Talent Management:
the next wave
PLAN SOURCE ASSESS DEVELOP MANAGE CHANDLERMACLEOD.COM

This publication has been produced by Chandler Macleod Group as general information only and does not consider
anyone’s specific objectives, situation or needs. Accordingly, the publication is not to be taken as legal or
professional advice. We recommend that you obtain professional advice before acting or refraining from acting on
any of the contents of this paper. Neither the authors nor Chandler Macleod Group accept any duty of care or liability
to anyone regarding this publication or any loss suffered in connection with the use of this publication or any of its
content.
Chandler Macleod, Unleashing Potential and our logo are trademarks of Chandler Macleod Group Limited and must
not be used without the prior, specific, written permission of Chandler Macleod Group. All rights reserved.
Note: Numbers on graphs may not add to 100% due to rounding of individual percentage figures.
3 Executive Summary
5 The war for talent is over, and the
talent won
6 4 Generations, 1 Workplace
8 What do the generations want?
9 Millennials
10 Gen X
11 Baby Boomers and Traditionalists
12 The increasing importance of ‘the why’
13 What can employers do better?
14 The end of the 9-5 workday
14 Flexible work arrangements
18 Managing OHS responsibilities
of the ‘invisible workforce’
19 Workplace flexibility and diversity
22 Indigenous Australians
24 Digital will fundamentally change
HR as we know it
25 Mobility is driving ease of use
and impact
25 Analytics is driving customised
talent management
28 Are employees experiencing
technology overwhelm?
28 Pros and cons of technology in
talent management
28 Gamification: game changer or fad?
30 Recommendations
2
Tip: click on contents and links to navigate through the document.

Executive Summary
As the global economy stabilises, employers are increasingly being forced to shift their focus from
cost reduction to talent retention, engagement and development.
Today’s workforce is more dynamic and more demanding than ever. Data is becoming a valuable
currency. Employees are demanding more flexible, dynamic and diverse work arrangements. A
multigenerational workforce – four generations working side by side - breakneck technological
advances and increasing globalisation are forcing the business world to re-think previously
successful people strategies.
This whitepaper explores emerging trends in talent management and examines how we are
managing talent in an environment increasingly characterised by change.
For Talent Management – the next wave we surveyed 233 senior managers, leaders and specialists
and 287 employees across Australia and New Zealand to gain their insights into talent
management. Fieldwork carried out in July-August 2014 was supplemented with insights from a
range of publications, research reports and articles from Australia, New Zealand, Indonesia, Hong
Kong and Singapore, including Chandler Macleod’s Skills Utilisation: how effectively are businesses
utilising the skills at their disposal.
Effectively managing valued talent may well be the competitive ‘tipping point’ for organisations
in an increasingly competitive global economy. But surprisingly, our research showed large gaps
between employer and employee perceptions when it comes to talent and engagement - while
employers think they know what employees want and need to remain engaged and productive,
our research suggests otherwise.
3

Key findings:
ƒƒ Organisations have not yet adapted their talent management strategies to reflect changing workforce dynamics
in terms of generational diversity. Today, the workforce is made up of four generations (Millennials, Gen X, Baby
Boomers and Traditionalists), however half (52%) of the organisations we surveyed do not have any generation
specific talent management strategies in place. Both employers and employees believe this is a mistake; both
cite the lack of differentiated strategies for a multigenerational workforce as the main mistake made by
organisations when managing a generationally diverse workforce.
ƒƒ Employers and employees are out of step regarding what works when it comes to talent management. For
Millennial employees, employers focus on development, regular goal setting and continuous review of talent,
however Millennials rate the provision of flexible work conditions twice as effective as these strategies.
Similarly, employers underestimate the importance to Gen X of training to keep up with the times, and while 17%
of employers believe that social media is an effective strategy to manage Millennials, only 1% of Millennials see
this effective in practice.
ƒƒ There is a growing desire from employees of all generations to work for organisations with a solid reputation,
reward for performance, clear career trajectory and a culture of collaboration. 91% of employees consider it
important that their workplaces provide some greater purpose than making money, and 33% of employers have
re-shaped their talent management practices to include a greater focus on meaning.
ƒƒ Two in three (67%) employers are using data driven analysis or big data to make talent management decisions.
Half (46%) agree that analysis of big data will evolve HR into a strategic function of the organisation. However,
just 13% of employers are calling big data a ‘disruptive force’ within HR.
ƒƒ Flexible working is here to stay: the desire for flexible work conditions spans all four generations and uptake of
new technology is increasingly facilitating the trend towards flexible working arrangements. But although 76%
of employers agree that flexible working arrangements provide a positive return on investment, one in three
believe there is an inverse relationship between flexible work arrangements and productivity.
ƒƒ Although organisations have a range of strategies in place to manage offsite employees, many offsite staff are
not aware of these. Despite this, both employers and employees believe that those who work offsite are more
motivated than their onsite counterparts.
ƒƒ 72% of organisations have provisions for cultural considerations in their management processes, with the most
widely used strategies being the provision of flexible time for cultural occasions (49%), cultural awareness
training (43%), and organisational support for different cultural needs, customs and social values (41%). Few
Australian organisations, however, are adequately working with Indigenous Australians. Only two in five have
policies in place to attract and retain Indigenous workers, and less than 1% believe they are more successful at
attracting and retaining Indigenous workers than non-Indigenous workers.
ƒƒ While the views of employers in Australia and New Zealand are largely attuned, some differences are evident in
the talent management practices of employers on either side of the Tasman.
4

‘The war for talent is over, and the talent won’ – Josh Bersin (6)
In an interesting dichotomy, high unemployment rates in many developed nations have not created the talent
surplus some predicted.
Despite high unemployment in many locations, employers are still flagging current and future talent shortages,
particularly in critical functions. According to Deloitte, skills in short supply will extend beyond technical skills to
first-line supervisors, sales, customer service, manufacturing, finance and other business functions. Retailers,
hospitality companies, software organisations and all manner of service providers will need people who understand
how to sell, communicate, serve customers, and solve problems4
.
Attraction, retention and engagement of talent are high on the agenda of CEOs and business leaders around the
world. While individual economies are sensitive to local and regional economic factors, 63% of CEOs globally are
concerned about the availability of key skills, and 93% recognise the need to change their strategy for attracting
and retaining talent2
.
72% of Australian CEOs cite the availability of key skills as the biggest
threat to their business growth1
. More than one in two (59%) of New Zealand
employers are experiencing difficulty finding employees with the right
skills - the highest proportion since 200741
. Hong Kong CEOs cite ‘people
issues’ as their top business challenge40
. In Singapore, 90% of organisations
report challenges due to scarcity of talent. In Indonesia, four out of five
organisations are facing a challenge with talent attraction and 63% face a
problem with talent identification, however the biggest problem for
Indonesian organisations is talent retention (83%)35
.
No matter where they are located, over the past five years organisations have reduced costs, restructured,
rationalised spending, and aimed to maximise output, often with fewer resources. As the global economy
strengthens, we will see a power shift, with top talent employees in key skills areas exerting control.
The skills shortage fuels this challenge; despite Australia’s highly skilled workforce, policymakers say there is still a
need for more skills development at all levels, but especially higher level skills. In February 2014, nine out of ten –
a massive 91% of employers surveyed for Chandler Macleod’s Skills Utilisation: How effectively are businesses utilising
the skills at their disposal? – indicated a current skills shortage within their organisation3
.
Deloitte refers to the ‘open talent economy’ (making comparisons to the open source software concept) –
a collaborative, transparent, technology-driven, rapid-cycle way of doing business34
. These changing conditions
mean that come the upturn, the importance placed on job security by employees will not last. Employees with sought
after skills, along with high performing employees will become increasingly valued, and will begin to exert control.
According to CEB’s Talent Report 2014, high-potential employees are seen as almost twice as valuable to their
organisations as employees who are not high-potential. The need to ‘do more with less’ in an uncertain economy
saw many organisations strip out poor performers. Today’s businesses have emerged with a leaner workforce and a
correspondingly greater reliance on their best people, many of whom have taken on wider roles as a result of
restructuring and often for limited or no incremental increase in compensation. Retaining this high performing
talent is becoming a key priority5
.
When vying for top talent, workplace flexibility can be a deciding factor: one in three workers report that being able
to flexibly integrate work and life is the most important factor in choosing a job.
Today’s employees want work which is meaningful, rewarding, and enjoyable. Top performers are seeking out career
growth. Mid-level staff are striving for leadership development. People are freer to change jobs as businesses compete
for talented individuals and high performers. And companies who can’t engage and attract Millennials will lose out.
Millennials in particular will demand increased internal talent mobility and career development, lest they take their
talents somewhere else (which they can, and will), including increased visibility into internal postings and access to
development resources and assessment tools that help them grow their skills—within the organisation6
.
‘In 2014 if you aren’t
reinvesting in HR, you’ll
likely fall behind’.
Deloitte’s Global Human Capital
Trends 2014 - Engaging the
21st-century workforce
5

