Fight for Talent

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KPMG’s Fight For Talent Breakfast Seminar with panelists Maureen Berry, Debbie Fischer, Kate Humphries, John Stockwell and our National Lead, People and Change Services, Laura Croucher. The session provided a unique opportunity to hear the latest perspectives on talent risk and successful talent management. Some of the topics covered included: why organizations are downplaying talent risks, why does retention continue to be an issue and why is there a difference of opinion between HR and line Managers in regards to talent needs and priorities.

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  • Those with extremely effective succession plans were:Twice as likely to be effectively managing the risk of the total cost of the workforce becoming unsustainableThree times more likely to be managing the risk of the cost of top talent becoming too cost prohibitive Three times as likely to use ‘total cost of workforce as a key metric’Twice as likely to feel they have an adequate budget for their talent management needs Twice as many expect they will receive an increase in their overall talent management budget
  • Fight for Talent

    1. 1. March 2014 Time for a more holistic approach to talent risk #Fight4Talent
    2. 2. 2© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Presented By LAURA CROUCHER Partner, Advisory Services National Lead People & Change (Canada) KPMG LLP Follow the conversation: #Fight4Talent @KPMG_Canada lcroucher@kpmg.ca @croucher_laura Laura Croucher KPMG +1 416-777-3417
    3. 3. 3© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Agenda 7:30 – Breakfast and Networking 8:00 – Talent Risk Presentation - Laura Croucher 8:45 – Industry Panel 8:50 – Introductions  John Stockwell - VP HR, Open Text Corporation  Maureen Berry - Corporate HR Executive, Canada Health Infoway  Debbie Fischer - KPMG Associate and former EVP Strategy & Org Development, Mount Sinai  Kate Humphries – Sr. Manager, Resource Planning & Succession Management at TD Bank Group 9:00 – Moderator Questions 9:25 – Audience Questions 9:55 – Final Remarks #Fight4Talent
    4. 4. 4© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. About this research Organizations are competing for talent on an unprecedented scale In this context, how effectively are organizations identifying talent risks to their current and future business growth? And how effectively are they mitigating against talent risks? KPMG International commissioned the Brandon Hall Group to conduct a global study of talent-related risks 1,200 Human Resources (HR), talent, learning and business executives 54 countries Government and 15 different industries represented Just over a quarter of respondents work in companies with 30,000+ employees Series of qualitative interviews
    5. 5. 5 Cs: Talent Risk Categories #Fight4Talent
    6. 6. 6© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The survey focused on five critical talent risk categories … How concerned is your business? To what degree are you managing that concern? Capability . Capacity Cost Compliance Connection
    7. 7. Key Findings: Capability & Capacity Risks #Fight4Talent
    8. 8. 8© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Global Talent Risk Profile and Highest Ranked Capacity and Capability risks dominated both in terms of perception and mitigation of risk Least likely to be ranked Compliance talent risks was the most likely risk category to be listed as no risk at all by about 38% of the survey population
    9. 9. 9© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. An insufficient budget for managing and developing talent Cost Salary expectations of candidates with critical skills become too high Cost Difficulties in recruiting top talent Capability Salary expectations of candidates with critical skills become too high Capability Skills and capabilities required by the business in the near future are not developed Capability A lack of compelling development opportunities for top talent Capability A lack of depth of internal candidates for critical roles Capacity An insufficient pipeline of future leaders Capacity What talent risks were respondents most worried about? 1 2 3 4 5 6 7 8 Business leaders‟ inability to engage with, motivate and nurture business critical talent9 Connection Managers view performance management, talent reviews et c as a process to comply with rather than as business critical activities10 Compliance
    10. 10. 10© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 21% 18% 32% 20% 6% 3% We do not have succession plans Not at all effective, lists with no action Somewhat effective, lists with regular action Very effective, succession planning discussions Extremely effective, actively work with succors I don‟t know ‘An insufficient pipeline of future leaders’ ranks as #1 talent risk and yet few organizations have effective succession planning in place... Effectiveness of Succession Planning
    11. 11. 11© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 26% of organizations filled less than 25% of their Critical Roles with internal candidates 26% 22% 20% 13% 10% 9% Less than 25% 26% to 50% 51% to 75% 76% to 90& More than 90% I don‟t know Percentage of Critical Roles filled with Internal Candidates in last year
    12. 12. 12© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Which talent risks were respondents actively managing? A lack of depth of internal candidates for critical roles1 Capacity An insufficient pipeline of future leaders2 Capacity Difficulties in retaining key people3 Capability A lack of clarify over which roles are „critical‟ to deliver business value4 Cost The total cost of the workforce becomes unsustainable in relation to current revenues5 Cost Skills and capabilities required by the business in the near future are not developed6 Capability A lack of compelling development opportunities for top talent7 Capability Difficulties in retaining to talent8 Capability The cost of retaining top talent becomes unsustainable9 Cost Salary expectations of candidates with critical skills become too high10 Cost
    13. 13. 13© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 7% 22% 35% 25% 7% 4% No strategic workforce planning Basic approach Simple approach Detailed approach Complex approach I don't know Respondents were not optimistic about their approach to strategic workforce planning .... Approach to strategic workforce planning.
