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Total talent management is key for HR leadership
- 1. Total Talent Management is Key for HR Leadership March 1st, 2012 www.allegisgroupservices.com
- 2. Introduction Ronald Kreugel – Director, Business Development Maria Boyse – Executive Director, Human Capital Solutions About Allegis Group Services: • World’s 4th largest provider of Staffing and HR services • Leading provider of global Human Capital Solutions • Specialists in Managed Services, RPO and HR Consulting www.allegisgroupservices.com
- 3. Agenda 2. Total Talent Management • Key Elements of Talent Management • Workforce Trends 3. Contingent Workforce Management • Added Value of Contingent Workers • Maturity Model 4. Conclusion & Summary www.allegisgroupservices.com
- 4. Global Business Trends GLOBALISATION DEMOGRAPHICS TECHNOLOGY www.allegisgroupservices.com
- 5. Global Business Trends GLOBALISATION DEMOGRAPHICS TECHNOLOGY • Economic Crisis • New Generation(s) • Communication • Consumer Confidence • Immigrations • Knowledge • Cost Reductions - Lay offs • Work-Life Balance • Company Policy • Merger & Acquisitions • Social Responsibility • Access to Talent www.allegisgroupservices.com
- 6. Global Business Trends GLOBALISATION DEMOGRAPHICS TECHNOLOGY • Economic Crisis • New generation(s) • Communication • Consumer Confidence • Immigrations • Knowledge • Cost Reductions - Lay offs • Work-life balance • Company Policy • Merger & Acquisitions • Social Responsibility • Access to Talent ‘Usual ‘ Business Pressure ‘Crisis‘ Pressure • Active Cost Management • Employee Engagement • Productivity – Knowledge Workers • Employer Brand (Lay-offs) • Global Talent Competition • Continuous Change – Different Skills • Cultural Alignment with Business • More Pressure to Reduce Human Cost www.allegisgroupservices.com
- 7. What Does Your Company Do? GLOBALISATION DEMOGRAPHICS TECHNOLOGY Traditional Transformation Thinking Thinking www.allegisgroupservices.com
- 8. What Does Your Company Do? GLOBALISATION DEMOGRAPHICS TECHNOLOGY Traditional Transformation Thinking Thinking Maximize cost savings Freeze innovations Reduce headcount where possible Increase sales without more expenses www.allegisgroupservices.com
- 9. What Does Your Company Do? GLOBALISATION DEMOGRAPHICS TECHNOLOGY Traditional Transformation Thinking Thinking Maximize cost savings New operating model Freeze innovations Driving innovations Reduce headcount where possible New talent acquisition Increase sales without more expenses New governance model and organisation CHANGE IS THE ONLY CONSTANT! www.allegisgroupservices.com
- 10. Changing Role of HR www.allegisgroupservices.com
- 11. Changing Role of HR www.allegisgroupservices.com
- 12. Changing Role of HR www.allegisgroupservices.com
- 13. Agenda 1. Global Business Trends • Implications on people management • Changing role of HR 3. Contingent Workforce Management • Added Value of Contingent Workers • Maturity Model 4. Conclusion & Summary www.allegisgroupservices.com
- 14. What is Talent Management? Definition of Talent Management: Attract The capability and skills to attract, develop, retain and obtain the maximum Retain Hire performance of the most critical and decisive professionals for a company by means of differentiated management practices to meet current and Train Develop future business objectives
- 15. Key Elements of Talent Management Strategic Workforce Total Talent Employee Performance Succession Planning Acquisition Development Management Planning Do you have a plan for key people and roles? Are your people successful and are they accomplishing the goals you set for them? How do you train and prepare your people so they will be successful? Where and how will you get the talent to fill the gaps you identified in planning? What are the goals of the organisation and the objectives you expect your people to deliver? Do you have the people to accomplish this? www.allegisgroupservices.com
- 16. Key Elements of Talent Management Strategic Workforce Total Talent Employee Performance Succession Planning Acquisition Development Management Planning • Determine desired end results • Cascade the goal down to departments • Requires accomplishments of key tasks by people • Plan workforce and identify needs , availability and possible gaps www.allegisgroupservices.com
- 17. Key Elements of Talent Management Strategic Workforce Total Talent Employee Performance Succession Planning Acquisition Development Management Planning • Identify needs and gaps based on workforce planning • Comprehensive perspective (include anyone doing work!) • Combine strategy, planning, sourcing, leverage talent pools • Acquire talent when needed, but ensure success! www.allegisgroupservices.com
- 18. Key Elements of Talent Management Strategic Workforce Total Talent Employee Performance Succession Planning Acquisition Development Management Planning • Understanding each person’s ability and core competencies • Create personal profiles and gather information • On-boarding talent = getting talent productive! • Ensure that people know what is expected from them… www.allegisgroupservices.com
- 19. Key Elements of Talent Management Strategic Workforce Total Talent Employee Performance Succession Planning Acquisition Development Management Planning • Linking employee development and goals to performance • Ensuring organisational goals are met • Meaningful communication = promotes retention and engagement • Adopt and use technology to make it easier for managers www.allegisgroupservices.com
- 20. Key Elements of Talent Management Strategic Workforce Total Talent Employee Performance Succession Planning Acquisition Development Management Planning • Pro-actively prepare for next wave of talent to fulfill key positions • Avoid informal process and ‘gut feeling’ • Develop a plan to manage key people and key positions • Remove obstacles and commitment from C-level (culture!) www.allegisgroupservices.com
- 21. Workforce Trends GLOBALISATION DEMOGRAPHICS TECHNOLOGY • Uncertain Economy • Cost Management • Risk Management • Workforce Planning www.allegisgroupservices.com
- 22. Workforce Trends GLOBALISATION DEMOGRAPHICS TECHNOLOGY • Uncertain Economy • Cost Management • Risk Management • Workforce Planning • New Generations with Different Engagement • Social Responsibility and Sustainability • Instant Gratification and Work-Life Balance www.allegisgroupservices.com
- 23. Workforce Trends GLOBALISATION DEMOGRAPHICS TECHNOLOGY • Uncertain Economy • Cost Management • Risk Management • Workforce Planning • New Generations with • Talent Acquisition different engagement and Sourcing Channels • Social Responsibility and • Social Media and Sustainability Mobile Technology • Instant gratification and • Employer Branding Work-Life Balance www.allegisgroupservices.com
