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Paradigm shiftBuilding a new talent management modelto boost growthNovember 2012
Introduction►   Growth is at the top of every organization’s agenda.►   Competitive advantage is hard to find.►   Talent :...
Agenda►   About the survey►   Survey highlights►   In search of a new talent paradigm:    1.   Corporate workforces are be...
About the surveyThe survey of 596 executives was conducted and analyzed as follows:Survey demographics:► 1/3 of respondent...
Survey highlightsPage 5        Paradigm shift
Survey HighlightsDifferences between high and low-performers►   High-performers:    ►    Place greater emphasis on linking...
Survey highlightsDifferences between developed and rapid-growth markets►   Businesses in rapid-growth markets are more lik...
In search of a new talent paradigmPage 8      Paradigm shift
Scarcity of talent is becoming a key obstacleto growth►   In India, the percentage of employers jumped 51% in 2011.►   60%...
Five key talent management challenges1.    Corporate workforces are becoming more global, but talent      management is no...
The challengesPage 11      Paradigm shift
Challenge 1:   Corporate workforces are becoming more   global, but talent management is not   keeping pacePage 12       P...
It’s hard to find a company that isn’t global               What percentage of your organization’s workforce is based in a...
But talent management is not keeping up                                How effective is your organization at the following...
The link between autonomy and performance                       In the past three years, what changes has your organizatio...
Not enough opportunities for overseasexperience                    Which of the following are part of your organizations s...
Challenge 2:   Companies struggle to invest strategically   in talent managementPage 17       Paradigm shift
Companies struggle to make the rightinvestments in talent                                   How effective is your organiza...
Challenge 3:   Measuring the effectiveness of talent   management remains a challengePage 19       Paradigm shift
A focus on the wrong metrics?               Which of the following metrics do you consider to be the most important determ...
Challenge 4:   The skills and competencies required by   future business leaders are changingPage 21       Paradigm shift
It’s the soft skills that matter most                What do you consider to be the most important attributes for potentia...
Challenge 5:   Companies lack robust succession plans   to identify the next generation of leadersPage 23       Paradigm s...
Concerns about the next generationof leaders                      To what extent do you agree that your organization has t...
Business implicationsPage 25       Paradigm shift
1. Align and integrate talent managementacross the business►   Companies need to make sure that:    ►     They align talen...
2. Rethink approaches to international talent►   Companies need to review their approach to international mobility    and ...
3. Create the right blend between global andlocal talent management►   Most companies try to standardize and globalize the...
4. Use analytics to identify talent gaps andbetter understanding of workforce behavior►   Effective workforce analytics st...
5. Take a long-term approach todeveloping the next generation of leaders►   Companies should:    ►     Take a long-term ap...
Responses to business implicationsPage 31       Paradigm shift
Business implications and responses                               ► Align talent management with company culture, values a...
Business implications and responses 4.Use analytics to           ► Evaluate which metrics are most effective in supporting...
Three key strategies for maximizing yourreturn on talent                          ► Investing in talent has a long-term ou...
Does your talent model measure up?Page 35      Paradigm shift
Does your talent model measure up?Three key takeaways from today’s event:1.    Think long term. Remember that investing in...
Ernst & Young  Assurance | Tax | Transactions | Advisory  About Ernst & Young  Ernst & Young is a global leader in assuran...
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Paradigm shift - Building a new talent management model to boost growth

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Nearly five years after the financial crisis erupted, a sustained global economic recovery remains elusive. Nothing less than a fundamental change in thinking is required to tackle the talent shortfall.
http://www.ey.com/GL/en/Issues/Driving-growth/Growing-Beyond---Paradigm-Shift---Overview
Our Growing Beyond program explores opportunities across expanding into new markets, finding new ways to innovate & implementing new approaches to talent.
