HR Best practice report. Research conducted by CRF Institute. Talent management benchmark EU and China

1. China’s HR Best practice –
Key findings of CRFs research
August 5, 2011

2. Biography
Arthur Lankester MSc.
Business Intelligence Manager
CRF Institute
arthur.lankester@crf.com
www.linkedin.com/in/alankester
twitter.com/#!/CRFinstitute
Arthur Lankester graduated in the field of International Management
(MBA) and Organisational Psychology in the Netherlands. After working
as consultant he joined CRF Institute in 2009 as Business Intelligence
Manager.
The CRF Institute is the independent organisation behind the Top
Employers certification. The CRF Institute identifies top performers in HR,
across 13 countries and 4 continents. Arthur is responsible for CRFs
international research practices and develops surveys, benchmark- and
best practice reports.

3. Content
1. About the CRF Institute
2. CRF Video: HR, Get ready for the next decade
3. Business and HR priorities of China’s Top Employers
4. Share and benchmark HR research findings
Purpose of today’s session:
• Share CRFs HR insight of China’s Top Employers
• Inspire you with HR best practices

4. About the CRF Institute
The CRF Institute is the independent organisation behind the Top
Employers projects. The CRF Institute identifies top performers in
the areas of HR.
• Mission: Inspire Top Employers to Stand out,
We inspire organisations to be excellent employers
by giving comparative insights to HR policy and best
practices. This is beneficiary for all stakeholders, especially their current
and perspective employees.
• Founded in 1992, operational in 13 countries on 4 continents:
(China (since 2006), Belgium, Brazil, Denmark, France, Germany, Italy, The Netherlands, Poland, South Africa,
Spain, Switzerland, United Kingdom. In 2012 start-up Turkey, Australia)
• Over the years more than 2500 organisations participated in our
projects, especially market leaders and multi-nationals.

5. Selection of last years Top Employers

6. Top Employers certification
Being certified as a Top Employer China will offer
organisations:
• Independent recognition of HR performance
• Actionable insight into your comparative strengths
• Significant visibility to stand out as an employer of choice

7. How we work
Research forms the core of the Top Employers project:
• Objective, fact based research
• Cooperation with HR experts and research partners
• Determine whether an organisation meets the requirements to
be certified as a Top Employer.
4 phases:
1. Shortlist
2. The HR Best Practices Survey
3. Review and Audit
4. Rating and Selection

8. CRF Video: HR; Get ready for the next decade
Demographic, social-economical and techological factors
increase the challanges to attract and retain talented people.

9. Business priorities
2011
“Please indicate your top 5 Business Priorities and rank
them according to importance:”
2011
China Europe
1 Strengthening sustainability Winning and retaining
customers
2 Customer satisfaction Customer satisfaction
3 Innovation People & career development
4 People & career development Innovation
Developing new products or
5 Building the brand services
While global economy remains in the aftermatch of the financial crise,
China’s economy seems vital and organisations emphasize on their sustainability

10. Business priorities
Trends
“Please indicate your top 5 Business Priorities and rank
them according to importance:”
China
2011 2010 2009
People & career People & career
1 Strengthening sustainability
development development
2 Customer satisfaction Innovation Building the culture
3 Innovation Winning & retaining
Employer branding
customers
4 People & career development Building the culture Building the brand
5 Building the brand Building the brand Innovation

11. Resource planning
China’s workforce needs and shortages are sky-high
Expected development in the number
of employees over the next three years
Staff number will increase
EUROPE China Staff number will stay the same
11% 7%
11% Staff number will decrease
23%
66%
66% 93% 2010: 96%
2009: 95%
Expected shortages in human resources per job level
2010: 64%
2009: 60%
BE DE
NL ES
FR
•
CHINA EUROPE

12. HR priorities
2011
“Please indicate your top 5 HR Priorities and rank them
according to importance:”
2011
China Europe
1 Talent management Talent management
2 Leadership development Learning & Development
Cultural & Organisational
3 change
Employee engagement
Transforming HR into strategic Leadership Development
4 partner
Recruitment and staffing
5 Workforce planning
The extreme growth targets of Chinese organisations create a high demand
for local talents and local leaderswho can truly manage their employee force.

