Measuring the Return on Investment in Talent Management in the NHS.

Participant Workbook

May 7, 2015

Paul Turner

Professor Paul Turner

Paul Turner is Professor of Management Practice at Leeds Business School and has held Professorial positions at Universities in Birmingham, Nottingham and Cambridge.

Paul Turner’s previous positions have included President of Europe, Middle East and Africa, Employee Care for the Convergys Corporation of Cincinnati, Group HR Business Director for Lloyds TSB, Vice President of the CIPD, a Director of BT, a Non-Executive Director of Blessing White and OPI and a General Manager for Plessey in both the UK and Asia Pacific.

Paul was leader of HR Master Classes in Dubai, Bangkok and Kuala Lumpur in 2014 and 2015, Chair of the European Human Asset Conferences from 2009 to 2014 and Chair of the European Talent for Tomorrow Conferences. He was a judge on the Middle East and European HR Excellence Awards, as well as the CIPD People Management Awards and a consultant on the CIPD research into Workforce Planning (2010) and Talent Management (2007).

Paul has spoken at business conferences around the world and is the author or co author of Make Your People Before You Make Your Products (2014), Meaning at Work- Employee Engagement in Europe (2012),Talent Management in Europe (2012), Workforce Planning (2010), The Admirable Company (2008), Talent (2007), Organisational Communication (2003) and HR Forecasting and Planning (2002). He has written articles for business journals and the International Press.

Paul has a first degree from the University of East Anglia, a Ph.D from the University of Sheffield and is a Companion of the CIPD.

The fundamental premise

‘If you make your people before you make your products, your people will satisfy your customers; which in turn will make your company profitable;

which in turn will increase the value for your shareholders and provide money to invest for growth’

(Turner and Kalman 2014)

Agenda for the Day

10.00-10.15 Introduction and objectives for the day

10.15- 11.15 Defining talent in the NHS

11.15- 12.00 Identifying goals and objectives for talent management

12.00-13.00 Talent metrics currently in place

13.00-14.00 Lunch

14.00-14.30 Evidence of ROIT from external sources

1430-15.30 Developing a process for measuring talent management initiatives

15.30-16.00 Review and conclusion

What do ‘talent’ and ‘talent management’ mean in

the NHS?

The context for talent management

Talent Management in the 21st Century is different

to talent management in the 20th Century

4-5 generations in the workforce

Across multiple geographies

Connected in an unprecedented

wayHighly mobile

Not defined by the

organisation

Talent Management in the 21st Century is different to talent management

in the 20th Century

Talent 1.0- succession planning

Talent 2.0- attraction of star CEO’s and Executives

Talent 3.0- attraction of high potentials and specialistsTalent as audience

Talent as communityTalent 4.0- talent management in a multi -generational, multi- cultural, mobile, high expectation, networked, information transparent, global environment

Talent Management in the 21st Century is different to Talent Management

in the 20th Century

The internal context- People are not capital, assets or resources; they are people. People design, make and deliver;

they develop IP and create wealth

If you give your people the chance to perform at their best; if they are engaged in what you’re trying to achieve and if you have a workplace in which they can develop and shine; then you will have a powerful edge that no other organisation can

copy.

How are we doing?

The internal reality- managing people is more complicated than rocket science because people are more complicated than

rockets.

Today we manage talent in a flexible or non- hierarchical workforce structure

We manage talent in a diverse workforce

We have to deal with generational differences and the attitudes to employment and career management

We face a three fold challenge

Attracting talent when there are talent shortages

Retaining talent in an era of organisational uncertainty and unpredictability

Managing and engaging talent through conveying meaning and contribution at work

What do ‘talent’ and ‘talent management’ mean in

the NHS?

