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2012 Human Capital Conference
23–26 October




                          Talent management
                          challenges in today’s global
                              k t
                          markets
Disclaimer

►   Ernst & Young refers to the global organization of member firms of
    Ernst Y
    E t & Young Global Li it d each of which i a separate l
                     Gl b l Limited,      h f hi h is            t legal entity.
                                                                        l tit
    Ernst & Young LLP is a client-serving member firm of Ernst & Young
    Global Limited located in the US.
►   This
    Thi presentation i ©2012 E t & Y
                 t ti is          Ernst Young LLP All rights reserved. N
                                                  LLP.      i ht          d No
    part of this document may be reproduced, transmitted or otherwise
    distributed in any form or by any means, electronic or mechanical,
    including by photocopying, facsimile transmission, recording, rekeying,
                  photocopying              transmission recording rekeying
    or using any information storage and retrieval system, without written
    permission from Ernst & Young LLP. Any reproduction, transmission or
    d st but o o t s o o a y o t e ate a e e s p o b ted and s
    distribution of this form or any of the material herein is prohibited a d is
    in violation of US and international law. Ernst & Young LLP expressly
    disclaims any liability in connection with use of this presentation or its
    contents by any third party.
►   The views expressed by panelists in this session are not necessarily
    those of Ernst & Young LLP.


Page 2                 Talent management challenges in today’s global markets
Presenters


►   Bill Leisy
             y                                    ►     Bill McClain
    ►    Ernst & Young LLP                              ►    Bunge EMEA
    ►    Global Market Leader, Talent                   ►    Vice President Human
         Management                                          Resources
    ►    william.leisy@ey.com                           ►    william.mcclain@bunge.com




Page 3                Talent management challenges in today’s global markets
Our discussion today


►   Talent management: A p
                g            point of view
►   Global mobility: a strategic component of your global
               g
    talent management
►   Discussion around Ernst & Young’s 2012 global talent
    management surveys: (rapid growth markets, talent
    management in high-performing organizations)
►   Talent 2020: the next chapter
►   Questions and answers




Page 4            Talent management challenges in today’s global markets
Talent management is all about your people

The ability to execute business strategy is directly related to effectively
attracting, retaining, developing and engaging your key talent. If
done well, talent management creates a sustainable competitive
advantage for businesses and a strong employer brand in the
marketplace.




Page 5               Talent management challenges in today’s global markets
Talent management is all about your people


►   A key business issue (Number three g
        y                 (              global business
    issue – Ernst & Young survey 2012; CEOs spend more
    than 70% of their time)
►   Simply, the people issues in your organization – not just
    an HR issue
►   A Point of view:
    ►    Alignment to business strategy
    ►    Integration within your business operation
         I t    ti    ithi       b i           ti




Page 6                 Talent management challenges in today’s global markets
Must be aligned to your business strategy
and supported by HR


    Business strategy
                                               Talent
                                                 g
                                             management



                                              HR programs


                                             HR processes
                                                 p ocesses
                                                  and
                                            service delivery

                                            HR compliance
                                                 and
                                             governance


Page 7                  Talent management challenges in today’s global markets
Helps execute your business strategy


                                 Talent strategy/
                                  HR strategy                                      Talent
                                                                                 management
                                Company/HR                                                    Employee
                                                         Workforce analytics
     Business strategy         operating model                                                  life     Performance metrics
                                                       (internal and external)    Global
                                                                                               cycle
                                                                                  mobility
                                  Company/HR
                                      p y
                              organization structure




                         20.5%
                         20 5%                                               38.0%
                                                                        greater financial return when
                         greater financial return                       integrating key components of
                         when companies align                           talent management programs
                         their business strategy                        and processes together and
                         and talent management                          throughout the organization

                Talent management alignment and integration drives ROI.


Page 8                              Talent management challenges in today’s global markets
Highlights from our 2012 global talent
management surveys: rapid growth markets

►   810 global executives:
        g
    ►    53% C-suite (CEO, CFO, others)
    ►    35 rapid growth markets; 21 industry groups
    ►    44% more than US$1 billion revenues
►   Four key talent management global challenges:
    ►    Top management teams lack international experience.
    ►    The lack of an internal management pipeline forces companies to
         recruit from rivals.
    ►    Companies are unable to effectively retain and reward high
         performers.
    ►    C-suite leaders and operational managers hold conflicting views
         on talent management.


