BECOMING A STRATEGIC PARTNER TO SENIOR MANAGEMENT · 2017-07-11 · SENIOR LEADERS THINK HR TEAMS...

BECOMING A STRATEGIC PARTNERTO SENIOR MANAGEMENT

UNIFIED TALENT MANAGEMENT

Senior Leaders Think HR Teams Are “Just Getting By”................................................................................................................pg 3

Taking the Lead on Succession Planning.........................................................................................................................................pg 6

How Can HR Get in Front of Succession?........................................................................................................................................pg 7

Making Compensation Performance-Based and Transparent...................................................................................................pg 9

How Can HR Teams Take the Understanding of Compensation Beyond the Dollar?.......................................................pg 11

Prescriptive Analytics.............................................................................................................................................................................pg 13

How Can HR Teams Deliver Better Information to Their Senior Leaders?...........................................................................pg 15

Becoming a True Strategic Partner Requires True Talent Management Tools....................................................................pg 17

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BECOMING A STRATEGIC PARTNER TO SENIOR MANAGEMENT


SENIOR LEADERS THINK HR TEAMS ARE “JUST GETTING BY”Today’s senior executives don’t hold HR in very high esteem: according to Deloitte, almost half of senior leaders

(42%) thought their HR teams were “underperforming or just getting by”; only 27% rated HR as excellent or good.”1

For government HR teams committed to their agency’s mission, this is demoralizing news. Amid competition from

the private sector for the brightest talent, Baby Boomer retirements, the demands of Millennials, and even rapidly

changing technology, HR teams have their hands full without the possibility of dissatisfied senior leaders.

Yet it is precisely these challenges that are a�ecting HR’s ability to do its job and do it well. And all of these

challenges are far beyond any HR manager’s control. The Baby Boomer exodus isn’t slowing any time soon,

Millennials will continue to change and challenge the workplace, and the economy—and how Congress will

respond—is anyone’s guess.

There is one key factor within HR’s control, however. Employee engagement. Improving engagement can help

government HR teams ensure their agencies can transcend poor economies, attrition, and skill gaps by creating a

rich employee experience, one that powerfully influences retention, performance, loyalty, motivation, and productivity.

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Gallup estimates that the “lost productivity of activelydisengaged employees costs the US economy

annually.”3

“”

Engagement isn’t small potatoes when it comes to maximizing limited budgets either: for an organization of

10,000 employees, transforming low engagement into high engagement can “have an impact of over $42

million.”2 Conversely, Gallup estimates that the “lost productivity of actively disengaged employees costs the US

economy $370 billion annually.”3 More critically for government agencies, as demand for services increases,

keeping great talent engaged will be pivotal in agencies’ ability to meet that demand.

Making employee engagement a priority is how HR teams can prove their worth as strategic partners with

senior leadership. Working with directors and other leaders to improve engagement—and along the way

delivering a more consistent, comprehensive picture of the organization’s talent—lets HR teams play a pivotal

role in the organization’s sustainability. Instead of being viewed as simply the department that takes care of

paperwork and exit interviews, HR teams can be instrumental in helping leadership visualize a successful future

for the organization—and creating the workforce that will make that success a reality.

$370 BILLION



WHAT ARE THE TOP THREE KEYS TO HELPING HR DEPARTMENTS BECOME SENIOR LEADERSHIP’S STRATEGIC PARTNER?

Making compensation performance-based

and transparent.

Delivering powerful analytics,

not just data.

Taking the lead on succession planning.


“

”

In a survey conducted by the International Public Management

Association for Human Resources, only

of public sector respondents had succession plans

in place.4

27%

TAKING THE LEAD ON SUCCESSION PLANNINGSenior leaders are concerned about succession planning—and for good reason.

Expected and unexpected shortages of critical talent a�ect all organizations. Yet talent

shortages are even more devastating for government organizations: while talent gaps

may cause the private sectors’ profitability to decline, shortages in government can

result in the slowdown or even stoppage of delivery of crucial services.

