Competing for talent in a shrinking talent pool

1. Talent Retention
A North American Perspective
October 26th 2009, Melbourne
Breakfast
Abu Dhabi Beijing Brisbane Hong Kong Johannesburg London Melbourne Moscow Perth Shanghai Sydney Toronto

2. Context
• Reward
• Talent Management
• Alignment

3. Leaner, Fitter, Focused
People People
Policies &
Systems
Goals
Culture and
Values
People
People &
Incentives People

4. Performance and Values
INAPPROPRIATE APPROPRIATE
VALUES VALUES
MAKE THE Former New
NUMBERS
Heroes Heroes
MISS THE Potential
NUMBERS Unemployed
Heroes
Source: Dr Linda Duxbury, Carleton University

5. Values and Performance
INAPPROPRIATE APPROPRIATE
VALUES VALUES
MAKE THE Former New
NUMBERS
Heroes Heroes
MISS THE
NUMBERS Unemployed Potential
Heroes
Source: Dr Linda Duxbury, Carleton University

6. Alignment
• Doing what you say you do
• Walking the talk not just the money!
• Build a strong employment brand
• Focus on keeping who you have
• Features that attract different
generations
• Their replacements will be hard to find

7. The Employment Brand
Work
Terms and Employees
Incentive
Conditions select an
employer
because of
their overall
Reward Brand Location
satisfaction
with and
perception of
Vision Culture the
organization
Development

8. Social….Commercial Networking

9. REWARD

10. Reward
• Tighter governance around LTIs
• More stemming from GFC
• Controlling risk
• Don’t be distracted
• Follow your philosophy
• Focus on business drivers
• Do what you say you do

11. Share Price and Price of Metal
AL-NYSE vs. LME
3-mo Aluminum Price

12. TALENT MANAGEMENT

13. Declining Labour Force
• Aging population
• Inverted pyramids
• Earlier retirements
• Skill intensity
• Global competition
• Reverse Immigration
• Generational drivers

14. Impact
• Business success will be people dependent
• Appearing on board agendas once again
• Greatest opportunity ever for HR
• Retaining the boomers and attracting their
succeeding generations
• GFC has changed none of the fundamentals
• Think of employees as consumers of
employment opportunities
• The employment relationship will become (even
more!) flexible

15. Why Retention is Important
ORGANIZATION
Accelerated
Employee
Executive Development
Position
Improved
Business
Employee Value
Assignment 4
Performance
Assignment 3
Reduced
Costs
Assignment 2
Assignment 1
Career

16. Managing Velocity
• Career planning replaces succession planning
• Manage to a three year cycle
• HR attention should be devoted to all of an
assignment not just its start
• Manage flight risk AND turnover
• Culture trumps skills when promotion considered
• Make experiences really count
• Think value not cost
• Do what you say you do

17. MOBILITY

18. Development of Global Savvy
Strong career
planning system
A well defined enables
international retention of a Executive
development scarce resource Position
program will and creates
raise employer’s value
profile and Delivery of
produce higher Management internationally
quality Assignments experienced personnel
candidates to the executive suite
causes better informed
Development decision making
Assignments enhancing value and
minimizing risk

19. The Sweet Spot
Accelerate
International
Experience
High
Mobility Potential

20. Talent Hierarchy
World Class
Competing with major
employment brands
Often several offers
Exceptional
With Mid-size and Juniors
Require development in global
company processes
Solid
Attracted by development opportunity; and
Comprehensive employment brand
Significantly greater development required

21. Security and Recognition
..but out of sight
Employee expectation is
means out of mind
career progression
during career planning
Which leads to no
job at all