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Talent Management Rankings: Our Kind of Olympics

With Rio in full swing and the country getting competitive, what better time to take a look at the all-stars dominating our favourite sport, Talent Management? Time to find out who won big in the categories that really matter; Onboarding, Performance Management, and Learning Management.

 

Talent Management rankings - Medalllists

Gold

Those of you who read my article on onboarding and employee success will know that well-designed onboarding practices are key to ensuring new hires integrate quickly and perform at their best. Amazon-owned retailer Zappos took the gold in this category for its focus on protecting and promoting company culture above all else.

Landing a job at Zappos isn’t easy. The retailer puts the same emphasis on personality and cultural fit as skills and experience, applicants have a 1.5% chance of receiving a job offer¹. But an offer doesn’t mean new hires can breathe easy. Whatever their level or department, everyone goes through the same four week course, receiving extensive training in customer service and company values².

At the end of the four weeks, new hires have two options; head to the office and get started, or take a $2000 payout and leave if they don’t fit the company culture. Less than 2% opt to take the money and run³, with 98% starting work on Monday engaged and committed, knowing exactly what to expect.

Silver

Facebook scooped silver for an onboarding process that is fast and engagement focused. New hires arrive to find their requested PCs, personal devices, and systems all set up and ready to go; but it’s the developers’ boot camp that really won the day for the social media goliath. Developers aren’t hired for specific teams and departments. Instead, they spend six weeks training at HQ and get to choose which department to work in when they graduate⁵, cherry picking the projects that most excite them.

Bronze

These guys are secretive, but rumour has it Apple is a find your own feet kind of employer. New hires are greeted on their first day by any specialist tools they need, a new iMac, and a t-shirt with ‘class of’ and the year of joining. They are expected to dive right in, set up their own computers and introduce themselves to co-workers⁵. It isn’t for everyone, but this ‘do-or-die’ approach certainly means employees hit the ground running.

Talent Management rankings - Medalllists

Gold

I’ve spoken before about Google’s performance management process, so it should come as no surprise that it romped home in first place. This well-deserved gold was awarded for the search giant’s extensive research and the resulting unbiased, 360-degree performance management processes.

Google’s research into employee performance identified two main factors influencing success; clearly written goals, and frequent conversations between individuals and managers⁶. These findings form the basis of a complex, 360-degree feedback cycle that begins with self-evaluation before peers review an individual’s fit with the company culture (a.k.a Googleyness), analytical abilities, execution, thought leadership, leadership, and presence. Peers grade based on strengths, weaknesses, and contributions⁷.

This feedback is used by managers to provide a draft grade, a non-numerical evaluation on a five point scale that ranges from ‘needs improvement’ to ‘superb’. All performance data then goes through a calibration stage, where heavy-handed or lenient graders are identified and employee scores adjusted⁷; giving employees an accurate, unbiased view of their performance.

Silver

Beauty subscription service Birchbox has a dedicated People & Culture team that manages the complete employee experience, with a focus on aligning individuals to organizational goals⁴.

Bi-monthly pulse checks and two yearly, quantitative studies mean they can guide managers and board members on how best to align employees and skills to developmental strategy and initiatives⁴. This integrated approach to business growth and performance management was well-deserving of a silver medal, don’t you think?

Bronze

Goldman Sachs is breaking the mould with its recently overhauled performance management system. Designed to improve staff retention, the Wall Street stalwart has swapped its traditional numerical grading system (complete with automatic layoffs for the bottom 5% of performers) for a qualitative approach almost unheard of in the financial sector⁸.

Now, the focus is on providing high-quality, continuous feedback. Reviews are conducted earlier in the year, giving individuals a chance to improve before bonus time⁸. To reduce grading bias, the new system even uses a similar calibration method to Google⁷.

Talent Management rankings - Medalllists

Gold

Global consulting firm Cognizant was streaks ahead of the competition and landed gold for its Millennial-friendly approach and focus on integrated learning.

