Part of the CHRO Insight Series CEB Corporate Leadership Council™

CHRO Quarterly

Third Quarter 2015 

A Magazine for Chief Human Resources Officers

Mobilize Leaders to Keep New Growth Strategies (and Leaders’ Careers) on Track

The Career Path Is Dead! Long Live Careers!

The Right Way to Brand Your Organization Using Growth-Based Careers

What Successful HR Professionals Do

Creating a Compelling Employment Value Proposition

In This Issue

Career Paths

Voice of the CHRO

Deb YatesSenior Vice President of Human Resources at RB

Almost 66% of organizations will face an internal skills shortage

in the next 3–5 years.

73% of heads of HR do not plan to add management layers back

into the organization in the next 5 years.

7 out of 10 CHROs have not yet implemented a growth-based career strategy.

Today’s careers fail employers and employees.

Organizations must shift from a promotion-based to a growth-based culture that benefits both the organization and employees.

Organizational delayering has decreased the number of promotion

opportunities, limiting vertical career growth.

Design careers around experiences.

Motivate employees with employability.

Use push marketing strategies to build awarenessof internal opportunities.

Create a talent brokerage for managers to share talent.

(Make them more valuable internally and externally.)

Employees stay in role 30% longer, and 46% of transitoning

leaders underperform.

+30%

PROMOTION-BASEDTO SHIFT FROM A

GROWTH-BASED CULTURETO A

Only 30% of employees are satisfied with their future career opportunities at

their organizations.

Growth-based culture can improve employee engagement (+30%)

and reduce the likelihood of an

internal skill shortage (–20%).

© 2015 CEB Inc. All rights reserved. CLC153190GD

The pages herein are the property of CEB Inc. No copyrighted materials of CEB may be reproduced or resold without prior approval. For additional copies of this publication, please contact CEB at +1-866-913-2632, or visit cebglobal.com.

Contents

The Career Path Is Dead! Long Live Careers!

4

Mobilize Leaders to Keep New Growth Strategies (and Leaders’ Careers) on Track

8

What Successful HR Professionals Do

10

The Right Way to Brand Your Organization Using Growth-Based Careers

12

Voice of the CHRO: Interview with Deb Yates, Senior Vice President of Human Resources at RB

16

Creating a Compelling Employment Value Proposition

20

CHRO Quarterly

CEB Corporate Leadership Council™Executive DirectorBrian Kropp

Managing DirectorJen McCollum

Senior DirectorsAdam BrinegarTom Handcock

Research DirectorMatt Dudek

Research ConsultantMarianne Stengel

Quantitative ConsultantYi Kang

Senior Research AnalystBethany Horstmann

Research AnalystJohn Roman

Content Publishing Solutions Graphic DesignerMike Jurka

EditorMary McMenamin

3

Almost 66% of organizations will face an internal skills shortage

in the next 3–5 years.

73% of heads of HR do not plan to add management layers back

into the organization in the next 5 years.

7 out of 10 CHROs have not yet implemented a growth-based career strategy.

Today’s careers fail employers and employees.

Organizations must shift from a promotion-based to a growth-based culture that benefits both the organization and employees.

Organizational delayering has decreased the number of promotion

opportunities, limiting vertical career growth.

Design careers around experiences.

Motivate employees with employability.

Use push marketing strategies to build awarenessof internal opportunities.

Create a talent brokerage for managers to share talent.

(Make them more valuable internally and externally.)

Employees stay in role 30% longer, and 46% of transitoning

leaders underperform.

+30%

PROMOTION-BASEDTO SHIFT FROM A

GROWTH-BASED CULTURETO A

Only 30% of employees are satisfied with their future career opportunities at

their organizations.

Growth-based culture can improve employee engagement (+30%)

and reduce the likelihood of an

internal skill shortage (–20%).

Infographic of the Quarter

Creating Compelling Career Paths for Employees and Organizations

The New Path Forward

Register for an upcoming CEB Corporate Leadership Council™ event to learn more about creating a growth-based culture.

In-Person Meeting: ceburl.com/1kmjWebinar: ceburl.com/1kmk

4 CHRO Quarterly | Third Quarter 2015

that employees most commonly cite lack of future career opportunities as a driver of disengagement—more so than compensation or poor management.

This disengagement driver is responsible for real attrition. Employee exit surveys from more than 300 companies indicate that when it comes to career opportunities, most employees assume a job will be better at another company. Greater career opportunities are listed as the top reason employees quit their job at their current organization and accept a job elsewhere.

The New Path Forward: From Title Progression to GrowthMost HR executives are trying to shift employees’ mind-sets from narrowly focusing on the next promotion to thinking more holistically about growth and how they are building new skills. To make sure this growth is tailored to each employee, organizations have simultaneously embraced the idea of employee career ownership. But this approach often fails to achieve talent goals for four reasons:

• Employees may not necessarily pursue career choices that build the capabilities the organization needs for the future.

• Employees lack visibility into opportunities across the organization.

• Employees are sceptical that growth-based careers are rewarding.

• Managers often do not support letting their best employees move to other roles in the organization. (Talent hoarding, anyone?)

Today’s careers fail employers and employees. Learn how to breathe new life into defunct career paths.Traditional career paths—defined by stable, vertical advancement—are a relic of the past. Years of low turnover and organizational delayering have reduced upward mobility and

lengthened the average tenure in a position by more than 30% since 2010. Lateral career moves have become more prevalent, but they are less satisfying to employees.

Overall, ineffective career manage-ment poses a significant risk at the organization level: the failure

to develop needed capabilities. In fact, 6 out of 10 heads of HR foresee an internal skills shortage in the next three to five years—largely due to a lack of career paths that align employees with the organization’s needs.

Overcoming this skills shortage can pay off generously: CHROs who can eliminate such shortages can generate an additional 5%–8% annual increase in revenue and profit.

The lack of effective career management not only creates an organizational capability problem but also is one of the largest pain points employees feel. After analyzing hundreds of employee engagement survey results, we determined

The Career Path Is Dead! Long Live Careers!

Only 30% of employees are satisfied with their future career opportunities at their organization.

5

Creating Compelling Career PartnershipsCHROs should aspire to create career partnerships, which requires balancing organization- and employee-directed careers. Career partnerships align employee interests with organizational capability needs, creating reciprocal value that improves employ-ee career satisfaction while building the skills that organizational strategy requires. Organizations should pursue four strategies to create career partnerships.