www.ey.com/growingbeyond

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  1. 1. Paradigm shiftBuilding a new talent management modelto boost growthNovember 2012
  2. 2. Introduction► Growth is at the top of every organization’s agenda.► Competitive advantage is hard to find.► Talent : an untapped opportunity.► Investment in talent often requires deep organizational changes.► High performing companies invest more in talent management.► It’s time for a “paradigm shift”.Page 2 Paradigm shift
  3. 3. Agenda► About the survey► Survey highlights► In search of a new talent paradigm: 1. Corporate workforces are becoming more global, but talent management is not keeping pace. 2. Companies struggle to invest strategically in talent management 3. Measuring the effectiveness of talent management remains a challenge. 4. The skills and competencies required by future business leaders are changing. 5. Companies lack robust succession plans to identify the next generation of leaders.► Business implications► Responses to business implications► Does your talent model measure up?Page 3 Paradigm shift
  4. 4. About the surveyThe survey of 596 executives was conducted and analyzed as follows:Survey demographics:► 1/3 of respondents were from the Asia-Pacific region► 1/3 from Western Europe► 1/3 from North America► 10% were from Latin America, the Middle East and Africa, and Eastern Europe.► 53% percent of the respondents were CEOs, CFOs or other C-level executives.► 44% percent of the companies surveyed reported revenues of US$1 billion or more.Analysis:► Compared findings from rapid-growth market and developed markets.► Compared findings from high-performers with low-performers.Page 4 Paradigm shift
  5. 5. Survey highlightsPage 5 Paradigm shift
  6. 6. Survey HighlightsDifferences between high and low-performers► High-performers: ► Place greater emphasis on linking pay with performance ► Provide more customized training and development ► Invest in talent management to meet the organization’s financial targets ► Choose people who can lead effectively in an international business environment ► Have a stronger pipeline of future leadership talent ► Build more robust succession plans and future leaders with diverse backgroundsPage 6 Paradigm shift
  7. 7. Survey highlightsDifferences between developed and rapid-growth markets► Businesses in rapid-growth markets are more likely to: ► Offer variety in job descriptions and responsibilities ► Offer opportunities for employee mobility across functions ► Encourage working in different countries and offer greater freedom to direct reports to make decisions ► Adopt an equal (less of a top-down) style of managementPage 7 Paradigm shift
  8. 8. In search of a new talent paradigmPage 8 Paradigm shift
  9. 9. Scarcity of talent is becoming a key obstacleto growth► In India, the percentage of employers jumped 51% in 2011.► 60% of organizations were experiencing a leadership shortage, an increase of 40% from the previous year.► 72% of respondents reported difficulty finding and keeping the high- potential employees essential to boost their global competitiveness. Source: Corporate Executive Board 2012 survey.Page 9 Paradigm shift
  10. 10. Five key talent management challenges1. Corporate workforces are becoming more global, but talent management is not keeping pace.2. Companies struggle to invest strategically in talent management.3. Measuring the effectiveness of talent management remains a challenge.4. The skills and competencies required by future business leaders are changing.5. Companies lack robust succession plans to identify the next generation of leaders.Page 10 Paradigm shift
  11. 11. The challengesPage 11 Paradigm shift
  12. 12. Challenge 1: Corporate workforces are becoming more global, but talent management is not keeping pacePage 12 Paradigm shift
  13. 13. It’s hard to find a company that isn’t global What percentage of your organization’s workforce is based in a country other than where the corporate headquarters are located? Now In three years 34 24 23 22 22 17 18 10 10 9 7 4 0% 1%-20% 21%-40% 41%-60% 61%-80% 81%-100%Page 13 Paradigm shift
  14. 14. But talent management is not keeping up How effective is your organization at the following aspects of performance and talent management? Overseas workforce <40% Overseas workforce >40% All respondents 68% 60% 56% 56% 50% 46% 45% 41% 37% Adapting talent management policies to Understanding clearly the relationship between Investing adequately in talent management to changes in the business environment employee performance and company meet organizations financial targets performance (e.g., revenue growth)Page 14 Paradigm shift
  15. 15. The link between autonomy and performance In the past three years, what changes has your organization made to the way in which managers manage direct reports? Now In three years 34 24 23 22 22 18 17 10 10 9 7 4 0% 0-20% 20-40% 40-60% 60-80% 80-100%Page 15 Paradigm shift
