Save Your Succession Pipeline - IMPACT Group€¦ · intersect point where Millennials and Boomers...

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Save Your Succession Pipeline Why You Must Develop Next-Gen Leaders Now

Transcript of Save Your Succession Pipeline - IMPACT Group€¦ · intersect point where Millennials and Boomers...

Page 1: Save Your Succession Pipeline - IMPACT Group€¦ · intersect point where Millennials and Boomers crossed, with Boomers decreasing and Millennials increasing within the workforce.

Save Your Succession PipelineWhy You Must Develop Next-Gen Leaders Now

Page 2: Save Your Succession Pipeline - IMPACT Group€¦ · intersect point where Millennials and Boomers crossed, with Boomers decreasing and Millennials increasing within the workforce.

Save Your Succession Pipeline

Take Stock of the Growing Talent Shortage 06

Critical Leadership Competencies are Significantly Lagging 08

Declining Retention Puts Your Pipeline at Risk 10

Empower Next-Gen Leaders Now 12

Addressing Succession Planning Head-On: A Case Study 14

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As Boomers move out and Millennials become the largest population of the workforce, you likely have a lack of ready-now leaders to fill those vital roles. As succession pipeline gaps widens, there isn’t time to waste. Organizations need to reinvent their approach to attracting, developing, and retaining talent.

Succession planning has never been more critical.

Millennials Surpass Gen Xers as the Largest Generation in U.S. Labor Force, Pew Research Center, 2015 1

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2012 2013 2014 2015 2016 2017 2018 2019 2020

Millennials

Gen-X

Baby Boomers

The Talent Gap

Mill

ions

of P

eopl

e in

Wor

kfor

ceTOTAL WORKFORCE POPULATION

The Talent Gap: the point in time when the supply of available skilled, knowledgeable talent is no longer enough to fill the hiring and promotional needs of companies.

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The Society for Human Resource Management reports that employers are facing the worst talent shortage since 2007.

40% report hiring

difficulties

46% struggle finding available talent2

CONSIDER THIS:

+ How confident are you that your organization’s talent pipeline is teeming with ready-now successors for key roles?

+ What is the future state you desire for your talent landscape?

+ Do you have a plan to get there?

If you find some of these questions difficult to answer with confidence, you’re not alone.

THE NEW REALITY

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The Deloitte Global Human Capital Trends 2016 report offers a telling sign that companies need to place a stronger focus on succession planning and leadership development. Organizations realize the need to address leadership development challenges is paramount – 89% of respondents rated it as ‘very important.’ However, 56% report they are not ready to meet leadership demands.3

And how are their current leadership development programs doing? Forty percent believe their programs deliver ‘some’ value. Twenty-four percent state they yield ‘little to no value.’3

Act now: the future state you desire is possible.

While the picture may seem bleak, there is good news. Investing in developing your current talent to save your succession pipeline has a ripple effect. Not only is it linked to increased engagement and ROI, it strengthens the foundation of growth for your company and your employees. The ROI of development trickles down to the employees’ peers, the vendors they interact with, and – ultimately – the customers. A much needed win for everyone involved.

Our eBook explores why now is the time to address the gaps in your succession pipeline and how your company can retain, leverage, and empower current and emerging talent to meet your future business demands.

An alarming reality

7% companies believe they are ‘excellent’ at building Millennial leaders.

13% companies report they are ‘excellent’

at building global leaders.

14% companies describe themselves as

‘strong’ at succession planning. 3

Chances are high your talent development strategy is not as strong as you think. THE NEW REALITY

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CHAPTER 1

Take Stock of the Growing Talent Shortage

Inexperienced employees are stepping into leadership positions earlier than ever before. 2014 marked the intersect point where Millennials and Boomers crossed, with Boomers decreasing and Millennials increasing within the workforce. By 2024, the Baby Boomer cohort will be ages 60 – 78, and a large number will already have exited the labor force.1

The reality is with Baby Boomers leaving, up-and-coming leaders don’t always have the benefit of ‘time’ to develop the critical skills needed to lead. Two-thirds of younger leaders (many of whom are Millennials) report feeling unprepared when entering their leadership role.4 Even after spending time as leaders, they continued to report that lack of experience made it challenging to manage difficult people and resolve conflict.

ASSESS YOUR COMPANY:

+ How many of your employees are within 5 years of retirement?

