Lecture 18 Download the Course Transcript New

8/11/2019 Lecture 18 Download the Course Transcript New

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The New HR: 21stCentury Talent Management Course Transcript, Bersin by Deloitte, Deloitte Consulting LLP

This is a verbatim transcript of the UDEMY Course The New HR: 21stCentury Talent Management,

by Josh Bersin https://www.udemy.com/bersin/

S4 00:29 My background in learning and development started by accident,actually. I was in the technology industry for about 15 years, and theninadvertently got a job, took a job as the head of marketing for alearning management systems company, which we built up into alittle company and then sold to a training company, and learned aboutthe training industry around 1998, 1999, in the beginnings of theinternet. My original introduction to training was really onlinetraining, and how to put content into a web browser and to create whatthen became e-learning. For the last 15 years, really have beenhelping companies understand everything from e-learning toleadership development, to succession management, to talentmanagement, to HR, to performance management, and it's just

expanded from there. It all started with learning technology.

S3 01:26 Great. Can you tell us more about your clients and the work you dowith them?

S4 01:30 In the role that I'm in today, I really help larger companies -companies billion dollars and up typically - understand how tooptimize their HR and talent and training and recruiting practices, toreally drive business performance for them. In my particular case, Idon't have background as an HR specialist. I wasn't trained as an HRperson. I come to this from really a research and consultingbackground, so all of the information I'm going to share in this sessionis really research-based, looking at how companies can apply thedisciplines of HR to solve very particular business problems and that'sreally what I think we've done in a kind of a cool way.

S4 02:17 I love this work for a lot of reasons. First of all the people in HR arewonderful people - very personable, hardworking, serious, value-oriented professionals. I love business and figuring out ways to makebusiness work. There's this very complex relationship between peoplepractices and business outcomes that's really kind of scientific butkind of not. There's this combination of scientific principles and reallya lot of gut feel that we try to do and put together for organizations.The other thing that's really fascinating to me is this keeps changing.Every year or two, something new happens. There's new technology,the work force changes, demographics change, political changes,regulatory changes. The best practices in HR and talent managementare new every couple of years. We get to keep up on that.

S4 03:30 We're actually in a really interesting period of time where we'recoming out of a big recession, and so there actually is an emergingvery big war for skills taking place. A lot of competition to attracthighly skilled people, both in the United States and in a lot ofemerging economies. There are leadership gaps in organizations as

Transcript of Bersin by Deloitte The New HR Course by Josh Bersin 1
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knowledge and information that keep the learning and HR departmentfresh and aware of what's going on. That always pays off in everycompany we ever talk to.

S4 07:48 The relationship between HR and the business is probably one of themost important issues companies face. In immature HR organizations,HR is viewed as an administrative group, and they handle payroll, andpersonnel, and legal, and compliance. Those are what we call levelone companies. In more sophisticated companies, HR is embedded inthe business. They're partnering with line leaders and supervisors andexecutives, they're offering advice, they're working on consultingprojects to help improve performance or engagement, they're lookingat data about people, they're helping select people, and they're reallyengaged as advisers. There's this range of expertise that HR andlearning professionals have from being sort of order takers and serviceproviders, to being really trusted advisers and consultants. I thinkwe're all trying to move to the right in that continuum, and that isreally one of the biggest challenges HR has today, is moving into thatbusiness advisor consultant role.

S4 09:03 I would say that there's quite a few repeatable problems companieshave. One is, in most companies, people are rewarded for hitting theirnumbers. Companies are successful; their stock price goes up whenthey get financial results. The question is, how do they get them?There's really another dimension to that, is that, for everybody whohas a strong business muscle for making their numbers, they also haveto have a talent muscle. I think one of the biggest continuous thingswe run into in companies is leaders, executives, supervisors,managers, who maybe don't understand the HR and talent part of theirjobs as well as they do the business part of their jobs. They may

actually be doing things that look like they're the right things butthey're actually not optimal in the long run. There's this continuouseducation of business professionals on what is the people side of theirskill set look like, and how do they develop that?

One of the things in my experience - I've been in the business worldabout 30 years - one of the things that I've learned is that everybody intheir career goes through this transition from being an individualcontributor to being a team leader or manager. When they make thattransition, they don't just change jobs, they just changed careers. Nowthey are people manager, now they're a leader, now they're expectedto behave and do things that they never thought about as an individual

contributor. That's going on in companies every day, over and over,year after year. I think there's always an opportunity to help people bebetter leaders, to understand what leadership means, and to buildprograms to support leaders and supervisors. We're all leaders at somepoint in our jobs. That's common across all organizations of all size.

