CLC Next Generation S Readiness To Lead in Asia

CLC HUMAN RESOURCES
HR Quarterly News and Trends, Q4 2011
CLC Human Resources HR Quarterly News and Trends highlights recent developments across global talent markets that shape your
most important decisions as an HR professional. The report includes links to articles, surveys, and research studies from multiple
sources to allow you to browse through in-depth content on the topics.
For more information about how CLC Human Resources and our sister programs serve your needs across the HR function, please
refer to the Overview of our Practice.
TABLE OF CONTENTS
EMPLOYEE ENGAGEMENT AND RETENTION Pages 24

The rise in discretionary effort stalled in Q3 2011. Intent to stay continued to increase, surpassing levels reached during the height of
the recession. Despite efforts to increase collaboration, most employees are uncomfortable seeking feedback from peers.
EMPLOYMENT VALUE PROPOSITION Page 5

Candidates in some key emerging markets (e.g., China and India) receive more interviews and offers than those in developed markets
(e.g., US and UK).
HIGH-POTENTIAL EMPLOYEES Pages 67

Formal succession strategies for junior high-potential employees are less common now than they were two years ago. More than half
of high-potential employees rate their organizations mentoring programs as ineffective.
HR TRANSFORMATION Pages 810

Thirty-four percent of organizations are planning to increase HR technology spend, compared to 21% in 2009. HR has emerged as a
new priority area for CFOs, with an increased number of CFOs now expanding their role into HR.
ORGANIZATION DESIGN Page 11

Over the last three years, work has become increasingly dispersed across functions and geographies, signaling a need for HR to focus
on increasing collaboration and information flow across the different silos of the organization.
PERFORMANCE M ANAGEMENT AND PRODUCTIVITY Pages 1213

A majority of organizations are struggling to align individual employee goals with organizational goals as workflow becomes
increasingly horizontal (i.e., flowing across the organization, rather than from the top-down). Also, many HR professionals (45%)
believe that their organizations are not effective at linking pay and performance.
SUCCESSION M ANAGEMENT Pages 1415

Current leaders are questioning future leadership quality in Asia. Only 54% of organizations have a succession plan for their board of
directors in place.
COMPENSATION AND BENEFITS Pages 1618

Many organizations are using retention bonuses more frequently than they did two years ago. More than 50% of organizations plan to
increase employee contributions to health care premiums. The number of organizations expecting increases in healthcare costs
across the next 12 months has decreased since Q1 2011.
RECRUITING Pages 1922

Recruiting executives are increasingly seeking more passive candidates for open requisitions; as a result, many are specializing their
sourcing function. Additionally, recruiting executives are discovering that tradeoffs exist in decentralizing their recruiting team,
particularly in terms of general business acumen, knowledge of firm-wide talent strategy, and labor market expertise.
TRAINING AND DEVELOPMENT Pages 2326

Rather than adjusting L&D budgets, organizations are focused on reprioritizing investments to ensure support of key talent objectives.
L&D can further improve its impact on the business by challenging line leaders on their key talent decisions.
CLC Human Resources, Corporate Leadership Council Page 1 of 27

2011 The Corporate Executive Board Company. All Rights Reserved. CLC1193711PRO www.clc.executiveboard.com
EMPLOYEE RISE IN DISCRETIONARY EFFORT STALLED

ENGAGEMENT AND
RETENTION Discretionary effort increased significantly in the beginning of 2011, but experienced a marginal
decline (0.4%) between Q2 2011 and Q3 2011. Despite this small decline, discretionary effort
levels remain the highest since early 2008.
Percentage of Employees with High Levels of Discretionary Effort

40%
29.3%
24.2%
20% 18.3%
17.8%
14.8%
13.1% 17.9%
17.3% 12.8%
14.2%
12.8% 13.4% 13.1%

12.0% 12.1%
0%
RECOMMENDED 1H 2H 1H 2H Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007 2007 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
RESOURCES:
Source: Quarterly Employee Engagement Trends: Q3 2011, CLC Human Resources, 2011.
UNDERS TANDING THE TREND The escalation of the debt crises in both Europe and the United States throughout the summer
is negatively impacting employees discretionary effort levels by creating uncertainty about the
Q3 2011 Quarterly Employee future of their organizations and the job market. This uncertainty is counteracting the gains in
Engagement Trends,
discretionary effort experienced earlier in the year.
CLC Human Resources,
This report provides data-based
insight into how engagement levels RECOMMENDED ACTION STEPS
are moving by region, function, and
industry. DRIVE ENGAGEMENT DURING PERFORMANCE REVIEWS WITH EFFECTIVE FORMAL FEEDBACK
ADDRES S ING THE C HALLENGE During this time of year, many organizations are preparing to conduct performance
reviews. HR should fully equip managers to use this time to increase engagement of their
E-Learning: Driving Employee employees via effective formal feedback.
Engagement Through Performance
Reviews (Part 1),
Equip Managers to Provide High-Quality FeedbackWhen preparing for formal
This e-learning helps managers performance reviews, managers should ensure a balance between positive and
prepare to deliver high-quality negative feedback, focus on skills and behaviors instead of personality traits, and
feedback during performance reviews. include suggestions for improving performance.
E-Learning: Driving Employee Drive Engagement During Performance Reviews by Encouraging Employee
Engagement Through Performance InputManagers should involve employees in the performance review process by
Reviews (Part 2), scheduling plenty of time for employees questions, preparing neutral responses in
case of employees negative reactions to the performance review, and owning the
This e-learning helps managers deliver
formal reviews in a way that increases feedback they give instead of blaming a low score on the organizations rating system.
employee engagement. The module
covers using effective language,
encouraging employee input, and
communicating pay differentiation.

EMPLOYEE INTENT TO STAY CONTINUES TO RISE FOR FIFTH STRAIGHT QUARTER

ENGAGEMENT AND
RETENTION Intent to stay continues its steady climb for the fifth quarter in a row, rising by 0.6% between
Q2 and Q3 2011 and surpassing the highs seen during the worst of the economic recession in
Q4 2009.
Percentage of Employees with High Levels of Intent to Stay
40%
31.8% 32.3%
29.8% 29.2% 28.4%
27.4% 31.7%
29.8%
29.0%
22.9% 27.4% 27.5%
26.1%
24.0%
20%
20.1%
0%
1H 2H 1H 2H Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007 2007 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
Source: Quarterly Employee Engagement Trends: Q3 2011, CLC Human Resources, 2011.
RECOMMENDED
RESOURCES: Ongoing uncertainty about the global job market is likely influencing employees intent to stay
levels. If employees see fewer job opportunities outside of the organization, they are more
likely to remain at their current jobs.
UNDERS TANDING THE TREND
Q3 2011 Quarterly Employee RECOMMENDED ACTION STEPS

Engagement Trends,
CLC Human Resources, ENSURE HIGH INTENT TO STAY REFLECTS COMMITMENT TO THE ORGANIZATION
This report provides data-based
insight into how engagement levels
are moving by region, function, and By helping employees see attractive career paths within the organization, HR can ensure
industry. that employees stay at their jobs not because there are few options outside of the
organization, but because they envision their careers progressing within the organization
and are committed to the organization.
ADDRES S ING THE C HALLENGE
Develop Effective IDPsTo create an effective IDP, include input from both the
IDP Template Design Guide, manager and the employee, focus the IDP on one or two measurable goals, and
include stretch roles to help accelerate the employees career progression.
Use this guide to develop an IDP
template to distribute to managers for
facilitating development discussions Empower Employees to Monitor Their DevelopmentEncourage employees to
between the manager and employee. revisit their IDPs frequently and to measure their progress toward meeting their
development goals. Distribute an IDP tracking tool to enable employee monitoring of
IDP Progress Tracker,
goals and to initiate conversation between employees and managers on the continued
This tracker empowers employees to relevance of employee development goals to career goals.
monitor progress toward their
development goals.

