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21st Century Talent Management: The New Ways Companies Hire, Engage, and Lead
The document discusses the evolving landscape of talent management in the 21st century, emphasizing the necessity for organizations to adapt their talent acquisition, performance management, and employee engagement strategies to meet the needs of a changing workforce. Key challenges highlighted include attracting and retaining millennial talent, enhancing leadership development, and utilizing data analytics in HR practices. The importance of fostering a continuous learning culture and inclusivity in the workplace is also underscored as vital for organizational success.
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21st Century Talent Management: The New Ways Companies Hire, Engage, and Lead
- 1. 21st Century Talent Management: Thrivingin the New Workforce and New Workplace Josh Bersin Principal, Deloitte Consulting LLP 1
- 2. Who WeAre - - Global provider of leading practices, trends, and benchmarking research in talent management, learning, and strategic HR. 60% of the Fortune 100 are Bersin by Deloitte research members, with more than 19.5 million employees managed by HR teams using Bersin Research. Broad Research Practices • • • • • Human Resources Leadership Development Learning & Development Talent Acquisition Talent Management Offerings - WhatWorks® Membership: Research, Tools, Education, Benchmarking - IMPACT®: The industry’s premiere conference on the Business of Talent - Human Resources Leadership Development Learning & Development Talent Acquisition Advisory Services & Consulting Talent Management 2
- 3. Agenda Today’s TalentChallenges Talent Management: Then and Now 21st Century Talent Management: Things are Different 1. Rethink Talent Acquisition 2. Redo Performance Management 3. Improve Engagement and Retention 4. Understand Millenials needs 5. Deliver Continuous Learning 6. Create 21st Century Leadership 7. Invest in Talent Analytics and BigData 3
- 4. What HR LeadersSay We are shifting our business to a services business. How do I transform the workforce? How do we more rapidly move talent from early leadership to senior leadership? The skills of our HR business partners and specialists need improvement. How can I retain and engage my top talent? We need to restructure HR to build common systems and reduce costs. Our training organization is too expensive and not driving enough value. Our mid-level and entry leadership gaps are still huge Our company has capability gaps in new technology areas across the organization. We are still having trouble attracting millenials and GenX workers. How do we create more collaboration and knowledge sharing across the company? How do we increase women and diversity in leadership? We need to accelerate hiring of senior and mid leadership in Asia and Middle east. Our performance and comp process is obsolete and not engaging people. How can we globalize our employment brand and talent programs?? We compete for engineers with some of the most successful silicon valley companies? How can I attract and retain the brightest in our company? We need better data and analytics in HR. 4
- 5. Talent is aCEO Level Issue 5
- 6. Shift in GlobalEconomic Activity to India, China from US and EU India 3% to 6% China 2% to 18% EU 31% to 17% US 25 to 18% Deloitte Human Capital Trends 2013 6
- 7. The World isFlat The World is Local 7
- 8. Talent Management The BigShift 8
- 9. “Integrated” Talent Management Slow Response to Changing Business Needs Traditional Silos of HR - Inability to identify current and future talent gaps Hiring strategy and development planning not in sync No clear picture of future “talent profile” Leadership pipelines in jeopardy Disconnected Decision Making Compensation - Benefits Succession Planning Leadership Development Performance Management Sourcing & Recruiting Workforce Planning Learning & Development - Data and processes not integrated Talent not shared across business units Learning plans not linked to assessments and skills gaps in current talent pool Lack of visibility into talent gaps Not responsive to Employee Demands - Employees want career development Defined career paths and competencies not clear and consistent Talent mobility difficult during change Managers still the weakest link in organizational performance Administratively Intensive - Data entry is repetitive High volume of manual work to complete HR review processes Difficult to obtain executive-level talent information Hard to plan for the future 9
- 10. The Big Shift 2013+ ..Embed (and“Datify”) 2013+ ..Optimize (Globally) 2005-2012 Automate & Integrate 10
- 11. Recreating the HROrganization Where HR Transformation is Taking us in 2013 BusinessIntegrated HR Integrated Talent Management Strategic HR Personnel Department Administration Payroll Regulation Back Office Function Recruiting, L&D, Org Design Total Rewards Service Center, COE HR Business Partner Management, Succession, Leadership, Coaching, Integrated Processes Talent Management Differentiate & Segment Talent Globally Optimize Talent Practices Predict and Analyze Data Integrated with the Business Drive the Business Plan for the Future Enable Decisions and Management Serve Staff Automate Control 11
