Set Talent in Motion: Achieving Success With Talent Mobility

HCI
Research
Set Talent in Motion:

Achieving Organizational Success with Talent Mobility
In partnership with:
HCI Research
Table of Contents
Executive Summary......................................................................... 1 About this Research........................................................................ 3 Definition of Key Terms................................................................... 3 Introduction..................................................................................... 4 Leveraging the Mobility Environment............................................ 5 Defining Talent Mobility.................................................................. 6 Recognizing Talent Mobilizers........................................................ 7 Proactive Versus Reactive Talent Mobilizers................................ 10 Talent Mobility Behaviors & Practices.......................................... 12 Identifying & Addressing Talent Mobility Challenges.................. 17 Conclusions & Recommendations................................................ 19 Appendix A: About the Research Partners.................................. 22 Appendix B: Respondent Demographics..................................... 23 Appendix C: Works Cited............................................................. 25
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Copyright 2013 Lee Hecht Harrison and Human Capital Institute. All rights reserved.
Set Talent in Motion: Achieving Organizational Success with Talent Mobility
Set Talent in Motion:
Achieving Organizational Success with Talent Mobility
Executive Summary
This original research report by the Human Capital Institute (HCI) and Lee Hecht Harrison (LHH) explores the discipline of Talent Mobility, an integrated talent management process supporting talent movement that hinges on an organizations ability to effectively understand, develop, and deploy talent in response to business needs within and outside of an organization. These behavioral segments are defined in the following way: Understand organizations focus on talent mobility as a priority, prepare managers to assess their talent and actively communicate with employees information and plans about career opportunities. Develop organizations provide and prioritize opportunities for employees to gain experience and increase skills, while holding managers accountable for developing employees. D eploy organizations focus on filling open roles internally and ensuring that employees have the tools they need to move into new and different positions, while also recognizing redeployment and outplacement as critical components of the talent mobility lifecycle. A 37-item survey distributed to organizational leaders in the spring of 2013 formed the basis of this research in which we examined current concepts, practices and challenges, and proposed a new holistic model of Talent Mobility for businesses to capitalize on.
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The greatest challenges facing Talent Mobility in business today are: confusion and inconsistent definitions of what Talent Mobility is; a lack of a true, strategic approach to designing and implementing related programs and initiatives; and, a lack of proper prioritization across the broader goals of the organization. Our research proposed and tested a holistic model of Talent Mobility, and found that organizations and leaders must plan and implement three distinct processes in order to achieve Talent Mobility success: 1. Understand an organizations current talent and needs; 2. Strategically Develop that talent; and 3. Effectively Deploy the talent. Our hypothesis was that Committed Talent Mobilizers organizations that exhibit all three of the behaviors above would achieve better bottom-line results, as well as espouse a more proactive approach to Talent Mobility than would other organizations. Our survey findings confirmed this hypothesis. Organizational leaders from Committed Talent Mobilizers are more likely to agree that within their business, High potentials are identified, development plans are created, career discussions are conducted regularly, and succession plans for key positions are created and supported. Moreover, organizations that have embraced a holistic view of Talent Mobility are much more likely than other organizations to report revenue growth at or above target goals. The report illustrates the Talent Mobility landscape today, highlighting common behaviors and practices, and identifies key areas for improvement. Most notably: T o meet the demands of todays employee development needs related to Talent Mobility, organizations must be more transparent about opportunities for lateral moves and advancement opportunities. A s a whole, organizations are underperforming in terms of providing employees with information and resources needed to improve their skills, and do not prioritize or adequately fund Talent Mobility practices. E mployees today expect -and organizations will benefit from- enhanced employee opportunities such as working in cross-functional teams, task/ job rotation, and stretch assignments. T o ensure that Talent Mobility is treated as a holistic process, more collaboration is needed among Recruiting & Hiring, Training & Development, and HR Business Partners.
About This Research

This research study was developed in a partnership between the Human Capital Institute (HCI) and Lee Hecht Harrison (LHH), and was conducted in the spring of 2013. A total of 435 valid surveys were completed in March 2013 by HCI members and LHH clients, the results of which make up the core of this research. As part of the HCI research process, qualitative interviews were conducted with business leaders, practitioners, and subject matter experts on the topic of Talent Mobility. These contributors include: Margo Armstrong, Assistant Vice President, Talent Practices, MassMutual Wanda Shoer, Director of Global Mobility Operations, Johnson & Johnson The research findings are summarized in this report, along with information and quotes from relevant secondary sources, including white papers, articles, books, interviews and case studies.
Definition of Key Terms