EMPLOYEE EMPLOYEES UNCOMFORTABLE SEEKING PEER FEEDBACK

ENGAGEMENT AND
RETENTION Effective informal peer-to-peer feedback is one of three types of peer interactions with the
greatest impact on engagement capital. Fifty-nine percent of employees do not feel
comfortable seeking feedback and guidance from their peers despite organizations efforts to
improve peer-to-peer collaboration.
Percentage of Employees Who Feel Comfortable Seeking Feedback and Guidance from
Their Peers
Agree, 41% Neutral or

Disagree,
59%
Source: The Power of Peers, CLC Human Resources, 2011
Informal feedback that comes from peers has a 60% greater impact on engagement capital
than informal feedback from a manager. Therefore, when employees are hesitant to seek out
informal feedback from their peers, they are missing an opportunity to power their own
engagement and their peers engagement.
Indexed Maximum Impact of Informal Feedback on Engagement Capital
1.60x
Engaegment
Impact on
1.00x
Capital
Manager Peers
Source: Building Engagement Capital, CLC Human Resources, 2011

RECOMMENDED ACTION STEPS
IMPROVE INFORMAL PEER-TO-PEER FEEDBACK SKILLS

RECOMMENDED
RESOURCES: The low level of employee comfort with informal peer-to-peer feedback indicates a need to
increase employee skill and confidence in providing, seeking, and receiving informal
feedback from peers.
Communicate the Elements of Informal FeedbackEmployees may not know the
The Power of Peers, best way to provide their peers with informal feedback. Train employees to provide
CLC Human Resources, specific, constructive, and timely feedback that is relevant to their peers work.
This study contains proven practices
for broadening strategies to improve Train Employees to Use a Non-Confrontational Delivery MethodA non-
engagement capital by fostering confrontational delivery method helps ensure that employees without formal authority
peer-to-peer interactions. over one another are receptive to each anothers feedback. When giving informal
ADDRES S ING THE C HALLENGE feedback, employees should comment on the specific behaviors and the impact of
those behaviors on the team, and suggest specific changes to improve performance.
Guide for Providing Informal Peer-
to-Peer Feedback, Help Employees Get the Feedback They NeedPeer-to-peer feedback is a low-risk
CLC Human Resources, opportunity for employees to improve their performance. Encourage feedback-
Distribute this quick guide to seeking by training employees to ask their peers specific questions about their
employees to serve as a refresher for performance (e.g., Was my quarterly report easy to read?) as opposed to general
giving, seeking, and receiving effective questions (e.g., What did you think?).
informal feedback from their peers.

EMPLOYMENT VALUE WAR FOR TALENT STILL A REALITY IN KEY EMERGING MARKETS
PROPOSITION
Candidates in emerging markets are receiving more interviews and offers for positions than
candidates in more unstable markets. A typical recent hire in Europe, North America, or
Australia & New Zealand submits many applications for employment, but receives
comparatively very few interviews and offers. Conversely, those in China and India receive
more interviews and offers, and as a result those prospective employers must compete with
others for the candidate.
Number of Submissions, Interviews, and Offers for Recent Hires in Key Markets
11
UK 3
1
10
Rest of Europe 3
2
10
North America 2
1
9
Australia & New Zealand 2
1
9
China 4
3
5
India 3
3
Number of Submissions Number of Interviews Number of Offers

RECOMMENDED
RESOURCES: Source: Global Labor Market Survey, CLC Human Resources, 2011.
Despite the global uncertainty, some markets remain relatively stable; as a result, the stakes
are even higher for employers in these key emerging markets to promote their employment
Employment Value Proposition value proposition to talented candidates who may otherwise have additional offers.
Design Center 2.0,
This online, data-based tool allows RECOMMENDED ACTION STEPS
members to view segmented
populations EVP preferences. HIGHLIGHT EVP ATTRIBUTES IN EMERGING MARKETS TO ATTRACT CANDIDATES
2011 Asia Labor Market Update:
Positioning of MNC Employers in
Candidates in key emerging markets have more options than those in unstable markets;
China and India, employers in those emerging markets must therefore focus on highlighting their EVP to
Asia HR Executive Board, further incentivize candidates that likely have more options. Organizations recruiting in
This report will help you identify the India and China should focus on differentiating themselves from their competitors to
top EVP attributes for attracting talent ensure the candidate becomes an employee rather than a competitor.
in China and India.
Stress the EVP Attributes that Reflect Your Regions PreferencesEvery region
ADDRES S ING THE C HALLENGE has unique preferences; whereas Chinese employees are attracted to developmental
opportunities and health benefits, Indian employees are attracted to organizations that
Recruiting Effectiveness stress work/life balance and organizational growth. Determine which EVP attributes
Dashboard, your target labor market values, and target those attributes.
CLC Recruiting,
This benchmarking tool helps you Encourage Hiring Managers to Proactively Engage with CandidatesHiring
collect and analyze information that
can help you identify your
managers play a key role in the recruitment process; when a hiring manager
organizations top attraction drivers. proactively reaches out to a potential candidate, the candidate is 9% more likely to
Additional fees required for non-CLC respond to the outreach. Additionally, hiring managers can provide clear examples of
Recruiting members to access. the type of work the candidate would be doing, which results in a 14% increase in the
candidates likelihood to continue through the recruiting process.

HIGH-POTENTIAL DECLINE IN FORMAL IDENTIFICATION OF JUNIOR HIGH-POTENTIAL

EMPLOYEES EMPLOYEES
Fewer organizations have formal strategies for junior high-potential employees in place
than they did two years ago. Today, less than half of the organizations surveyed have a
formal process for early identification of high-potential talent.
Percentage of Organization with a Formal Process for Early Identification of High-Potential

Talent
50%
44%
2009 2011
Source: Global Leadership Forecast, DDI, 2011.
This decline can be explained by the higher risk associated with designating junior
RECOMMENDED employees to critical stretch roles in the volatile economic conditions experienced in the last
RESOURCES: two years. Despite this increased risk, it is critical to build a pipeline of future leaders by
accurately identifying and developing junior HIPOs.

Global Leadership Forecast 2011,
Development Dimensions IDENTIFY AND DESIGNATE HIGH-RISK, CHALLENGING ROLES FOR EARLY HIPOS
International, Putting HIPOs in critical and complex roles can increase their potential by 22% and
This biennial leadership accelerate their development for future leadership roles. Organizations should focus on
forecast surveys organizations across building critical skills among their early- and mid-career HIPOs by increasing their level of
the globe to understand their current responsibility over time and continuing to expose them to high-risk, high-return opportunities
and future needs of leadership.
through the followings steps:
Identify Junior High-Potential Employees Accurately and EfficientlyMost
High-Potential Employees, organizations find it difficult to identify potential in early- and mid-career employees,
CLC Human Resources, relying on the opinion of the direct manager through annual performance review.
This topic center provides end-to-end However, evaluating performance alone is not sufficient to identify high-potential talent.
guidance on how to identify, develop, Organizations must evaluate employees performance, engagement, and aspiration
and evaluate high-potential levels to accurately identify potential.
employees.
Match Critical, High Impact Roles to High-Potential EmployeesIdentify existing

Methanex's Crucible Role
Implementation Strategy, roles that will provide HIPOs with a balance of risk and development. Model these
CLC Human Resources, opportunities on past critical experiences of current senior leaders. Provide managers
This case study profiles how Methanex with information about these critical roles to enable collaboration with HIPOs to define
designates high-risk opportunities ambitions and direct HIPOs to roles that match their needs and interests.
critical to future leaders as crucible
roles and carefully manages these Establish Explicit Accountability for the Development of Junior HIPOsArticulate
positions to ensure HIPOs have a clear division of responsibility and accountability for the management of junior HIPO
access to them and maximize their
employees to ensure individual accountability. The most effective systems emphasize
time in these roles.
accountability for HIPOs direct managers and communicate developmental
Action Toolkit: Implementing HIPO expectations to HIPOs themselves. This development should be stewarded by the
Crucible Roles, corporate center.
This action toolkit enables you to
leverage crucible roles as a part of
your HIPO development strategy.

HIGH-POTENTIAL HIPOS FIND MENTORING PROGRAMS INEFFECTIVE

EMPLOYEES
More than half of high-potential employees consider their organizations mentoring
programs to be ineffective. Satisfaction levels vary across regions, with only one in four
HIPOs in Europe and one in two HIPOs in Asia finding their mentoring programs effective.
Even in regions with the highest effectiveness scores, at least one third of high-potential
employees rate their mentoring program ineffective.
Percentage of HIPOs Who Find Their Organizations' Mentoring Programs Effective (By Region)
33%
55% 50%
70% 75%
Ineffective
67% Effective
45% 50%
30% 25%
Global North America Asia Central and Europe

South
America
Source: The Global Leader, CLC Human Resources, 2011.
While the majority of organizations have mentoring programs in place, these programs and
relationships often fail to achieve their objectives for a variety of reasons, such as lack of
participation, lack of leadership involvement, poor planning, and unclear expectations.
SECURE SENIOR MANAGEMENT SUPPORT FOR MENTORING PROGRAMS

Successful mentoring programs require proper planning, implementation and evaluation.
In the most effective programs, business leaders emphasize the importance of mentoring,
RECOMMENDED are actively engaged in the process, and hold themselves accountable for developing
RESOURCES: high-potential employees. Use the guidelines below to create and execute a well planned
and a clear mentoring program for high-potential employees:
ADDRES S ING THE C HALLENGE Establish Mentoring Program GuidelinesGather input from senior business unit
and HR leaders to set the objectives of the mentoring program. Address critical focus
areas such as the program strategy, structure, participant criteria, and success
The Global Leader, measures.
This webinar describes organizational
strategies that improve the Identify Best-Fit Mentor-HIPO MatchesIt is critical to understand the knowledge,
performance of global leaders. experiences, preferences, and personal objectives of program participants in order to
match them appropriately. Capture what senior leaders and HIPOs hope to gain from
Implementing a HIPO Mentoring
the mentoring program and use this information to identify strong mentor-HIPO
Program, matches.
This action toolkit provides ready-to- Support and Manage the RelationshipProvide tools, tips, and other support to
use resources and tools to create and help participants understand the benefits of mentoring, identify their personal
maintain an effective HIPO mentoring objectives for the program, build and maintain their partnerships, and evaluate the
program through five core steps. effectiveness of their relationships.
Coach and Mentor HIPOs,
Measure HIPO Mentoring Program EffectivenessGather feedback regarding the
This topic center provides end-to-end overall experience of the program from participants to assess the success of the
guidance on how to implement and program.
manage mentoring programs.

