Talent Management Guide
Talent Management Guide
Talent Management Guide
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Contents
Talent consists of those individuals with the performance and potential to make a significant
difference to agency performance in the APS now, and in the longer termi.
The concept of high potential is central to the notion of talent. It refers to the capacity of an
individual to move into - and succeed in - roles of greater complexity, ambiguity and scale in the
future.
Although all people have inherent talents, specific focus is given to those identified as high potential
talent.
Talent management is a key business strategy and an investment in the future capability of the APS.
Taking a systematic approach to managing the career growth of high potential employees can help
ensure the APS has the right people ready for critical roles now and in the future.
Recent researchiii lends support for a focus on talent management. Some of the tangible business
outcomes identified in the research include:
The creation of a robust leadership bench strength that supports the organisation’s
succession planning for key positions
Improved retention and engagement of high potential employees with business critical skills
Greater customer satisfaction and overall better market performance, compared to
organisations that do not actively manage talent.
A study by the Corporate Executive Boardiv in 2014 highlighted the criticality of high potential
individuals, finding that these employees are almost twice as valuable to an organisation compared
with those who are not found to be high potential. This study also found that only 15% of an
organisation’s highest performing employees can develop and adapt enough to succeed in more
senior, complex roles.
Talent management helps to identify that 15% and ensure they are positioned to take up critical
roles. It can also help to ensure the other 85% of high performing employees remain strong
contributors to the agency and are in roles which support them to contribute their best.
For the APS, a systematic approach to talent management is critical to building a more agile and
responsive institution that is better able to serve government as it makes progress on a range of
complex issues for the nation. It makes good business sense to engage the best and brightest
individuals in the work of the APS, and, through targeted career development, position them for
critical roles in the future. It is the key to sustainable agency performance.
Talent management is owned and led by APS leaders, who are actively engaged in the
process with a view to the longer term interests of their agency and the wider APS. Senior
leaders, as stewards of the APS, have a particular leadership role to play in driving effective
talent management in their agency and across the APS.
The identification of talent is based on valid and objective assessment, ensuring the right
people are receiving the right development and focus at specific times in their career. This is
consistent with the notion of merit.
Talent management is systematic and dynamic:
o The process involves regular and active identification, planning and monitoring of
high potential individuals: who they are, how they are being developed, the career
‘next steps’ that will best help them realise their potential.
o The process also recognises that an assessment of potential may change over time
depending on an individual’s circumstances or career stage. As such, potential is
regularly monitored and reassessed.
In the APS, corporate and strategic workforce planning processes inform the focus for talent
management. Corporate plans set the strategic direction for an agency and its key priorities and
objectivesv. Workforce planning assesses the workforce requirements to deliver on strategic
priorities, including the roles that are critical to successful delivery. These roles may be generic, for
example senior management or technical roles (for example chief finance officer roles).
Talent management focuses on individuals with the potential to successfully undertake these critical
roles now and in the future. There are four elements to the system:
1. Talent attraction and identification: Sourcing external talent or identifying internal talent
with the capacity to be successful in critical roles in the future.
2. Talent development: Making a targeted investment in the development of talented
employees to build their capability for future roles.
3. Talent engagement: Maintaining the engagement of talented employees with the APS, and
retaining them, through career management, ongoing development and retention
strategies.
4. Talent deployment: Actively drawing on identified talent to fill critical workforce gaps. This
involves the placement of talented individuals in either short-term roles (critical
projects/taskforces) or in long-term positions in line with career aspirations and business
needs.
The full talent management system can be seen in Figure 1. Each step is then covered in more detail
in Part B of this guide.
For talent management to work effectively, it is important to have a clearly established mechanism
for senior managers to come together regularly to discuss talent. This can be across the APS or
within an agency. This mechanism can take the form of:
These types of mechanisms allow for an appropriate level of discussion of talent, ensuring decisions
can be made with a view to the strategic directions of the agency, its best long-term interests and
the interests of high potential individuals. Decisions about talent can also be made at a level where
there is agency support for their implementation, for example, a decision to place a high potential
individual in another role to broaden their skills base and experience.
Talent discussions at the senior manager level need to be supported by the Human Resource
function. The HR function can provide information and advice on the identification, development,
and career progression for high potential individuals. This can be supported by talent tracking and
monitoring tools which are available on existing HR systems or can be procured as specialised
software. Depending on the size of the talent pool being managed, a simple spreadsheet can also be
an effective and low cost monitoring tool.