Talent Mobility An integrated talent management process supporting talent movement that hinges on an organizations ability to effectively understand, develop, and deploy talent in response to business needs. Indices of Understand, Develop & Deploy Indices produced by the HCI/LHH survey analysis that represent the three essential behavioral components of Talent Mobility. C ommitted Talent Mobilizers Respondent organizations that scored highly on all three Talent Mobility indices: Understand, Develop and Deploy. T ier II Talent Mobilizers Respondent organizations that scored highly on two of the three Talent Mobility indices. T ier I Talent Mobilizers Respondent organizations that scored highly on only one of the three Talent Mobility indices. N on-Mobilizers Respondent organizations that did not score highly on any of the three Talent Mobility indices. Proactive Talent Mobility Organizations characterized by activities such as identifying high-potential employees, creating development plans, holding regular career discussions, and creating and supporting succession plans for key positions.
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Reactive Talent Mobility Organizations that tend not to identify future talent needs, have a weak pipeline, and only fill key roles after they are vacated.
Introduction
Todays leading organizations are devoting more attention than ever before to Talent Mobility. What was once recognized as a strategy for preparing employees to take on global assignments has evolved considerably in the past few years. Today, it has become a more comprehensive workforce planning strategy and approach that encompasses the readiness for talent movement and the management process of shifting talent across an organizations projects, roles, teams, departments, and locations. It embraces and plans for increased lateral and vertical movement among employees, domestic and global moves, and even transitions talent outside of the organization. When effectively planned and implemented, a Talent Mobility program is wholly beneficial for both the organization and key employees. It enables an organization to lower its talent acquisition costs by capitalizing more efficiently on in-house talent, helps leaders develop a more capable and resilient talent pipeline, and helps deliver strong financial performance. At the same time, Talent Mobility is a way to engage top performers and make organization-wide opportunities more readily available to key talent. One study remarked on this trend: One of the biggest success-drivers in enduring organizations is their ability to rapidly and transparently move people from role to role and function to function as business needs change. To do this requires a new way of thinking about and managing talent. It requires managers to become more fluent and transparent when speaking about talent and it requires employees to become more actively engaged and candid about their career aspirations and development goals.1 In this research, we found that in order to achieve success with a Talent Mobility program, organizations and leaders must first understand the organizations current talent and needs, strategically develop that talent, and effectively deploy it to where it can best support organizational goals. The nebulous nature of the term Talent Mobility raises questions about how it is perceived and practiced today, and offers us the opportunity to more clearly define it in this report. In addition to obtaining baseline data about the practice of Talent Mobility, our research examined what behaviors differentiate organizations as they mobilize their talent. Measures tied to the indices of Understand, Develop, and Deploy were analyzed to see which, if any, impact revenue and an organizations approach to Talent Mobility.
ersin by Deloitte. (2009, November B 18). Talent Mobility: The New Era of Talent Management. Retrieved May 24, 2013, from www.bersin.com
For the generation now entering the workforce, there is a big interest in moving around a business, in doing different things with your career and making an immediate impact. To be able to support that kind of speed, organizations need to think about talent mobility and capitalize on the practice of it. Moving talent laterally is a way to keep new generations interested and focused on expanding their skills and support the business, while also giving them what they need in order to develop into leaders.
Wanda Shoer, Director of Global Mobility Operations, Johnson & Johnson
Leveraging the Mobility Environment

The state of talent management today calls for solutions that Talent Mobility can offer. On one hand, organizations are experiencing a shortage of skilled labor and weak leadership pipelines. Despite their zeal for workforce development, CEOs admit their shortcomings when it comes to securing the right people for the right jobs to drive growth, Ann Pace notes in a 2012 T +D Magazine article. Because of talent constraints during the past 12 months, 31 percent [of CEOs] could not innovate effectively, 29 percent were unable to pursue a market opportunity, and 24 percent canceled or delayed a key strategic initiative.2 These challenges are only expected to intensify in many developed countries as large numbers of workers reach the retirement age. In the U.S., more than 46 million Baby Boomers with training and education beyond high school will be over age 57 in 2020, which could translate into a labor shortage of as many as 20 million skilled workers.3 Worldwide, one in 12 individuals was at least 60 years old in 1950, a statistic that increased to one in 10 in 2000, and the proportion is expected to increase to more than one in five by 2050.4 Simultaneously, as the workforce demographic is changing, the drive for workplace flexibility continues to alter the talent-management landscape. Many younger workers feel restricted by the standardized 9 5 work cycle, while more mature workers find themselves caring for children and/or aging parents while also managing work obligations. Employers are meeting these demands by redefining when, where, and how workers are able to do their jobs remotely, on a flexible schedule, and/or through job-sharing, for example. In the midst of such sweeping change, employee turnover particularly among younger workers is a challenge for todays organizations. While the median job tenure for U.S. workers age 65 and older was about 10.3 years in 2012, it was only 3.2 years for workers ages 25 to 34, and for all U.S. workers, the median employee tenure was 4.6 years.5 Employees in the 21st century are simply not planning to make a career at a single organization (or even two or three). Many of these individuals are seeking job fulfillment and rapid career growth, and they are willing and able to job hop to achieve those goals. According to a PricewaterhouseCoopers study, 38% of Millenials surveyed agreed with the statement I am always actively on the lookout for other opportunities and keep an eye on the job market. The recent economic downturn and tenuous recovery has potentially compounded this turnover issue, as L&D departments have refrained from offering the full spectrum of training programs and development processes to employees, further adding to the stagnation of workers and their skillsets. If employees lack meaningful challenges in their roles and feel that career opportunities are limited, they are organizational flight risks especially as the economy rebounds. In addition to the loss of productive and high-potential talent that voluntary turnover can result in, replacing that key talent is an
ace, A. (2012, July). The Enduring P Talent Trial. T+D, p. 22. arnevale, T. (2005, January). The C Coming Labor and Skills Shortage. T+D, pp. 37 41. opulation Division, Department of P Economic & Social Affairs, United Nations. (2002). World Population Ageing: 1950-2050. New York: United Nations Publications. ureau of Labor Statistics, U.S. B Department of Labor. (2012, September 18). Retrieved May 24, 2013, from Bureau of Labor Statistics: www.bls.gov
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Talent Mobility is an integrated talent management process supporting talent movement that hinges on an organizations ability to effectively understand, develop, and deploy talent in response to business needs.
expensive proposition for organizations, as turnover costs can range from 93200% of a departing employees salary. 6 Organizations are realizing more than ever that not having the right employees strategically deployed hinders productivity and is a risk to the organizations overall health and talent pool. In addition, a failure to deploy talent most effectively leads to increased work for recruiting and acquisition departments that often operate reactively to fill critical, vacant roles. In response to this challenge, organizations and leaders can address Talent Mobility practices and integrate a new, holistic perspective and approach to it in their organizational culture.
Defining Talent Mobility