+ How many of these employees are leaders?

+ What is your current level of qualified bench strength to fill the succession pipeline for these roles?

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Global Talent Shortage The pipeline of talent ready to step into

leadership roles across the globe is small. In a survey of global managers and leaders,

Harvard Business Review found a disturbing lack of confidence when it comes to the

health of talent pipelines.

51% workers looking

to leave their current jobs7

Employee turnover is leading to talent shortages, as well.

Are you proud to share your employee retention rate number? As job opportunities increase and the market favors employees, resignations may be on the rise within your organization.

The number of voluntary quits in 2015 was higher than it has been since the start of the recession in 2007 according to the Bureau of Labor Statistics.5 Pair this with Gallup’s finding that roughly two out of every three employees are not engaged and you have a recipe for high turnover in the ranks.6

Most organizations use exit interviews as a part of the voluntary turnover process. Waiting until your employee is headed out the door to find out why he is leaving is not the most proactive approach. And it will do nothing to help you address the widening talent gap.

Careful planning now will shape the leaders you desire for the future. Let’s take a look at the leadership competencies many employees lack and how tailored development can empower them for the next step in their career.

Companies’ Confidence of Qualified Pipeline Successors

15%30%

15%

How to Hang On to Your High Potentials, Harvard Business Review, 20118

34% employees planning to leave

current role in next 12 months

66% satisfied employees who are

open to new employment

THE GROWING TALENT SHORTAGE

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CHAPTER 2

Critical Leadership Competencies are Significantly Lagging

Bersin reports that the capability gap for building great leaders is widening and leadership pipelines are reportedly weak across all sectors and industries. Indeed, their newest research shows that capable leadership talent is rare. Only 60% of leaders in the organizations surveyed show commercial acumen and business judgment; 48% are seen as driving change and innovation; and only 44% build talent for competitive advantage.9

As these stats indicate, relying on current leaders to actively develop the leadership competencies in their team members is a faulty plan. Even your rock star leaders aren’t great at this. Structured processes and integrated development programs are key to achieving growth in rising leaders.

The Future of Leadership in a Changing Workplace, Bersin by Deloitte, 2016 9

40%Lack commercial acumen and business judgment

40%Don’t execute and achieve results through their people

44%Fail to persuade and influence stakeholders

49%Unable to create synergies through working in partnership

50%Lack vision and direction

52%Don’t drive change and innovation

53%Can’t inspire people to follow them

56%Fail to build talent for competitive advantage

Current Leaders are Lagging in Key Leadership Competencies

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Data gathered by Global Human Capital Trends Report suggest that the traditional leadership development paradigm is simply not delivering what is expected and necessary.” – Deloitte University Press3

Yet growth-oriented challenges aren’t prioritized.

Creating opportunities for valuable on-the-job development is critical to both skill growth and employee engagement. This works best when development is embedded into every part of a person’s job. However, too often growth opportunities are provided as one-off episodes or events that aren’t directly applied to day-to-day work.

Deploying a variety of learning approaches is essential to increase the leadership skills in your rising talent. A multimodal learning approach using proactive coaching, seminars, and skill-development projects reinforces learnings and further solidifies gains.

Development opportunities should not be reserved for the upper tiers of your org chart. It’s vital to build integrated development programs that can be scaled and cascaded across your organization.

Millennials expect to be challenged and developed. They aren’t interested in growing just for their own sake, but also for the success of their company and the world around them. The ground swell that is starting here is consistent with what drives growth for everyone – regardless of age. So, take a note from the younger generation in your office and create regular growth opportunities to ensure key leadership skills flourish among your teams.

CRITICAL LEADERSHIP COMPETENCIES

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CHAPTER 3

Declining Retention Puts Your Pipeline at Risk

Not only are retiring Baby Boomers leaving the workforce at an unprecedented pace, younger employees aren’t always sticking around to advance within your company. A talent gap at your organization could be caused from subpar retention rates.

Managers are dropping the ball as people leaders.

The working relationship an employee has with her immediate manager is a highly important factor in job satisfaction. In fact, research indicates it’s the single most important lever to drive engagement and retention. Good managers inspire employees to give their maximum effort. They understand what motivates different team members and their preferred work style, which in turn sparks interest and passion in employees.