1. Design careers based on experiences, not positions.

Many CHROs tell us their new career maps are outdated as soon as they’re finalized. And why wouldn’t they be, given the prevalence of organization change and uncertainty? It’s simply unrealistic to perfectly lay out employees’ future careers in a state of seemingly constant flux.

In addition to the challenge of environmental factors, career design must be prescriptive (to help employees evaluate possible career moves) but flexible (to allow new roles to be added, killed, or evolved to flex with organizational change). To account for this, HR must design careers based on experiences that build current and future capabilities—not on positions on an organizational chart.

National Grid, in the United Kingdom, adopted this approach to develop the capabilities it needed for its long-term elec-tricity and gas business. First, it developed career maps by identifying which roles disproportionately helped achieve different growth scenarios. Then, senior leaders and position holders (including past) assessed which experiences were most

critical to success in the role. Armed with that information, HR mapped out where those experiences could be gained, either in lateral connector roles or through other opportunities that do not require role moves.

Mike Westcott, Global Human Resources Director at National Grid, found that career maps develop necessary skills as well as encourage employees to consider lateral moves. He says, “They lay out a simple route map for people and show that working in a different part of the business will give you a huge set of skills that will be very useful to prepare you for critical roles.”

2. Use push, not pull, marketing strategies to build awareness of internal opportunities.

Most internal career marketing strategies flounder. Need proof? Consider the discrepancy between the number of career opportunities HR believes is available and the number that employees see. Two-thirds of employees say finding other career opportunities is difficult at their organization. Because of this perceived difficulty, employees usually first look outside their organization when they want a new opportunity.

This external job search is partially due to the “pull strategies” (e.g., online job boards, networking opportunities) that most

Career partnerships reduce the likelihood of an internal skills shortage by 20% and increase employee career satisfaction by over 30%.

6 CHRO Quarterly | Third Quarter 2015

Longer Runs

Employees stay in role 30% longer, limiting the breadth of their growth or prompting them to make lateral or external transitions out of desperation.

Taking transparency a step farther, HCL Technologies, an Indian technology company, created its “Career Connect” portal, where employees can explore jobs guided by their manager and experts from across the organization. These experts show employees which capabilities the business values most. Employees then log the jobs they are interested in.

This portal has proven useful to the company, as it operates in a very competitive talent market. When its software engineering function needed 50 technical architects in a niche domain area, the business turned to its Career Connect portal to identify employees with related aspirations. It then contacted these employees and accelerated their development in the area. As a result, the business developed 31 technical architects in less than six months. HCL’s head of Career and Talent, Lakshminarayanan Vaidyanathan, says, “By channeling employee aspirations toward the skill sets we require for future growth, we have been able to provide the business with niche skills that are expensive and difficult to find in the external market place.”

3. Motivate employees with employability, not title progression.

Employees don’t believe that growth matters more—professionally and personally—than promotions. Promotions are tangible proof of the value employees add or create; they can easily be shared via professional networking sites to show

organizations rely on to place internal applicants. Pull strategies don’t effectively target potential internal hires; most employees don’t look at jobs internally, or they find their organization’s tools difficult to use and navigate.

Aware of this approach’s limitations, progressive organizations use push, not pull, strategies that communicate targeted internal opportunities to employees, building their awareness of future jobs even before they actively seek out a new opportunity.

Making the internal labor market as efficient as the external one

UnitedHealth Group, a US health care company, found a simple way for all employees to indicate interest in positions as they advance in their careers. Its “Raise Your Hand” online tool lets employees indicate interest in up to three positions, even if they are not yet open.

This information is sent directly to the talent acquisition team, giving them direct visibility into the talent pipeline and allowing them to suggest positions to employees when opportunities open up. Richard Hughes, senior vice president of UnitedHealth Group, says the tool “creates transparency into internal candidates for the organization and transparency into career opportunities for employees.”

Push strategies increase career satisfaction by 33%.

Tenuren = 8,550.Source: CEB 2015 Careers Employee Survey.

Job

Co

mp

lexi

ty

Upward Transition

Lateral TransitionTraditional Careers

Today’s Careers

Job Complexity by Tenure

Steeper Rises

In flatter organizations, upward transitions are more complex. About half of transitioning leaders—46%—underperform during the course of their transition.

7

this approach doesn’t create the movement organizations want. For maximum effect, progressive CHROs have realized that they instead need to enable managers to share talent through a talent brokerage.

One of our members, a global engineering organization, provides managers information about skills, not just people, in other parts of the organization. Each manager builds a skills portfolio of his or her team by identifying critical skills and assessing employees for their mastery of it. Gaps and risks in each skill portfolio are discussed during talent reviews, which increases not only manager self-awareness of the skills at risk but also transparency. Knowing what skills exist throughout the organization lets managers find just-in-time skills.

What Should CHROs Be Doing Now?Leading heads of HR need to transform career management and chart a new path forward for their organizations and employees—one that focuses on growth, not promotions. This approach will increase career satisfaction, reduce strategic talent gaps, and grow the bottom line.

Working with key stakeholders—from the executive leadership team to frontline managers—helps CHROs execute the four strategic shifts that are necessary to creating credible and sustainable career partnerships.

Discuss these three action steps at your next HR leadership team meeting to start building momentum for career partnerships within your organization:

• Create a business case combining your organizational data (e.g., engagement, tenure, promotion rates) with the data in this article to highlight the urgency for building career partnerships now.

• Audit and edit your current career management processes (e.g., career conversations, career aids, succession conversations) and resources to emphasize employee–organization career partnerships.

• Engage employees and coach managers (e.g., through manager trainings, leadership communications, talent reviews) to change the career culture from the top-down, away from promotions to growth.

progression, and they are usually accompanied by larger pay increases.

But offering promotions to attract or retain talent isn’t feasible for all organizations. Opportunities for title progression are particularly limited in flatter organizations.

The key to securing employees’ buy-in for growth requires showing them how it improves their employability, meaning their internal and external value or marketability. By focusing on employability, the organization is making a credible commitment to employee development, which can increase employees’ career options (i.e., when and where to go, whether inside or outside the organization).

Taking this approach and building a strong employer–employee relationship can increase employees’ career satisfaction by 22%. Counterintuitively, when employees feel that their organization has made this credible commitment, their intent to stay is actually 21% higher.