- 24. Workforce Trends GLOBALISATION DEMOGRAPHICS TECHNOLOGY • Uncertain Economy • Cost Management • Risk Management • Workforce Planning • New Generations with • Talent Acquisition • Usage of different engagement and Sourcing Channels Contingent Labour • Social Responsibility and • Social Media and • Agile Recruitment Sustainability Mobile Technology Teams • Instant gratification and • Employer Branding • Outsourcing Non-Core Work-Life Balance Activities www.allegisgroupservices.com
- 25. Agenda 1. Global Business Trends • Implications on People Management • Changing Role of HR 2. Total Talent Management • Key Elements of Talent Management • Workforce Trends 4. Conclusion & Summary www.allegisgroupservices.com
- 26. Contingent Workforce (CW) Trends Light Industrial Information Technology 8% * 25% * Contingent Contingent Perm Employees Perm Employees Financial Services Automotive 18% * 30% * Contingent Contingent Perm Employees Perm Employees * indicative percentages based on AGS estimations in 2010 www.allegisgroupservices.com
- 27. Types of Contingent Workers Permanent Employees Contingent Workers Temporary / Agency Graduates / Workers Interns Professional Independent Workers Contractors Projects Free-Lancers Statement of Work www.allegisgroupservices.com
- 28. Contingent Workforce Characteristics Permanent Employees Contingent Workers Temporary / Independent Professional Projects / Graduates / Agency Contractors / Free- Workers Statement of Work Interns Workers lancers • Light industrial • Engineers • Deliverables • Special Projects • Campaigns • Admin clerical • Project Mngrs • Time & Materials • Specific Skills • Programmes • Support roles • Technicians • Fixed price • Relationship • Future Talent • Call centre(s) • IT Specialists www.allegisgroupservices.com
- 29. Contingent Workforce Characteristics Permanent Employees Contingent Workers Temporary / Independent Professional Projects / Graduates / Agency Contractors / Workers Statement of Work Interns Workers Free-lancers • Light industrial • Engineers • Deliverables • Special projects • Campaigns • Admin clerical • Project Mgs • Time & Materials • Specific skills • Programmes • Support roles • Technicians • Fixed price • Relationship • Future talent • Call centre(s) • IT Specialists • Volatile • Less volatile • Defined projects • Less volatile • Fixed period • Short-term • Mid-long term • RFx process • No formal RFX • Administration • Generic profiles • Diversity • Preferred process • College/University • Few suppliers • Many suppliers suppliers • Ex-employees • Employer branding www.allegisgroupservices.com
- 30. Contingent Workforce Acquisition Permanent Employees Contingent Workers Temporary / Independent Professional Projects / Graduates / Agency Contractors / Workers Statement of Work Interns Workers Free-lancers • Light industrial • Engineers • Deliverables • Special projects • Campaigns • Admin clerical • Project Mngs • Time & Materials • Specific skills • Programmes • Support roles • Technicians • Fixed price • Relationship • Future talent • Call centre(s) • IT Specialists • Volatile • Less volatile • Defined projects • Less volatile • Fixed period • Short-term • Mid-long term • RFx process • No formal RFX • Administration • Generic profiles • Diversity • Preferred process • College/university • Few suppliers • Many suppliers suppliers • Ex-employees • Employer branding www.allegisgroupservices.com
- 31. CW Maturity Model HIGH GLOBAL CONTROL OF MSP or TTAM TOTAL TALENT ACQUISTION Global spend centralized MANAGEMENT LEVEL OF COMPLEXITY and controlled MANAGED SERVICE Total workforce spend Global workforce PROVIDER (MSP) under management visibility Managing all contract Complete workforce Customized SLAs and workforce spend visibility process CLIENT MANAGED PREFERRED One point of contact for Direct cost savings on Global supply LOW SUPPLIER suppliers and bill rate and SOWs community MASTER VENDOR contractors and hiring Customized SLAs and Increased total cost of PROGRAM managers process ownership savings One supplier (possibly Client resources Direct cost savings on DECENTRALIZED Non-compliant spend Integrated e tool for total managing second and tactically engaged bill rate and usage elimination process visibility third tier suppliers) Selective set of Integrated e tool for Increased total cost of Additional productivity Several suppliers One point of contact suppliers selected total process ownership savings and process savings Procurement done on Direct cost savings on Contracts in place SLAs & customized Additional productivity High degree of value an ad-hoc basis bill rate and Volume SLAs in place process and process savings added services Management done Customized SLAs and May or may not involve Total cost of ownership High degree of value Ability to plan best mix internally process automation savings added services of resource types I II III IV V VI MATURITY OF THE MARKET www.allegisgroupservices.com
- 32. Value Add of a CW Partner Permanent Employees Contingent Workers Temporary / Independent Agency Professional Projects / Contractors / Graduates / Workers Workers Statement of Work Free-lancers Interns • Light industrial • Engineers • Deliverables • Special projects • Campaigns • Admin clerical • Project Mngs • Time & Materials • Specific skills • Programmes • Support roles • Technicians • Fixed price • Relationship • Future talent • Call centre(s) • IT Specialists QUALITY CONTROL COMPLIANCE • Expertise in labour legislation • Single point of contact • On-/off-boarding • Market knowledge • Accountability • Extensive reporting (headcount) • Experienced in talent sourcing • Transparency and visibility • Tenure management • Supply chain management • Supporting technology platform • Consulting on CW hiring type(s) www.allegisgroupservices.com
- 33. Best-in-class CW Programmes QUICK FACTS: • Started mid 2009 • Delivery teams on-/off-site on 3 continents • Full suite of Managed Services SOLUTION: • Standard policies and processes for CW Management • Build global dashboard for enhanced control and reporting • Deploy universal Vendor Management Software (VMS) • Contractor Compliance Screening process RESULTS: • Visibility over contingent workforce • Higher quality supply base and talent pools • Stronger focus on required key skill sets • Manage risks (co-employment) • Cost avoidance and efficiency www.allegisgroupservices.com
- 34. Agenda 1. Global Business Trends • Implications on People Management • Changing Role of HR 2. Total Talent Management • Key Elements of Talent Management • Workforce Trends 3. Contingent Workforce Management • Added Value of Contingent Workers • Maturity Model www.allegisgroupservices.com
- 35. Summary & Conclusion 1. Global business trends are forcing enterprises to improve talent management • Ageing workforce • Competing for talent • Transformation to new governance and organisation structures 2. Total talent management strategy can accelerate business objectives • Attracting right talent • Improved retention • High employee engagement 3. Strategic importance of contingent workforce • Increase capacity and capability • Holistic labour procurement system • Involvement of HR in contingent workforce strategy www.allegisgroupservices.com