HR TRANSFORMATION HR TECHNOLOGY SPEND INCREASES

HR technology spend has increased in many organizations, with 34% of organizations reporting
higher technology spend in 2011 compared to 21% in 2009 and 29% 2010. Availability of new
HR technologies and upgrades to improve HR service delivery are key drivers behind this trend.
HR Technology Budget Comparisons (20092011)
60% 54%52%
2009
43%
2010
Organizations
Percentage of
2011
30% 25%
22%
18%
15%
11% 10% 10% 11%12%
7% 6%
4%
0%
Much Lower Lower About the Same Higher Much Higher
( >20% Reduction) (< 20% Reduction) (< 20% Increase) (>20% Increase)
Source: An Expansive Landscape of Service Delivery Opportunities, Towers Watson, 2011.
Talent performance systems, recruiting systems, and HRMS upgrades are the top priorities
within HR technology.
Top Priorities within HR Technology
Payroll/Time Management Systems/Services 3% 6% 3%
New HRMS 10% 2%1%
Systems Integration 4% 6% 4%
First Priority
Compensation/Benefits Systems 3% 8% 7%
RECOMMENDED Second Priority
RESOURCES: Upgrade HRMS 13% 3% 4% Third Priority
Recruiting/Staffing Systems 7% 9% 6%
An Expansive Landscape of HR Talent Performance Systems 20% 13% 8%

Service Delivery Opportunities,
Towers Watson, 0% 25% 50%
This report presents the results of a Source: An Expansive Landscape of Service Delivery Opportunities, Towers Watson, 2011.
global survey on HR service delivery
priorities, focus areas for HR
technology, and HR technology spend. RECOMMENDED ACTION STEPS
ALIGN HR TECHNOLOGY INVESTMENTS TO OVERALL HR STRATEGY

Building an HR Technology Organizations should determine their technology priorities based on overall HR focus
Strategy, areas, using the steps below:
This study provides key steps along Decide What Technology will Meet Current and Future HR Strategy Needs
with sample tools and templates for Arrange a discussion with HR stakeholders to understand HRs strategic direction and
effective HR technology strategy the implications for HR technology. Create a heat map to identify both the current
formulation and implementation. state and future HRIT capabilities required to fully support each strategic HR objective.
Technology to Support Integrated Assess Technology Options and Frame HR Technology StrategyAfter
Talent Management,
establishing HR technology needs, review possible solutions to understand which
This study explains the role technology specific technologies will support overall HR strategic goals the best. Create a high-
plays in maximizing the benefits of this level strategy with a mission statement and an action plan that frames goals,
approach to managing human capital. supporting activities, and metrics.

HR TRANSFORMATION CFOS EXPAND REACH INTO THE HR FUNCTION

Nineteen percent of CFOs indicate that they are more involved in the HR function now than in
the past and that it is a key area to which the scope of their responsibility now extends. The HR
function is now the second most common area of expanded responsibility for CFOs.
Areas of Expanded CFO Responsibility

30%
27%
19%
Percentage of
17%
15% 15%
CFOs
15%
7%
0%
Operations Human Marketing Information None/Role Has Sales/Business
Resources Technology Not Changed
Source: Robert Half Management Resources, 2011.
Increased CFO involvement in HR can be attributed to the growing role of HR in supporting

business goals, coupled with the need to streamline costs across functions. Before the
recession, the percentage of CFOs expanding their reach into HR was much below the current
19%, with HR ranking low on CFO involvement. Another reason for increased focus on HR in
the US is the introduction of health care reform and the significant cost increases it is expected
to generate. CFO involvement with the HR function should be leveraged by HR executives to
RECOMMENDED strengthen HRs position as a strategic partner to the business.
RESOURCES:
LEVERAGE CFO INVOLVEMENT TO DESIGN AN HR STRATEGY TIGHTLY ALIGNED WITH BUSINESS
Keeping a Pulse on the Business, NEEDS
Robert Half Management
Resources, CFO involvement with the HR function provides an opportunity for HR to more effectively
This article presents the results of a collaborate with the business as a strategic partner and closely align HR strategy to the
recent survey on CFO involvement on businesss overall objectives. Use the steps below to design a business-aligned HR
functional areas outside of finance.
strategy:
ADDRES S ING THE C HALLENGE Understand Business Priorities to Integrate Business-HR Strategic GoalsStart
the HR strategic planning process once the business is partially through its
HR Strategic Planning Playbook, external/internal analysis, as this analysis informs business leaders evaluation of
CLC Human Resources, HRs effectiveness and talent solution needs. CFO involvement can help HR better
This playbook provides step-by-step time the strategy creation process and gain deeper insights into the business strategy.
guidance and tools to support HR in
the strategic planning process.
Translate Business Priorities into HR Capabilities and Prioritize HR Initiatives
Build HR Strategy Topic Center, Based on Business StrategyCreate a capability heat map to plot high-level HR
CLC Human Resources, capabilities against the businesss objectives, sourced from conversations with the
This topic center provides key insights CFO and other business leaders. Prioritize the identified capabilities based on
on the HR Strategy creation process business importance and existing HR capabilities. CFO involvement at this stage
and resources that can be leveraged helps HR to establish the business case for the selected HR capabilities and secure
when implementing the different steps. business buy-in.

HR TRANSFORMATION FEWER HR EXECUTIVES EXPECT HR BUDGET INCREASES

Only 37% of HR executives expect HR budgets to increase, compared to 40% last quarter.
The percentage of HR executives expecting budget increases has fallen more than 10% since
the beginning of this year. This decline in optimism around HR budget increases may be
attributed to signs of a slump in the economy. Thirty-five percent of HR executives now expect
HR budgets to decrease, as compared to 30% last quarter and 29% this time last year.
Another 28% expect HR budgets to remain the same, as compared to 30% last quarter.
HR Executives Outlook on HR Budgets Across the Next 12 Months
60% Increase No Change Decrease
30%
0%
Q4 2010 Q1 2011 Q2 2011 Q3 2010 Q4 2011
RECOMMENDED ASSESS BUSINESS CONDITIONS AND PRIORITIES TO DETERMINE HR INVESTMENTS

RESOURCES:
Tight budgets require HR executives to carefully prioritize investments to continue
supporting the business with fewer resources. HR business partners serve as the key
source for providing insight into business goals and associated HR priority areas. In
ADDRES S ING THE C HALLENGE addition to reallocating investments, HR should ensure that the key HR activities do not
suffer due to decreasing budgets. Use the steps below to efficiently prioritize HR
Prioritizing HR Initiatives for resources:
Effective Budget Allocation,
This study explains the steps involved Leverage HR Business Partners to Identify Right Areas for HR InvestmentAs
in effectively allocating HR budget HRs representatives to the line, HR business partners have unique insight into the
against the most important initiatives. strengths and weaknesses of HRs current service delivery. Leverage their feedback
when prioritizing investments.
HR Budget Scenario Planning,
CLC Human Resources, Avoid Major Budget Cuts in Certain HR ActivitiesHR budget decision-makers
This study identifies how HR should should not engage in large-scale reductions of HR activities that received significant
prepare for a variety of potential
economic situations to ensure it
resources in previous years. Instead, budget decision-makers should secure a
focuses resources on the most critical minimum budgetary amount for these activities and HR staff should explore alternative
activities. ways serve the same purpose at lower expense.
Managing HR Costs Topic Center, Allocate Resources to HR Activities with Legal RamificationsHR activities of a
CLC Human Resources, legal nature should not be deprioritized, but may be sequenced depending on time
This topic center provides a collection sensitivity. HR activities such as background checks, organizational health and
of resources on effective HR budget safety, and organizational compliance should not be deprioritized under any
planning and sustainable HR cost
management.
circumstances.

ORGANIZATION WORK IS INCREASINGLY DISPERSED ACROSS FUNCTIONS AND

DESIGN GEOGRAPHIES
Fifty-five percent of surveyed employees agree that, over the past three years, their work has
increasingly involved individuals across functions, departments, or geographies. The potential
challenges associated with an increasingly dispersed workforce include poor information
exchange across silos, poor visibility into other parts of the organization, and poor collaboration
with other business units.
1
Percentage of Employees Experiencing Increased Workforce Dispersion Over the Past
Three Years
Neutral or
Disagree, 45%
Agree, 55%
Source: The Power of Peers, CLC Human Resources, 2011.

