Downloaded 267 times
Uploaded byEmma Yaks
Best practices in talent management strategy
The document discusses best practices in talent management, focusing on six key components: 1. Planning for critical talent needs by analyzing workforce requirements. 2. Attracting critical talent through targeted branding and projecting a positive company image. 3. Recruiting critical talent by first looking internally and leveraging employees, then casting a wide net externally. 4. Assessing critical talent using screening tools like interviews and tests to identify the best candidates. 5. Developing critical talent through real-life learning opportunities, mentoring, coaching, and managing performance for growth. 6. Retaining critical talent to save replacement costs, which average 150% of the employee's salary. Effective retention focuses
More Related Content
Similar to Best practices in talent management strategy
Best practices in talent management strategy
- 1. Best Practices inTalent ManagementBest Practices in Talent Management StrategyStrategy YAKUBU, EMMANUEL OJOCHENEMI ACADEMY OF CORPORATE LEARNING AND INNOVATION(ACLI) www.acli.com.ng ojochenemifab@yahoo.ca, ojochenemifab@gmail.com 08036236165, 08095492756
- 2. FocusFocus Globalization and TalentManagement Drivers of Global Competition for Critical Talent Six Components of Talent Management Strategy Case Studies: SAS and Southwest Airlines
- 3. QuotesQuotes ‘’The most importantcorporate resource over the next 20 years will be talent: smart, sophisticated businesspeople who are technologically literate, globally astute, and operationally agile. And even as the demand for talent goes up, the supply of it will go down.” McKenzie & Company 1998 study – The War for Talent’’ ‘’Human Resource Management has always said that Human Capital is organization’s most critical assets’’ SHRM
- 4. Globalization and TalentGlobalizationand Talent ManagementManagement Human Capital is most critical asset
- 5. New Global ResearchReportNew Global Research Report -Talent Still Top Priority-Talent Still Top Priority August, 2010, SHRM- EIU global survey found that C-suite executives believe their two biggest challenges in the coming 10 years will be: 1. Retaining and rewarding the best people. 2. Attracting the best people to the organization.
- 6. SHRM US Poll– August 2010SHRM US Poll – August 2010 Obtaining Human Capital TopObtaining Human Capital Top ChallengeChallenge SHRM Aug, 2010, poll - 47% said their top investment challenge is: Finding human capital and maximizing their human capital investment Recruiting and holding onto the best talent and getting the most out of people is critical
- 7. SHRMSHRM 2010 GlobalShortage of Talent2010 Global Shortage of Talent Manpower May, 2010, Talent ShortageManpower May, 2010, Talent Shortage SurveySurvey No lack of Talent! It’s’’ Talent mismatch’’ Technical skills + Critical thinking skills
- 8. Globalization – EmployeeGlobalization– Employee MobilityMobilityLowered trade barriers More democratic countries Inflation rates low / steady Low-cost telecommunications Rising skill levels of labor More investment worldwide Growth of MNCs Conditions right to go where best people are at the right price
- 9. New Global CompetitorsNewGlobal Competitors Negative Growth in most developed CountriesNegative Growth in most developed Countries
- 10. ChinaChina 1.3 billionpeople • Averaged 9% GDP increases for last 30 years • On track to become world’s largest economy by 2050 • Major outsourcing/manufacturing hub
- 11. IndiaIndia • 1.1 billionpeople • • At least 20% of population speaks English fluently • • Preferred outsource destination for call centers and other services • • Growing middle class that currently numbers 300 million
- 12. Looking Ahead: EconomicGrowth in 2010-Looking Ahead: Economic Growth in 2010- 20112011 2011 projected China 9.6% India 8.4% Growth in emerging markets 3x as great as advanced countries
- 13. What does itMean for HR?What does it Mean for HR? • Global war for talent will heat up • Business leaders to look to HR for more than transactional expertise • They will look to HR for people strategies to help their companies prepare for growth • HR professionals will come under increasing pressure to retain and develop their top talent
- 14. What is TalentWhatis Talent Management?Management? “The implementation of integrated strategies or systems designed to improve processes for recruiting, developing, and retaining people with critical skills and aptitudes to meet current and future organizational needs”
- 15. What is CriticalTalent?What is Critical Talent? “The small group of individuals who drive a disproportionate share of their company’s business performance and generate greater-than-average value for their customers and shareholders” Source: Deloitte study: It’s 2008: Do You Know Where Your Talent Is?