S4 11:28 Learning is going through a lot of change right now. We have theonline courses, The Moocs, lots of free content available. We haveself-authored video, people walking around with their phones takingvideos, uploading it into the corporate web site, sharing things. Wehave this explosion of gaming tools entering the learning industry.



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Should we make learning more gaming-like? What's happening toformal training? Do people still come to the corporate university? Dowe have a corporate university? Of course, we need that, but there's alot of companies still struggling with how much money to spendthere. It is now so easy to author content that companies have too

much content. It used to be, when I got into this industry, it took a lotof effort to build online content. Now, we have oodles of onlinecontent. How do we arrange it and make it relevant, to make it easy tofind, and tag it and see which content is really good and which contentisn't? That's an enormous challenge. There's all sorts of interestingnew dimensions to learning going on, to say nothing of the fact thatwe have an enormous growth in data and measurement. Big data is abig topic and the learning industry hasn't figured out what to do withall the data they have about learning. It may take years to reallymaster that. We have a lot of really interesting problems to deal within learning.

S4 13:09 My name is Josh Bersin. I'm the principal and founder of Bersin byDeloitte. We're a research-based advisory services organization. I'vebeen in the industry of learning, training, leadership, and HR for about15 years, focused primarily on best practices research, benchmarking,analyst work, working with vendors, and tools providers, andconsulting firms, and advising large organizations on how to improvetheir HR talent leadership programs to drive business outcomes.

S3 14:54 All right, everyone, let's welcome to the stage Josh Bersin. He's goingto be giving us a presentation on 21st Century Talent Management. I'lllet him take it away from here.

S4 15:05 Thank you. We're going to talk about talent management, and we'regoing to call this 21st Century Talent Management. And really, talkabout how to create a high performance, highly engaging, modernwork environment for your employees, how to recruit people, how todrive performance, how to train them, how to create leadership, andreally touch the whole area of talent management for the next hour orso, and really help you design and implement programs that have a lotof impact in your organization.

S4 16:46 We're going to talk about 21st Century Talent Management. Andreally, touch on the key practices and strategies organizations shouldadopt to really create a highly engaged, high performance workforcein today's environment or economy. What I'm going to walk throughover the next hour or two is a whole series of practices that we've

learned from our research that you should be able to apply directly inyour organization pretty quickly, based on what we've learned fromworking with many, many companies around the world.

S4 17:24 By way of background, I'm responsible for a business in Deloitte bythe name of Bersin by Deloitte and for about 14 or 15 years, we'vebeen studying through research, through case studies, surveys,benchmarks, lot and lots of meetings and strategy projects withcompanies, all the different areas of HR and talent management.Focused initially on learning and leadership development, then welooked at talent management, succession, performance, all the issues



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of engagement in the workforce. How do you organize HR training,learning and leadership to effectively implement all these things thatyou designed? One of the things companies do of course is they comeup with great ideas and they design great programs, but how do youoperationalize that into your company so that it actually works and

drive it into the behaviors of your people and your management?Because ultimately HR is really an advisory role, really a support rolein the company. We don't run the company; we help the leaders runthe company. A lot of what this research is about is how not onlywhat to do, but how to do it, and how to move it into the organizationin an effective way.

S4 18:39 A couple of things I want to talk about. First, I want to spend a fewminutes on the talent challenges around the world and give you somethoughts on how some of the challenges that you're facing cometogether. Then, I'd like to introduce the topic of talent managementand define what talent management was and what it's becoming, andgive you some definitions and some concepts. Then I'd like to coversix topics. I'm going to talk about talent acquisition and recruiting. I'mgoing to talk about performance management, how to create highlyengaged workforce and to drive a culture of performance.Engagement and retention, and how do you retain employees. Whatdo you do about young folks or young people entering yourworkforce, and the different demographics that you might have withinyour company? Then I'm going to talk about learning anddevelopment and how to build a continuous learning culture and whatwe've learned about learning and development over the years. ThenI'm going to talk a little bit about leadership, leadership development,and how to drive a leadership strategy in your organization. Andfinally, a new topic, analytics. A little bit about measurement in

analytics, and what you can do with all this wonderful data you havewithin HR about your people and how that can be leveraged forcompetitive advantage.