As a first step in our survey research, we asked respondents how their organizations currently define Talent Mobility. No consensus emerged; rather, organizational leaders expressed wide variance in how their organizations perceive the term. Nearly half of respondents (47%) cited that development of in-house talent most closely aligned with their organizations definition of Talent Mobility, followed by promotions/advancement of roles (see Fig. 1). Figure 1: What is Talent Mobility?
Development of in-house talent
47%
Promotions/Advancement of roles
29%
Lateral moves within the business Moving positions and/or tasks to people best positioned to manage them 0%
13% 12% 10% 20% 30% 40% 50%
Fig. 1 demonstrates how respondent organizations perceive or define Talent Mobility.
rotherton, P. (2010, December). B Warning Signs of Turnover Waiting to Happen. T+D, p. 24.
In order to address the lack of a basic definition of Talent Mobility among organizational leaders, we propose the following definition that is supported by our research data and analysis: Talent Mobility is an integrated talent management process supporting talent movement that hinges on an organizations ability to effectively understand, develop and deploy talent in response to business needs. In order to achieve success in a Talent Mobility program, organizations must implement effective ways to assess the talent already in-house, design development methods to increase the scope and skill-sets of that talent, and enforce plans to deploy that talent according to the needs of the organization (see Fig. 2).
Know your employees strengths and development needs
De
Talent lop ve
U Talent Mobilizers
Plan and prioritize to help employees gain experience and increase skills
Provide the tools and resources to move employees into new internal or external roles
Ta le n t
Fig. 2 illustrates the holistic model of Talent Mobility, an integrated process supporting talent management that hinges on an organizations ability to effectively understand, develop, and deploy talent in response to business needs.
Recognizing Talent Mobilizers

Rather than a singular process within talent development, Talent Mobility is better understood as a critical segment of the talent lifecycle that includes three primary facets of talent mobilization from strategically acquiring and assessing talent, to actively developing those individuals, to preparing and deploying employees effectively for roles inside or even outside of the organization. To explore the impact of these on organizational performance, we conducted a factor analysis to create three indices to capture the key elements of these behaviors understand, develop, and deploy. An organization scored high on an index if respondents reported that the correlated behaviors listed below are practiced or offered 50% of the time or more often. Those organizations that scored high on an index were then categorized as an Understander, Developer, or Deployer, respectively. Understanders Organizations that understand their talent focus on talent mobility as a priority, prepare managers to assess their talent and actively communicate with employees information and plans about career opportunities. Behavioral measures of Understanders include: Employees are well informed about open positions. Managers assess existing talent. Leaders invest financial resources into talent mobility. Organizations conduct company-wide talent reviews. Organizations hold regularly scheduled performance reviews.
nd t ers t a n d Ta le n
Figure 2: Holistic Model of Talent Mobility
y lo Dep
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Organizations use talent management software. Successors to key positions are identified ahead of need. Developers Organizations that develop their talent do so by providing and prioritizing opportunities for them to gain experience and increase skills, while holding managers accountable for developing employees. Behavioral measures of Developers include: M anagers are responsible and held accountable for building and developing talent. Organizations use career planning processes or platforms. Opportunities for stretch assignments are offered/available. Coaching is offered/available. Internal networking is offered/available. Job search/skill development is offered if/when downsizing occurs. Deployers Organizations that deploy their talent effectively focus on filling open roles internally and ensuring that employees have the tools they need to move into new and different positions. These companies also recognize redeployment and outplacement as critical components of the talent mobility lifecycle. Behavioral measures of Deployers include: Redeployment is considered a key component of talent mobility. Outplacement is a key component of talent mobility. Dedication and seniority are rewarded with opportunities for advancement. Management positions are typically filled internally. Organizations focus on moving job roles/tasks to people best positioned to manage them. Organizations measure/track internal talent moves. Leaders provide employees with tools/information needed to capitalize on internal opportunities. We grouped organizations according to the extent to which they exhibit the behaviors associated with Understanders, Developers, and/or Deployers to determine what survey respondent organizations are doing, and how many have adopted a holistic talent mobilization strategy (see Fig. 3). Based on our data, we broke down respondents into one of four Talent Mobilizer types Non-Mobilizers, Tier I Talent Mobilizers, Tier II Talent Mobilizers, and Committed Talent Mobilizers, and this classification showed a relatively balanced distribution:
Committed Set Talent in Motion: Achieving Organizational Success with Talent Mobility 26% 26%
(3 out of 3 behaviors)
Talent Mobilizers
Non-Mobilizers
Figure 3: Talent Mobilization Types
(0 out of 3 behaviors)
24% 26% 26%
24% 26% 26%
Tier I Talent Mobilizers Committed Talent Mobilizers

(1 (3 out out of of 3 3 behaviors) behaviors) (2 (0 out of 3 behaviors)
Tier II Talent Mobilizers Non-Mobilizers 24% 24% 26% 24% 24% 26% Tier I Talent Mobilizers Committed Talent Mobilizers
(1 out out of of 3 3 behaviors) behaviors) (3 (2 out of 3 behaviors) (0
Tier II Talent Mobilizers Non-Mobilizers Tier I Talent Mobilizers Tier II Talent Mobilizers
24%
24%
Fig. 3 illustrates the breakdown of talent mobilization types Non-Mobilizers, (1 out of 3 behaviors) Tier I Talent Mobilizers, Tier II Talent Mobilizers, and Committed Talent Mobilizers.
As a leader, understanding what it takes to develop an individual and knowing what tools are available to do so is essential. Recognizing what kinds of development methods are offered and which ones are most appropriate to increase necessary skills can have a significant and positive impact in how these programs are used. Also, understanding who your talent is and how you can help them grow is key. This process of understanding, developing, and deploying talent is critical to effective talent mobility; flexibility and continuous analysis is also vital.
Wanda Shoer, Director of Global Mobility Operations, Johnson & Johnson
(2 out of 3 behaviors) N on-Mobilizers: About one quarter (26%) of organizations did not score highly on any of the three behavioral indices Understand, Develop, or Deploy.
T ier I Talent Mobilizers: An additional quarter of respondents (24%) scored highly on ONE behavior index. T ier II Talent Mobilizers: 24% of respondents scored highly on TWO behavioral indices. C ommitted Talent Mobilizers: 26% of respondents scored highly on all three behavioral indices related to Talent Mobilization Understand, Develop, and Deploy. After breaking down our respondents into their respective mobilization groups, we wanted to see what, if any, impact these behaviors had on organizational performance. We hypothesized that Committed Talent Mobilizers (those respondent organizations that exhibit the behaviors of Understanding, Developing AND Deploying talent) would experience higher revenue growth, as well as tend to be more proactive in their approach to Talent Mobility, than would other organizations. Indeed, after a detailed analysis, our hypothesis was confirmed, demonstrating the positive impact a robust Talent Mobility practice can have on business performance. There is a statistically significant relationship between Committed Talent Mobilizers and revenue growth (see Fig. 4). More than three quarters (81%) of Committed Talent Mobilizers report on or above target revenue growth rates, compared with only 68% of other organizations. Notably, these data show that its not sufficient for organizations to be effective at one behavioral component of Talent Mobility (Understand/Develop/Deploy), or even two. Rather, Committed Talent Mobilizers are inclined to aggressively focus on effectively implementing and supporting Talent Mobility. They are 12% more likely than other organizations to report positive revenue growth, demonstrating a clear return on investment for businesses that prioritize this practice. Organizations need to evaluate how they measure up on each of
Oracle. (2012, June). Talent Mobility: An Oracle White Paper.
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the three behavior indices of Understand, Develop, and Deploy, and use that information as a roadmap for areas of improvement and future goals. As one article noted, Successful talent mobility programs yield substantial enterprisewide benefits, including lower talent acquisition costs, stronger leadership teams, and better financial performance.7 This research corroborates that statement, and more importantly, it identifies the three essential behavioral components that can help organizations forecast the next steps they need to take to adopt a strategic Talent Mobility focus. Figure 4: Respondent Organizations with Revenue Growth On/Above Target
*Statistically significant difference at <.05 level.
Non-Mobilizers 71% Tier I Talent Mobilizers 68% Tier II Talent Mobilizers 69% Committed Talent Mobilizers 81%*
All Others 73% All Others 75% All Others 74% All Others 69%
Gap -2%
-7%
-5%
12%
Fig. 4 shows the revenue growth rate Committed Talent Mobilizers experienced in the last fiscal year is 12% higher than other organizations.
Proactive vs. Reactive Talent Mobilizers

