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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
Human Capital Growth
Izabela Widlak, M.S. Sr. Research Consultant
Human Capital Growth
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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
6
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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
7
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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
9
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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
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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
13
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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
14
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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
16
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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
17
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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
20
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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
Le
arnin
g Effe
ctiven
ess
21
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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
arne
r C
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
Le
arnin
g D
esign
25
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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
arnin
g D
esign
26
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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
g D
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
arnin
g D
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
g D
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
g D
esign
32
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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
me
nt
34
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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
It will address 25% of the critical talent need
It will address 50% of the critical talent need
It will address 75% 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?
C
on
tinu
ou
s Im
pro
vem
en
t
36
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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
on
tinu
ou
s Im
pro
vem
en
t
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
42
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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
r C
haracteristics
Le
arnin
g D
esign
Learn
er’s
Wo
rk En
viron
me
nt
C
on
tinu
ou
s Im
pro
vem
en
t
Le
arnin
g O
utco
me
s
Le
arnin
g Effe
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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