Two ways to motivate with employability

For employability strategies to work, organizations need to set explicit expectations with employees to clarify the value they will bring to the organization and the value they will receive in return. LinkedIn’s “Tours of Duty” exemplify this approach.

At the outset, LinkedIn explicitly communicates the project employees will complete, the impact they will have, and the skills they will gain. Sample projects could include building a new product, leading a marketing campaign, or reworking an existing business process. This upfront agreement holds the organization accountable for demonstrable improvements in an employee’s market value. In the words of Reid Hoffman, LinkedIn’s co-founder, “Employees invest in the company’s adaptability; the company invests in employees’ employability.”

After establishing expectations, organizations should show employees the value of their growth, internally and externally. HR should provide managers with tools to discuss an employee’s likelihood of progression within the organization (e.g., average promotion rates) and external labor market information (e.g., compensation benchmarking, common external destination positions of leavers). This degree of transparency may seem unprecedented, but providing this level of information will create greater trust and is necessary for employability strategies to work.

4. Prompt managers to share talent by creating a talent brokerage, not just by setting expectations.

Manager openness to move talent in and out of their teams is a necessity to make lateral, less rigid careers work. Many organizations make talent sharing an expectation for managers, often by using talent export MBOs. However,

Improving employees’ employability or market value increases their intent to stay by 21%.

When managers feel that talent sharing aligns with their interests, the number of managers willing to share talent increases by 16%.

CHRO Tip for ManagersCareer Risk Triggers:

Time career conversations so they take place when the topic is top of mind for employees, not just when they are required by formal HR processes.

Occasions That Trigger Job-Search Activity:

• Change in manager or responsibilities

• Major gathering of friends/classmates

• Birthday

Use Your Membership to Create Career Partnerships• Contact your account manager to assess

career management at your organization and to build your own custom plan.

• Attend one of our events (live meetings or webinars) on The New Path Forward to hear how your peers are addressing these challenges.

8 CHRO Quarterly | Third Quarter 2015

Mobilize Leaders to Keep New Growth Strategies (and Leaders’ Careers) on Track

Chief strategy officers (CSOs) need HR’s help. Investors and analysts are exerting significant pressure on the entire executive team—and CSOs in particular—to drive new growth. They want to see strategic plans that capitalize on low interest rates and on many organizations’ strong cash positions. In fact, financial analysts expect S&P 500 companies’ top-line growth to jump from 1.1% in 2013 to just over 5% by 2016.

Chief strategists have worked with CEOs to draft new growth plans, but most organizations will fail to realize these strategies. According to a study cited in The Economist, 61% of strategies dramatically underperform.1 The root cause is not flawed ideas or poor planning but fundamentally poor strategy execution throughout the organization, which CSOs alone cannot fix.

The CHRO–CSO Partnership Opportunity: Mobilizing Leaders to Pursue New Growth Our research reveals that the companies most successfully executing new growth strategies have one factor in common: they can quickly mobilize leaders at all levels to support rapidly changing and dynamic corporate strategies. These leaders then mobilize the organization by achieving the highest levels of employee alignment and effort needed to overcome operational inertia—the result of prior practices and systems becoming “locked in.”

In practice, leaders with the best track records for resisting operational inertia regularly reallocate financial assets, technology, talent, time, and (critically) their mental capacity to execute new growth strategies. Unlocking all this trapped organizational capacity pays off substantially. More powerful than achieving manager buy-in and understanding strategy, unlocking sufficient managerial capacity for new growth boosts the success of strategy execution outcomes by 31%.

A productive CHRO–CSO partnership can combine each executive’s respective expertise in managing talent and planning to achieve these execution outcomes. Their success

hinges on targeting three key leadership levels: the CEO and the executive leadership team, the business line and functional heads, and frontline managers. Each group’s response enables and empowers the next, unlocking capacity throughout the organization and fully mobilizing it to execute against the new growth strategy.

Three Steps to Mobilizing Leaders and Unlocking Organizational Capacity for Growth

1. Pre-mobilize leaders through better succession planning.

Waiting to mobilize leaders until after the strategy is defined is a losing battle. Succession management is a critical opportunity to pre-mobilize leaders by deeply embedding strategic alignment in the way successors are identified, developed, and deployed.

However, not all senior leaders are prepared to spearhead new growth strategies; most have been groomed through a long-term succession pipeline that prepared them to continue yesterday’s strategy. That is why the best CHROs work with CSOs to manage leadership benches with a future-focused succession strategy

Pre-mobilize leaders through better succession planning.

Give leaders a license to kill projects.

Eliminate misaligned assumptions and legacy behaviors.

Executive Leadership Team (CEO and Direct Reports)

Business Line and Functional Heads

Frontline Managers

Leadership Level and Action Item

9

that more closely resembles financial portfolio management by focusing on:

• Demand-Driven Planning—Take a needs-based approach to succession by determining what roles are likely to emerge, change, or disappear in the next three to five years, aligning the leadership bench with tomorrow’s strategy.

• Broad Sourcing—New growth strategies may call for leaders with nontraditional career experiences, so create transparency across silos and strive to eliminate bias in successor selection.

• Deliberate Diversification—Diversified lead-ership benches must hedge against strategic uncertainty; clearly define diversification requirements and couple these with develop-ment through lateral and diagonal career moves targeted toward two to three leadership roles.

• Leadership Team Rebalancing—Periodically reevaluate each member of the leadership bench for alignment with evolving key strategic objectives to identify and address development opportunities, risks, and misalignments.

2. Give leaders a license to kill projects.

Business and functional leaders make the hard calls about what initiatives to cut in order to free up time, money, staff, and, in particular, the mental ability necessary for executing new strategies. Progressive organizations enable these leaders to decide what to stop doing to focus their own managerial attention and business resources on new strategic initiatives more quickly. Taking a page from these organizations, CHROs and CSOs can intervene at three key moments to unlock and create capacity to execute new strategies:

• Coach leaders to practice addition and subtraction when resetting priorities. The most significant step executives can take to unlock capacity is to balance introducing new priorities and activities with clear direction on what the business must stop doing. Yet few executives do this well. An imbalance here is a major reason strategy execution often fails. CHROs must coach leaders to practice this skill for their personal workloads as well as for their business units to show that saying no to some activities is hard but that saying yes to everything and underperforming is far worse.

