Using talent-management audits can improve HR's results

Using Talent-Management Audits Can Improve HR’s Results

Robert C. Preziosi

© 2008 Wiley Periodicals, Inc.Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/ert.20209

There continues to be a need for organiza-tions to address the issue of talent man-

agement. Nearly every week, I find myself ina conversation with one or more HR execu-tives about ways to hire and retain employ-ees who consistently, and positively, affectthe bottom line. Susan Meisinger, presidentof the Society for Human Resource Manage-ment, believes that replacing the skill setsthat walk out the door will be a major focusfor HR for at least another decade.1

There is no shortage of suggestions toaddress the issue. One of the more fre-quently mentioned ideas is to expand succes-sion-planning efforts. Cindy Marsh suggeststhat to prevent business disruption, key rolesfrom the executive management teamthrough lower levels should be included inan organization’s succession plan.2

Marsh’s article exemplifies what is beingwritten and discussed in the talent-management arena. The focus always seemsto be on a single tool or on a single HR sub-function. There seems to be a lack of infor-mation on strategies that can help HRimprove talent-management efforts with thebroader picture in view. HR metrics andhuman-capital analytics fill some of the gap,but they do not provide a total answer. Thisarticle is intended to help HR first assesshow the organization is doing with its talent-management efforts and then identify appro-priate actions.

WHAT SHOULD HR FOCUS ON?

The most important thing to remember whendeveloping a talent-management strategy isthat each organization’s plan will be differentbecause the challenges from industry toindustry are different. Different-size compa-nies have different models for success. Organizations are at different levels of development from start-up to mature. Anorganization’s business strategy must includea talent-management element that incorpo-rates a set of HR policies and practices thatmanagement commits to implementing. Thisallows the organization to hold itself account-able to what it believes gives it a competitiveadvantage. When accountability is in place,the organization will be in a position to mea-sure via an audit how well talent manage-ment is being addressed.

The audit model presented in this articleis organized around five components:

1. Values,2. People,3. Development,4. Systems, and5. Processes.

Each of these components is assessedusing a series of questions set forth in anaudit format. An audit format presents a sin-gle practice (or standard) in each question,

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Employment Relations Today

and questions are presented to elicit a “yes”or “no” answer. There are no Likert scales tomeasure levels of a single practice.

Each question in the audit that receives a“yes” response is followed by three examplesof actions that are consistent with activitiesin the particular organization. The threeexamples are in the areas of HR activity, line-manager action, and employee task. An orga-nization’s individual situation may make theexample a perfect behavior fit or serve as acatapult for thinking of other actions.

VALUES

The most important factor that drives behav-ior in organizations is core values. These arethe result of considering options of variousvalues and consistently acting on them. The

values are obvious in the behaviors of thepeople who share the values and accept theframework built into a set of norms and“abnorms.” In the same way, a set of normsand abnorms are developed into an approachto talent management. The following areexamples of questions that could be used forthe values component of the audit (or organi-zations could come up with their own):

❏ Is talent management considered an ongoing process?

❏ Does the organization believe that perfor-mance management, incentive management,and learning management are keys to talentmanagement?

❏ Does the organization have a model forpeak performance?

Robert C. PreziosiEmployment Relations Today DOI 10.1002/ert

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❏ Does the organization have a process fortalent-management problem solving?

❏ Is responsibility for talent managementshared between HR and line executives?

❏ Does the organization align talent-management efforts with the organiza-tion’s business strategy?

The six elements that are assessed in thevalues section of the audit are listed belowand are followed by specific actions thatwould be consistent with the organization’sactivities affecting HR, line managers, andemployees:

1. Talent Management as Ongoing Process• HR focus. Keep talent management on

every executive’s agenda.• Line manager’s role. Collaborate with

HR to ensure success in talent management.

• Employee task. Express personal needsfor talent management to supervisoron a regular basis.

2. Performance, Incentives, and Learningas Keys• HR focus. Design alternative tools for

line-manager use.• Line manager’s role. Identify which

tools will work for each employee.• Employee task. Discuss with supervisor

specific behaviors that will have highimpact.

3. Model for Peak Performance• HR focus. Develop model and getapproval

from top and midlevel executives.• Line manager’s role. Know and manage

to the model.• Employee task. Know the model and act

in alignment with it.