Further information on the arrangements for managing talent can be found in Part B, section 5 of
this guide.
There are two key ways to build an agency’s pool of talented employees: recruiting external talent
from the labour market or identifying talent within the agency’s existing workforce. Most
organisations used a mix of both approaches to build a talent pool able to fill a range of critical roles.
Attracting talent means recruiting the best, brightest and most respected individuals to a career in
the APS. External talent attraction aims to grow the breadth of the existing talent pool by bringing in
individuals with business critical skills and experiences, fresh enthusiasm for the agency’s work and
the potential for career growth. Researchvi suggests the benefits of recruiting talented employees
include higher employee engagement, better retention rates and lower staffing costs through
reduced absence or performance management.
The APS Recruitment Guidelines contain information on tailoring recruitment processes to find the
best employees. Social media and global networks are dramatically changing the way that
organisations attract the most talented employees. According to recent researchvii, effective talent
attraction strategies that organisations should consider in the age of social media include:
Identifying and developing internal talent means that an agency is not reliant on the labour market
to fill every critical vacancy.
Effective talent management relies on the systematic and objective measurement of performance
and potential. Talented individuals are those who are high performers with high potential. It has
been estimated that only 15% of high performers are also high potentialx.
Talent management can be unsuccessful when organisations make the mistake of focusing on the
wrong people – usually those who are ‘high performers’ in a current role but not necessarily ‘high
potential’ for more senior roles. This is because performance is generally easier to observe and
assess than potential:
Performance Potential
An assessment of what has already happened A prediction of what might happen in the future
in a past role or what is happening in a current in a more complex, ambiguous, larger role:
role:
- Likelihood of success in delivering
– Actual achievements outcomes
– Actual behaviours - Likelihood of appropriate behaviours
- Likelihood of surviving and thriving
When talent is inaccurately assessed, it can result in a poor investment of time and resources in the
development and engagement of an individual.
High performance is the first component in identifying talent. In assessing performance, two
dimensions are important:
what has been delivered and the outcomes achieved: high performers not only get things
done, they get the most critical things done and achieve the desired result
how outcomes have been achieved: the behaviour of high performers aligns with the APS
values and reflects good management and leadership practice.
Agency performance management systems should provide a good basis for understanding current
and past performance. However, if there is not an equal emphasis on how outcomes have been
achieved, there will need to be a supplementary consideration of this dimension of performance.
APS Values
Impartial – The APS is apolitical and provides the Government with advice that is frank, honest, timely and
based on the best available evidence.
Committed to Service – The APS is professional, objective, innovative and efficient, and works collaboratively
to achieve the best results for the Australian community and Government.
Accountable – The APS is open and accountable to the Australian community under the law and within the
framework of Ministerial responsibility.
Respectful – The APS respects all people, including their rights and their heritage.
Ethical – The APS demonstrates leadership, is trustworthy, and acts with integrity, in all that it does.
The APS model for high potential is based on an assessment of an individual against three qualities:
ability, aspiration and engagement. These qualities were first identified by the Corporate Executive
Board and are now used widely by organisations in their talent identification processesxi.
Recent APS research across nineteen models for high potential identified observable indicators for
each qualityxii that are meaningful in the APS context. These form the APS framework for identifying
potential, as set out in Figure 2 below. A more detailed explanation of the elements of the
framework is provided in Table 1 on the next page and in the APS Framework for High Potential.
Source: Ability, Aspiration, Engagement based on Corporate Leadership Council, High Potential Employee Management
Survey, 2005.
An initial assessment of an individual’s potential can be made through observation against the
qualities, indicators and behaviours in the APS framework, as set out in Table 1 below. A manager
guide to this assessment is included in the Manager guide to identifying potential. This kind of
assessment is best made by a manager who is working closely with an individual and is able to
observe their behaviours directly and engage with them about their career aspirations. These
observations should be validated through discussion with a more senior manager or others on the
management team. Drawing on multiple points of view combined with descriptions of behaviour can
help to ensure personal bias is minimised.
When done well, an initial assessment offers an efficient way to gain a better understanding of the
potential of individuals. It can be applied to all individuals in a segment of the workforce to screen
for high potential, prior to embarking on more formal assessment processes. This may also avoid
putting the wrong individuals through formal talent assessments, setting expectations which may
not be met.