    14. 14. 14© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The two big challenges for talent management Organizations take a narrow view of talent management1 2 3 ■ There is a strong focus on the „traditional‟ areas of talent management – capability and capacity ■ This is coupled with a relative lack of concern about connecting and engaging with talent as well as enabling and encouraging collaboration Insufficient focus on total cost of workforce2 ■ There are a number of talent risks which appear in the list of top 10 risks identified but do not feature in the list of top 10 risks actively being managed: ■ Managers view performance management and talent review processes merely as something to comply with, rather than a business critical activity ■ Business leaders‟ inability to engage with, motivate and nurture business critical talent ■ An insufficient budget for managing and developing talent ■ Maintaining employee engagement in the face of a less committed, more flexible workforce
    15. 15. Key Findings: Connection-related talent risks #Fight4Talent
    16. 16. 16© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The top 10 list of risks respondents were least worried about featured a number of Connections risks… Talent management processes become non-compliant with local regulation, for example data protection1 Compliance International mobility policies and processes make it difficult to transfer talent between countries2 Connection Employee relations hinder rather than help talent management processes3 Compliance A lack of workforce diversity4 Capacity An inability to define the new skills or capabilities that will be needed by the business in the near future5 Capability Business leaders‟ reluctance to share talent across the organization6 Connection Business leaders‟ and HR/talent team‟s inability to work effectively together to manage talent7 Connection A lack of clarity over which roles are „critical‟ to deliver business value8 Capacity The total cost of the workforce becomes unsustainable in relation to current revenues9 Cost The cost of retaining top talent becomes unsustainable10 Cost
    17. 17. 17© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. In addition, effort does not appear to be expended consistently in such a way as to address the top 10 risks identified… Bottom of the list Respondents ranked the risks of their ‘business leaders inability to engage with, motivate, and nurture business critical talent’ as a top ten critical risk – yet awarded it fell to almost the bottom of the list of risks that were least actively managed 33% Only 33 percent of respondents felt their business unit leaders were ‘incentivized to share talent across organizations for the benefit of the business and the talent – seemingly at odds with the inclusion of development, retention and several other risks within the top 10 risks. and
    18. 18. 18© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Talent Review Processes are also not used effectively as an engagement driver... Do your organization’s formal talent review meetings result in development plans for which leaders take responsibility?
    19. 19. Key Findings: Cost-related talent risks #Fight4Talent
    20. 20. 20© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Cost related risks featured at the bottom of the top 10 list of risks respondents were least worried about featured … Talent management processes become non-compliant with local regulation, for example data protection1 Compliance International mobility policies and processes make it difficult to transfer talent between countries2 Connection Employee relations hinder rather than help talent management processes3 Compliance A lack of workforce diversity4 Capacity An inability to define the new skills or capabilities that will be needed by the business in the near future5 Capability Business leaders‟ reluctance to share talent across the organization6 Connection Business leaders‟ and HR/talent team‟s inability to work effectively together to manage talent7 Connection A lack of clarity over which roles are „critical‟ to deliver business value8 Capacity The total cost of the workforce becomes unsustainable in relation to current revenues9 Cost The cost of retaining top talent becomes unsustainable10 Cost
    21. 21. 21© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 24% 38% 27% 11% No Yes, in a limited scope Yes, extensively I don‟t know Over 60% of organizations do not track total cost of workforce at all, or use it only in a limited scope... Does your organization use 'Total Cost of Workforce' as a key metric?