- 12. 1 Talent Acquisition: Unleashed “The MostImportant part of Talent Management” 12
- 13. The War forThe Best People 13
- 14. What Makes aGreat Employer? Universum Global Employment Brand Research, n=2300 14
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- 17. Importance of GlobalGovernance Attracting the right candidate in the right place quickly, efficiently, and consistently 17
- 18. Corporate Recruiting Today SourcingContinues to be Critical Where Candidates Come From $3300 per hire Up 6% in 2012 Employee referrals, 14% Search aggregators, 8% Job boards, 18% Internal candidates, 18% Other, 2% Print, newspaper, billboards, 3% University recruiting, 7% Time to Hire 55 Days Company website, 14% Agencies, 3rd party recruiters, 9% Professional networking sites, 9% Bersin High-Impact Talent Acquisition, 2013 18
- 19. Using Next GenerationTools Remarkable Hire GILD Remarkable Talent Entelo 19
- 20. Key Practices thatDrive Value High-Impact Talent Acquisition – High-Impact vs. Average 20
- 21. 2 Performance Management Unleashed “Re-Engineering thePerformance Process” 21
- 22. Value of PerformanceManagement Companies are Questioning the Traditional Model Economic Recovery Layoffs, Restructuring Performance to Survive Changing the Performance Management Process Borderless Workplace Change in Demographics New Labor Market Value of Performance Management 2008 2009 2010 2011 2012 2013 22
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- 24. Performance Management Today Inthe Past Today Annual appraisal and rating Continuous feedback and coaching Annual goals and objectives Quarterly or regular goal setting Annual talent reviews by team Continuous talent reviews by peers and manager Development as afterthought Development as core Recognition by manager Recognition by peers Career plan for promotion Career plan for great projects and mobility Up or Out Across, down, up, and around 24
- 25. Reimagining the PerformanceReview using Agile Development Our Performance Management goal: Inspire and motivate employees to achieve higher levels of performance . © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
- 26. Performance Review Result “Stackranking is a soul-less and soul crushing exercise.” + Attrition Spike & Loss of Talent – Adobe manager + Barrier to Teamwork & Innovation “I have seen and experienced the reaction to the review process being a primary driver in driving good people from the company.” + Impacts Internal Focus & Productivity – Adobe manager + Impacts Morale & Engagement “What is important is the conversation between the employee and the manager.” ___________________ – Adobe manager It’s time for change 26 26
- 27. Balancing Structure &Flexibility Performance Check-in Clear and up to date expectations revisited throughout the year Timing and methods flexible No ranking or forced distributions to determine rewards No written formal review* Annual compensation planning Managers are responsible to differentiate pay based on performance and market conditions No fixed guidelines Ongoing feedback focused on performance Rewards Check-in © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
- 28. Kelly Services Clarifying thePurpose of PM Performance Feedback Employee Motivation Coaching for Development Compensation PERFORMANCE MANAGEMENT Legal Legal Documents Documents Talent Talent Decisions Decisions Performance Improvement Source: “Getting Away from the Score: Creating Better Ongoing Performance Feedback,” Bersin & Associates, 2012. . 28
- 29. Millenials Take Over 3 “Diversity,Inclusion, Mission, Culture Work-Life Balance, and Work Environment.” 29
- 30. The Environment hasChanged Family Structure & Role of Women Flattened Organizations 1970s: GM has 22 layers Today it has 7 Value from Intangible Assets 1970s Today 60% 85% Desire for Work-Life Fit Millenials 8% Boomers 30% 92% “60% of the skills needed in the next 20 years are not even invented yet.” - World Economic Forum 70% Want job flexibility Work-life not big priority 30
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- 32. Millenials: Recognition, Career Growth,Flexible Work Environment Millenials Boomers and Others Career Growth 4.7 4.2 Global Opportunities 4.9 4.3 Focus on short term rather than long term opportunities 2.9 4.3 Clearly defined job descriptions 2.7 4.4 Challenging roles 4.5 3.8 Relationship with immediate manager 3.8 4.4 Work from home option 4.5 3.7 Use all vacation time 4.1 3.4 Rewards and recognition 4.6 4.5 32
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- 34. The Millenial Puzzle Loyalty Topeople (boss) not just the organization Of their peers, not just their managers, “collective intelligence” Approval Achievement Accomplishment matters, but so does “innovation” They “verify” truth with their friends and their own sources Trust 34
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- 36. 4 Engagement and Retention Unleashed “Diversity,Inclusion, Mission, Culture Work-Life Balance, and Work Environment.” 36
- 37. Colliding Factors inEngagement Racial and Cultural Diversity Virtual Work Environment Gender Women A Passionate, Highly Engaged Workplace? Unemploym ent Stress Work Life Balance Youth Part Time Contingent Work Technology 37