Engagement – strong Alignment with APS culture & Commitment to the work of the APS
commitment to the APS values or agency Behaviours align with APS
with application of values
discretionary effort to
achieve objectives Discretionary Effort Goes above and beyond expectations
to achieve goals
Environmental Fit1
1
May be important for some agencies or some functions (i.e. a person’s ability to work in different locations
for an agency with an international presence; professional qualifications in a specific field)
Formal assessment can be valuable to confirm an initial assessment of high potential and
understand areas for development.
Screening tools – these are generally online questionnaires that can be validated with wider
stakeholder input. These tools provide a quick, objective and consistent assessment.
In-depth assessment tools – these are used when high selectivity is required and/or to
inform development planning. These types of assessments include task simulations,
behavioural interviews and personality assessments.
More information on formal assessments can be found in the guide to formal assessment tools and
methods.
Accurate assessment of an individual’s performance and potential is the first step in a well-targeted
talent management process. However, it is only when an individual’s assessment is considered in
relation to the assessments of other individuals across a segment of the workforce that important
decisions can be made by the senior management team such as:
A useful tool for plotting individual assessments across a cohort is the nine-box grid, which was
originally developed by McKinsey for General Electric. The full APS nine-box grid can be found in the
Talent Management Toolkit.
Performance: An individual’s success at delivering on role objectives in current and past roles. Performance is an
assessment of what a person delivers and how they deliver (within the context of the APS values).
Potential: The likelihood that an individual can work successfully and effectively in an expanded role, particularly the ability
to work in an increasingly complex and ambiguous environment.
Plotting individual assessments on a nine box grid will paint a picture of a group as a whole, be it a
cohort across the APS or within an agency, division or team.
It is sensible to focus talent management discussions on the individuals with the highest
performance and potential (top talent), as well as those who show strong signs of reaching the top
talent ranking (emerging potentials and high achievers). This will ensure that talent processes have
a strong and single-minded focus on developing, retaining and deploying the individuals who have
been identified as the most critical to future agency success. Further guidance on developing and
engaging talented employees is provided later in this document. A discussion prompt for debriefing
individuals identified as talent on their placement in the nine box grid and further clarifying their
career goals is found in the Guide to career conversations.
Plotting individual assessments on the nine box grid will also highlight individuals who do not
currently fall into the talent categories. These individuals would not normally be considered through
talent management mechanisms. However, their placement on the grid provides useful information
for managers to consider in their general workforce planning and performance management
processes. The assessments can help fine-tune the management practices that will best support an
individual to contribute their best.
For example, ‘proven performers’ are high performing individuals who are not rated as high
potential. These are employees who may not aspire to more senior roles or have the ability to
contribute at a more senior level, however their performance makes a significant contribution to the
agency, they may have deep expertise and they are highly valued for their contribution at level.
Agencies may wish to consider how they keep these important contributors engaged through:
At the other end of the scale, for individuals in the ‘strongest concern’ category there is a need for
firm and decisive management action. This includes accurately understanding the nature of the
employee’s performance shortcomings and then taking steps to address them. In the first instance,
the manager must engage the employee on the issues, providing honest and clear feedback. They
then need to set goals and expectations around a return to effective performance, ensure
appropriate training is provided, and monitor progress.
If performance does not improve, agency underperformance processes should be commenced. This
may result in reassignment of the individual to another role, reclassification or termination.
A set of manager discussion prompts for each of the nine-box grid categories is provided in the
Guide to career conversations.
2. Talent Development
Although talented individuals have been assessed as having the capacity to move into roles of
greater complexity, ambiguity and scale in the future, they may not yet have the full capability
required for those roles. For example, an individual may have highly developed technical skills but
require stronger leadership and management skills.
As such, an important element in a talent management process is working with a high potential
individual to pinpoint areas for targeted development and finding the right development option.
An integrated approach to development based on the 70:20:10 model is likely to achieve the best
developmental outcomesxiii:
70% of learning is gained from experience (e.g. on the job experience, tasks and problem
solving)
20% of learning is gained through relationships (e.g. feedback and interpersonal learning)
10% of learning is gained through formal learning programs.
Effective development activities should be challenging and take the individual outside their comfort
zone. Those identified as high potential are likely to gain real benefits from this; as keen learners,
high potentials should respond well to intensive development.
