1 The New Balance Sheet

Recognizing Human Capital as a Competitive Asset The New Balance Sheet By Frank Pacheco

The New Balance Sheet ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],OVERVIEW Human Capital is the main competitive advantage of the 21st century………. …….Mergers - Acquisitions; Technical Advancements; Globalization - Emerging Markets; Demographics and the “War for talent” Let me walk you through it quickly….

Human Talent as Misunderstood Capital ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],According to Gary Becker, winner of the Noble Prize in Economics, 65% of all capital in a highly evolved economy is Human Capital, therefore, workforce management has a prominent role and the investment in technology to aid its endeavor is justifiable

Does Talent Make A Difference? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],It takes 3x the number of bodies at IBM to produce the same revenue as Dell…….IBM has lost 60% of the PC market share Revenue per Employee Total sales revenue # of employees If rev per employee is $160,000 10 x 160K = $1,600,000…Then Top talent can make an extra $1,440,000 per year (Top RPE) 10% Top Performers The rest =

Talent Lost and Won ,[object Object],[object Object],[object Object],Babe Ruth With the Red Sox Babe Ruth With the Yankees

[object Object],It Makes A Difference!.....Act Quickly ,[object Object],[object Object],[object Object],[object Object],[object Object],Just Do It ! Kai-Fu Lee Looses lawsuit to Over hiring their Top Talent Google’s stock is up 200% since Mr. Lee’s arrival Set fixed standards Set fixed standards Set fixed Standards Expedite your hiring practice

Cost Analysis for Loosing Talent ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],This is a shared responsibility between the hiring managers and recruiting staff Each business units needs a “Talent Acquisition and Management Strategy”

Cost Per Hire (CPH) Yearly average 100 Open reqs. per 5000 employees External $ 34,844 X 100 --------------------------------- $ 3,484,400 Internal $6,625 X 100 ----------------------------- $ 662,500 Executive Search CPH HR Team CPH Yearly Savings for using Your Internal Recruiters $2,821,900 Cost Analysis for Acquiring Talent Source of Hire Internet Print Advertising Job Fairs Employee Referrals Contingency Agencies College Recruiting Executive Search Exempt CPH $ 213 2,084 1,284 500 15,596 2,544 34,844 Non-Exempt CPH $ 51 726 70 70 2,076 457 7,838 Source: EMA 2000 Cost Per Hire and Staffing Metrics Survey

HR Strategy is Key to Business Success ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Profits, Growth & Shareholder Value 1 2 3 Star Over Good people make companies successful and attracting Top Talent requires mastering…..

Client-Candidate Relations, Power Sourcing, Metrics and Reporting By Frank Pacheco The Art of War Talent Acquisition

The Art of Talent Acquisition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Talent Acquisition and Management Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],(TAMS)

Phase One ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Understand Your Organization

Understanding Talent Types ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Customers, competitors, investors and other website visitors that are already coming to your website but won’t leave a resume Passive Active These are candidates with active resumes “ C” Managers don’t hire “A” Players “ A” Players won’t work for “C” Managers “ C” Recruiters can’t recruit “A” Players

Phase Two ,[object Object],[object Object],[object Object],[object Object],Understand What You Are Seeking ,[object Object],[object Object],[object Object],[object Object],[object Object]

Attracting Top Talent (Beyond $$$) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Candidate Concerns 2% 17% 19% 23% 37% 0% 10% 20% 30% 40% The bureaucratic red tape and lengthy hiring process* Offering competitive compensation Benefits, pensions, vacation time Top talent unaware of available jobs* Perception of boring and bureaucratic jobs

Phase Three ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Recruit Aggressively There is an ongoing Talent Acquisition War Your competitors know your top producers by name!

Process Drives Talent Acquisition ,[object Object],Seeker Universe Filtering, Screening Scoring Client Relations Highly qualified candidates

Recruiting Roundtable Research (I)

Recruiting Roundtable Research (II)

1 The New Balance Sheet

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1 The New Balance Sheet