Talent Management Trends and Principles


Published on

Highlighting the top trends that reflect the future of Talent Management

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Talent Management Trends and Principles

  1. 1. EMERGING TRENDS IN TALENT MANAGEMENT © Dr John Sullivan (Johns@sfsu.edu)www.drjohnsullivan.com 1
  2. 2. Global reach of Dr. John Sullivan Work Published (43 Countries) Publicly Presented/Advised (27 Countries) 2
  3. 3. The goal for todayTo show you the major strategic and functionaltrends that will drive global talent management overthe next 5-10 years 3
  4. 4. Part I Let’s first look at…12 strategic trends in TM 4
  5. 5. TM has 8 options for increasing productivity Buy Build Recruit regular employees Develop internal talent Borrow Retain Borrow contingent labor Retain key internal talent Move More productive Redeploy internal talent Make internal talent more productive Release Use substitutes Weak & excess labor (Tech, contingent, outsource, cust.)
  6. 6. TM trendsStrategic trend – Prioritization on TM- “Talent Management” functions receive priority over other HR functions- Why - because data demonstrates their increased impact on innovation, productivity and business results 6
  7. 7. Which HR functions add the most to performance?Increasing innovation Skills trainingProductivity improvement CompensationRetention BenefitsEmployer branding Performance mgmt.Talent acquisition RelocationInternal movement ComplianceLeadership and succession HRITOn boarding/off boarding HR administrationLearning & development 7
  8. 8. TM trendsStrategic trend – Learn from and adapt theusable parts from both next & best practices- “Next practices” now frequently supplant best practices in order to build a competitive advantage Two comparison examples > 8
  9. 9. Differentiating between best and next practicesExamples:Recruiting Standard practice – recruit using newspaper ads Best practice – recruit using referrals Next practice – recruit using Facebook to generate referralsBest practice sharing Standard – no formal process Best practice – a knowledge website Next practice – wikis and internal social networks 9
  10. 10. “Next practices” vs. “best practices” Next practices 1% Best practices 25% Standard HR practices 65% Below average practices 9% 10
  11. 11. “Next practice” firms that are ahead of the curveGoogleMicrosoftZapposFacebookDaVitaSodexoBooz AllenU.S. ArmyInfosysApple 11
  12. 12. Zappos is a “next practices” companySome quick Zappos “next practice” examples > 12
  13. 13. Zappos understands the cost of a bad hireEven the best recruiting fails occasionally… soZappos offers $3,000 to anyone who agrees to quitduring their initial training… 2 - 3 % take the cashAlsoEvery Zappos’s employee is on Twitter 13
  14. 14. Employer branding with a story bookZappos publishes a book full of 300+ employeewritten stories about what it’s like to work there(Available on Amazon) 14
  15. 15. Zappos TV… 15
  16. 16. Zappos pre-identifies fakers prior to the interviewBecause they put such a high value on “authentic”customer service…they assess an applicants behavior during theshuttle ride SW Air uses a similar approach 16
  17. 17. Zappos toga party and chug contest on YouTube 17
  18. 18. Zappos Adidas eventsHeld Adidas day for it’s employees, which included ashoe lacing competition, a float contest, a costumecontest, and a design a pair of Adidas shoes contest 18
  19. 19. O M G!Any questions at this point?
  20. 20. TM trendsStrategic trend – Boldness becomes common- Formerly conservative firms/organizations are becoming bold in Talent Management Three quick “best practice” examples > 20
  21. 21. Employee videos are powerful branding messages (Yielded 1,000+ videos) 21
  22. 22. Using a video to recruit… says innovationJ&J, Deloitte, British Navy & MITRE have used them 22
  23. 23. UK intelligence service cover story test to attract and excite Cover story test Cards in a bowl 23
  24. 24. TM trendsStrategic trend – Innovation dominates- Innovation and idea generation… supplant working hard and dependability as the primary goals 24
  25. 25. Continuing on with our “value of innovators”calculation at Google > 25
  26. 26. The best firms quantify the $ value of top talent(The performance differential)One top-notchengineer is worth “One great“300 times or more…than the average” programmer is worth 1000 good(Google) “would programmers.”rather lose an entire Bill Gatesincoming class ofengineeringgraduates than oneexceptionaltechnologist”Alan Eustace, VP ofEngineering, Google Quote Courtesy of AIRS 26
  27. 27. A billion-dollar employee?Game changers are worth a lot: If you hire a single game changer at Google (where the average employee generates $1.3 million in revenue each year) And that game changer produces the expected 300 times the average For every one you hire… you add over $390 million in revenue every year And if the new hire stays for only two and half years… they will generate over $1 billion in revenue 27
  28. 28. Approaches for increasing innovation Some examples > 28
  29. 29. Examples of how other firms excite innovatorsExamples of approaches that excite: Intel allows you to work a strategic partners IBM allows you to appeal a bad promotion Google, Genentech and 3M offer free time Schwab collection of “noble failures” GE measures managers on “imagination” P&G and IBM get ideas from others 29
  30. 30. TM trendsStrategic trend – Internal consulting center- HR acts like a consulting center for increasing productivity- It identifies barriers to productivity- It improves best practice sharing- It does not make decisions, it advises managers on risks and benefits A “best practice” example > 30
