrics Capability Talent Strategy • Maintain turnover at 4%, • Engagement average up 4 points • Overhead budget be maintained • Reduce succession gaps to 5% • Create Academy for Finance • Deliver Sales training to support price increase strategy • Maintain HSE achievement levels • Develop post graduate programme training programme • Develop new process for Expats • Accelerate HiPo dev in Sales • Reduce cost of recruit. To £1.2m • Extend Talent Pipeline to • Benchmark salary spend with peer companies • Find alternative to current health insurance provider • Launch an on-line benefits info tool for all employees • Harmonise European benefits
- 19. Summerbrook Development 2. Integrate Early Talent into Company Talent Strategy Managing Self Managing B. Units Managing Functions Managing Managers Managing Others Managing Enterprise HiPo Population
- 20. Summerbrook Development Managing Self Managing B. Units Managing Functions Managing Managers Managing Others Managing Enterprise Early Talent Graduates Interns Apprentices 2. Integrate Early Talent into Company Talent Strategy HiPo Population
- 21. Summerbrook Development 2. Integrate Early Talent into Company Talent Strategy PTJS AT
- 22. Summerbrook Development 2. Integrate Early Talent into Company Talent Strategy General Mngrs Deborah Green Julian Taylor Paula Priest Kevin Peters Z1 Direct Reports Christopher Wilson John Tierney & Peter Jarvis Colin Smith/ Michelle Cleary External Heidi McCarthy Emergency Cover Pat Binkley ExternalExternal Heidi McCarthy External Ready in 1 year R.Cousins / J.Edwards / B.Maloret Heidi McCarthy Ray Martin Tom Slater Hilary Backwell Ready in 2 years Joe James Barry Bradley C.Wood / P.Bradbury J.Edwards Ray Martin
- 23. Summerbrook Development 2. Integrate Early Talent into Company Talent Strategy General Mngrs Deborah Green Julian Taylor Paula Priest Kevin Peters Z1 Direct Reports Christopher Wilson John Tierney & Peter Jarvis Colin Smith/ Michelle Cleary External Heidi McCarthy Emergency Cover Pat Binkley ExternalExternal Heidi McCarthy External Ready in 1 year R.Cousins / J.Edwards / B.Maloret Heidi McCarthy Ray Martin Tom Slater Hilary Backwell Ready in 2 years Joe James Barry Bradley C.Wood / P.Bradbury J.Edwards Ray Martin
- 24. Summerbrook Development Manufacturing Manufacturing Support Functional Career Routes Production Supervisor Manufacturing Manager Factory Manager Manufacturing Director QA Technologist Manufacturing QA Mngr Projects Secondments EMEA Projects Director Team Manager 2. Integrate Early Talent into Company Talent Strategy
- 25. Summerbrook Development L&D Investment Prioritisation (Are we focussing on the right initiatives?) 30%10% 40%20% Proprietary knowledge and skills focused on promoting the effectiveness of operations and process “Run the business” (Maintenance) “Advance the Strategy” (Growth) Inside UB (Proprietary, Differentiating Knowledge and Skills) Outside UB (Generic Knowledge And Skills) Proprietary knowledge and skills required to enable the achievement of organisational growth targets Generic knowledge and skills required to enable the achievement of organisational growth targets Generic knowledge and skills focused on promoting the effectiveness of operations and process =30% =70% =60% =40%
- 26. Summerbrook Development 5 Tools To Get You Started 30%10% 40%20% Proprietary knowledge and skills focused on promoting the effectiveness of operations and process “Run the business” (Maintenance) “Advance the Strategy” (Growth) Inside UB (Proprietary, Differentiating Knowledge and Skills) Outside UB (Generic Knowledge And Skills) Proprietary knowledge and skills required to enable the achievement of organisational growth targets Generic knowledge and skills required to enable the achievement of organisational growth targets Generic knowledge and skills focused on promoting the effectiveness of operations and process =30% =70% =60% =40% P T J S AT
- 27. Summerbrook Development 3. Tactics to Increase Early Talent Sustainability 1. Linking Levels of leaders i Leader responsible for an employee ● Mentors at critical career junctures ● Coach for specific development needs ● Reflected in leaders performance review ii Leaders attend development events ● Share vision & show commitment iii Graduate projects pitched to senior team
- 28. Summerbrook Development 3. Tactics to Increase Early Talent Sustainability 2 Build Career Skills Manager: ‘Guiding the Development of Others’ Graduate: ‘Taking Charge of Your Development’
- 29. Summerbrook Development Taking Charge of Your Development • Understanding the company career development processes • Understanding your career motivators, values, style, and barriers • The value of feedback • Planning for career conversations with your manager • Creating & monitoring development plans 3. Tactics to Increase Early Talent Sustainability Guiding the Development of Others • Understanding the company career development processes • Career Coaching Key Principles • Managing career discussions • Motivating your employee • Development & carer path planning • Company systems & tools
- 30. Summerbrook Development Manchester United Like them or love them Your Graduates Love them or lose them