13. HR priorities
Trend
“Please indicate your top 5 HR Priorities and rank them
according to importance:”
China
2011 2010 2009
1 Talent management Leadership development Learning & development
2 Leadership development Learning & development Talent management
Cultural & Organisational
3 change
Talent management Leadership development
Transforming HR into strategic
4 partner
Performance management Recruitment and staffing
Transform HR into strategic
5 Workforce planning partner
Performance management

14. Talent management
“Get the right people, on the right time on the right
place”
Talent management:*
Understand the business strategy and define the talent needed to
1. DEFINE
deliver that strategy
2. DISCOVER Consider where the talent might come from and how to attract them
Ensure that employees continually acquire new skills and capabilities
3. DEVELOP
and link them with the organisations purpose and strategy
4. DEPLOY Match and align talent where it is most needed and best suited
* Book: The Talent Powered Organization (P. Cheese, R.J. Thomas, E. Craig, R.J. Thomas)

15. Define your talent
You need to look beyond simply head count. Create a clear picture about the
organisation competency needs (knowledge, skills and attributes).
Which insights does HR have regarding the
competency levels of key employees? HR insight
EUROPE in China
FR
Measures the competency levels of all 72% 87%
key employees
Medium term, strategic forecast of its 45% 77%
organisational competency needs
DE
Prepared a GAP analysis between current 42% 63%
employee competencies and the competencies
Implemented action plans to foresee in the 54% 67%
strategic forecast competency needs.

16. Discover your talent
Communicate your recruitment message effectively
through the recruitment channels.
What will be the most valuable sources of talent
for your organisation over the next 3-5 years? Valuable sources
EUROPE in China
FR
#1
#1 Development/training of existing personnel
#2 Recruitment from top schools/universities #2
DE
#3 Recruitment from competitors #3
#4 Recruitment from other industries #4
#5 Recruitment through professional/social networks #5
#6 Off-shoring #6
(outsourcing work to talents outside organisation)

17. Discover your talent
Go beyond a singe employee value proposition to all employees. Instead
customise the value proposition to the needs and desires of each employee.
Which actions does your organisation take
regarding the Employee Value Proposition (EVP)? EVP
EUROPE in China
Operational
A formal statement about organisational 82% 97%
level
offerings to employees
Identifying employee groups regarding 53% 77% Tactical
level
employee needs and organisational offerings
Measuring the fit between employee 55% 57%
needs/desires and organisational offerings Strategic
level
A three-year strategic outlook on future 35% 40%
employee needs and organisational offerings

18. Discover your talent
Attraction vs. Engagement of employees
Relative HR priorities across Europe and China
RECRUITMENT
LOW HIGH
PO UK
ES
HIGH IT
BE
NL
ENGAGEMENT FR
CH
CN
HR PRIORITIES LOW
•
DE
China 2011
HIGH priority is ranked no. 1 -3 in list of HR priorities
LOW priority is ranked no. 4 – 10 in HR priorities

19. Discover your talent
Menu-driven approach: allow employees to pick personal gains and
working relations they seek from their work.
“Are managers/professional entitled to choose specific elements within their
own compensation and benefits scheme”
• Yes, we have a cafeteria model 45% 28%
• No 55% 72%
CN
EU

20. Discover your talent
Menu-driven approach: allow employees to pick personal gains and
working relations they seek from their work.
Video: the cafeteria model
CN
EU

21. Develop your talent
Organisations that talks about talent development must
emphasize every one’s role in developing others as a core value.
Development
COMMON DEVELOPMENT programmes
PROGRAMMES – Europe in China
Leadership development 83% DE 90%
FR
83%
Individually selected training 79%
General training 87% 87%
DE
Industry-job-related training 85% 87%
Coaching/mentoring 67% 67%
Talent management 78% 77%

22. Develop your talent
The notion of a talent mindset is crucial. People have to see
learning as an important part of their job.
Application of reviews and bonuses to encourage
employee participation in development programmes
100%
50%
0%
UK BE FR DE IT NL PL ES CH CN
Reviewing employees about their participation in development programmes is
standard
Employees’ bonuses are linked to their participation in development programmes
Managers are reviewed about the participation of their staff in development programmes
Managers bonuses are linked to the participation of their staff in development
programmes

