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THIS WEEK'S CONTENT

Below is a quick overview with links and brief descriptions of the topics covered in this issue. If you're interested in my deep dive, including bonus resources, you can read the full newsletter.

• 10 Statements to Evaluate Your Workforce Planning Effectiveness | Brian Heger | My new worksheet to help organizations identify opportunities to strengthen their workforce planning.

• 24 Succession Planning Metrics and the Questions They Help Answer | Brian Heger | My new succession planning metrics cheat sheet, organized by key questions.

• Where Data-Driven Decision-Making Can Go Wrong | Harvard Business Review | Shares 5 pitfalls leaders often encounter when interpreting research studies or data, along with key questions to help mitigate them. Implications for HR and workplace-related studies.

• Build a Recruiting Function That Scales With Your Hiring Demand | Gartner | Shares 3 strategies to help recruiting functions adjust and scale up or down due to changes in hiring needs.

• What’s Next for the FTC’s Ban on Noncompetes? | MIT Sloan Management Review | Explores aspects of the Federal Trade Commission's proposed rule banning noncompete clauses by addressing 5 questions.

Also, check out my job cuts tracker & Chief HR Officer hire of the week.

Brian

THIS WEEK'S EDGE 

WORKFORCE PLANNING

10 Statements to Evaluate Your Workforce Planning Effectiveness | Brian Heger

My new worksheet to help organizations identify opportunities to strengthen their workforce planning.

Improving strategic workforce planning (SWP) is a priority for many organizations. To support this effort, I've created a 10-item diagnostic to help you assess and enhance your approach. The template addresses key areas such as strategic alignment, business case and ROI, cross-functional collaboration, and scenario planning. For example, one statement prompts you to evaluate whether you have a business case for SWP that demonstrates the expected return on investment and value to stakeholders. Another asks whether you've ensured strong collaboration among key SWP stakeholders, including Talent Acquisition and Finance. There’s also a statement about whether your SWP accounts for multiple scenarios the organization may face rather than relying on a single scenario. Additionally, it asks whether you’ve developed a clear philosophy on whether your SWP will focus on skills, roles, or other approaches to organizing and planning work. As you review each statement, check the box if you agree, and consider unchecked areas as opportunities for improvement. Once you've identified these opportunities, determine the actions needed to close any gaps. Remember that these 10 factors are just examples and not an exhaustive list; use your judgment to include factors based on the maturity level of your organization’s SWP.

Access template

SUCCESSION PLANNING

24 Succession Planning Metrics and the Questions They Help Answer | Brian Heger

My new succession planning metrics cheat sheet, organized by key questions.

As I continue to receive requests for succession planning metrics, I’ve developed this one-page reference outlining sample options. Instead of merely listing the metrics, I’ve started with the questions each one answers. This reference categorizes 24 metrics into eight areas: Leadership Pipeline, Internal Mobility, Retention and Risk, Development and Performance, Cost and Efficiency, Employee Engagement, Talent Assessment, and Program Effectiveness. For example, under Leadership Pipeline, the question "How many potential successors do we have for each critical role?" is answered by the Bench Strength Ratio, which measures the number of qualified candidates ready to fill critical positions. Similarly, under Retention and Risk, the question "How many critical roles are at risk due to potential retirements?" is addressed by the Retirement Risk Index, which tracks the number of critical positions held by employees nearing retirement age. These metrics are just examples and may not be right for your organization; they’re intended to spark ideas so you can determine which ones—whether on this sample list or not—are most relevant to your needs. Lastly, while individual metrics are important, integrating them into a cohesive narrative that tells the full story of your succession planning efforts can help translate insights into action.

Access cheat sheet

HR EFFECTIVENESS

Where Data-Driven Decision-Making Can Go Wrong | Harvard Business Review

Shares 5 pitfalls leaders often encounter when interpreting research studies or data, along with key questions to help mitigate them. Implications for HR and workplace-related studies.

The ability to draw insights from research studies and data is an essential skill for HR practitioners, enabling them to help business leaders interpret and apply workplace and talent information more objectively. To do this effectively, HR professionals must continuously hone their data analysis skills and critically evaluate the studies that inform workplace practices. This new HBR article by Michael Luca and Amy C. Edmondson highlights the importance of critically assessing data and research before making decisions. They outline five common pitfalls leaders encounter when interpreting study results: 1) confusing causation with correlation, 2) misjudging the potential magnitude of effects, 3) a disconnect between what is measured and what matters, 4) misjudging the generalizability of findings, and 5) overweighting specific results. The article covers sample questions to help mitigate these pitfalls. For example, to address the “misjudging generalizability” barrier, sample questions to ask are: How similar is the setting of this study to our business context? Does the context or time period of the analysis make it more or less relevant to our decision? What is the composition of the sample being studied, and how does it influence the applicability of the results? HR practitioners can use this framework not only to help business leaders make more informed decisions but also to enhance their own skills as critical evaluators of research.

Read article

TALENT ACQUISITION

Build a Recruiting Function That Scales With Your Hiring Demand | Gartner

Shares 3 strategies to help recruiting functions adjust and scale up or down due to changes in hiring needs.

