Meeting the Global Challenge for TalentPresentation Transcript
Meeting the Global Challenge for Talent Professor William Scott-Jackson Director, Centre for Applied HR Research Oxford Brookes University CEO, Oxford Strategic Resourcing Ltd Oxford, UK Director, Mayo Learning International Ltd [email_address] +44 7785110910
Meeting the Global challenge for Talent: Agenda Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: the threat and the opportunity Retaining Talent
Talent Management: The threats and the opportunity
‘ War for talent’ is a recurrent theme
Intangible assets, mainly human, now represent the largest contributor to overall market value for many organisations.
The effective acquisition, management and retention of human resources has a direct and significant impact on the bottom line and on share price.
Needs surgical precision to identify, acquire and retain the key high-performing talent that will add sustainable competitive advantage
Global market for talent presents significant opportunities – and risks
Many global organisations have no resourcing strategy –
many don’t even have a manpower plan,
many don’t even know what talent they have
many don’t know what they need
War for Talent: 1998 recommendations Scott-Jackson 2006 recommendations Michaels.E., Handfield-Jones. H & Alexroyd. B (1998, The war for Talent, Harvard Business School Press We affirm all our people but invest differentially in our A,B and C players We treat everyone the same, and like to think that everyone is equally capable We fuel development through stretch jobs, coaching and mentoring Development happens in training programmes Recruiting is like marketing Recruiting is like purchasing We shape our company, our jobs, even our strategy to appeal to talented people We provide good pay and benefits All managers, starting with the CEO, are accountable for strengthening their talent pool HR is responsible for people management The New Way The Old Way We know which critical capabilities will be needed to achieve our strategy - and we know how we are going to build them We know how many we need in defined roles We know what our strategic skills gaps are and we have clear plans to fill them We recruit when we need to
Top global management issues Accenture (2005) Global survey of management issues, July 2005 26% Developing employees into capable leaders 10. 26% Being flexible and adaptable to rapidly changing market conditions 10. 27% Using IT to reduce costs and create value 8. 27% Increasing shareholder value 8. 28% Improving workforce performance 7. 29% Managing risk 6. 29% Increasing customer loyalty and retention 5. 29% Developing new processes and products to stay ahead of the competition 4. 32% Acquiring new customers 3. 33% Changing organizational culture and employee attitudes 2. 35% Attracting and retaining skilled staff 1. Percentage of respondents selecting issues Top 10 current business issues for senior executives
How has business responded?
at the top level, as a series of one-off responses to unplanned tactical issues
e.g. reorganisation, new business stream, resign, retire or die
in the mid-tiers as a tactical responsibility of specific line managers working uneasily with HR, preferred suppliers and ‘pet’ search consultants/agencies
at the lower, high volume, levels - a procurement problem to be solved at the lowest cost.
89 percent - more difficult to attract talented people now than it was three years ago, 90 percent - more difficult to retain them. Just 7 percent strongly agreed that their companies had enough talented managers to pursue all or most promising business opportunities. Only 14% strongly agreed that their companies attract highly talented people. Only 3% strongly agreed that their companies develop talent quickly and effectively. 89% said candid performance feedback was essential, only 39% said they received it ( Axelrod. E.L, Handfield-Jones. H. &Welsh T.A. (2000) War for Talent updated in 2000)
Barriers to effective Talent Management McKinsey: interviews with 50 CEOs across 29 global organisations. % of interviewees who rated obstacles amongst the 8 most critical Guthridge.M., Komm.A.B. and Lawson. E (2006) The people problem in talent management The McKInsey Quarterly 2006. 2. 6-8
Meeting the Global challenge for Talent: The Talent Strategy Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: the threat and the opportunity Retaining Talent
Talent Strategy: What it is and what it isn’t
NOT the plan for HR developments in recruitment, training, employee relations etc
NOT simply how HR will deliver various services
NOT how HR will introduce the latest HR thinking
NOT a plan for HR’s internal activities
A plan to meet strategic talent needs of the business and create competitive advantage through differentiating capabilities.
Talent Strategy: main elements
Dealing with current resource issues – keeping a ‘seat on the board’
Immediate: tactical problem solver
Meeting strategic business needs:
How will the people (numbers, skills, characteristics) required to achieve the business’ objectives be made available in the most (cost) effective way?
