GDS International - HR - Summit - APAC - 1

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Talent Mobility in Australia

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GDS International - HR - Summit - APAC - 1

  1. 1. TALEO RESEARCH WHITE PAPERAustralia Talent Mobility2011
  2. 2. Table of Contents Executive Summary.................................................................................................................. 3 Talent Landscape......................................................................................................................... 4 Talent Mobility Momentum............................................................................................ 5 Talent Mobility and Technology.............................................................................. 6 Strategic Talent Mobility.................................................................................................... 7 Moving Forward with Talent Mobility.............................................................. 9 Barriers to Improving Talent Mobility.............................................................. 9 Analytics and Talent Intelligence....................................................................... 11 Challenges and Opportunity................................................................................... 12 Methodology................................................................................................................................... 14 Contact for Taleo Research research@taleo.com Contact for Taleo info@taleo.com2
  3. 3. Executive Summary The workplace has changed dramatically in the last ten years. A focus on globalisation, mobility, flexibility, and collaboration now characterises many working environments. Competition for top talent is motivating many companies to focus on bolstering their internal talent pools to ready themselves for future challenges. The ability to rapidly and strategically move people from role to role and function to function as business needs change is referred to as talent mobility. To further understand the current attitudes and approaches to talent mobility in Australia, Taleo commissioned a comprehensive survey of 100 HR decision makers in Australian companies. The research finds companies at a talent tipping point – aware of the strategic impor- tance of talent mobility strategies but held back from fully embracing talent mobility because of data and systems shortcomings. The Taleo Talent Mobility Survey finds Australian companies at different points along the journey to strategic talent mobility with both opportunities and the desire to improve. Highlights of the research study include: >> Nearly half (45%) of respondents expect the size of their workforce to increase in the next 12 months. >> Just four out of ten respondents (39%) are confident their company currently has the best people in the right places to drive growth. >> Only 36 per cent highly rated the quality of leadership pipeline / successors in their organisations. >> All respondents believe it is important (34%) or extremely important (65%) to have visibility of talent needs and gaps for critical roles and to plan accordingly. >> Most companies are further along in their cultural and process readiness for talent mobility than they are in their technology readiness; just 29 per cent of respondents rate themselves above average for technology to support a talent mobility strategy, but 49 per cent have “a culture that supports the sharing of talent” and 37 per cent have the “necessary processes. >> One-third of organisations have no talent mobility technology at all or utilise email as a stop-gap; 27 per cent of companies are using dedicated talent management systems. >> Most respondents want a single, unified view of talent across the organization (78%) yet the majority (66%) do not have this capability today. Of those that maintain talent profiles, 19 per cent have talent profiles that include post-hire data only; 15 per cent maintain individual talent profiles that include pre-hire data. >> Most managers (54%) are not held accountable for moving talent throughout organisa- tion. 16 per cent said mobility data is traced and used to assess manager performance in their organisation. >> The top three barriers relate to technological and systematic shortcomings: o A lack of visibility into talent gaps and opportunities (52%). o The quality and reliability of employee talent data (52%). o A lack of systems / technology to support talent mobility initiatives (48%). >> Two-thirds (65%) of survey respondents regard good analytics as essential for develop- ing a strong talent mobility strategy. Survey results show a keen interest in having better quality data and insight into internal talent pools especially for risk of loss, employee development, talent profiles, and high performers. The Taleo Talent Mobility Survey shows that talent mobility is firmly on the HR agenda as Australian companies look to grow their internal talent pools and improve employee readiness. The study also shows that those companies that are implementing talent mobility strategies face a number of difficult challenges—most notably system and data shortcomings—which if addressed can help companies more effectively utilize their talent in the coming years.3 Taleo Research White Paper | Australia Talent Mobility 2011
