Beyond the top bottom line people performance
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Beyond the Top & Bottom Line - People Performance. Chris Lozaga Principle Analyst, SuccessFactors Global Research. Erik Berggren Director of SuccessFactors Global Research. Agenda. Who we are. Why smart HCM Matters. People Challenges in the Public Sector. Getting Results.

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Beyond the top bottom line people performance

Beyond the Top & Bottom Line- People Performance

Chris Lozaga

Principle Analyst, SuccessFactors Global Research

Erik Berggren

Director of SuccessFactors Global Research


Agenda

Agenda

Who we are

Why smart HCM Matters

People Challenges in the Public Sector

Getting Results


Revolutionizing the world of work

Revolutionizing the World of Work

Mission

Increase Worldwide Productivity by 50%

We work with recognized thought leaders that share our vision of productivity improvement, all while creating a better place for people to work.

successfactors.com/research/thought-leaders


650 years of research

650+ Years of Research

Dr. Laurie Bassi

Dr. Peter Cappelli

Dr. R.J. Heckman

Josh Bersin

Dr. Jac Fitz-enz

Dr. Jesse Harriot

Dr. Jim Ware

Lexy Martin

Karen Beaman

Charles Grantham

Paul Falcone

Amy Lyman

Jason Corsello

Rob Bernshteyn

Dr. Kirk Hallowell

Dr. David Sirota

Ken Greer

Charles Coonradt

Tom Olivo

Catharine Larkin

Dr. Kim Ruyle

Doug Klein

Bob Paladino

Nov Omana

Nick Bontis

CEO of Workforce Intelligence Inc.

CEO of McBassi & Company and Chair of Bassi Investment Inc.

Professor of Management at the Wharton School of UPENN

President and founder of Bersin & Associates

Co-founder of the Work Design Collaborative

Vice President of the Center of Excellence at Knowledge Infusion

VP and general manager of PDI's Leadership Assessment Products

Founder of the Sirota Survey Intelligence

Vice President of Research for Monster Worldwide

Co-founder and Editor-in-Chief of the IHRIM Journal

Chairman and CEO of The Game of Work and accredited author

Co-founder of the Work Design Collaborative

President of MICA Consulting Partners

Lead author and manager of the CedarCrestone HCM Survey

President of Success Profiles Inc.

Director of the Institute for Intellectual Capital Research

Vice President of Product for Lominger International

Leader of Greer & Associates, Inc.

Founder and Managing Partner of Paladino & Associates

Sirota's President of Consulting

Co-founder and Chair of Board of Directors of Great Place to Work Institute

Senior Consultant for Personal Decisions International

VP of HR of a Fortune 500 firm and accredited author

Board member and Former Chairman of IHRIM

VP of Global Marketing and Management of SuccessFactors


Successfactors primary research 1 2

SuccessFactors Primary Research 1(2)

succes

Smart HCM investment drives financial results

How investment in people drives top and bottom line results

Transparency is key to driving strategy execution

successfactors.com/research

5


Successfactors primary research 2 2

SuccessFactors Primary Research 2(2)

Predictive HCM helps companies manage tomorrow today

Changes in attitude and environment drive changes in HCM

Competencies matter for growth & profit and varies across industries

successfactors.com/research

6


Agenda1

Agenda

Who we are

Why smart HCM Matters

People Challenges in the Public Sector

Getting Results


Beyond the top bottom line people performance

Talent Is A Global Issue

40%

Source: The Economist, Society of Human Resource Management, SF Research & Monster webinar Jan-08, SF Research Analysis


Beyond the top bottom line people performance

Shortage – Education plus baby boomer retirement

enforces predictions of a skills shortage

SKILLED

JOBS

Projected gap in skilled workers by 2020 =

14 Million

UNSKILLED

JOBS

WORK

FORCE

Numbers of jobs and workers, in millions (adjusted for multiple job holding)

Huge Shortage of Skilled Workers Looming

Source: Hudson Institute, Educational Testing Service, Kaplan, BLS, American Demographics, SF Research & monster webinar Jan-08


Beyond the top bottom line people performance

Organizations are not getting the most from their employees

Employee potential is not being

recognized

FACT:

84% of large organizations say they are not using their workforce to its full potential

Saratoga Institute Study


These trends add up

These Trends Add Up

The 500 largest companies will lose 50% of their senior management in 5 years.

The average same employer tenure for U.S. employees is 3 years. For 18-24 year-olds it is 18 months.

Training departments see

1) aligning with HR

2) allocating budget based on business impact

3) accurate measurement

…as areas where they are least effective.

70% of companies report moderate to severe leadership shortages.

Replacement costs for management level positions can exceed 150% of annual salary.

The U.S. will face a 10 million worker shortage in 2010.

Unemployment for U.S. workers with a graduate degree is under 2%.

60% of internal recruiters plan to “significantly increase” use of social networking technology in ‘06 to target passive candidates

Source: Bersin and Associates & SuccessFactors Research, The Role of Competencies in Financial Performance, Webinar 2007, www.bersin.com


So hcm matters

So HCM Matters…

No skills

Talent is a scarce resource around the world

Mobile & disloyal

People are unaligned, unproductive, underutilized and disengaged

Only difference

Talent is the greatest and sometimes only competitive differentiator remaining


Not just a problem for private business

Not Just a Problem for Private Business

Talent Shortage Affects the PublicSector Too


Agenda2

Agenda

Who we are

Why smart HCM Matters

People Challenges in the Public Sector

Getting Results


People challenges in the public sector

People Challenges in the Public Sector


Beyond the top bottom line people performance

Employees don’t know how they can best help their organization

Motivation: Employees don’t get it

FACT:

95% of employees don’t understand their organization’s strategy

“The Balanced Scorecard: Translating Strategy into Action” - David P. Norton, Robert Kaplan


Beyond the top bottom line people performance

Half of all employee time is wasted

Motivation: Employees wasting time, money

FACT:

50% of the average employee’s time is spent on non-productive work

Corporate Strategy Board research; Measures That Matter


Beyond the top bottom line people performance

Motivation: Getting Employees Engaged

Employee engagement is a heightenedemotional and intellectual connection that an employee has for his or her job, organization, manager, or co-workers that, in turn, influences him or her to apply additional discretionary effort to his or her work.


Beyond the top bottom line people performance

Motivation: Getting Employees Engaged

Bottom Line: Pay is not the issue, many other opportunities for increasing engagement

*Gibbons, J. (2006), Employee Engagement: A Review of Current Research and Its Implications, The Conference Board, New York, NY.


Beyond the top bottom line people performance

Motivation: Technology Helps Capture these opportunities to engage employees

Increased Transparency – no surprises

Integrated Career Planning – right direction

Goal Alignment and Skill Development – link goals to company goals

Open Collaboration – bring people together

*Gibbons, J. (2006), Employee Engagement: A Review of Current Research and Its Implications, The Conference Board, New York, NY.


Agenda3

Agenda

Who we are

Why smart HCM Matters

People Challenges in the Public Sector

Getting Results


Beyond the top bottom line people performance

Over 50% are not completely satisfied with their jobs

71% are “poised” for another opportunity if it comes along

56% regularly look at new job opportunities

Attrition

Source: SF Research & monster webinar Jan-08, Monster Intelligence


Beyond the top bottom line people performance

Average employee tenure is down to 3.6 years for younger workers

Demographics predict accelerated retirement rates as the population ages

3.6 Years on the Job

Source: Manpower Professional


Beyond the top bottom line people performance

Attrition: Tackle Engagement First and they will stay

59% of highly-engaged employees have no plans to leave.

35% of the moderately-engaged employees have no plans to leave. 65% are looking for new employment.

24% of unengaged employees have no plans to leave. 76% are looking for new employment.

25


Beyond the top bottom line people performance

Attrition: Use technology to Bring the Team Together

49% of employees agreed with the statement “I feel like part of a team” before implementing their HCM solution at a major SF deployment.

David Sirota, PhD. found a high .36 correlation between employee satisfaction and camaraderie.

This is universal factor among all tenure groups, races, genders, and management levels.

81% of employees agreed with the statement “I feel like part of a team” after implementing their HCM solution a major SF deployment.

7% reduction of turnover of employees after implementing their HCM solution a major SF deployment.


Beyond the top bottom line people performance

Attrition: Be Ready for Retirement withSuccession Planning

  • Value:

  • Improve talent review with consolidated employee profiles

  • Continuity as successors are ready to step up and perform when required

  • Knowledge doesn’t walk out of the door because skills and competencies are inventoried and any loss is planned for

  • Reduce the search time you need to find replacements, and the associated costly hiring costs


Agenda4

Agenda

Who we are

Why smart HCM Matters

People Challenges in the Public Sector

Real Results


Success at pep boys

Results

“SuccessFactors enabled Pep Boys to have our succession planning initiative up and running quickly while the technology is proving to be instrumental in identifying and developing the talent pool necessary to effectively fill business critical positions within our organization” – Liviu Dedes

Success at Pep Boys

Pep Boys’ Triumph

Liviu DedesDirector, Org. Development and Training

  • Strong visibility into high potentials across the organization leading to $150,000 savings through internal employee placement

  • Improvement allocation of compensation funds, overall reduced spend

  • 95% compliance with performance evaluations

In the beginning…

  • New Chairman and CEO

  • Shallow talent pool for services business

  • Minimal visibility to individual performance

  • Difficult to reward employees equitably

  • Struggled to effectively manage a highly dispersed workforce


Beyond the top bottom line people performance

Public Sector Success

  • Research conducted by thought leader partner Dr. Laurie Bassi proves that HCM matters in the public sector

  • What drives performance in schools? Socioeconomics?

  • No, actually how the school was managed, the maturity of their human capital management mattered more

http://www.successfactors.com/research/hcm-non-profit/


Beyond the top bottom line people performance

Massive Impact on Organizational Performance

Increase Workforce Engagement & Productivity

Increase in Operating Results

Revenue & Productivity

Growth

Retain High Performers & Improve Bench Strength

Reduce Turnover

Substantial Operating Cost Reduction

Cost

Reduction

Automate Manager & Administrator Processes


Thank you

Thank You!


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