Define the demand (predict resource flows – in, out, across)
Review supply over the period (5 years?)
Proposals for action: costs, benefits and business case.
Medium term: enabler of strategy
Creating strategic advantage
How can we create differentiating human resources to provide real competitive advantage?
Identify potential differentiating resources
Actions to build differentiating resources
Business case to support their development
Long term: driver of strategy
Benefits summary in business terms
increase revenues, decrease costs, shareholder value, cost income ratio etc
Talent to enable business strategy Supply and Demand Questions
We will be reducing sales of ‘x’ but increasing our focus on ‘y’
We will be competing in new global territories
We will be outsourcing more but will need more people able to manage supplier relationships
We will need more specialist ……..
We will need far less ….....
We want to be seen as the most technically advanced company
All our competitors will need exploration engineers
GIS expertise is only available from 3 Universities
China is starting to hire petrochemical analysts from European Universities
European and Japanese workforce is aging
Chinese Engineering graduates are too theoretical – only 13% useful
We lose x% of our Dutch graduates within 3 years
Example – Global Oil Co We will need 200 less programmers by 2006 Resource Implications: Exit strategy? Turnover levels? Redundancy costs?
Example – Global Oil Co Actually we need 500 less Cobol programmers but 300 more C++ programmers Resource Implications: Exit strategy? Turnover levels? Redundancy costs? Recruitment? Employer of choice? Retraining?
Example – Global Oil Co By the way … we’ll need the C++ people by 2002 and some of the Cobol people till 2005 Resource Implications: Exit strategy? Turnover levels? Redundancy? Recruitment? Employer of choice? Retraining? Retention? Temporary staff?
Example – Global Oil Co The C++ will be based in Plymouth, Current Cobol people are in London Both Cobol and C++ must be experienced in ‘extreme’ programming … and don’t forget ….. Twice as many Team Leaders needed for C++ people Takes about £8000 and 12 months to retrain a Cobol programmer – 10% fail! Costs c£60k and 6 months to make a Cobol programmer redundant and recruit a C++ programmer – 15% leave within 1 year! C++ salaries are rising fast - they are in demand and not being trained.
Training and retention plan for Cobol programmers in C++ and extreme programming.
Cobol contracting as exit path (set up own business).
Early career counselling to allow self-selection for new roles or exit.
New sources for trainee C++ people (non IT/science grads, older people, non IT mid-career people, admin staff with aptitude.
Early liaison with colleges worldwide and regional schools/colleges
Creating programming centres in Eastern Europe and Australia
Outsourcing some work to Pakistan
Example – Global Oil Co: Actions
Opportunity for the business …. And for HR
Resource flows are the critical strategic enabler/limitation for most large organisations
They are poorly understood, rarely analysed properly and, if unplanned, can cause strategy to fail
No one has time
They are completely within HR’s remit
They are quantifiable, business oriented, involve big scary numbers and are extremely important!
Strategic Capabilities: example Top 3 in Australasian Fertiliser market within 5 years -via acquisition 20 M&A specialists with Australian agribusiness expertise 50 European M&A specialists, 5 ‘worldclass’. Can we develop existing? Do we need to buy-in? Where from? Buy some experience and develop rest? Redeploy, develop, recruit Identify strategic intent Identify capabilities needed (particularly ‘key capabilities’) Identify what we have Plan to meet gaps (+ve and –ve) Gap and Flow analysis
Strategic capabilities – Sources of competitive advantage (e.g.): Global IT provider International bank Communications company Diverse global holding group Strategy Consultancy Project and Deployment Managers ‘ Friendly’ cashiers Global telecoms experts Knowledge Managers Consultancy Internal Search consultants Product builders Global Petrochemicals conglomerate ??
The Talent Strategy: Questions for you
What are the CRUCIAL talents that you will need in the future?
Do we own that Talent now?
Do we need to build more of it?
Meeting the Global challenge for Talent Developing and deploying talent Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: the threat and the opportunity Retaining Talent
Global Gas Co: the problem
Fast track graduates (and high-performers in general) tended to leave after 3 years
because there was no planned career progression
Because they were no longer treated as ‘special’ or looked after
Individual Divisions tended to protect and defend their best people
not allow them to be moved to other key roles.