4 Generations, 1 Workplace
In today’s workplace, 20 year old employees can find themselves working alongside colleagues who are older than
they are by 50 years or more.
Generational stereotypes often seem overplayed in the media – think ‘lazy, entitled’ Millennials, ‘cynical,
depressed’ Gen X’s, ‘power hungry, competitive’ Baby Boomers and ‘unimaginative, cautious’ Traditionals.
While much of this is rhetoric, differences do exist. Millennials in particular have different expectations of their
career experience than previous generations. The Millennial employee expects a patchwork career, isn’t typically
loyal to a single employer, and expects to be in charge of their own career path. Traditional semi-annual reviews are
too infrequent for Millennials; they want to know that they’ve done a good job, and they want to know now.
Deloitte’s research uncovers emerging trends in performance management that are a better fit for the new world of
work, increasingly characterised by self-forming teams responding to rapidly changing business challenges34
.
Traditional Approach Emerging Trends
Hierarchical Networked
Direct Coach
Top-Down Bottom-Up
Process-Focused Outcome-Focused
Autocratic Democratic
Measures Improves
External Rewards Intrinsic Rewards
Fixed Organisation Matrix Organisation
Annual Cycle Feedback Just-In-Time Feedback
Weakness-Based Strength-Based
From: Deloitte, Human Capital Trends 2013 Leading indicators(34)
http://www.deloitte.com/assets/Dcom-UnitedStates/
Local%20Assets/Documents/Consulting/us_cons_humancapitaltrends2013_040213.pdf
Millennial Workers like:
99 Working in teams
99 Being coached and mentored
99 Having the opportunity to attend educational programs
99 Working with technology
99 Receiving frequent feedback and positive reinforcement
99 Being given explicit instructions
99 Networking
99 Having choices about when, where and how to do their jobs
99 Making a difference
- Society for Nonprofit Organizations33
6

It is clear that engagement and management strategies that worked for say, the Traditionalist generation (3% of the
workforce and soon to become insignificant), will have to be rewritten when it comes to Millennials. While Gen X is
currently the largest generation of active workers, the Millennial generation or Generation Y is the largest to
emerge since the Baby Boomers, and as this group quickly grows as a proportion of the workforce, employers will
need to make major adjustments in their strategies.
Thinking about the workforce in your organisation, roughly what proportion of your workforce fall into
each of the following generations?
30%
Millennials
39%
GENERATION X
27%
Baby BoomerS
3%
TRADITIONAList
Client Survey: n=257
Our research found that just over half (52%) of employers do not have any generation specific talent management
strategies in place. Only 3% of organisations surveyed have strategies in place for all four generations.
Which of the following generations does your organisation have specific talent management strategies in
place for?
Millennials (born after 1981) 37%
Generation X (born 1965-1980) 35%
Baby Boomers (1946-1964) 11%
Traditionalist (born 1925-1945) 4%
None of these 52%
0% 10% 20% 30% 40% 50% 60%
Client Survey: n=257
7

Less than half (48%) agree that age has an impact on the needs of the workforce, but employers are currently
making some generational considerations.
Thinking about the different generations within your organisation. Do you agree or disagree with the
following statements?
 Strongly agree  Agree  Neither agree nor disagree  Disagree  Strongly disagree
It is difficult to manage
a multigenerational workforce
21% 25% 41% 10%2%
Age is a strong predictor
of the needs of our employees
4% 44% 30% 19% 3%
The younger generation set the
tone for the employment
contracts in our workforce
1 11% 29% 51% 9%
0% 20% 40% 60% 80% 100%
Client Survey: n=257
Despite, or perhaps because of the fact that only 48% of employers agree that age has an impact on the needs of the
workforce, the majority of employers believe they are catering well for the needs of their multigenerational workforce.
How well does your organisation cater to the needs of employees of each of the following generations?
 Very well  Quite well  Neither well nor poorly  Quite poorly  Very poorly  N/A
Traditionalist (born 1925-1945) 40%6% 25% 22% 6% 1
Baby Boomers (1946-1964) 18% 56% 19% 4%
3%
Generation X (born 1965-1980) 17% 57% 19% 4% 1
1
Millennials (born after 1981) 16% 49% 25% 6%
4%
1
0% 20% 40% 60% 80% 100%
Client Survey: n=257
What do the generations want?
In our research, we asked Millennials, Gen X and Baby Boomers what talent management strategies work for them.
All four generations rate flexible work conditions as the most successful strategy, with Millennials rating it twice as
effective as any other strategy. However, only 12% of Millennials, 21% of Gen X’s and 27% of Baby Boomers give
their employers good marks in this area.
8

Millennials*
Employers that have talent management strategies in place for Millennials focus on employee development, regular
goal setting and continuous review of talent.
Millennials themselves are telling a very different story, rating flexible work conditions as twice as effective as any
other strategy. This supports findings in a 2013 study by Millennial Branding which found 45% of Millennials will
choose workplace flexibility over pay10
.
After flexible work conditions, Millennials value employee-focused development and regular goal setting. This
likely reflects the need of the Millennials to seek collaboration and feedback instead of being told what to do11
.
What strategies does your organisation have in place for Millennials?
And which have been successful for Millennials?
And which of these do you consider to be effective?
 Strategies used  Successful strategies - employers’ view  Successful strategies - Millennials’ view
Employee focused development
Continuous review of talent
Regular goal setting
Continuous coaching and feedback
Provision of flexible work
environments
Online/digital training
Career planning for greater projects
and mobility
Provision of training to keep up with
the times
Provide flexible work conditions
Social media
Recognition by peers and not managers
A targeted employee value proposition
Gamification
Other
None/don’t know
0% 20% 40% 60% 80%
Client Survey: n=95, Client Survey: n=95, Candidate Survey (Millennials) n=67
Of note, 17% of employers believe that social media is an effective strategy to manage Millennials, only 1% of
Millennials saw this as effective in practice.
Despite the tremendous growth of social media, it seems leaders are not convinced of its business value.
Oxford Economics Digital Megatrends 2015: The role of technology in the new normal market found that while
social media has become a cultural phenomenon, one fifth of business leaders are not using social media in
the workplace at all and one third consider social media irrelevant to their business. Among sceptics, the
concerns centre on a loss of control over messaging and difficulty measuring return on investment30
.
Yet,usagecontinuestogrow.Facebook’suserbasecontinuestoexpandatover40%ayear(to829millionusersin
June2014),withapproximately81.7%ofdailyactiveusersoutsidetheUSandCanada,seeingitrapidlydisplace
nationalsocialnetworksthatwerepreviouslypopularinEurope,LatinAmericaandmostpartsofAsia31
.Twitteris
thefastestgrowingsocialnetworkintheworld,with44%growthinactiveusersbetweenJune2012toMarch
201332
.
*The terms Millennial and Generation Y are increasingly used interchangeably in literature. For the purposes of this research, the definitions used in Mercer, 2014 Making Accountability Work! Effective Employer Strategies in a
Multigenerational Age have been utilised.
9

Gen X
Organisations with Gen X specific talent management strategies identified provision of flexible work conditions as
the most widely used strategy. This is also the strategy most likely to be considered successful by both employers
and Gen X themselves (24%).
Employers have underestimated the importance to Gen X of training to keep up with the times, ranked equal second
in importance to Gen X. Similar to Millennials and Gen Y, very few Gen X (1%) see Social Media as effective in
practice.
What strategies does your organisation have in place for Gen X?
And which have been successful for Gen X?
And which of these do you consider to be effective?
 Strategies used  Successful strategies - employers’ view  Successful strategies - Gen X’s view
Provide flexible work conditions
Employee focused development
Regular goal setting
Continuous coaching and feedback
Provision of flexible work
environments
Career planning for greater projects
and mobility
Provision of training to keep up with
the times
Continuous review of talent
Provide succession training
Online/digital training
Social media
Recognition by peers and not managers
A targeted employee value proposition
Offered transition to a mentoring role
Retirement planning
Provide training for working with
younger generations
Gamification
Other
None/don’t know
0% 20% 40% 60% 80%
Client Survey: n=90, Client Survey: n=90, Candidate Survey (Gen X) n=114
10

Baby Boomers and Traditionalists
Employers are more in step with Baby Boomers and Traditionalists – they focus on flexible work conditions and
environments and regular goal setting, the first two of which are also ranked most successful by employees.
However, employers assume regular goal setting is far more successful than it is (68% cf. 8% employees).
What strategies does your organisation have in place for Baby Boomers or Traditionalists?
And which have been successful for Baby Boomers or Traditionalists?
And which of these do you consider to be effective?
 Strategies used  Successful strategies - employers’ view
 Successful strategies - Boomers’ and Traditionalists’ view
Regular goal setting
Provide flexible work conditions
Provision of flexible work
environments
Employee focused development
Continuous coaching and feedback
Offer transition to a mentoring role
Retirement planning
Continuous review of talent
Career planning for greater projects
and mobility
Recognition by peers and not managers
Provide succession training
A targeted employee value proposition
Provide training for working with
younger generations
Other
None/don’t know
0% 20% 40% 60% 80%
Client Survey: n=31, Client Survey: n=31, Candidate Survey (Boomers and Traditionalists) n=126
11