To maximise learning gains, development should incorporate elements from each of these types:
Career and development conversations with high potential individuals are important to understand:
Aspirations and how these relate to business need and critical roles
Motivators, strengths & weaknesses
Learning needs
Development options
Timelines, including those for monitoring and review.
These conversations should take into account development needs identified through formal or
informal assessments.
Managers are best placed to conduct these conversations. Manager guides for career conversations
with high potential talent can be found in the Guide to Career Conversations.
Drawing on the career conversation, an individual development plan can be constructed. The plan
should build useful skills and experience based on future critical roles and the individual’s
aspirations. This plan is usually fed into senior management discussions about talent so that there is
clarity about an individual’s development goals and agreement to the investment being made.
More detail on development planning can be found in A guide to learning on the job in the APS.
The planned movement of employees within, across and outside agencies to gain varied job
experiences is an effective strategy in career and capability development. For high potential talent,
this is particularly effective, as these individuals are often looking for ‘an experience’ which provides
new opportunities for career growth. Indeed, recent research indicates that high potential
employees will find opportunities outside the agency if such opportunities are not provided from
withinxiv.
When done well, the planned use of employee mobility is a cost effective means of diversifying and
enhancing a high potential employee’s knowledge, experience, and skills through ‘immersion’ and
‘learning by doing’. Developmental mobility includes:
Movements can be unilateral or bilateral (exchanges), however the focus of the movement should
be on developing the high potential individuals’ breadth and depth of skills in areas likely to be
relevant in future roles.
Agencies using mobility as part of their talent development strategy should undertake pre-
assignment planning. This activity ensures that mobility placements will provide the targeted
capability development identified in the individual’s development plan. It is also important to
provide on-assignment support to ensure the required development is taking place.
3. Talent Engagement
Maintaining the engagement of high potential individuals is important if their skills and capabilities
are to continue to be available to the APS or their agency in the future. If talented employees aren’t
kept engaged, the risk of losing them is high. A Harvard Business Review studyxv found that most high
performing young people with records of strong academic and workplace performance regularly and
actively looked for new jobs when they were already employed.
Engagement does not mean holding on to talented employees in one job role or agency; indeed,
talent ‘hoarding’ is likely to have a negative effect on engagement. For high potential individuals,
there three requirements for continued engagement:
Visibility: Knowing that the APS or an agency recognises their potential and is interested in
them
Planning: Being clear about the plan for their development and their career path
Action: Seeing things happen that will assist in their growth and career development.
Talented individuals work harder than their peers and expect their agencies to provide stimulating
work that prepares them for future roles, ongoing recognition and rewarding career paths.
Researchxvi indicates that the following strategies in 3.3.1 to 3.3.5 can help keep talented employees
engaged and committed.
The direct involvement of senior managers can make a significant difference to the engagement of
talented individuals. Aligning high potential employees with a senior sponsor – directly or through a
talent forum – can impact on all three requirements for engagement. The high potential employee
will enjoy greater visibility and have access to senior level guidance about their career. Because the
senior sponsor is in an influential position in the agency, they may be able to unlock barriers to the
employee making progress with their career development, for example, if it is time for a change in
role.
Being recognised is one of the most critical factors that keep talented employees engaged. Talented
employees are aware that they contribute more than others. Failing to meaningfully recognise their
greater contribution risks disengagement or leaving for a new employer.
In the private sector, recognition is often financial. In the APS, there are alternative ways to keep
talented employees engaged through recognition. This might include offering different and more
challenging development opportunities, offering special projects or mobility changes, or offering
flexible working arrangements to support study or other development.
During periods where promotion or transfer opportunities are limited across the APS, agencies
should carefully consider whether acting assignments or new projects are suitable for keeping high
potential employees committed to the APS. Providing the best opportunities to high potential
employees isn’t about creating a ‘favoured class’, but is about ensuring that the best contributors
continue to offer their best and keep growing in preparation for taking on critical roles.
Keeping high potential employees engaged means continuing to stretch them with challenging roles
or projects where they are forced to quickly develop new skills. Protecting talent from experiencing
tough roles is a bigger long-term risk – talent will leave in search of greater challenges or they will
reach critical roles without having being tested.
Agencies should keep their talent engaged and developing by placing high potentials in the most
complex, high-impact roles and projects. These challenging assignments should be linked to an
individual development plan and precise development goals.