1
Dispersion refers to work that involves individuals across functions, departments, or geographies.
RECOMMENDED OPEN COMMUNICATION CHANNELS BETWEEN EMPLOYEES

RESOURCES:
In order to address the challenges associated with a dispersed workforce, HR should open
channels of communication and information flow across the organization.
Use Social Media to Bridge the Information GapSocial media platforms that are
Aligning Social Media With
focused on business objectives and are continuously revisited for improvement can
Business Objectives,
CLC Human Resources, greatly improve collaboration effectiveness among dispersed employees.
This study explores how the best
organizations create a focus for their Connect Employees Across Silos in Peer PartnershipsPair employees at similar
social media initiatives and continually levels of experience and tenure in peer partnerships; focus these partnerships on
review their social media networks for ongoing work projects to drive long-term collaboration.
business relevance and direction.
Build Interdepartmental Collaboration through Workflow ShadowingAlter
The Power of Peers,
existing job shadowing programs so that employees may follow an entire work
This study addresses the challenges process as opposed to an individuals role. Workflow shadowing boosts employees
associated with the increasingly knowledge of other functions within the organization, improves interdepartmental
dispersed nature of work by using collaboration, and can lead to process improvements.
peer-to-peer activities to drive
performance and retention.

PERFORMANCE MOST ORGANIZATIONS STRUGGLE TO ALIGN GOALS AS WORK BECOMES

MANAGEMENT AND MORE HORIZONTAL
PRODUCTIVITY
More than half (59%) of organizations indicate that employees performance goals are only
somewhat aligned to business strategy, while 3% indicate no alignment at all. Further, only
38% of organizations report close alignment between employee goals and organizational
strategy.
Alignment of Individual Performance Goals with Organization Goals
38% Very
Aligned
59%,
Somewhat
Aligned
3% Not
Aligned
Source: Performance Management System and Process Benchmarks, CLC Human Resources, 2011.
RECOMMENDED
Organizations continue to struggle with goal alignment due to the increasingly dispersed nature
RESOURCES: of work. Specifically, as work becomes increasingly horizontal and organizations have flatter
structures, it is difficult to set clear performance expectations and goals that are visible and
UNDERS TANDING THE TREND relevant to all areas of the workforce.
Performance Management Systems

and Process Benchmarks: 2011,
This report provides comprehensive RECOMMENDED ACTION STEPS
information on prevalent trends in
performance management practices. ENSURE ONGOING GOAL ALIGNMENT THROUGH RECALIBRATION OF GOALS
Multiple geographies, functions, and businesses amd a general disconnect among goals at
different employee levels often prevent organizations from obtaining clear goal alignment.
Seagates Goal Alignment Cascade, Further, static goal systems make it challenging for organizations to maintain alignment as
CLC Human Resources, conditions and needs change over time. To counter this, organizations should:
This case study demonstrates how
Seagate ensures ongoing goal Support Goal Setting at All LevelsOrganizations can prevent goal dilution by
alignment by enabling the adjustment providing employees at all levels with the information and tools needed to set effective
of goals in response to evolving goals, helping maintain the link between individual and corporate goals.
business needs.
Integrated Talent Portfolio Review Allow Dynamic Goal AdjustmentDynamic goal adjustment speeds the
(Standard Chartered PLC), organizations response time to external changes, enabling the workforce to refine
CLC Human Resources, goals in the moment.
This resource elaborates on the
process used by Standard Chartered Visibly Track Goal RecalibrationVisibly tracking goal status ensures that
to align its performance management employees do not change their goals unnecessarily. Making individual goal
strategy to the business goals: an adjustments visible to an employees manager, peers, and direct reports ensures that
integrated, structured talent portfolio
he or she does not misuse the goal adjustment capability.
review that helps leaders identify and
address talent management risks
relevant to their business objectives.

PERFORMANCE HR PROFESSIONALS UNHAPPY WITH PAY-PERFORMANCE LINK

MANAGEMENT AND Many HR professionals (45%) believe that their organization is either ineffective or very
PRODUCTIVITY ineffective at linking pay and performance, compared to 38% who consider it to be effective.
Effectiveness of Pay-Performance Link at Organizations
Don't Know
17%
Ineffective or
Very
Ineffective
45%
Effective 38%
Source: People Management Mini-Survey, People Management, 2011.
RECOMMENDED
While managing effective performance-based pay is a perennial challenge, this lack of
RESOURCES: confidence on the part of HR professionals indicates that pay is an unrealized opportunity to
improve employee performance. Specifically, insufficient pay differentiation fails to identify
and encourage replication of high performance.
Case Profile: Liberty Mutuals Pay

for Performance Alignment, RECOMMENDED ACTION STEPS
This resource elaborates on how
ENGAGE MANAGERS TO ACCURATELY DIFFERENTIATE EMPLOYEES
Liberty Mutual aligns merit pay to
performance levels and ensures that
rewards are reserved for the highest Managers have a significant role to play in pay differentiation but are frequently unable to
performing employees and business execute it effectively. Managers tend to over-reward average performers by distributing
units. merit pay equally among all employees with little or no differentiation based on employee
performance. HR should enlist managers to accurately differentiate high, medium, and
Short-Term Incentive/ Bonus Plans, low performing employees and to align pay to their performance. HR should ensure:
This brief explains how short-term
Focus on Contributions, Not Just RatingsManagers should focus more on actual
incentive/bonus plans can attract and
retain top performers, motivate desired employee contributions to facilitate effective differentiation and better qualitative
behaviors, and help manage costs. feedback. HR should guide managers to avoid external factors, such as years of
service or past experience when assessing employees.
Best Practices for Differentiating
Performance and Pay, Manager AccountabilityHold managers accountable for pay differentiation by
CLC Compensation, applying soft accountability mechanisms such as decision flexibility, senior leader
This study provides data-based evaluation and approval of pay decisions, and communication of clear expectations
insights on the impact of differentiating
during new manager training. Soft mechanisms are easier to execute because they
performance and pay on key talent
outcomes, including effort and typically require fewer people to be involved, fewer layers of approval, and fewer
retention. formal processes.
Additional fee required for non-CLC
Compensation members to access.

SUCCESSION EXECUTIVES QUESTION NEXT GENERATIONS READINESS TO LEAD IN ASIA

MANAGEMENT
With anemic growth in the United States and Europe, organizations are increasingly relying on
Asia to meet their aggressive growth goals. In particular, organizations are focused on China
and India, which are both expected to grow by 12% in 2011. Unfortunately, qualified leaders
are in short supply in Asia. Just 26% of Asias senior leaders believe their successors are
ready to move to executive roles, as compared to 43% in the rest of the world.
Percentage of Senior Managers Confident in Successors Readiness to Take on

Executive Roles
43%
26%
RECOMMENDED
RESOURCES: Rest of the World Asia
Source: Closing the Leadership Gap in Asia, Asia HR Executive Board, 2011.
Failure to build a robust cohort of qualified leaders and a healthy leadership pipeline puts
Closing the Leadership Gap in Asia,
Asia HR Executive Board,
organizations Asia growth strategies at risk. Investing in skill development is not enough to
This whitepaper discusses the three build this pipeline; organizations must attract and retain the best leaders and provide
key challenges affecting leadership organizational support to enable them to succeed.
quality in Asia.
The Global Leader,

This webinar replay describes the DEVELOP AND SUPPORT LEADERS TO LEAD IN DYNAMIC MARKETS
competency and demographic profiles
of Great Global Leaders. Ensure that development initiatives for executives in Asia are an integrated part of the
succession planning process. Reexamine your leadership development framework and
address the barriers to development of global leadership ability through the following steps:
Action Toolkit: Implementing HIPO Strengthen Leadership Capabilities Necessary for a Global LeaderGiven
Crucible Roles, the scarcity of qualified leaders, focus on developing competencies including team
CLC Human Resources, building, communication, enterprise vision, problem-solving, and strategic thinking
This action toolkit provides guidance throughout an individual's career.
on implementing crucible roles as a
part of a HIPO development strategy. Accelerate Leader Development Through International Assignments and
Crucible Stretch RolesNext-generation executives across Asia typically trail their
Raising Successor Awareness of
Transitional Challenges,
global peers in years of experience. Accelerate their development by offering
CLC Human Resources, international exposure combined with high-impact, "crucible" experiences: business-
This implementation guide illustrates critical positions that require important decisions and in which a rising leader can gain
how to leverage information gained global exposure through rapid on-the-job learning.
during recruitment to address
executive development from the outset Align Support for Leaders in TransitionLeaders who succeed in challenging
and provide resources critical for stretch roles rarely do so alone. Provide effective support systems by ensuring access
long-term success in new roles. to a supportive network of managers and peers, reinforcing team successes over
individual accomplishments, and balancing performance incentives by protecting
leaders from the negative effects of failure, especially the impact on future career
opportunity.

