As the economy begins to pick up and companies begin to consider business expansion, it is wise to re-examine Talent Management programs. Companies that are prepared for potential expansion will also be better prepared to retain their top employees as others begin recruiting and luring away high performers.

1. Best Practices in Talent Management Research Findings from Best Practices, LLC

4. Understanding the Talent Landscape Flexible Organizational Structures life balance, virtual work, flexibility, temp. workers, interest in autonomy Shrinking US Workforce aging, shortage of educated/ skilled workers, slowed population growth Talent Market Challenges Candidate Expectations social responsibility, brand identity, internships, leadership development, shared decision-making, generational expectations - e.g. “helicopters” and parents Economic pressures are just one thing that are leading fewer people to enter the U.S. workforce than retire from it. As the labor pool becomes tighter, companies must work harder to retain top employees. Companies that create effective Talent Management programs can ensure stability and productivity in the short- and long-term Diversity & Globalization global economy, increasing minorities, mixed generations, increasing outsourcing Leadership Squeeze aging population + flat org. = decreasing bench strength

9. Assessing Corporate Talent

10. Retention Programs for Full-time Employees Company benefits emerged as the most effective retention program for full-time employees. Other effective retention programs mentioned by participants include sales contests, employee referral programs, commission incentives, and training/development opportunities. % of Companies Somewhat Effective Effective Very Effective Ineffective % of Companies 13% 20% 6% 6% 52% 22% 32% 6% Employee Contracts Pay-Raise Incentives Flexible Work Hours Increased Opportunity Special Event Rewards & Recognition Programs Cash Bonuses Company Benefits 45% 35% 45% 16% 32% 24% 26% 32% 27% 19% 29% N=31 23% 35% 3% 30% 3%

11. Leadership Development Advisory Groups: Roles Advisory groups among the benchmark class have an average of 4 distinct roles. The primary roles of benchmark partners’ advisory groups include high-level responsibilities for setting direction and sponsorship. What are the roles of this advisory group? 1 4 5 5 6 7 0 2 4 6 8 Discuss and identify non-training development opportunities Identify participants for leadership programs Administrator Sponsor Create budget Roles # of Companies Set objectives and direction N=7

12. Measuring Talent

13. Program Design - Structure How would you describe the activities designed to enhance employee engagement? N=101 The application of both formal and informal program elements, or “pure” formal programs, have a very positive correlation to the success of employee engagement, while ad hoc programs seem to have a much smaller correlation to positive program outcomes.

14. Utilizing Performance Reviews

15. Surveys Frequency: 1-on-1 Manager Discussions Companies of all sizes are more likely to use manager discussions to gauge employee satisfaction on monthly basis. How often do you use one-on-one discussions to measure satisfaction? 36% 18% 9% 9% 41% 16% 16% 25% 55% 22% 11% 11% 11% 0% 10% 20% 30% 40% 50% 60% Monthly Quarterly Semi- Annually Annually Do Not Use One-On-One Manager Discussions Small Medium Large % of companies Large n=11 Medium n=12 Small n=15

16. Working with High Performers

17. Program Designed to Serve Select Pools Benchmark partners tend to focus development efforts on select pools of employees; these employees are identified almost equally through Succession Planning and other processes. What are the primary objectives of your company's High-Potential Program? 5 10 11 0 2 4 6 8 10 12 Provide development opportunities to a broad group of employees Develop candidates identified by Management through Succession Planning Develop candidates identified by Management, but not through Succession Planning Objectives # of Companies N=18

18. Engagement Activities that Work

20. About Best Practices, LLC Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 919-403-0251 www3.best-in-class.com For more information contact: Cameron Tew Exec. Director – Publishing, Consulting and Research Advisory Services 919-767-9246 [email_address] Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies.