January 29, 2013 · 4:30 am
This was originally published on April 17, 2012. It’s worth repeating…
In doing some research for a speech I’m giving, I came across The Talent Management and Rewards Imperative for 2012 from Towers Watson and WorldatWork. It’s chock full of interesting data based on the 2011/2012 Towers Watson North American Talent Management and Rewards Survey and an unpublished Towers Watson 2011 survey of over 10,000 full-time employees in North America on topics such as total rewards, communication and other work-related issues. Because I’ve been looking at data about the state of the talent pipeline (see Data Points #3, #5, #6), I thought this would be interesting reading. Little did I know!
A couple of the data points that stood out to me challenge the “conventional wisdom.” See what you think:
- Only 11% of organizations have trouble retaining employees generally
- Fully 68% of organizations identify high potentials, but only 28% inform those employees who have been identified.
- Organizations underestimate the effect work-related stress and work/life balance have on employee retention, and do not recognized the significance of job security in attracting top talent.
It’s the last point that brought me up short. Look at the chart below.
There are important disconnects between what employees report will attract them into a new job and what employers believe will be important in attracting talent into their organizations. And if you look at the differing views between employers and high potential performers you’ll be even more surprised.
In all of the writing on this topic that I have seen in the last 18 months, no one else reports the significant importance of job security as part of an organization’s EVP (employee value proposition). And look how it ranks as #1 for all employees as well as high-potential employees. #1.
Not meaningful work. Not alignment with the organization’s mission. Job security. Am I the only one surprised by this finding?
Look at the disconnect between the top 5 factors for all employees and employers’ top 5 factors. Outside of base pay it’s a total mismatch!
On the high-potential performers side, outside of base pay and career development opportunity it’s a total mismatch!
It looks like we’re totally out to lunch when it comes to knowing what’s motivating in terms of EVP and the talent pipeline. Out. To. Lunch.
In a world that observes the incredible talent acquisition strategies and investments at organizations like Zappos, PepsiCo, Rackspace and AT&T, we’re encouraged to believe that creating cultures of happiness and engagement are what it takes to delight customers and retain employees – high potential or otherwise. And I chose those organizations because I know the ground-breaking work each is doing in terms of building their talent communities and the engagement of their workforce. They truly are ground breaking.
It turns out talent attraction may be a bit more mundane than “creating a little weirdness.”
It turns out that some of the basics like job security and base pay still hold huge sway in our workforce. And I think this is good news. It gives” regular” employers doing good work and being good to their employees a fighting chance to keep their employees and attract the talent they’ll need going forward.
Basic blocking and tackling. Basic management competence. Basic HR. Can’t get away from them if you want your organization to succeed.
Filed under AT&T, Business Success, Career Planning, China Gorman, Culture, Engagement, HR, Talent Management, Talent pipeline
Tagged as AT&T, Base Pay, Business Success, Career Planning, China Gorman, Culture, Engagement, HR, Job Security, PepsiCo, Rackspace, Talent Management, Talent pipeline, Towers Watson, WorldatWork, Zappos
July 10, 2012 · 5:00 am
Mercer and WorldatWork have collaborated again on a survey and report about current total rewards/compensation trends in metrics and analytics. The focus of the research was to understand what types of analytics are currently being conducted and what technologies are being used to conduct them.
It’s an interesting report – especially from the vantage point of what it says about the relationship between HR and data and HR and analytics. The survey was fielded in February, 2012 to compensation leaders who are WorldatWork members (the dataset held 560 scrubbed responses , a final 10.9% response rate), so they all have more than a passing knowledge of the total rewards function.
The big takeaways of the survey data are that:
- Rather than use sophisticated analytical approaches like projections, simulations and predictive modeling to support decision making, organizations are more likely to use ongoing reports and benchmarking from internal and external peer groups.
- Survey respondents report lack of access to and confidence in data regarding education competencies/capabilities and training investments – critical to workforce analytics.
- Compensation professionals may be falling behind their colleagues in other HR functional areas in their adoption of more sophisticated analytics methodologies.
The report discusses why adoption of more powerful analytics is low despite 67% of respondents indicating adequate skill levels to engage in higher level analytics and almost half (47%) having 1 -2 FTEs tasked with HR-related analytics. More important, 75% of the respondents reported that C-suite executives in their organizations have asked for workforce projections, simulations or predictive modeling.
Mercer and WorldatWork point out that while respondents report that some data is not available or of poor quality, 75% of respondents say their organizations are working to improve the consistency of their data. Paradoxically, 52% are unclear where responsibility for data integrity lies.
I found it interesting that the researchers suggest that “unavailable” data may result from a lack of interest in the data rather than an ability to access it. A compelling point.
From the responses outlined in the exhibit above, one could readily agree with the researchers that critical workforce information about education, competencies, prior work experience and investments in training aren’t top of mind for compensation professionals. It could easily be that compensation professionals believe these datasets and their analysis more naturally belong to other HR functions: learning/development and talent management/acquisition.
The writers argue that rewards/compensation professionals have a preoccupation with the behavioral side of rewards and overlook the “asset side” – the impact of rewards on the ability of the organization to acquire appropriate talent.
The bottom line for the researchers is to encourage rewards/compensation professionals to begin to think more expansively – and use higher levels of analytics – on the role of rewards in driving human capital development and business success and focus a little less on salary competitiveness and pay-performance sensitivity as performance drivers.
A very interesting report and very useful data as you begin to plan your 2013 budget. Stepping up your workforce analytics sophistication could be a game changer for your organization.
Filed under C-suite, China Gorman, Employee Benefits, Engagement, HR Analytics, HR Data, HR Technology, Mercer, Rewards & Recognition, Talent Management, Total Rewards, WorldatWork
Tagged as C-suite, China Gorman, Employee Benefits, Engagement, HR Analytics, HR Data, HR Technology, Mercer, Rewards & Recognition, Talent Management, Total Rewards, WorldatWork