The most important factor that drives behavior in organizations is core values.

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4. Talent-Management Problem Solving• HR focus. Build a problem-solving

model and train for using it.• Line manager’s role. Collaborate with

HR in building the training program.• Employee task. Attend training and use

new problem-solving skills with asense of urgency.

5. Talent-Management ResponsibilityShared with HR and Line Executives• HR focus. Collaborate constantly with

line managers on all aspects of talentmanagement.

• Line manager’s role. Maintain inter-action with HR on talent-managementpriorities.

• Employee task. Know the role specificsof both your boss and HR.

6. Talent Management’s Impact on Busi-ness Strategy• HR focus. Meet with line executives

to report on successes with talent management.

• Line manager’s role. Connect businessobjectives to specific talent-managementactions.

• Employee task. Find alignment betweenbusiness objectives and personal talentdesires.

PEOPLE

This section of the audit focuses on manyaspects of the organization’s people philoso-phy. The perspective that drives the auditelements is that the qualities of individualemployees are just as important as thetasks that need to be accomplished. It iscommon knowledge that organizations tend to overemphasize filling the slotsrather than matching skill sets to individualjob requirements.

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The most important aspect of this sectionof the audit is work-life balance. Everyone isoverloaded. Caela Farren points out thatwork-life-balance strategies benefit both theemployee and the organization.3

The questions in the people section of theaudit are:

❏ Does the organization have completeknowledge about the internal workforce?

❏ Does the organization know what skillsare needed in the future workforce?

❏ Has the organization developed core competencies?

❏ Does the organization’s talent haveneeded skills and growth potential?

❏ Does the organization believe that theworkforce has the ability to deliver consis-tent business results?

❏ Does the organization have a well-devel-oped talent supply chain?

❏ Does the organization have a clearlydefined work-life-balance philosophy?

❏ Does the organization encourage people to brand themselves?Examples of actions appropriate to each

of the eight elements in the people section ofthe audit follow.

1. Internal Workforce Knowledge• HR focus. Develop an employee skills

bank for the entire workforce.• Line manager’s role. Provide correct and

current information to HR onemployee skill sets.

• Employee task. Make all skill sets knownto line managers, especially those thatare learned outside company time.

It is common knowledge that organizations tend to overem-phasize filling the slots rather than matching skill sets toindividual job requirements.


2. Future Workforce Skills• HR focus. Use business strategy to

determine overall needed skill sets.• Line manager’s role. Share with HR

the projected skill sets needed basedon specific work-unit business objectives.

• Employee task. Determine and sharegoals for future job opportunities.

3. Organization Core Competencies• HR focus. Lead efforts to identify

organization core competencies.• Line manager’s role. Assist in all data-

collection activity directed at corecompetencies.

• Employee task. Learn about core competencies and develop appropriateskills.

4. Talent Growth and Skill Potential• HR focus. Conduct ongoing assess-

ments of employee skill development.• Line manager’s role. Know every

employee’s skill set, skill development,and alignment with desired future job.

• Employee task. Speak with supervisorabout current skills and skills thatneed to be developed.

5. Workforce Delivery of BusinessResults• HR focus. Ask executives to provide

status reports on business resultsattained for each unit.

• Line manager’s role. Know eachemployee’s contribution to businessresults.

• Employee task. Discuss ways toimprove business results with supervi-sor and fellow team members.

6. Development of Talent Supply Chain• HR activity focus. Assess ability to

have internal candidates ready to move up.


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• Line manager’s role. Know which peopleare ready to move where and when.

• Employee task. Always be ready tomove to the next position.

7. Using Work-Life Balance to Retain• HR focus. Plan for and implement

work-life-balance tactics.• Line manager’s role. Encourage employ-

ees to maintain work-life balance.• Employee task. Maintain personal work-

life balance.8. Branding Talent for Success

• HR focus. Train employees on ways tobrand themselves.

• Line manager’s role. Assist employees intheir personal branding efforts.

• Employee task. Create your own brand.

DEVELOPMENT

This area of the audit focuses on ways that the organization prepares its employees for thejobs of tomorrow. It is built around the beliefthat people will stay with an organization thatchallenges them to grow. Below are the auditquestions for the development section.

❏ Does the organization use tools to helppeople manage their careers?

❏ Does the organization’s coaching strategyaid in talent management?

