PERFORMANCE and talent Management

Agenda Evolution of Talent Management Process of Talent Management Emphasis on Talent Management Nine Best Practices Its Strategic Importance Employer Brand How to Attract and Retain Talent

What is Talent? According to McKinsey; talent is the sum of a person’s abilities, his or her intrinsic gifts, skills, knowledge, experience , intelligence, judgment, attitude, character, drive, his or her ability to learn and grow.

Talent Management The ability, competency and power of employees within an organization. The concept is not restricted to recruiting but also to exploration, development, transition according to the culture of the organization. It is a continuous process that involves sourcing, hiring, developing, retaining and promoting them while meeting the organization’s requirements simultaneously. 

Evolution

Process Continue

Emphasis on TM Demonstrated relationship between better talent and better business performance. Rapidly increasing source of value creation. Helps in creativity, innovation and value creation in the dynamic and complex environment. Changes of Employee Expectation. Continue

Nine Best Practices Start with the end in mind.  Talent management professionals need to move from a seat at the table to setting the table. You must know what you’re looking for—the role of Success Profiles.  The talent pipeline is only as strong as its weakest link. Continue

Nine Best Practices Talent Management is not a democracy. Potential and performance are not the same thing.  Putting the right people in the right jobs.  Software does not equal talent management. Continue

Strategic Importance Consideration to the revenue, innovation and organization effectiveness. Cost of lost opportunities, downtime and the replacement costs of losing critical talent must be analyzed. Consequences of wrong kind of managers in the leaders top management position. Investment in talent management is not short term. Talent Management is strategic and holistic approach to both HR and business planning. Continue

Conclusion Talent Management" has become one of the most important buzzwords in Corporate HR and training today. Organizations know that they must have the best talent in order to succeed in the hypercompetitive and increasingly complex global economy. They must manage talent as a critical resource to achieve the best possible results in the long run. continue

Using Employer Brand to attract talent

So, as we’re talking about brands….. Do you know which are top 10 Best Global Brands in the world (Interbrand 2006)? Or which are the 10 most Respected companies in the world (PWC 2004)? Or which are the top 10 MBA Employers in the world (Universum 2006)?

Best Global Brands 1 – Coca Cola 2 – Microsoft 3 – IBM 4 – GE 5 – Intel 6 – Nokia 7 – Toyota 8 – Disney 9 – McDonalds 10 – Mercedes World’s most respected Co’s 1 – GE 2 – Microsoft 3 – Toyota 4 – IBM 5 – Coca-Cola 6 – Dell 7 – Wall-Mart 8 – Citigroup 9 – Procter & Gamble 10 – Hewlett-Packard

Top 10 MBA Employers in the world

The talent squeeze

Working age populations Working age taken as 15-64 years

Working age populations

Reduced talent pool Aging populations Decreasing birth-rates Increased life expectancy Reduced talent pool There will be “a significant exodus of talent and experience in the next two decades and a shortage of new employees to step into roles that require specialized skills” Accenture (2005)

Global employee engagement levels Towers Perrin global workforce study (2005)

Declining employee tenure in the USA 1/3 in jobs less than 2 years 2/3 in jobs less than 5 years 1/2 employed on Interim/Contract basis 3.5 years average Years of Service Depression Survivors Pension Seekers Victims “Free Agent Nation” 2000 US Department of Labor, Employee Tenure Surveys, (1995-2000)

Maslow’s hierarchy of needs

Bigger Meaning: The Australian Leadership Foundation When looking for a job Gen Y’ers want (in this order): Training Management Style Work flexibility Staff activities Non financial rewards Salary

A less interested talent pool Aging populations Decreasing birth-rates Increased life expectancy Reduced talent pool Declining tenure Self-actualisation Drop in engagement A less interested talent pool

Together… an attraction and retention issue CIPD 2006 recruitment, retention and turnover survey: 82% of organisations reported difficulties in recruiting 69% reporting difficulties in retaining RightCoutts 2006, in Management Issues 2006 41% of Senior HR professionals thought retention of key staff was their most critical HR issue Accenture on-line survey 2006 67% of senior directors in N. America, Europe and Asia think the inability to attract and retain the best talent is one of their top 3 threats to success

Some HR Levers/Handles Employer Brand “what do people think of us?” Performance Management “where is our talent in the organisation?” Individual and Team Competence Leadership Performance Review Talent Management “how do we manage our talent?” Values and Culture Core Work Processes HR Processes Recruitment Processes “how we do attract talented people to us?” Organisation, Team and Job Design Reward & Recognition “what keeps our talent with us?” Communication “how do we talk to our talented people?”

