The Optimized People Development System

Category: Recruiting

  • Employers: Fight Inflation by Improving Your Workforce Development System

    Employers: Fight Inflation by Improving Your Workforce Development System

    Covid 19 and inflation have this in common; few escape the impact that they have inflicted. These wide-ranging effects are felt everywhere – at home, at work, and in every community; demanding that we change and adjust to their presence. In the case of inflation, the first line of attack for businesses usually includes the search for lower material prices, cost savings in operational areas, and, unfortunately, the perceived need to cut staff levels. However, with supply chain issues complicating matters and labor market challenges confounding the picture, there is a need to look in other places for efficiencies, savings, and improvement opportunities. As organizational leaders search for these elusive prospects, don’t forget to look at your people development system (PDS).

    Continuous Improvement for the PDS

    Although the concepts of continuous improvement have gained ground in many industries, often times, the PDS is overlooked as a system ripe for improvement efforts. For clarity, the typical PDS consists of the processes needed to attract, train, and retain talent:

    • Recruiting
    • Onboarding
    • Retention
    • Performance management, and the engine that drives the PDS
    • Training

    Even if these workforce training and development processes seem to be doing well and yielding acceptable outcomes, the system as a whole, and each of these processes separately, can still be examined to identify waste and opportunities for improvement. In future posts we’ll explore the potential of improvement in other PDS functions, but for now, let’s consider the processes for recruiting and onboarding.

    Look for the Less Obvious Options

    At a chamber of commerce sponsored event last week I heard a panel of employers discussing the changes they made to improve their efforts to attract and retain talent. The bulk of the conversation focused on the obvious levers – increasing wages, offering flexible schedules, increasing benefits, etc. Not much was said about the less obvious opportunities. Those opportunities that are often part of the system and can easily become invisible. These are varied and can include things like creating more inviting job postings that appeal to different audiences. Connecting to new and different recruiting avenues in the community that might help diversify the team. Evaluating recruiting sources and methods. Looking closely at communication pieces that are shown to potential new team members or to the community. How might these tools used during the recruiting effort be improved?

    The Importance of Connections

    The optimized PDS operates as a complete system utilizing connections and feedback from all five areas. For example; does the training program inform your recruiting efforts by helping to identify the ideal candidate’s knowledge, skills, and abilities? Does the training program also help build out the job descriptions and job postings thereby increasing the probability of training success? By connecting training to recruiting, the PDS becomes more efficient and can ultimately save money by making the recruiting process more effective. Connections should exist across the PDS, how might they be strengthened?

    Versatile PDS Tools

    Enhancing employee engagement can reduce turnover, driving down costs. These efforts start in the recruiting stages, gain momentum in the onboarding process, and are sustained throughout the other PDS processes. Using an onboarding plan and schedule can help with new employee engagement and potentially reduce attrition at the early stages of their time with the organization. Presenting a new hire with a personalized development pathway can increase the likelihood that they will stay connected longer, allowing the company to realize an ROI. This pathway is created by and used throughout the whole PDS. If you have this tool, how well is it performing? If you don’t, can you add it to your PDS tool kit? Also, a well-designed onboarding process will optimize the time and effort of everyone involved. Another source of savings.

    Other Potential Improvements

    It seems as though, pressured by current circumstances, many companies have made the screening process less strenuous by lowering standards and eliminating requirements and steps. After all, there is a need to get people in the door quickly. Could this be contributing to the cycle of high turnover that many are experiencing? There’s a future blog post on this whole idea, but for now the question is; can the recruiting and onboarding process be improved by updating screening tools and methods? Bringing the right person on in the right way could help reduce losses when a mismatch results in their departure. When they walk out the door, the organization’s investment up to that point goes out the door too. Perhaps the better investment is to be more selective in the early stages. It might seem counterintuitive, but certainly worth debating.

    Improving the PDS Adds Value

    For organizational leaders, in the face of stubborn inflation, the challenge is to find innovative ways to offset higher costs by gaining efficiency, cutting waste, and improving processes in all the systems within their control. Since every organization has a PDS in some form, operating at some level of efficiency, it stands to reason that working to continuously improve this important system can contribute to the bottom line, often in dramatic ways.