❏ Does the organization have a mentoringprogram to help talent grow?

❏ Does the organization tie training to per-sonal career development and businessresults?

❏ Does the organization’s performance-management system drive the managingof talent?

More than any other area of talent man-agement, this one requires deep involvement

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from employees. Total effort on their partwill get them where they want to be. Thefive elements of this section of the audit andexamples of actions that would move theemployees forward are:

1. Career-Questionnaire Use• HR focus. Deliver workshops to pro-

vide context and info.• Line manager’s role. Make certain that

employees take advantage by using thequestionnaire to gain self-knowledge.

• Employee task. Fill out questionnaireand discuss results with HR and supervisor.

2. Coaching Contribution to Talent Management• HR focus. Train supervisors to coach

for career management.• Line manager’s role. Learn and become

a better coach.• Employee task. Take advantage of your

boss’s coaching.3. Mentoring Contribution to Talent

Management• HR focus. Train interested employees

in mentoring protocols and skills.• Line manager’s role. Engage in mentor-

ing after training.• Employee task. Find a mentor and work

with that person.4. Training and Personal Career

Development• HR focus. Make sure each employee

has an annual training plan.• Line manager’s role. Hold employees

accountable for participating in training.

• Employee task. Participate in trainingand use new skill on the job.

5. Performance-Management System as aDriver of Organization Effectiveness


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• HR focus. Review semiannually theimpact of performance management asa system and set of behaviors.

• Line manager’s role. Provide feedbackto HR on use of the system.

• Employee task. Use the performance-management system as a tool forpersonal development.

SYSTEMS

The systems section of the audit helps youview talent management from the organiza-tion’s big-picture perspective. It addresses elements that are focused on an organization’sdrive to attain better talent management.

The questions included in this section of theaudit are:

❏ Does the organization use individualizedstrategies to retain talent?

❏ Does HR drive success in talent manage-ment?

❏ Does the organization use compensationin talent-management efforts?

❏ Does the organization predict the demandfor talent and skills?

❏ Does the organization’s reward systemreinforce core values?

❏ Does the organization measure the impactof its talent-management actions?

❏ Does the organization tie training to busi-ness results?

More than any other area of talent management, this onerequires deep involvement from employees.


The audit questions above strike at thebroad power of an organization’s talent-management efforts. The seven elements andassociated actions for this section are:

1. The Individualization of Talent Management• HR focus. Design alternative tools and

approaches for line-manager andemployee use.

• Line manager’s role. Identify and usethe alternative that will work best foreach employee.

• Employee task. Discuss job satisfactionwith supervisor.

2. Success in Talent Management• HR focus. Take the leadership role and

run with it.• Line manager’s role. Show HR the value

of manager involvement.• Employee task. Consult with HR and

supervisor to paint an individualizedpicture of success.

3. Role of Compensation in Talent Management• HR focus. Tie compensation plan to

both performance results and personaldevelopment plans/actions.

• Line manager’s role. Maintain a fair,equitable, and logical approach withcompensation.

• Employee task. Discuss the importanceof personal compensation with theimmediate supervisor.

4. Predictions of Demand for Talent and Skills• HR focus. Identify how scenario plan-

ning can best be used for improved tal-ent management.


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• Line manager’s role. Use scenario plan-ning for your workgroups once HR hascompleted scenario planning.

• Employee task. Build personal scenarioplans that tie into both team and indi-vidual perspectives.

5. Alignment Between Values and Rewards• HR activity focus. Check behavioral

contingencies between core values andall corporate rewards.

• Line manager’s role. Provide HR withinformation about how well theseefforts are realized.

• Employee task. Assess congruencyamong personal values, organizationvalues, and rewards.

6. Measuring the Impact of Talent Management• HR focus. Work with information tech-

nology staff to develop a talent-management information system.

• Line manager’s role. Assist HR in inter-preting the data produced by the system.

• Employee task. Keep personal log ondescribing personal reactions to the immediate supervisor’s talent-management efforts.

7. Training and Business Results• HR focus. Show how each training ses-

sion affects the business.• Line manager’s role. Discuss all training

sessions with employees, before andafter the sessions, and describe theresults expected.

• Employee task. Report to supervisor theimpact that training has had on busi-ness results.