What they want What employers think they want
Millennials & Gen Y 1. Flexible work conditions
2. Employee focused development
3. Regular goal setting
1. Employee development
2. Regular goal setting
3. Continuous review of talent
Gen X 1. Flexible work conditions
2. Flexible work environments
3. Training to keep up with the times
1. Flexible work conditions
2. Employee focused development
3. Regular goal setting
Baby Boomers
& Traditionalists
1. Flexible work conditions
2. Flexible work environments
3. Continuous coaching and feedback
1. Flexible work conditions
2. Regular goal setting
3. Position of flexible work
environments
Trans-Tasman Perspective
Compared to their counterparts in Australia, employers in New Zealand tend to focus more on developing the
employee rather than providing a flexible work environment when managing a multigenerational workforce.
Their top strategies for all generation groups is to undertake employee focused development, regular goal
setting and continuous review of talent.
However, New Zealand employees indicate that flexible work conditions are a successful strategy currently
being used by the organisation they work in. More New Zealand employees rate a flexible workforce as a top
strategy used by their organisation than Australian employees (62%; cf. Australian employees 31%).
Asian Perspective
Aon Hewitt’s 2014 Trends in Asia Pacific Employee Engagement study found that Asia Pacific’s employee
engagement levels remained unchanged at 61%, three points up from the previous year and on par with the
global engagement level. The study linked the rise in engagement to steadying global economic stabilisation.
India enjoys the highest employee engagement levels (at 66%), followed by China (64%) and South East Asia
(62%). Japan has the lowest engagement levels (at 34%) and was the only major Asia Pacific market to show no
improvement in employee engagement levels7
.
This coincides with Deloitte research which found that Asian workplaces are facing challenges around employee
engagement and talent retention, with 74% of employees expecting greater flexibility in working
arrangements, 55% of younger employees not expecting to stay with a company for more than 3 years when
they join and 48% of leaders, managers and supervisors struggling to manage across generations35
.
The increasing importance of ‘the why’
There is a growing desire from employees to work for organisations with a solid reputation, reward for performance,
clear career trajectory and a culture of collaboration12
. It is no longer just about how much they can make or if they
can become the top employee. They want to work for an organisation that provides a greater meaning beyond
generating profits for the owners or shareholders7
.
12

Surprisingly, employers continue to underestimate the importance of their employee value proposition. Over nine in
ten (91%) employees consider it important that their workplace provides some greater purpose or meaning beyond
making money, however just 85% of employers believe their workers feel this way. Both male (90%) and female (92%)
employees do feel this way, and it is not just important to younger workers but widespread across generations (94%
under 35, cf. 91% 35-49, 90% 50 years and over) around Australia and New Zealand and across industries.
How important is it to your employees that the organisation they work for provides some greater purpose
or meaning beyond making money?
How important is it that your workplace provides some greater purpose or meaning beyond making money?
 Very important  Quite important  Not very important  Not important at all
Employees 51% 40% 6% 3
Employers 42% 43% 14% 1
0% 20% 40% 60% 80% 100%
Client Survey: n=257, Candidate Survey: n=308
Astonishingly, more employees than employers are aware that their organisation has an EVP.
When the predicted talent shortage comes to fruition, organisations that can redefine their employee value
proposition to include a balance of economic, technological, demographical and social aspects will be able to
differentiate themselves and stand out from the crowd by becoming a company that people want to work for.
What can employers do better?
Just over half (53%) of employees believe their employer looks after their needs well, and the same proportion
(54%) believe their employment contract meets their needs. But just as many employers agree (30%) as disagree
(36%) that promoting meaning is more about effective marketing to staff than creating lasting change.
It is not all bad news for employees, almost half (49%) of employers agree that employees have forced their
organisation to become more conscious of the impact they have on people, culture and the environment, and 33%
have reshaped their talent management practises to include a greater focus on meaning.
Thinking about the organisations value proposition. Do you agree or disagree with the following
statements?
 Strongly agree  Agree  Neither agree nor disagree  Disagree  Strongly disagree
Promoting meaning is more about
effective marketing to staff than
creating lasting change
34%4% 26% 31% 5%
Employeeshaveforcedour
organisationtobecomemore
consciousoftheimpactwehaveon
peoplecultureandtheenvironment
44% 31% 18% 2%5%
We have reshaped our talent
management practises to include
a greater focus on meaning
46%4% 29% 18% 4%
0% 20% 40% 60% 80% 100%
Client Survey: n=257
13

Trans-Tasman Perspective
Organisations in New Zealand are more likely than their Australian counterparts to have changed their
management processes to include a greater focus on meaning (54%; cf. Australian employers 31%), and New
Zealand employers are more likely to disagree that promoting meaning is more about marketing to staff than
creating lasting change (67%; cf. Australian employers 33%).
Asian Perspective
Asian organisations competing in the war for talent typically use strategies related to employer branding and
rewards - 80% state that competition is forcing them to enhance their employer brand and most report that
they leverage their brand heavily as part of their recruitment strategy (83% in China, 79% in Singapore and
70% in Indonesia). However, 45% report that their brand as an employer is not strong enough to consistently
attract the right talent35
.
The end of the 9-5 workday
In today’s interconnected world, the model of working in the office, at our desks for eight hours a day is becoming
quickly outdated.
Millennials are leading the charge for workplace flexibility; 89% surveyed for a recent study commissioned by
Millennial Branding and oDesk indicated that they would prefer to work when and where they choose, rather than in
a corporate nine-to-five job8
.
Chartered Management Institute research shows that 59% of managers predict that the traditional 9-5 will
disappear before 2020, and 54% expect the boundaries between home and work life to become entirely blurred13
.
Flexible work arrangements
Today’s employers who want to access the best talent possible will need to be willing to empower employees to work
remotely. Increasingly, location challenges can be overcome more easily than talent shortages15
.
We know that staff from all generations seek a flexible work environment, however employers also need to ensure
productivity is not compromised. Although three in four (76%) agree that flexible working arrangements provide a
positive return on investment, employers are divided as to the impact of flexibility on productivity. One in three
agree that there is an inverse relationship between flexible work arrangements and productivity, whereas 39%
disagree with this.
Thinking about your organisation. Do you agree or disagree with the following statements?
 Strongly agree  Agree  Neither agree nor disagree  Disagree  Strongly disagree
There is an inverse relationship
between flexible work
arrangements and productivity
29%26%6% 32% 7%
Providingflexibleworking
arrangementstostaffgeneratesa
positivereturnoninvestment
19% 4%154%22%
0% 20% 40% 60% 80% 100%
Client Survey: n=257
14

Three in four (75%) organisations surveyed have staff who work offsite or remotely. The strategies used to motivate
and engage the workers are vital to ensure a productive and successful workforce.
In terms of motivating employees, our research found that employers believe staff who work offsite are more
motivated than their counterparts who work onsite (22% more motivated cf. 14% less motivated).
Thinking about your staff who work onsite and offsite in equivalent positions, how motivated are your
staff who work offsite or remotely compared to those who work onsite?
6% Much more motivated
16% Alittlemoremotivated
57% Aboutthesame
12% A little less motivated
2% Much less motivated
7% Don’t know
Client Survey: Have staff who work remotely n=193
Self-reported levels of employee motivation more or less fit this pattern. Although a similar proportion rate
themselves as very motivated or more (65% work offsite cf. 62% who do not), those who work offsite are more likely
to describe themselves as very motivated (30% work offsite cf. 24% who do not).
How motivated were/are you at your previous/current work?
 Extremely motivated  Very motivated  Quite motivated  Not very motivated  Not motivated at all
All employees (n=308) 22%26% 37% 12% 3
Workoffsite(n=89) 21%30% 35% 11% 2
Notworkoffsite(n=219) 22%24% 38% 12% 3
0% 20% 40% 60% 80% 100%
Candidate Survey: n=308, those who work/worked remotely n=89, those who don’t work remotely n=219
Generally speaking, employers believe there are more strategies in place to manage offsite staff than are perceived
by employees.
15

