2018 hcg talent development benchmark study · ed. 2018 hcg talent development benchmark study 78...

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2018 HCG Talent Development Benchmark Study

2018 HCG Talent Development

Benchmark Study

Part I

May 2018

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2

Authors

Shreya Sarkar-Barney, Ph.D.

CEO & Founder

Human Capital Growth

Alyssa Perez Consultant


Izabela Widlak, M.S. Sr. Research Consultant


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3

Leadership

Excellence

Talent

Management

Excellence

US India

We help organizations achieve better outcomes through talent using

science, analytics, and empathy.

Drive business impact

through timely talent

actions

Evidence-based solutions

for measurable and

sustained improvements in

leadership

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The Zoom Web Conferencing Platform

Raise Hand to

comment by voice

Chat for Tech

support or to comment

To test/adjust computer audio

4

If you require HCG or HRCI recertification credits for your participation, please be sure to join with your full name.

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Agenda

Study context

Study participants

Results of the L&D Benchmark study

Q&A

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2018 HCG Talent Development Benchmark Study Part II

Mark your calendars!

Next Webinar Wednesday, June 6th 2018, 8am-9am PT

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Human Capital Dashboard C-Suite Perspectives

85.2 million

skilled worker shortage by

20301

1https://www.kornferry.com/institute/talent-crunch-future-of-work?reports-and-insights 3 https://www.ddiworld.com/DDI/media/trend-research/glf2018/global-leadership-forecast-2018_ddi_tr.pdf?ext=.pdf 4Economist Intelligence Unit/CMA Report (2012): Talent pipeline draining growth

60% Failure to

attract/retain top

talent3

43% Inadequate

human capital reason for not

achieving financial targets4

40% Inadequate

human capital reducing

company’s ability to innovate4

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Return on Human Capital Investment?

8

Increase in annual HR budgets1

4% - 8%

2007-2017

HR performance scorecard2

D – C+

1Bloomberg BNA (2016), 2Deloitte (2017), 3 Statista

Annual estimated training budgets in 20173

$93 Billion (US)

$180 Billion (Global)

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Poll 1

What is your perspective on the rate of return of human capital investments?

• Making a loss

• Breaking even

• Small gains

• Moderate gains

• Large gains

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The Opportunity!

10

24%

Firms that make the right human capital investments stand to gain up to a 24% lift in their operational and financial performance

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Talent Development Excellence

Learning and Development

Career Development

Leadership Development

Current role

Future role Broader role

Survey Goals • Understand current practices in talent

development • Assess use of science-backed practices • Degree of integration across talent

development practices

11

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Highlights

12

Employee Manager L&D Function

• Plenty of access to training • Organizational support for closing

skills gaps

• Limited opportunities to develop deep skills for the future

• Yet to benefit from training that is personalized and impactful in preparing for a future role

• Although managers play an important role in driving training impact, about half of them are uninvolved.

• Managers not skilled in identifying skills gaps

• Positive culture of learning evolving in organizations

• Training satisfaction continues to be the most

popular learning effectiveness measure, despite its limited informational value

• Innovation is the least expected outcome of training

• Training analytics yet to mature

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Benchmark Study Participants

Learning and Development

N=26 (70%)

Career Development

N=15 (41%)

Leadership Development

N=21 (41%)

All three areas N=9

(24%)

50 Organizations from across the global

37 usable records

*Minimum 5 responses for inclusion in analyses

Who are those who did not respond

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Industry Segments

3% 3%

5%

3%

8%

5%

5%

11%

30%

3%

8%

5%

11%

Aerospace & Defense

Manufacturing

Education

Government

Insurance

Manufacturing

Agriculture

Pharmaceuticals

Technology

Automotive

Other

Banking

Business Services

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Entity Type

3% 8%

51%

38%

Government Nonprofit

Publicly traded Private

3% 5%

40% 46%

3% 3%

Early stage start-up Funded late stage start-upGrowth MaturePlateauing Renewal

Organizational Lifecycle

15

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Size of the Workforce

24%

16%

8% 6%

5%

11%

30%

1 - 999

1,000 - 4,999

5,000 - 9,999

10,000 - 19,999

20,000 - 49,999

50,000 - 99,999

More than 100,000

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Role in the HR Function

2%

11%

3%

3%

8%

11%

30%

11%

5%

16% Analyst

Business Partner

CHRO

CLO

Consultant

Director

Manager

Specialist

Vice president

Other

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Learning and Development Benchmark Results

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Definition of Learning

19

A relatively permanent change in behavior as a result of experience and practice

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Learning Excellence

Learning Effectiveness

Learner Characteristics

Learning Design

Learner’s Work Environment

Needs Analysis

Continuous Improvement

Learning Outcomes Skill Gain Engagement Safety Quality Productivity

Strategy Culture Budget Resources Technology

BEFORE AFTER DURING

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78

67

61

56

56

50

50

Our L&D efforts have consistently resulted in closing the skills gaps of ouremployees

Our L&D efforts are shaping the culture of our organization

Our L&D efforts are helping build a strong employer brand

Our L&D function has a reputation of growing talent internally

Our L&D team has an effective approach to distilling the knowledge andskill requirements from our business strategy

Our company has a culture of problem-solving through continuous learning

Our L&D team is highly effective in developing new skills in a timelymanner

Results indicate proportion of respondents who “strongly agreed” or “agreed” to the statements.