  4. 4. Talent Landscape The Australian labour market continues to show demand. The unemployment rate was steady in June 2011 at 4.9 per cent. Nearly half (45%) of respondents to Taleo’s Talent Mobility Survey expect the size of their workforce to increase in the next 12 months. However, only four out of ten respondents (39%) are confident their company currently has the best people in the right places to drive growth. Additionally, one in five expects the number of people leaving the company voluntarily over the next 12 months to be higher, raising concerns about retention. Expected Change in Size of Workforce Next 12 Months 14% Decrease 14% 45% Stay the Same 41% Increase 45% 41% Expected Number of People Leaving the Company Voluntarily Over the Next 12 Months Compared to the Previous 12 Months 22% Higher 22% Lower 28% 50% No Change 50% 28% Source: Taleo Talent Mobility Survey Australia, Taleo Research, 201154 Per cent of Employers in With a strong macroeconomic climate and a stable job market that is trending towardAustralia Struggling to Fill Jobs; less turnover, talent mobility strategies in Australia should be focused on growth andAustralia ranked fourth in the world employee development through stretch assignments. Talent mobility can also befor skills shortages. employed as a hedge against turnover and as a mechanism to attract new talent. Source: The Manpower Employment Outlook Survey, 14 June 2011 4 Taleo Research White Paper | Australia Talent Mobility 2011
  5. 5. Given the difficulty for many companies in acquiring skills through hiring, Australian organisations must also make the most of the people already in place by balancing the experiences and skills that organisations need to drive the business forward against the capabilities and aspirations of individuals through a focus on talent mobility. By strategi- cally redeploying human capital in response to new opportunities, Australian companies can maximize growth by assigning proven talent to critical initiatives. While employee turnover is flat or slightly positive, it’s also true that for every one company expecting to decrease it’s headcout, three plan to hire more workers. This suggests that a strategic focus on retention would be a smart move. Unfortunately, a majority of survey respondents cite better opportunities, better salaries, and benefits packages offered by other companies as key contributors to retention difficulties within their organisations which are factors outside their direct control. By providing existing employees with new opportunities through talent mobility strategies, particularly stretch opportunities that contribute to professional growth and development, companies can reduce turnover risk. Identified internal shortcomings related to turnover include matching roles to employee capabilities and aspirations (51%) and a lack of information relating to these capabilities and aspirations (31%). Talent mobility strategies, supported by a robust technology infrastructure can address both of these key challenges. While the main objectives for talent mobility efforts might be focused on growth and turnover reduction, it’s also true that a commitment to career development through talent mobility can also help organizations attract high quality talent, which may indirectly address some of the difficulties in hiring for skilled positions. Talent mobility programs are particularly attractive to those candidates who want to make an immediate impact but also grow with the organization over time. Talent Mobility Momentum Momentum for talent mobility appears to be building with companies readily recognising its relevance and importance in their workplaces. Most respondents agree that the cur- rent economic climate has led to an increased focus on talent management, and many report a greater focus on retaining rather than recruiting talent. Additionally, almost all respondents (95%) agree they have critical roles in their organisa- tion without which their company would suffer. These include technical and IT, finance and legal professionals, and customer service job functions which are considered to be especially critical in terms of driving future growth, yet are often hard to fill. Work Changes - From Increasing Demands to Career Development While the last decade saw the growth of portfolio careers, work-life balance, and “sea-change” lifestyle jobs, this new decade is bringing back some new stability. With the ageing population will come an ageing workforce, mass retirements, a skills short- age, and a succession planning challenge. Over the next decade 40% of today’s senior leaders will reach retirement age. Already the average age of an employed person in the education sector is 44, and in the health sector it is 45. Therefore there will be a premium paid to employees who can gain experience in a career, climb the ranks within an organisation, and move into leadership positions. While flexibility, job variety, collab- orative leadership models, and work-life balance will remain part of employment, there will be a return to training, skills development, longer job tenure and stability. Mark McCrindle, Top 10 Trends of the New Decade: 2010-2020, www.mccrindle.com.au5 Taleo Research White Paper | Australia Talent Mobility 2011