S4 20:30 First is part of a-- Sort of by way of context, we talked to a lot of HRprofessionals around the world and business leaders and these aresome of the issues that they face. You can see they range from how doI hire great people? How do I build an engaged workforce? How do Iorganize HR? How do I structure HR? It's quite a complex series ofchallenges. One of the reasons it's difficult is the HR departmentitself, which you're probably a part of, is not always that well alignedwithin the rest of the company. The challenges are really a

combination of what do we design and do, and then how do we stayconnected in the appropriate way with the leaders that are running thecompany.

S4 21:39 Today, organizations really have what we call a nexus of challenges,and let me just talk you through what some of these are and see if theyring true for your organization.

S4 21:49 The first is business change and disruption. I don't think there's acompany in the world that isn't going through some form oftechnological change, regulatory change, or just a transformation of



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your business, driven by either competition or a change in the externalenvironment. That, of course, changes the nature of what you deliver,your products and services, and then who your people need to be andthe kind of skills they need to have.

S4 22:15 The second issue that's been going on around the world - and this isbecoming even more important as the economy recovers - is thisemergence of huge growth markets in Asia, in Eastern Europe, andother parts of the world that typically, traditionally were notnecessarily global economies. We'll talk about that in a little bit. Ifyou're working in a relatively large company, you're probably talkinga lot about China and India and perhaps Eastern Europe or SouthAmerica and markets that you want to grow in but you may not havethe infrastructure or the people there.

S4 22:49 The third issue that's driving HR today is this borderless workplacethat we work in. We basically work in companies now that are highlyconnected, cross-functional teams. We still have leaders, we still have

managers, we still have a corporate hierarchy, but we're all on ourphones and we're working on Saturdays and Sundays, and we'reworking from Starbucks or we're working from home and we'reoperating in much more cross-functional teams and that is reallychanging a lot of the nature of the HR practices that we have to designand develop.

S4 23:21 The fourth issue is that skill specialization is becoming a big, bigcompetitive advantage. Because of the interconnectedness oforganizations, if I need a specialist-- Let's suppose I need an HTMLprogrammer or I need a Java programmer or I need somebody who'san expert in actuary, the chances are I can find that person inside thecompany or outside the company. I can call them on the phone, I cane-mail with them, I can interact with them and I could get to themfaster than ever before. If I don't have access to those specialists in theorganization and if I'm not building those specialists in theorganization and if I'm not making that specialized skill available toother people, I'm probably falling behind, because my competitors aregetting that. There's definitely an increase in need for morespecialized skills. I'll talk a little bit about that when we talk aboutlearning.

S4 24:10 Of course, if you add up all of those things, we've really created adifferent kind of company. We have a more connected, flattenedorganization. That means the nature of leadership today is different

than it used to be as well. There really is a new breed of leadership,new models of leadership that are being adopted in companies. Youprobably have a lot of leaders that are in their twenties and thirtiesthat are relatively new to their leadership roles, and that's creatingwhat we call 21st Century Models of Leadership.

S4 24:40 Finally, the sixth factor affecting talent is the fact that we're actuallyin a very competitive market for talent. Not only is there a shortage ofhighly skilled people in many domains, but thanks to tools likeLinkedIn and Facebook and Twitter and all of the connectivity toolswe have in social networking, there's a very hot demand for the



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people that are good, and they are very easily now able to find newpositions. There's really a new war for talent that's emerged,particularly now that the economy is picking up, that's makingsourcing and recruiting and employment branding extremelyimportant in your success, even if you're a small company. Even small

companies like ours, before we came part of Deloitte, we had tocompete very, very heavily for every single person. Every person wetried to hire, we were probably competing against a larger company,somebody that had more money, somebody that might have had abetter brand than us. We had to use very unique ways to attract peopleto our particular culture, and that's what you really need to do in yourorganization as well.

S4 25:45 All of these six factors are creating a need for different types of HRpractices, the adoption of new technologies, and new skills andcapabilities that you're going to need to understand in your role as anHR or learning person or as an executive in the business of HR.

S4 26:08 We just did some research several months ago and looked at problemsthat companies were facing. This chart shows you importance on thehorizontal and preparedness on the vertical. You can look through itand you can see what companies are struggling with. On the bottomright are the things with the most critically problem areas wherecompanies are the least prepared. If you look at those yellow dots, andhopefully you can read that, you can see that the critical areas fall intothe categories of learning, capabilities, analytics, planning,management, and leadership. Those are really the core areas of talentmanagement that I'm going to talk about during the rest of thisprogram.