  16. 16. Not enough opportunities for overseasexperience Which of the following are part of your organizations strategy to manage a multicultural or international workforce? Low perfomers High performers 42% Offer pension schemes, health care and other benefits 41% 39% Encourage employees to join mentoring programs 42% 46% Encourage flexible working 48% 47% Create opportunities for employees to work in other countries 53% 47% Provide customized training and development 55% 52% Introduce greater varierty of responsibilities in job descriptions 57% 50% Put greater emphasis on linking pay and performance 59% 58% Create opportunities for employee mobility across functions 64%Page 16 Paradigm shift
  17. 17. Challenge 2: Companies struggle to invest strategically in talent managementPage 17 Paradigm shift
  18. 18. Companies struggle to make the rightinvestments in talent How effective is your organization at the following aspects of performance and talent management? High performers Low performers 66% 61% 56% 50% 46% 37% Adapting talent management policies to Investing adequately in talent management to Understanding clearly the relationship between changes in the business environment meet organizations financial targets employee performance and company performance (e.g., revenue growth)Page 18 Paradigm shift
  19. 19. Challenge 3: Measuring the effectiveness of talent management remains a challengePage 19 Paradigm shift
  20. 20. A focus on the wrong metrics? Which of the following metrics do you consider to be the most important determinants of an effective talent management program? Low perfomers High performers 18% Extent of skills gaps in workforce 26% 25% Diversity of management team 31% 40% Level of cross-functional collaboration 34% 41% Employee productivity 38% 36% External reputation of organization as an employer 40% 42% Retention rates 45% 57% Employee satisfaction 53%Page 20 Paradigm shift
  21. 21. Challenge 4: The skills and competencies required by future business leaders are changingPage 21 Paradigm shift
  22. 22. It’s the soft skills that matter most What do you consider to be the most important attributes for potential C-level leaders of your organization? Low perfomers High performers 13% Is a good risk manager 12% 27% Has strong grasp of financials 21% 32% Has industry expertise 30% 27% Decisiveness 33% 37% Can engage effectively with multiple internal and external stakeholders 33% 40% Can command the respect of colleagues and reports 38% 37% Can articulate and embody the values and culture of the organization 44% 37% Can lead effectively in an international business environment 47%Page 22 Paradigm shift
  23. 23. Challenge 5: Companies lack robust succession plans to identify the next generation of leadersPage 23 Paradigm shift
  24. 24. Concerns about the next generationof leaders To what extent do you agree that your organization has the following aspects of leadership development in place? Low perfomers High performers 38% A clear set of qualification metrics for leadership candidates 43% 36% Future leaders with sufficiently diverse experience and backgrounds 45% 33% Robust succession plans for key leadership roles 48% 43% A strong pipeline of future leadership talent 54% 70% Current crop of leaders with the right attributes and experience 78%Page 24 Paradigm shift
  25. 25. Business implicationsPage 25 Paradigm shift
  26. 26. 1. Align and integrate talent managementacross the business► Companies need to make sure that: ► They align talent management with culture, values and strategic goals. ► They recruit and retain a workforce in a way that supports their key objectives. ► Their HR function is embedded in the business and serves as a partner to it.Page 26 Paradigm shift
  27. 27. 2. Rethink approaches to international talent► Companies need to review their approach to international mobility and re-integration: ► Embedding mobility into their leadership and high-potential programs ► Adopting a strategic approach: overseas experience as part of long-term leadership development programs ► Developing repatriation plans to take the executives to the next stage in their careerPage 27 Paradigm shift
  28. 28. 3. Create the right blend between global andlocal talent management► Most companies try to standardize and globalize their talent management practices.► The one-size-fits-all model will not work.► Some standardization is desirable.► But companies need to think locally about how to attract and retain talent.► Companies should develop a framework that combines fixed and flexible components.Page 28 Paradigm shift
  29. 29. 4. Use analytics to identify talent gaps andbetter understanding of workforce behavior► Effective workforce analytics start with: ► Accurate data ► Complete data ► The ability to aggregate it► Workforce analytics offer the opportunity to: ► Identify skills gaps ► Link talent management decisions with broader performance objectives► Some companies are using analytics to: ► Forecast talent shortages or surpluses ► Assess how cycles will affect the availability of human capital resources► Companies need to recognize that technology is a support mechanism and not the solution to everything.Page 29 Paradigm shift