  6. 6. Almost all believe it is important (34%) or extremely important (65%) to have visibility of talent needs and gaps for critical roles and to plan accordingly. Companies can look to internal mobility programs as highly effective experiential learning and development vehicles for employees. Well-designed mobility programs create pools of ready-to- perform employees who are better equipped to move into leadership positions. Yet only 36 per cent highly rated the quality of leadership pipeline / successors in their organisa- tions and just half (51%) of organisations use internal mobility as a development tool on a formal basis. Talent mobility is not just an issue for employers. More than half of HR decision mak- ers (55%) believe that it is increasingly on employee agendas when they choose an employer. In fact, 89 per cent of Australian Millennials have indicated they want to work outside their home country during their careers. The appetite and need for talent mobility is evident. There is a widespread acknowl- edgement of the value of talent mobility to help support business strategies. Yet, in practice, companies are a long way from the ideal state of having the best people in the right places to drive growth. The survey results found many companies are not well progressed on the journey to true talent mobility. Talent Mobility and Technology As with almost any corporate initiative, the right combination of culture, process, and technology are key underpinnings of any successful talent mobility strategy. A cultural proclivity towards collective success and employee development are essential as is a well-designed process. It’s equally important that the culture and process are supported with a technology platform that can capture and mine data around the internal talent pool. Unfortunately, only 29 per cent of respondents rate themselves above average for technology to support such a strategy, lower than either “appropriate culture” (49%) or “necessary processes” (37%). Without the tools and systems in place to identify the intersections between talent gaps, goals, development plans, employee aspirations, and employee capabilities, a company’s cultural readiness and well thought-out processes can only realize a small percentage of the potential impact. Respondents Rating Their Organisations Above Average for: A culture that supports the sharing of talent across the company 49% Processes that support the movement / retention of talent within the company 37% Technology / systems to support talent management / mobility initiatives 29% Companies vary in their levels of sophistication in terms of talent mobility technology. One-quarter (27%) of companies are using dedicated talent management systems. One-third of organisations have no talent mobility technology or utilise email only.6 Taleo Research White Paper | Australia Talent Mobility 2011
  7. 7. Technology Used to Facilitate Internal Mobility 27% A dedicated talent management system 27% 40% Intranets 40% None or email only 33% 33% Source: Taleo Talent Mobility Survey Australia, Taleo Research, 2011 Talent management technology can support the internal mobility process as a strategic talent strategy. This technology may power an internal career site and leverage the effi- ciency of self-serve processes. It can consist of a database of employee talent profiles and include job posting functions, a skills library, and workforce planning modules. Strategic Talent MobilitySuccessful talent mobility programs What are the risks if an organisation lacks a strong internal mobility program? Top talentyield substantial enterprise-wide may disengage or depart if they do not see a career path for themselves, or if otherbenefits including: employees are promoted or recruited from outside without the skills and competencies to do the job. Growth of the business is jeopardized if leadership pipelines are clogged>>Shorter time to productivity. with employees lacking the appropriate mix of skills and experience to step up into>>Greater employee engagement pivotal roles. and retention. Internal mobility may be viewed as a sourcing method, as a restructuring necessity, a>>Lower talent acquisition costs. consequence of a merger or acquisition, as a tool for ongoing employee development and career path planning, or a fundamental principle of workforce planning.>>Streamlined information flow. Talent mobility initiatives can range from minimal spot occurrences (tactical), to a more>>Limited competitive organized approach (systematic), to a well-calculated program that is a component intelligence leakage. of organisational talent management (strategic) with fully integrated talent processes,>>Stronger leadership teams. systems, and data.>>Better financial performance. Using this categorisation, the Taleo Talent Mobility Model identifies best practices which are keys to an organisational talent mobility initiative. The model consists of ten different performance pillars, each of which consists of a three point scale ranging from “tactical” through “systematic” to a “strategic” level of talent mobility maturity. 7 Taleo Research White Paper | Australia Talent Mobility 2011