- 36. Tips for Total Talent Management • Prioritize revenue-generating business units, jobs, and employees • Retain revenue producers • Create a fast-reaction team • Proactive internal movement • Contingent workers and vendors must be included • On-boarding www.allegisgroupservices.com
- 37. Questions & Answers Let us answer your questions! www.allegisgroupservices.com
- 38. Final Thoughts Understanding the five key components of a “revenue focused” HR strategy. 1. Collaboration with the CFO —the first component is that HR leadership must work directly with the CFO’s office (who is the undisputed “king” of measuring revenue). 2. Make it a HR goal — the second component of the strategy is goal setting by making “impacting revenue” a major HR and talent management goal. 3. Prioritization — the third component is prioritization. If you start with the assumption that there will be no additional budget at least initially for this strategy, focus and concentrate your current HR budget and your best HR people on the business units, the jobs, and the employees that have the most impact on increasing revenue. 4. A process for identifying problems and barriers — the fourth component of the strategy involves identifying barriers to prohibit revenue from increasing. 5. Best-practice sharing – the final strategy component is best-practice identification and sharing. www.allegisgroupservices.com
- 39. Thank you! Visit our website for more info: www.allegisgroupservices.com
Hinweis der Redaktion
- Thankyou for the introduction and information, John and onbehalf of Allegis Group Services I wouldlike to welcomeeveryone to thiswebinar. My name is Ronald Kreugel and I am the Director of Business Development for Allegis Group Services based in Europe. Over the last 17 years I have worked for largestaffing and recruitment services organisation and have been responsible for advisingcustomerhow to manage their contingent workforceefficiently and helpingthemachievetheir contingent workforceobjectives. With me today I have Maria Boyse, ourexecutive director humancapitalsolutionsbased in California. Goodmorning Maria and couldyoupleaseintroduceyourself to ouraudiencetoday?<>Thankyou Maria. As not all of you have heard of Allegis Group let me shortlyintroduceourcompany to you. Founded in 1983 Allegis has become the world’s 4th largest provider of staffing and HR services and over the last decade we have become the globalleading provider of HumanCapitalSolutionsincluding over 55 neutralManaged Services Programmes withlarge blue chip companies and wererankedhighest in quality of services according to Baker’s Dozen MSP list 2011 by HRO Today. Besides MSP we provide a wide range of solutionsincludingRecruitmentProcessOutsourcing, HR Consulting and Executive Search.
- For today’swebinarwhichwill lastalmost 1 hour we have compiledan agenda as follows:First we willshareourvisionon the global business trends and what the implications are onpeople management and HR. Then we will go into more detail on Total Talent Management and workforce trends. Since we at AGS stronglybelievethat contingent laborshouldbe part of the total management strategy we willshareourthoughtsonhoworganisationsincluding HR should look at contingent workforcenow and in the future.Once we have gonethrough all slides we willconclude and also provide youuseful tips abouttotal management and why we thinktotal talent management is key for HR leadership. So I hope you are all ready and pleasefeel free to submitanyquestions via the chat.
- I think we all knowthatthere is a lot happening in today’sworld and that we are goingthrough a globaltransformation. For yearsnowitappearsthat the world is getting smaller and globalization is anongoing trend, which I believe is unstoppable. New economies are emerging and the socalled BRIC countries are considered to have a significant impact on the globaleconomy, whichby the way is stilluncertainwhenlooking at the crisis in Europewhich is affecting the globaleconomy as a whole.Studies show thattherewillbelargedemographicchanges coming over the nextyears and agingworkforceespecially in Europewill have its effect onorganisations. The globalpopulation is stillrapidlygrowingbutmostly in otherparts of the worldthanEurope, simpy have a look at India and China. It is unbelievablehowmanygraduates we canexpect to have coming fromthosecountries, whichwillforceorganisations to thinkaboutworkforcediversity and culturalchange.Last butnotleast the impact of technology is tremendous. The speed of publishing, sharing and findinginformation is trulyamazing these days and you wonder how we wereable to manage thisflow of informationb.G. (before Google). Mobile internet and mobile deviceswillbecomeincreasingly important and will let people have accesswhenever and whereverthey want it. More people are bringingdevices to the workplace and social media is anotherunstoppable trend whichwill have its affect onorganisations – thinkabouthowFacebook, LinkedIn and other platforms are alreadyimpacting the dailywork of recruiters and HR.
- Sowhenlooking at the megatrends of globalisation, demographics and technologyeachone of these trends has an impact onorganisations and business. The financial crisis started in 2008 is stillnotresolved and lookslikeeconomistspredictfurtherchallenges and issues for the next few years. Organisationsneed to actively manage cost and oftenthisresults in layoffs and headcountreduction. I have readanarticlewhichconcerned me regarding the ongoingreorganisations in the lifesciences/pharmaindustry. A lot of that has to do withstrictergovernmentrulesonmedicins, all of them are looking for the next ‘blockbuster’ medicinebut in the meanwhilemanypharmaceuticalcompanies are layingoffpeople all over the world.The demographicchangeswillbringnewgenerations and I think more thanenough is saidaboutgeneration X, generationEinstein, etc, etc. Probablyitjust me gettingolder and seeingmykidsdevelopfast, whichmakethinkabout the differencesbetweengenerationsbut I believethis is from all times. However I do believethatfuturegenerationswillfeel more socialresponsibility and will care more abouttheirwork-lifebalance. Alsoimmigrationswillplay a role as thiswilllead to more diversity and workforcechallenges in terms of culture, policies, languagues, etc.Technology is rapidlychanging and predictions are that in 2015 therewillbe computers thatwill have the capabilities of a humanbrain, perhapsgovernmentsalready have these butsimply are not telling us. At least we alreadyknow the power of internet, mobile devices and social media whichwillrequireeachorganisation to rethinkhow to attract talent and accessglobal talent pools. Furthermorecompanypoliciesonusage of this media willbevery important in this modern age.