• Depoliticize resource trade-offs within and across businesses. Although completely removing politics from resetting priorities is unrealistic, CHROs can use simple techniques to lower the political pressure on resource allocation decisions. For example, when facili-tating tough meetings on resourcing, CHROs should ensure leaders make each decision based on a defined set of criteria. Don’t allow leaders to justify prioritization decisions by comparing “keep” versus “cut” projects, which

Three Reasons Strategies Fail

Flatter organizational structures make everyone a strategist by devolving accountability and responsibility.

Managers can fail to resource strategic initiatives, effectively “pocket vetoing” strategies and overriding senior executive agreement.

The number of stakeholders in critical decisions has increased about 50% in three years, so no amount of planning can fully reveal execution barriers in time.

increases political tension (e.g., Business A is flagged as under-performing relative to Business B, so Business A is scaled back or cut). Instead, identify a finite set of factors, conditions, or capabil-ities critical to determining the value of a project, business, or activity. These criteria should, at a minimum, address a very simple question: “What must be true for the company to con-tinue investing in the project or business?”

• Anticipate and manage the cost of disrup-tion. Business and functional leaders must effectively anticipate and understand the magnitude of workforce disruptions that will occur as capacity is unlocked. That is why the best CHROs work with CSOs to equip line-fac-ing HR staff to help executives test what-ifs by:

- Filtering talent data to present simple visualizations that stimulate leader diagnosis of challenges;

- Presenting easy-to-consume scenarios where leaders can choose from a targeted set of options to assess the trade-offs of different talent outcomes; and

- Providing follow-up support for key staff who must implement decisions.

3. Eliminate misaligned assumptions and legacy behaviors.

All managers, but particularly frontline managers, must believe in the strategy and model new behaviors to drive better, more sustained effort against new growth objectives. The best CHROs and CSOs chart the following course to help frontline managers make effective decisions, adopt the right behaviors, and drive strategy execution to keep their organizations and their careers on track:

• Jump-start managers’ ability to challenge their own assumptions. Experience and time have developed manager mind-sets and ideas about how things should be done, which cannot be undone by mandates alone. CHROs and CSOs should partner to design experiences where managers self-discover how their assumptions and actions shape (and even inhibit) team performance. To internalize these new, more strategy-aligned beliefs and assumptions, challenge managers to teach their peers what they’ve learned from these experiences.

• Give managers directions to drive away from legacy behaviors. Managers are justifiably hesitant to adopt unfamiliar behaviors that run counter to those that have made them successful. The best CHROs and CSOs show managers the actual roadmap of how the definitions of successful behaviors have

changed. Past and present behaviors required for success are acknowledged and celebrated rather than derided. They are then put in the context of the future strategy to highlight their decreasing value relative to new strategy. By comparing and contrasting these differences, CHROs and CSOs can help managers more easily make distinct behavioral changes and reinforce these positive changes by realigning incentives.

Questions to Ask Your Head of StrategyMobilizing leaders to overcome organizational inertia will enable new growth strategies. CHROs and CSOs have a great opportunity to work together and push these strategies by first managing alignment—not as a communication objective, but as a process that begins with succession. They must also help leaders reset their priorities, manage trade-off decisions, and minimize the costs of change. Finally, CHROs and CSOs must help frontline managers better understand how to change their behaviors to support new priorities and work requirements.

The next time you sit down with your CSO, consider these three questions to mobilize your leaders:

• What is the first thing we should do to better align succession planning with strategy?

• What strategic HR projects should we consider killing to free up functional capacity to execute our new growth strategy?

• For our future growth strategy to succeed, how must today’s critical leadership behaviors evolve?

This article is adapted from CEB’s Executive Guidance for Q1 2015, Growth Unlocked: Closing the Strategy-to-Execution Gap.1 The Economist Intelligence Unit, “Why Good Strategies Fail: Lessons for the C-Suite,” The Economist, March 2013, http://www.pmi.org/~/media/PDF/Publications/WhyGoodStrategiesFail_Report_EIU_PMI.ashx; CEB analysis.

10 CHRO Quarterly | Third Quarter 2015

As an HR professional, you spend a lot of time observing and managing the careers of other employees to ensure they thrive in your organization. You probably spend much less time, however, examining your own. Do you know what successful HR professionals do to get to where they are?

To answer this question, we analyzed the careers of more than 600 HR professionals and focused on the 30% who are the most successful: those who are both highly rated on their performance reviews and are influential in shaping decisions with stakeholders. Their success is underscored by the fact that they get to the next level in their careers 2.6 years more quickly than their peers.

Here are some of our findings on what you can do to become a top performer:

Be a Creative Problem SolverSuccessful HR professionals are experts at tackling the complex challenges whose solutions require understanding not just the problem at hand but also how it impacts the broader environment. Interestingly, those who are most successful may not have “grown up” in the HR function: compared to the average HR professional, they are more likely to have worked in different business units (16%), functions (9%), and geographies (8%). But because of this, they can effectively draw on their diverse experiences to resolve organizational problems. The power of coalescing knowledge from different disciplines, often called the “Medici Effect,” explains why the Renaissance—an era during which innovation was created not from particular industries or disciplines but rather across them—produced great visionaries like Leonardo Da Vinci. It also explains why the best HR professionals have worked in more than one profession.

To creatively solve problems, HR professionals need to think critically, a skill increasingly important given the scope of HR challenges today and the rising importance of big data in talent management. Those who are successful in HR are twice as likely to have research experience, making them more likely to ask “why?” rather than dismiss a piece of information if it runs contrary to what they know. Good researchers form hypotheses and stress-test them with a healthy respect for both intuition and numbers. HR professionals who excel do the same.

Practice Your Influencing SkillsIn today’s highly matrixed work environment, HR professionals must be evangelists who can work with stakeholders and secure their buy-in. Top HR professionals are far more likely than their peers (28% vs. 15%) to acquire this kind of influence through consulting roles that require them to be persuasive, manage personalities, and build consensus. Many also draw on their experience presenting at conferences (51%) and even teaching

university-level courses (15%) in order to better communicate technical ideas to a non-expert audience.

Follow a Purpose-Driven PathHR success is driven by no single path, but by a sense of purpose that intentionally moves HR professionals, step by step, toward a specific, predefined goal. This is perhaps most evident when it comes to HR certifications. Leading HR professionals acquire certifications at the same rate as their peers, but when asked why they decided to become certified, they’re 15% more likely to say the certification prepared them for a specific HR position they wanted. Tellingly, they are 24% less likely to say they pursued a certification because it was common in the HR profession. To excel in your HR career, don’t follow the herd; make decisions that align with your specific goals.