SUCCESSION SUCCESSION PLANNING ABSENT FOR BOARD OF DIRECTORS

MANAGEMENT
While many organizations understand the importance of a well-developed, long-term
succession plan, only 54% of organizations manage succession planning for their boards of
directors. Although 66% of directors believe that board succession planning is an important
best practice, 46% of organizations do not conduct this process.
Percentage of Organizations that Conduct Succession Planning for the Board of

Directors
No
46% Yes
54%
Source: Corporate Board of Directors Survey, Stanford University, 2011.
The absence of a succession plan leads to significant search-and-replacement costs and

higher new hire compensation. Organizations must base succession decisions on the
RECOMMENDED evolving needs of the organization and align talent capabilities and executive roles with
RESOURCES: strategic priorities.
UNDERS TANDING THE TREND RECOMMENDED ACTION STEPS
Business Case for Succession

Management, CREATE A STRATEGY-ALIGNED SUCCESSION PLAN FOR THE BOARD OF DIRECTORS
Stanford University,
This presentation provides data that
demonstrates the importance of To build a succession plan, engage in an ongoing review of the boards skill sets relative to
succession management for the organizations strategy and direction. Leverage director departures as opportunities to
leadership success. acquire the necessary capabilities and experience. Treat board succession as one of the
boards regular responsibilities to foster an atmosphere in which directors themselves
ADDRES S ING THE C HALLENGE recognize when it may be time to make room for individuals with much-needed experience.
High-Impact Succession Identify Critical Leadership Capabilities and Risks Based on Strategic
Management: Safeguarding Critical
PrioritiesIdentify critical positions and leadership capabilities across the
Business Capabilities,
CLC Human Resources, organization that directly impact key business factors such as revenue or product
This study identifies two principles for development.
managing vacancy risk in the
succession planning process: Evaluate Current Capabilities Against the Organizations Mid- and Long-Term
translating business strategy into StrategyAssess critical leadership capabilities and positions against the
talent strategy and planning for key organizations current and future strategic goals. Highlight leaders existing
talent departures. competency levels as board members against competencies critical in the future.
Board of Directors Succession Manage Transitions of External and Internal Candidates to Avoid Common
Management Dashboards (Duke FailuresEnable board members to be successful by providing transition support.
Energy), Ensure that succession plans are updated regularly. Ensure ongoing measurement of
CLC Human Resources, key succession metrics and leader capabilities.
This case study profiles Duke Energy's
two succession management
dashboards that help the executive
team manage succession risks.

COMPENSATION AND MAJORITY OF ORGANIZATIONS INCREASED USE OF RETENTION BONUSES IN

BENEFITS PAST TWO YEARS
More than half of organizations indicate that they are using retention bonuses more frequently
in the past 2 years than they had beforeonly one in twelve indicates retention bonus use has
decreased. Many organizations cite increasingly tight labor markets or increased M&A and
organizational redesigns for their use of retention bonuses. However, even in the absence of
these factors organizations are frequently making use of retention bonuses to retain their top
performers, employees critical to specific projects, and experts with specialized skills.
Recent Retention Bonus Use
Use of retention
bonuses has
decreased in
the past 2 years,
8% Use of retnetion
bonuses has
increased in the
past 2 years,
56%
Use of retention
bonuses has
stayed constant
in the past 2
years, 36%
Source: 2011 Retention Bonus Survey, CLC Compensation.

RECOMMENDED
STRUCTURE A CHOICE-BASED RETENTION GRANT PROCESS
RESOURCES:
Organizations can maximize the impact from offering retention grants to critical employees
ADDRES S ING THE C HALLENGE by using a simple choice-based retention grant process. This process ensures that the
organization receives the "return" it needsin terms of retaining its critical talentfor the
Choice-Based Retention Grant resources it invests in its grant program.
(Gamma Financial),
CLC Compensation, Identify Critical TalentProvide a list of the top employeesthose with the highest
This case profile shows how Gamma levels of potential and contribution based on the annual talent assessmentto
Financial structures a simple choice- business leaders for review; business leaders then adjust the list based on a number
based retention grant for the most
of factors, including which employees were most critical to their groups success,
critical employees and uses grant
conversations as an opportunity to
recognize recipients. Design Value-Based Grant ChoicesWhile designing retention grant choices,
Additional fees required for non-CLC consider value to the organization in terms of employee retention, as well as the
Compensation members to access. expected risk and payout value from the employee perspective. Consider lengthening
Retention Bonus Policy,
the vesting period as the payout value of grant choices increases.
This sample company policy provides Use Grant Conversations to Recognize EmployeesPrepare senior leaders to use
guidelines for offering retention the conversation as an opportunity to maximize the impact of communicating the
bonuses. grants.

COMPENSATION AND MORE THAN 50% OF ORGANIZATIONS PLAN TO INCREASE EMPLOYEE

BENEFITS CONTRIBUTIONS TO HEALTH CARE PREMIUMS
Large U.S. employers are planning to have employees share more of increasing health care
costs by increasing the percentage that employees contribute to premiums and by increasing
in-network deductibles. Fifty-three percent of employers plan to increase the percentage that
employees contribute to health care premiums, making it the most common cost containment
strategy.
Prevalence of Health Care Cost Sharing Strategies
60%
53%
39%
Organizations
Percentage of
30%
23% 22%
0%
Increase the Increase in-network Increase out-of- Increase out-of-
percentage that deductibles network deductibles pocket maximums
employees
contribute to
premiums
Source: Survey Report, National Business Group on Health.
RECOMMENDED REDESIGN PLANS TO CUT COSTS

RESOURCES:
Organizations can use the following step-by-step methodology to redesign plans which, in
turn, can help reduce overall benefits spend by 5% without decreasing employee value:
ADDRES S ING THE C HALLENGE Step 1: Determine the Magnitude of Cost Cutting NeededEvaluate whether a
strategic shift is needed to attain cost-cutting goalsand if so, how big it should be.
Redesign Plans to Cut Costs, Step 2: Identify Potential Cost-Cutting Plan Changes Review data to develop a
CLC Benefits Consulting, list of plan changes that would help cut costs. Potential changes could include:
This suite of resources details a step
Changing Eligibility/EnrollmentEliminate eligibility for certain populations or encourage
by step methodology including
them to opt out of employer-sponsored coverage.
associated inputs and activities to
redesign health care benefits costs in Rationalizing PlansChange, consolidate, or eliminate plans to reduce administration
a way that it reduces overall health costs and push employees toward less costly options.
care cost spend. Step 3: Finalize the List of Plan Changes Vet the initial list of possible plan
Additional fees required for non-CLC changes to narrow it down to the best candidates for cost cutting.
Benefits members to access. Step 4: Assess the Potential for Vendor Cost Savings Examine whether
'demand-side' cost-cutting through plan design changes can be supplemented with
Ten Things You Need to Know
'supply-side' solutions that reduce vendor spend.
About Health Plan Design,
CLC Human Resources, Step 5: Finalize Pricing and Coverage Work with Finance and actuaries to review
This preview of a CLC Benefits study vendor-provided pricing and coverage assessments.
highlights the ten most important Step 6: Manage Open Enrollment Kick off and oversee the open enrollment
things you should keep in mind when process, including communicating with employees.
creating or modifying a health care Step 7: Track Progress toward Goals Monitor performance against key cost-
plan design. cutting metrics.
COMPENSATION AND DECLINING TREND CONTINUES IN PER-EMPLOYEE COMPENSATION SPEND

BENEFITS
Fifty-eight percent of HR executives anticipate an increase in average per-employee
compensation spend over the next 12 months, down from 79% in Q1 2011. Further, the
number of executives that expect a reduction in compensation spend has increased from 5% in
Q1 to 12% in Q4. This trend reflects expectations that the economy will remain sluggish,
requiring compensation functions to adapt.
HR Executives Anticipated Changes in Average Per-Employee Total Compensation

Across the Next 12 Months
Increase No Change Decrease

80%
Percentage of HR Executives
40%
0%
Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011
Source: HR Barometer, CLC Human Resources, 2011
RECOMMENDED
RESOURCES:
ADDRES S ING THE C HALLENGE RECOMMENDED ACTION STEPS
Compensation and Benefits Topic ADAPT TO CHANGING MARKET CONDITIONS WHILE CAREFULLY MANAGING PAY EXPECTATIONS
Center: Compensation Design,
CLC Human Resources, Organizations must be prepared to deal with situations outside of their control that limit
This suite of resources provides positive changes to compensation. They should ensure that employee pay perceptions
guidance on designing compensation
plans that support organizational
are not misaligned with reality (e.g., expecting pay increases while business conditions
strategy and drive employee attraction, require cuts or freezes). All organizations should take the following steps to
retention, and performance. simultaneously address changing conditions and set the right pay expectations among
employees:
Managing Through Change and
Uncertainty Topic Center, Collect, Track, And Effectively Use Labor Market DataA clear understanding of
CLC Compensation, market trends and conditions ensures pay strategy and communications align with
This suite of resources provides business strategy.
guidance on tailoring pay and pay
communications to changing or
uncertain conditions to combat their Communicate About Pay During Times Of ChangeCommunications delivered
effect on fairness perceptions, during times of change can have nearly double the impact on fairness perceptions of
employee effort and retention. pay communications delivered during more "ordinary" circumstances.
Additional fees required for non-CLC
Compensation members to access. Reach Out Directly to EmployeesA majority of employees feel that they don't get
enough compensation information from their employers. Particularly when the
economic condition is unstable, compensation teams should share more information
more frequently.