Yet succession planning still isn’t being done in a consistent, measured way. In a

survey conducted by the International Public Management Association for Human

Resources, only 27% of public sector respondents had succession plans in place.

The stumbling block? Forty-one percent said there was “never enough time” and

46% thought management was more concerned with “day-to-day business.”4

The additional challenge? While private sector organizations are not much ahead of

public sector organizations in succession planning rates, the private sector also

doesn’t have the added challenge of working within established merit and civil

service systems. Government agencies must contend with both hired and elected

positions and make decisions in full view of the public.

Building succession plans is crucial to engaging high-performing employees and

the employees they lead. Frequent changes in leadership, coupled with political

and policy fluctuations —bring uncertainty to work environments - and are

detrimental to engagement and productivity at all levels of work.

2


HR can lead the charge in ensuring the organization

values and prioritizes learning

and ensures leadership

candidates are developed over time.

“

”

HOW CAN HR GET IN FRONT OF SUCCESSION?1. Become expert talent identifiers at the beginning of the

employee lifecycle.

Senior leaders are counting on their HR teams to identify high potential,

high-performance employees. Which means HR must have an e�ective way to

identify talent from the beginning of the employee lifecycle (recruiting and

onboarding), not the middle (performance).

True succession planning begins with sourcing, as organizations identify current and

future talent needs and target hiring to meet long-term organizational goals. At its

core, this means being proactive about recruiting talent. Too often, public sector

agencies wait for candidates to find them. Instead, consider ways to filling your

talent pipeline with high-quality candidates. Gallup experts call this “stacking the

deck,” stating that leadership identification becomes far easier over time if agencies

commit to first “load[ing] the company with talent.5

2. Champion a formal development process.

The adage “great leaders are made, not born” has never been more apt. The world

of work, the economy, and technology move at lightspeed, and even the most

talented succession candidate needs training. Government HR teams can lead the

charge in ensuring the organization values and prioritizes learning and ensures

leadership candidates are developed over time.

3


HOW CAN HR GET IN FRONT OF SUCCESSION?1. Become expert talent identifiers at the beginning of the

employee lifecycle.

Senior leaders are counting on their HR teams to identify high potential,

high-performance employees. Which means HR must have an e�ective way to

identify talent from the beginning of the employee lifecycle (recruiting and

onboarding), not the middle (performance).

True succession planning begins with sourcing, as organizations identify current and

future talent needs and target hiring to meet long-term organizational goals. At its

core, this means being proactive about recruiting talent. Too often, public sector

agencies wait for candidates to find them. Instead, consider ways to filling your

talent pipeline with high-quality candidates. Gallup experts call this “stacking the

deck,” stating that leadership identification becomes far easier over time if agencies

commit to first “load[ing] the company with talent.5

2. Champion a formal development process.

The adage “great leaders are made, not born” has never been more apt. The world

of work, the economy, and technology move at lightspeed, and even the most

talented succession candidate needs training. Government HR teams can lead the

charge in ensuring the organization values and prioritizes learning and ensures

leadership candidates are developed over time.

True succession planning begins with sourcing, as organizations identify current and future talent needs and target hiring to meet long-term organizational goals.

“”

As an adjunct, putting formal learning in place can also help agencies attract

better talent in the first place and engage the ones they have. Employees value

growth opportunities: in the 2012 Employee Job Satisfaction and Engagement

study, 63% of employees thought the ability to use their skills and abilities fully

was most important to job satisfaction, and 36% rated an organization’s

commitment to professional development as very important to job satisfaction.6


MAKING COMPENSATION PERFORMANCE-BASED AND TRANSPARENTSenior leaders don’t always know why employees aren’t engaged—or why they leave. It’s

easy to blame attrition on dissatisfaction with pay: 89% of organizations think employees

jump ship for more money. Yet in reality, only 12% of workers leave for a bigger paycheck.7

Compensation matters—but not in the way everybody thinks. When it comes to pay

structures, transparency and fairness are just as important to employees as dollar

amounts. Employees care that their pay, in comparison to others, is both equitable and

competitive. According to research by Towers Watson, levels of employee engagement

are directly a�ected by perception of pay fairness: employees who think they are being

paid fairly are “4.5 times as likely to be engaged as those who don’t.”8 Yet this can be

even more challenging to manage in public sector work environments, where employees

have certain job protections, and it can be harder to weed out underperformers.