  8. 8. Talent Mobility Maturity Stages Tactical Systematic Strategic 1. All internal career opportunities NO Only within specific functions, YES accessible to all employees. regions, or business units. 2. The talent acquisition team NO Only when employees apply YES considers internal talent for vacancies. acquisition or deployment as part of its mission. 3. A single talent profile is stored for NO Yes, but includes post-hire Yes, includes pre-hire data. each employee. data only. 4. Succession planning is in place. Not at all. Just for executive levels. For all critical roles. 5. Internal mobility is used as a NO Yes, but not on a formal basis. Yes, mobility assignments map to development tool. employee development plans. 6. An internal mobility policy is NO For international assignments only. Yes, for all internal moves. in place. 7. The percentage of positions filled 20% or 20-40% 40%+ with internal candidates is known.4 Unknown. 8. Technology is used to facilitate None or Intranet Yes, there is a dedicated talent internal mobility. email only. management system. 9. Mobility data is tracked to NO Yes, but not on a consistent basis. YES measure the impact on organiza- tional readiness, talent gaps or bench strength. 10. Managers are held accountable NO Yes, but on an informal or Yes, mobility data is tracked for moving talent throughout infrequent basis. and used to assess the organization. manager performance. Source: Taleo Research No survey respondents rated their organisation as strategic on all ten factors or tactical on all ten factors. Survey responses were consistent regarding the desirability and opera- tion of some strategic talent mobility practices: >> The majority of respondents agree that talent mobility should be pervasive throughout a company, rather than selective (55%) and 80 per cent of respondents report having internal career opportunities accessible to all employees. >> Three-quarters of respondents report that their talent acquisition team considers internal talent acquisition or deployment as part of its mission. >> 64 per cent have succession planning in place for all critical roles. In contrast, the acknowledgement of the value of certain strategic practices does not align with organisational actions: >> 78 per cent believe it would be useful to have a single, complete view of talent across the organisation yet two-thirds (66%) do not have a single talent profile for each employee.8 Taleo Research White Paper | Australia Talent Mobility 2011
  9. 9. >> The majority of organisations (55%) have no internal mobility policy in place. >> 37 per cent either do not know the per cent of positions filled with internal candidates or fill less than 20 per cent internally. >> Most managers (54%) are not held accountable for moving talent throughout organ- isation. Only 16 per cent said mobility data is tracked and used to assess manager performance in their organisation. Moving Forward with Talent Mobility HR decision makers believe that their companies are doing a good job supporting the most well-established and well-understood type of mobility: the vertical movement / promotion of people within departments and functions into more senior roles. 49 per cent believe they are effective at this type of mobility. The movement of people horizontally or laterally between departments, business func- tions, or units is a different story—36 per cent consider themselves to be effective at this type of mobility. Geographical mobility is the area where companies currently consider themselves weakest, with just 27 per cent claiming to be effective, and 35 per cent rating themselves as poor. Relative Effectiveness in Talent Mobility Vertical movement or promotion of people within departments, functions, 49% into senior roles Horizontal or lateral movement of people between departments, 36% business units, functions Geographic movement of people into different sites, regions, countries 27% Source: Taleo Talent Mobility Survey Australia, Taleo Research, 2011 Barriers to Improving Talent Mobility While talent mobility is increasingly on the agenda of companies, there are very real barri- ers for companies in improving this critical aspect of their business. These shortcomings are preventing companies from having ready a truly mobile talent pool. The top three barriers relate to technological and systematic shortcomings – specifically, a lack of visibility into talent gaps and opportunities (52%), the quality and reliability of employee talent data (52%), and a lack of systems / technology to support talent mobility initiatives (48%).9 Taleo Research White Paper | Australia Talent Mobility 2011