  30. 30. 5. Take a long-term approach todeveloping the next generation of leaders► Companies should: ► Take a long-term approach to leadership development ► Extend succession planning beyond the immediate top team► High potential programs can be valuable, but there is a risk that they could turn into training grounds for the competition.► Companies must also be aware that past performance is not always a predictor of future potential.Page 30 Paradigm shift
  31. 31. Responses to business implicationsPage 31 Paradigm shift
  32. 32. Business implications and responses ► Align talent management with company culture, values and strategic goals 1.Align and integrate ► Recruit, retain and reward employees in a way that supports key objectives talent management ► Integrate talent management programs across the entire organization and across the business adapt to keep pace with changes in the business environment ► Embed HR into the business, establishing a more strategic partnership with the function ► Build mobility programs into long-term leadership development, providing 2.Rethink approaches to high-potential executives with exposure to different markets to broaden international mobility their knowledge and appreciation of different cultures as well as re- ► Create a multi-directional flow of talent across developed and integration rapid-growth markets ► Include a robust repatriation plan for international assignees 3.Create the right blend ► Establish the right balance by which talent management decisions will be of global and local made: centrally versus locally talent management ► Think locally about how to attract and retain talent, as well as how to position the company as an attractive place to workPage 32 Paradigm shift
  33. 33. Business implications and responses 4.Use analytics to ► Evaluate which metrics are most effective in supporting corporate identify talent gaps performance objectives and gain a better ► Use data to understand where skills gaps might exist understanding of ► Look ahead to predict availability of talent (e.g., within an industry) workforce behavior ► Understand the link between company and employee performance ► Consider the gap between current and future leaders, focusing on the right attributes and experience 5.Take a long-term ► Build a strong pipeline of future leadership talent approach to ► Include succession planning that expands beyond top leadership in your developing the next approach generation of leaders ► Establish an effective process for choosing a new leader, defining a set of qualification metrics for these candidates ► Consider soft skills, which may be more important than having deep subject-matter knowledgePage 33 Paradigm shift
  34. 34. Three key strategies for maximizing yourreturn on talent ► Investing in talent has a long-term outcome Think long term ► Look beyond the short-term expense of mobility, performance management and recognition and rewards; instead focus on the long-term investment, such as providing critical market experience ► Move away from traditional measures, such as employee satisfaction, productivity, engagement, collaboration and retention Measure the right ► More effective measures include filling positions with internal candidates, outcomes developing job-specific employee skills and competencies, assessing and validating recruitment and selection processes, and evaluating talent according to business-performance standards ► Align your approach with the business strategy Adopt a disciplined ► Integrate programs across the organization approach ► Measure results to validate business strategy executionPage 34 Paradigm shift
  35. 35. Does your talent model measure up?Page 35 Paradigm shift
  36. 36. Does your talent model measure up?Three key takeaways from today’s event:1. Think long term. Remember that investing in talent has a long-term outcome, and it may be years before your company sees the results.2. Measure the right outcomes. Move beyond traditional measures such as employee satisfaction, productivity and engagement.3. Adopt a disciplined approach. Treat talent management as a disciplined process involving alignment, integration and measurement.Page 36 Paradigm shift
  37. 37. Ernst & Young Assurance | Tax | Transactions | Advisory About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 167,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. Ernst & Young refers to the global organization of Growing Beyond member firms of Ernst & Young Global Limited, each of Global growth is the business issue of today. which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not In Growing Beyond, we’re exploring how provide services to clients. For more information about companies can grow faster — by expanding our organization, please visit www.ey.com. into new markets, finding new ways to innovate and taking new approaches to talent. It’s an ongoing program to help you © 2012 EYGM Limited. grow beyond your expectations. Join the All Rights Reserved. discussion at www.ey.com/growingbeyond EYG No. EX0157 This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. ED NonePage 37 Paradigm shift
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