PROCESSES

All processes can be broken down into a num-ber of ordered steps. These series of steps mustbe laid out in the open for everyone to see.

All processes can be broken down into a number of orderedsteps. These series of steps must be laid out in the open foreveryone to see.

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The questions in the last section of the talent-management audit focus on what processesshould be in place. The specific steps will varyamong organizations. Below are the pertinentquestions with attention given to outstandingemployees referred to as “high potentials.”4

❏ Does the organization manage peopletoward their aspirations?

❏ Does the organization have processes inplace to hire and grow high potentials?

❏ Does the organization engage in workforceplanning, analysis, and redeployment?

❏ Does the organization have a clear state-ment of the important components of tal-ent management?

❏ Does the organization have clearly definedcareer paths on both technical and man-agerial ladders?

❏ Does the organization use corporate com-munication to let employees know thatthey are valued?

The processes of talent management arelike road maps for all who are involved in it.If we all used them, we would end up at ourproper destinations. Below are six elementsand examples of associated actions (or differ-ent mile markers) that can help organizationsattain their goals.

1. Managing Toward Aspirations• HR focus. Train managers to have dis-

cussions with individual employeesthat focus on aspirations.

• Line manager’s role. Conduct and docu-ment career-aspirations discussions.

• Employee task. Make sure career aspi-rations are well thought out, thorough,and attainable.

2. The Hiring and Growing of HighPotentials• HR focus. Develop an approach for

identifying high potentials.


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• Line manager’s role. Use tactics specifi-cally identified for managing highpotentials.

• Employee task. Always know whetheror not you are considered a highpotential.

3. Workforce Planning, Analysis, andRedevelopment• HR focus. Review often the results

of the planning, analysis, and deploy-ment.

• Line manager’s role. Collaborate withHR to improve the results of redeploy-ment activity.

• Employee task. Ensure that the plan foryou is consistent with your personalvision and plan.

4. Components of Talent• HR focus. Work with executives to

determine what the important ele-ments are.

• Line manager’s role. Know what actionsare required to support the importantelements.

• Employee task. Know what actions are required to be a full participant in all components of talent management.

5. Clearly Defined Career Paths• HR focus. Review career paths fre-

quently to assure that they reflect thereality of the workplace.

• Line manager’s role. Make sure everyemployee knows the paths.

• Employee task. Spend time becomingfamiliar with the potential paths thatyou could be on.

The processes of talent management are like road maps forall who are involved in it.


6. Corporate Communication ShowsValue of People• HR focus. Bombard corporate commu-

nications with information onemployee success.

• Line manager’s role. Follow up with HRto ensure that the information pro-vided by the manager is being used.

• Employee task. Assert your desire to beappropriately recognized by corporatecommunications.

CUSTOMIZING THE AUDIT

This article presents a format for auditing anorganization’s talent-management efforts thatcan be easily tailored to the specific organiza-tion’s needs. The actions or behaviorsincluded under each element of the audit areintended to provide a frame of reference.Each organization, however, must ensure that


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the actions and behaviors it identifies arealigned with the organization’s culture, goals,and business strategies. Moreover, each orga-nization must determine the appropriatebehaviors to list in the audit for HR, linemanagers, and employees. This will producethe strongest audit format and the bestresults for improving talent management.

NOTES

1. Meisinger, S. (2008). Talent shortage must be met. HRMagazine, 53(5), 8.

2. Marsh, C. (2008). The succession fix. Talent ManagementMagazine, 4(6), 43–46.

3. Farren, C. (2008). Six strategies for retaining and developinggreat talent. Retrieved August 19, 2008, from http://www.masteryworks.com.

4. Parsons, G. D., & Pascale, R. J. (2007). Crisis at the summit.Harvard Business Review, 85(3), 80–89.

Robert C. Preziosi, DPA, is a professor of management and faculty chair in humanresource management in the H. Wayne Huizenga School of Business and Entrepreneurshipat Nova Southeastern University. He is a former HR director, corporate VP of training,and university administrator. He is editor of the Pfeiffer annuals on management develop-ment, author of The Leadership Road: Positive Actions that Drive Results (LluminaPress, 2009), and a frequent presenter of professional and research papers at confer-ences. He is also a leadership trainer for business and government. He may be contactedvia e-mail at [email protected].

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Using talent-management audits can improve HR's results