An organization’s hiring needs can change quickly due to economic uncertainties and shifting business conditions. Recruiting functions need to be able to adjust and scale up or down to adapt to these changes. This Gartner article provides three strategies for enabling this adaptability: 1) develop a flexible forecasting process, 2) make resourcing decisions with flexibility in mind, and 3) protect investments in talent attraction. Regarding hiring forecasts, instead of relying solely on top-down projections (e.g., business leaders work with finance, and projections are sent to recruiters), talent acquisition teams are encouraged to take a bottom-up approach, where they periodically gather input from stakeholders closer to the work (e.g., hiring managers, HR business partners). One way the Commonwealth Bank of Australia accomplishes this ongoing bottom-up approach is by using “demand-shift triggers,” such as a high variance between projected and actual job requisitions. This trigger prompts talent acquisition to meet with the business stakeholders to discuss unexpected hiring surges and determine options for managing these shifts (e.g., service trade-offs – such as increased volume but slower time to fill, or deprioritizing noncritical requisitions to meet the demand of high-priority ones). Moreover, if a business unit experiences lower-than-average attrition during economic downturns, recruiting leaders might anticipate a surge in attrition (and hence hiring demand) once economic conditions improve. Other ideas are discussed.

Read article

NONCOMPETE AGREEMENTS

What’s Next for the FTC’s Ban on Noncompetes? | MIT Sloan Management Review

Explores aspects of the Federal Trade Commission's proposed rule banning noncompete clauses by addressing 5 questions.

This article discusses the U.S. Federal Trade Commission's (FTC) April 2024 rule (proposed to go into effect on September 4, 2024), banning most non-compete clauses in employment contracts. The rule's future is uncertain due to ongoing lawsuits, with a federal court issuing a preliminary injunction against it. The article notes that business leaders should prepare for potential changes, as the rule could influence state laws and court decisions regarding noncompetes, even if it does not take effect. It answers five key questions, such as: What will be the immediate impact of the noncompete ban if it goes into effect? If the noncompete ban does go into effect, can a business be sued for failing to comply with it? What can businesses do to protect their intellectual property without noncompetes? The article also suggests that businesses explore alternative methods, such as trade-secret protections and nondisclosure agreements, to safeguard their intellectual property in a landscape where noncompetes might become less enforceable. Additionally, I am including this paper by the HR Policy Association (HRPA), Preserving the Responsible Use of Non-Compete Agreements, which offers alternative suggestions to the FTC’s blanket ban on non-compete agreements.

Read article

MOST POPULAR FROM LAST WEEK

HIGH POTENTIAL EMPLOYEES

9 Example Metrics Related to High Potential Employees | Brian Heger

My cheat sheet of example metrics to assess how effectively an organization identifies, develops, and retains its future leaders.

Includes 9 example metrics related to high potential employees. You can also view my post on LinkedIn related to this resource.

Access cheat sheet

JOB CUTS AND LAYOFF TRACKER

Check out my tracker of announcements from a segment of organizations that have conducted job cuts and layoffs since the start of 2023.

A few job cuts announced this past week:

• BioMarin Pharmaceutical Inc. (NASDAQ: BMRN). The San Rafael-based biotech company announced it is laying off 225 workers, most of whom are in California, as part of an “organizational redesign” related to cost cuts for its hemophilia gene therapy drug.

• Goldman Sachs (NYSE: GS). The bank is conducting layoffs as part of its annual “strategic resource assessment,” which regularly involves cutting 2% to 7% of its workforce based on performance, market conditions, and financial outlook. This round of cuts will impact ~1,300 jobs.

• Shell (LON: SHEL). The energy giant plans to cut around 20% of its workforce in certain oil and gas exploration and development divisions as part of CEO Wael Sawan's efforts to enhance efficiency and profitability. 

Click here to access all listed announcements.

CHIEF HR OFFICER HIRE OF THE WEEK

This past week, several new Chief HR Officer announcements were posted on CHROs on the Go, my subscription-based platform, where I track movement in and out of the CHRO role. This week’s CHRO promotion of the week is:

• Johnson & Johnson (NEW BRUNSWICK, NEW JERSEY) [NYSE: JNJ]—announced that Peter M. Fasolo, Executive Vice President and Chief Human Resources Officer, will retire at the end of this year after 16 years of service. He will be succeeded by Kristen Mulholland, effective October 1, 2024. At Johnson & Johnson since 2005, Mulholland has held key HR roles, most recently leading Global Total Rewards for J&J. ​

Never miss another Chief HR Officer announcement. Subscribe to CHROs on the Go with a quarterly or yearly plan and gain immediate access to +3900 (and growing) CHRO announcements, including hires, promotions, resignations, and board appointments.

If you are already a subscriber to CHROs on the Go, log in here.

FROM ME ON LINKEDIN

FROM ME ON X

TALENT EDGE WEEKLY REWIND

AI IN THE WORKPLACE

Best Practices for AI and Workplace Assessment Technologies | Future of Privacy Forum

This 18-page report outlines Best Practices for the development, implementation, or expansion of AI tools in employment decisions.

The report breaks down practices into six crucial areas: (1) non-discrimination, (2) responsible AI governance, (3) transparency, (4) privacy and data security, (5) human oversight, and (6) alternative review procedures.

Read report

THE BEST OF JULY 2024

Note: The Best of August will be published on September 3, 2024!

Did you miss the “Best of July ” issue of Talent Edge Weekly? If so, check out issue #251, which includes 14 of the most popular resources from the month.

Read the Best of July

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RESOURCE LINEUP

​brianheger.com provides free access to +1,300 curated articles, research reports, podcasts, and more 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 6 PM EST.