  31. 31. At Zappos, HR acts as a consultantAt Zappos…HR doesnt decideHR operates as "risk advisors"We “empower the manager to make a decision” #hrhappyhour 2010 31
  32. 32. TM trendsStrategic trend - Metrics drive decisionmaking- Decisions are made based on data and metrics, rather than past practices & intuition Three “best practice” examples > 32
  33. 33. What is the success % of Perf. Management programs? 1. The firm went back 2 years and identified that they had 1,019 people rated #3, “needs improvement” 2. They calculated that they spent an average of $13,090 per year… on their performance management (training, coaching, counseling and manager time) 3. They identified 2 years later… the number that were currently ranked as #1’s 4. That number was 0 Conclusion – Perf. management has a low ROI 33
  34. 34. What does this 15 yr. Rand study say about T&D?If the performance level of a recent hire is rated at50% after their 1st year… or at the 90th percentile Performance % 100 80 60 40 20 Years of servicetheir performance level will remained essentiallyunchanged until year 20… when they retire 34
  35. 35. TM trendsStrategic trend - Learning dominates- Google learning speed (At meetings)- Parallel benchmarking increases learning- Learn from other business processes (Supply chain, lean processes, mass customized manufacturing & pattern buying)- Learn from other industries- Provide integrated solutions A quick “best practice” example > 35
  36. 36. Rapid learning is the top concern at GoogleGoogle continuous learning / “Testing on the toilet” www.flickr.com/photos/gubatron/246489031 36
  37. 37. TM trendsStrategic trend - A global approach to TM- Global TM is needed for rapid growth- Countries share the same TM problems- Expect increasing levels of aggressiveness outside of the US (UK, India, China & Auz)- Remote work is an increasing trend A “best practice” example > 37
  38. 38. Remote work increases access to global talent Results Only Work Environment •Pick your hours •Pick where you work •No in-person meetings requiredThe business impacts:The cost of turnover is $102k per employee, ROWE teams have 3.2 % lower turnover ($13 million per year)When workers switch to ROWE, their productivity jumps by 35% 38
  39. 39. TM trendsStrategic trend – Collaboration acrossfunctions produces a $ business impact- 100 foot rule- Coffee line- Shared shuttle- Laundromat 39
  40. 40. TM trendsStrategic trend - Agility becomes a criticalsuccess factor- A range of options must be provided- Strategies must shift with the economy 40
  41. 41. TM trendsStrategic trend – Take proactive actions- Seek out people management problems- Proactively identify and “fix” bad managers- Identify and re-recruit top employees- Proactively recruit on “bad days” 41
  42. 42. TM trendsStrategic trend - Technology impactseverything- Talent management learns when to recommend technology over people- Open source has an impact- Social networks and the mobile platform dominate communications 42
  43. 43. Part II A quick view…of some best practices by functional area 43
  44. 44. TM trendsImproving internal movement- Proactive and targeted movement- Project opportunities can be bid on (Whirlpool and Google)- Rewards for releasing vs. hoarding talent Two examples > 44
  45. 45. Facilitated internal movement is a trendCareer mobility team – use it to proactively andaccurately place and to speed up internal movement 45
  46. 46. Best practices in internal movementNational Oilwell Varco offers a NFL styledraft for first year college hire rotations 46
  47. 47. TM trendsRetention trends- Be prepared for an upcoming turnover spike- Identify “who” is at risk of leaving- Prioritize people & personalize the approach- Be proactive – ask “why do you stay?”- Use post-exit interviews to find out “why”- An algorithm for predicting turnover 47
  48. 48. TM trendsRecruiting – A centralized function- Center of excellence model dominates- Most sourcing, branding and referrals are done by a centralized group- Enables better candidate sharing- Global sharing of best practices 48
  49. 49. TM trendsWar for talent returns- The power shifts back to candidates (you must become candidate centric)- The candidate experience must improve- Talent communities build relationships over time (Microsoft) 49
  50. 50. TM trendsRecruiting – Referrals dominate- #1 in both volume and quality- Responsiveness is the key- Over 50% of all hires is the target if you utilize social networks effectively An example > 50
  51. 51. Educate your employees so they can act like recruiters Source: Whirlpool 51
  52. 52. TM trendsRecruiting – Employer branding is essential- The only long-term recruiting strategy- Leverage your employees social networks- Measure & manage your negatives (glassdoor.com)- Be authentic in your messages An example > 52
  53. 53. Google demonstrates “authentic messaging” 53
  54. 54. TM trendsOn and off boarding receive new attention- Decrease time to initial productivity- ID why they said yes… to improve- Social media simplify managing alumni groups An example > 54
  55. 55. Boomerangs are high quality permanent hires Microsoft alumni networkAlso Deloitte, E&Y, Booze, McKinsey and IBM 55
  56. 56. TM trendsSuccession planning must improve- Designate and pretest immediate back fills- Be ready for a retirement boom- Identify external candidates- Identify the “non-obvious” 56 last
  57. 57. Did I make you think? If these combined examples of “leading edge” TMapproaches… were equal to 100 points on a scale…What point score would you give your firm today? www.drjohnsullivan.com 57