Page 9                 Talent management challenges in today’s global markets
Key talent management challenges


►   Top teams lack international experience.
      p                            p
Figure 1: International experience of top management team




Page 10                  Talent management challenges in today’s global markets
Key talent management challenges


►   The lack of an internal management p p
                                 g     pipeline forces
    companies to recruit from rivals.
  Figure 2: Building an international management team
    g              g                      g




Page 11                  Talent management challenges in today’s global markets
Key talent management challenges


►   Companies are unable to effectively retain and reward
         p                            y
    high performers.
          Figure 3:3: Effective team management
          Figure Effective team management




Page 12                 Talent management challenges in today’s global markets
Key talent management challenges


►   C-suite leaders and operational managers hold conflicting
                         p              g                   g
    views on talent management.
     Figure 4: Building an international management team
       g              g                      g




Page 13                   Talent management challenges in today’s global markets
Talent management in high-performing organizations
(
(survey to be released December 2012)
      y                             )

►   Talent management characteristics in high-performing
                g                          g p         g
    organizations:
    ►     A greater investment in talent management focused on meeting
          strategic and financial objectives (global mobility to leadership
          development)
    ►     U e e t g ocus on developing and sustaining a st o g
          Unrelenting focus o de e op g a d susta          g strong
          leadership pipeline (succession planning No. 1 difference)
    ►     Developing leaders early in their careers and getting them the key
          diverse,
          diverse international experiences
    ►     Using the same talent management outcomes as all organizations
          to measure success (employee satisfaction, retention), however
          putting more emphasis on external employer brand
    ►     Greater alignment of performance and paying for performance


Page 14                 Talent management challenges in today’s global markets
Strategies and best practices in talent
management
                                                                                                    Best practice results:
                         Identify the right        ► Define the capability framework,
                                                     including j b f ili
                                                     i l di job families, roles profiles,
                                                                                  l      fil
                               need                                                                 ►   Strong ER brand
                                                     skills and competencies
                                                   ► Estimate and forecast workforce
                                                     requirements by skills and competencies
                                                   ► Prioritize the critical skill sets and roles   ►   Attraction and
                                                                                                        retention of the
          Optimize hiring       ► Develop the hiring strategy                                           “right” employees
                                                                                                         right
                                ► Articulate the employee value proposition
          and on-boarding
                                ► Evaluate skills and competencies
                                ► Develop on-boarding mechanisms that                               ►   Improved employee
                                  enhance productivity                                                  satisfaction and
                                                                                                        engagement

   Engage to retain     ► Understand key levers for                                                 ►   Higher employee
                          engagement at each location
                        ► Track and respond to data
                                                                                                        productivity
                        ► Personalize interventions based on
                          EVP
                                                                                                    ►   Great HR efficiency

                      ► Develop total rewards that                                                  ►   Improved HR
Develop and grow        reflect the EVP, engagement
                                                                                                        effectiveness
                        plan, etc.
                      ► Align total rewards strategy
                        with labor cost model
                                                                                                    ►   Financial returns
                             Reward broadly            ► Leverage sub-functions across
                                                         operations to develop skills and           ►   Best companies to
                                                         capabilities
                                                       ► Link individual objectives to                  work for/best
                                                         improvements in performance measures           employers



Page 15                                    Talent management challenges in today’s global markets
How to get started

►   Align and integrate talent management and global mobility objectives (work
    together)
►   Review the effectiveness between talent management and global mobility
    (e.g., career development, succession planning, leadership development,
    performance management, workforce planning)
►   Review how effectively you are in recruiting, retaining, developing, engaging
    top talent
      p
►   Questions you need to be able to say yes to:
    ►     Do you know the jobs that need international experiences, the type of experiences
          and how employees will g it?
                       p y          get
    ►     Is your leadership pipeline in critical positions three levels deep?
    ►     Can you measure meaningful outcomes from your talent management and global
          mobility programs?
    ►     Have you aligned performance measures from the organization, region/division,
          business units/functions and individual employees?
    ►     Have you created a strong employer brand that is consistent with your talent
          management and employee life cycle commitments?
Page 16                    Talent management challenges in today’s global markets
Talent management 2020


                       Business strategy




                       Business strategy




Page 17    Talent management challenges in today’s global markets
Questions




Page 18     Talent management challenges in today’s global markets

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EY Human Capital Conference 2012: Talent management challenges in today’s global markets