  10. 10. Barriers to Improving Talent Mobility Lack of visibility into talent gaps and opportunities 52% Quality and reliability of employee 52% talent data Lack of systems/technology to 48% support talent mobility initiatives Source: Taleo Talent Mobility Survey Australia, Taleo Research, 2011 This corroborates the survey findings around individual talent profiles. Only one-third (34%) of total respondents have individual talent profiles. 19 per cent have talent profiles that include post-hire data only. Just 15 per cent of all respondents maintain individual talent profiles that include pre-hire data. Single Talent Profile for Each Employee 15% Yes, includes pre-hire data 15% No 66% 19% Yes, post-hire data only 19% 66% Source: Taleo Talent Mobility Survey Australia, Taleo Research, 2011 Individual talent profile reports that include structured information on previous job roles, skills, competencies, development plans, and goals are the core tool to identify and evaluate talent in support of mobility efforts. The lack of comprehensive talent profiles therefore can severely limit the business impact of talent mobility initiatives. Effective and efficient internal talent redeployment requires true Talent Intelligence: the ability to capture relevant data about organization talent, the ability to derive insights from this data, and the ability to act on these insights. The individual talent profile is the aggregation point for employee data and provides the foundational dataset to support internal mobility. In the absence of a unified talent profile, it becomes very difficult for managers to marry employee aspirations, fit, and experience to emerging opportunities or new roles. It’s also nearly impossible for employees to self-manage their own mobility since most companies also lack visibility on talent gaps and opportunities. If managers and employees lack the necessary data sets to effectively manage individual mobility, it logically holds that HR professionals also lack insight into the larger strategic picture around talent – workforce planning, skill gap analysis, training and development planning priorities, and quality of succession pools. Without core technology invest- ments, it’s impossible to even maintain a skills inventory database, let alone a global succession pool of qualified candidates who speak Chinese.10 Taleo Research White Paper | Australia Talent Mobility 2011
  11. 11. Analytics and Talent Intelligence The implementation of a comprehensive internal mobility program can be supported by a holistic talent management technology platform that provides visibility for employees, managers, and recruiters/talent managers. The key to mining Talent Intelligence from mobility initiatives starts with access to the most important talent data. For example: >> Employee experience before and during current employment with skills and competencies. >> Employee career ambitions to align development plans and identify succession candidates. >> Employee performance ratings to ensure high performers are identified and retained. >> Succession plans to understand transferable skills and seek out high potential employees. >> Performance information that identifies future leadership potential to fill the leadership pipeline. >> Critical skill sets that are at risk or the gaps with skills that are not available. This data cannot be collected as an afterthought or as a separate process. If this data collection is not captured and maintained through day-to-day talent processes, it quickly becomes out-dated and counterproductive. Companies can solve this problem by implementing a single, unified talent management system and data model. This allows users to access and manage talent data as part of the normal process of hiring, onboarding, conducting performance reviews, and creating development plans for their employees. As these talent transactions happen in each pillar within the talent management suite, the core talent profile is updated and maintained within the unified data model. In some systems, these talent processes and core data model updates can even include information from third party systems, such as the importing of LinkedIn profiles, competency assessments from companies like DDI, or course completions from web-based training vendors. While the data capture is critical, true Talent Intelligence also requires that employees, managers, and HR professionals can all derive meaning and insights from the data. Central to this effort are unified reporting and analytics around the many dimensions of talent management. Two-thirds (65%) of survey respondents regard good analytics as essential for developing a strong talent mobility strategy. Survey results show a keen interest in having better quality data and insight into internal talent pools especially for risk of loss, employee development, talent profiles, and high performers.11 Taleo Research White Paper | Australia Talent Mobility 2011