COMPENSATION AND SMALL DECLINE IN EXECUTIVES ANTICIPATING RISING HEALTH CARE COSTS
BENEFITS
Fifty-two percent of HR executives expect health care costs to increase, down from 59% last
quarter. Additionally, there has been a 2% increase in executives anticipating a decrease in
health care costs, rising to 9% in Q4 from 7% in Q3.
HR Executives Outlook on Average Per-Employee Health Care-Related Costs

Across the Next 12 Months
Increase No Change Decrease
70%
Percentage of HR Executives
35%
0%
Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011
Source: HR Barometer, CLC Human Resources, 2011.
Lack of certainty around the reforms effect on cost contributed to a larger number of
executives anticipating an increase back in Q4 2010. As the 2011 provisions for the Health
Care Reform have been met, costs have started to stabilize, leading to fewer executives
anticipating increases.
RECOMMENDED RECOMMENDED ACTION STEPS

RESOURCES:
REDUCE HEALTH CARE COSTS BY PROMOTING HEALTHY BEHAVIORS
While most organizations focus on getting employees to participate in wellness programs,
Wellness Communications few think about influencing employees to adopt long-term, sustained healthy behaviors.
Troubleshooting Checklist, An average organization can save up to $6,000 per employee over a three-year period
CLC Human Resources, through the following steps:
This checklist provides guidance on
evaluating the overall effectiveness of
wellness communications as part of an Carefully Collect Workforce Health Risks and Turnover DataHealth risk and
integrated health and wellness turnover data can determine up to 80% of the impact of wellness programs on
strategy. employees.
Health Care Cost Containment Use Effective Communication Tactics and Program Designs, Such as
Topic Center, Facilitating Two-Way Communication and Optimizing Program DesignWell
CLC Benefits, designed programs and strategies encourage employees to adopt healthy behaviors.
This topic center will help you
understand the drivers of health care
costs and various strategies to Leverage Senior Leaders and Line Managers to Communicate About Healthy
manage those costs. BehaviorsLeader communication helps develop a broader culture of wellness and
Additional fees required for non-CLC helps employees see wellness as not solely a benefits function initiative.
Benefits members to access.

RECRUITING TARGETING PASSIVE CANDIDATES A TOP PRIORITY

Passive candidates that join the organization perform 9% better and are 25% more likely to stay.
As a result, nearly half of executives consider finding passive candidates for current and future
requisitions a top priority. Subsequently, many executives are restructuring their sourcing activities
to achieve that goal. More than half of organizations are increasing sourcing automation, nearly
half are specializing their sourcing activities, and one-in-five are outsourcing their sourcing function.
Recruiting Executives Restructuring Sourcing to Find More Passive Candidates
Percentage of Recruiting Executives Percentage of Organizations

Listing Passive Candidates as a Restructuring Sourcing Activities
Priority
56%
46%
47% of recruiting 20%

executive consider
finding passive
candidates as a
priority
Increasing Specializing Outsourcing
Sourcing Sourcing Sourcing
Automation Activities Activities
Source: Recruiting Executive Survey, CLC Recruiting, 2011.
Restructuring the sourcing function can result in gained efficiencies; passive candidates represent
two-thirds of a typical specialized sourcers hiring mix, whereas passive candidates only represent
one-third of a typical recruiters hiring mix. As a result, recruiting executives are retooling recruiters
and sourcers to target passive candidates through restructuring and specializing sourcing
activities.
EQUIP YOUR RECRUITING TEAM MEMBERS TO TARGET PASSIVE CANDIDATES
Passive candidates have comprised an increasing percentage of the labor market over the
RECOMMENDED last five years, and that trend continues to grow. Prepare your recruiters and sourcers to
RESOURCES: source intelligently in order to generate, target, and acquire more passive leads.
Prioritize RequisitionsNearly 7 in 10 sourcers treat each requisition equally;

ADDRES S ING THE C HALLENGE however, those who prioritize requisitions realize an 11% increase in quality of slate.
Sourcers who fail to prioritize their requisitions have less bandwidth for higher priority
Recruiter Effectiveness Academy 2: requisitions, and as a result are less capable of finding the best passive candidates.
Reaching Deeper into the Labor
Market,
CLC Recruiting, Focus on the Pitch, not Just the RelationshipMost recruiters and sourcers focus
This e-learning module teaches you primarily on developing a relationship with potential candidates. Befriending
how to source high quality candidates prospects, however, results in an 18% decrease in quality of slate. Conversely,
quickly by reaching deeper into the sourcers who provide credible information about the requisition and personalize the
labor market. opportunity positively impact the prospects likelihood to respond to the sourcers
Additional fees required for non-CLC outreach (by 7% and 6%, respectively).
Recruiting members to access.

RECRUITING STRUCTURE INFLUENCES SOME TALENT ADVISOR CAPABILITIES

The degree to which recruiting functions are centralized has no impact on overall recruiter
performance; however, structure does influence some talent advisor capabilities. Talent
advisor capabilities consist of fourteen recruiter capabilities that drive a recruiters strategic
effectiveness, including lead generation, candidate interaction, and hiring manager persuasion.
Those in centralized recruiting teams typically display greater proficiency in general business
acumen and firm-wide talent strategy knowledge, whereas those in blended (partially
centralized/ partially decentralized) recruiting teams are more proficient in labor market
expertise due to their closer proximity to the market.
Percentage of Staff Proficient in Talent Advisor Capabilities within Centralized/Blended

Recruiting Functions
81%
66%
62%
54%
49%
38%
General Business Acumen Firm-Wide Talent Strategy Labor Market Expertise

Knowledge
Centralized Blended
Source: Recruiter Survey, CLC Recruiting, 2011.
If restructuring is not an option for your recruiting function, focus on developing your recruiters
talent advisor capabilities. To build talent advisor capabilities, organizations must define the
talent advisor capabilities that matter most for the recruiter, leverage development to build
around those capabilities, and maximize the impact of recruiting managers in building those
capabilities.
DEVELOP TALENT ADVISOR CAPABILITIES TO COMBAT STRUCTURAL CONSTRAINTS
RECOMMENDED Although structure plays a minimal role in proficiency in some talent advisor capabilities,
RESOURCES: the best recruiting teams can overcome those structural forces to develop their recruiters
talent advisor capabilities.
ADDRES S ING THE C HALLENGE Orient Recruiters/Sourcers around IntelligenceRecruiters/sourcers who leverage
intelligence to source more strategically and efficiently generate higher quality slates
Talent Advisor Development Self- and exert greater business influence.
Assessment,
CLC Recruiting, Train Recruiters on Firm-Wide Talent StrategyShare the firms overall talent
This self-assessment helps recruiters
strategy with recruiters to ensure that they are aware of their role and the
determine which out of the fourteen
Talent Advisor capabilities he or she organizations overall strategy for finding, engaging, and acquiring talent.
has the greatest opportunity to
develop. Use Nonobvious Resources to Gather Labor Market IntelligenceConsider the
Additional fees required for non-CLC nonobvious means by which you can gather market intelligence using current
Recruiting members to access. resources. Greater labor market expertise improves quality of slate and business
influence.

