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21st Century Talent Management: The New Ways Companies Hire, Engage, and Lead

How are world-class companies managing their people in 2014 and beyond? This detailed research-based presentation overviews the new solutions for talent acquisition, leadership development, engagement, building Millenial leadership and employee capability development.

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21st Century Talent Management: The New Ways Companies Hire, Engage, and Lead

  1. 21st Century Talent Management: Thriving in the New Workforce and New Workplace Josh Bersin Principal, Deloitte Consulting LLP 1
  2.  Who We Are - - 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 Talent Challenges  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 Leaders Say 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 a CEO Level Issue 5
  6. Shift in Global Economic 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 is Flat The World is Local 7
  8. Talent Management The Big Shift 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 HR Organization 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 Most Important part of Talent Management” 12
  13. The War for The Best People 13
  14. What Makes a Great Employer? Universum Global Employment Brand Research, n=2300 14
  15. 15
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  17. Importance of Global Governance Attracting the right candidate in the right place quickly, efficiently, and consistently 17
  18. Corporate Recruiting Today Sourcing Continues 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 Generation Tools Remarkable Hire GILD Remarkable Talent Entelo 19
  20. Key Practices that Drive Value High-Impact Talent Acquisition – High-Impact vs. Average 20
  21. 2 Performance Management Unleashed “Re-Engineering the Performance Process” 21
  22. Value of Performance Management 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
  23. Two Philosophies 23
  24. Performance Management Today In the 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 Performance Review 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 “Stack ranking 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 the Purpose 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 has Changed 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
  31. Millenials are Different 31
  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
  33. Transparency: Millenials Expect It 33
  34. The Millenial Puzzle Loyalty To people (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
  35. What to Do Embed Purpose and Meaning Dismantle the Ladder Provide Challenge, Recognition, & Learning Give Voice 35
  36. 4 Engagement and Retention Unleashed “Diversity, Inclusion, Mission, Culture Work-Life Balance, and Work Environment.” 36
  37. Colliding Factors in Engagement 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 an Issue 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 Workplace Flexibility • 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 Us at 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 Engagement Puzzle 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 & Diversity as Strategy Diversity Makes Business Sense 42
  43. Importance of Recognition Maslow’s Hierarchy 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 Voluntary Turnover 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 Engagement Model Why engagement really matters © Bersin by Deloitte 45
  46. 5 Continuous Learning Unleashed “Learning all the time, focused, effective, continuous, and talent-driven” 46
  47. The Continuous Learning Model 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 Learning Architecture EMC 48
  49. The Cheesecake Factory Video Sharing and Games Build Culture and Engagement 49
  50. Need for Learning Culture 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 a Strong 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 and delivering leadership programs that business sponsors care about.” 52
  53. 21st Century Leadership Models 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 Century Global 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 Datafication of HR” 57
  58. This Science is Coming 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 Talent Management 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

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How are world-class companies managing their people in 2014 and beyond? This detailed research-based presentation overviews the new solutions for talent acquisition, leadership development, engagement, building Millenial leadership and employee capability development.


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