HCM GROUP

HCM Group 

HCM Group 

Using a matrix-based approach to inform talent decisions with precision and empathy

Introduction: Why Strategic Segmentation Matters

In the evolving world of work, the one-size-fits-all approach to talent management is not only outdated—it’s costly. With increasing pressure on HR to deliver both people and business outcomes, we must shift from mass HR programs to targeted strategies that align with individual talent profiles and enterprise priorities.

Segmenting employees by value contribution, future potential, and career aspirations enables HR to prioritize investments, shape personalized experiences, and build robust pipelines for critical roles. It moves the conversation beyond performance alone and toward sustainable, human-centered workforce planning.

This guide walks you through the matrix-based approach for segmenting talent across three core dimensions, providing both structure and narrative to inform data-backed yet empathetic decisions.

1. Define the Purpose of Segmentation

Before building your matrix, be clear about what you're trying to solve. Common objectives include:

• Prioritizing development investments based on future value creation
• Informing succession planning and internal mobility strategies
• Personalizing career development aligned with individual motivation
• Allocating limited L&D resources toward critical roles or high-leverage talent

 Example: A technology company aims to identify mid-level employees with both high contribution and strong aspirations to grow into cross-functional leadership roles. Segmentation informs targeted development programs and mentoring schemes.

2. Clarify the Segmentation Framework: The Three Core Axes

Your segmentation model will assess employees along three complementary dimensions:

a) Value Contribution

Represents current impact on business goals and delivery.

• High: Delivering measurable, consistent, and strategic results
• Medium: Meeting expectations with room to increase impact
• Low: Inconsistent delivery, may require realignment or support

b) Potential

Reflects the capacity to grow into broader, more complex, or senior roles in the future.

• High: Learns fast, adapts well, leads beyond authority, demonstrates growth mindset
• Moderate: Solid performer with moderate learning agility
• Low: Prefers depth over breadth; limited stretch observed

c) Career Aspirations

Indicates the employee’s motivation and direction for their career progression.

• Vertical: Aspires to move up into leadership or more senior positions
• Lateral: Prefers variety, skill development, or cross-functional exposure
• Expert: Interested in deepening technical or subject matter expertise
• Stability-seeking: Values role consistency, work-life balance, and predictability

Tip: Use validated assessment tools, career conversations, and manager insights to capture career aspiration data—not just gut feel.

3. Build the 3x3 Talent Segmentation Matrix

Combining these dimensions allows for multi-layered segmentation. The most common and practical model uses:

• Y-axis: Value Contribution (Low, Medium, High)
• X-axis: Potential (Low, Medium, High)
• Overlay layer: Career Aspirations (used to nuance development strategies)

This results in nine core talent segments, each offering insight into current and future talent priorities.

Example Grid:

Add career aspiration overlays to guide specific interventions.

4. Gather the Right Data Inputs

Design a data collection strategy that integrates subjective insights with objective evidence:

Performance & Contribution

• Recent performance ratings or 360s
• Business KPIs or individual OKRs
• Peer/client feedback

Potential

• Talent reviews using 9-box methodology
• Manager observations of agility, collaboration, influence
• Leadership potential indicators (e.g., Hogan, Korn Ferry assessments)

Career Aspirations

• Career conversations (structured interviews or surveys)
• Data from talent marketplaces or mobility platforms
• Learning history and participation in stretch assignments

Example: During talent reviews, managers use a guided toolkit to assess potential against defined leadership competencies and log career aspirations gathered from recent 1:1s.

5. Facilitate Talent Calibration Sessions

Avoid individual bias by using group-based calibration. Bring together HRBPs, managers, and functional leaders to collectively review and place employees into segments.

• Focus on behaviors and business impact, not just personality
• Challenge assumptions with data
• Ask: "Has this person demonstrated readiness, or just ambition?"
• Highlight aspiration mismatches (e.g., low potential but high leadership desire)

Dialogue tip: “Dominika is a strong contributor and sees herself leading a team. However, her stakeholder influence needs development. Can we offer a mentoring assignment before confirming a path to team leadership?”

6. Use the Segmentation to Drive Differentiated Strategies

Here’s where segmentation creates ROI. Each segment should receive tailored support, not generic programs.

Segment-Based Talent Actions:

Example: An operations lead identified as a Core Professional with lateral aspirations was given a 6-month job rotation into supply chain strategy to broaden experience and increase engagement.

7. Communicate with Empathy and Clarity

Labels should inform strategy, not define people. Segmentation insights are most powerful when used for:

• Enabling career conversations
• Identifying development focus
• Informing succession plans
• Customizing rewards and recognition

Tip: Never share segmentation categories directly with employees as “labels.” Use the insights to enhance dialogue, not limit it.

8. Refresh and Review Annually

Segmentation is not static. Employees grow, plateau, change aspirations—or exit. Refresh the model at least once a year.

• Integrate insights from performance cycles
• Update with new manager feedback and employee inputs
• Adjust frameworks based on organizational evolution

Example: A global retailer added a "Digital Pathfinder" category to its matrix after realizing the growing importance of digital fluency in frontline and merchandising roles.

Closing Reflection: Segmenting with Precision and Humanity

Strategic segmentation is a powerful tool, but it demands maturity. When executed thoughtfully, it enables HR leaders to allocate development resources smartly, retain high-value talent, and design experiences that resonate with individuals.

Done poorly, it can entrench bias and disengage those who feel boxed in.

As HR leaders, our role is to ensure that data enhances, not replaces, our empathy. Use segmentation not to judge, but to unlock. Let it be the foundation of strategic people decisions that serve both individual growth and business success.

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