- So these trends are putting business underpresssure, obviously the usualpressureoncost management, higherproductivitybydoing more withless and makingsurethatorganisationswill have the talent theyneedwhich is alignedwith the business strategy and objective.On top of the usualpressure we alsoseewhat we call ‘crisis pressure’ which has a negative effect on employee engagement. Doing more withless and increasingproductivitywill affect the workforce and havinglay-offsmentioned in the newspaperoron TV newsaffects the employer branding of enterprises. Do youreally want to work for a companythathires/firespeoplethateasily? And whatifthatenterprise wants to attract different skills? Pressure to reducehumancostwillcertainly impact the total talent management strategies of manyenterprises, buton the other hand canalsobehelpful to rethinkthisstrategy.
- Goingthrough these changes a lot of organisationsseem to bechallenged and wonder whattheyneed to do to respond to the changes. Perhaps I am over simplifyingthingshere, butactually I wouldlike to challengeyou a little bit here.
- What is yourorganisationdoing? Is a traditional thinking companywhere focus lies onmaximizingcostsavings, stopping all new and innovativeprojects in order to reduceheadcounts and cost? Do yourorganisationrequiresyourstaff to increasesaleswhilstreducing budgets? Obviouslychallengingtimesrequireorganisations to rethink and it is more important than ever that leaders willmake the right choices.
- Or is yourorganisation a more forwardtransformation thinking company? The opposite of traditional thinking whereinnovations and newoperating models are embracedultimatelyleading to changingconditions, makingorganisations and people more creativewhichcanthenlead to neworganisation models and even more innovativebehavior. Hang on, becausethiswillcertainly impact the talent yourorganisation is hiring, whichcanbringnewskills and thinking.Personally I am a strongbeliever of the statement: “Change is the only constant” alnd we all knowthatchangeswill impact people. Eachindividualwillreactdifferently to change, somewillhateit and somecannot live without constant change. Frommypersonal point of view thoseenterprisesthatwill put peoplefirstwill most likely have a betterchance to growtheirfuture business as peoplewill drive innovations, engagement of employees willbehigher and overall performance willincrease.
- In the past the role of HR was verymuchfocusedonadministration, ensuringthat the payroll was executedcorrectly, ensuringbenefits and pension/retirementadministration, consultativerole for business regardinglabourlegislation and HR onlyplayed a smallrolewithregards to policy and planning. Often HR was informed last about business strategy and objectives, which led to a more reactivethanpro-activerole. Obviouslydependingon the industryororganisationyouwork for itmaystillbelikethis, but I do believethatmanyorganisations have made significant changes to the HR strategy and departments.
- In mostorganisationsCEO’s and senior management teams have learned over the past yearsthatpeople and talent management are becomingincreasingly important and that HR plays a pivotalrole. A lot of enterprises have transformedtheir HR departmentsinto HR business partners in order to have direct contact withline managers. Workingcloselywithline managers, trulyunderstanding the needsthey have and translatingthisintopolicies and planning as well as immediateactionswill help business to accelerate. A seperationbetweenadministration and people management is often made and the pressureon HR to reducepeoplecost has led to more standardization, lessspending and even outsourcingactivities and self-servicesfor managers and employees.
- Withthistransformation of HR it is clearthatHuman Resources and Human Capital Management are addingvalue to the organisation. The administration of HR and efficiency in process are still important, buth the transactionalside of HR caneasilybedonebyexternal partners. For HR thiswillmeanthattheycantrulybecome the business partner theyalwayswanted to be and focus more onhelping business become more effectivebycreatingcapabilities to perform. Onecomment I use to hear a lot, is that business often selects and manage external providers of staffing and recruitment services themselves. Reason for this is thattheyfeeltheir HR partner is notreallyunderstandingtheirrequirements, reacts to slow orthey have a bunch of other excuses. Thruth is thatthey want to keep control over who and wherethey are acquiringtheir talent and veryoften have formla and informalnetworks to attract talent frominsideoroutside. When HR is releasedfrom the administrativeburden, theycanreally focus onwhat is important for their ‘customers’. Finally I believethat HR should have a seat in the board of anorganisation, butthen HR needs to makesureit is capable of demonstratingtheiraddedvalue to the business. How? Staytuned at the end of thispresentation we willgiveyousome tips how to makethiswork!
- Thatbringsus to the next item on the agenda – Total Talent Management
- “Talent Management” is more than a hype, but still you can find this term across 90% of HR whiteboards or plans today. However does it mean the same for everyone? Is labelling your applicant trakcing system as “talent management” the solution? Or is it a combination of initiatives that can be called “talent management”?Depending on your organisation’s definition, talent management is about having the right skills and workforce to maximize the performance of your organisation in order to achieve the strategic objectives. We believe that is about attracting, hiring, developing, training and retaining staff that will help your organisation achieving the goals defined by your organisation.Everyorganisationwillsaythatpeoplewillmake a difference, there is not a single CEO whowillarguethat. Howeverifitso important to yourorganisation’ssuccessthenitneeds to be more than a catchy term in yournext PowerPoint presentation. Your organisationneeds to beconcernedwithdeploying a talent management strategythroughout the organisation in order to obtain the best possibleresults. And thisstrategyneeds to beaninitiavewherevariouscomponents are integrated.Hiringordevelopinggreatpeople is onething, butitwillcertainlynotbeenough. Even thoughyoumay have greatpeople, youmay have lousyresultssoyouwillstill end up withhaving a lousycompany. Sothismeansthatresults must beobtained, ifnotyoufail. So obtaining desired results rests on aligning and integrating the key components of talent management. How do you do that?