L&D Effectiveness

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ctiven

ess

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78

67

56

56

22

22

Skill development is tied to a business activity anda timeline to ensure it is prioritized

An off-the-shelf training solution is purchased anddelivered

The skill need is noted in the employees’ learning plans, and a target completion date is assigned

Resources are reallocated to accelerate the criticalskill development for the target employee

segment

Business leaders actively sponsor critical skilldevelopment initiatives

An expert is recruited to grow the critical skills in-house

Approaches to Handling Requests for Critical Skill Development

Paying attention to open and closed skills and

design elements

N

ee

ds

An

alysis

22

Conducting a needs assessment

4%-9% lift in learning effectiveness

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14% Cognitive

Ability

13% Work

Environment

For each point increase in learner charac how much gain can we expect in transfer

Learner Characteristics

[VALUE]%

18%

[VALUE]%

[VALUE]%

Employees' belief that they can apply the learnedmaterial on the job

Employees' motivation and willingness to learn thenew skills

Employees' ability to learn

Employees' personality characteristics such asconscientiousness, learning orientation, etc.

Learner Characteristics Measured During Learning Activities

5%

8%

8%

8%

42% reported screening for ability to learn when screening candidates

Le

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haracteristics

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Where do you look for inspiration (the most) when designing talent development programs?

11%

11%

30%

33%

15%

Ask friends and colleagues inside and outside theorganization

Look for recommendations from business leaders inthe organization

Practices adopted by leading organizations

Read scientific publications for research findings onwhat works

The Harvard Business Review or similar publications

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Critical Training – Learning Design

82

73

55

46

46

46

36

18

There are multiple opportunities to practice the new skill

The learning content is divided into modules or subsections

Employees receive feedback on their training performance

Employees take a knowledge test before and after learning

Employees take a knowledge test after learning

Employees complete an assignment after learning

Employees set skill application goals before the training ends

The assessment results are used to channel the right level of learningcontent

Highlight what companies are going

well

Practice

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esign

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91

91

91

82

73

46

46

36

27

Funding to attend external training

Request internally-sourced training

On-the-job training

Mentoring

Funding to attend conferences

Tuition assistance

Cross-training

Shadowing

Apprenticeship

Learning and development options available to employees at all levels

Look up research on efficacy of mentoring,

shadowing, OJT.

Cross training build shared mental models, important

predictor of team eff

Le

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esign

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Open and closed skills

Blume, B. D., Ford, J. K., Baldwin, T. T., & Huang, J. L. (2010). Transfer of training: A meta-analytic review. Journal of management, 36(4), 1065-1105.

27

Closed Skills Open Skills

Skills learned in a training environment can be reproduced identically in the work setting

Easier to find opportunities to apply the skills

Rapid feedback and reinforcement Examples: Programming Data analyses

Skills are highly variable, there is not single correct way to act

Requires higher-level of cognitive components

More prone to skill decay

Requires greater support for transfer

Examples: Leadership Negotiation

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58

50

8

For critical skills, the physical setting of the trainingis similar to the real work setting

Most learning offerings are designed to provide arealistic psychological experience through role

plays and simulations

For high risks skills, augmented reality is used toprovide a realistic experience in a safe environment

Le

arnin

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esign

Use of design elements in L&D offerings

28

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MANAGER AND LEADERSHIP TRAINING Leadership Development

People manager development (beginner & advanced)

Supervisory Training

New Manager Training

New hire onboarding

Graduate/Entry Level Training

Recruiting skills

Mentoring

Feedback

Emotional Intelligence

Virtual Teams

Digital Skills

Managing Complexity

Risk mitigation

Innovation

DATA AND ANALYTICS

Metrics

Analytics

Machine Learning

Data privacy and security

SOFTWARE AND ENGINEERING SKILLS

Engineering Skills

Full Stack Developer Program

Agile

Architecture

PRODUCT/INDUSTRY SKILLS

Maintenance Training Program

Operator Training Program

External Certifications

Product Training

Tools Training

Industry Domain

FUNCTIONAL SKILLS

Sales & service

Project and Program Management

Quality management

Safety Training

Compliance Training

ALL EMPLOYEE TRAINING

Online learning libraries for all employees

Mandatory Training

On the job training (OJT)

Training programs most critical for business success

Draw connection to Open and Closed skills and transfer

charac

Le

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esign

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Talent vs. Human Capital Development