With a predominantly Millennial workforce⁹, many who work on-site with clients, the Cognizant learning and development (L&D) strategy needed to be agile, mobile and engaging. The company rose to the challenge, producing multiple learning platforms such as blogs, customized portals, live webcasts, and discussion forums⁹. But the jewel in its L&D crown is ‘One Cognizant’ an app store boasting over 50 learning apps. From gamification to ebooks and progress planners, individuals can choose the tools best suited to their learning style⁹.

Recognising that L&D is an essential element of organisational grown, Cognizant’s ‘5D’ approach to content focuses on aligning learning with long-term objectives. The senior team establish organisational goals first, identifying potential impediments and their solutions, and provide a mix of informal, formal, and collaborative learning initiatives that enable staff to deliver on those goals⁹.

Silver

Like Cognizant, silver medal winner Hilton Worldwide delivers a suite of learning tools to a global workforce. Its L&D strategy is focused on maximising employee performance with self-guided tutorials, interactive workshops, one-to-one training and courses. Learning is typically tailored to the needs of the individual, with employees identifying their own skills gaps and receiving the training and support they need to address themⁱ⁰.

Bronze

Healthcare provider Virgin Care has recently been shortlisted for the Employee Engagement Award thanks to its ‘People Flourish’ learning management system. In a sector known for its apathy to learning and development, this revolutionary program provides staff with leadership training; delivering four modules on people, personalities, and behaviours that are designed to help individuals progress to management positions. It’s an investment that’s paying off, with the program delivering a 22% increase in employee retention¹¹.

To Sum Up…

The tech sector dominated our talent management competition, scooping gold in both the learning and onboarding categories. However, we’re already starting to see Silicon Valley’s innovations trickle into more traditional sectors, as demonstrated by both Goldman Sachs and Virgin Healthcare. These guys are rejecting the typical model of Talent Management in their industries and are already reaping the rewards. Let’s hope more employers follow suit – by 2020 this is likely to be a far more hotly contested race!

Any ideas here you could borrow? I’d love to hear your thoughts on these approaches. Would any work in your office?

References

1Michelle, J. 2011. The Zappos Experience. Inc.com
2Zappos. 2016. Onboarding Fact Sheet. Zappos
3Reynolds, 2016. 3 Companies With the Most Unique Employee Onboarding Process. TinyPulse.
4Doshi and Gregor. 2015. The secret to an ideal work culture. Time Magazine.
5Bhattacharyya, 2016. Employee Onboarding at Facebook, Google and Apple. The Qustn Cafe.
6L&D, 2016. How performance feedback is evolving. L&D.
7QCulture, 2015. Google’s Performance Management Practices. QCulture.
8Shen, 2016. Goldman Sachs is about to make life a bit less stressful for employees. Fortune.
9Meister, 2014. Cognizant Academy: Lessons from a 2020 Learning Organisation. Forbes.
10Association for Talent Development. 2014. Hilton Worldwide. ATD.
11Virgin Care, 2016. Virgin Care Shortlisted for Employee Engagement Award. Virgin Care.

Aligning Learning with Strategy: Why It Matters and What It Means To You

I’m sure more than a few of you read the recent MIT Sloan Management Review article. Since its publication in September, this iteration of a common-sense approach to corporate learning has grabbed a lot of attention. The piece emphasises the importance of aligning learning with corporate strategy, and calls into question those companies focusing on learning and development methods – rather than the knowledge they transfer.

At Cognology, we’ve always championed this approach. Our learning management system integrates seamlessly with our performance management system and wider performance tools for one simple reason; aligning learning and development (L&D) with corporate strategy drives organisational success.

The importance of alignment 

Corporate strategy charts the course for a company that knows what it’s there for, and what it wants to achieve. The link between learning and corporate strategy should be obvious. It’s a concept that has become increasingly relevant, at least in part due to a response to the changes in technology innovating the field of L&D (a subject I discussed recently in this post).

Now with a huge variety of cutting-edge learning approaches, linking them with corporate strategy helps ensure businesses achieve corporate outcomes, through increasing available skills and capability in areas of strategic importance.

Alignment means you can, and should, use corporate strategy to influence learning investment. Providing the team with learning designed to facilitate a specific, profitable or behavioural outcome is common sense. It validates both the time and financial investment the learning program necessitates, gives employees a sense of ownership, and shines a spotlight on your people’s importance to organisational success.