- Strategic Workforce Planning: what are the goals of the organisation and the objectives you expect your people to deliver? Do you have the people to accomplish this? Total Talent Acquisition: where and how will you get the talent to fill the gaps you identified in planning? Employee Development: how do you train and prepare your people so they will be successful? Performance Management: are your people successful and are they accomplishing the goals you set for them? Succession Planning: do you have a plan for key people and roles?
- StrategicWorkforce Planning:It all starts with the end – nowyouprobably wonder what I meanwiththat. We have notstartedyet and you are already at the end? I thinkit was Steven Coveyif I rememberwell, whosaidthateffectivepeople start with the end. Solet’s start withdefining the needs and goals of the organisation? What is itthatyourorganisationwouldlike to achieve in 1, 2 or 3 yearsfromnow. Is itgrowth of sales, revenu or margin? Is it a growth of marketshare? Is itbecoming the best company to work for? Whateveryoudetermineitwillbe the beginning of your talent management strategy as the goal(s) will cascade down to all departments. Eachdepartmentwillrequire to contribute to the overall goals and objective and the keytasksneed to becompletedbytheirstaff. Makingsurethat the departments plan theirworkforce and identifyneedsorpossiblegaps in terms of quantity and qualitywillform the basis for your talent management strategy. I willexplainthatfurther in the nextslides.
- Total Talent AcquisitionOnce your organisation defined the needs and gaps in the workforce planning, it may be clear that there an organisation needs to acquire specific skills or simply need to acquire more talent to achieve their goals and objectives. There are various talent pools for acquiring talent, including: Internal Employees External candidates for full time positions Contingent workers Offshore labour Project and statement of work based labourIfyourorganisationwill have a wide view on talent and is able to source talent fromvarioussources, youshouldbeable to acquirebetter talent thanyourcompetitors. At AGS we believethattotal talent acquisitionsmeansthatanyonedoingwork for the organisationshouldbeconsidered talent and thereforeshouldbeintegrated in the total talent management strategy. Nowhere is whyintegration of components is crucial, today a lot of organisations do not have a comprehensiveperspectiveontheirworkforce. HR is oftenonlyfocusedontheir full time employees having a company badge, and toooftenexcludeexternal employees. More often contingent workers in IT orbusinesdepartments are managedby these departments and willdetermine the success of these departments without having HR involved. From an outside point of view organisations’ failure to integrate the strategy, sourcing, and evaluation efforts of all the talent pools will lead to great inefficiencies and lost opportunities to maximize performance. So combining these will be needed as well as ensuring that acquired talents will be successful.
- Employee DevelopmentAfteridentifyingneeds and gaps and acquiring talent, it is now time to address the followingquestion:“Are ourpeopleprepared and able to deliver the results we expect?” Knowing the goals and objectives for this and nextyearor the yearafter, yourorganisationmayrequire different skillsthanyouwill have today. Obviouslyeachorganisation must understand the individualability of eachworker as itrelates to the core competenciesidentified in the thestrategicworkforce planning. Thisshouldbeintegrated in the talent management strategy as one of the components.Personal profiles and resumes contain much of the information that needs to be considered in employee development. But only gathering information is not enough, what do you with it is even more important. You cannot expect that employee development is a simple stage that happens and ends. It will continue after you acquire and hire your talent and increases the probability of success. One of the firstthingsyouneed to do withyouracquired talent is execute the on-boardingprocesssuccesfully. This more thanshowingwhere the coffee machine is and handing out a password. Your on-boardingprocess is all aboutgettingyour talent productivefast! Induction, training, e-learning, mentoring and makingsuretheyknowwhat is expectedfromthemshouldbe part of a goodon-boardingprocess. Once we have donethat we canholdthemaccountable, whichleads to the next item performance management.
- Performance ManagementAs I mentioned in the talent management overviewslide, the questionhere is ‘is the individualachieving the resultsyouneed as anorganisation?’Throughoutmy professional career I have learnedthatlinking employee developmentactivities and goals to performance management makessense. However we need to realizethatthis is notsimply a matter of conductingreviewsor 360 degree feedback surveyson paper oron-line. Oftenthis is seen at the necessaryevilbyline managers forceduponthemby HR. Explaining and motivating managers to conduct performance management in a thoughtful and deliberatemannerwilllead to betterresults. Makingsurethatorganisational goals are met and promoting meaningfulcommunicationwillpromote more employee engagement and eventuallyretention. I amnotsayingthatthis is an easy part of total management, getting managers to adopt the performance management canbe a realchallenge. Heredeployingtechnologycan help to make the processeasier and ensureintegrationwithothercomponents of your talent management strategy. We have seenincreasedresults in achieving goals withstrong performance management. How important this part and the otherparts are there is one more thing to mention and that is succession planning.
- Succession PlanningLast butcertainlynotleast is succession planning.Every organisation has key people and key positions that are important to the success of the company and achievement of its goals. But simply achieving goals isn’t enough, being prepared for the future is also important. Depending on the history of your company or the industry it is active in, some companies have been around for hundreds of years. Other have just started in the last years but no matter how old or young your company is, objective is that it is here to stay – otherwise you would probably not be in business.Perhapsit is a shock for some managers, butsurroundingyouwithgreat talent that are able to replace is actually a goodthing. Personally I believethateveryoneshould look to have a successor for hisor her job. I hope you are notlike me and manage thisinformal and basedon gut feel, thishow I oftendidit in the past. Serious talent management advocatedproactivelyidentifyingkeypeople in the organisation and develop a plan to manage thosekeypeople and keypositions. Alsotechnologycanplay a rolehere and willcertainly help to streamline the process and planning as long as it is integratedorlinked to othercomponents.But simply having a talent management plan or installing talent management software isn’t enough. I strongly believe that winners in the war for talent will be those that invest time to define a clear talent management strategy and process for all components I showed you. Success of this total talent management strategy will depend on C-level commitment, which need to help remove obstacles and political boundaries. Too often key talent decides to leave an organisation if they do not see a clear perspective or plan and therefore talent management must be part of a comany’s culture and not just an HR programme. Organisations need to have a more holistic strategy to talent management vs. departmentally as well as having a wide view on various talent pools, internally as well as externally.