Committed Talent Mobilizers organizations that Understand, Develop, and Deploy talent are 12% more likely to experience positive revenue growth than other organizations.
Part of the struggle facing Talent Mobility and its limited formal practice in many organizations today is how the discipline is treated as an afterthought in comparison to other talent management processes. The way an organization and its leaders address Talent Mobility can result in very different outcomes, and our survey looked specifically at a proactive versus a reactive approach to Talent Mobility. Respondents were asked to characterize their organization in terms of one of two approaches to Talent Mobility: Proactive: High potentials are identified, development plans are created, career discussions are conducted regularly, succession plans for key positions are created and supported. Reactive: Future talent needs have not been identified, there is a weak talent pipeline, roles are only filled when they are vacated. Among the behavioral indices, our data found that Non-Mobilizers are much less likely than other organizations are to describe their approach to Talent Mobility as Proactive (2% vs. 61 %), and Tier II Talent Mobilizers are more likely than
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other organizations are to be Proactive (54% vs. 42%). An even larger difference emerged between Committed Talent Mobilizers, as 87% of these respondents proactively address Talent Mobility versus only 30% of others (see Fig. 5.) Figure 5: A Proactive Approach to Talent Mobility
* Statistically significant difference at <.05 level.
Non-Mobilizers 2% Tier I Talent Mobilizers 38% Tier II Talent Mobilizers 54%*
All Others 61%* All Others 47% All Others 42% All Others 30%
GAP -59%
-9%
12%
As organizations welcome in more Gen Y employees and Baby Boomers exit, the leadership teams are younger. And in that environment, the opportunity for vertical movement is very slim. Employees must be willing to sidestep, move around, and grow their skills in new and different ways. Vertical movement still happens, but not nearly as frequently.
Margo Armstrong, Assistant Vice President of Talent Practices, MassMutual
Committed Talent Mobilizers 87%*
57%
Fig. 5 demonstrates that Committed Talent Mobilizers and Tier II Talent Mobilizers are 1257% more likely than other organizations to take a proactive approach to Talent Mobility.
When we looked at the breakdown among all of our survey respondents, slightly more than half of organizational leaders (56%) reported operating reactively regarding talent moves within the business, while the remaining 44% characterize their organization as proactive in their approach to Talent Mobility (see Fig. 6). Thus, for the majority of organizations, there is an acute need for improvement in terms of recognizing the need for and benefits of a robust Talent Mobility program. Margo Armstrong from MassMutual commented on the risk of a rushed and careless approach to talent in business today. Having an emergency successor is not sufficient. A reactive approach to talent mobility works in the short-term but it is not strategic; its a stop gap measure, she said. An organization may be able to keep its doors open, but operating reactively is not going to benefit the business. Accordingly, organizations and leaders need to focus on designing and implementing related plans and processes to support a proactive approach to Talent Mobility.
Figure 6: Contrasting Approaches to Talent Mobility
56% 56%
44% 44%
Reactive Proactive
Fig. 6 illustrates that among all survey respondent organizations, more than half (56%) take a reactive approach to Talent Mobility.
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A cross tabulation of our data with demographic variables yielded another interesting finding, which is larger organizations and those in certain industries tend to be more proactive in their approaches to Talent Mobility (see Fig. 7 and Fig. 8). Organizations with more than 10,000 employees and those in financial markets and banking, as well as those in manufacturing, construction and chemical industries, are most likely to proactively address Talent Mobility. This tendency may be a direct result of larger organizations having increased budgets and fewer constraints on talent management programs and practices overall. In the same vein, businesses with more employees may be better positioned to create and offer a wider variety of roles in the organization that a Talent Mobility practice can best leverage. Figure 7: Proactive Approach by Company Size Small <1,000 employees 35% Medium 1,00110,000 employees 35% Large 10,001+ employees 60%
Fig. 7 shows a positive correlation between company size and a proactive approach to Talent Mobility. The larger an organization is, the more likely it is to proactively address Talent Mobility.
Figure 8: Proactive Approach by Industry
Education/ Healthcare/ Government Life Sciences 21% 39%
Professional Services/Tech/ Telecomm 39%
Manufacturing/ Construction/ Chemicals 54%
Financial/ Banking
57%
Fig. 8 identifies the industries of respondent organizations that take a proactive approach to Talent Mobility. Financial/Banking organizations are most likely to report a proactive approach to Talent Mobility than other industries.
Talent Mobility Behaviors & Practices

