MARC TIMMERMAN

EXECUTIVE DIRECTOR

TALENT MANAGEMENT EMEA

HAS HR LEARNED FROM THE PAST ?WHAT WILL IT TAKE IN THE FUTURE ?

The Mosquito &

the Nudist Colony

Anno 2009

How many crises can the mind

of a CEO handle simultaneously ?

WHEN THE WHEN THE

ECONOMIC ECONOMIC

CRISIS CRISIS

SUBSIDES, THE SUBSIDES, THE

TALENT CRISIS TALENT CRISIS

WILL REMAINWILL REMAIN

• Credit bustCredit bust

• RecessionRecession

• DownsizingDownsizing

• Pension & TaxPension & Tax

• Governments’ role Governments’ role

• DemographicsDemographics

THE “TALENT CRUNCH”©

CONSIDER THE BIG PICTURE (WHILE OTHERS ARE NOT)

CHANGE IN WORKING POPULATION

THESE TRENDS ARE RECESSION PROOF

There is a paradox between short term

cost savings and longer term talent

requirements

HUDSON HR SURVEY 2009

• Surveyed 500+ HR & Business Leaders worldwide in March – April 2009

• Explored how HR priorities & challenges changed during the economic downturn

HR PRIORITIES: DOWNSIZE, BUT KEEP TALENT ENGAGED

VARIETY OF HR INITATIVES TAKEN IN 2009

• Sophisticated andmulti-faceted HR strategies

• Strong focus onmeasures to accompany cost-cutting including: outplacement or talent development programmes

KEY HR ISSUES IN 2009 ENGAGING AND RETAINING TALENT WHILE RIGHT-SIZING

OUR ANSWER: YES, HR HAS LEARNED FROM THE PAST

We are seeing a learning effect from past crisis: organisations now realise that talent engagement is key and the challenge is the retention of their key people. These are as important as the right-sizing exercises.

The economic recession will be followed by a talent crunch crisis. Businesses must recognise that short-term initiatives need to be balanced with longer-term thinking in order to guarantee continuity – and success on the other side.

Some organisations are taking into account that in order to secure the continuity of the organisation they should hang onto and invest time and energy in the retention of the most critical talent groups. We urge more businesses to follow this example.

Anno 2010

Are we facing a hiddenTsunami ?

The Case : “The results of an Economic Battle Fatigue”

Multiple external surveys in Europe indicate that there could be an employee turnover as high as between 40-60% in 2010 as economies slowly recover.

1 out of 3 key performers is considering leaving their employer in 2010.

1 out of 4 high potentials is considering leaving their employer. (Source : HBR, May 2010)

This year staff attrition could cost the UK economy in excess of £1 billion. (Source : The Grapevine, Feb 2010)

Hudson Employee Engagement Survey Results indicate an average of ‘weak’ contracts between 30 & 50% in Europe in Q1 2010.

Are you ready to playMusical Chairs ?

FOCUSSED HR ISSUES IN 2010SEPARATE SCHOOLS OF THOUGHT

Two Main Schools of Thought :

– Individual Entry Point : Talent Engagement & Retention

– Organisation Entry Point : Business Strategy & Workforce Planning

– Hybrid : Succession Planning

All focussing on increasing volume of Talent Pool

– Moving from 4-6 % to 10% of first Tier Top Talents

– Anticipating Retention Risk ?

– Investing towards Future Growth ? Gaining Competitive Advantage ?

More focus on employer branding as part of commercial branding

– If people like us as an employer, we must be good as a company !

– Re-inventing the Brand to come to a multi-facetted appeal for many

– Knowledge workers and Leaders are the most critical groups

– Structural gap, not conjunctural

– Only buying talent is not sufficiant, nor realistic as a solution

– Growing Talent internally is required :

– Do we know their Aspirations ?

– Level of complexity will be very high : individual differentiation

– Retaining through ‘Golden cages’ ?

– Can we afford it on the long term ?

– Can we afford it in uncertain economies ?

THERE IS AND THERE WILL BEA WAR FOR TALENT

WHAT DO WE NEED TO CHANGEIN MANAGING TALENT ?

Thesis 1 :

–We need to learn from Marketing : “Segmenting our Talent pools”.

Thesis 2 :

–Complexity will increase significantly : “We will have to manage, engage, develop and retain individuals”.

Thesis 3 :

–We lack communication, creativity and risk taking in developing Talent in the most effective manner.