RECRUITING MANY RECRUITING EXECUTIVES ANTICIPATE INCREASED TOTAL HIRING

VOLUME IN 2012
Although a greater percentage of recruiting executives anticipated an increase in total hiring
volume in 2011, many organizations anticipate hiring activity will continue to climb in 2012.
Nearly half of recruiting executives anticipate an increase in their hiring volume over the next
twelve months, whereas only one-third expect a decrease in hiring volume over the same time
period.
Recruiting Executives Anticipated Change in Total Hiring Volume

Over the Next Twelve Months
4% 3% >20% Higher
6% 8%
10%-20% Higher
34%
47% 1%-9% Higher
No Change
23%
1%-9% Lower
28%
19% 10%-20% Lower
11% 8%
2% >20% Lower
2% 4%
Q4 2010 Q4 2011

RECOMMENDED
RESOURCES: Many organizations have become more stable in the aftermath of economic turbulence, and as
a result are more growth-oriented. Some recruiting teams are increasing in size to handle the
forecasted increase in requisition load; many others, however, are unable to increase staff size
UNDERS TANDING THE TREND and must leverage in-house capabilities to achieve greater efficiency
Recruiting Topic Center,
This topic center provides an overview RECOMMENDED ACTION STEPS
of research and resources addressing:
candidate interaction, candidate INVEST IN DEVELOPING RECRUIT CAPABILITIES TO INCREASE EFFICIENCY AND IMPACT
sourcing, candidate screening and
assessment, new hire orientation and Many recruiting teams are incapable of expanding their team size; as a result, recruiting
onboarding, and recruiting functional
strategy.
executives and recruiting managers must invest in developing their recruiters capabilities
and increase their overall subsequent impact on business decisions.
ADDRES S ING THE C HALLENGE Prioritize Developing Talent Advisor CapabilitiesDetermine how each of your
recruiters would benefit from developing their pipeline management and strategic
Develop Recruiters into Talent advisor capabilities.
Advisors,
CLC Recruiting, Use 360 Feedback to Track Recruiter DevelopmentLike any employee, Talent
This topic center provides strategies
and tools for recruiting managers to
Advisors require development; employ the 360 feedback process to track employees
build recruiters Talent Advisor progress in developing their talent advisor capabilities over time.
capabilities
Additional fees required for non-CLC Benchmark Recruiter Effectiveness Internally Recruiting executives should
Recruiting members to access. invest in the internal benchmarking process. Use explicit, relevant, and reliable
. metrics to determine where your team is successful, and where your team needs
further development.

TRAINING AND L&D INEFFECTIVE AT CHALLENGING THE LINE

DEVELOPMENT
The most effective sales professionals are challengersthose who use their understanding of
customers needs to teach their unique perspectives, tailor their sales messages, and take
control of the sales conversation. Sales professionals who are challengers are more likely to be
high performers than any other sales profile, making up 39% of the high performer pool.
L&D staff can learn these critical skills from challengers and incorporate them into their day-to-
day work. L&D staff must realize that learning interventions carried out by them are intricate
solutions that are custom built for specific employee segments. Therefore, L&D staff must shift
away from merely building relationships and start utilizing their learning advisor capabilities
L&D expertise, business expertise, and advisory capabilitiesto understand the lines needs,
identify the root cause of performance challenges, and lead the line to the most appropriate
solution. Currently, only 1 out of 5 L&D staff is effective at defending an outlook that could
impact business outcomes while interacting with the line.
Line Leaders Reporting Effectiveness of L&D Staff at Defending a Point of View That
Could Impact Business Outcomes
Effective or
Very
Effective,
18%
RECOMMENDED
RESOURCES:
Selling Is Not About Relationships,

Harvard Business Review,
This article analyzes the five distinct Source: Selling Is Not About Relationships, Harvard Business Review, 2011;
profiles of sales professionals and L&D Team Capabilities Survey, CLC Learning and Development, 2011.
explains why challengers outperform
the other profiles. This article is based
on a global study of Sales
Representatives conducted by our
sister program, the Sales Executive
Council.
ADDRES S ING THE C HALLENGE ENABLE L&D STAFF TO CHALLENGE THE LINE BY ACTIVATING LEARNING ADVISOR CAPABILITIES
Preparing to Overcome Resistance Utilizing learning advisor capabilities can help L&D staff understand and leverage the
to Change, entire portfolio of individual learning interventions to boost L&Ds business impact. Follow
This research brief helps HR
the three-pronged approach explained below to activate learning advisor capabilities:
professionals prepare for the
resistance they may receive from line Build L&D Staff ConfidenceIncrease confidence by using challenging preparatory
stakeholders when introducing calls with HRBPs, guiding L&D employees on how to initiate and sustain high-impact
innovative ideas. needs assessment conversations, and reinforcing L&D employees confidence
through reflection and coaching.
Driving the Business Impact of L&D
Staff, Manage Expectations ProactivelySet clear expectations with the line regarding
CLC Learning and Development,
This study provides guidance on how
course content and delivery mechanisms early in the learning intervention design
L&D can improve its credibility with the process in order to manage business impact expectations.
line by using a consultative, inquiry-
based approach that capitalizes on the Utilize Collective KnowledgeImprove credibility with the line by asking essential
teams collective knowledge. questions about learning needs and leverage the collective knowledge of the L&D
Additional fees required for non-CLC team to improve the business impact of learning interventions.
Learning and Development members
to access.

TRAINING AND L&D SHIFTS FOCUS TO INVESTMENT PRIORITIZATION

DEVELOPMENT
Only 47% of L&D functions are adjusting their budgets in response to the current economic
environment compared to 67% who made adjustments during the economic crisis in 200809.
Instead, nearly two-thirds of L&D functions are reprioritizing their investments to focus on
critical talent segments, such as HIPOs and senior leaders, in order to leverage human capital
as a strategic differentiator to drive organizational growth.
L&D Staff Indicating Their L&D Functions Response to the Economic Volatility in 2011
80%
63%
60%
54%
47%
Percentage of
40%
L&D Staff
0%
Adjusting the L&D Leveraging low-cost Reassessing L&D Reprioritizing L&D
budget in 2011 learning solutions in strategy in 2011 investments in 2011
2011
Source: Quick Poll, CLC Learning and Development, August 2011;

2009 State of the Industry Report, American Society for Training and Development, 2009;
Agenda Poll, CLC Learning and Development, September 2011.
L&D functions are following the right path by focusing on fine tuning L&D investments and
strategy to maximize the business impact of L&D interventions. This approach leads to the
delivery of cost-effective, high-impact learning interventions to the line resulting in both short-
and long-term benefits. L&D functions that only adjust budgets in response to economic
uncertainty may create short-term savings but miss out on creating long-term advantages for the
organization.

RECOMMENDED PRIORITIZE LONG-TERM STRATEGIC OBJECTIVES OVER SHORT-TERM SAVINGS
RESOURCES:
A sound L&D strategy is driven by the strategic goals of the business and designed in the
context of how the L&D function can most effectively support those objectives. Use the
ADDRES S ING THE C HALLENGE guidelines below to create an effective L&D strategy that will help your L&D function meet
long-term objectives:
Aligning Learning and Development
with Organizational Goals,
CLC Human Resources, Collect Critical Insights from the LineCollaborate with key line leaders and
This research brief draws on several HRBPs in order to understand and identify ways in which the L&D function can
case examples from AT&T Learning to provide value to the line.
explain how organizations can
integrate L&D with the overall Fulfill L&Ds Change Management MandateLeverage the L&D function to train
business strategy. employees on managing change and provide learning interventions to engage and
retain critical talent.
Implementing an L&D Strategy,
This action toolkit provides end-to-end Assess the Strategic Value of L&D InterventionsRethink investment prioritization
guidance and ready-to-use tools for by moving beyond identifying needs to managing the demand and supply of learning.
creating a high-quality L&D strategy.
Additional fees required for non-CLC Build the L&D BrandSelect high-impact branding activities specific to your L&D
Learning and Development members function in order to convey the business impact of learning initiatives.
to access.

TRAINING AND LACK OF ACCOUNTABILITY HINDERS L&DS DEMONSTRATION OF BUSINESS

DEVELOPMENT IMPACT
More than 9 out of 10 Chief Learning Officers (CLOs) believe that they need to do more to
assess and demonstrate the L&D functions impact on business objectives. However, only
43% of CLOs report that L&D functions are held accountable for their impact on organizational
performance, and even fewer L&D staff (22%) are evaluated against business outcomes.
Heads of L&D Agreeing with Statements about the L&D Function and Staff
100% 92% 91%

Percentage of
Heads of L&D
50% 43%
22%
0%
L&D needs to do more L&D needs to do more L&D holds itself L&D evaluates L&D
to demonstrate its to assesses its impact accountable for the staff on business
impact on business on the line's ability to impact that it has on outcomes
objectives achieve its business the organization's
objectives performance
Source: Agenda Poll, CLC Learning and Development, September 2011;

L&D Team Capabilities Survey, CLC Learning and Development, July 2011.
CLC Learning and Development research shows that only 35% of L&D staff are incented
based on their business impact, whereas a majority are held accountable for trainee
satisfaction and process metrics. Organizations should instead focus on incorporating
RECOMMENDED accountability for business impact into L&D staff performance reviews in order to improve their
critical partnering behaviors and increase the lines perception of L&D effectiveness.
RESOURCES:
FOCUS ON ACCOUNTABILITY DURING PERFORMANCE MANAGEMENT DISCUSSIONS FOR L&D STAFF
Building the High-Performance
Workforce: A Quantitative Analysis The majority of L&D staff are held accountable only for driving learner satisfaction and
of the Effectiveness of Performance delivering highly-rated L&D programs rather than impacting the business they support.
Management Strategies, Use the steps provided below to embed accountability into the performance management
This study provides guidance on
strategy for your L&D staff:
identifying the key activities the
organization, managers, and Prioritize Behaviors That Drive Business ImpactConsider impact and partnering
employees should engage in to measures more heavily than L&D program and process administration measures in a
maximize the impact of performance L&D employees performance scorecard to focus staff on the activities and behaviors
management activities. that matter most to driving business outcomes.
PepsiCo's L&D Impact and Obtain Client Feedback on L&D EffectivenessGo beyond client feedback on
Influence Scorecard,
program satisfaction to collect feedback on L&D employees ability to build
This resource examines how relationships and influence decisions.
organizations can hold L&D staff
accountable for driving business Reinforce Key L&D BehaviorsUtilize ongoing coaching and performance reviews
impact through performance to help L&D staff and their managers focus on the behaviors and activities that matter
measures. most to business impact.
Additional fees required for non-CLC
Learning and Development members
to access.

