Talent Edge Weekly - Issue #263

24 questions for manager-direct report performance check-in discussions, an alternative to the performance-potential 9-box tool, skill-based talent practices, and AI in the workplace.

SPONSORED BY

Welcome to this week’s issue of Talent Edge Weekly!

A special shout-out to Ryan Johann, Senior Director HR Operational Excellence at ADT, for referring new subscribers to Talent Edge Weekly. Thank you, Ryan, for your support of this newsletter!

Not subscribed to Talent Edge Weekly? Subscribe here for free!  

PRESENTED BY SelectSoftware Reviews (SSR)

You can now use SSR's free HR software matching service to find the best HRIS, ATS, and Payroll Software for your company.

SSR's HR software advisor will tailor a vendor shortlist based on your unique needs, packaged with advice to save you time and money. No fees, no commitments. Join over 15,000 companies who have found the right HR software with SSR!

If you want to share your brand, product, or service with 40,000+ Talent Edge Weekly subscribers, learn how to become a potential sponsor.

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.

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

Let’s dive in! ⬇️

THIS WEEK'S EDGE 

PERFORMANCE MANAGEMENT

My new cheat sheet with questions across 8 categories to enable more effective 1:1 discussions.

Over the past few weeks, I’ve shared two of my resources on performance management to help leaders and their teams strive to meet or exceed year-end performance goals. One included actions managers, leaders, and employees can take to enable year-end goal achievement. The second was a summary of indicators when performance goals may be at risk. To augment these resources, here’s my cheat sheet with 24 example questions across 8 different areas managers can draw from for 1:1 performance check-in discussions with their direct reports. For example, under the Progress category, a few questions are: "What key 'wins' have you achieved on your projects and goals since our last meeting? How can you build on your recent achievements to maintain momentum?" In the Goal Alignment section: "Are you able to focus your time on the most important priorities? What adjustments can we make to better align your work with our most critical objectives?" For non-managers without direct reports, these questions can help prepare for and set the tone for performance check-ins with their managers.

LEADERSHIP POTENTIAL

Allan H. Church & Janine Waclawski explain why the performance-potential 9-box is inherently flawed for determining potential. They share a modified approach.

A common tool for evaluating employee potential—the likelihood of successfully performing in larger, more complex roles—is the 9-box grid, which assesses performance on one axis and potential on the other. Despite its popularity, many find it difficult to use effectively, often struggling to differentiate potential. In this new article, Allan Church and Janine Waclawski explain why the 9-box is inherently flawed for determining potential. They propose an alternative approach that avoids using performance as a determinant of potential. Instead, they suggest that performance should act as a gatekeeper for talent discussions (only including people in the 9-box if their performance is average or better), not as a proxy for future potential, for three reasons: 1) research shows current performance only predicts future performance in similar roles; 2) performance ratings are not objective measures; and 3) performance is not normally distributed, making distinctions like a 3 versus a 4 on a 5-point scale almost meaningless. They outline five steps to improve the 9-box model, including combining internal judgments of potential (designated potential) with an objective, data-driven assessment process (assessed potential). Other practical ideas are discussed that will help organizations reevaluate their approach to assessing potential.

SKILL-BASED TALENT PRACTICES

My curated list of 5 resources on skills-based talent practices—from validating workers’ skills to implementing AI-based skill platforms.

P.16 of Resource 1

As I continue to receive many requests for resources on skill-based talent practices, here are 5 resources that will be of interest. Resource 1. A 56-page playbook by the Business Roundtable Multiple Pathways Initiative on aspects of skill-based practices, including validating workers’ skills, tactics to connect employees with the right growth opportunities, measurements that truly indicate success in skill-based approaches, and the role of tech in scaling skills-based mobility. Resource 2. A report by Harvard Business School and The Burning Glass Institute examines a study on the impact of removing academic degree requirements on the increased hiring of candidates without degrees. Resource 3. A report by Talent Strategy Group raises 17 questions that enable HR practitioners to think critically about their organizations’ pursuit of becoming a skills-based organization. Resource 4. The Conference Board shares how Ericsson implemented its journey to becoming more skills-based. Resource 5. MIT Center for Information Systems Research presents a case study detailing how Johnson & Johnson (J&J) leveraged AI to assess its workforce’s current skills. I hope these resources provide you with diverse views, perspectives, and practices on different aspects of skills-based organizations.

AI IN THE WORKPLACE

Discusses how organizations should allow flexibility in permitting workers to bring AI into the workplace while managing risks.