- 38. Engagement Still anIssue Even coming out of the recession, 40% of employees are “disengaged” Europe improving but North America is down. Still 40% “disengaged.” Aon Hewitt 2013 Engagement Trends 38
- 39. Demand for WorkplaceFlexibility • 68% of women without children would rather have more free time than make more money — even more than those with children (62%). More magazine – 2012, “Women in Workplace Study,” http://www.more.com/flexible-job-survey • One of every five employees cares for elderly parents, a number that could increase to almost half of the workforce over the next several years. http://whenworkworks.org/research/downloads/FlexAtAGlance.pdf • 40% of professional men work more than 50 hours per week. Of these, 80% would like to work fewer hours. Center for American Progress. August, 2012 http://www.americanprogress.org/wp-content/uploads/issues/2012/08/pdf/flexibility_factsheet.pdf 39
- 40. What Motivates Usat Work? “Endearing companies are Enduring” “Meaning is the new money.” Only intrinsic motivation drives performance for creative work, not traditional reward systems or money. 40
- 41. Rethinking the EngagementPuzzle How do we create Passion in the workforce? Mission and Purpose “Who we are and why we do what we do” Inclusion & Diversity Recognition Rewards Work-Life Balance Career Opportunity “I feel included” “I feel recognized” “My life works.” “I can progress” Passion “I love my work (company)” Performance Our job is to create meaningful work in a meaningful work environment. “I deliver extra effort.” 41
- 42. Inclusion & Diversityas Strategy Diversity Makes Business Sense 42
- 43. Importance of Recognition Maslow’sHierarchy of Leads Self Actualization Career , Development Opportunities (challenge, opportunity, learning, creativity) Esteem #1 reason people leave is because of lack of recognition at work (importance, recognition, respect) Modern Recognition Love/Belonging (social, love, family, team) Safety (economic and physical security) Compensation & Benefits Survival (food, water, sleep) 43
- 44. Recognition Drives Retention VoluntaryTurnover Rate 12% 10.5% 10% 8% 8.7% 31% Reduction in voluntary turnover! 7.2% Or 46% higher turnover when moving from excellent to poor. 6% 4% 2% 0% Excellent (5) Fair (3-4) Poor (1-2) Effectiveness of Recognition Program at Improving Employee Engagement Source: Bersin & Associates Recognition Survey for HR Practitioners, January 2012, n = 573. 44
- 45. The Retention EngagementModel Why engagement really matters © Bersin by Deloitte 45
- 46. 5 Continuous Learning Unleashed “Learning allthe time, focused, effective, continuous, and talent-driven” 46
- 47. The Continuous LearningModel Continuous Learning Expert Career Pathways Coaching Mentoring E-learning courses Communities of Practice Social, Mobile Sharing Career Development Training Event Job Aids Novice Traditional Training Time 47
- 48. A Modern LearningArchitecture EMC 48
- 49. The Cheesecake Factory VideoSharing and Games Build Culture and Engagement 49
- 50. Need for LearningCulture Great Corporate University Strong CLO and Alignment Excellent L&D Skills Excellent Training and E-Learning Use of rich media and social tools Innovative program design Have we created an organization which truly has a culture to learn? Does leadership reinforce the need to learn? Is expertise rewarded and valued? Are decisionmaking processes clear? Do people share information openly? Do people feel empowered to point out errors? Do we take the time to reflect? Do people move around and take risks? Do we listen to customers openly? 50
- 51. Organizations with aStrong Learning Culture Significantly Outperform their peers… Innovation Productivity Time to Market Quality Skills for the Future Profitability 46% 37% 34% 26% 58% 17% more likely to be first to market greater employee productivity better response to customer needs greater ability to deliver “quality products” more prepared to meet future demand more likely to be market share leader 51
- 52. 6 Global Leadership Unleashed “Developing anddelivering leadership programs that business sponsors care about.” 52
- 53. 21st Century LeadershipModels New Model for Leaders Creativity, not planning Quick decision-making Getting closer to customers Globalization, diversity Continuous change Manage unexpectedness Agility, not control 53
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- 56. Developing 21st CenturyGlobal Leaders Strong leadership traits vary widely from country to country Gen Y leaders must be developed through 12-18 month assignments Local leadership not trumps “expat leadership” in most high performing companies Embrace the new concepts of a leader: inspiration and teamwork 56
- 57. Talent Analytics 7 “The Dataficationof HR” 57
- 58. This Science isComing to HR Definition of “Science”: “Systematic knowledge of the world gained through observation and experimentation.” What is Not Science Making talent decisions on the basis of “gut feel,” “beliefs,” or “philosophies.” 58
- 59. 21st Century TalentManagement This are Different Now 1. Rethink Talent Acquisition 2. Redo Performance Management 3. Improve Engagement and Retention 4. Deliver Continuous Learning 5. Create 21st Century Leadership 6. Invest in Talent Analytics and BigData http://marketing.bersin.com/2013-predictions.html 59