While some agencies have had success implementing pay-for-performance systems,

there’s still significant push back. Cries of favoritism and a lack of transparency

preceded the termination of the pay-for-performance program at the Department of

Defense. The Department of Veterans A�airs also faced allegations of number

manipulation by employees to ensure bonuses when they attempted a similar

compensation program.9

4 “

”

89% of organizations think

employees jump ship for more money.

Yet in reality,

of workers leave for a bigger paycheck.7

12%only


According to the US Office of Personnel Management, alternative work schedules improved employee satisfaction by 89%;

other non-monetary measures also increased satisfaction significantly, by 67%.11

“”

What then can government do in the meantime, if a true

pay-for-performance system isn’t yet an option?

Research by the Human Capital Management Government (HCMG) organization shows

63% of government organizations already use non-monetary recognition to increase

engagement.10 This includes awards, verbal and written achievement, work-life

programs, and alternative work schedules. According to the US O�ce of Personnel

Management, alternative work schedules improved employee satisfaction by 89%;

other non-monetary measures also increased satisfaction significantly, by 67%.11

When employees understand what is expected of them

and how their achievement

ties to their compensation—and that the same system

is employed for all workers—they’re

more likely to be engaged.

“

”

HOW CAN HR TEAMS TAKE THE UNDERSTANDING OF COMPENSATION BEYOND THE DOLLAR?1. Unify compensation with performance through technology.

While agencies may have little flexibility in financial compensation, they can begin to

implement significant non-monetary compensation. Yet this still requires more adeptly

identifying those who are going above and beyond and employing true discretionary e�ort.

For this reason, agencies need to transcend the traditional performance review process

and stop relying on discrete systems to track employees. Technology that unifies both

performance management with compensation management can help HR and senior

leaders make data-driven decisions—instead of guesswork—about whom to reward.

2. Prioritize transparency.

For government agencies, required to follow a general schedule and generally make

compensation levels public, transparency of pay isn’t the issue. But transparency of e�ort

is. Employees don’t always know what di�erentiates high performance from average

performance. When non-monetary compensation tools are used, in absence of a

pay-for-performance system, HR must be clear, open, and specific about how employees

can achieve desired levels. This may require implementing a more flexible, unified talent

management system that unifies performance, learning, and compensation.

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HOW CAN HR TEAMS TAKE THE UNDERSTANDING OF COMPENSATION BEYOND THE DOLLAR?1. Unify compensation with performance through technology.

While agencies may have little flexibility in financial compensation, they can begin to

implement significant non-monetary compensation. Yet this still requires more adeptly

identifying those who are going above and beyond and employing true discretionary e�ort.

For this reason, agencies need to transcend the traditional performance review process

and stop relying on discrete systems to track employees. Technology that unifies both

performance management with compensation management can help HR and senior

leaders make data-driven decisions—instead of guesswork—about whom to reward.

2. Prioritize transparency.

For government agencies, required to follow a general schedule and generally make

compensation levels public, transparency of pay isn’t the issue. But transparency of e�ort

is. Employees don’t always know what di�erentiates high performance from average

performance. When non-monetary compensation tools are used, in absence of a

pay-for-performance system, HR must be clear, open, and specific about how employees

can achieve desired levels. This may require implementing a more flexible, unified talent

management system that unifies performance, learning, and compensation.

3. Give employees tools to improve performance and become

eligible for better compensation.

Performance and compensation aren’t standalone phases of the employee lifecycle.