HR ISSUES & RISKS FOR THE FUTUREMy “Capita Selecta”

IDENTIFY THE RIGHT TALENTSSTOP THE CLONING

Sources: Organizational Dynamics (1986), Human Resource Management, (1998), National Productivity Review (1989), Journal of Management Development (2003)

• Has a unique perception of occupation

• Is very time conscious

• Shows independence

• Has a high level of commitment

• Has a phenomenal amount of energy

• Shows a vibrant sense of creativity

• Strives for continuous improvement

• Gives sharp remarks

• Shows willpower

• Varying interest in teamwork

• Gives a demanding impression

• Puts the job before everything

• High intelligence

• Has a broad thinking style

• Is part of the dominant coalition

DO NOT CREATE YOUR OWN LOUIS XIV

- Initiative - Introspection

- Problem solving

Derailment is often caused by:

• Cold heartedness

• Arrogance

• Self-glorification

- Negotiation skills - Sensitivity to others - Team builder - Strong relationships - Interpersonal skills - Good reputation

EQ

- Assertiveness - Thoughtfulness - EnergyEarly

Career

characteristics High performance & IQ

Mid Career

characteristics

THE LEADERSHIP GAPDOES HR NEED TO FILL THE GAP ?

On average 28 to 32% of your managers are fully competent in :

• leading people

• leading a complex and changing business

• steering towards the future

Some of the leadership gaps HR is expected to fill :

• Listen to the voice of your Talent, give them practical growth opportunities, take a risk with them.

• Create an atmosphere at the top that offers protection and allows people to make mistakes.

• Create possibilities for Baby Boomers to understand Generation Y

• To Walk the Talk !

THE BIGGEST INJUSTICE IS THE EQUAL TREATMENT OF PEOPLE WHO ARE NOT THE SAME

CULTURAL CAREER MODELS : HISTORY ?

Anglo-Dutch Model Germanic Model Latin Model

BE BETTER IN HIRING “SUPERSTARS” &GROW YOUR OWN “SUPERSTARS”

T

E

S

T

I

N

G

ExperiencedExternal

Influx

Zero-MeasurementPeriodEntry Level

ControlledZigZagManagementPeriod

Junior & Mid Career

Senior MgmtCareerTrack

Top ExecTrack

Final AdmissionAssessment

Senior MgmtDevelopment Centre

Junior MgmtDevelopment Centre

Young Graduate Assessment

BUYING SUPERSTARS 80 / 20 rule

PUT YOUR CRITICAL PLAYERS IN CRITICAL ROLESTalentship (Boudreau)

Impact

Complexity

High

High

Low

Low

X

YA

ZB

High Potential

Good Performer

WHY PEOPLE HATE HR ?THE NEED TO SIMPLIFY IN INCREASING COMPLEXITY

Facing More Pressures Inside & Outside :

– Talent Crunch & Market pressure on Knowledge Workers and Leaders

– Who can afford ‘Golden Cages’ ? Re-inventing Recognition ?

– Growing degree of Individualisation

– Need for Flexibility in Job Design and Work Arrangements

– Globalisation & Need for Intercultural Sensitivity

– Importance of communication & Virtual co-operation

– How to keep your Ageing Workforce motivated and engaged ?

– Loyalty is only temporary

– …

KISS MORE THAN EVER : Simple Systems Make Adoption Easier

THE FUTURE = ABOUT “INCLUDING & e-VOLVING” ?

Growing Importance of the Talent Management Umbrella

– Talent Retention is Key to Success : Know your People !

– Diversity Management : Learning from the past and making the right changes

– Hybrid HR Solutions will be necessary !

– The right fit, the right development offering, the right challenges, the right degree of flexibility and mobility, the right package

Technology & Hotelling : Creating an Internal & External Marketplace

– START THINKING AS MARKETEERS ASAP !!!!!

– Social Networks, Alumni Networks, Microsites, E-testing, internal HR Services, e-PDP, …, e-anything

– A Way to get closer to the Individual

– A Way to manage as much as possible

– A Way to offer as much as possible

IN CONCLUSION:

THE TALENT CRUNCH WILL OUTLIVE THE ECONOMIC CRISIS

– Step back and consider the big picture to identify opportunities

– Remember people drive innovation, productivity & performance

– Be creative about retaining key talent & establishing diversity

BUILD FOR TOMORROW WHILE OTHERS ARE FOCUSED ON TODAY

– Re-evaluate talent for current and future requirements

– It takes A-players to hire A-players !

– Balance the short term actions with long term strategies

TAKE TIME TO UNDERSTAND YOUR PEOPLE

– Psychological contract provides unique insight

– Communicate, communicate and communicate !

– Engagement is a two-way deal

THANK YOU FOR YOUR ATTENTIONAND JUST REMEMBER …

“The certainty of misery is better than the misery of uncertainty”