Hide them - so the organisation’s best talents were invisible
Much easier to find someone from outside via executive search
Much easier to leave the company to progress, rather than move internally
‘ Passport’ to success Internal Executive search Solution Solution
Passport to Success (web based)
For every senior role (destination):
The competencies and skills required to do that role
The experience necessary to be considered for such a role
The kinds of jobs and roles necessary to gain that experience
On-line ‘passport’ for each high-potential
CV and personal details
Jobs done and experiences gained (Visas)
Competencies and skills achieved
Internal talent market
All vacant or future roles accessible by everyone on the web
Everyone’s passport available via intranet
Matching facility via intranet
Up to the individual to make sure they moved into jobs to gain the necessary experiences and competencies
No handholding or career planning
Internal Executive search
Executive search consultants were allowed to actively search internally
Accessed ‘hidden’ talent
Lone managers can focus on building., protecting and building loyalty in staff Search consultant focuses on unearthing talent for the business as a whole.
Movement is healthy
Better to be poached for an internal job than an external
Some Managers object
Developing and Deploying Talent: Questions for you
How can you encourage people to develop their own talents?
How can you ensure that top people are seen as organisational assets and move between business?
What would be the advantages of deploying internal search?
What would be the disadvantages?
Meeting the Global challenge for Talent Retaining Talent Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: the threat and the opportunity Retaining Talent
Retention: A differentiating strategic capability
Survey of 500 Global organisations
68% - retaining talent is ‘far more’ important than hiring
Over 50% altered salaries, bonuses or stock options to retain talent
Only 27% tried to provide employees with advancement opportunities within their organizations
Most companies continue to struggle with retention because they rely on salary increases and bonuses to prevent turnover.
Why doesn’t this work?
* Accenture: "The High Performance Workforce: Separating the Digital Economy's Winners from Losers”
Example - High Tech firm losing high value people
To reduce turnover in key groups
Who should we retain and how?
Identify root causes and solutions
why do people stay or go?
The Manager’s role
What can we do?
To identify and use non-financial intervention
How can we retain (and spend more wisely)?
Dimensions of Staff Turnover:
organisation decides not to retain the staff member (or retain).
individual decides to leave the organisation (or stay).
High Value or Low value staff
Short term and long term
Risk of quitting
Catch ‘intention to quit’ early in the process
If someone of low value is at high risk of leaving voluntarily - encourage and celebrate!
Some turnover is OK! Type A Inadequate selection for dismissal etc Type C Dismissal, etc Type B Retention Problem Type D Career development moves, management persuasion etc Involuntary Voluntary Value to the organisation High Low
Segment the ‘voluntary’ population High Risk High value Target retention actions Target improvement or cost effective exit Maintain No action - or encourage to leave Low value Low Risk
The Quitting Process
Type B Turnover - When to attack Main factors Stage Job Satisfaction Self esteem Management style Action quit or stay Probability of alternative/ attractive employment Thoughts of quitting Intention to search Intention to quit or stay Job offer at same/more money Perception of job market vs internal
Actions Regular confidential survey to identify high risk groups/individuals Confidential interview to identify individual and general USPs Confidential feedback form completed Managers agree individual and group actions Actions and monitor via survey Identify high value groups/individuals
Example Value/Risk spreadsheet Can be used at Group or individual level
Self driven working (time, projects, place, invest)
Personal Growth Leave
involving employees in company decision-making processes.
project-oriented work, employees work on diverse, limited-term assignments.
Developing internal "talent exchanges,”
Summary – Targeted Retention: resourcing at its best!
Retention much more cost effective than replacement
Retention must be targeted
Aim to minimise involuntary quitting (low or high value)
Take control/influence over voluntary staying and quitting
Need information – segment the internal market
Who is valuable?
Who is at risk?
What they think
What they want
Need deliberate highly targeted action - Marketing
Demonstrable, significant savings possible!
Retaining key Talent: Questions for you
How could you segment its own talent
Which key talents need to be retained
How can we best retain these people?
Meeting the Global challenge for Talent Acquiring Talent Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: the threat and the opportunity Retaining Talent
Strategic Talent Acquisition
Proactive continuous search
Search out the right people – don’t wait for them to come to you
Look continuously for key skills – don’t wait till you have vacancies
Plan ahead (see previous section)
Global Talent intelligence
Know where the best talent is and how to reach it
Web based geographic database of universities, competitors, alternative employers etc
Tracked database of global potential hires – traced from University through career and including searches, applications, etc
Internal Talent Market
Line managers build and protect their own talent
Internal search helps make sure it ends up in the best place
Is it better for one of your people to be poached by a competitor or a colleague?