Mediocre employees must be given the opportunity to improve via learning and

development opportunities. While compensation can improving transparency of

compensation and performance can improve engagement, providing ongoing training

boosts does triple duty: it boost individual engagement, improves performance, and

creates insight into the commitment levels of leadership candidates.

According to studies by Deloitte,

surveyed said they

had “predictive talent analytics” in

place, and only 14% had any analytics

program in place.14

“

”

4%

PRESCRIPTIVE ANALYTICSStudies show that leadership has a much more optimistic outlook on engagement

levels than other employees. Among senior leaders, more than 20% thought their

employees were more engaged when compared to other companies; only 7% of

respondents outside senior leadership positions thought the same.12

But leaders aren’t just missing the big picture on engagement. They don’t always

anticipate—or have access to clear analytics that show—the possible return on

investing in their human capital. They may know that “happier” workers are more

e�ective, but they often think of engagement—and unified talent management for

that matter—as a “nice to have,” instead of a critical factor in ultimately increasing

productivity, reducing turnover, and improving performance.

To increase investment in engagement programs, HR teams must have the

capability to demonstrate results to senior leadership. This means establishing

metrics to measure the value of the talent management process. Yet very few

organizations do so. Research by Hewitt shows that less than 10% of

organizations surveyed “measure the e�ectiveness of talent management

programs, track the quality of talent, or use specific quantitative frameworks to

align human capital investments with their business strategy.”13 According to

studies by Deloitte, only 4% surveyed said they had “predictive talent analytics” in

place, and only 14% had any program in place.14

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It’s not enough to merely measure and present data. According Adelaide O’Brien, research director at IDC Government Insights,

“The data management and analytics challenges of the intelligent economy are likely to overwhelm government organizations

that are unprepared.”15 The key to HR’s playing a more strategic role in the agency lies in being able to interpret and present

data in an accessible form.

To do so, HR leaders must have access to a truly unified talent management system that delivers insight into every phase of the

employee lifecycle. It cannot be understated: HR teams still relying on discrete talent management processes—multiple

systems tracking recruiting, learning, performance, etc.—can’t deliver the big picture of talent to senior leadership. Driving smart,

long-term decisions about talent requires access to more sophisticated analytics to grasp the reality of their current talent

landscape and subsequently make the kind of talent decisions, from hire to retire, that maximize sustainability and profitability.

Corporations are in the business of making a profit; government organizations are in the business of delivering on crucial

services to communities, states, and the nation. It can be argued thus that tracking and using talent management analytics are

even more crucial for agencies, who must deliver on missions, not merely the bottom line.

According Adelaide O’Brien, research director at IDC Government Insights, “The data management

and analytics challenges of the intelligent economy are likely to overwhelm government

organizations that are unprepared.15

“”

HOW CAN HR TEAMS DELIVER BETTER INFORMATION TO THEIR SENIOR LEADERS?1. Take analytics beyond absenteeism and turnover rate.

True talent management analytics encompass more than attrition rates. Driving better decisions means giving

leaders prescriptive data, not standalone facts. Prescriptive data is the result of all the facets of talent

management, the unification of recruiting, learning, performance, compensation, and succession information into

comprehensive analyses.

2. Ensure the veracity of data.

Consulting firm DDI discusses the three “Vs” of Big Data—velocity, variety, and volume—and recommends adding

“veracity.” Data is “low veracity” when it is either data that isn’t “logically associated with talent behaviors” or data

that “requires additional cleaning steps before they can be used.”16

DDI recommends organizations create a data structure that “parallel[s] the employee lifecycle to ensure analytics

are prescriptive in nature.”17

3. Deliver analytics in an engaging, accessible format.

Keep in mind there’s a big di�erence between data and analytics. To become e�ective strategic partners in

their agencies, HR teams must learn how to position information for senior leaders, namely providing decision

makers with not just numbers but analyses that show the big picture of the workforce.