S4 26:56 As a motivation for you, if you're in the HR department, many times, Italked to HR professionals and one of the things they struggle with is,"People don't care about what we're doing," or, "They're not payingattention to these great programs we rolled out," or, "We're not gettingenough money," or, "We're not getting enough time." That's not trueanymore. If you look at what CEOs are worried about-- and this isdata derived directly from a CEO level survey done by the conferenceboard. In late 2013, human capital is the number one issue on theminds of top business executives, not HR executives. Quite a bithigher than operational execution, which is very interesting to me.What that's really telling me and it should be telling you, is that thepeople part of the business is now perhaps the most important part ofthe business, and perhaps the most risky part of the business. Yourability to understand and implement the right solutions has moreimportance than ever, raising the bar for what you need to do.

S4 28:24 One of the things that's interesting before I get into some of thepractices is, a lot of you might be from outside the United States, allover the world. It's interesting how the challenges around the worldare very, very similar from country to country. Sure, emergingeconomies have perhaps lower skills in the workforce, they mighthave younger people and so the nature of work and the nature of theirworkers are different. But as they grow and as the businesses grow in



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these companies in these countries, they tend to go into the samepattern. As we look around the world at the different challenges thatcompanies had, there's a fairly a consistent set of issues. If you'reworking for a large company that has a lot of global operations, as Igo through this program I think you're going to hear things that apply

in virtually every country you do business with slight variations fromplace to place.

S4 29:24 One of the topics that I want to touch on as we get started is this ideaof specialization. Let me make a couple of points here. The first isthat expertise drives competitive advantage. If you look at thecompanies that have really outperformed their peers in the last fewyears - you look at Google, you look at Apple, you look at other highperforming companies, you look at Exxon Mobil, you look at anycompany that's dominant in their industry - the chances are they have,

under the covers, a deep set of expertise that they've developed overmany years in their domain that they're continuously investing in.They also know that those skills are derived, not just by formaltraining, but by practice, by rotational assignments, by developmentalculture that goes along with that.

S4 30:12 What you are seeing in this triangle is a typical carrier pyramid. Oneof the things we did earlier on in our research is we studied what iscalled a high-po, a high-potential and you probably used that term, oryou may use that term in your organization. The traditional definitionof a high-po is somebody that could move up two levels in theorganization, usually referring to levels of management or leadership.On the right side of the pyramid is the traditional approach toleadership where you move from first-line manager to second-linemanager, to director, executive and so forth. What we're finding outtoday, in the economy we live in today, is that competitive advantageis not only driven by leadership, it's also driven by deep levels oftechnical and professional expertise. You have to have a potentialdefinition that allows you to develop technical experts, functionalexperts, project leaders, and other experts in the organization that canmove up almost as high in the compensation in career ladder asmanagers. You will find, company after company that we talk to, ifthey don't focus on specialization for multiple years, they usually findthat their competitor-- if their competitors do, they will fall behind.

S4 31:29 Another thing about specialization is specialization drives innovation.It might be counter-intuitive, but if you really think of what it takes tobecome innovative in some area, the most innovative people are theones that are the experts, because they've been studying something fora long time, they see around the corner, they understand where thereare problems that could be solved in new and unique ways, they don'thave to reinvent the wheel, because they've maybe been down thatpath before. Driving work specialization not only helps you deliver anoperational efficiency, but it also helps you build a much moreinnovative culture.



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that because of the economic variations around the world, the size ofthe cities and the roads, the nature of people's work and lives that theyneeded to have cars that were slightly different from place to place. Agreat example of that is this particular car, it's called the Ford Figo,which was a car that was designed by Indian engineers, by Ford in

India. It uses colors and shapes that are appropriate to Indian tastes. Itis designed for the relatively bumpy roads in India. It's designed forthe affordability of the Indian community, and with the ruggedreliability needed in that particular location. When this car waslaunched, I think it was about two years ago, it became one of thefastest selling cars in India in a very short period of time. That's not tosay that it doesn't parts and chassis and probably engines that might bemanufactured in a global basis, but as you can see, it's a local car.

S4 38:24 If you think about that from the standpoint of HR, whether you're arecruiter or a training person or an OD person, you have exactly thesame problem: how do I build a program that's very local and relevantin this country, where we have a particular unique talent problem, butuses the common parts or the common infrastructure or the commonlearning that we've developed around the world?