Talented employees usually stay committed when they feel they are actively contributing to the
agency’s future. Strategies include involving talent in projects to resolve important strategic
challenges, allowing high potentials to serve on ‘shadow boards’ that provide genuine business
advice to senior leaders, or offering private briefings on strategic challenges.
Organisations cannot assume that their high potential employees will remain highly engaged.
Researchxvii shows that one in three high potentials admits to not putting all their effort into their
work, while one in five believe that their aspirations are markedly different to what their
organisation has planned for them.
Agencies should regularly check the level of engagement of their high potentials and seek to
understand their career aspirations. Strategies include appointing career stewards to guide career
aspirations and expectations, or regularly obtaining feedback from talented employees on their
satisfaction with jobs, career opportunities and work-life balance.
Tracking and monitoring of talent can also be useful in maintaining engagement levels. There are
many systems on the market that can assist with talent tracking. Care is needed in choosing a system
that is simple to use and affordable.
Individual Profiles (often known as career profiles or talent profiles) are a low cost tool that can be
used to track talent. These serve as an internal resume and can facilitate discussion and
understanding of an individual’s experience and development needs. Individual profiles are used by
HR and at senior management talent discussions to enable detailed discussion about the
development, engagement and deployment of identified talent. The profiles capture past experience
(both professional and academic), along with career highlights, aspirations and sought after roles. A
sample career profile template can be found in the talent management toolkit.
4. Talent Deployment
Talent deployment is the process of drawing on identified talent to fill critical workforce gaps. This
may include placement of identified talent in short-term roles such as critical projects/taskforces or
selection for long-term positions. Successful deployment is the return on investment in a talent
management system.
It is important to note that identification within the talent management system is not a guarantee of
promotion. Rather the aim is to give the agency a pool of talented individuals with the skills, abilities
and experience for critical future business roles. A merit-based selection system then determines
the best person for the role.
Succession planning involves understanding the critical roles within an agency, the current
occupants of those roles and their likely career moves, and the pool of available talent who could fill
the roles in the future.
Succession planning works alongside the talent management system and potential successors from
the talent pool are considered in terms of:
Skills and experience (what does the high potential individual offer this role?)
Aspirations (how does this role fit with their aspirations?)
Required development (what development might they need to fill this role successfully?)
Timing (are they an immediate successor, or do they need time before consideration?)
Risks (what would be the risk of putting this person in the role?).
Succession plans should be kept confidential and only senior staff should be party to the discussion
and information. A succession plan template can be found in the talent management toolkit.
Setting up the high potential employee for success in taking on a new role is important. Even when a
talented employee has been developed and positioned for a more complex or senior role, they will
still experience a period of transition. This will involve quickly getting across a broader scope of
work and responsibility. It will also involve letting go of their previous role and associated high level
of competence in that role.
Consideration should be given to the benefit of a mentor or coach to support in this transition
period.
For some talented individuals, successful deployment into a more senior role may fully realise their
potential. As such, they may not continue to be actively considered in talent management processes.
For others, there may still be room for development and growth for roles of even greater complexity
in the future. It is important to continue monitoring and tracking these individuals as part of talent
processes.
A Talent Council or equivalent works to ensure the talent strategy connects with the business
strategy. The benefits of holding Talent Council discussions regularly include:
Talent Councils usually have a strong focus on succession to ensure that the development planned
for each individual meets a specific business need. An example ’terms of reference’ document can
be found in the toolkit.
The size of a Talent Council will vary depending on the size of an agency. A typical Talent Council
would usually comprise 4-6 senior executives who:
are more senior (by one or two levels) than the cohort under discussion
represent a range of functions across the agency
bring varied skills and experience.
A senior HR representative would usually be a council member. The Talent Co-ordinator attends to
record the discussion and provide Secretariat functions.
Typically, Talent Councils meet on a biannual or quarterly basis. Large agencies managing bigger
talent pools may meet more frequently.
The Council’s agenda will vary depending on current priorities and the maturity of agency talent
management processes. When a Talent Council is established, early Council meetings should be used
to discuss all high potential staff in the talent pool. As the council transitions to routine operations,
its agenda may focus on a specific role with succession concerns or on a review of select staff in the
high potential pool. The structure of a talent council discussion usually includes:
Council members should be provided with Career Profiles and Development Plans for the high
potential employees under discussion. They should also be provided with any Talent Assessments or
other data such as 360o feedback.
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