What strategies does your organisation have to manage staff who work offsite or remotely?
What strategies did/does your previous/current workplace have in place to manage staff who work offsite?
 Strategies used - employer perception  Successful strategies - employee perception
Constant ‘employee driven’
communication via phone, email, etc.
Regular site visits
Regular newsletters/email updates
Video conferencing
Performance based remuneration
Self-paced training programs
Webinars
Automatedperformancemetrics
(e.g.CRMsystem,information,salesetc.)
Unexpected quality audits
Other
None/don’t know
0% 20% 40% 60% 80%
Client Survey: Have staff who work remotely n=193, Candidate Survey: Those who work/worked remotely n=90
Employers are more likely than employees to describe each management strategy as effective at managing staff
who work remotely. In many cases, there are large gaps between employer and employee perceptions. For example,
28% of employers believe performance-based remuneration is an effective tool to manage staff, however just 6% of
employees hold this belief. Furthermore, 13% of employers believe that automated performance metrics are
effective compared with just 2% of staff.
And which of these do you consider to be effective?
 Successful strategies - employer perception  Successful strategies - employee perception
Constant ‘employee driven’
communication via phone, email, etc.
Regular site visits
Regular newsletters/email updates
Video conferencing
Performance based remuneration
Self-paced training programs
Webinars
Automatedperformancemetrics
(e.g.CRMsystem,information,salesetc.)
Unexpected quality audits
Other
None/don’t know
0% 20% 40% 60%
Client Survey: Have staff who work remotely n=193, Candidate Survey: Those who work/worked remotely n=90
16

Trans-Tasman Perspective
Australian organisations rely less on video conferencing (26%; cf. New Zealand organisations only 46%) and
performance based remuneration (25%; cf. New Zealand organisations only 42%) than their New Zealand
counterparts to manage their offsite workforce.
What is clear is that flexible working is here to stay: the desire for flexible work conditions spans all four
generations, with each generation ranking it highest when it comes to the most effective talent management
strategy for them. Workplaces will need to consider the possible advantages and disadvantages of implanting
flexible working conditions and plan accordingly.
Flexible Workplaces
Possible Advantages Possible Disadvantages
ƒƒ Wider talent pool to draw from, which can lead to
a real competitive advantage
ƒƒ Higher employee engagement and satisfaction
ƒƒ Better chance of retaining trained, skilled people
and high performers whose changing circumstances
may otherwise have led them to leave, as well as
increased return rates from parental leave
ƒƒ Increased morale, and often productivity and
profits
ƒƒ Absenteeism is reduced as employees are better
able to balance work and family
ƒƒ Develop a reputation as an Employer of Choice
ƒƒ Office space can be reduced and used more
effectively
ƒƒ Working patterns can be better matched to
customer requirements
ƒƒ Reduction in environmental footprint
ƒƒ Direct costs of policies that involve payments,
such as paid parental leave and cost of equipment
to facilitate working at home
ƒƒ Negative impact on organisational culture if all
employees do not benefit equally
ƒƒ Remote workers can be ‘out of sight, out of mind’
in terms of promotions, career and training
opportunities
ƒƒ Possible social isolation
ƒƒ Personnel costs associated with the number of
staff needed to maintain coverage
ƒƒ Management costs comprising indirect costs such
as investigating and implementing new work-life
balance policy systems, training costs associated
with changing processes or culture
ƒƒ Greater burden on managers and supervisors,
who need new skills to manage remote employees
Adapted from ‘The business case for firm-level work-life balance policies: a review of the literature’ 16
17

Managing OHS responsibilities of the ‘invisible workforce’
Flexible workforces understandably present potential risks around factors such as engagement, management and
safety. The Australian Human Resource Institute points out that ‘some organisations have shunned telework due to
occupational health and safety requirements, and a fear that home-based injuries will lead to lawsuits’17
.
Forward-thinking organisations however are already investing in developing OHS policies and putting appropriate
controls around remote working conditions. When Salmat brought 350 contact centre contractors from North
Queensland to Tasmania together via telephone and broadband to create a virtual call centre - Salmat@Home - it
invested significant time in developing its OHS policy. The company devised an in-depth checklist for working
conditions including the layout of the room, height of the desk and monitor, and even the make of chair. Because of
the impracticality of physically visiting each worker’s home office, workers submit digital photographs.
In this case, Salmat’s intent was to ensure that all workers had a quiet and appropriate workspace, and that it was
set up as you would anticipate in any other office environment, according to the relevant rules and regulations17
.
Our research showed that employers have a somewhat inflated view of their success in managing staff in remote
locations. Although 69% of employers believe they do a good job in maintaining Occupational Health & Safety
standards for offsite employees, just 54% of employees who work offsite believe their employers did a good job.
How well does your organisation cater to the needs of offsite or remote employees in each of the
following ways?
 Very well  Quite well  Neither well nor poorly  Quite poorly  Very poorly  N/A
Maintaining OHS standards 20% 49% 6% 1223%
Maintainingthecultureofthe
organisation
11% 45% 7% 2
233%
Overallcommunication 9% 63% 6% 1
220%
0% 20% 40% 60% 80% 100%
Client Survey: Have staff who work remotely n=193
How well does/did your current/previous organisation cater to the needs of offsite or remote employees
in each of the following ways?
 Very well  Quite well  Neither well nor poorly  Quite poorly  Very poorly  N/A
Maintaining OHS standards 11% 4%10%21%26%28%
Maintainingthecultureofthe
organisation
13% 8%10%26%22%21%
Overallcommunication 10% 6%14%19%28%23%
0% 20% 40% 60% 80% 100%
Candidate Survey: Those who work/worked remotely n=90
Similarly employers are more likely to feel they do a good job maintaining culture (56% cf. 43% employees) and
communication (72% cf. 51% employees) than employees.
To satisfy their obligations under the Occupational Health, Safety and Welfare Act 1984, employers must ensure that
home-based workplaces conform with health and safety standards applicable to the type of work being performed,
for example equipment, work environment (lighting, air quality, ergonomic issues), safe access and exits,
appropriate training and on-going monitoring18
.
18

Under the Workers’ Compensation and Rehabilitation Act 1981, an employee working from home under the direction
of the employer generally enjoys the same benefits as an employee working at the ‘head office’. In view of the fact
that home-based work is a new method of work organisation, WorkCover advises that there are still some issues to
be resolved in terms of determining the insurers’ liability for home-based workers18
.
Workplace flexibility and diversity
The changing nature of work is reflective of the ever-changing diversity of the workforce.
Organisations today are more exposed to the cultural needs of their workforce. Managed properly, a culturally
diverse workforce can bring a range of experiences and perspectives to a team, improving performance across a
range of areas such as problem solving, learning and development and personal growth. Investment in cultural
awareness and skills can also improve the ability to understand diversity and turn it into a competitive advantage19
.
While some organisations pursue a diverse workforce as merely a compliance objective, leading companies are
working to build not just diverse workforces, but inclusive workplaces.
Deloitte’s Global Human Capital Trends 2014: Engaging the 21st-century workforce attests that deriving the value of
diversity means uncovering all talent, and that means creating a workplace characterised by inclusion. Deloitte’s
research shows that most organisations are not there yet, but change is in the wind, and market leaders are starting
to move from compliance to inclusion as a business strategy20
.’
The majority of employees agree that having a culturally diverse workforce has a positive impact on their
organisation. Diversity Council Australia indicates that diverse teams are able to better solve complex problems,
exhibit a higher level of creativity and a broader thought. Diverse work teams, properly managed and trained,
produce results six times higher than homogenous teams21
.
New Zealand’s EEO Trust states that diverse workforces are more likely to retain staff, be more productive, have less
absenteeism, better customer service and better health and safety outcomes37
.
All of this leads to an impact on the bottom line: a 2014 Gallup poll found that gender diverse business units have an
up to 19% higher average quarterly net profit than less diverse units – and that units that are diverse and engaged
have an up to 38% higher increase in comparable revenue38
.
The link between a diverse workforce and financial benefits was reflected by both employees and employers in our
research.
Thinking about cultural diversity. Do you agree or disagree with the following statements?
 Strongly agree  Agree  Neither agree nor disagree  Disagree  Strongly disagree
A diverse workforce provides
financial benefits to organisations
like ours
12% 43% 11% 232%
Our organisation actively works to
attract and retain a diverse
workforce
4%12%14% 35% 34%
Having staff from diverse cultural
and religious backgrounds
improves decision making within
our organisation
13% 237%9% 40%
0% 20% 40% 60% 80% 100%
Client Survey: n=257
19

Thinking about cultural diversity. Do you agree or disagree with the following statements?
 Strongly agree  Agree  Neither agree nor disagree  Disagree  Strongly disagree
 Prefer not to answer
Having staff from diverse cultural
and religious backgrounds
improves decision making within
organisations
14% 26% 10% 10% 438%
0% 20% 40% 60% 80% 100%
Candidate Survey: n=308
Trans-Tasman Perspective
Employees in New Zealand are more likely to agree that having staff from diverse backgrounds will improve the
organisation than their Australian counterparts (62%; cf. Australian employees 38%).
A significant number of organisations in Australia (72%) have provisions for cultural considerations in their
management processes. This is higher in large (78%) than small (47%) or medium (66%) businesses.
Nearly half of the organisations (49%) surveyed indicated that they provide workers with flexible time for their
cultural occasions. Organisations also provide cultural awareness training (43%) and support for customs and
cultural needs.
Fewer organisations in Australia provide flexible time for cultural occasions than New Zealand organisations
(47%; cf. New Zealand employers 75%).
What cultural considerations are made when managing talent within your organisation?
Provision of flexible time for
cultural occasions
49%
Cultural awareness training
(formal or informal)
43%
Organisation support for different
cultural needs, customs and social
values
41%
Provision of flexible work attire for
cultural needs
30%
Workingwithculturalexpertsto
improveengagement
(e.g.IndigenousCommunityelders,
IslamicImam,Buddhistmonks)
14%
Other 2%
None 21%
Don’t know 7%
0% 20% 40% 60%
Client Survey: n=257
20