Employer Brand

What is it? “The package of functional, economic, and psychological benefits provided by employment, and identified with the employing company”, Ambler & Barrow 1996 A long term strategy that establishes an organisation’s identity as an employer Which differentiates them from competitors in the employment market

Where do you start? The development of an employee value proposition (EVP) Capturing in one statement, the sum of “everything that people experience and receive while they are part of the company” It must be aligned to the overall brand and reputation

Who is it for? Potential employees – to persuade more and better applicants to apply and accept offers Current employees – to reduce turnover, increase employee motivation, a sense of belonging and align behaviour to the organisation’s needs Consistency of messages across both groups is vital as the organisation has to deliver what it promises Projecting an unrealistic image may improve recruitment but can increase attrition

Brand Strength Brand strength Attraction of the right candidates Employee engagement and retention Differentiation from competitors Customer engagement and retention Employer Brand The unique and differentiating promise a business makes to its employees and potential candidates Employee experience Actual delivery of the promise throughout the employee lifecycle + Attraction of high quality employees is a competitive necessity Engagement of high quality employees is a bottom line issue

Employer brand benefits Significant decreases in cost per hire Reduced cost of recruitment - efficiencies maximised throughout the recruitment process Reduction in recruitment marketing costs over time Greater numbers of higher quality applicants Higher performing employees Increased retention rates Stronger reputation in the marketplace Increased ability to attract specialist talent in a difficult market

ATTRACTING TALENT

“People are your greatest asset only when you hire the right person for the right job”

DEFINE ATTRACTION STRATEGY High Scarcity Low Value High Value High Scarcity Low Value & Low Scarcity High Value Low Scarcity 35

HOW TO ATTRACT TALENT TO YOUR ORGANISATION? Strong Employer Value Proposition & Employer Brand Build a talent mindset from within the organisation, retention and acquisition Differentiate yourselves Work life balance; flexible working hours; compressed working week; gym memberships; Think globally not locally- articulate a relocation/immigration plan Quality and functionality of your CRM tool is critical

WELL CRAFTED JD’S Candidates are clear on what the role responsibilities are when applying It is in plain speak Its primary focus is as a attraction NOT selection tool. Oh dear!  These excerpts were taken from Microsoft job descriptions! “The scope of this position is primarily local in its execution scope.” “Over the next 3 years the re-signing of EAs is a core EG  activity which we will achieve in co-operation with relevant people in SMS&P and BMO as we align for better CPE across MS” “The position isn’t being modified however, we are seeking a more senior and experienced sales professional than previously.” 37

ADVERTISE / PROMOTE THE OPENING STEP # 3 Online / offline advertising Media (Roles of seniority, niche skill sets) Company Website; Intranet; Seek, My Career; CareerOne; Innovative ways to recruit - LinkedIn; Ning; Bebo; Twitter; Facebook; Recruit through using networks Employer Referral Program Promote from within Industry forums Diversity Longer term strategy is to build relationships with Universities / schools / colleges Engage Recruitment /Specialist agencies if required 38

HOW TO RETAIN TALENT Once candidates have been hired Formal Career development plans Formal mentoring program Offer training and development to staff Reward and recognition – formally and informally Benefits – review and constantly update in a competitive market Remember it is not always about money

CREATIVE ATTRACTION METHODOLOGIES I’m looking for a boss – is it you campaign? Http://blogs.msdn.com/acoat/archive/2009/07/12/i-m- looking-for-a-boss-is-it-you.aspx Protégé http://www.microsoft.com/australia/protege/ http://www.gradcareers.com.au/blog/tag/protege/

EVP Components That Drive Satisfaction1 Exciting work – quite simply, people want interesting, challenging jobs and they want to feel passionate about their work. A great job is demanding and stretching and full of requirements that the individual finds interesting and worthwhile. Great company – managers want to work for companies that are well managed, that have admirable corporate cultures and values, and great leaders. Two aspects of culture are critical: a strong emphasis on performance and an environment that is open and trusting.

EVP Components That Drive Satisfaction2 Wealth and reward – people want to make money that is commensurate with the value they create and with their other options. This is about more than the tangible value of the money; people want to feel recognized and valued for their individual contributions. Growth and development – managers want the company to help them develop their skills. This is particularly important today, when people realize that theironly real security in the job market is the collection of skills they possess.

Talent mindset

Employee Value Proposition

Recruiting

Growing leaders

Differentiation

THANKS For Your Patience