While many organizations and leaders recognize the utility of effectively prioritizing and practicing Talent Mobility, not everyone is able to support that acknowledgement with action. To that end, we explored various organizational behaviors and practices at our respondent companies to determine which ones are most frequently exhibited, and which may be lacking within businesses today. An effective Talent Mobility discipline relies heavily on the clear and consistent distribution of information. With regard to communication and transparency, at least 50% of our respondent organizations agreed that they actively work to make internal job openings available to all employees, communicate about the open positions outside of ones team, and fill management positions from within the organization (see Fig. 9). These findings are promising as they indicate that organizations are beginning to understand some of the ways
Only 41% of respondents are well informed about opportunities for lateral mobility within their firms, and even fewer report having transparency around advancement opportunities in their organization.
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76% of respondent organizations are not giving employees the information or resources they need to improve their skills.
Talent Mobility can be fostered in organizations. However, fewer than half (41%) of respondents agreed they are well informed about opportunities for lateral mobility within their firms, and even less agreed that there is transparency around advancement opportunities in their organization. Its clear that some organizations and leaders are behaving in a way that supports Talent Mobility, but there remains vast room for improvement. Advancement opportunities within the organization are available to non-management level employees Management positions are typically filled from within Employees are well informed about open positions outside their team Employees are well informed about open positions outside their business unit/department Employees are well informed about opportunities for upward mobility Employees are well informed about opportunities for lateral mobility 50% 59%
Figure 9: Talent Mobility Behaviors (% agree/strongly agree)
67%
56%
45%
41%
Outplacement is absolutely an important component of talent mobility. When business needs require restructuring that results in reductions, companies that offer outplacement are focused on the entire lifecycle, providing impacted employees with the support and development they need to mobilize and move into their next role outside the organization.
Kristen Leverone, Senior Vice President, Global Practice Leader of Talent Developmentt, Lee Hecht Harrison
There is transparency within my organization around advancement opportunities Dedication and seniority are rewarded with advancement apportunities Management positions are typically filled externally 20%
37%
36%
0%
10%
20%
30% 40%
50%
60%
70%
Fig. 9 illustrates how much respondents agree that communication, transparency, and succession planning behaviors are practiced in their organizations.
When we examined survey respondents characterization of their organizations Talent Mobility priorities, striking findings emerged (see Fig. 10). The levels of agreement with these measures are low across all respondents, garnering at most 34%. Indeed, this tells us that critical components of Talent Mobility are not being adequately addressed by organizations and their leaders. Notably, 76% of respondent organizations are not giving employees the information or resources needed to improve their skills, and 67% of organizations do not prioritize or adequately fund Talent Mobility practices.
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Figure 10: Prioritization of Talent Mobility (% agree/strongly agree)
Leaders in my organization invest financial resources into the practice of Talent Mobility Leaders in my organization spend time ensuring Talent Mobility is an organizational priority Redeployment is considered a key component of Talent Mobility efforts Leaders in my organizations arm employees with tools/information they need to capitalize on internal Talent Mobility opportunities There are incentives in place for management to support, promote, and encourage Talent Mobility within the organization Outplacement is a key component of talent Mobility efforts 0% 24%
34%
33%
31%
18% 15% 10% 20% 30% 40% 50%
Fig. 10 demonstrates how much respondents agree that Talent Mobility is perceived, prioritized and supported by leaders within their organizations.
Talent management tools are great, but they are secondary to having leadership buy-in that can help implement development plans and support employees. Managers need to support opportunities like peer networks and helping their employees build relationships across other areas of an organization. Technology can enhance those experiences and establish a process around them, but it begins with leaders who are invested in the success of their employees and the business.
Its important to note that 85% of our respondent organizations do not recognize outplacement or redeployment as a component of Talent Mobility. But to be most effectively leveraged, Talent Mobility must be understood as a holistic process of any and all talent development and transitions, including external shifts. Our data also found that 82% of organizations do not provide incentives to support, promote, or encourage Talent Mobility practices among management. Like any new initiative, it is critical that executive support and promotion is in place to foster the growth and practice of Talent Mobility in order to drive sustainable success. The ways in which leaders monitor in-house talent are worth noting, as the first phase of a strategic Talent Mobility program is understanding the current talent environment and skill-sets within ones own organization. Nearly 9 out of 10 respondents report widespread use of traditional assessment tools such as performance reviews (see Fig. 11). However, when asked about talent planning for the future, much less activity is reported. Half of respondents report that their organizations employ succession planning, and only 29% agree that employees are offered formal career planning in the form of technology platforms, tracking, or formal discussions with their supervisors and other senior management. In addition, with fewer than a quarter (24%) organizations using talent management software, it is likely that leaders are missing critical information that could help them better understand talent needs and strengths across the organization. Perhaps one of the greatest opportunities for improvement identified by these data is that only 37% of respondents indicate that their organizations hold leaders accountable for developing talent, which is arguably an essential component of the secondary phase of Talent Mobility. Developing top talent is a strategic business
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imperative, one OD Practitioner article notes. As part of the strategic planning process, companies divide customers into different segments so they properly address individual needs and they invest in developing each segment differently according to the potential for greater revenue margins, etc. Companies should do the same for their jobs and talent. The idea is to have your best talent in your most important jobs.8 A robust and strategic Talent Mobility program is one of the best ways organizations and leaders can achieve this goal of aligning skills to business needs. Figure 11: Talent Assessment and Planning Regularly scheduled employee performance reviews Managerial assessment of existing talent Creation of succession plans Regularly scheduled company-wide talent reviews 50% 66%
89%
42%
Experience in organizations is really about breadth and depth of knowledge. When you get to a certain leadership position in the same department as where you began, you have essentially reached your peak. In this era of globalization and rapid movement, leaders are better prepared to take on a higher-level role when they have experienced a more diverse trajectory, and they understand many different functions and processes within the business.
8
Managers are responsible and held accountable for developing employees Career planning Absence tracking and management data Talent management software 29% 25% 24%
37%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Fig. 11 shows what methods are used by survey respondent organizations to measure talent, most notably performance reviews and managerial assessments of existing talent.
It is not particularly surprising that many of our respondents report frequent use of established tools in employee development such as performance reviews, formal onboarding and job training (see Fig. 12). However, newer strategies and development methods such as working in cross-functional teams, task/job rotation, and stretch assignments are more closely aligned with the demands of todays workforce and the nature of work and these more collaborative-based, innovative development techniques also actively prepare employees for mobility across departments and functions. While some organizations intuitively understand the need to grow well-rounded future leaders that have hands-on experience and line of sight across the business, many are missing the opportunity to expose employees to a variety
Morgan, H., & Jardin, D. (2010, Vol. 42, No. 4). HR+OD=Integrated Talent Management. OD Practitioner, pp. 2329.
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of assignments and experiences that would help them see the big picture. This wide-angle perspective continues to grow in importance among leaders as the nature of business continues to become more complex and intertwined. A leader who is able to tap into a wealth of varied roles and experiences across a business is better positioned to understand what needs to be done to sustain the business. In support of this notion, one recent study found that one of the greatest drivers of organizational success is the ability to quickly and transparently move employees between roles and functions when needed.9 Figure 12: Methods of Employee Development
Frequently/Nearly Always or Always Sometimes Never/Rarely
Regularly scheduled performance reviews Formal onboarding Formal job training Internal networking Opportunities to work in cross-functional teams Opportunities for stretch assignments Coaching Conferences/seminars Mentoring Task/job rotation 0% 48% 44% 44% 38% 37% 29% 27% 16% 25% 43% 68%
84% 19% 37% 39% 37% 48% 40% 44% 43%
11% 13% 15% 17% 19% 14% 23% 26% 30% 41%
5%
50%
75%
100%
Fig. 12 identifies how frequently specific employee development methods are used with respondent organizations.
alent Mobility: The New Era of Talent T Management. Retrieved May 24, 2013, from www.bersin.com .A. (2013). Trends and Best Practices N in Sourcing and Hiring Talent. Lee Hecht Harrison White Paper. racle. (2012, June). Talent Mobility: O An Oracle White Paper.
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When asked whether their organization tracks internal talent moves, more than half (60%) of respondents agreed. Of those organizations, approximately 4 out of 10 are able to fill at least half of roles internally; this demonstrates that monitoring the movement of talent in an organization is one key step of the Talent Mobility process (see Fig. 13 and Fig. 14). In addition to the cost savings and morale boost achieved through internal sourcing,10 there is evidence of a positive relationship between filling jobs from within and enhanced company performance, as well as developing strong leaders. 11
11
16
57%
43%
Fig. 13 demonstrates that, among all respondents, 57% track or measure internal talent movements in their organization. 41% say more than half
Figure 14: Percentage of Roles Filled Internally
10% 22%
8% 41% say more than half