Managers need to view themselves as talent developers. The most effective managers are great mentors and coaches to their teams. These managers delegate challenging opportunities, make recognition a priority, and seek out and use employee ideas. While personalities always differ, making employees feel heard and valued goes a long way in developing their skills and keeping them engaged.

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4 Reasons Employees Quit10

1 Poor fit between employee and company culture.

2 Supervisor is a poor manager.

3 Employee doesn’t feel challenged.

4 Employee doesn’t understand company goals and how he contributes.

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Employees are less engaged when they don’t understand their contribution.

High-impact managers and leaders connect the employee’s contributions to larger organizational goals and outcomes. The most engaged employees feel a strong connection between their role and the goals of the organization. Getting your talent behind your company’s initiatives is only possible when they can describe how they personally contribute to those goals.

IMPACT Group’s experience in leadership and talent development has shown that employees want to know how they are making a meaningful difference, how their work impacts business growth, and where their skills can be maximized in future positions. Immediate managers must be able to articulate how a team member’s contributions matter in the grand scheme to retain and grow key players.

Low engagement is fueling the gap.

Research shows that a third of the factors that drive employee engagement are directly tied to career development.11

+ Career Support: Employees receive support from direct manager to grow their career. This includes the manager providing guidance, opening doors, and promoting the employee’s exposure to different functions.

+ Development Opportunities: Direct manager provides opportunities for valuable on-the-job development. Development is embedded into every part of a person’s job and incorporates a variety of different learning approaches.

+ Nature of Career: Organizational equivalent to Career Support, which is immediate supervisor support. Organization provides clear and compelling career paths and tools for employees. Employees have a clear understanding of the skills needed and what mechanisms they can leverage to build their leadership skills.

Disengagement drives voluntary turnover. There are factors within every organization that can either promote or chill engagement. Your current talent is a precious commodity and far too valuable to lose. By proactively addressing these common root causes for turnover, you will keep your valuable talent from jumping ship.

DECLINING RETENTION

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Imagine this scenario: A group of people are taken to a driving range to hit golf balls with a pro. Another group attends a training and reviews slides with a presenter. In four hours, which group is best able to hit a golf ball?

Effective leadership development requires much more than a training manual and a one-hour session. It’s not something your employees can check off a list and declare, “I’m good now, boss. Thanks!” Experiential (70), Relational (20), and Educational (10) based learning should all be integrated in support of a common development goal.

CHAPTER 4

Empower Next-Gen Leaders Now

Measurable and actionable results are achieved when individuals have a clear plan to apply the learnings to their everyday jobs. With approximately $164 billion spent on learning and development programs13, those valuable resources can’t be wasted on under-delivered training.

The research is clear that the most impactful learnings come through real-life, stretch assignments. The good news is that the up-and-coming talent from the Millennial demographic value acquiring ‘challenging experiences’ as important to work and overall life satisfaction.

How do you learn best? 12

20% Learn from Others Manager, coaches, mentors, SMEs, peers

10% Learn from Resources Policy guides and manuals, articles, workshops

Learn from Experience 70% Enrichment, stretch assignments, delegation

70-20-10 Model

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Experiences are not all created equal.

Regardless of the skills or audience, there are certain factors that increase the effectiveness of an accelerated leadership development strategy. Stretch assignments create risk which increase the employee’s investment in project success. Provide sufficient support for the employee throughout the process and emphasize that mistakes are an opportunity to learn.

Remember, the primary objective of an accelerated development approach is not short-term business ROI (although, this is often a direct result). The main purpose is to equip your talent with much needed leadership skills to navigate your company toward success in the future.

Ensure the critical support is there:

+ Visible executive sponsorship.

+ Opportunities for targeted reflection and feedback.

+ Direct manager support for development.

+ Peer learning and cohort development integrated into programs.

EMPOWERING NEXT-GEN LEADERS

How will you unlock potential and deliver results at your organization?

Leveraging a fresh take on what constitutes a growth experience and maximizing the modes that have the biggest impact on employee advancement will transform the results of your leadership development efforts.

Next, let’s take a look at how a leading industrial services company applied the 70-20-10 approach to accelerate leadership growth and reverse the talent gap within their organization.

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CHAPTER 5

Addressing Succession Planning Head-On: A Case Study

The SituationIMPACT Group’s client had a growing need to address a pending talent gap. A global leader in the industrial services industry, 50% of their leaders were eligible for retirement within five years and there was an insufficient talent pool for critical roles.