If you read my last post you will know how I feel about promoting brilliance in individuals. People drive organisational growth – providing they have the right set of skills. Aligning learning with strategy ensures that you can target learning outcomes with the potential to facilitate meaningful outcomes.

Integrate L&D KPIs

The benefits of alignment

1. Highlighting corporate strategy

‘Corporate strategy’ is far from an exact term. It can refer to long-term goals, short-term objectives, considered milestones or vague plans.

Aligning strategy with learning brings it into sharp focus. If you are going to invest time developing skills that promote one goal, that goal must be immovable. It has to offer quantifiable benefits in some form or another. And it must be identified and locked-in far enough in advance to implement learning strategies that support it.

When learning outcomes become integrated into corporate strategy, it makes it difficult to avoid scrutinising that strategy. It brings each goal to the attention of numerous individuals, requires objectives to be thoroughly researched and justified before their implementation, and commits multiple resources to achieving one clearly defined outcome.

2. Finding more useful ways to measure L&D

The ‘method versus content’ argument doesn’t mean we should lose sight of the importance of delivery. If learning forms an integral part of your corporate strategy, any weaknesses will have a negative impact on growth and profitability.

A 2014 report by Deloitte found that, when assessing learning through online courses, social, mobile or advanced media, at least 60% of executives considered their organisation’s efforts ‘weak’.

New technologies, online assessments and a move towards gamification and ranking provide metrics on individual performance, but they give us little feedback on its value to the wider organisation.

The good news is that, by aligning learning with corporate strategy, you can effectively measure the learning function. If people can contribute to strategic goals, the connection between learning and application of that learning in the workplace stands a much stronger chance of becoming clear to everyone. That’s the time to review and strengthen strategy.

3. Identify current and future challenges

Thanks to alignment, anticipating challenges and assessing current weaknesses is no longer the sole province of corporate strategy. A good learning program takes into account the capability analysis of the organisation (based on current capability and delivery) and where that capability needs to progress to, based on the needs of the corporate strategy. Knowing where you stand today and how you’re tackling current challenges is one thing, but you also need a plan for anticipating future challenges. A close look at corporate strategy and regular scanning of the wider commercial environment will give great insights into what skills and capabilities your business will need in the future.

If businesses are going to achieve their strategic targets, L&D programs need to anticipate and identify future challenges associated with hitting those targets, and to make sure staff have the resources and training to overcome them.

4. Improve ROI 

Learning represents a significant financial investment for plenty of businesses. There’s always been pressure to qualify the ROI for L&D spend but, without benchmarks, it’s difficult to calculate.

When it comes to increasing ROI, alignment is an approach that the multinational reinsurer Swiss Re has proved works. The organisation’s key talent development plan, overhauled in 2011, operates across all management levels. Participants submit a range of learning initiatives to the CEO, who chooses those with greatest strategic value for implementation. Focusing on areas of strategic importance streamlines the entire learning process. Since the implementation of this new approach, nearly three-quarters of staff make use of new skills within a week of training, and 94% cite training as a worthwhile investment for their employer.

5. Increase employee engagement

Organisations that treat learning as a box-ticking exercise rarely get any real value from it. The skills imparted are either too broad to offer a strategic benefit, or have such little relevance to individuals that they view it as a waste of time.

On the other hand, when organisations encourage employees to take on skills essential to business growth, they’ll often notice a sense of ownership over the outcome. A recent article suggested that retention and engagement is now the second biggest concern for business leaders, and I’ve blogged about this recently too. Targeted learning that’s of real use to both the business and the individual increases their engagement, and encourages long-term commitment.

To sum up…

Corporate strategy sets a vision or direction for an organisation. When learning is aligned with corporate goals, L&D programs support the organisation to deliver capabilities and skills needed for current challenges and the hurdles of the future.

When looking at L&D in the context of business strategy, you automatically target learning budgets at areas of strategic importance. As managers and leaders in business today, we’ve really got to ask ourselves “If our L&D program isn’t aligned with strategy, why not, and at what cost?”

Reference:

Organisations that integrate L&D KPIs with senior management are 13x more likely to report profit increases. HR Review