What Successful HR Professionals Do

CHRO Action Plan

Involve HR staff on cross-functional projects that build business acumen and stretch problem-solving skills (e.g., quality improvement).

Bring a junior colleague to your next meeting or have her own a portion of the discussion so she can practice influencing stakeholders.

In future career conversations, ask a direct report why he wants to take a particular next step and then help align action items to his short-term goals.

Portrait of a Successful HR Professional

69% have worked in multiple business units.

36% have worked overseas.

28% have advised other firms as a consultant.

28% have research experience.

2x more likely to link HR certification to desired future job.

Source: CEB analysis.

11

Is your workforce ready for change?

For a change to succeed, make sure your employees are aligned, engaged, and agile.

We can help.Assess the change readiness of your workforce with the ClearAdvantage Check pulse survey. Select “Employee Engagement” from the list of topics on clc.executiveboard.com to get started.

12 CHRO Quarterly | Third Quarter 2015

The Right Way to Brand Your Organization Using Growth-Based Careers

Taking a job at another organization is an important career decision, and applying for that job and engaging with the recruiting function is the first step. But how effectively do CHROs and their recruiting functions facilitate these important career decisions?

Great Places to Work Attract a Lot of (Not-So-Great) Candidates…

Organizations like yours are making a simple but well-intentioned mistake: they brand their organizations for mass appeal, promoting themselves as a great place to work.

In theory, this branding approach establishes a company as a superior employer. But if every company takes this approach, how will your company stand out to prospective hires? Ultimately, candidates will scan through—and be unfazed by—the undifferentiated high-level messages that try to sell your and your competitors’ employment value propositions (EVPs).

As much as organizations like to think their EVP is unique, the average outsider can’t discern the differences between the glossy taglines that adorn your employment branding and those of your competitors.

The result: active job seekers, frustrated in their efforts to gauge which jobs are a good fit, apply to lots of organizations. Applicant pipelines are clogged with high volumes of poor-fit applicants: the average number of applicants per position increased 33%

13

between 2011 and 2014, and only a minority of all applicants—just 28%—are high quality. Meanwhile, passive candidates—those whom recruiters proactively try to engage—become less receptive and ignore official organization communications, tired of the same old sales pitch.

…But Branding for Influence Attracts Only Great Candidates

The best CHROs direct their teams not to brand for appeal, but to brand for influence. They disrupt how candidates think about their job opportunities, ultimately redirecting the wrong candidates and strengthening the engagement with the right candidates.

It’s a simple switch.

From: “We invest in our people and have great career opportunities that can take you all over the world.”

To: “We focus on giving employees experiences that will create career opportunities for them; in this position, you’ll develop analytic skills and gather customer-facing experience that mean you could move into A and B role types.”

Although the first statement sounds attractively succinct, it’s cliché and vague. It’s also easy for competitors to replicate, which means it’s not unique. The second statement may lack the initial appeal of the first, but it educates candidates about the role and the associated career opportunities they can expect.

Recruitment and career pathing are intimately connected—for your employees and your potential candidates. A job seeker’s engagement and his or her openness to recruiter outreach will be shaped, in part, by what this person has already achieved professionally and plans to achieve next.

According to most employees, future career and development opportunities are primary factors when considering potential employers. This is especially true for the segment that will soon dominate your workforce—millennials.

When branding for influence, remember: future career opportunities are a strong platform. Not only are they a key decision factor for many would-be candidates, but they are also an underutilized focus point that will disrupt how potential candidates think about your company.

Here are four ways you can brand for influence by highlighting growth-based careers:

• Be specific. Articulate specific career experiences that the role offers.

• Differentiate to compete. Detail the experiences your role can offer or lead to that your competitors don’t have or can’t create.

• Create emotional resonance. Share how the experiences you can offer connect to the purpose of the organization and its impact on the communities it serves.

• Drive reflection about fit. Challenge candidates to reflect on their fit by clarifying what experiences are required to grow in the organization.

Millennials in Particular Want Growth Opportunities Percentage of Respondents Selecting Each Attribute as the Top Five Most Important When Considering a Potential Employer

Future Career Opportunity

Development Opportunity

21%

33%

23%

15%12%

7%

Organization Growth Rate

Millennials

Other Generations

n = 89,872.Source: CEB 2013–2014 Global Labor Market Survey.

How Applicants Learn About Employers Today Relative Influence of Information on Applicants’ Decision to Apply

n = 708.Source: CEB Q4 2013 Global Labor Market Survey; CEB Q3 2013 Global Labor

Market Survey.

80%Information from Other Sources

20%Organizational

Communications

Change Your Employment Branding Approach

Focus branding on critical talent. Instead of targeting branding to a wide array of talent segments, customize it more deeply to the most relevant talent audience.

Create messages to consult rather than sell. Instead of highlighting the company’s selling points, messages should challenge applicants’ thinking about why they want to work for you.

Build a network of brand influencers. Focus on working with individuals who can credibly influence would-be candidates rather than targeting specific social media channels.

14 CHRO Quarterly | Third Quarter 2015

Meet Your Organization’s Needs, With Your Talent’s Potential

We’ll show you how—with Integrated Talent Management Solutions from CEB.

We ask a lot of our leaders. We expect them to deliver more and reach goals more quickly.

The complexity of today’s work environment is only making this more difficult. In the past three years, leaders have faced new barriers that are reshaping their roles and career paths:

• Increased number of stakeholders

• Shifting job requirements

• Geographic dispersion of teams

• Widening spans of control

• Less time available to spend with direct reports

• Rising M&A activity

During this time, our research has uncovered some facts about the state of leadership that would make any CHRO sit up and take notice:

• 75% of business units don’t have leaders who are equipped to handle the future needs of their organization.

• 50% of staff enrolled in high-potential employee (HIPO) programs drop out within five years.

Data like this has led many of our members to rethink and redesign their talent programs, in order to better align talent capabilities with organizational needs.

With advancements in our talent management services, we can integrate in-membership best practice and decision support into our holistic, proven talent management solutions—from assessment to development. Combined, our new solutions for

leaders and HIPOs enable companies to build the individual and organizational capabilities they need while equipping talent to pursue the careers they want, successfully.

