Closing the talent gap

By Davis Klaila, Ceridian senior director of Strategy

The talent gap is the distance between what you know and what you need to know. And for most of us, it's significant.

A 2005 study by the consulting firm McKinsey & Company found that when you align requirements for a position to an organization's strategic initiatives and then examine the capabilities of the employee in the job, there is a readiness ratio of 40 percent. That's less than half the skills required to perform at the maximum level of effectiveness in a position.

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Why the gap?
While a low readiness ratio can be disconcerting, it shouldn't be unexpected. Employees bring a certain set of skills and competencies to a role and a position has a certain set of competencies and requirements. Rarely is there a one-to-one match.

Managers compensate for gaps with work arounds and reallocate responsibilities, i.e. if a position requires strong communication skills and the employee has only mediocre competencies in this area, a manager may delegate communication responsibilities to another employee. It's likely the best we can hope for is to develop 85 percent of the strategic competencies required by a position. That said, overall readiness ratios for positions are still lower than desired.

Taking steps to close readiness gaps
Define
The first step toward closing readiness gaps is to work with your leadership team to determine the competencies most critical for specific positions. Then define core competencies for positions. There are many programs and tools to help define both sets of competencies; Lominger International (www.Lominger.com) offers a complete set that are statistically validated. Equipped with data that provides position requirements, employee competencies and the strategic goals of your organization, you can begin to work to close readiness gaps.

Measure
You can have employees self-rate their competency level; however, note that self-ratings are the most unreliable -- but it's a starting point. A more reliable assessment may include a multi-rater analysis, i.e. a 360 degree feedback program, where an employee is assessed by colleagues, partners and their manager. The outcomes of self- and multi-rater analysis can assess the current state of competencies required for a position. Once you have data, you then need to think about moving from the current state to the desired state.

Train and develop
Employee training and development involves more than course work. An effective development plan can include unique job assignments that ask employees to tackle tasks they don't like. And, of course, seminars and a range of other experience-based options are available.

Learning experiences are enhanced by classroom experiences and course work. It's important to include experiential learning in the mix because it's the most effective learning method for adults. A learning and development program can include project work, specific assignments for experiential learning opportunities and classroom instruction.

The following is an example of a learning program to develop the ability to deal with paradox:

Dealing with paradox is a key leadership competency, but many employees are uncomfortable trying to balance opposing views. Paradoxical behavior is the ability to act in ways that may seem contradictory. For example, a leader may need to be tough and compassionate or act in accordance with a certain situation while still maintaining consistency. To develop a paradoxical competency, leaders need to be flexible, have the ability to take charge and work out difficult situations by drawing on their knowledge of both the business and other available resources. This competency would be incredibly difficult to develop by reading a text book.

An effective learning program for this type of competency could instead include:

  • Development assignments like managing an unpopular project, leading an ad hoc group in a rapidly expanding and evolving organization, managing a multinational project or making peace with a disaffected coworker.
  • Include study materials like books on decision making including those that cover spectacular failures.

Things to watch out for during development training include:

  • A decline in ethics or values (identification with aggressors).
  • Force fitting all situations into one solution that may have worked in the past.
  • Over management and defensiveness.

A comprehensive learning program includes developing the ability to influence without authority, moving between line and staff roles, managing turnaround projects with heavy strategic demands while maintaining the ability to comfortably share shortcomings, and high ethical standards. The most appropriate measures for success are multi-rater analysis and working with an individual coach.

Learning programs and the resulting competency development is a lifelong process for you and your employees. It's a process that is easily driven and managed by the learner with support and guidance from management and the HR department. Like any independent study program, much of the work and the design will fall on the learner's shoulders. The good news is that training can be tailored to your needs.


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