Date post: | 15-Jul-2015 |
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2© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
Time For A More Holistic Approach To Talent Risk
And how effectively are they
mitigating against
talent risks?
Organizations are
competing for
talent on an
unprecedented scale
In this context, how
effectively are organizations
identifying talent risks to their current and future
business growth?
KPMG International
commissioned
Brandon Hall Group
to conduct a
global study of talent-related risks
1,200 Human Resources (HR), talent, learning and business executives
54 countries
Government and 15 different industries represented
Just over a quarter of respondents work in companies with 30,000+ employees
Series of qualitative interviews
3© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
Unleashing The Talent Within
1
Talent management
strategies too focused on so
called high potential and
senior leaders, rather than
creating a talent
system within
organizations.
2
The workforce of the future
won’t focus on individuals,
but instead on talented
organizations and
talent ecosystems.
3
Creating talented
workforces means creating
the right culture and
ecosystem to empower
employees to work
collaboratively.
4
The ‘war for talent’ is a
fool’s errand - the impact
that a high performing
individual can have, when
compared to a high
performing workforce
is insignificant.
5© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
An insufficient budget for managing and developing talent Cost
Salary expectations of candidates with critical skills become too high Cost
Difficulties in recruiting top talent Capability
Salary expectations of candidates with critical skills become too high Capability
Skills and capabilities required by the business in the near future are
not developed Capability
A lack of compelling development opportunities for top talent Capability
A lack of depth of internal candidates for critical roles Capacity
An insufficient pipeline of future leaders Capacity
What talent risks were respondents most worried about?
1
2
3
4
5
6
7
8
Business leaders’ inability to engage with, motivate and nurture
business critical talent 9 Connection
Managers view performance management, talent reviews et c as a
process to comply with rather than as business critical activities 10 Compliance
6© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
21%
18%
32%
20%
6%3%
Don't Have
Not Effective
Somewhat Effective
Very Effective
Extremely Effective
I don’t know
‘An insufficient pipeline of future leaders’ ranks as #1 talent risk and
yet few organizations have effective succession planning in place...
Effectiveness of Succession Planning
7© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
26%
22%
20%
13%
10%
9%Less than 25%
26% to 50%
51% to 75%
76% to 90&
More than 90%
I don’t know
26% of organizations filled less than 25% of their Critical Roles with
internal candidates
Percentage of Critical Roles filled with Internal Candidates
in last year
8© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
Which talent risks were respondents actively managing?
A lack of depth of internal candidates for critical roles 1 Capacity
An insufficient pipeline of future leaders 2 Capacity
Difficulties in retaining key people 3 Capability
A lack of clarify over which roles are ‘critical’ to deliver business value 4 Cost
The total cost of the workforce becomes unsustainable in relation to
current revenues 5 Cost
Skills and capabilities required by the business in the near future are
not developed 6 Capability
A lack of compelling development opportunities for top talent 7 Capability
Difficulties in retaining to talent 8 Capability
The cost of retaining top talent becomes unsustainable 9 Cost
Salary expectations of candidates with critical skills become too high10 Cost
10© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
The top 10 list of risks respondents were least worried about
featured a number of Connections risks…
Talent management processes become non-compliant with local
regulation, for example data protection 1 Compliance
International mobility policies and processes make it difficult to
transfer talent between countries 2 Connection
Employee relations hinder rather than help talent management
processes 3 Compliance
A lack of workforce diversity 4 Capacity
An inability to define the new skills or capabilities that will be needed
by the business in the near future 5 Capability
Business leaders’ reluctance to share talent across the organization6 Connection
Business leaders’ and HR/talent team’s inability to work effectively
together to manage talent 7 Connection
A lack of clarity over which roles are ‘critical’ to deliver business value 8 Capacity
The total cost of the workforce becomes unsustainable in relation to
current revenues 9 Cost
The cost of retaining top talent becomes unsustainable 10 Cost
11© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
A surprising lack of concern about connecting and engaging
with talent…
No concern? The survey showed talent managers are relatively
unconcerned about:
■ International mobility policies and processes making it difficult to transfer
talent between countries
■ A lack of diversity in the workforce
■ Business leaders’ reluctance to share talent across the organization
■ Business leaders’ inability to engage with, motivate and nurture business
critical talent
12© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
Talent Review Processes are also not used effectively as an
engagement driver...