A New Solution to Transform Leader Performance

We help organizations overcome execution barriers despite today’s complexity, by turning solid individual performers into productive collaborators who deliver results for the whole firm. We call this holistic approach enterprise leadership. This new model for performance links leadership behaviors and activities to business outcomes and helps build teams that are more adaptable, future focused, innovative, and engaged. Today, enterprise leaders are few and far between: only 1 in 10 leaders qualifies. What’s more, two-thirds of leaders do not leverage and contribute to the work of other teams.

The ability to find and build more enterprise leaders is a significant opportunity for HR leaders worldwide.

How We Can Help: CEB Enterprise Leadership Solution enables organizations to measure leader potential and behavior and to focus on precisely those leadership capabilities linked to business growth. The solution combines our leading insights with new assessment and development services to build leaders who boost business unit revenue by up to 12%.

CEB Corporate Leadership Council™ membership helps CHROs engage with critical stakeholders to build a business case for change. Likewise, it helps HRBPs engage with line leaders and identify organizational barriers to effective leadership. Through our deeper implementation support beyond membership, our enterprise leadership assessment enables you to select, assess,

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“CEB enables me to use data to target the exact set of talent interventions I need to improve business performance.”

Chief Human Resources OfficerF100 Manufacturing Company

“We need our leaders to think about how to drive the organization’s top- and bottom-line numbers, not just their own business units.”

Head of HRHospitality Organization

Plan and deliver more compelling careers for your top talent with our new solutions:

Enterprise Leadership Solution: cebglobal.com/leadership

High-Potential Solution: ceb.shl.com/us/solutions/talent-mobility/high-potential/

Contact your account manager, or e-mail jmccollum@executiveboard.com.

and benchmark your leaders (by industry, geography, and leader segment) against the new enterprise leadership competency model.

Furthermore, our enterprise leadership development experi-ences equip leaders with frameworks and tools to shift their (and their team’s) behaviors toward enterprise leadership. Through these experiences, leaders also acquire the ability to create team-focused communication and action plans.

A New Solution to Build a Stronger HIPO Talent Pool

Not every high performer has what it takes to succeed as a leader, and organizations commonly misidentify their true HIPOs. Almost half of all companies lack a systematic process for identifying future leaders, and only one in three assesses all of the critical factors needed to succeed at higher levels in their careers.

Adding to the HIPO selection challenge: the lack of individual-ized development that supports the critical competencies and experiences HIPOs need to prepare for their next role. In fact, 95% of HIPO programs fail to drive the development follow-through that is critical for HIPOs to reach their potential.

How CEB Can Help: Our High-Potential Solution helps you more accurately identify and develop HIPOs and benchmark your talent to improve your competitiveness. Resources in your CEB Corporate Leadership Council™ membership define the criteria for HIPO program success, employing a HIPO model that goes beyond measuring ability to other critical measures of engagement and aspiration. The membership also offers guidance and best practices on establishing effective HIPO programs.

Through greater implementation support beyond membership, we can measure and benchmark what matters most by using accurate and objective assessments. To develop your HIPOs, we implement a unique and engaging experience-based approach that prepares individuals for senior roles and ensures develop-ment follow-through on the job. Finally, we track your HIPOs’ development results over time to demonstrate program impact.

By combining research, member best practices, and expertise in talent measurement, development, and analytics, our practical solutions help CHROs and their teams better navigate difficult talent management and career planning processes.

16 CHRO Quarterly | Third Quarter 2015

Voice of the CHRO

Every quarter we interview a chief HR executive to gain his or her perspective on issues facing

the HR function. This quarter we spoke with Deb Yates about RB’s new “career possibilities”

framework, managing careers for digital talent, and her advice for

rising HR professionals.

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Thank you for speaking with us. The shape of careers is changing at many organizations. How have you seen career paths evolve at RB?

DEB: We actually don’t use the term “career path” anymore. We use the term “career possibilities.” What has changed about careers is that you need a greater breadth of experience to be successful. And you have to be open-minded that good careers don’t always go in one direction: up.

A career is more of a journey, a different path. In fact, we use a picture of a climbing wall when we talk about career possibilities. You always end up in the same place, but the journey to the top is different for every individual person. Sometimes you go up, sometimes you go across, and sometimes you might go down.

How are you making career possibilities tangible for employees?

DEB: We are just rolling out the career possibilities framework. We’ve been socializing the concept, and to really start embedding possibilities, we’re launching an online “choose your own adventure” tool. It’s targeted particularly at our graduate through middle manager populations, where the breadth of opportunity is still so great.

The tool starts with the big picture and the principles for a career at RB. It talks about the idea of career possibilities, and then employees can dive into it as much as they like and follow examples of different career possibilities that other individuals have pursued.

We’re launching the tool because it hasn’t been easy to go from using a single slide to show a career ladder to trying to explain all the opportunities we now have. People really need more succinct answers. This is why we’re trying to visualize for employees all the different possibilities, and the two key questions we’ve answered for each job are “What are the skills I need to get into the job?” and “What am I going to learn while I’m there?”

What is the biggest challenge you’ve had to overcome while developing the career possibility framework and creating the online tool?

DEB: We’ve really had to think hard about how you give breadth of experience and this idea of career possibilities, but not shy away from speed. Fast careers have always been a value proposition of ours, one of the core reasons we stand out from other employers. So we do this by stretching people into roles when they’re almost ready.

And then the question is “How much breadth is enough?” For example, when building GMs, it’s not great if I end up with a whole bunch of GMs who are neither great marketers nor great sales people. If I try to create too much back-and-forth, I end up

with neither. That’s not the intention. The intention is to have someone who is a great marketer and who has had enough sales experience that he or she understands it enough to be a general manager. I think it would be a mistake if you ended up being a generalist and a specialist in nothing. That would mean the career possibilities haven’t delivered.

And what about the rollout from the employee perspective? Have there been any cultural concerns about a drop in pay or prestige with an atypical move? If so, how are you responding?

DEB: It’s not easy to do, but when we’ve had the most success, we’ve shown genuine examples of employees who are really successful who’ve done that. For example, highlighting someone who’s on a sky-rocketing marketing career but takes a step back to do trade marketing roles to learn about sales and then continues to go at pace or maybe even takes a leap after that. That’s the best way to say, “Listen, it’s possible. It strengthens you. Here’s the difference that it makes.” And then on the pay question, if the employee is a high potential and needs to get a more junior experience, we would probably not ask that person to take a step down in pay.

