Trends in Talent:

Delivering competence, commitment and contribution

Dave Ulrich
dou@umich.edu
March 13, 2019
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HR value creation: What value does HR create?

High
Talent
Workforce Leaders
People Leadership
Individual
Ability

Culture
Workplace
Process
Low
Low High
Organization Capability

March: Trends in talent

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Overall Goals
Talent trends…
Ideas Impact
About latest trends for talent and how they add with How to master tools for managing talent
value to business

Why does talent matter?

Value for all stakeholders
What are trends in talent?
Competence

What are trends in talent?

Competence

What are trends in talent?

March: Trends in talent Competence
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Why talent matters

If we have better talent at our

company, what will happen?

March: Trends in talent

 Talent Outside In: 5

HR (talent) Creates Value to Key Stakeholders

Market value Reputational value

• Financial Investors/ Communities/ • Social responsibility
performance Owners regulators • Regulatory oversight
• Intangibles • Cultural awareness
• Risk

Customer share Talent Collaborative

Partners/ value
• Target Customers Stakeholders Dealers • Partnerships
customers
• Customer • Outsourcing
intimacy
Employee value/ Strategic value
Productivity Employees Line Managers • Shaping strategy
• Competence • Creating
• Commitment organization
• Contribution traction
March: Trends in talent

Talent with Boards
Compensation Requirements
In the annual proxy statement, a company must disclose
information concerning the amount and type of
compensation …and the criteria used in reaching
executive compensation decisions and the relationship
between the company's executive compensation practices
and corporate performance.
The Summary Compensation Table is the cornerstone of
the SEC's required disclosure on executive compensation.
The Summary Compensation Table provides, in a single
location, a comprehensive overview of a company's
executive pay practices.
In addition, the Compensation Discussion and Analysis
(“CD&A”) section provides narrative disclosure explaining
all material elements of the company’s executive
compensation programs.
March: Trends in talent
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Organization Committee
Executive compensation: articualting
philosophy of talent and practices in setting
standards, allocating rewards, and having
feedback; establishing a total reward system.
Talent: defining talent philosophy, practices
(competence, commitment, contribution),
results and actions
Organization: defining and building the right
capabilities, including culture, information,
customer obsession, innovation and agility
Leadership: having the right leadership
competencies for the future that build
confidence in investors
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Talent with Customers
HR domain Examples of outside in
Are we the employer of choice of employees our customers would
Staffing
choose?
Do we involve customers/investors in designing, attending, and
Training/development
delivering training and development?
Performance Do our standards for effective performance match customer or
management investor expectations?
Rewards Do we involve our customers and/or investors in allocating rewards?
Do our communication tools link employees and customers or
Communication
investors?
Have we created a leadership brand where leaders actions are tied
Leadership
to customer or investor expectations?
Culture Does our culture have the right events, patterns, and identity?

March: Trends in talent

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Talent with Investors

Categories of Confidence to
Definition Importance Assess
firm valuation (Standard Deviation) (Standard Deviation)

Consistency of financial
Firm 38.5% (15) 4.47 (.58)
results, operations, strategy,
Performance technology, R&D, etc.

Intangible assets like industry,

Intangibles strategy, brand, R&D focus, 33.1% (16) 4.33 (.66)
etc.

Quality of individual leaders

Quality of 28.4% (14)
and organization and human 3.75 (.96)
Leadership capital systems
TOTAL = 100 points
Published in CFA Magazine Jan 2012
March: Trends in talent
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Overview: Leadership Capital Index

March: Trends in talent

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Overall Goals
Talent trends…
Ideas Impact
About latest trends for talent and how they add with How to master tools for managing talent
value to business

Why does talent matter?

Value for all stakeholders
What are trends in talent?
Competence

What are trends in talent?

Commitment

What are trends in talent?

March: Trends in talent Contribution
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A Talent Formula
Talent
(productivity) =
COMPETENCE CONTRIBUTION
(ability to do the COMMITMENT
(believe and become
work) (willing to do the work)
in self and others)

Bring the right

Enact an employee • Believe: figure out
people INTO the
value proposition what brings meaning
organization, move and purpose
them THROUGH, • Become: create a
•What do I get?
and move the OUT growth mindset
•What do I give?
•Integrate

March: Trends in talent

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Talent Overview
Competence
Bringing people into, moving them through, removing them from organization

A B C
Bringing people IN Moving people THROUGH Removing and retaining key
What do we do to bring What do we do to upgrade our people
the right people into existing talent? What do we do to remove
our organization? and/or retain key people?