The organization realized that in order to continue to grow, they must accelerate the development of their emerging leaders and drive engagement and retention of high-potential talent.

Because of the highly technical nature of their workforce, the development program needed to center around on-the-job learning. IMPACT Group designed an integrated program leveraging the research-based approach of learning through ‘real-time’ experiences.

Participants identified and executed a capstone project that developed a leadership competency. At program end, more than one third of program graduates were promoted. And, while short-term ROI wasn’t the central goal, the capstone projects yielded immediate organization value. In one case, a single participant’s project resulted in a potential savings of $750,000.

The traditional leadership development model is not producing leaders fast enough to keep up with business demands. ” 3

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CASE STUDY: THE SUCCESSION PLANNING IMPERATIVE

Experiential (70%)Action-Based Learning Project

Presentation to Executives

Our Tailored 70-20-10 ApproachLinked to Organization’s Strategy

The Succession Challenge

The Real Results

The Strategic Solution + Accelerate development of emerging leaders.

+ Drive engagement + retention of high-potential talent.

Measurable Organization Value

Relational (20%)1:1 Leadership Coaching

Manager Support

Executive 1:1

Educational (10%)Comprehensive Assessment

Customized Development Plan

Targeted Learning Resources

+ 50% of leaders eligible for retirement within 5 years.

+ Insufficient talent pool for critical roles.

+ Highly technical workforce.

Achieved defined ROI of $1M through capstone projects in two-year period.

Experienced 100% retention (verses 70%) through development of employee objectives.

Increased efficiencies by 75% in month-end accrual process.

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Prepare for the future!

Examine your current talent pool. Identify at-risk departments or areas.

Re-examine your development strategy to maximize the potential of next-gen leaders. How can you put a new approach to work with a 70-20-10 development plan?

Identify a function, department, or team to pilot an integrated program that will accelerate skill and competency development for your rising talent.

1

2

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Accelerate the development of key talent now.

Next-gen leaders are hungry for experiences, high-value coaching, and feedback – and they want their work to mean something. Deploying a fresh take on 70-20-10 can help you and your organization make real progress in overcoming the talent shortage.

IMPACT Group delivers High IMPACT development programs for professionals at all levels of an organization – ensuring a robust talent strategy for the open waters ahead. Engage your high-potentials with tailored leadership development programs to save your succession pipeline and build a brighter tomorrow!

High IMPACT Coaching Build Your Succession Pipeline

Women in Leadership Accelerate Women’s Careers

High IMPACT Leadership Engage Employees with Next-Level Leadership

High IMPACT Careers Drive Personal Career Development

Learn More

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ABOUT USIMPACT Group is a WBE-certified global leader in relocation support, outplacement assistance, and leadership development solutions. We unlock career potential and empower talent with the knowledge, skills, and tools they need to move their careers forward. IMPACT Group assists leading companies around the world by coaching employees through every career transition. Partner with an industry expert to build your succession pipeline and develop rising leaders. Schedule a meeting today to shape a new reality for your organization.

Let’s Talk

+1 314-453-9002 | [email protected]

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CITATIONS1 Millennials Surpass Gen Xers as the Largest Generation in U.S. Labor Force, Pew Research Center, 2015

2 Employers Are Facing the Worst Talent Shortage Since 2007, SHRM.org, 2016

3 Global Human Capital Trends 2016, Deloitte University Press, 2016

4 2016 Deloitte Millennial Survey, Deloitte, 2016

5 Job Openings and Labor Turnover – June 2016, Bureau of Labor Statistics, 2016

6 Employee Engagement in U.S. Stagnant in 2015, Gallup, 2015

7 Employee Engagement & Loyalty Statistics: The Ultimate Collection, Access Perks, 2017

8 How to Hang On to Your High Potentials, Harvard Business Review, 2011

9 The Future of Leadership in a Changing Workplace, Bersin by Deloitte, 2016

10 Top Reasons Why Employees Quit Their Job, The Balance, 2016

11 FYI: For Talent Engagement, Drivers of Best Practice for Managers and Business Leaders, Korn/Ferry International, 2009

12 Blended Learning for Leadership: The CCL Approach, Center for Creative Leadership, 2014

13 Training Industry Report, Trainingmag.com, 2014

14 The Benchmarks Sourcebook, Center for Creative Leadership, 2015

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