S4 38:50 Let's talk about talent management. It's a concept and a phrase that'sbeen around since around early 2000s. The idea of talent managementin the early days was really to integrate the side load processes of HRinto what we called a talent system. The word 'integrated' wasattached to talent management because, really, the big focus of talentmanagement in the early days was to just connect things together.

S4 39:22 Here's really where talent management came from. In the 1980's, ormaybe it was in the 1970's, HR organizations were designed withwhat were called centers of excellence. There was a recruiting group,there was a learning and development group, there was a performancemanagement and OD group, maybe there was a leadership andsuccession group, there was a comp group, there was probably anemployee relations group, labor relations group. Each of those groupswere functional groups specializing in those areas, developingprograms relevant to the work force and the company, but reallyfocused on that domain.

S4 40:00 What companies found out, in the early 2000s, that the problems theywere facing could not be solved by any one of those groups. Forexample - I remember very well an example - a large defensecontractor came to us, probably five years ago and said, "We forecast,

based on our own planning, that we will have a shortage of 20,000technical engineering skills over the next five to ten years, based onthe growth of the defense industry, the growth of our markets in thecommercial sector. How are we going to get those people? We can'ttrain them; we can't necessarily recruitment them. We need to do awhole bunch of things. We need to move people around and inside thecompany, into new jobs. We need to do a better job of identifyingwhere these gaps will be, and then targeting our recruiting, sourcingand branding towards college grads that will be able to take thosejobs. We are going to need to retrain, and probably incent some of our



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senior people to move into new roles internally. We might have tochange the comp structure, or the organizational design of differentgroups to accommodate the need for say, cyber security engineers--"Which at that point they had none, and that turned out to be anenormous industry. What they found was that these were cross-silo

problems that couldn't be done by one of these groups, nor was thedata even available to understand how these groups will worktogether. That really began the whole dialogue of integrated talentmanagement.

S4 41:31 If you've been in talent management, what you've seen over the lastfive years or so is this need to integrate and automate these practices.But where we are today, and I think where we're going to be goingforward, is we're moving to another phase; we're moving to the globaloptimization of talent and talent management. I actually think what'shappening is we're moving away from this concept of an integratedtalent management program with each of these groups workingtogether to really the creation of what we would call an integratedtalent system, where the organization would look at a problem, likethe shortage of engineering and say, "Okay, in order to solve thatproblem, we probably need to do five or six things. We need tochange the way we recruit, change the way we move people in theorganization, do some different things in learning and development,change some succession practices, reorganize, perhaps say,interchange some comp plans," and that's really what integrated talentmanagement is all about.

S4 42:31 The framework you're seeing here comes from our research and whatit does is it shows you what all the dimensions of talent managementare. I'm not going to go through all of them. There's a lot of them

there, you can read through them. It's designed to help youconceptualize the fact that these pieces do fit together into a hole andthey're really like an interlocking puzzle. You'll find the more youwork at this level, the harder and harder it is to work on only onething. We still have to be specialized in each area, so we're going tohave learning specialists, we're going to have comp specialists, we'regoing to have specialists in succession, specialists in leadership, butthe better you understand the interconnectedness of these pieces, thebetter you're going to be able to design programs that really solvemore systemic larger problems in your company.

S4 43:37 Let's talk a little bit of where this is taking HR. If you look at the HRdepartment or the HR function and even the name Human Resourcesit really comes from many decades ago. The concept of the termhuman resources, those two words, really were designed to parallelthe words financial resources and physical resources. Because back inthe early days of the turn of the century when companies were beingdesigned and many business models were being created, businessschools and great business thinkers came up with this idea that there'sreally three assets that you have in a business: you have financialresources, you have physical resources, and you have humanresources. The HR department or the Human Resources Departmentwas designed to manage those human resources. That's where it



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started.

S4 44:32 It started as a back office, personnel department to administer thepractices of hiring, recruiting, compensating, managing people in arather tactical way. We know that that's not really what people are,they're not resources. They're really what we call ever-increasingassets. An individual, a person might come into your company in ajob and preform at this level. But, if they're managed well, and yourcompany operates well, they will contribute at an ever-increasing rateover time. They'll become more engaged, they'll become moretrained, they'll become more productive, they'll get to know yourcompany better, they'll get to know your customer better. Really, it'snot really a human resources problem. It's really a humandevelopment, or a people management problem.