Generally, Australian and New Zealand businesses have some work to do to cater to the cultural and religious needs
of their employees. Just over one third (36%) of all employees rated their organisation as good to excellent at
catering for their cultural or religious needs, with 24% rating their organisation as poor to fair. In addition, 30%
were unsure which implies a lack of salient strategies in place.
How does your previous/current organisation cater for your cultural/religious needs?
16% Excellent
20% Good
16% Fair
8% Poor
30% Don’t know
10% Prefer not to answer
Candidate Survey: n=308
Employees don’t seem to view their cultural or religious needs as a big issue, with nine in ten (89%) saying they do
not have any specific cultural or religious needs they consider to be non-standard. Whist 4% indicated they do have
special needs, a further 3% opted not to answer the question, and 5% are unsure, the true proportion of Australian
and New Zealand workers with non-standard cultural or religious needs could be as high as 12%.
Do you have religious or cultural needs which are not accommodated as standard in workplaces?
4% Yes
89% No
5% Don’t know
3% Prefer not to answer
Candidate Survey: n=308
Asian Perspective
36% of leaders, managers and supervisors in Asia say they struggle to manage across cultures. Many adopt
global sourcing strategies to meet their staffing needs, with 56% offering international assignments and
moving employees across borders to meet business and staffing needs. Almost half (45% ) of Asian
organisations say they have a comprehensive Global Mobility framework in place to support their international
assignments, and 24% have offshored some of their functions and/or processes as part of their talent
strategy35
.
21

Indigenous Australians
A third of Australian organisations surveyed have policies respecting Indigenous Australian culture. A quarter of
organisations have processes in place where they consult Indigenous Australian staff or experts on policies and
procedures and work areas, and implement strategies to attract Indigenous Australian workers.
Thinking specifically about Indigenous Australian staff. Does your organisation do any of the following?
Have policies in place to respect
the cultural and spiritual needs of
Indigenous staff (e.g.
acknowledgement of the
traditional owners of lands that
the business operated within)
33%
Have strategies in place to attract
Indigenous Australian staff
26%
Consult Indigenous Australian staff
or specialists about working in areas
which may have spiritual or cultural
significance
24%
Consult Indigenous Australian staff
or specialists to ensure our policies
and procedures are culturally
appropriate
23%
Other 4%
None/don’t know 57%
0% 20% 40% 60%
Client Survey: Australian Clients n=233
The majority of organisations are not aware of their success rate (53%) in attracting and retaining Indigenous
workers. Of those who are aware, 24% indicate that the success of attracting and retaining Indigenous workers is
the same as non-Indigenous workers. Almost a quarter of organisations indicated a lower success rate, and less than
1% are more successful with Indigenous than with non-Indigenous workers.
Amongst those who have strategies in place to attract Indigenous Australian staff, one third are not aware of their
strategy success rate (35%) and another third (32%) indicated that the success of their strategies are the same for
non-Indigenous workers. The remaining third (33%) of organisations indicted a lower success rate.
As far as you are aware, how successful is your organisation at attracting and retaining Indigenous
workers?
<1% More successful than
non-Indigenous workers
24% The same as for
non-Indigenous workers
23% Worsethanfor
non-Indigenousworkers
53% N/A/Don’t know
Client Survey: Australian Clients n=233
22

As far as you are aware, how successful is your organisation at attracting and retaining Indigenous
workers?
<1% More successful than
non-Indigenous workers
32% The same as for
non-Indigenous workers
33% Worsethanfor
non-Indigenousworkers
35% N/A/Don’t know
Client Survey: Australian Clients with strategies in place n=100
One in three (31%) of organisations are less successful at attracting Indigenous workers because they have made no
attempt at attracting Indigenous workers specifically. Having suitably qualified workers and a lack of adequate
support systems are also hindrances to attracting and retaining Indigenous workers.
Why do you think your organisation is more/less successful at attracting and retaining
Indigenous workers?
No attempt made to attract
Indigenous workers specifically
31%
Not many qualified/suitable
Indigenous workers
17%
Lack of support systems available
for Indigenous workers
13%
Lack of Indigenous applicants 11%
Worklocations/workarrangements
unsuitableforIndigenousworkers
(e.g.FIFO)
9%
Difficulties with retaining
Indigenous workers
6%
Other 7%
Not sure/don’t know 24%
0% 10% 20% 30% 40%
Client Survey: Australian Clients Those who think their organisation is
more/less successful at attracting and retaining Indigenous workers n=54
It is clear that there is a lost opportunity in this area: just over two in five organisations in Australia are tapping into
the opportunity to utilise the unique skills and perspectives of Indigenous Australians through implementing
specific engagement processes. This is higher amongst large organisations (58%) than small (29%) or medium
(18%) organisations.
23

Diversity questions for talent managers
ƒƒ What tools can we use to analyse our workforce profile to uncover particular demographic clusters?
ƒƒ How can we ensure that employees with family and caring responsibilities, culturally and linguistically
diverse employees, mature employees and those working flexibly are represented fairly?
ƒƒ Do we know how many of our employees have family or caring responsibilities?
ƒƒ Is there a policy in place setting out our organisation’s recognition of, and support for, employees with
family or caring responsibilities?
ƒƒ Are managers trained on their responsibilities to employees who have family or caring responsibilities?
ƒƒ Do we keep data on the number of people who work flexible hours? Work from home? Work part-time?
Work part-time and manage other employees?
ƒƒ Do we record the numbers of employees who apply for flexible working arrangements, whether approved
or not?
ƒƒ Do we offer and have a policy on flexible work arrangements? If so, have we communicated to all employees
(including managers) that flexible work arrangements are available and accepted in our workplace?
ƒƒ Does everyone in our workforce have access to the same opportunities for flexible work arrangements?
Are flexible arrangements spread across all occupations and levels?
ƒƒ Is our job design process based on the traditional ‘9am-5pm’ arrangement?
ƒƒ Do we offer training to support managers in effectively leading a diverse team with a range of working
arrangements?
Adapted from Australian Government Workplace Gender Equality Agency, “Flexible working arrangements”22
Digital will fundamentally change HR as we know it
With the virtual workforce here to stay, businesses will be forced to reconsider old practices used to manage and
motivate employees, whether onsite or offsite… this is where digital technology will come to the fore.
Digital technology is continuing to evolve at breakneck speed, and it permeates nearly every aspect of our working
lives. Digital is changing the way we operate, impacting every area of how we source, assess, develop and manage
our talent. Accenture’s 2014 publication, Trends Reshaping the Future of HR: Digital Radically Disrupts HR, attests that
digital technologies enable not only greater integration and flexibility than ever before, but also the ability for
employees to have a greater share of voice and ability to participate in defining and even creating their own work
experiences. Digital is thus poised to ‘radically disrupt HR as usual’ and redefine the future of the human resources
function in the next decade23
.
Today, offsite employees typically have access to all the collaboration tools and technologies that in-house workers
do, with none of the office politics or distractions that can often destroy productivity. The market is growing
rapidly in this area; companies such as Cisco have invested heavily in developing online collaboration tools that
mirror the ease-of-use of consumer tools. Cisco recently released Jabber, which enables workers to collaborate from
any location they can get an internet connection, using text messaging, sharing documents, or through voice and
videoconferencing, on a wide range of devices17
.
According to Country Director for Citrix in Australia, Seamus King, there is a significant increase in the number of
enquiries from clients wanting to conduct face-to-face engagements, often for training purposes, without staff
needing to physically come together. Consequently, the ability to collaborate via technology is going forward in
leaps and bounds to more accurately reflect the way people work17
.
24