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BECOMING A TRUE STRATEGIC PARTNER REQUIRES TRUE TALENT MANAGEMENT TOOLSSenior government leaders too often view HR teams as operational, not strategic, partners. Yet HR teams can

reestablish their strategic worth by playing a key role in succession planning with formal identification and

development strategies; taking the lead in transparent compensation planning; and delivering true, prescriptive

talent management data that transcend traditional HR metrics.

However, for HR teams to function e�ectively as the crucial link between talent and leaders, they must have

access to true talent management tools. For too long, HR teams have been held back by ine�cient talent

management processes: spreadsheet-based reviews, clumsy legacy ERP systems, separate recruiting and

applicant tracking applications, all of which prevent HR teams from gaining—and sharing—the big picture view of

talent so crucial to government organizations’ ability to deliver on their critical missions.

Becoming a strategic partner to senior leadership requires instead a truly unified talent management (UTM)

strategy, designed to deliver the full story of an agency’s human capital. UTM provides a seamless talent

management experience, connecting every phase of the employee lifecycle on a single platform, with one

login—and access to one customer support team. UTM empowers HR leaders to help senior leaders plan for the

future with powerful, unified recruiting, onboarding, learning, performance, compensation, and succession tools.

8



BECOMING A TRUE STRATEGIC PARTNER REQUIRES TRUE TALENT MANAGEMENT TOOLSSenior government leaders too often view HR teams as operational, not strategic, partners. Yet HR teams can

reestablish their strategic worth by playing a key role in succession planning with formal identification and

development strategies; taking the lead in transparent compensation planning; and delivering true, prescriptive

talent management data that transcend traditional HR metrics.

However, for HR teams to function e�ectively as the crucial link between talent and leaders, they must have

access to true talent management tools. For too long, HR teams have been held back by ine�cient talent

management processes: spreadsheet-based reviews, clumsy legacy ERP systems, separate recruiting and

applicant tracking applications, all of which prevent HR teams from gaining—and sharing—the big picture view of

talent so crucial to government organizations’ ability to deliver on their critical missions.

Becoming a strategic partner to senior leadership requires instead a truly unified talent management (UTM)

strategy, designed to deliver the full story of an agency’s human capital. UTM provides a seamless talent

management experience, connecting every phase of the employee lifecycle on a single platform, with one

login—and access to one customer support team. UTM empowers HR leaders to help senior leaders plan for the

future with powerful, unified recruiting, onboarding, learning, performance, compensation, and succession tools.

Powerful talent management requires powerful talent management tools.“ ”

Used by more than 2,100 organizations worldwide, Cornerstone OnDemand is the only truly unified

system designed to enable comprehensive talent management, from one platform, with one login.

As a result, agencies can place more focus on engaging every employee while spending less time

managing multiple systems. Cornerstone helps organizations improve productivity and profitability

by delivering key insight into the entire employee lifecycle.

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Ready to learn more about how to get started building your unified talent management strategy and how it can benefit your organization?

http://www.cornerstoneondemand.com/lets-talk


1 Cathy Benko, Udo Bohdal-Spiegelho, Jason Geller, Hugo Walkinshaw. “The Reskilled HR Team.” Deloitte University Press. Deloitte. March 7, 2014. Accessed on October 27,

2014, at http://dupress.com/articles/hc-trends-2014-reskilled-HR-team/.

2 Richard S. Wellins, Paul Bernthal, Mark Phelps. “Employee Engagement: The Key to Realizing Competitive Advantage.” DDI. Page 5. Accessed on October 27, 2014, at

http://www.ddiworld.com/DDI/media/monographs/employeeengagement_mg_ddi.pdf?ext=.pdf

3 “Social Knows: Employee Engagement Statistics (August 2011 Edition).” The Social Workplace. August 8, 2011. Accessed on October 27, 2014, at http://www.thesocialwork-

place.com/2011/08/social-knows-employee-engagement-statistics-august-2011-edition/.