- So coming back from a total talent management theory, we needbelooking at reallife and translate thatinto business. It is clearthat Global Business Trends have animmediate effect on the workforce of enterprises. Due to economic uncertainty in Europe, but also in Asia and other parts of the world most companies are actively manageing their cost and risks in order to stay competitive. A lot of companies are reducingheadcount and are activelyadressing the challengesaroundworkforce planning. Thisyear and years to comeworkforce planning – manageing and working with the available skills and talented workers – is a major theme for large enterprises, regardlesss of yourcompany’sindustry.
- Ageing workforce is probably a challenge that companies find difficult to face. Everyoneknowsthatlargeenterpriseswillloseskilledworkers and valuableknowledge, butdue to uncertaineconomicconditionsfindit hard to come up withananswerhow to deal withnewgenerationson the workfloor. In economieswhereunemploymentfigures are up, it is notablethat a large part of unemployedpeople are youngpeople. Oneexample is the economy of Spain, wherenow 1 of 5 workers is unemployed and a wholegeneration of young, educatedpeoplemaylackworkingexperiences in years to come. In thoseeconomieswhereyoungpeopleget jobs, the interest and engagement is different thancurrentemployedworkers. New generations care more abouthavingmeaningful jobs, sustainableorganisations and whetheryourcompany is doinggood in terms of socialresponsbility. The perspectiveonwork-lifebalancewillbe different and oncethey have entered the workforcethey look for instant gratificationthrough promotion orothermeans. Personally I believethis is of all generations, becauseoften I recognize the sameambitionsthat I had (and by the waystill have) when I was younger. So we shouldnotexaggarate and label all newgenerations to come. I wonder whatthat’sgonnabelikewithmykids, alreadythey are usinganiPad and getannoyedwhenanapp is notdoingwhattheyexpectit to do.
- With the internet and mobile devicessuch as smartphones and tabletsmanyorganisations have to rethinktheir talent acquisition and sourcingstrategy. Facebook, LinkedIn and free jobboards are quicklyreplacingprintedadvertising and traditional jobboardssuch as Monster, CareerBuilder, Indeed and others. Social media playsan important role and many HR departments and corporaterecruitersusesocial media for profilingorreferencechecking, althoughwhenaskedtheywillimmediatelydenythisdue to privacy laws. According to manyrecruitmentspecialistssocial media such as LinkedIn, Xing and other platforms makeiteasier to identifypassive job seekers and establishnetworkinggroupswith special interests and/orskills. There are even sites such as Find.lywhererecruiterscan have an up-to-date social talent community of peoplewho are interested in yourcompany’s jobs. Alreadytoday, but even more importantlytomorrow and workforce planning is all abouthaving the best skilledpeopleavailable at timeswhenyouneedthem and youbetterknowwhere and howyoucanfindthat talent.
- Due to uncertainty more and more companies are increasing the usage of contingent labour. Where in the past enterpriseswould have anoccasional temp workerduring the peakseasonor to replace a perm employee temporarily, almosteveryoneworkingfor a largeorganisation has seenanincrease of peopleworking at yourcompanywho are not employees of thatcompany. In just 20 years the percentage of of work allocated to contingent labour on average has increased from 6% in 1989 to more than 27% in 2009. Lately the percentage seems to have dropped again, but like it or not contingent labour now plays a significant role in providing both organisational capacity and capability. Notknowingexactlywhen to hire talent orknowingwhat type of talent to hiremakesitdifficultfororganisations to decidewhattheirrecruitment teams should look like. In 2010 and beginning of 2011 itseemedthat business was getting back to normal and a lot of companiesstartedhiringagain, but end of 2011 and beginning of 2012 show lessactivitieswhenit comes to hiring talent. However I shouldnotethatthis is not the samefor all industries as thereappears to be a mismatch of requiredskills and availability of skilledworkers. Agile and flexiblerecruitment teams thatcaneasilyscale up orscale down are required and oftennon-coreactivities are outsourced to partners, sothatinternal teams can focus on the valueadd services theyneed to provide to their business.
- The usage of contingent workerscanvary per industry – basedonAllegis Group Services experiences over the years we compiled these charts to giveyouanoverview of usage of contingent labour per industry. These percentages are onlyindicative and basedonourestimations – notonly the percentage varyalso the type of contingent workersusedby industries vary. Within the lightindustrial and automotive sectors the usage of socalled ‘blue collar’ workersor traditional temp/agencyworkers is higherthanwithin the financial services and information/technology industries, where more ‘white collar’ and contingent workerswithspecificskills are beinghired. In 2010 a large producer of automobiles in Europeadmittedthat the overall workforce of thatcompanyconsisted of nearly 30% contingent workers. Normally the average percentage of contingent workers was around 10%, butdue to the economicconditions and uncertainty the carmanufacturer had threetimes more contingent staffthannormal. Duringourconversationwith the CFO the objective of ourconversationbecameveryclear – howcould we as a partner help the company to reduce the level of contingent staff to anacceptable level of 10% which had always been the case? Whetherbyreducing the number of contingent workers, transformingtemps-to-perm, optimize the workforce planning, etc, etc. – let’s say that all means were allowed and all proposed solutions were going to be considered to reduce the 30% of contingent labour.