Mobility is driving ease of use and impact
The ultimate success of any technology depends on its uptake. Embracing mobile access is an essential feature of
any easy-to-use technology platform. Upwards of 25% of Chandler Macleod’s website views now come via mobile
devices.
In the average workplace, employees want mobile access for time and expense reporting, employee directory,
knowledge sharing, and other HR applications. Today’s HR software is not only a system of record; it is a ‘system of
engagement’, with employees and managers using these systems for everyday support, including collaboration,
learning, goal setting and expertise sharing24
.
When companies roll these systems out, they potentially create a more efficient way of working for most of their
employees. But with 5 million people predicted to be connected by mobile devices by 2018, will employers have
even more expectation for people to be productive 24/7? And if so, is that a good thing?
Analytics is driving customised talent management
As mobility applications develop and people spend more of their work and personal time on technology platforms,
they are leaving an ever-larger digital trail of information that can be tracked, integrated and analysed.
Companies have an abundance of employee, HR and performance data - demographic information, performance
information, educational history, job location and many other factors about employees - but this data is not yet
being used scientifically to make people decisions. According to Bersin, ‘this is the single biggest big data
opportunity in business. If we can apply science to improving the selection, management and alignment of people,
the returns can be tremendous’25
.
However, for the data to be in a form that can usefully be incorporated into talent management, organisations will
have to invest in quality data analytics.
Right now, 67% of employers are using data driven analysis or big data to make talent management decisions.
This is more common in large organisations (73%) than small (47%) or medium (58%) organisations. The most
common uses are to identify skills gaps (37%) and identify future leaders & measure historic metrics (both 32%).
Trans-Tasman Perspective
More organisations in New Zealand than in
Australia use big data for historic metrics (63%;
cf. Australian organisation 29%), predicting the
likely success of staff (33%; cf. Australian
organisation 15%), and identifying shifts in
historic patterns (38%; cf. Australian organisation
16%) and to inform talent management strategies
(42%; cf. Australian organisation 26%).
25

In which of the following ways does your organisation use data driven analysis or big data to make talent
management decisions?
To identify skills gaps in your
organisation
37%
To measure historic metrics such
as previous year staff turnover
32%
To identify future leaders 32%
To inform talent management
strategies such as recruitment or
retention strategies
27%
To automate HR processes 23%
To predict future metrics such as
staff turnover
23%
Tomeasurethevalueofyour
talent/talentpipeline
19%
To estimate departmental or
enterprise outputs such as future
sales or productivity
19%
To identify shifts in historic
patterns
18%
To predict the likely success of
individual staff members
17%
To evaluate the likelihood of
adverse events such as theft,
accidents or compensation claims
7%
To decentralise HR processes 6%
None of these/don’t know 33%
0% 10% 20% 30% 40%
Client Survey: n=257
Most employers believe that big data is here to stay, with 46% agreeing that analysis of big data will evolve HR into
a strategic function of the organisation (cf. 9% disagree). Whilst 18% agree the cost of collecting big data makes
most projects unfeasible, 26% disagree. However, employers are stopping short of calling big data a disruptive force
within HR (13% cf. 23% disagree).
Thinking about the use of big data in your organisation. Do you agree or disagree with the following
statements?
 Strongly agree  Agree  Neither agree nor disagree  Disagree  Strongly disagree
Analysis of big data will evolve HR
into a strategic function in an
organisation
41% 45% 8% 15%
The cost of collecting and
analysing big data makes most
projects unfeasible
16% 57% 23% 32
Big data is a disruptive force
that is reshaping HR
12% 64% 20% 31
0% 20% 40% 60% 80% 100%
Client Survey: n=257
Australian organisations are less likely to agree that big data will evolve HR into a strategic function in their
organisation (46%; cf. New Zealand organisation 66%) than their New Zealand counterparts.
26

Plan Source Assess Develop Manage
ƒƒ Skills utilisation
and talent
mapping
ƒƒ Predictive
succession and
career planning
ƒƒ Forward planning
for future skills
requirements
ƒƒ Ability to predict
upcoming talent
shortages and
surpluses
ƒƒ Insight into when
competition for
talent will be
tight and when it
will ease
ƒƒ Identifying
‘talent rich’
competitors and
when to target
them
ƒƒ Predicting
upcoming
internal
leadership
shortages
ƒƒ More aggressively
and intelligently
source talent
ƒƒ Tap into digitised
global talent
pools
ƒƒ Identify when
targeted
individuals plan
to re-enter the
job market
ƒƒ Identify which
employees are
most likely to
make quality
employee
referrals
ƒƒ Predict which
former top-
performing
employees are
likely to want to
return
ƒƒ Measure
recruiting
outcomes
ƒƒ Model top
performers to
determine key
characteristics
ƒƒ Successfully
predict the
characteristics of
high performers
ƒƒ Provide better
visibility into
internal talent
ƒƒ Measure
employee’s
abilities, wants
and needs
ƒƒ Develop talent
through
simulations and
gaming
ƒƒ Identify elements
for leadership
success
ƒƒ Provide ongoing
performance
feedback via
dashboards
ƒƒ Push out
customised
learning
opportunities
ƒƒ Develop
characteristics
and skills of high
potential talent
ƒƒ Identify when
current skills and
training will
become obsolete
ƒƒ What knowledge
and skills are
missing across
the organisation?
ƒƒ Identify
employees who
are ‘overdue’ for
internal
movement
ƒƒ Tap into when and
how the
expectations of
employees will
shift
ƒƒ Identify barriers
to productivity
and innovation
ƒƒ Which groups of
employees will
reach underpaid
status compared
to market rates
(and when)
ƒƒ Identify future
labour costs for
specific job areas
Adapted from ‘Implementing Actionable Predictive Analytics in Talent Management’26
27

Are employees experiencing technology overwhelm?
In 1947, when Australians won the right to a 40 hour work week, employees could leave work and enjoy a social life
without any connection to work – there was no email, no Facebook, no Skype and no LinkedIn.
Today, we live in vastly interconnected world, where the lines between our personal and professional lives have been
blurred. Our mobile devices now let us bring work with us 24/7. We’re checking our emails after 5pm and we’re doing
more business globally regardless of time and location. Have technology and too much access turned us into
‘overwhelmed’ employees?
This overwhelm may be the reason that we are seeing technology providers simplifying tools onto a single platform
and focused on providing a simpler user experience. According to Oscar Trimboli, the director of Microsoft
Australia’s information worker group, the wide range of devices that workers use today means it is important that
the experience of using different tools is harmonised; for example video, voice and desktop being one experience,
rather than three17
.
Pros and cons of technology in talent management
Despite media stereotypes that present Millennials as insatiable for technology, they report suffering the most
information and technology overload in the workplace. Millennials are expressing both a desire for more human,
face-to-face interaction and frustration with information and technology overload, with 72% of employees
preferring to collaborate in person vs. online (23%) or via phone or videoconference (5%)39
.
This is a warning to CEOs and Managers that technology is an enabler - not a replacement – for person-to-person
management techniques. Despite the improvements that technology can deliver, managers still need to engage and
communicate with their employees, and employees still need to connect with their work and colleagues. No amount
of technological advancement will replace these human fundamentals.
With organisations legislatively responsible for providing a safe working environment for their employees, today’s
technology driven world opens up a whole range of considerations around cyber bullying, workplace isolation and
mental health.
As the digital workplace can be accessed from anywhere, any time it makes working, and therefore over-working,
just that much easier - which can undermine and erode any distinction between work and family life.
Gamification: game changer or fad?
A recent development in digital technology is in talent management through gamification.
Just what is gamification? In basic terms, it is the use of gaming to recruit, develop and motivate employees. It is
the weaving of game mechanics such as virtual currency, leader boards (boards that display leaders in a
competition), badges, or levelling up (progression to the next level in a game) into existing work activities or
processes without the development of a full-fledged actual game28
.
Gartner Group defines gamification as the concept of employing game mechanics to non-game activities such as
recruitment, training and health and wellness. Gartner predicts that by 2014, more than 70% of global 2,000
organisations will have at least one gamified application, which can range from mastering a specific skill or
improving one’s health29
.
Despite Gartner’s comments, our research found that just 19% of employers, and 17% of employees are aware of
gamification in this context.
28

Before today, were you aware of Gamification?
19% Yes
81% No
17% Yes
83% No
Client Survey: n=257 Candidate Survey: n=308
Trans-Tasman Perspective
Gamification is more widely known by New Zealand employees than those in Australia (38%; Australian
employees 15%). New Zealand employers are also more aware of gamification than Australian employers
(33%; Australian employers 18%).
Uptake of gamification is currently low, with 5% of employers using gamification and 6% of employees identifying
their organisation uses/used gamification as a talent management tool. This is only slightly higher in large
organisations (7% of employers). Younger employees 18-34 are no more likely to be aware of gamification being
used in their organisation (7%) than those aged 35-49 (4%) or 50 years and over (6%).
Does your organisation use Gamification as part
of its talent management?
Does/did your current/previous organisation use
Gamification as part of its talent management?
5% Yes
80% No
15% Unsure/don’tknow
6% Yes
64% No
31% Unsure/don’tknow
Client Survey: n=257 Candidate Survey: n=308
Despite the low take up currently, HR is one business function that seems to be ripe for disruption through
gamification, offering a new toolset to support the sourcing, engagement and management of employees very
cheaply, in a way that delivers a fulfilling work experience and quickly aligns corporate and personal goals.
29