TRAINING AND INCREASES IN TRAINING INVESTMENT SLOW

DEVELOPMENT
More than 30% of polled organizations plan to increase their training budgets in Q4, while 25%
of organizations are reducing training budgets. The percentage of organizations that plan to
boost training investments has fallen 12 percentage points since Q4 2010 while percentage of
organizations anticipating a decline in training investment has increased by nine percentage
points.
The percentage of organizations reporting no changes in training investment has remained

constant on a quarter-over-quarter and year-over-year basis, with 42% of organizations
reporting that their training budgets will remain stable in Q4.
L&D Executives Anticipated Change in Average per-Employee
Training Spend Over the Next Twelve Months
2% 2%
4% 5% >10% Higher
24% 5%-10% Higher

37%
1%-4% Higher
43% No Change
40%
1%-4% Lower
16% 5%-10% Lower

9%
4% 7%
4% 3% >10% Lower
Q4 2010 Q4 2011

RECOMMENDED
RESOURCES:
MEASURE AND COMMUNICATE THE L&D FUNCTIONS IMPACT TO BOOST TRAINING INVESTMENT
ADDRES S ING THE C HALLENGE L&D executives must highlight the strategic impact of learning interventions to reinforce the
business case for increasing organizational investment in training. In order to effectively
Develop an L&D Strategy, communicate the benefits of learning investments, L&D teams should adopt the following
imperatives:
Access the Measure Metrics that
Demonstrate Impact section of this
topic center to learn how you can Expand Measurement Efforts Beyond Program AnalysisInclude operational,
identify and track metrics to report the organizational effectiveness, and leadership metrics in L&D dashboards to drive
L&D functions performance and discipline in managing the learning function.
business impact.
Align Metrics with Core Business Decisions and ObjectivesIdentify metrics that
Training Effectiveness Dashboard, capture L&Ds integration with core business objectives to improve L&Ds alignment
with business strategy.
Utilize this comprehensive survey,
benchmarking, and analytics service to
measure learning application and the Align Measures with Drivers of Customer ValueAnalyze the drivers of customer
performance impact of L&D satisfaction and loyalty to allow L&D to employ a more customer-centric approach.
interventions.
Additional fees required for non-CLC Enable Value VisualizationDevelop communication tools that demonstrate L&Ds
Learning and Development members alignment with business objectives to the line.
to access.

NOTE TO MEMBERS
This project was researched and written to fulfill the research request of several members of The Corporate Executive Board Company and as a result may not satisfy the
information needs of all member companies. The Corporate Executive Board Company encourages members who have additional questions about this topic to contact the
Member Support Center at CLC_Support@executiveboard.com for further discussion. The views expressed herein by third-party sources do not necessarily reflect the
policies of the organizations they represent.
PROFESSIONAL SERVICES NOTE

CLC Human Resources has worked to ensure the accuracy of the information it provides to its members. This project relies upon data obtained from many sources,
however, and CLC Human Resources cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, CLC Human Resources is not engaged in
rendering legal, accounting, or other professional services. Its projects should not be construed as professional advice on any particular set of facts or circumstances.
Members requiring such services are advised to consult an appropriate professional. Neither The Corporate Executive Board Company nor its programs are responsible for
any claims or losses that may arise from any errors or omissions in their reports, whether caused by The Corporate Executive Board Company or its sources.


CLC Next Generation S Readiness To Lead in Asia

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

CLC Next Generation S Readiness To Lead in Asia

Caricato da

Copyright:

Formati disponibili

CLC HUMAN RESOURCES

HR Quarterly News and Trends, Q4 2011

EMPLOYEE ENGAGEMENT AND RETENTION Pages 24

EMPLOYMENT VALUE PROPOSITION Page 5

HIGH-POTENTIAL EMPLOYEES Pages 67

HR TRANSFORMATION Pages 810

ORGANIZATION DESIGN Page 11

PERFORMANCE M ANAGEMENT AND PRODUCTIVITY Pages 1213

SUCCESSION M ANAGEMENT Pages 1415

COMPENSATION AND BENEFITS Pages 1618

RECRUITING Pages 1922

TRAINING AND DEVELOPMENT Pages 2326

CLC Human Resources, Corporate Leadership Council Page 1 of 27

EMPLOYEE RISE IN DISCRETIONARY EFFORT STALLED

Percentage of Employees with High Levels of Discretionary Effort

12.8% 13.4% 13.1%

CLC Human Resources, Corporate Leadership Council Page 2 of 27

EMPLOYEE INTENT TO STAY CONTINUES TO RISE FOR FIFTH STRAIGHT QUARTER

Percentage of Employees with High Levels of Intent to Stay

Q3 2011 Quarterly Employee RECOMMENDED ACTION STEPS

CLC Human Resources, Corporate Leadership Council Page 3 of 27

EMPLOYEE EMPLOYEES UNCOMFORTABLE SEEKING PEER FEEDBACK

Agree, 41% Neutral or

Source: The Power of Peers, CLC Human Resources, 2011

Indexed Maximum Impact of Informal Feedback on Engagement Capital

Source: Building Engagement Capital, CLC Human Resources, 2011

IMPROVE INFORMAL PEER-TO-PEER FEEDBACK SKILLS

CLC Human Resources, Corporate Leadership Council Page 4 of 27

Number of Submissions Number of Interviews Number of Offers

CLC Human Resources, Corporate Leadership Council Page 5 of 27

HIGH-POTENTIAL DECLINE IN FORMAL IDENTIFICATION OF JUNIOR HIGH-POTENTIAL

Percentage of Organization with a Formal Process for Early Identification of High-Potential

UNDERS TANDING THE TREND

Match Critical, High Impact Roles to High-Potential EmployeesIdentify existing

CLC Human Resources, Corporate Leadership Council Page 6 of 27

HIGH-POTENTIAL HIPOS FIND MENTORING PROGRAMS INEFFECTIVE

Global North America Asia Central and Europe

RECOMMENDED ACTION STEPS

SECURE SENIOR MANAGEMENT SUPPORT FOR MENTORING PROGRAMS

CLC Human Resources, Corporate Leadership Council Page 7 of 27

HR TRANSFORMATION HR TECHNOLOGY SPEND INCREASES

Source: An Expansive Landscape of Service Delivery Opportunities, Towers Watson, 2011.

New HRMS 10% 2%1%

An Expansive Landscape of HR Talent Performance Systems 20% 13% 8%

ALIGN HR TECHNOLOGY INVESTMENTS TO OVERALL HR STRATEGY

CLC Human Resources, Corporate Leadership Council Page 8 of 27

HR TRANSFORMATION CFOS EXPAND REACH INTO THE HR FUNCTION

Areas of Expanded CFO Responsibility

Source: Robert Half Management Resources, 2011.

Increased CFO involvement in HR can be attributed to the growing role of HR in supporting

CLC Human Resources, Corporate Leadership Council Page 9 of 27

HR TRANSFORMATION FEWER HR EXECUTIVES EXPECT HR BUDGET INCREASES

HR Executives Outlook on HR Budgets Across the Next 12 Months

60% Increase No Change Decrease

RECOMMENDED ACTION STEPS

RECOMMENDED ASSESS BUSINESS CONDITIONS AND PRIORITIES TO DETERMINE HR INVESTMENTS

CLC Human Resources, Corporate Leadership Council Page 10 of 27

ORGANIZATION WORK IS INCREASINGLY DISPERSED ACROSS FUNCTIONS AND

Source: The Power of Peers, CLC Human Resources, 2011.

RECOMMENDED ACTION STEPS

RECOMMENDED OPEN COMMUNICATION CHANNELS BETWEEN EMPLOYEES

CLC Human Resources, Corporate Leadership Council Page 11 of 27

PERFORMANCE MOST ORGANIZATIONS STRUGGLE TO ALIGN GOALS AS WORK BECOMES