Talent Development

• Developing individuals’ capabilities

• Develop job relevant skills

• Closing skill gaps

Human Capital Development

• Building the collective capacity of a team

• Develop critical capabilities needed to win in the marketplace

• Addressing unique needs of the organization

30

For more information check out our Webinar on ‘Designing Learning Strategy to Deliver Competitive Advantage’

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Initiatives to Develop Human Capital

35

35

31

We have several training options to develop thecollective capacity of teams

Teams engage in cross training to improve teamperformance

We use team training to develop shared mentalmental models around a critical business process

Talent development: building capacity of individuals

Human Capital Development: Building the collective of teams and

organizations Le

arnin

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esign

31

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56%

11%

22%

11%

There are no mandated training hours

Greater than 50 hours

31-40 hours

21-30 hours

Mandated Training Hours

Le

arnin

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esign

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Learner’s Work Environment – Embedding a Learning Culture

Learn

er’s

Wo

rk En

viron

me

nt

33

Climate for learning refers to organizational cues that signal that learning is valued, recognized, and rewarded. E.g. manager goals, peer support, equipment availability, and opportunity to practice trained Skills. Explains 7% of the variance in training effectiveness

78

67

65

65

56

56

42

Application of new skills on the job arerecognized and rewarded

Employees set learning goals before startingtheir learning

Employees are encouraged to take charge oftheir own learning

Funding is made available to support allemployees' learning and development needs

Employees have projects where they can utilizeactively practice their new skills

Employees are held accountable to findopportunities to apply their new skills

When screening job candidates, they areassessed for their ability to learn

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Managerial Support for Training

56

50

44

44

44

42

Managers encourage the use of their employees'newly learned skills

Managers have a good understanding of thestrengths each employee brings to their role.

Managers and employees share the learninggoals

Managers discuss the relevance of their newskills with the employees

Employees set application goals with theirmanagers to utilize their new skills

Managers have a good understanding of the gapsand development needs of each employee,relative to the requirements of their role.

58% of managers are not equipped to assess

gaps and development needs of each

employee

Learn

er’s

Wo

rk En

viron

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At your organization, what is the expected outcome of a high-profile talent development program?

15%

4%

4%

22%

56%

It will address 100% of the critical talent need




There is no stated expectation of a return

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Metrics to Measure L&D Effectiveness (Organizational)

55

55

50

40

40

35

35

20

20

10

Productivity

Employee engagement

Quality

Speed of work outputs

Internal promotions

Retention

Sales

Margins

Errors in work outputs

Innovation

What are the other half measuring?

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L&D Effectiveness Measures (Learner)

80%

70%

70%

60%

50%

50%

40%

35%

5%

Learners' ratings of satisfaction with instructor

Number of training hours completed each year

Learners' ratings of satisfaction with training

Knowledge gain as measured by a test

Learners' ratings of utility of training

Job Impact as measured by learner and manager surveys

Changes in business outcomes as a result of the training

Skill gain as measured by simulations

Return on investment

1%

1%

21%

6%

11%

Implication on talent analytics, helping organizations focus on

things that matter

C

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pro

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37

>7%

Key Questions Was the training effective? How can the training be modified to advance learning outcomes?

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When your team becomes aware of highly effective talent development practices, how easy or difficult is it to influence your leadership to adopt the practice?

11%

41%

11%

37%

Almost impossible

Challenging

Extremely easy

Somewhat easy

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When influencing your leaders to replace existing practices with more efficacious practices which of the following is most effective.

33%

15%

15%

37%

Designing an experiment to establish theefficacy before rolling it our more widely

Sharing testimonials from industry leaderswho support the practice

Showing the findings from scientific research

Showing which other reputable organizationsare using the practice

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40

What’s missing, as a majority of North American CEOs indicated in a recent poll, is the ability to embed data analytics into day-to-day HR processes consistently and to use their predictive power to drive better decision making.

A CEOs Guide to Competing Through HR

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Key Take Aways

• Opportunity to shift mindset of training as a cost to training as a strategic value driver

• Suboptimal choices are driving down impact, resulting in perennial challenges • Devil is in the details, no silver bullet

• Where you invest matters

• Training can drive sustained improvements in human capital • Use scientific evidence and analytics

41

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Poll 2

Will you utilize the results of this benchmark study to make improvements to your learning and development practices?

• Yes • Maybe • No

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Poll 3

Will you share at least one take away from this study with others?

Yes

No

43

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Questions?

44

N

ee

ds

An

alysis

Le

arne

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haracteristics

Le

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esign

Learn

er’s

Wo

rk En

viron

me

nt

C

on

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ou

s Im

pro

vem

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Le

arnin

g O

utco

me

s

Le

arnin

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ctiven

ess

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2018 HCG Talent Development Benchmark Study Part II

Save the date!

Next Webinar Wednesday, June 6th 2018, 8am-9am PT

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Thank you!

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2018 hcg talent development benchmark study · ed. 2018 hcg talent development benchmark study 78...

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