- 16. Integrated Talent ManagementIntegratedTalent Management StrategyStrategy Six Components • 1-PLAN Talent Needs • 2-ATTRACT Critical Talent • 3- RECRUIT Critical Talent • 4- ASSESS Critical Talent • 5-DEVELOP Critical Talent • 6-RETAIN Critical Talent
- 17. Plan for CriticalTalent NeedsPlan for Critical Talent Needs Component 1Component 1 The Process Strategic planning - analyze near/long-term business plans to understand critical talent needs Periodic interviews/discussions to determine timing of retirements, downsizing, and other changes Contingency planning using different scenarios Succession planning in conjunction with leadership development initiatives Goal is to avoid knee-jerk reactions to changing workforce needs
- 18. Attract Critical TalentAttractCritical Talent Component 2Component 2 Targeted Branding Project a positive corporate image Ideal image: GREAT company with opportunities, support, challenging work, happy customers and employees, good pay and benefits – SHRM research has shown that CSR programs can help project a positive image by showing a company is a “good corporate citizen” Financial performance – Quality of life of their employees – Local communities – Society at large Leverage branding to be a talent Magnet!
- 19. Recruit/Identify CriticalRecruit/Identify Critical TalentComponent 3Talent Component 3 Look Inside First Internal candidates – best bet! 2008 Equilar survey of S&P companies: CEOs hired externally cost 51% more than internal hires IBM and other large companies have extensive databases to identify internal job candidates Referral programs save time and money in identifying critical talent
- 20. Recruit/Identify CriticalRecruit/Identify Critical TalentComponent 3 (cont’d)Talent Component 3 (cont’d) Look Outside Next Leverage employees: Yahoo uses high-profile employees as “Talent Magnets” to contact potential candidates Job-posting sites, such as Monster.com and CareerBuilder.com, are key tools to cast a wide net for job candidates Social networking sites, such as Linked-in and Facebook, have become fertile ground for recruiters over the last two years SHRM’s online job posting service allows members/non- members to post ads on job boards
- 21. Korn Ferry’s “LearningAgility”Korn Ferry’s “Learning Agility” The ability to learn the right lessons from experience and apply those learning's to new and first time experiences Kim E. Ruyle Lominger International: A Korn/Ferry Company kim.ruyle@kornferry.com
- 23. Those high inlearning agility….Those high in learning agility…. Those high in learning agility…. …are critical thinkers who examine problems carefully and make fresh connections …know themselves and are able to handle tough situations …like to experiment and can deal with the discomfort of change …deliver results in first time situations through team‐ building and personal drive Kim E. Ruyle, VP Product Development Lominger International: A Korn/Ferry Company kim.ruyle@kornferry.com
- 24. Assess Critical TalentAssessCritical Talent Component 4Component 4 Screening Tools Defining characteristic of high-performing HR departments is ability to screen mountain of candidates and pick the right ones Screening by behavioral interviews and skills and aptitude tests can minimize hiring mistakes Well-applied employee selection measures improve successful candidate fits by 25% or more Some success by combining a relaxed, informal session to complement a formal interview
- 25. Develop Critical TalentDevelopCritical Talent Component 5Component 5 Deloitte Study (It’s 2008: Do You Know Where Your Talent Is?) Effective development of critical talent means much more than traditional education or online education Providing “real-life” learning that stretches employee capabilities can decrease employee churn and bolster retention efforts People learn the most from those they trust – bosses, subordinates, peers, and mentors Mentoring and coaching – with clear expectations and defined goals -- are crucial to development strategy Manage performance for growth and development
- 26. Manage performance forManageperformance for growth/developmentgrowth/development Top performers=up to 12x productivity of average performers Top performers outperform the average by 40-50% Performance management systems, as part of High Performance Work Systems, can improve many outcome measures, such as productivity, product quality, innovative work practices, etc. Source: Lombardo & Eichinger, The Leadership Machine – 3rd Edition
- 27. Performance ManagementPerformance Management LeveragesHuman Capital Aligns Efforts with Strategy Differentiates Performance Creates a High-Performance Culture Kim E. Ruyle Lominger International: A Korn/Ferry Company kim.ruyle@kornferry.com
- 28. Develop Critical TalentDevelopCritical Talent Component 5 (cont’d)Component 5 (cont’d) “Organizations…must concentrate on the things that employees care about most: developing in ways that stretch their capabilities, deploying onto work that engages their heads and hearts, and connecting to the people who will help them achieve their objectives. By focusing on these three things, attraction and retention largely take care of themselves.’’ Source: Deloitte study It’s 2008: Do You Know Where Your Talent Is?