According to a recent Microsoft and LinkedIn report, 75% of knowledge workers now use AI at work, with 78% adopting Bring Your Own AI (BYOAI) practices. BYOAI involves employees using unvetted, publicly available AI tools like ChatGPT and Claude AI for work. While these tools enhance productivity and creativity, they pose risks such as data breaches and intellectual property issues. This new article suggests that organizations should adopt structured approaches that balance innovation with risk management instead of banning these tools. The three solutions include: Cross-Functional Leadership and Guidelines: Establish clear guidelines, developed by cross-functional teams, that allow responsible experimentation while mitigating risks. Training and Communities of Practice: Provide ongoing training in AI skills and ethical use and foster communities for continuous learning. Sanctioning a Limited Set of Tools: Offer approved AI tools from trusted vendors to ensure secure usage and encourage innovation. As organizations experiment with GenAI to identify scalable AI solutions that result in a true return on investment, here is a recent BCG article that examines GenAI through the lens of measurable economic impact rather than just technological adoption.

AI IN THE WORKPLACE

Explores the potential impact of GenAI on replacing work tasks, skills, and jobs.

In this new report, researchers evaluated GenAI's ability to perform over 2,800 job-related skills, focusing on three core areas: 1) theoretical knowledge, 2) problem-solving ability, and 3) the necessity of physical presence in skill execution. In summary: None of the 2,800+ skills evaluated were found to be “very likely” to be replaced by GenAI. Over two-thirds (68.7%) of skills were rated as “very unlikely” or “unlikely” to be replaced, while 28.5% were seen as potentially replaceable with further advances in technology and workplace adjustments. GenAI was more likely to replace skills in areas that rely heavily on theoretical knowledge and digital problem-solving, such as roles like software development, where tasks involve coding, debugging, and other digital tasks. Practical Implications: GenAI is more likely to support workers than fully replace them, especially in roles that require hands-on execution. For now, human oversight remains crucial to guide and refine AI outputs. As a bonus, I am resharing two resources: A Deloitte AI Institute report, which includes a framework for determining which work tasks are best performed by a) AI, b) humans with the help of AI, and c) humans by themselves. An Accenture report, which includes a framework for categorizing four types of impacts that AI can have on jobs and work tasks.

MOST POPULAR FROM LAST WEEK

TALENT PRACTICES AND TRENDS

A new 42-page report covering HR practices, recruitment strategies, flexible working, selection processes, talent management, and workforce planning.

Page 35 of the report

One data point on workforce planning to highlight is that organizations vary in how far ahead they plan for current and future workforce needs. While 31% of organizations take a short-term approach (up to six months), 18% plan more than two years ahead, with larger organizations tending to plan further into the future.

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.

Partial view of tracker on brianheger.com

A few job cuts announced this past week:

  • CVS Health Corp. (NYSE: CVS). The pharmacy and healthcare chain is laying off 2,900 employees, representing less than 1% of its workforce, primarily in corporate roles. The layoffs will not impact front-line jobs in stores, pharmacies, and distribution centers.

  • Pfizer Inc. (NYSE: PFE). The multinational pharmaceutical company is laying off 210 employees in Ireland as part of cost-cutting measures affecting manufacturing staff. The layoffs are part of Pfizer's global plan to reduce costs by USD 4 billion by the end of the year, with further reductions expected by 2027.

  • Samsung Electronics. The world's largest maker of memory chips and smartphones is laying off workers in Southeast Asia, Australia, and New Zealand as part of a global plan to reduce its headcount by thousands of jobs. The layoffs could impact up to 10% of the workforce in these regions, with similar cuts planned for other overseas subsidiaries.

Click here to access all listed announcements.

CHIEF HR OFFICER HIRE OF THE WEEK

This past week, 10 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 hire of the week is:

Secureworks (ATLANTA, GEORGIA) [NASDAQ: SCWX]—a global leader in cybersecurity—announced the appointment of Alberto B. Galarza as Chief Human Resources Officer. He joins SecureWorks from TELUS Digital, where he served as Global Vice President of Human Resources since 2016.

Alberto B. Galarza

Never miss another Chief HR Officer announcement. Subscribe to CHROs on the Go with a monthly or yearly subscription and gain immediate access to +4000 (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

Catch up on what you may have missed from me on LinkedIn:

To make sure you don’t miss my LinkedIn posts, follow me!

FROM ME ON X

LEADERSHIP

TALENT EDGE WEEKLY REWIND

RETURN-TO-OFFICE

This study delves into 137 S&P 500 firms that publicly announced RTO mandates, examining their financial performance on the stock market before and after RTO implementation.

No significant changes were observed in the financial performance or stock market value of these firms after RTO mandates. Glassdoor data suggests that RTO mandates negatively affected employee satisfaction.

THE BEST OF SEPTEMBER 2024

Did you miss the “Best of September ” issue of Talent Edge Weekly? If so, check out issue #262, which includes 20 of the most popular resources from the month.

If you are not already signed up to receive Talent Edge Weekly,  subscribe here to receive future issues. It’s FREE!

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.

Talent Edge Weekly is written by Brian Heger, a human resources practitioner. You can connect with Brian on Linkedin, X, and brianheger.com