Use the intranet to access information
knowledge x speed x accessibility = competitive advantage
Understand the market so well that information can be used to disrupt competitors
Extend information gathering internally – learn from the huge knowledge resource of our current employees
Form relationships with key information ‘nodes’ – databases, professional organisations, publications, universities – to get the inside track
Link to Talent database of current and future candidates – fully tracked!
Develop everyone to use the information
Competitive intelligence isn’t a department – it’s a way of working!
TELECOM PLC Global Talent Intelligence: Aims
TELECOM PLC Global Talent Intelligence: Foundations
Talent Market Data – in-depth knowledge about skills markets, competitors, strategies and tactics
Third party research (commissioned)
Sales & Marketing
Research & Development
Major Educational Establishments
Competitive Company Reports
Supporting the business on specific bids and resourcing initiative
Responsive, pragmatic and focused
Global Talent database
Tracks potential future employees from graduation through career
Fed through employee brand advertising, agencies, University careers offices, our own employees, speculative applications (over 2000 pa).
TELECOM PLC Global Talent Intelligence: Intranet Portal TELECOMS PLC Global Talent Intelligence Portal News Archive Home CV Database Discuss Talent Maps Breaking News… Cisco's Components Feast Marconi and Compaq join for service management Find a supplier… Search: Quick CV search Keywords: Recent discussions…
Overview Data: Europe Professional Services KPMG PWC Analysis Etc…
By Country Alcatel Paris , France Address Employees Advertising News
Talent Map – Italy
Accessible through TELECOM PLC Intranet and via web
Maps now for all strategic countries
At-a-glance picture of TELECOM PLC’s talent competition
This map shows ‘associated industries’ – darker colours = more employees in region
Stars highlight company sites
Geographic link to ‘prospect’ database
Italy in Detail – Rome (Lazio)
Maps are interactive – zoom in to any region
Information from regularly-updated database – ‘live’
Show all competitors, or slice information by technology, company, skillset etc.
Next steps – link this to individual employee details
Questions the portal can answer (examples)
“ What’s the current average salary for project managers in Paris?”
“ What experience do fellow talent managers have of recruiting in Qatar?”
“ Who can I ask about recruiting in Holland?”
“ How many people do Alcatel employ in Japan?”
“ What is the potential skills market for 3G engineers in Northern Russia?”
“ Where can I find Thai-speaking Project Managers?”
“ What have Cisco been doing recently?”
“ What can I tell my business about Lucent’s recent joint venture?”
Search: Italy based GIS experts with Geology
John Cvanagh – 1990 MSc Spatial Analysis Milan – 10 years GIS for Shell global £70k
Abdullah Kaziz – 2000 BSc 1.1. Oxford Geology – 5 years BP Middle East £50k
TELECOM PLC Global Talent Intelligence: Functions
Executive Search integrated with Resourcing and Talent Management Pre-selection Selection Post-selection Promote company values and ‘Employee brand’ Induction begins with first call Retention via mentoring for first six months Succession allows early planning Fast track project managed selection Resourcing strategy drives search strategy Competency frameworks utilised Competitive intelligence from market research Internal candidates ‘searched’ and compared Reward data incorporated from search Database built for future requirements Mgt development - part of screening
Acquiring Talent: Questions for you
How can you track and access key external talent
Should you recruit key talent – even when it hasn’t got specific vacancies?
How can you keep track of all the people who apply?
Meeting the Global challenge for Talent Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and key action areas Talent Management: the threat and the opportunity Retaining Talent
Meeting the Global challenge for Talent: A major source of competitive advantage Talent Strategy & Planning Developing & Deploying Talent Retaining Talent Acquiring Talent Identify strategic intent Identify capabilities needed (particularly key capabilities ) Identify what we have Gap and flow analysis Strategic Plan to meet gaps (+ve and –ve) Create an internal market for talent Self development ‘passport’ for individuals Internal executive search Identify critical talent that must be retained Assess ‘propensity to leave’ Intervene at early stage of the leaving process Create Global Talent Intelligence web tool Global database of potential external talent Internal executive search