  • 1. 2012 Human Capital Conference 23–26 October Talent management challenges in today’s global k t markets
  • 2. Disclaimer ► Ernst & Young refers to the global organization of member firms of Ernst Y E t & Young Global Li it d each of which i a separate l Gl b l Limited, h f hi h is t legal entity. l tit Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US. ► This Thi presentation i ©2012 E t & Y t ti is Ernst Young LLP All rights reserved. N LLP. i ht d No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, photocopying transmission recording rekeying or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or d st but o o t s o o a y o t e ate a e e s p o b ted and s distribution of this form or any of the material herein is prohibited a d is in violation of US and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party. ► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP. Page 2 Talent management challenges in today’s global markets
  • 3. Presenters ► Bill Leisy y ► Bill McClain ► Ernst & Young LLP ► Bunge EMEA ► Global Market Leader, Talent ► Vice President Human Management Resources ► william.leisy@ey.com ► william.mcclain@bunge.com Page 3 Talent management challenges in today’s global markets
  • 4. Our discussion today ► Talent management: A p g point of view ► Global mobility: a strategic component of your global g talent management ► Discussion around Ernst & Young’s 2012 global talent management surveys: (rapid growth markets, talent management in high-performing organizations) ► Talent 2020: the next chapter ► Questions and answers Page 4 Talent management challenges in today’s global markets
  • 5. Talent management is all about your people The ability to execute business strategy is directly related to effectively attracting, retaining, developing and engaging your key talent. If done well, talent management creates a sustainable competitive advantage for businesses and a strong employer brand in the marketplace. Page 5 Talent management challenges in today’s global markets
  • 6. Talent management is all about your people ► A key business issue (Number three g y ( global business issue – Ernst & Young survey 2012; CEOs spend more than 70% of their time) ► Simply, the people issues in your organization – not just an HR issue ► A Point of view: ► Alignment to business strategy ► Integration within your business operation I t ti ithi b i ti Page 6 Talent management challenges in today’s global markets
  • 7. Must be aligned to your business strategy and supported by HR Business strategy Talent g management HR programs HR processes p ocesses and service delivery HR compliance and governance Page 7 Talent management challenges in today’s global markets
  • 8. Helps execute your business strategy Talent strategy/ HR strategy Talent management Company/HR Employee Workforce analytics Business strategy operating model life Performance metrics (internal and external) Global cycle mobility Company/HR p y organization structure 20.5% 20 5% 38.0% greater financial return when greater financial return integrating key components of when companies align talent management programs their business strategy and processes together and and talent management throughout the organization Talent management alignment and integration drives ROI. Page 8 Talent management challenges in today’s global markets
  • 9. Highlights from our 2012 global talent management surveys: rapid growth markets ► 810 global executives: g ► 53% C-suite (CEO, CFO, others) ► 35 rapid growth markets; 21 industry groups ► 44% more than US$1 billion revenues ► Four key talent management global challenges: ► Top management teams lack international experience. ► The lack of an internal management pipeline forces companies to recruit from rivals. ► Companies are unable to effectively retain and reward high performers. ► C-suite leaders and operational managers hold conflicting views on talent management. Page 9 Talent management challenges in today’s global markets
  • 10. Key talent management challenges ► Top teams lack international experience. p p Figure 1: International experience of top management team Page 10 Talent management challenges in today’s global markets
  • 11. Key talent management challenges ► The lack of an internal management p p g pipeline forces companies to recruit from rivals. Figure 2: Building an international management team g g g Page 11 Talent management challenges in today’s global markets
  • 12. Key talent management challenges ► Companies are unable to effectively retain and reward p y high performers. Figure 3:3: Effective team management Figure Effective team management Page 12 Talent management challenges in today’s global markets
  • 13. Key talent management challenges ► C-suite leaders and operational managers hold conflicting p g g views on talent management. Figure 4: Building an international management team g g g Page 13 Talent management challenges in today’s global markets
  • 14. Talent management in high-performing organizations ( (survey to be released December 2012) y ) ► Talent management characteristics in high-performing g g p g organizations: ► A greater investment in talent management focused on meeting strategic and financial objectives (global mobility to leadership development) ► U e e t g ocus on developing and sustaining a st o g Unrelenting focus o de e op g a d susta g strong leadership pipeline (succession planning No. 1 difference) ► Developing leaders early in their careers and getting them the key diverse, diverse international experiences ► Using the same talent management outcomes as all organizations to measure success (employee satisfaction, retention), however putting more emphasis on external employer brand ► Greater alignment of performance and paying for performance Page 14 Talent management challenges in today’s global markets
  • 15. Strategies and best practices in talent management Best practice results: Identify the right ► Define the capability framework, including j b f ili i l di job families, roles profiles, l fil need ► Strong ER brand skills and competencies ► Estimate and forecast workforce requirements by skills and competencies ► Prioritize the critical skill sets and roles ► Attraction and retention of the Optimize hiring ► Develop the hiring strategy “right” employees right ► Articulate the employee value proposition and on-boarding ► Evaluate skills and competencies ► Develop on-boarding mechanisms that ► Improved employee enhance productivity satisfaction and engagement Engage to retain ► Understand key levers for ► Higher employee engagement at each location ► Track and respond to data productivity ► Personalize interventions based on EVP ► Great HR efficiency ► Develop total rewards that ► Improved HR Develop and grow reflect the EVP, engagement effectiveness plan, etc. ► Align total rewards strategy with labor cost model ► Financial returns Reward broadly ► Leverage sub-functions across operations to develop skills and ► Best companies to capabilities ► Link individual objectives to work for/best improvements in performance measures employers Page 15 Talent management challenges in today’s global markets
  • 16. How to get started ► Align and integrate talent management and global mobility objectives (work together) ► Review the effectiveness between talent management and global mobility (e.g., career development, succession planning, leadership development, performance management, workforce planning) ► Review how effectively you are in recruiting, retaining, developing, engaging top talent p ► Questions you need to be able to say yes to: ► Do you know the jobs that need international experiences, the type of experiences and how employees will g it? p y get ► Is your leadership pipeline in critical positions three levels deep? ► Can you measure meaningful outcomes from your talent management and global mobility programs? ► Have you aligned performance measures from the organization, region/division, business units/functions and individual employees? ► Have you created a strong employer brand that is consistent with your talent management and employee life cycle commitments? Page 16 Talent management challenges in today’s global markets
  • 17. Talent management 2020 Business strategy Business strategy Page 17 Talent management challenges in today’s global markets
  • 18. Questions Page 18 Talent management challenges in today’s global markets