Your CIO recently stated he wants to increase digital revenues from essentially nothing to 10% of sales in the next five years. How are you personally partnering with him to ensure RB has the digital talent it needs to deliver against this goal and the career paths to keep them in seat?

DEB: The first thing we worked on was thinking about how to find the talent. We also talked a lot about making sure we have a critical mass and putting them together in hubs so they have the opportunity for development. But as important, maybe if not more, we need to accept that they’re not going to stay. So how do we make sure we’ve got the right workforce plan so we accept that it’s going to be a worthwhile partnership for both of us but that it’s not going to be forever? They’re going to come, we’re going to gain from them, they’re going to gain from us, and then they’re going to leave.

Is what you just described the reality for that talent segment only, or do you see this in other populations?

DEB: I think it’s the reality for that segment. That is certainly not our aspiration for our commercial people because we can provide the career and ongoing development. If they do leave us, they do something very similar somewhere else, whereas the digital world is changing all the time.

About RB and Deb Yates

You may not have heard the name, but RB products are probably in your life. RB products—sold in nearly 200 countries—include Clearasil, French’s, Lysol, Veet, and Woolite. They generate more than £8.5 billion in revenue annually. Deb Yates joined RB in 2004 and was appointed Senior Vice President of Human Resources in 2015. She is responsible for driving the talent agenda for the company’s more than 37,000 employees.

What has changed about careers is that you need a greater breadth of experience to be successful.

18 CHRO Quarterly | Third Quarter 2015

In fact, that means if we want to keep up with the trends in digital, having the same people work for us for 10 years is not going to help us do that. They’re going to want to go back outside and learn, and we’re going to need to bring in new people to keep up with the massive pace this digital thing is moving at.

Related to that point, today, “lifers”—employees who work for only one company their entire career—are disappearing. There are more corporate alumni networks, and “on-demand” work is rising. So do you think there will be a time in the near future when we will stop trying to map long-term careers completely?

DEB: That’s a really interesting question. Our experience has been that if people make it to the five-year mark, they tend to stay. It’s like they’ve found a home. And also they’ve probably become more senior and have bought into the company with their hearts. Maybe the percentage of those people might change, but I’m not convinced yet that long-term careers will soon change significantly for us. I think we’ve got work to do to get more people over that five-year mark, but once that happens we tend to see them stay for quite a long time.

That said, historically, I think employers have been a little bit proud. The mentality of “you leave and you’re gone” is such an outdated way to think about careers. It’s really a partnership. If somebody leaves for a good reason but then wants to come back and is a high performer, I would take that person back any day, of course. Companies just need to be far more open to the idea that talent will go and come back.

How are you evolving your talent strategy, beyond the digital segment, to this reality?

DEB: We have a strategy that says we want 50% of our middle managers to come from our graduate programs, but we want the other 50% to come

from outside. We don’t want a factory of all the same thinkers. We want some great people we grow internally, but we want to go out to the market at that middle-manager level to bring in new thinking and questioning.

Reflecting on your own career, are there key experiences that you would say best prepared you for the head of HR role?

DEB: One that sticks out to me was coming into corporate for the first time and doing a global role. To be honest, I wasn’t quite sure I was a corporate person. I really saw myself as a business person. But stepping back from the hustle and bustle of the market and looking at things from a different perspective gave me a very different insight. Focusing on issues that don’t have an impact today or tomorrow but further down the road, I think, has been critically valuable.

I’ve also been lucky to be involved in fairly big acquisitions and integrations. You learn about how critical our culture is, how important it is to have a really robust plan for how we integrate people. You understand what has made the other company really great and how to bring that capability in. At the same time, you learn how to very quickly integrate them culturally so we always hang on to the magic that is RB.

One of the key parts of my role now is to be the champion of the culture, which means making sure we’re clear about what the “RB magic” is. We plan to grow and double our business. Part of my job is to make sure that we’re really clear about what the magic is and that we hang on to that, no matter how big the business. We must reinforce the culture in all the ways we manage people and the business. Doing integrations gives you a real insight into understanding, “How do I do that?”

Is there an underrated experience you believe is absolutely central to taking on the leadership of the HR function?

DEB: The underrated experience is failing and making a big mistake, or even taking on a difficult boss. I learned the most from being brave and taking on, or working for, a difficult person, and I think that you learn so much about yourself and that the resilience you get is critical. So my advice would be, “Be brave.”

Finally, what do you think is the most important emerging business issue all CHROs should be working on right now?

DEB: What I would like to learn from them, if I put that in a slightly different way, would be how we make sure that we have the right talent ready for the right challenges in the right place. That’s what I lose sleep over.

And it’s not just for today or tomorrow, but for 2020 and beyond. For example, “Where’s the top young talent out of Indonesia studying? How do I attract them and put them somewhere that in 10 years’ time I’ve got a GM?” I need to do that systematically and develop predictive modeling to find the right people. Then it’s my job to figure out how we hang on to them through great careers.

This interview has been edited for brevity and clarity.

Companies just need to be far more open to the idea that talent will go and come back.

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Boost business unit revenue by up to 12%.

CEB Enterprise Leadership Solution helps organizations redefine leadership—building leaders and teams who take a broader view and drive stronger business results as a collective.

Get started at cebglobal.com/leadership.

Do leaders miss the big picture?Drive results. Faster.

20 CHRO Quarterly | Third Quarter 2015

Does your organization have a differentiated employment value proposition (EVP) that attracts high-quality candidates, and do you deliver on its promise so your best employees stay? The best organizations do both. Here’s how you can, too.

An effective EVP can reduce the compensation premium for new hires by 50% and increase employee commitment by 37%.

Yet due to ongoing organizational and market changes, many organizations have failed to deliver on their EVPs, rendering them ineffective in the eyes of employees. In fact, employee satisfaction with EVP delivery has decreased 24% in recent years. The consequences are real: most employees cite insufficient (or nonexistent) future career opportunities as the reason for their leaving.

Does your EVP drive the desired results? Do you know how to maximize it? The answer is not what you might think: the best organizations spend 80% of their effort delivering on EVP promises and 20% on defining what these promises are—not the other way around.

Creating a Compelling Employment Value Proposition

What You Need to Know

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Assess Your Current EVP Design and Delivery Effectiveness

Diagnose your existing EVP’s alignment with labor market preferences, firm strategy, and competitive strengths to build a business case that links your value proposition to real results.