23. Develop your talent
Beneficial learning and development investments can’t do without
measuring skill acceleration and improved competiveness.
Measurement of the effectiveness of MEASUREMENT OF
SHORT TERM
development programmes EFFECTS
LOW HIGH
Evaluation by participants UK
CN
Increase in employees’
MEASUREMENT OF
97% ES
knowledge or capabilities HIGH
LONG TERM
Skills transferred into
EFFECTS
65% performance in roles
60% NL
BE
DE
Knowledge retention over
time
LOW IT
24% 26% Return on investment CH
PO
(increased productivity, FR
etc.)
LOW - HIGH scale short term: 70-100%
LOW - HIGH scale long term: 20-65%
Measurement of the effectiveness of development
programmes at China:
Evaluation by 100% Extent to which developed
DE 73%
participants skills are transferred into
performance in roles
Increase in employees’ Knowledge retention over 50%
86%
knowledge or capabilities time
Return on investment
(increased productivity, 33%
etc.)

24. Deploy your talent
Give employees opportunities to move within the organisation
discovering new capabilities and gaining insight in unfamiliar parts of
COMMON DEVELOPMENT the business.
“Do employees have access to an overview of the
PROGRAMMES – Europe
competences required for specific job roles?”
CHINA EUROPE
Yes, employees have unrestricted
13% 0% 6%
access to competency profiles
Yes, employees have access to
competency profiles when they
32% request this from HR
87% 62% No
“Which of the following aspects of Succession Planning are
coordinated centrally in your organisation?”
Senior positions are reviewed 87% 97% Job rotation, to prepare suitable 64% 87%
periodically to identify successors employees
Mentoring, to prepare suitable 65% 87% Managers need to bring on their own 21% 57%
employees successor before they are promoted
Training, to prepare suitable 95% 97%
employees

25. Deploy your talent
Create conditions that encourage employees to engage and
direct their efforts to achieving the organisational goals.
COMMON DEVELOPMENT
PROGRAMMES – Europe
Which actions are taken regarding employee
engagement?
Employee survey results are communicated 73% 73%
formally throughout the whole organisation
Action plans for improvement are developed 80% 73%
A specific budget is allocated for implementing 59% 60%
the action plans
The implementation of action plans is 72%
77%
monitored
Achieved results are linked to management’s 31% 40%
bonus
The effectiveness of action plans is evaluated 67% 70%

26. Summary
Business Priority
• Organisations emphasize on their sustainability.
COMMON DEVELOPMENT
PROGRAMMES – Europe
HR Priority
• The extreme growth targets create a high demand for local talents and local
leaders who can truly manage their employee force.
Resource planning
• China’s workforce needs and shortages are sky-high
Talent management
• “Get the right people, on the right time on the right place”
(Define, Discover, Develop, Deploy)
Define your talent
• Look beyond simply head count. Create a clear picture about the
organisation competency needs (knowledge, skills and attributes).

27. Summary
Discover your talent
• Communicate effectively through the recruitment channels.
COMMON DEVELOPMENT
PROGRAMMES – Europe
• Customise the value proposition to the needs and desires of each employee.
• Menu-driven approach (cafeteria model)
Develop your talent
• Organisations that talks about talent development must emphasize every
one’s role in developing others as a core value.
• Talent mindset: People have to see learning as an important part of their job.
• Measuring skill acceleration and improved competiveness.
Deploy your talent
• Move people within the organisation discovering capabilities and insights
• Engage employees to direct their efforts to achieving the organisational goals.

28. Questions
COMMON DEVELOPMENT
PROGRAMMES – Europe
?

29. COMMON DEVELOPMENT
PROGRAMMES – Europe
Thank you for your attendance
Arthur Lankester MSc.
Business Intelligence Manager
CRF Institute
arthur.lankester@crf.com
www.linkedin.com/in/alankester
twitter.com/#!/CRFinstitute