S4 45:24 Over the years, we've evolved HR into new roles. Over the last tenyears, a lot of the focus on HR has been focused on this green boxcalled strategic HR. The concepts of strategic HR were really

pioneered by Dave Ulrich in many of his pioneering books. Theyreally deal with the issue of HR becoming a service organization tomanagement, and providing specialized skills to management in theareas of recruiting or development or learning or leadership oremployer relations. That's really what we call Level Two. When thetalent management space became popular, when we started to talkabout talent management, HR moved its priority towards talent. Howdo we build and acquire and attract and really manage people better?That's really where most of the value of HR has been over the last fiveto seven years is really in this orange box, which is really creating thistalent system and providing services, tools, software and consulting tohelp the organization, company, business unit by business unit, or

department by department, or manager by manager implement andimprove the talent practices they have to run their groups better.That's really the transition we're in in HR, is really moving intobecoming an integrated talent organization.

S4 46:47 But our research actually shows that it's going to go further than that,is that there are a small number of companies that have moved beyondthat, to what we call business-integrated HR. The idea here is thatafter you really understand the implications of talent management andyou have a great set of talent programs, and your HR teams areworking well together, and you have a good consulting orientation totalent problems, then you go back into the business, and you train andempower your HR business partners, locally in the business, workingdirectly with line managers to consult at a consultative basis, directlywith the business leaders. HR doesn't stand back as an HR departmentanymore. Now HR is in the business with you every day. Not justserving blind managers. Not just doing administrative things for them.Not just administering performance management or performanceappraisals, but really advising and consulting with HR with thebusiness on a regular basis.

S4 47:48 That's really where HR is going. We call that high-impact HR. We'llbe talking a lot more about that this year, when we launch some new



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research in that area.

S4 47:58 Let's talk about talent acquisition. Perhaps the most important thingyou do in your company - believe it or not - is talent acquisition. Ifyou think about it, every problem you have, people related, eventuallygoes back to, "Oh, we have the wrong person in the wrong job," or,"We hired the wrong person," or, "The person that we hired wasn't theright person at that particular time," or, "They were at that particulartime and they aren't anymore." This problem of sourcing, recruiting,identifying the right person, attracting people to your organization, isextremely important. You will find that the most effective -particularly in early phases of growth - the most effective companiesin the world are very, very good at recruiting.

S4 48:50 As I mentioned a little bit earlier, we are in a war for top talent and weprobably always will be. Even during recessions, there is a shortage ofgreat people: people that are very good at their jobs; they're veryspecialized; they have very, very strong management or leadership

experience are always in short supply. They can always find new jobs,and they are always hard to get.

S4 49:13 Last year we did some research on the recruiting industry and, onaverage, companies are spending $3,000 to $4,000 per hire. That's ahuge number. That's over $100 billion spent in the United Statesalone. If you look at all the people that are hired in the United States,roughly 20% to 22% of the entire US workforce turns over everyyear. There's a lot of people changing jobs and as they change jobsand as people look for new positions, and they look for the optimumrole for their personal career, you're out there looking for them.There's really this big matching game going on. It's like the datinggame, really, where you're trying to tap into a pool of either active orpassive candidates and they are out there using tools to find the rightposition for them. It turns out, if you'll look at this chart that despitethe explosion of social networking tools like LinkedIn and Facebookand Twitter and all the others, there's still a lot of different wayspeople find positions. A high significant percentage of them comefrom internal candidates and referrals. A lot of them still come fromyour company website. It turns out that 30% to 40% of newcandidates now find out about you from their mobile phones, bybrowsing around and finding something about a position that youhave available. Job boards are still there. A lot of people are recruitedfrom universities. This is a very complex area of HR. In fact it may beone of the most complex areas of HR.

S4 50:47 We've done a lot of work pulling together and trying to make thiscomplex thing a little more understandable, and I won't really walkthrough this chart in detail. But, as you look through this, what you'llsee is there's different layers of talent acquisition. At the top there's,really, the attraction layer. Who are we trying to attract? What is ourbrand in the market? What are the messages we want to get out aboutus as an employer, and how can we attract people to us? One of thethings we've learned over the years about employment branding, notonly is it extremely important, but it must be authentic. The best thing



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you can do as an employment brand is be honest and really go outthere and explain to the world either through LinkedIn, or advertisingor other tools, who we are, what is the essence of our organization,who are the type of people that are going to like working here. Whatthat will do is it will create more of a tunnel of candidates as opposed

to a funnel. You don't want lots and lots of candidates that aren't theright people applying to your company. You want a small number ofcandidates that are the perfect people. This branding process and thismarketing process is extremely important.