  12. 12. Company Would Benefit from Better Quality Data and Insight Risk of loss for critical 86% employees / positions Employee development 75% plan progress High performers by 73% division / department Individual talent profile reports (including skills, development 72% plans, goals Employee development plan 56% submission rates Source: Taleo Talent Mobility Survey Australia, Taleo Research, 2011 A prior Australian study on the importance and access to reliable Talent Intelligence found significant gaps in talent data and analytics: >> Just 57 per cent of Australian respondents could identify their divisional or departmen- tal top performers. >> 80 per cent wanted data on succession bench strength but only 29 per cent had access to reliable data on it. >> For nearly all (98%), data on risk of loss of critical employees/positions had importance but only one-third (37%) of respondents had access to data that is reliable. >> 88 per cent wanted data on top performers by division but only 26 per cent knew whether those top performers were on a career path. Challenges and Opportunity Talent mobility—the ability to strategically and proactively move people within the business—resonates strongly as companies adapt to changing market conditions and look to bolster their internal talent pools. The Taleo Talent Mobility Survey provides a comprehensive view of talent mobility across Australian enterprises. Study findings indicate that although the importance of talent mobility is widely recognised, the extent to which companies are effectively moving people within their businesses and balancing business needs and individual aspirations and skills varies widely. Vertical mobility, or promotion, is the most familiar and widely adopted mobility practice. Other types of mobility—including horizontal or geographical mobility—are less well established. The use of technology to support talent mobility is limited, though it is clear that there are notable business benefits associated with a more sophisticated level of technology usage. Boosting the leadership pipeline, supporting organizational agility and business growth, and positively impacting retention are among the benefits. Secondary benefits include employee engagement, productivity, and attracting top talent. Given Australia’s continued growth and overall economic strength, these issues are top of mind for many executives and talent management professionals.12 Taleo Research White Paper | Australia Talent Mobility 2011
  13. 13. The War for Talent is not just about attracting talent but also about mobilising and optimising the talent pools that already reside within businesses. Talent profiles of employees—their skills, abilities, experience, and performance—can provide the foundational information for matching to internal opportunities. When the corporate tal- ent mobility process is optimized, organisations can shift resources within the business to where they are most suited without the costs and delays of a conventional, external recruiting process. At its most effective, talent mobility is a component of a total talent management strategy which unifies talent acquisition, performance and compensation, succession planning, and employee development, not just across processes, but within the core data model itself. The ability to capture meaningful employee data, develop insights from that data, and then act upon it is essential for nearly all strategic talent management efforts, but for talent mobility initiatives, this ability is a critical driver of success. The Australian companies that will be best placed to grow tomorrow will be those that have the processes, culture, and technology in place today to adopt a truly holistic approach to talent mobility in support of effective organisational talent management.13 Taleo Research White Paper | Australia Talent Mobility 2011
  14. 14. Methodology The survey was comprised of 100 telephone interviews with HR decision makers in Australian businesses with more than 200 employees in a variety of industries with concentrations in construction / manufacturing, retail / wholesale, business services, public sector, IT / technology, financial services and pharmaceutical. The research was conducted in Q3 2011. Sample Breakdown: Company Size 17% 1000+ employees 51% 200 – 299 employees 14% 18% 51% 300 – 499 employees 18% 500 – 999 employees 17% 14%14 Taleo Research White Paper | Australia Talent Mobility 2011
  15. 15. 15 Taleo Research White Paper | Australia Talent Mobility 2011
  16. 16. San Francisco Bay Area Quebec London Sales and InformationHeadquarters +877.81TALEO (1.877.818.2536) Tel: 418.524.5665 Tel: +44 208.987.1210Tel: 925.452.3000 Fax: +44 208.987.1285 Corporate HeadquartersFax: 925.452.3001 Sydney 888.836.3669 Paris Tel: +612.9356.1900Jacksonville Fax: +612.9475.1099 Tel: +33 (0) 1.78.42.3838Tel: 904.520.6000 Fax: +33 (0) 1.78.42.3500Fax: 904.520.6146 Melbourne Amsterdam Tel: +613.9626.2413Chicago Fax: +613.9626.2455 Tel: +31 (0) 20.658.6699Tel: 630.983.9609 Fax: +31 (0) 20.658.6111Fax: 630.983.9509New YorkTel: 212.809.4364About TaleoLeading organizations worldwide use Taleo on demand talent management solutions with Talent Intelligence to attract, develop, engage, and retain their workforce forimproved business performance. Copyright © 2011 Taleo Corporation. All rights reserved. No portion of this document may be reproduced in any form without the prior writtenpermission of Taleo Corporation. Taleo and all Taleo product and service names mentioned herein are trademarks or registered trademarks of Taleo in the United States,France, The Netherlands, U.K., Canada, Australia, and several other countries. All other product and company names mentioned herein may be the trademarks of theirrespective owners. 0486 0811

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