- World-class contingent labour management is essential to strategic talent management – actually it should not require too much to convince you that given the increasing role contingent workers play within organisations, it is essential for organisations to build a world-class contingent labour management framework in order to drive strategic talent management. Enterprises need to get out in front of this and recognize the need for a holistic workforce strategy that incorporates all forms of labour available to the organisation and coordinate the activities of programmes and processes that acquire, develop, motivate and retain that labour. In practice I have encounteredmanysituationswhere contingent workers are coordinated to a certain level byprocurementdepartmentsordirectlybyline and hiring managers. Even last week during a conversationwith a clientitbecameclearthat the HR department of thatcompany had no interest at all their contingent workerpopulationoranyprocessrelated to contingent workers. Although I amsomewhatused to thiswhenspeaking and consultinglargecustomerorganisations, itstill shocks me every time when I amfacedwith the attitude of HR teams. Actuallyyoucannotblameitthem as most HR teams have been reduced over time and do not have the resources and skills to deal with the complexity of contingent labour. Howeverorganisationsneed to realizethat contingent workers are notmerelyaneconomic buffer oronlyadditionalcapacityfor a short-time, in manyorganisations contingent workers have become a strategic part of the overall workforce. There are the typicaltemporary/agencyworkersthatwill help companieswiththeirflexibilityduringpeaks and/orlowsbut more organisationsrelyoncontractorswithspecificskills and knowledgeorprojectsthat are led and executedbyexternal employees. Even consultantsfrom the leading top consultingfirmscanbeincluded in the contingent workforce. One of ourcustomersdefined contingent workers as follows:“Ifit has a heartbeat, works at ourfacilities and does not have an employee badge – it is contingent staff!!!” and thisimpliedthatitneeded to bemanaged as sucheitherinternallyorby a partner.
- Iwillnot touch oneverybullet in each contingent workforcecategory, but the intention of thisslide is to show thateach type of contingent labor has itsowncharacteristics and dynamics, whichmakesit complex to copy paste onetotal talent management strategyfromonecopy to another. Standardizingprocessesacrosscategories and different contingent worker types requiresspecificskills and experience. Oftenthis is the reasonthat HR and procurementfinditchallenging to deal with contingent labor. Neverthelessit is becomingincreasingly important and I urge HR and procurement leaders and department to collaboratehere.
- The fact that many organisations have developed their talent management tools and programme in functional silos and continue to ignore vast populations of the labour force is a sad statement about the true capability of our profession to deliver truly strategic work.Contingent labour management is already a mission-critical activity, and one that will only continue to increase in the years to come. Now is the time to evaluate your approach, rip out the archaic systems you currently have in place, and deploy a new set of talent management practices.
- For many in corporate staffing, contingent labour management is an unpleasant activity often relegated to the lowest-cost outsourced service provider the organisation could find, mainly because no one internally wanted to deal with it. The work is largely considered mundane, process-oriented, and as a necessary overhead cost that provides little or no value. If you work now or have worked in an organisation that views contingent labour management this way, you work or have worked in an organisation that has no clue about the future of strategic talent management!Manyenterprises have startedwithourmaturity model yearsago and have been goingthroughtransformation. Thosewhoconsider contingent labour of strategicimportance to theirorganisation have learnedthatthis is a journey of severalyears. Goingfrom a decentralized model to a neutralManaged Services Provider model is a hugeleapforward and the success lies in change management. One statement I rememberwell and stilluse is: “manage spend and youwill save a few dollars, manage behavior and youwill save a lot more!” And the truth is thatchangingbehavior of line managers willlead to the best bottom-lineresults, butit is also the hardestthing to change.Over the last decade the Managed Services market and industry has grown a lot and customerorganisations have learnedmanythingsduring these years. Some are even now deploying a 3rd generation MSP programme and are slowly moving towards a total talent acquisition management solution than includes Statement-of-Work, recruitment process outsourcing and HR consulting services besides the traditional temp and contractor hiring. Allegis Group Services is currently deploying an integrated and total talent acquisition management solution for the investment arms of a global leading financial services company that encompasses all types of contingent labour. Once the solution is deployeditwillbe most likelybe rolled out to otherregions of the world in 2012 and 2013.
- Having a partner specialised in contingent laborwilladdvalue to yourtotal talent management strategy. Knowingthis is complex butalsorealizingthis part of the workforce is increasingly important, we recommend to have anexternal partner as most HR departments do not have the knowledgeorelselack resources to manage the contingent workforceproperly. From a business point of view as well as a legal/risk point of view your senior management willneed to knoweverythingaboutyourworkforce, including contingent workers to makeinformedstrategicdecisions.A specialized MSP partner, such as Allegis, willnotonly support your talent management strategybut wil alsoincreasequality of the contingent workforce, increasecontrol and enhancecompliance to mitigaterisks for yourorganisation. Ourdeepknowledge and understanding of the contingent labormarket, legislation and talent sourcingwill help youattract, select and hirehighlyskilled talent. For HR but also for your business and line managers having a single point of contact for all contingent labor matters will be extremely convenient and provide full transparency and visibility over talent pools, processes and value add. On top of thatstandardprocesses and increasedcontrolwillenhancecompliance.
- CHALLENGES: Global operations Different workforce needs Various types of CW Lack of consistency Lack of visibilityWhen AGS wasselectedby VISA as their MSP partner we quicklyidentified a core team of specialists in 2009. Throughstandardizingprocesses for contingent workeracquisition and management and aligningsupplieragreements AGS helped VISA to gaincontrol over the contingent workforce. The programmeinitiated in the USA but was expanded to otherparts of the world and currently AGS manages 2,500 contractedworkers in various part of the world. Our teams siton- and off-sitewith VISA in San Francisco, Miami, Mumbai, Singapore, Toronto and London. Notonly do we manage the contingentworkersonbehalf of VISA, we are alsosupporting VISA withattracting and hiring talent for permanent positions and also support theirinternalreferralprogrammebyoffering a low costpayrollsolution for thosecandidatesselectedbyVISA’sstaff. We knowthatnew employees coming via referrals are often more successful, have longerretentionrates and are more engagedthatotherworkers. Soour program at VISA shows wonderfulresults and we are keen to sharethose in more details shouldyoubeinterested. Youwillfindmy contact details on the last slide of thispresentation and please let me knowifyouwouldlike to know more about the solution for VISA orone of ourothercustomers.
- Thatbringsus to the conclusion of thispresentation and time for questions and answers and as promisedsome tips regardingtotal talent management.
