Advanced Talent Management

Results and Benefits of ATM

•	17% lower voluntary turnover rates
•	41% lower turnover rates among key high performers
•	26% higher median revenue/employee
•	28% less likely to have a major layoff in 2009
•	109% more capable of retaining high performers
•	87% more capable of “hiring the best people”
•	92% better at “responding to current economic conditions”
•	144% better at “planning for future talent needs”

Why do I need it?

Do an internet search of “Advanced Talent Management” and you will discover that there are a number of definitions.

As the manufacturing workforce ages and the skills gap widens, Advanced Talent Management has gained increased attention. An internet search of the phrase returns a number of articles and books available for further study.

How do you know if you need to “manage your talent”? Ask your HR department the following questions:

1.	Which segment of our workforce creates the most value?
2.	Which departments will be most impacted by impending retirements? When will these retirements occur?
3.	What positions are the hardest to fill? What are the top and bottom line implications of the vacancies?
4.	What skills do we need that we do not currently possess?
5.	What is our turnover rate in critical areas? What is the direct and indirect cost of that turnover? In productivity? In quality?
6.	Do we have a plan to address the financial consequences of talent loss on our business?

If you don’t have the answers to these questions then the first step is to identify the employees and positions that are critical to your business. And where you are most vulnerable. This is often, but not necessarily, your senior staff.

Critical Skills Assessment

MassMEP has developed a Critical Skill Assessment that, with limited information, can assess a number of different operational areas and provide strategies to mitigate challenges relating to potential skills shortages in key function areas and assessing the impact of an aging workforce on your organization. Most importantly, it links the development and/or modification of training and development programs to key performance indicators. Side by side, a company can see the cost of implementing a workforce development system and the cost of NOT implementing a workforce development system.

Employer Readiness for Workforce Changes

In your opinion, to what extent has your company/organization analyzed
its workforce demographics to ensure that it will have the people it needs, today and in the future?


Numbers do not add up to 100 due to rounding.

Data is from Talent Management Study, The Sloan Center for Aging & Work at Boston College,
Marcie Pitt-Catsouphes, Stephen Sweet, and Kathy Lynch, with Elizabeth Whalley.

ATM Key Practices and Strategies

1. Attracting and Managing Candidates

•	Do you know which open roles you can fill with an internal staff member or manager?
•	How does the marketplace perceive your organization as an employer?
•	Are you leveraging technology to improve your time to respond and market reach for new hires?

2. Employee Engagement and Retention

•	Need to engage employees in improvement initiative?
•	Do you know who is likely to leave the organization in the next 12 months?
•	Do you know who your top talent is. Do THEY know YOU know?
•	Do your line managers have people ready to take over critical roles?
•	Do you know which roles are critical to your line managers’ ability to deliver results?

3. Performance Management

•	Does your staff understand their part of the STRATEGIC plan?
•	Are they clear on what you are expecting them to do?

4. Competency Management

•	Does the person in the role have the right competencies to perform the role?
•	What are the gaps?
•	What development do they need?
•	How do we grow the organizations capability?

5. Planning Ahead - Succession Planning

•	Do you know who can take over from your current leaders?
•	Do you know who is ready now?
•	Do you know who to engage in accelerated development?

6. Performance Incentive Management

•	Do you have the proper incentives in place to motivate your staff and the organization?
•	Can your manager perform a “what if” analysis against staff ratings?
•	Can line managers balance their budget in terms of incentives?

7. Employee Initiated Turnover

•	Do you know why people are leaving your organization?
•	Do you know where the hot spots are?
•	Do you know what it is costing your organization?
•	Do you know what interventions will have an impact on reducing Employee Initiated Turnover and where to apply them?

8. Metrics

•	What metrics are used to understand and address workforce attitudes and engagement levels?
•	How well do you align incentives with appropriate business goals?
•	What is your employee suggestion/employee rate?
•	What is your # training hours/employee per year?
•	What is you “quality/hire” rate? – quality per hire takes into account the downstream impact of the individual on the organization. Need to focus on the performance and productivity as primary measures of how well your recruiting function is doing.
•	Productivity: #units produced/employee
•	High performer voluntary turnover rate
•	Revenue/employee

Changing Role of Human Resources

- H.R. needs to take on a leadership role with operations to be effective and mutually support departments that promote a Lean Enterprise culture.