13

Talent Factory

Maximum Talent EngagementTalent management embedded in management systemsCEO as CTOMeasurement of ROIT

Talent Desert

Minimum discussionMinimum engagementMinimum action

The NHS Talent Evolution Grid

Practical Implementation

Conc

eptu

al A

ccep

tanc

e

LowHighLow

High

14

A Talent Factory

Maximum Talent Engagement; Talent management embedded in systems; CEO as CTO; measurement of ROIT

Talent Desert

Minimum discussionMinimum engagementMinimum action

The NHS Talent Evolution Grid- team to identify how to move between boxes

Practical Implementation

Conc

eptu

al A

ccep

tanc

e

LowHighLow

High

Tale

nt e

ngag

emen

t pla

n A

Talent engagement plan D

Talent engagement p

lan C

Talent engagement p

lan B

In your organisations, what are the goals and

objectives for talent management; why do it in the

first place?

Objectives of Talent Management

How objectives are achieved through talent management

Measures of effectiveness of talent management

Objectives of Talent Management

How objectives are achieved through talent management

Measures of effectiveness of talent management

How HR analytics evolve

18

Level 1-producing ad hoc metrics and reports that tell “what happened.”

Level 2-Descriptive benchmarking and dashboards, which get at “what happened, and how do we compare with others on a defined set of metrics?”

Level 3-Advanced survey analytics, which is about “why did it happen, and how/where can we improve?”

Level 4-is creating predictive solutions, or “what is likely to happen, and how can we be better prepared?”

Talent Metrics Measure

Return on Investment Return on Human Capital

ROIT (Return on investment in Talent) = total benefit of investment in talent – total costs of delivering talent programmes or initiatives x 100

Lower turnover and greater retention of skills

Workforce turnover rate as a percentage

Productivity increases

Throughput of the unit per capita

Cost: income ratio as a result of talent initiatives

CI ratio- Operating costs (administrative and fixed costs, such as salaries and property expenses) divided by operating income

Employee retention

Retention metrics

Employee Engagement

Employee attitude surveysEmployee engagement index

Internal promotions versus external recruitmentAvailability of people to manage strategic projects

Workforce management data

The Rise of Big Data- what is it?

20

The Rise of Big Data- why is it ‘big?’

21

There are five broad ways in which using big data can create value:

• big data can unlock significant value by making information transparent and usable • as organizations create and store more transactional data in digital form, they can collect

more accurate and detailed performance information

• big data allows ever-narrower segmentation of customers and therefore much more precisely tailored products or services

• sophisticated analytics can substantially improve decision-making

• Big data can be used to improve the development of the next generation of products and services.

Big data spans four dimensions: Volume, Velocity, Variety, and Veracity.

Using HR analytics in talent management

22

• The application of data mining and business analytics techniques to people data.

• Correlates business and people data to establish connections between the two and then creates strategies based on that information

• To show the impact that people management has on the performance of the organisation as a whole.

• To provide intelligence and insight to people information that can help an organisation achieve its business goals

The challenge for HR is to decide what data should be captured and ‘how to use the data to model and predict capabilities so the organization improves performance and gets an optimal return on investment’ in people.

IBM’s vision for Workforce Analytics

• Smarter workforce• Talent acquisition• Performance• Learning and development• Succession management• Workforce planning

Strategic

• Smarter operations• Benefits• Payroll• Absence managementOperational

Workforce planning- plan to increase

revenue based on combinations of

talent-inform organisation design to fit market

Recruitment analytics-probable success within job

families-analysis of social

media to attract best candidates

Leadership development-

identifying emerging leaders based on data

analysis-learning and

development through information sharing

Examples of HR analytics

Implementing HR Analytics? CIPD 2013

Talent analytics has three key dimensions:

Technology

• What systems, processes and infrastructure drive data and talent analytics? What platforms are being used and how can we use systems such as Oracle, Hadoop and the like to develop a coherent data strategy?

Techniques

• How should we develop an approach to talent analytics? How should we define, store and share data? How should it be analysed? This aspect covers everything from defining employee turnover to predicting patterns of employee behaviour.

Talent

• Who should deliver our analytics capability? Should we develop new talent pools and, if so, what types? How do we recruit the scarce talent to resource this growing capability need?

Objectives of Talent Management

How objectives are achieved through talent management

Measures of effectiveness of talent management

Process for data collection and dissemination