S4 51:58 We also find that now is the time for talent acquisition leaders topartner with their chief marketing officer. The concept of employmentbrand is really fading away, because your employment brand is reallybeing recreated every time your employees go home. They talk totheir spouses or their friends or they go to a party and they talk aboutwhat it's like to work at your company. The better you understand andwork with your corporate marketing organization, the better you'regoing to be able to drive an employment brand that's consistent withyour corporate brand.

S4 52:33 If you look at the left side of this chart, you can see there's a lot ofissues about how you organize and govern and manage the talentacquisition function. We've actually found that one of the weakestparts of HR in organizations today is organization's ability toglobalize their recruiting process. Typically, what you probably havedone in your company, what most companies do, is there's localrecruiters operating on behalf of local managers in local markets.That's great; that's important thing to do because those recruitersknow where the candidates are and they know how to reach people.Unfortunately, what that creates is a separate recruiting department,

separate recruiting tools, separate assessments, separate consultingfirms, which don't optimize the global process. There's a really bigopportunity in most companies to create shared services or globalstandards for recruiting that are then implemented locally. You cansee from the framework that there are many, many complex areas oftools and technology in talent acquisition that are rapidly changingtoday as well. I'm going to talk to you a little about them.

S4 53:47 The first thing you have to understand in talent acquisition is whywould somebody come to work for you. It's not as simple as you maythink. It turns out, if you look at the data from research firms like usand others, there are a whole variety of reasons why somebody willselect a job. One of the biggest is, "Will I learn something and willthis job take me someplace? Is it an opportunity to grow?" Andparticularly, with high-potential people, young people, people that areat the pinnacle of their career and they really want to achieve more,you have to make it very clear that these opportunities are available,and you have to make these opportunities available.

S4 54:29 The second is leadership. "Will I be able to meet and work withpeople at this company that will help me, as an individual, succeed?"That's actually a very complicated problem. You, in the recruitingside, aren't going to be able to define or create the leadership culture



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of your company, but you're the one that really should talk about itwith the other counterparts you have in HR and make sure that it'swell understood.

S4 54:55 The third is really the market presence and the market success of theorganization itself. Our research shows that more and more today,particularly young people, they want to work for employers that havesome meaning, some purpose, they're delivering something to theglobal community or to the world that has some bigger meaningbesides profits. We know that in business, we're basically here tomake money, but we really have a bigger environment or ecosystemthat we operate in. In your employment brand, think about what yourmeaning and your purpose is and how you can communicate that tothe outside world and you'll find a whole different set of highlyengaged candidates will come to your company if you can make thatclear.

S4 55:43 Here's a great example, to me, of a company that understands how to

brand their employment. This is the company that makes UGGs boots,which many of you probably know all about, and this is theircorporate web site. The reason I like to show it off is, this is acorporate web site - this is not the career web site - this is thecorporate web site, but they're communicating a lot about who theyare. What they're trying to do is to communicate to you as the buyerof one of their products, or potentially as a candidate to come workthere, what kind of a company is this - who are these people, what dothey stand for, what is the ethos of this company, what would it belike if I worked there, what would it be like if I used some of theirproducts and I had to actually call them and interact with them. Thoseare very important factors in your employment branding that cross

over into your corporate brand.

S4 56:49 It turns out that the best way for you to develop your employmentbrand is first, to study it. What we recommend you do if you're in therecruiting function, or you're starting a new recruiting organization, orreinvigorating it is spend some time serving your employees allaround the world, and get a sense of why they work there, what dothey like about their jobs, what do they not like about their jobs, whatare some of the things that they think you could be doing better, andfigure out where your employment brand really is, and what it is.

S4 57:26 What you're going to find is that in some organizations, people areworking for you for, maybe they like the work. In other organizations,they like their management. In other organizations, they might like thework environment. You need that information at your fingertips asyou go back and develop the campaigns and the communications andthe deliverables that you're going to use when you go out and dorecruiting.