10% 8%
More than 75% 5175% 3650% 1635% 115%
33%
22%
28%
27%
33%
59% say half or fewer
One of the greatest challenges facing Talent Mobility is line of sight and communication. Employees need to be more aware of available opportunities that exist within the organization. Fragments of information dont provide the whole picture. Its important to implement the right technology and processes to support the transparency and transmission of that information what are the skill-sets, the development plans, the job openings, and how can we integrate that knowledge into a Talent Mobility program?
59% say half or fewer

Fig. 14 illustrates that of the respondent organizations that track talent moves, 41% fill more than half of their organizational roles with internal talent.
Identifying and Addressing 41% Talent Mobility say more than half Challenges
While these data help present a clear case for the development of a Talent Mobility program in any organization, significant challenges remain. Most More than 75% notably, there is a lack of strategic prioritization and effective approaches to 5175% the practice, stemming from a lack of consensus about what Talent Mobility 3650% is and how it can be supported by organizational leaders and employees 1635% (see Fig. 15). It would appear that many larger organizations have the proper 115% infrastructure in place to implement a Talent Mobility program, but leaders and employees must take the leap and embrace the opportunities that a 59% say half or fewer more formal, mobilized talent base can offer. The information and data outlined in this report can help address some of the top challenges that organizations need to focus on before they are able to effectively implement and leverage a Talent Mobility program. Our data show that 2126% of organizational leaders cannot clearly recognize or articulate what Talent Mobility is, nor do their organizations actively prioritize it (see Fig. 15).
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43%
Yes No
Figure 13: Tracking Internal Talent Moves:
Yes No
HCI Research
Figure 15: Talent Mobility Challenges
No strategic approach in place to identify future talent needs Lack of prioritization of Talent Mobility by organizations Lack of organizational understanding of what Talent Mobility is Talent territorialism among key stakeholders Lack of clearly defined roles and responsibilities Little/no focus on developing talent to meet future needs Lack of infrastructure to connect employees with potential opportunities Organizations do not provide key stakeholders with necessary tools 6% 5% 4% 3% 0% 5% 10% 15% 20% 10% 21%
26%
25%
25%
30%
Fig. 15 shows the greatest struggles facing Talent Mobility today, as reported by respondent organizations.
A secondary challenge facing organizations is recognizing which organizational departments and functions should work more collaboratively to maintain or establish an effective Talent Mobility practice. In more than half of organizations (58%), HR Business Partners are primarily responsible for Talent Mobility (see Fig. 16). However, to ensure Talent Mobility is treated as a holistic process that is part of the breadth of talent management offerings, cross-functional teams focused on Recruiting & Hiring, Training & Development, and general HR policies and processes should play a more substantial role in driving effective Talent Mobility. While some collaboration is common, maintaining frequent Figure 16: Responsibility for Talent Mobility
Frequently/Nearly Always or Always
Sometimes
Never/Rarely
Recruiting and Hiring Training and Development HR Business Partners 0%
35% 30% 58% 25%
30% 32% 24% 50% 75%
35% 38% 18% 100%
Fig. 16 identifies the frequency with which the departments of Recruiting and Hiring, Training and Development, and HR Business Partners work collaboratively to manage Talent Mobility.
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communication and corrective action across all necessary business units Recruiting & Hiring, Training & Development, and HR Business Partners is vital for achieving talent mobilization.
Conclusions & Recommendations