Recommendations
Effectively sourcing, engaging and managing valued talent will likely be a competitive ‘tipping point’ for
organisations in an increasingly competitive global economy. But to achieve the ‘economic tsunami’ of benefits
there for the taking, significant changes will need to occur, and organisations that fail to adapt will likely be on the
losing end when it comes to attracting and accessing the people and skills they need.
We predict a major transformation in coming years, with a need for organisations to re-invest in and re-engineer
their end-to-end talent approach to human resources.
To remain viable and become an effective business partner, HR teams will need an increasingly wide range of skills.
Tomorrow’s HR teams will need to understand workforce demographics and global culture; new technologies in
recruiting, learning, social networking, and analytics; and new models for coaching, talent mobility, and
performance management. They will also need to learn how to operate as business consultants, which means
understanding how the business works, makes money and builds its competitive advantage20
.
Whether they operate globally or not, businesses will have to adapt to a borderless workforce, tap into global talent
networks and create a supply chain of skills to build the capabilities they need now and into the future. Those that
successfully leverage analytics and big data to achieve this will be positioned to outperform their peers.
ƒƒ Start by collecting the data. Study the generational composition of your workforce—and use that information to
guide your HR strategies. In exit interviews, ask whether people would have remained with your organisation if
they could have worked more flexibly? Survey your workforce to ask to what extent employees believe that your
organisation helps them to balance their work, family and life priorities? Run analytics on the usage rate of
family friendly policies? Does the rate differ for women and men?
ƒƒ Identify skills gaps in your HR team. Support them in developing the skills to become skilled business
consultants with robust data analytic and problem solving capability. Match up your HR leaders with your
IT leaders to help them develop a deep understanding of Cloud, mobile, and social technologies.
ƒƒ Adapt workplace practices for different generations. Adapt your approach for each generation; also consider
differences such as age, location, religion, cultural and linguistic backgrounds and disability. Facilitate regular
conversations about differences to increase understanding and help develop respect for other generations.
Regularly provide management training on diversity.
ƒƒ Tap into global talent pools. Identify where key skills are located, tap into active and passive candidate pools,
build a pipeline of candidates and tap into talent hubs. Use technology to extend your talent search across
countries and regions, for example by using social recruiting, video interviewing, webinars and online staff
training to engage and interact with talent globally.
ƒƒ Offer flexible work arrangements equally across the workforce. Flexible work arrangements need not be costly
or resource intensive in their implementation. Often, existing conditions of service can be managed in a slightly
different way to better meet employee’s needs, for example allowing them to take small blocks of annual leave
over the course of the year.
ƒƒ A ‘Work from Home’ Policy will be important as challenges around an ageing workforce and environmental
impacts become increasingly relevant. Make sure your policy covers industrial issues, such as agreed work
location, hours and duties, insurance, training and professional development, tax issues such as deductibility
and FBT and an agreement that work will not be sub-contracted out. It should also mention technologies that
encourage visual collaboration and reduce feelings of isolation and improve productivity, and an OHS risk
assessment process to ensure the home office has been assessed from an ergonomic and workplace environment
perspective.
ƒƒ Reward and support managers to produce and retain top talent. Thanks to tools like LinkedIn, Twitter, and
Facebook, if you cannot make internal mobility easy, good people will go elsewhere. Measure managers by their
ability to produce and retain, rather than merely consume talent. And make it easy for them by implementing
policies that support continuous education, talent mobility, career growth and internal development.
30

ƒƒ Re-think annual performance reviews. Consider new tools that enable insight into engagement constantly,
and train managers to have regular performance conversations aimed at continuous development, goal
alignment, and recognition, engaging employees at all levels and helping them build the skills they need to
reach the next level of achievement.
ƒƒ Put technology to work for you. Products and services that don’t embrace trends around social, mobile,
analytics and Cloud (everything available everywhere) won’t be adopted, and businesses that don’t use them
won’t be employers of choice. Use analytics to more accurately identify high potentials and provide higher levels
of resources, training and career opportunities. Use social networks to aggressively market your EVP, develop
talent pools and re-engage your employees every day.
ƒƒ Win the race to the Cloud. Integrate your talent, HR, and business technologies across countries and regions to
simplify the work environment and provide a ‘single source of truth’. By moving these applications to the new
generation of Cloud, SaaS-based models, implementation times and costs of HRIS technology platforms are
generally quick and cost-effective.
ƒƒ Select employees predisposed to engagement. There is a growing body of research identifying the personal
traits and characteristics of engaged employees. Assess for personality traits such as positive affect and
conscientiousness, which are strong indicators of engagement, during the employment recruitment process.
ƒƒ Ensure leaders are big data savvy. Your leadership development strategy should continually build strong
leadership and succession planning at all levels, with a focus on ensuring leaders are globally aware, innovative,
agile and business tech savvy. Extend succession planning beyond managerial positions to include HR
professionals, technical specialists and high performing client and operations managers.
31

References
1. PricewaterhouseCoopers, 2014 “17th Annual Global CEO Survey – Australian results” PricewaterhouseCoopers,
Sydney, viewed on 11 August 2014 http://www.pwc.com.au/about-us/ceo-survey/assets/17th-Annual-Global-CEO-
Survey-AU-Jan14.pdf
2. PricewaterhouseCoopers, 2014 “The talent challenge: Adapting to growth” PricewaterhouseCoopers, Sydney, viewed
on 11 August 2014, http://www.pwc.com/gx/en/hr-management-services/publications/assets/ceosurvey-talent-
challenge.pdf
3. Chandler Macleod, 2014 “Skills Utilisation: How effectively are businesses utilising the skills at their disposal?”
4. Deloitte, March 7 2014, “The quest for workforce capability: Create a global skills supply chain”, Josh Bersin, Jen
Stempel & Bernard van der Vyver, http://dupress.com/articles/hc-trends-2014-workforce-capability/
5. CEB SHL Talent Measurement, “Talent Report 2014, Improving the Odds of Success for High-Potential Programmes”,
Eugene Burke, Conrad Schmidt and Michael Griffin, TALENT REPORT 2014-1-High-Potential-UK.pdf
6. Human Resources, Learning, and Leadership: Our Ten Predictions for 2014, Wednesday, 18 December 2013, http://
www.bersin.com/blog/post/Human-Resources2c-Learning2c-and-Leadership-Our-Ten-Predictions-for-2014.aspx
7. AON Hewitt, 2012 Trends in Global Employee Engagement, http://www.aon.com/attachments/human-capital-
consulting/2012_TrendsInGlobalEngagement_Final_v11.pdf
8. “Why don’t bosses get Gen Y?”, Erin Forster, The Age, August 4, 2014, http://www.theage.com.au/small-business/
startup/why-dont-bosses-get-gen-y-20140804-3d42o.html
9. “The Millennials: a new generation of employees, a new set of engagement policies”, Jay Gilbert September/October
2011, Ivey Business Journal, http://iveybusinessjournal.com/topics/the-workplace/the-millennials-a-new-
generation-of-employees-a-new-set-of-engagement-policies #.U_lwx_mSz5M
10. “Millennial branding and beyond.com survey reveals the rising cost of hiring workers from the millennial
generation”, August 6 2013, http://millennialbranding.com/2013/08/cost-millennial-retention-study/
11. AARP, 2007 “Leading a Multigenerational Workforce”, American Association of Retired Persons Real Possibilities,
Washington DC, viewed on 12 August 2014 http://assets.aarp.org/www.aarp.org_/cs/misc/leading_a_
multigenerational_workforce.pdf
12. “Abolish the 9-5 workday: OneShift founder Gen George”, BRW, Published 05 February 2014 10:34, Updated 06
February 2014 10:22, by Gen George, http://www.brw.com.au/p/leadership/abolish_the_workday_oneshift_
founder_J1NiihYAYJ1YxtvN2yo61M
13. “Changing world of work must drive management makeover”, HR Zone, by Jamie Lawrence, 20th January 2014,
http://www.hrzone.com/feature/leadership/changing-world-work-must-drive-management-makeover/142794
14. “Why Millennials Are Ending The 9 To 5”, Forbes, by Kate Taylor, 8/23/2013 @ 2:00PM, http://www.forbes.com/sites/
katetaylor/2013/08/23/why-millennials-are-ending-the-9-to-5/
15. “Engaging Virtual Employees: Innovative Approaches to Fostering Community”, by Frank Mulhern, Northwestern
University, March 2012, http://www.marketing.org/i4a/pages/index.cfm?pageID=6041
16. Labour Market Policy Group, Department of Labour, “The business case for firm-level work-life balance policies: a
review of the literature”, by Philippa Yasbek, January 2004, http://www.dol.govt.nz/PDFs/FirmLevelWLB.pdf
17. Australian Human Resources Institute, “Doing the Telecommute”, HR Monthly August 2012, https://www.ahri.com.
au/__data/assets/pdf_file/0003/13395/HRM_August_FEATURE_STORY-Doing_the_telecommute.pdf
18. “Home Based Work”, Insurance Commission of Western Australia, https://www.icwa.wa.gov.au/rc/grm/issue3/
grmissue3PAGE8.htm
19. Govindarajan, V. and Gupta, A. K. (2001) Building an Effective Global Business Team, MIT Sloan Management Review,
Cambridge, Massachusetts, viewed on 14 August 2014 , http://sloanreview.mit.edu/article/building-an-effective-
global-business-team/
20. Deloitte, “Global Human Capital Trends 2014: Engaging the 21st-century workforce”, 2014, Juliet Bourke, Christie
Smith, Heather Stockton,, Nicky Wakefield, http://www.deloitte.com/assets/Dcom-MiddleEast/Local%20Assets/
Documents/Services/Consulting/HC%202014/Attract%20and%20engage/me_human-capital-2014_diversity-
inclusion.pdf
32