- 29. Retain Critical TalentRetainCritical Talent Component 6 – Saves MoneyComponent 6 – Saves Money Skilled employees are a premium and will be basis for competitive advantage when economy recovers Average cost to replace an employee is at least 150% of the employee’s base salary, according to the Bliss-Gately “Cost-to-Replace Tool”
- 30. Retain Critical TalentRetainCritical Talent Component 6 – Saves MoneyComponent 6 – Saves Money If a company with 1,000 employees and an average base salary of $50,000 lays off 100 employees -- or 10% of its workforce -- it will spend $7.5 million in addition to their salaries to replace them 100 Employees X $75,000 = $7,500,000 These costs include lost productivity, recruitment and new hire costs, and training
- 31. Retain Critical TalentRetainCritical Talent Component 6 -- The BasicsComponent 6 -- The Basics Retention = process of keeping employees who add value to the organization •To retain critical talent, provide compensation/benefits so employee feels valued •Create corporate culture that rewards people emotionally and meets their professional expectations •Employees value challenging work, open communication, growth opportunities, and flexible workplaces
- 32. Employee Benefits ResearchReportEmployee Benefits Research Report Patterns in Benefit TrendsPatterns in Benefit Trends Preventive Health and Wellness Benefits Flexible Working Benefits Family-Friendly Benefits
- 33. Employee Job SatisfactionEmployeeJob Satisfaction Research ReportResearch Report Employees rank benefits a top contributor to job satisfaction Strong benefits package = higher rates of employee satisfaction/retention Communicate value of the organization's benefits package so employees fully understand options/true value Use total compensation statements, benefits workshops/fairs, employee meetings and social networking tools Leverage existing benefits plans and improve on them by regularly reviewing plans and asking for employee feedback.
- 34. 2010 Fortune 100Best Companies to2010 Fortune 100 Best Companies to Work For SAS ranked #1 among FortuneWork For SAS ranked #1 among Fortune Best CompaniesBest Companies
- 35. Case Study --SAS #1 on 2010 FortuneCase Study -- SAS #1 on 2010 Fortune 100 Best Companies to Work For List100 Best Companies to Work For List SAS benefits: High-quality child care at $410 a month 90% coverage of the health insurance premium Unlimited sick days Free medical center - 4 physicians and 10 nurse practitioners Free 66,000-square-foot fitness center and natatorium Lending library Summer camp for children
- 36. Case Study –SASCase Study – SAS Company philosophy: Give people experience they need – including overseas assignments – to develop professionally Turnover at SAS is 2% -- industry average is 20% Emphasis is on helping people find their niche and then coaching them to excel Detailed skills database helps SAS managers analyze potential skills gaps Dynamic models allow managers to test different workforce scenarios Dedicated “networkers” have full-time job to match managers and the skills they need
- 37. Case Study –Southwest AirlinesCase Study – Southwest Airlines Great Employer BrandingGreat Employer Branding
- 38. Case Study –SouthwestCase Study – Southwest AirlinesAirlines 2009 37th year of profitability Net income $194 million 39th consecutive year w/o layoff BEST IN CLASS Highest customer service ratings Most productive work force Lowest turnover rate (6%) in airline industry
- 39. Case Study –SouthwestCase Study – Southwest AirlinesAirlines Organization focus – positive relationships with customers and employees Mission Statement: “The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.”
- 40. Case Study –SouthwestCase Study – Southwest AirlinesAirlines Famous for its fun culture Hard work=part of the corporate culture Company has proven many times it will be there for its employees in bad times CEO Gary Kelly: “After 35 years, we’ve never had a layoff, we’ve never had a pay cut, so there is a devotion to the people and a commitment to our people once we hire them” From Feb. 21, 2006, on SHRM-sponsored TV program, CEO Exchange
- 41. Going Forward –Look toGoing Forward – Look to SHRM for SupportSHRM for Support
- 42. Talent Management ToolkitsTalentManagement Toolkits Some relevant Toolkits: Talent Management Managing Flexible Work arrangements Interviewing Managing for Employee Retention Workforce Planning Workforce Readiness Introduction to Staffing Management Managing Employee On boarding and Assimilation Process SHRM toolkits aggregate resources, articles, links, and other practical information related to a specific HR topic
- 43. Summary -- TakeawaysSummary-- Takeaways Globalization has spawned a global competition for talent •2008-09 recession put this competition on hold only temporarily •To help your organization compete as the economy recovers, develop a comprehensive six-part talent management strategy •Emulate SAS and Southwest Airlines, and seek to become a Great Place to Work •Look to SHRM for support
- 44.