The challenges of todays workplace a shortage of skilled labor, weak leadership pipelines, aging and retiring populations, high turnover among Millenials, and a desire for flexibility and career growth among younger workers are great, but many hinge on providing employees: information and tools they need to develop their skills; insight into organizational talent needs; and opportunities to gain new and richer career experiences. One way to address these challenges and better position an organization for financial success is by strategically embracing the mobilization of talent. As Wanda Shoer, Director of Global Mobility Operations at Johnson & Johnson said, Analyzing talent mobility is an exciting development that is happening in todays market. Were becoming a smaller, more global world, and the ability to understand and move our talent is a big part of how we engage with workers and communities worldwide. This practice is a key part of talent development today, and it will continue to grow in importance as people and businesses become more interconnected and globalized. As with many innovative practices, the sophistication of Talent Mobility lies along a continuum that every organization falls on. At one extreme, some businesses Non-Mobilizers have not adopted any of the behaviors related to Talent Mobility whether those behaviors are tied to Understanding, Developing, or Deploying talent. These organizations are virtually blind to the talent and
Committed Talent M
obilizers
Tier II Talent Mobilizers
Tier I Talent Mobilizers
Understand Develop Deploy
Non-Mobilizers
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HCI Research
Talent Mobility and all of the processes and people and information it entails needs to begin the day an employee walks through the door. Employing someone is a big organizational investment and leaders need to support that investment by ensuring new talent is best aligned with the needs of the organization. Part of talent management and Talent Mobility is actively thinking about how an employees career path can benefit the business.
opportunities at their fingertips. In the middle of the spectrum are organizations that recognize how to effectively conduct one or two of the behaviors Tier I Talent Mobilizers and Tier II Talent Mobilizers, positioning themselves for success but not yet reaching their full potential. And on the highest end of the spectrum, there are Committed Talent Mobilizers organizations that have fully dedicated themselves to effective Talent Mobility practices and reap those benefits including bottom-line results of planning for and facilitating talent moves in and around an organization. This research has identified the behaviors key to implementing an effective and holistic model of Talent Mobility: Understand Organizations that understand their talent focus on talent mobility as a priority, prepare managers to assess their talent and actively communicate with employees information and plans about career opportunities. Develop Organizations that develop their talent do so by providing and prioritizing opportunities for them to gain experience and increase skills, while holding managers accountable for developing employees. Deploy Organizations that deploy their talent effectively focus on filling open roles internally and ensuring that employees have the tools they need to move into new and different positions. These companies also recognize redeployment and outplacement as critical components of the talent mobility lifecycle. Every organization must conduct a thorough assessment of its prioritization of Talent Mobility and performance on these behavioral components so leaders can recognize where they stand in the process and determine the next steps they need to take. This research has identified the following areas as those most commonly in need of attention among organizations today: G reater transparency about internal opportunities, including lateral moves and advancement. Prioritizing and funding the development employees need in order to improve. M ore opportunities for cross-functional work, task/job rotation, and stretch assignments. C ollaboration among Recruiting & Hiring, Training & Development, and HR Business Partners. Its important to remember that an effective Talent Mobility program does more than simply track movement within an organization. Rather, it is a strategic endeavor that can yield significant business results. Deploying workers to where their skills can be best leveraged not only enhances business productivity, but it also contributes to higher levels of engagement and a stronger talent pipeline. Moreover, focusing on the development of in-house talent can help lower
20
recruitment and acquisiton costs and increase the leadership development skills of managers. Leaders can use this report to better define and acknowledge what the components of Talent Mobility are, and focus on improving the behaviors and organizational culture associated with the three indices of Understand, Develop, and Deploy. When an organization is able to effectively achieve each of these three behaviors, they can expect to adopt a more proactive approach to Talent Mobility, and most importantly, experience increased revenue growth as a result. In addition to experiencing positive bottom-line results, organizations that thoughtfully and strategically address Talent Mobility are positioning themselves for more sustainable performance. The ability to recognize, cultivate, and align talent most efficiently to an organizations needs not only directly results in increased productivity, but also reinforces the talent pool of any business and actively contributes to more experienced employees and leaders for the future.
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HCI Research
Appendix A: About the Research Partners

The Human Capital Institute The Human Capital Institute (HCI) is a catalyst for innovative new thinking in talent acquisition, development, deployment and new economy leadership. Through research and collaboration, our global network of more than 138,000 members develops and promotes creativity, best and next practices, and actionable solutions in strategic talent management. Executives, practitioners, and thought leaders representing organizations of all sizes, across public, charitable and government sectors, utilize HCI communities, education, events and research to foster talent advantages to ensure organizational change for competitive results. In tandem with these initiatives, HCIs Human Capital Strategist professional certifications and designations set the bar for expertise in talent strategy, acquisition, development and measurement. www.hci.org Lee Hecht Harrison Lee Hecht Harrison (www.lhh.com) is the global talent mobility leader. We connect people to jobs through innovative career transition services and help individuals improve performance through career and leadership development. LHH assists organizations in supporting restructuring efforts, developing leaders at all levels, engaging and retaining critical talent, and maintaining productivity through change helping organizations increase profitability by maximizing their return on investment in developing people, while assisting individuals to achieve their full potential.
About the Authors

Aubrey K. Wiete, MA is a Senior Research Analyst at the Human Capital Institute in the Organizational Development and Leadership Practice Area. Previously, she was a lecturer and research fellow at the University of Kentucky. Most recently, she has authored reports on how organizational cultures can drive high performance and what methods of development are most effective for executives leaders today. Aubreys other areas of interest include using robust onboarding programs to jumpstart employee engagement, and how workplace teams function most effectively. She earned a bachelors degree from Saint Louis University and a Masters degree in Organizational Communication from the University of Kentucky. Aubrey is based in Cincinnati, Ohio where she enjoys shoes, writing, Scrabble, (occasionally) running, and spending time with her family. Kristen Leverone is a Senior Vice President and a Global Practice Leader of Talent Development at Lee Hecht Harrison. She is a business management professional with over 15 years of experience in employee engagement and change management, and project management. In her practice lead role, she leads LHHs strategic client engagements, develops new products and services, and provides thought leadership in the areas of employee engagement and change management to the market. Additionally, she consults with LHH clients on the talent mobility process and develops and implements solutions to help organizations develop, engage, retain and redeploy their workforce to drive business results.
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Appendix B: Respondent Demographics

Gender
36% 64%
Male Female
Age
3% 5%
1833 years old
45%
48%
3450 years old 5164 years old 65+ years old
Industry
Healthcare Telecommunications Computer Software Wholesale/Retail Aerospace and Defense Electronics Life Sciences Construction Automotive Other
10% 9% 8% 7% 7%
12% 16%
Professional Services Manufacturing Government Financial Markets Chemicals/Utilities/Energy Education Banking
5% 5% 4% 3%
2%
Title/Level of Seniority
2% 31% 5%
Director
3% 4% 7% 8%
Manager Vice President Team member Executive VP/Senior VP C-Level Analyst CEO/President Other
26%
14%
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HCI Research
Number of Employees
10% 21% 11% 15% 9% 4%
Less then 100 101499 5001,000 1,0013,000 3,0015,000 5,0017,499 7,50010,000 10,00119,999 20,000+
Less than $10 million
14% 9%
9%
Revenue
3% 14% 7% 13% 6% 9% 11% 10% 21%
$10$50 million $50$100 million $100$500 million $500$750 million $750 million$1 billion $1$10 billion $10$50 billion $50$100 billion More than $100 billion N/A government/non-profit
Functional Area
9%
3% 3% 6%
Operations Marketing/Sales Human Resources Executive Leadership Other
14% 7%
14%
76%
Role within HR
Benefits Management HR Information Systems Hiring Recruiting Employee Relations Workforce Planning Training and Development
0% 10% 25% 23% 20% 30% 40% 50% 60% 41% 58%
51%
39% 35%
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Appendix C: Works Cited

Bersin by Deloitte. (2009, November 18). Talent Mobility: The New Era of Talent Management. Retrieved May 24, 2013, from www.bersin.com Brotherton, P. (2010, December). Warning Signs of Turnover Waiting to Happen. T+D, p. 24. Bureau of Labor Statistics, U.S. Department of Labor. (2012, September 18). Retrieved May 24, 2013, from Bureau of Labor Statistics: www.bls.gov Carnevale, T. (2005, January). The Coming Labor and Skills Shortage. T+D, pp. 37-41. Lloyd, F. (2012, Summer). Building a High Performance Workforce with a new Type of Corporate Leadership. Energy Workforce, pp. 5-6. McKeown, E. (2009, December). Employee Stagnation Could Lead to Migration. T+D, p. 19. Morgan, H., & Jardin, D. (2010, Vol. 42, No. 4). HR+OD=Integrated Talent Management. OD Practitioner, pp. 23-29. N.A. (2013). Trends and Best Practices in Sourcing and Hiring Talent. Lee Hecht Harrison White Paper. Oracle. (2012, June). Talent Mobility: An Oracle White Paper. Pace, A. (2012, July). The Enduring Talent Trial. T+D, p. 22. Population Division, Department of Economic & Social Affairs, United Nations. (2002). World Population Ageing: 1950-2050. New York: United Nations Publications. PricewaterhouseCoopers. (2012). Talent Mobility 2020 & Beyond. Retrieved May 24, 2013, from PwC: www.pwc.com Sladek, C., & Hollander, E. (2009, Second Quarter). Where is Everyone? The Rise of Workplace Flexibility. Benefits Quarterly, pp. 17-22.
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Set Talent in Motion:

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Set Talent in Motion:

Achieving Organizational Success with Talent Mobility

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

About This Research

Definition of Key Terms

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Leveraging the Mobility Environment

Defining Talent Mobility

Development of in-house talent

13% 12% 10% 20% 30% 40% 50%

Fig. 1 demonstrates how respondent organizations perceive or define Talent Mobility.

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Know your employees strengths and development needs

Recognizing Talent Mobilizers

Figure 2: Holistic Model of Talent Mobility

24% 26% 26%

24% 26% 26%

Tier I Talent Mobilizers Committed Talent Mobilizers

 Oracle. (2012, June). Talent Mobility: An Oracle White Paper.

Proactive vs. Reactive Talent Mobilizers

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Non-Mobilizers 2% Tier I Talent Mobilizers 38% Tier II Talent Mobilizers 54%*

Committed Talent Mobilizers 87%*

Figure 6: Contrasting Approaches to Talent Mobility

Figure 8: Proactive Approach by Industry

Education/ Healthcare/ Government Life Sciences 21% 39%

Professional Services/Tech/ Telecomm 39%

Manufacturing/ Construction/ Chemicals 54%

Talent Mobility Behaviors & Practices

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Figure 9: Talent Mobility Behaviors (% agree/strongly agree)

Figure 10: Prioritization of Talent Mobility (% agree/strongly agree)

18% 15% 10% 20% 30% 40% 50%

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

84% 19% 37% 39% 37% 48% 40% 44% 43%

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Figure 14: Percentage of Roles Filled Internally

8% 41% say more than half

More than 75% 5175% 3650% 1635% 115%

59% say half or fewer

59% say half or fewer

Figure 13: Tracking Internal Talent Moves:

Figure 15: Talent Mobility Challenges

Frequently/Nearly Always or Always

Recruiting and Hiring Training and Development HR Business Partners 0%

35% 30% 58% 25%

30% 32% 24% 50% 75%

35% 38% 18% 100%

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Conclusions & Recommendations

Tier II Talent Mobilizers

Tier I Talent Mobilizers

Understand Develop Deploy

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Appendix A: About the Research Partners

About the Authors

Set Talent in Motion: Achieving Organizational Success with Talent Mobility

Appendix B: Respondent Demographics

3450 years old 5164 years old 65+ years old

Oracle. (2012, June). Talent Mobility: An Oracle White Paper.