Talent Edge Weekly - Issue #143

This issue covers LinkedIn global talent trends, critical role assessment, performance management, CHRO compensation, and pay transparency.

October 30, 2022

Welcome to this week’s issue of Talent Edge Weekly—the weekly newsletter for human resources practitioners, bringing together insights about work, the workplace, and the workforce from various sources.

If you find value in this issue or any of its resources, please share them with your network by using the social media icons at the top of the newsletter.

Have a great week, and I look forward to sharing more ideas in next week’s Edge!

Brian 

Brian Heger is a human resources practitioner with a Fortune 150 organization and has responsibilities for Strategic Talent and Workforce Planning. To connect with Brian on Linkedin, click here.

THIS WEEK'S CONTENT

  • 2022 LinkedIn Global Talent Trends: Data-Driven Insights into the Changing World of Work | LinkedIn Talent Solutions | A newly updated 2022 talent trends report highlighting aspects of hiring, workforce confidence, and job candidate values, to name a few.

  • Critical Role Risk Template | Brian Heger | An editable one-page template to help practitioners gain directional insights into the level of risk exposure in their critical roles.

  • Reinventing Performance and Rewards | Gartner's HR Leaders Monthly - October 2022 | A 49-page issue containing several articles on performance management and rewards—ranging from performance discussions to pay equity.

  • 2022 CHRO Compensation and Company Performance Still Not Aligned | HRO Today Report | A 16-page report that looks at different aspects of CHRO compensation of Chief Human Resources Officers in the Fortune 500.

  • Help Wanted: What Employers Need to Know About Pay Transparency Requirements in Job Postings | The National Law Review | Provides an overview of the jurisdictions that have implemented pay transparency laws and summarizes the requirements of each jurisdiction.

THIS WEEK'S EDGE

LinkedIn has just published its updated 2022 Global Talent Trends report—highlighting aspects of: 1) hiring, 2) workforce confidence, 3) candidate values, and 4) employee growth. Regarding hiring, a sample of 14 countries shows that hiring rates have decreased in all of them since one year ago (Sept 2021 vs. Sept 2022). India had the greatest decline (18%) in hiring, and the U.S. experienced a 13% drop during the same time period. While remote-job postings on LinkedIn reached an all-time high in February 2022—representing 20% of all U.S. jobs—remote job postings fell to 14% by September 2022. Concerning candidate values, candidates now consider compensation and benefits their top priority when evaluating job opportunities, followed by work-life balance, flexibility, and upskilling. One explanation for why compensation and benefits have reclaimed the top priority spot is that candidates’ and employees’ confidence in their ability to improve their financial situation had decreased or remained low from January to August 2022. For organizations looking to retain their top talent, the report cites new data showing that employees who have moved internally (via either a promotion or lateral role change) have a 64% chance of remaining with an organization after three years; that number drops to 45% for those without an internal move. This data point reinforces why many organizations are making internal mobility a more prominent component of their talent strategy. Other ideas are discussed.

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As I mentioned in a post from a few weeks ago, while there has been a much-needed shift in expanding our view of “work” beyond the limitations of roles (e.g., skills and tasks), critical roles are still an important lens through which workforce and talent planning takes place. With this as the backdrop, here is a one-editable page template that practitioners can use to gain directional insights into the level of risk exposure in their critical positions. The template provides a quick and easy way to evaluate which critical roles might be exposed to four different risks. The four risks and their evaluation statements are: 1) Incumbent Risk. There is a low risk of the incumbent leaving the role in the near future. 2) Internal Bench Risk. The internal talent pipeline for backfilling this role is relatively strong. 3) Development Risk. Internal talent can be developed for this role within a reasonable time and cost and without disruption to the business. 4) External Talent Risk. Hiring external talent for this role can be done within reasonable time and cost and with little disruption to the business. The template provides space to enter your critical roles in column 1, and subsequent columns can be used to respond to four risk statements by putting a checkmark in the box when you agree with the risk statement. Clicking the box will automatically insert a check mark. Upon completion, the visual will show you where the greatest risk exists (i.e., empty boxes indicate high risk). A simple exercise like this can help identify and prioritize actions for reducing risk in your organization’s critical positions.

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Effective performance management (PM) happens continuously throughout the year. Nonetheless, this time of the year is often a reflection point as organizations determine what needs to be accomplished for the rest of the year and the goals and objectives they will set for the new year. As managers and leaders reflect on different aspects of PM and ways to make it more effective, this 49-page Gartner HR Leaders Monthly issue provides several articles, ranging from "Leverage Teams to Maximize Performance Management in a Hybrid Setting" to "5 Tips for Improving Pay Equity At Your Organization." Since many managers might soon prepare for an upcoming performance check-in with each of their direct reports, page 7 includes a five-point conversation framework for managers and employees to align on the employee’s current performance, the desired future performance and the steps both parties will take to get there. The five topics in the framework are: (1) the employee’s accomplishments, (2) the employee’s current projects, (3) any challenges the employee currently faces, (4) any ideas the employee has on contributing to their team or the business, and (5) any other valuable information the employee wants to share. “This approach positions the performance discussion to include what employees need, not just an evaluation of their performance, which makes the conversation feel less daunting for employees and more like a critical part of their roles.”

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The Chief Human Resource Officer (CHRO) role continues to be critical for many organizations. Over the past 90 days alone, I have tracked and posted hundreds of CHRO appointments as part of CHROs on the Go—a subscription that provides insights into hires, promotions, and resignations in the CHRO role. As the influence and responsibilities of these and other CHROs continue to grow, this recently published report notes that HR executive compensation should accurately reflect this work and its impact on company performance and metrics. To gain insight into how CHROs are compensated, HRO Today has published its third CHRO Compensation Study. The 16-page report covers various insights informed by 1) publicly available data on the Fortune 500, and 2) CHRO compensation data on 175 senior HR executives from those companies, resulting in a valid sample of 35 percent. The researchers analyzed correlations between the senior HR executive compensation, company performance metrics (e.g., earnings per share (EPS), earnings before income tax, depreciation, amortization (EBITDA), etc.). While there are various insights in the report, one of them is that women CHROs in the Fortune 500 earn an average of nearly $500,000 more (total compensation) than men—an overall difference of 12.4 percent. Page 4 of the report provides more information on this topic. Reviewing the entire report to get a holistic view of CHRO compensation versus focusing on any data point is recommended.

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Pay equity has been a topic of discussion in many organizations over the past few years. To move organizations towards greater pay equity practices, many states and localities have implemented legislation focused on mandating compensation transparency in job advertisements. For example, effective 1 November 2022, employers in New York City (with at least four employees) must include a good faith salary range for every advertised job, promotion, and transfer opportunity. The disclosure must contain the “minimum and maximum annual salary or hourly wage and all prospective applicants, including internal applicants, who are entitled to receive the disclosure when the job is posted.” California has a law that goes into effect on 1 January 2023, where employers with 15 or more employees are required to include a pay scale in job postings. These are just a few of the growing number of state and local laws implementing pay transparency requirements for job applicants. It should be noted that many of the laws apply even if an employer does not have a physical location in the jurisdiction, but where a worker could perform the job in the regulated location. This subtle distinction has several implications, especially as more organizations hire remote workers. This article provides an overview of the jurisdictions that have implemented wage transparency laws and summarizes the requirements of each jurisdiction.

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MOST SHARED RESOURCE FROM LAST WEEK

Covers the top five 2023 HR priorities and challenges. I include a bonus Gartner resource that helps summarize the core elements of an HR strategy on one page.

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CHRO APPOINTMENT OF THE WEEK

This past week there were 30 Chief Human Resources Officer announcements posted on CHROs on the Go – a subscription that provides the easiest way to stay informed about hires, promotions, and resignations in the CHRO role. This week's CHRO appointment of the week is:

To learn how to gain access to all 30 detailed Chief Human Resources Officer announcements from this past week and +1500 archived announcements, visit CHROs on the Go .

If you are already a member of CHROs on the Go, you can log in to access all of the announcements and site functionality.

TWEET OF THE WEEK

BOOK RECOMMENDATIONS

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OUR RESOURCE LINEUP

​​brianheger.com provides free access to +1,000 curated articles, research reports, podcasts, etc. that help practitioners drive better business results through strategic human resources and talent management.

CHROS on the Go is a subscription that provides the easiest and most convenient way to stay informed about Chief Human Resources Officer hires, promotions, and resignations in organizations of all sizes and industries.

​Talent Edge Weekly is a free weekly newsletter that brings together the best talent and strategic human resources insights from various sources. It is published every Sunday at 6PM EST.