Do your organization’s formal talent review meetings result in
development plans for which leaders take responsibility?
13© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
Cost related risks featured at the bottom of the top 10 list of risks
respondents were least worried about featured …
Talent management processes become non-compliant with local
regulation, for example data protection 1 Compliance
International mobility policies and processes make it difficult to
transfer talent between countries 2 Connection
Employee relations hinder rather than help talent management
processes 3 Compliance
A lack of workforce diversity 4 Capacity
An inability to define the new skills or capabilities that will be needed
by the business in the near future 5 Capability
Business leaders’ reluctance to share talent across the organization6 Connection
Business leaders’ and HR/talent team’s inability to work effectively
together to manage talent 7 Connection
A lack of clarity over which roles are ‘critical’ to deliver business value 8 Capacity
The total cost of the workforce becomes unsustainable in relation to
current revenues 9 Cost
The cost of retaining top talent becomes unsustainable 10 Cost
14© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
24%
38%
27%
11%
No
Yes, in a limited scope
Yes, extensively
I don’t know
Over 60% of organizations do not track total cost of workforce at all,
or use it only in a limited scope...
Does your organization use 'Total Cost of Workforce' as a
key metric?
15© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
The three big challenges for talent management
■ Performance management seen as compliance activity vs. business critical
■ Leaders’ inability to engage with, motivate and nurture business critical talent
■ Insufficient budget for managing and developing talent
■ Maintaining engagement in the face of a less committed, more flexible workforce
2 Insufficient focus on total cost of workforce 2
Organizations take a narrow view of talent management 1
32 Talent risks in top 10 identified but not in top risks being managed3
17© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
Cost
Capacity
Capability
Compliance
Connection
Workforce Analytics
Strategic Workforce Planning
Competency Framework/Career Path and Succession Planning
On-going monitoring and continuous improvement
Performance Management and Employee Value Proposition
Actions organizations can take for the talent risk areas….
18© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
KPMG talent framework
How will
we win in
the future?
How do we
manage our
talent risk?
How do we
measure the
impact on the
organisation?
How do we
organise and
enable our
talent ‘team’?
How do I pull
all these unique
requirements into
a talent plan for
the future?
PO
LIT
ICA
L
EC
ON
OM
IC
SO
CIA
L
TE
CH
NO
LO
GIC
AL
EN
VIR
ON
ME
NT
AL
GR
EA
TE
R P
RO
FIT
AB
ILIT
Y
INC
RE
AS
ED
MA
RK
ET
SH
AR
E
EN
HA
NC
ED
CU
ST
OM
ER
SA
TIS
FA
CT
ION
MO
RE
IN
NO
VA
TIO
N
IMP
RO
VE
D R
EP
UT
AT
ION
STRATEGIC TALENT
REQUIREMENTS
TALENT RISK
MANAGEMENT
INVESTMENT AND
MEASUREMENT
GOVERNANCE AND
INFRASTRUCTURE
YOUR UNIQUE
TALENT PLAN
ACQUIRE
AND PLACE
DEVELOP
AND CONNECT
ENGAGE
AND RETAIN
19© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
#Fight4Talent
Final Thoughts: Organizations must embrace a more holistic
approach to talent management
Holistic
Approach
Pause to consider whether all major
talent risks have been identified & prioritized – does the business
agree?
Work with leadership to connect and
engage with talent across the
organization
Embed strategic & holistic talent planning into
business planning –it’s not a standalone
exercise
Seek to understand and track the total
cost of workforce
Evaluate talent-related decisions
for return on investment
Hardwire talent risk into wider enterprise
risk management frameworks
Build a talent strategy based on an
understanding of what the organizations
needs to win in the future
© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such
information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on
such information without appropriate professional advice after a thorough examination of the particular situation.
kpmg.ca/talentrisk
LAURA CROUCHERPartner, Advisory Services National Lead People & Change (Canada)
KPMG LLP
@croucher_laura
Laura Croucher KPMG
+1 416-777-3417
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#Fight4Talent