- Elements of a World-Class Contingent Labour Management SolutionManaging contingent labour in a world-class way really comes down to making sure that your talent management systems optimize the capability and capacity of the labour force to accomplish your organisation’s objectives at the lowest possible cost.It’s about identifying when contingent labour sources can and should be used in place of traditional labour, what sources of contingent labour provide the best value, and how to manage the life-cycle of contingent labour engagement to maximize ROI.The major elements of a world-class contingent labour-management solution include:A comprehensive labour strategy. This should identify the mission-criticality of roles in the organisation, the parameters that limit suitability of labour types, and the projected financial impact of various scenarios such as extended vacancies, bad hires, labour cost increases, etc. An optimal labour type assessment. With a strategy developed that identifies the criticality of positions in the organisation and the parameters that limit what labour types can accomplish the work to be completed, an assessment is needed to determine what labour type and source of labour would produce the optimal ROI. This element essentially creates a universal work order for labour that can be handed off to procurement specialists. A holistic labour procurement system. One of the key benefits of a world-class solution is extreme visibility into true labour cost. To enable this, organisations must create a single point of control for the sourcing of all labour, regardless of type. The holistic labour procurement system is charged with maintaining an index of possible service providers, initiating sourcing activities, managing the engagement process, and coordinating with other systems for the on boarding, deployment, performance evaluation, and off boarding of contingent labour. A holistic engagement/development system. The business environment changes rapidly. Skills of extreme value today may become commodities tomorrow. Compensation factors may go from being highly prized to being utterly worthless overnight. To ensure that contingent labour resources are engaged and capable of delivering the quality and volume of work needed, a system must be contracted to periodically assess the resources interest in deployment options, desired terms of engagement, availability, and suitability/readiness for deployment. A holistic knowledge management system. It is essential that the organisation develop a system that enables capture and ongoing access to knowledge or work developed during the engagement. This system could include tools to enable social interaction between resources (social networking), document capture, communication capture, context sensitive search tools, etc. A holistic performance management system. Organisations must invest in tools that enable a periodic snapshot of performance — at the onset, midpoint, and completion of the project at the very least. In recent years, a number of technology products and services have popped up to enable such evaluation, but organisations could also build a solution quickly using basic e-survey tools. A holistic talent-relationship management system. As the percentage of work deployed to contingent labour increases, so too will the volume of resources organisations need to remain in contact with. Staying on top of all of the communication timelines and delivering customized messaging in response to various triggers is a complex task. Luckily, customer service organisations long ago developed customer relationship management methodologies, many of which are now supported by automated technology solutions that can be easily borrowed and adapted to create talent relationship management systems. Advanced workforce management analytics. No world-class solution would be complete without a process and set of measure to periodically evaluate and report out on the performance of the solution relevant to the goals for the solution. Organisations must draft comprehensive metrics to assess their utilization of contingent labour and ensure that all component systems in the solutions are capturing the data needed to power the metrics.
- Prioritize revenue-generating business units, jobs, and employees — the highest impact and the lowest cost action is prioritization. HR needs to work with executives, the CFO, and risk management to identify and then prioritize the specific business units that generate the most revenue. You should also identify the highest revenue-generating jobs and employees. Retain revenue producers — retention has a high ROI because most of the factors that cause top revenue generators to leave are not related to their pay. Interview the most successful revenue producers and those who significantly impact revenue. During the interview, identify the factors that currently frustrate them, as well at the factors that would make their job a dream job. Put together a personalized retention plan to minimize the negatives and to increase the positives.Create a fast-reaction team — HR must put together a team of specialists that can respond rapidly to the identified revenue problems that occur anywhere in your organisation. Team members should excel at discovering HR related “root causes” and have the skills and experience necessary to solve sudden revenue generation problems.Proactive internal movement — employees and contingent workers need to be proactively placed into the “right jobs” where they can have the highest possible revenue impact. The initial placement of top revenue producers needs to be regularly re-assessed so that key individuals (and even teams) are redeployed to the needed business areas. Seasonal and business cycle rotations may also be required to ensure that there is no excessive idleness among revenue generators.Contingent workers and vendors must be included — because a significant percentage of the “workforce” are not technically employees, HR must also work to ensure that contingent workers are hired and evaluated based on their ability to impact revenue. HR should work with purchasing to ensure that vendors, contractors, and consultants are also all capable of increasing revenues.On boarding — even the on boarding process can impact revenue generation if a weak process means that new-hires get up to speed slowly. As a result, the on boarding process must be reengineered so that new-hires on the first day clearly understand the importance of revenue generation, no matter what job they have. They also need to be informed about how their revenue generation/impact will be measured and rewarded. And finally they need to be educated as to where they can go to get help in this area.
- If you decide to implement this revenue-focus strategy, be aware that there are five key components that make a “revenue-focused” HR strategy successful.Together they must develop a credible process for proving when an action has a revenue impact and what the value of that impact actually is. Next, HR can provide the CFO’s office with a list of its intended actions and then finance can help to sort out any on the list that simply wouldn’t be credible no matter what the data said (i.e. an example of an action that might be sorting out as not credible could be the premise that hiring and retaining better janitors would increase revenues).As a major HR goal, it would need to be part of every HR function’s execution plan. The importance of the goal would be reinforced by adding revenue impact to the HR reward and metric structure. Together these actions would help to get everyone in HR to focus on this goal.Instead of equal treatment or first-come first-serve, high-priority jobs and employees would be serviced first. Resources would also be channelled toward the HR programmes and processes which proved to have the most success on increasing revenue (i.e. usually they are hiring, retention, training, metrics, and rewards).By applying benchmarking, research, and analyzing metrics, HR can determine which “people management problems” or barriers are having the most impact on reducing revenues. (Examples of problems include extended position vacancies in revenue-generating jobs, high turnover among top salespeople, salespeople unwilling to attend sales training etc.). The same effort should be put into identifying “positive people management opportunities” that when taken advantage of, directly increase revenues.Under this component, HR uses research, benchmarking, and metrics to proactively identify and then rapidly spread the implementation of the most effective revenue improving “people management practices” to all managers throughout the organisation.
- Thankyouverymuch for joiningthiswebinar and we hope you have enjoyed it. It is recordedsoyoucanalwaysplayit back ifneeded. My contact details are includedshouldyoubeinterested to learn more aboutwhat Allegis Group Services has to offer. And of courseyoucanalwaysvisitour website at www.allegisgroupservices.com for more information. Have a greatafternoonor rest of the day and l look forward to speaking to you in the future.