4 “2014 Benchmarking Report: Talent Management.” International Public Management Association for Human Resources. Page 1. Accessed on April 28, 2015, at http://ip-

ma-hr.org/files/surveys/2014%20Talent%20Management%20Benchmark%20Survey-Executive%20Summary.pdf.

5 “Your Succession Plan Is a Bust.” Gallup Business Journal. June 26, 2012. Accessed on April 23, 2015, at http://www.gallup.com/businessjournal/154856/succes-

sion-plan-bust.aspx

6 “2012 Employee Job Satisfaction and Engagement: How Employees Are Dealing with Uncertainty.” Society for Human Resource Management (SHRM). Page 7. Accessed on

September 27, 2014, at http://www.shrm.org/legalissues/stateandlocalresources/state-

andlocalstatutesandregulations/documents/12-0537%202012_jobsatisfaction_fnl_online.pdf.

7 Leigh Branham. “Seven Reasons Executives Leave.” ASAE. The Center for Association Leadership. Accessed on October 28, 2014, at http://www.asaecenter.org/Re-

sources/EUArticle.cfm?ItemNumber=11514.

8 “Using Compensation as a Springboard to Drive Employee Engagement.” Accessed on October 25, 2014, at http://www.worldatwork.org/adimComment?id=52476.

9 Wayne Coleman. “Pay for Performance – The Best Possible Solution?” FedSmith.com September 3, 2014. Accessed on April 26, 2015, at http://www.fed-

smith.com/2014/09/03/pay-for-performance-the-best-possible-solution/

10 “Building a Culture of Excellence and Engagement: The 2015 Human Capital Management Report.” Page 10. Accessed on April 25, 2015, at http://www.cornerstoneonde-

mand.com/sites/default/files/whitepaper/csod-wp-HCMGCornerstoneBench-032015.pdf.

11 “Building a Culture of Excellence and Engagement: The 2015 Human Capital Management Report.” Page 10. Accessed on April 25, 2015, at http://www.cornerstoneonde-

mand.com/sites/default/files/whitepaper/csod-wp-HCMGCornerstoneBench-032015.pdf.

12 “Re-engaging with Engagement: Views from the boardroom on employee engagement.” Economist Intelligence Unit. The Economist. Page 2. Accessed on October 26, 2014,

at http://www.economistinsights.com/sites/default/files/LON%20-%20PL%20-%20Hay%20report_WEB.pdf.

13 “The State of Talent Management: Today’s Challenges, Tomorrow’s Opportunities.” Hewitt’s Human Capital consulting. Hewitt. October 2008. Page 3. Accessed on October

27, 2014, at http://www.ikgundemi.com/uploads/6/7/8/0/6780997/hcilibrarypaper_79300.pdf. 14 “Talent Analytics in Practice: Move from Talking to Delivering on Big Data.”

Deloitte University Press. Deloitte. Accessed on October 26, 2014, at http://www2.deloitte.com/global/en/pages/human-capital/articles/talent-analytics-in-practice.html.

15 Adelaide O’Brien. “Business Strategy: The Increasing Role of Business Analytics in Preventing Improper Government Payments.” IDC. Government. May 2012. Accessed on

April 25, 2015, at http://www.idc.com/getdoc.jsp?containerId=GI234588.

16 Evan Sinar, Jill George. “Six (Avoidable) Blind Spots That Cripple Talent Management Analytics Initiatives.” Point of View. Development Dimensions International, Inc. 2014.

Page 3. Accessed on October 26, 2014, at http://www.ddiworld.com/DDI/media/pov/sixavoidableblindspotsthatcrippletmainitiatives_pov_ddi.pdf?ext=.pdf

17 Evan Sinar, Jill George. “Six (Avoidable) Blind Spots That Cripple Talent Management Analytics Initiatives.” Point of View. Development Dimensions International, Inc. 2014.

Page 3. Accessed on October 26, 2014, at http://www.ddiworld.com/DDI/media/pov/sixavoidableblindspotsthatcrippletmainitiatives_pov_ddi.pdf?ext=.pdf

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