    It’s Worth the Time and Effort

    Like improvement efforts on all complex systems, it will take time to explore the PDS for opportunities. Numerous studies, papers, and articles suggest that high inflation is going to be with us for a long while. Which means that the time invested to improve the system should allow the ROI to be realized in the current circumstances and any changes implemented to pay dividends even after inflation is tamed.

  • How Well do You See This System?

    How Well do You See This System?

    Most organizations have this system but many are missing the opportunity to optimize it. That’s because nearly everyone is familiar with each system component, however, few see how they work in concert. This difficult-to-see system is the people development system. It is responsible for many, many deliverables with regard to finding, training, and retaining people. By many measures, it is the most important system within the organization because it empowers all of the other in-house systems. The PDS underpins numerous relationships and fosters communication across the organization and, for those that choose to maximize its performance, it offers opportunities to realize gains and improvements that otherwise might go unrealized.

    More than the sum of its parts  

    The PDS encompasses all necessary steps that bring people into the organization and connects them to organizational activities. But it is more than that. It may be more commonly known as workforce development or perhaps the human resource system, but I prefer the name People Development System because it is a reminder that real people with real names and real faces are the ultimate focus of these processes. This system is the mechanism by which value is exchanged; the value that the individual brings and the value that the organization brings. The PDS humanizes business plans. That is; it facilitates the human interactions that power those plans. The five functional components of the PDS are:

    Communication Channels

    Within the system, communication should occur all through the PDS. For example, information is passed through the system to determine performance, identify needs, and for planning and additions, etc. A well-connected PDS will pass communication through these five areas so that the different stages of the systems are all aiming for the same outcomes and using the same measures. Communication from the system to the team member begins in the recruiting process and that effort should become an ongoing conversation throughout their tenure. There should be a continuity to those conversations that both parties value and honor. To optimize the PDS, the organization can closely examine these communication connections and the tools and data used. Even if the current methods are good, there might be opportunities to make them better.  

    The PDS communicates via:

    • Data – what is happening, performance measures, system conditions, etc.
    • Artifacts – development pathways, reports, storyboards, etc.
    • Leadership – talking about the PDS, conveying info through the PDS, one-on-one discussions, and generally managing the system.

    To get the most out of each of these, a close examination might reveal some improvement possibilities. Are we getting all the data we need? Can all stakeholders see the PDS and how it is performing? Are leaders (this includes all leaders, not just the HR pros) equipped to manage the PDS effectively?

    Developing Relationships

    All five functional areas of the PDS are relationship driven. When a new team member is added, the obvious intention is that they will experience all five dimensions of the system. An easy analogy might look like this:

    Creating conditions and mechanisms that foster strong relationships can add strength to the organization. Conditions are mostly a factor of the organization’s culture. Does it support relationship building? Tools can include development pathways and career ladders, while leadership development strategies can help build stronger coaches, more empathetic leaders, and better communicators. Continuous improvement here can pay huge dividends.

    Hiding in Plain Sight

    As the PDS functions, significant system processes are transactional and therefore hard to recognize. Some aspects are visible – job postings, onboarding plans, training schedules, etc. However, crucial conversations occur at different times, development plans are discussed privately, appreciation activities are held, and coaching and mentoring play out somewhere in the organization. A visible system like that involved in the manufacture of some object is easy to see. The PDS is a non-linear system, with functions happening in various places and at various times all over the organization. A system like this can be easily overlooked for improvement opportunities.

    What if you didn’t have to rely on an image that pops into one’s head when the PDS was discussed? Some system functions are invisible and happen “behind the scenes” so to speak. But a flow map and some simple graphics could help the team begin to define the connections and their importance. Development pathways (a.k.a. learning plans, progression plans, etc.) can also help because these can be used throughout the PDS journey from recruiting through performance management. Helping employees make this personal connection to the big picture could potentially heighten engagement. Ideally, making the PDS visible to all stakeholders could help them relate to the system in a more meaningful way.

    Finding the Potential

    The processes that organizations use to find, train, and retain people is a dynamic system that can be difficult to see. This system, like all others, is open to the concepts of continuous improvement. A good place to begin is to look more closely at the whole system, the connections between the five areas, the tools, the data, and the leadership that administers the system. There are certainly benefits to be found by optimizing this system. This process, like all continuous improvement efforts, takes time and effort, however, the payoff can strengthen the most important of organizational systems.