Commitment
Driving employee engagement through an employee value proposition

D
How do we keep our employees engaged to give their best efforts?

Contribution
E
March: Trends in talent How do we help employees believe and belong?
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Competence: Bringing People In
Competence
Bringing people into, moving them through, removing them from organization

Bringing people IN
1. Set standards: technical/social; link to strategy
2. Source candidates: social media; referrals; contingent workers
3. Screen candidate: behavioral interviews, temporary assignment
4. Secure candidate: create value proposition
5. Orient candidate: first experiences

March: Trends in talent

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Competence: Moving People Through
Competence
Bringing people into, moving them through, removing them from organization

Moving people THROUGH

6. Workforce to worktask plan: decompose jobs, include AI
7. Training & development: who, what, how, when, where
8. High potential: define criteria, invest
9. Career and promotion: focus on position, mosaic
10.Manage performance: emphasize conversation
11.Allocate rewards: financial and non financial, process

March: Trends in talent

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Competence: Removing People
Competence
Bringing people into, moving them through, removing them from organization

REMOVING people from organization

12. Retain key people: public behavior, stay interview, rehire
13. Remove right people: strategic focus, bold, fairness

March: Trends in talent

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Overall Goals
Talent trends…
Ideas Impact
About latest trends for talent and how they add with How to master tools for managing talent
value to business

Why does talent matter?

Value for all stakeholders
What are trends in talent?
Competence

What are trends in talent?

Commitment

What are trends in talent?

March: Trends in talent Contribution
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Commitment: Create employee value proposition
Commitment
Driving employee engagement through an employee value proposition

14. Create employee value proposition: give and get

15. Define and Increase employee value: VOICE
16. Track employee sentiment: active agent

March: Trends in talent

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Antecedents, Engagement, and Customer
Organization
Practices
(how the company is
sharing a vision and .27*
providing leadership)

Workforce
Engagement
Supervisory Support .18 .48* Customer
(how excited,
(how I deal with my satisfaction
energized, and
immediate supervisor)
focused I am on my
job)

.24
Work attributes
(how my job gives me Workforce engagement: What it is, what drives it, and why
opportunities to learn it matters for organizational performance
and grow) Benjamin Schneider1,2* | Allison B. Yost1 | Andrea Kropp1 | Cory Kind1 | Holly Lam1*

March: Trends in talent

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Overall Goals
Talent trends…
Ideas Impact
About latest trends for talent and how they add with How to master tools for managing talent
value to business

Why does talent matter?

Value for all stakeholders
What are trends in talent?
Competence

What are trends in talent?

Commitment

What are trends in talent?

March: Trends in talent Contribution
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Contribution: Find meaning and growth
Contribution
Helping employees find [17] believe (meaning) [18] become (growth mindset)

March: Trends in talent

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Contribution: Find meaning and growth
Contribution
Helping employees find [17] believe (meaning) [18] become (growth mindset)

March: Trends in talent

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Talent menu ****SUMMARY PAGE****
Competence
Bringing people into, moving them through, removing them from organization

Bringing people IN Moving people THROUGH REMOVING people from

1. Set standards
2. Source candidates
3. Screen candidate
4. Secure candidate
5. Orient candidate
6. Workforce plan around tasks organization
7. Training & development 12. Retain key people
8. High potential 13. Remove right people
9. Career and promotion
10. Manage performance
11. Allocate rewards

Commitment
Driving employee engagement through an employee value proposition

14. Create employee value proposition

15. Define and Increase employee value
16. Track employee sentiment

Contribution
Helping employees find [17] believe (meaning) [18] become (growth mindset)
March: Trends in talent
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Let’s stay connected!!!

For more information or follow up, contact Dave Ulrich at dou@umich.edu

@dave_ulrich

Please follow me on LinkedIn to view my regular

posts with insights and tips.

March: Trends in talent

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Questions and Answers

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Join us on

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University of Michigan Ross School of Business Executive

Education
https://www.linkedin.com/groups/1547287
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Let’s Stay Connected!!!
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on talent, leadership, organization, and HR
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October 28-November 8, 2019 program.
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Contact: Christine Fischer, Director Open Enrollment Programs
chrisfis@umich.edu
http://michiganross.umich.edu/executive-education
 Thank you
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University of Michigan Stephen M. Ross School of

Business
On behalf of the University of Michigan Ross School of
Business and Professor Dave Ulrich, thank you for attending.