Design a Differentiated, Business-Aligned EVP

Collate feedback, business needs, and survey results to redesign your EVP so it aligns with your unique strengths and strategic objectives so your organization can deliver on its promises.

Drive Impact with Your New EVP

Segment and communicate a new EVP internally and externally, and prepare the business units to deliver on new EVP promises to drive employee commitment.

Your Response

Action Toolkit: EVP Design Center

Define the set of attributes that make up your core organization-wide EVP.

EVP Investment Decision Rules

Make it easy for the right employees to choose your organization. Determine how to tailor your offering to specific market conditions and critical talent segments.

Guidance from Your Executive Advisor Team

Learn how other organizations like yours design and align their EVPs with strategy.

HRBP: EVP Delivery Center

Visit our one-stop-shop for HRBPs to learn how to segment and communicate your new EVP.

EVP Touchpoint Tool

Reinforce EVP delivery by embedding your EVP into high-influence moments in the candidate and employee experience (e.g., performance reviews) to bring your proposition to life.

EVP Redesign Business Case

Start building your business case here. Show the clear need and value of a better EVP at your organization.

EVP Diagnostic

Unsure which areas of your EVP should be improved? Use our tool to uncover EVP design and delivery weaknesses.

Guidance from an Executive Advisor™ Representative

Get a walk-through of our reports and fully customizable database of EVP data to benchmark your business. Then receive feedback on tailoring your business case for maximum impact.

CEB Resources to Support You

The Questions Key Stakeholders Will Ask YouCEO and the Board Ask...

Why should we invest more in our EVP when we already know compensation is the biggest reason why people join an organization?

HR Leaders Ask...

How can we align what employees want from our EVP to our strategic objectives, while also differentiating ourselves in the market?

HRBPs Ask...

How do we cascade EVP messaging across the organization, particularly so it is tailored to local preferences?

22 CHRO Quarterly | Third Quarter 2015

CEB’s HR Practice 2015 Meeting Descriptions

Where will you join your peers in 2015?

NORTH AMERICAAtlantaCharlotteChicagoMonterreyNew YorkPalo AltoToronto

SOUTH AMERICABogotaSão Paulo

AFRICAJohannesburg

ASIASingapore

EUROPEFrankfurt

AUSTRALIA & NEW ZEALANDCanberraMelbournePerth SydneyWellington

Creating Enterprise LeadersMay–August 2015

Only 27% of business units have the leaders they need for the future. Although leaders’ average effectiveness at key competencies remains relatively unchanged, the environment in which leaders must perform has shifted significantly.

The leaders who are most effective in today’s new leadership environment are enterprise leaders; they lead their teams to high performance as well as contribute to and leverage the performance of other units and teams.

Learn how organizations are creating the leaders they need for the future by addressing the three economic costs of being an enterprise leader.

The New Path Forward: Creating Compelling Career Paths for Employees and OrganizationsMay–November 2015

The employee–employer contract is broken: only one in five employees is satisfied with his or her organization’s future career opportunities.

CHROs are increasingly responsible for solving this problem, as nearly 70% of engagement reports that were provided to the board cite career pathing as a top challenge to solve.

To attract, retain, and build the talent that organizations need to be successful, organizations must redesign careers to build organizational capabilities and improve internal labor market efficiency. Learn how the best organizations do this to meet employees’ career growth expectations.

22 CHRO Quarterly | Third Quarter 2015

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How to Attend Contact your account manager, or e-mail meetings@executiveboard.com.

Organizing HR to Lead Enterprise ChangeSeptember–November 2015

The pace and diversity of today’s major organizational changes are greater than ever. Two-thirds of organizations will experience at least one major organizational change in the next six months (e.g., M&A, restructuring, global expansion). But almost 60% of these initiatives will fail, resulting in millions in costs and missed opportunities.

Most heads of HR are trying to improve their function’s effectiveness at change management during the change itself. Our research shows how leading heads of HR are organizing their functions to more effectively prepare the organization before change and to monitor and adjust after the change has occurred.

CEB ReimagineHR Summit 2015September–October 2015

ReimagineHR is our new three-day event that, depending on the summit, brings together over 350–500+ executives and their teams, presenting a unique opportunity for members to engage in discussions on critical HR topics with their peers.

Strategically timed to help with the 2016 planning season, ReimagineHR provides members with research and insight from across our multiple talent management businesses.

To bridge the gap between high-level strategic planning and actionable implementation, the event is exclusively for CHROs (or equivalent roles) and their teams.

Note: Dates and locations are subject to change.1 CHROs/heads of HR and their direct reports; limit of

two per meeting.2 CHROs/heads of HR only.3 Two-day meetings run from noon on day one to noon

on day two. Meeting includes a networking dinner on the evening of day one.

Creating Enterprise LeadersExecutive Briefing1

São Paulo (In Portuguese; Half Day)

26 Aug.

The New Path Forward: Creating Compelling Career Paths for Employees and OrganizationsExecutive Retreat2

Johannesburg 17 Sept.London 3 Sept.Singapore TBDSydney 6 Aug.

Executive Briefing1

Atlanta 20 Aug.Bogota 16 Sept.Canberra 6 Aug.Charlotte 4 Nov.

Chicago 5 Aug.London 8 Sept.Melbourne 11 Aug.Monterrey 26 Aug.Palo Alto 6 Oct.Perth 11 Aug.New York 18 Aug.Toronto 29 Oct.Wellington 4 Aug.

Staff BriefingAtlanta 27 Oct.London 10 Sept.New York 21 Oct.Palo Alto 6 Oct.Sydney 13 Aug.

The Future of Corporate HRExecutive Retreat2

Chicago3 18–19 Nov.New York3 16–17 Sept.

CEB ReimagineHR Summit 2015Chicago 30 Sept.–2 Oct.London 13–15 Oct.

CEB’s HR Practice 2015 Meeting Dates

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CEB Corporate Leadership Council™

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+1-571-303-3000 (North America)

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The CHRO Insight Series

CHRO Quarterly Magazine

Business insights and implications for heads of HR on leading their organization and HR function, featuring personal stories from leading HR executives

Global Workforce Insights Report

Quarterly workforce insights on global and country-level changes about what attracts, engages, and retains employees, based on data from 18,000+ employees in 20+ countries

HR News Report

Quarterly functional insights on advances, challenges, and opportunities in HR categorized by 10 key functional areas

CHRO Video Series

Personal insights from leading heads of HR on the most important relationships and activities CHROs must manage