    22. 22. Additional Insights #Fight4Talent
    23. 23. 23© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Clear differences emerge when it comes to attitudes and perceptions of HR leaders, and executives and front-line managers... ■ Executives and frontline managers were most concerned about cost- related talent risks – while HR leaders were even more concerned about capacity risks ■ Overall, HR felt that all areas were being mitigated more effectively than both executives and managers, except workforce cost Perceived level of risk impact by roles 3.09 3.17 2.95 2.67 2.48 3.09 3.1 3.2 2.57 2.44 3.29 3.21 3.14 2.98 2.69 2.0 2.5 3.0 3.5 4.0 Capacity Capability Cost Connection Compliance Scale: 1= Not managing 2= Identified, no plans to manage 3= Plans to manage 4= Managing and seeing progress 5= Managing and mitigating risk: Perceived level of risk mitigation by roles Scale: 1= Not managing 2= Identified, no plans to manage 3= Plans to manage 4= Managing and seeing progress 5= Managing and mitigating risk 3.85 3.83 3.63 3.35 3.23 3.56 3.55 3.7 3.13 3.04 3.54 3.5 3.35 3.17 2.91 2.5 3.0 3.5 4.0 Capacity Capability Cost Connection Compliance HR Executives Business leaders Note: this data is based on the averages of the survey respondents to a five point scale. Half a point difference is equivalent to a 10 – 20% difference in perception, given the sample size
    24. 24. 24© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. HR’s confidence in talent risk mitigation not matched by executives and frontline managers ■ This mismatch between HR and executives and frontline managers brings into focus that the business is struggling to feel a positive return from talent management efforts Note: this data is based on the averages of the survey respondents to a five point scale. Half a point difference is equivalent to a 10 – 20% difference in perception, given the sample size Perceived average talent of risk mitigation level Scale: 1= Not managing 2= Identified, no plans to manage 3= Plans to manage 4= Managing and seeing progress 5= Managing and mitigating risk 3.58 3.38 3.3 3.15 3.20 3.25 3.30 3.35 3.40 3.45 3.50 3.55 3.60 3.65 Perceived average talent risk mitigation level HR Executives Business leaders
    25. 25. What does this mean for Canadian companies? #Fight4Talent
    26. 26. 26© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. What does this mean for Canadian companies? ■ Retention continues to be a key concern consistent with last year‟s KPMG‟s global survey – Canada rated this the #1 Challenge in the Rethinking Human Resources in Changing World Survey ■ Survey reports organizations are downplaying talent risks in the areas of connection, diversity and performance management ■ Lack of emphasis on “connection” is a concern given the nature of work today as well as the entry of younger generations into the workforce ■ In Canada, downplaying Diversity has increasing importance with the recent announcement from the Ontario Securities Commission requiring companies to annually publish a description of their diversity policies. This new standard is the first of its kind in Canada and will likely be the catalyst for change in diversity in many organizations. ■ Cost as a driver/concern is best considered a more balanced view of talent needs and challenges ■ The survey points to a difference of opinion between HR and line Managers about talent needs and priorities
    27. 27. Call to Action #Fight4Talent
    28. 28. 28© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Final Thoughts: Organizations must embrace a more holistic approach to talent management Holistic Approach Build a talent strategy based on an understanding of what the organizations needs to win in the future
    29. 29. 29© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Final Thoughts: Organizations must embrace a more holistic approach to talent management Holistic Approach Pause to consider whether all major talent risks have been identified & prioritized – does the business agree?
    30. 30. 30© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Final Thoughts: Organizations must embrace a more holistic approach to talent management Holistic Approach Work with leadership to connect and engage with talent across the organization
    31. 31. 31© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Embed strategic & holistic talent planning into business planning – it’s not a standalone exercise Final Thoughts: Organizations must embrace a more holistic approach to talent management Holistic Approach
    32. 32. 32© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Seek to understand and track the total cost of workforce Final Thoughts: Organizations must embrace a more holistic approach to talent management Holistic Approach
    33. 33. 33© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Evaluate talent- related decisions for return on investment Final Thoughts: Organizations must embrace a more holistic approach to talent management Holistic Approach
    34. 34. 34© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Hardwire talent risk into wider enterprise risk management frameworks Final Thoughts: Organizations must embrace a more holistic approach to talent management Holistic Approach
    35. 35. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. Visit us at kpmg.ca/talentrisk LAURA CROUCHER Partner, Advisory Services National Lead People & Change (Canada) KPMG LLP lcroucher@kpmg.ca @croucher_laura Laura Croucher KPMG +1 416-777-3417#Fight4Talent

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