21. Diversity Council Australia 2013 “Cultural Diversity: the benefits for business”, Diversity Council of Australia, Sydney
viewed on 18 August 2014 http://dca.org.au/files/file/Cultural%20diversity%20docs/ATOH2013_FactSheet.pdf
22. Australian Government, Workplace Gender Equality Agency, “Flexible working arrangements: Flexible working
arrangements and arrangements to support employees with family or caring responsibilities”, https://www.wgea.
gov.au/sites/default/files/GEI4.1_availability_utility_employment_terms.pdf
23. Accenture, “Trends Reshaping the Future of HR: Digital Radically Disrupts HR”, March 17, 2014, http://www.
accenture.com/us-en/Pages/insight-future-of-hr-trends-digital-radically-disrupts-hr.aspx
24. Deloitte, “Race to the cloud: Integrate talent, HR, and business technologies”, by Andrew Hill, John Malikowski,
Erica Volini & Brett Walsh, March 7, 2014, http://dupress.com/articles/hc-trends-2014-race-to-the-cloud/
25. “Big Data in Human Resources: Talent Analytics Comes of Age”, Forbes 2/17/2013 @ 8:00PM, by Josh Bersin, http://
www.forbes.com/sites/joshbersin/2013/02/17/bigdata-in-human-resources-talent-analytics-comes-of-age/#
26. “Implementing Actionable Predictive Analytics in Talent Management”, ere.net, by Dr. John Sullivan, Oct 7, 2013,
5:01am, http://www.ere.net/2013/10/07/implementing-actionable-predictive-analytics-in-talent-management/
27. Oracle, The Future of Talent Management: Four Stages of Evolution”, June 2012, http://www.oracle.com/us/media1/
future-talent-mgmt-4-stages-1679534.pdf
28. Gartside D., Farley C., Brosnan M., Tambe H. and Cantrell S. 2014 Trends Reshaping the Future of HR: Digital Radically
Disrupts HR, Accenture Institute for High Performance, viewed on 11 July 2014 http://www.accenture.com/
SiteCollectionDocuments/PDF/Accenture-Future-of-HR-Digital-Radically-Disrupts-HR.pdf
29. Gamification: Three Ways To Use Gaming For Recruiting, Training, and Health & Wellness, Forbes, 5/21/2012 @
6:11PM, by Jeanne Meister, http://www.forbes.com/sites/jeannemeister/2012/05/21/gamification-three-ways-to-
use-gaming-for-recruiting-training-and-health-amp-wellness/
30. Oxford Economics, Digital Megatrends 2015: The role of technology in the new normal market, March 2011, http://
www.oxfordeconomics.com/my-oxford/projects/128872
31. Facebook Newsroom, Company Info viewed 28 August 2014, http://newsroom.fb.com/company-info/
32. Twitter Now the Fastest Growing Social Platform in the World, GlobalWebIndex, viewed 28 August 2014, http://blog.
globalwebindex.net/twitter-now-the-fastest-growing-social-platform-in-the-world/
33. The Boomer-Millennial Workplace: How to Defuse the Tension: Are baby-boomer managers and millennial employees
like oil and water? Or is there common ground? Nonprofit World Volume 28, Number 5 September/October 2010,
Published by the Society for Nonprofit Organizations https://www.snpo.org/publications/sendpdf.php?id=1755
34. Deloitte, Human Capital Trends 2013: Leading Indicators, Barbara Adachi, Michael Gretczko and Bill Pelster, 2013
35. Deloitte Human Capital Leadership Institute, Fuelling the Asian growth engine: Talent challenges, strategies and
trends, December 2012, http://www.deloitte.com/assets/Dcom-Vietnam/Local%20Assets/Documents/Fuelling%20
the%20Asian%20growth%20engine.pdf
36. There Will Be Nearly 5 Billion Mobile Users By 2018 a and 8 Other Mind-Blowing Predictions From Cisco, Business
Insider Australia, Kyle Russell, Feb 6, 2014, 8:05am, viewed 28 August 2014, http://www.businessinsider.com.au/
ciscos-predictions-for-mobile-in-2018-2014-2
37. The Business Benefits of Gender Diversity, Gallup Business Journal, by Sangeeta Bharadwaj Badal, 20 January 2014,
http://businessjournal.gallup.com/content/166220/business-benefits-gender-diversity.aspx
38. What are the business benefits?, EEO Trust, viewed on 28 August 2014, http://www.eeotrust.org.nz/research/
business-benefits/what.cfm
39. The State of Workplace Productivity Report, Cornerstone OnDemand, August 2013, http://www.
cornerstoneondemand.com/resources/research/state-of-workplace-productivity-2013
40. Employee Engagement Trends in Hong Kong and its Impact on Employers, AON, HR Connect Asia Pacific, by By Andy
Leung, Senior Consultant, Aon Hewitt Hong Kong, viewed 29 August 2014, http://www.aon.com/apac/human-
resources/thought-leadership/asia-connect/2014-vol7-issue2/employee-engagement-trends-in-hk.jsp
41. 2014 Talent Shortage Survey New Zealand, Manpower Group, viewed 1 September 2014, https://www.
manpowergroup.co.nz/documents/White-Papers/2014_TS_Infographic_NZ-A4.pdf
33

Respondent Profile
Client survey
LOCATION age and gender
NSW/ACT
37%
VIC/TAS
32%
SA
3%
WA
11%
QLD/NT
8%
NZ 9%
Male 68%
Female 32%
Under 35 5%
35 to 44 25%
45to54 42%
55+ 28%
0% 20% 40% 60% 80%
INDUSTRY
2% Agriculture, Forestry & Fishing 4% Communication Services
9% Mining 8% Finance & Insurance
18% Manufacturing 7% Property & Business Services
7% Utilities 4% Education
6% Construction 9% Health & Community Services
5% Wholesale Trade 1% Cultural & Recreational Services
3% Retail Trade 3% Personal & Other Services
2% Hospitality 2% Did Not Respond
10% Transport
Candidate survey
LOCATION age and gender
NSW/ACT
37%
VIC/TAS
27%
SA
6%
WA
12%
QLD/NT
13%
NZ 6%
Male 64%
Female 36%
18 to 34 22%
35 to 49 37%
50+ 41%
0% 20% 40% 60% 80%
34

Behaviour is a Function of the Person and Environment
B = FN (P.E)
Improved
Performance
EnhancedSatisfaction
&Motivation
Greater Employee Engagement
We help organisations to:
Outsourcing
Managed
Workforces
HR Consulting
Payroll & HR
Technology
Psychometric
Assessment
Temporary, Contract
& Permanent Staffing
PLAN
ASSESS
MANAGE
DEVELOP
SOURCE
Manage
a safer, more efficient
and productive workplace
DEVELOP
skills to increase the
effectiveness of
employees, teams and
organisations
assess
the potential
of individuals
and teams
PLAN
for their future workforce needs
Source
the best talent for
their business
We help people and organisations to reach their full potential through enhancing
their human resource strategy and practices to support achievement of their goals
behaviour FUNCTION OF
job content,
scope, complexity
job context,
climate, culture,
values
PERSONALITY
skills, knowledge,
experience
cognitive
ability aptitude
interests
temperament
can do
will do
will fit
environment
What’s
BestFit?
To IDENTIFY,
ATTRACT, ENGAGE
and RETAIN
the BestFit™
people for your
role, team,
organisation
20,000
Patient assessments
conducted by Vivir
316,000
People paid
by Aurion
in 2014
9 Million
Hotel rooms
serviced by AHS
20,000
Employees
working for our
clients each week
Consolidates reporting to single
report per candidate, regardless
of assessments undertaken
Enables bespoke experience in
line with your brand and EVP -
total flexibility
Provides 24/7/365 access -
any location
Relieves cost of managing
multiple tool vendor
relationships & SLAs
Streamlines the purchase of
tailored assessments to a single
transaction
Aggregates the world’s leading
cognitive ability, personality
and safety assessment tools
Providing Thought Leadership
in Human Resources trends
and issues
55 years heritage
8 countries
40+ offices
1,100 corporate staff globally
Measured using:
Assessment
Gateway
Australasia’s leading provider of integrated
HR services, products and technologies
35
Watchto
findoutmore
Watchto
findoutmore
Readmore

CHANDLERMACLEOD.COM
CM2016_09.14_WhitePaper_TalentManagement