S4 58:27 Another great example of employment branding is this one, whichcomes from an automobile parts manufacturer. This is a company thatmakes car seats, transmissions, wheels - things that you might think



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aren't very exciting. But of course, they need to hire engineers. Theyneed to hire software developers. They actually compete withMicrosoft, and Google, and Facebook and a lot of very, very well-known high-tech companies. They did some work and they looked atthe employment brand and they talked to their engineers and, "Why

do you like working here?" Of course, if you're an engineer, which Ihappen to be one, they like doing fun, exciting work. They likebuilding great products that are exciting things that have an impact onthe world. If you'll look at the web site, the employment web site inthis particular company, it's all focused on building things andbuilding things that are exciting and cool and that are futuristic. Thatwas very deliberately done to attract the type of technical talent theywant to have to work in this company. Not everybody who works forDelphi is going to build forward-thinking, space age products, but ifthey feel that the environment will give them that opportunity, thenthey'll come at least apply for work there and potentially find a greatposition.

S4 59:51 Another great example of a company that's done a terrific job onemployment branding is American Express. American Express is acompany that's been-- that's well-known around the world and formany years, had local employment web sites, country-to-country thatwere not connected together. In the last five years they built a globalemployment brand that is actually localized to each country. If youlook at the next slide, it will show you just a couple examples of howthat web site works. What you're really seeing here is an organizationthat is under-built and understanding of the type of people they wantand then localized it into the markets that are relevant for their needs.It turned out, in American Express, as I was talking about this is oneof the discoveries they had as they were going through this

globalization of their talent acquisition process, is that some of theirmost valuable employees who often work in customer service andwhat is essentially a financial services company did not come fromcustomer service. They did not come from financial services. Theycame from hospitality companies. Because the culture of AmericanExpress is one of really caring for customers. The process ofemployment branding really allowed the company the opportunity todig a little deeper into who the high-performing people really were,which allowed them to, of course, create a little more subtle attractivebrand that would attract those types of people. It's a very strategicprocess.

S4 61:41 One of the things that's also going on in the talent acquisition industryis an enormous amount of technical innovation. There are nowcompanies - start-up companies, companies like TalentBin,Entelo,Connectifier, and Gild, and a company called Identified (nowowned by Workday) - that actually go out - and they're very similar totools like LinkedIn - they go out into the social network, they look forinformation about people that's publicly available, they bring ittogether, and they give you, as a recruiter, tools to find people thatyou would typically have a really hard time finding. The area wherethis has been the most interesting is in software engineering. Software



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engineers often contribute to public web sites, or they contribute codeto communities, and that code is evaluated by other people. It turnsout, through some of these social recruiting tools, you can find outthings about people that you would not necessarily know from atypical employee assessment or a job web site. As you build out your

talent acquisition strategy and you look for some of these more uniqueroles in the marketplace, you're going to find some very exciting newtools that you can now take advantage of to find unique candidates forvery specialized roles.

S4 63:02 The recruiting industry is also very big on data and if you don't have abig data or an analytics focus on recruiting, you probably should.There are companies in the market now that are offering data on locallabor markets, the availability of skills by geography, which not onlyimpacts where you want to spend your advertising dollars or yourrecruiting dollars, but maybe even where you want to locate aparticular engineering center around the world. It turns out, if youlook at the sophistication of analytics in HR across many, manycompanies, the areas where the highest value has come over the lastfive years has really been in recruiting because the power of the datais so valuable. I'm not going to spend a lot of time talking aboutanalytics and talent acquisition; that's a whole another session, but it isan area you should definitely focus. We've found that if you don't takeadvantage of the data you have, both on the outside market and insideyour company, you are probably spending money on talent acquisitionthat's wasted. Because it is an area where you spend a lot of money onsourcing and advertising, recruiters, third party recruiters and younever really know if you are spending the right amount. With moredata you can be much smarter and much more rationalized on thatlevel expense.

S4 64:33 Let's build this one out. We recently did some research on talentacquisition and we looked at about 20 or 30 different practices, inwhich practices of recruiting seemed to be driving the highest level ofvalue, and you can see then here ordered by priority from highestvalue to lesser value. You can see it's interesting. At the very bottomis the applicant tracking system. You need an applicant trackingsystem and the chances are, you either have one or you're going to getone but because applicant tracking systems are somewhat commodity-like today, simply having one will not give you any competitiveadvantage over somebody who doesn't have one. But, you'll see thevery top practice in recruiting is really the relationship between the

job or the hiring manager and the candidate, and understanding you asa recruiter, having a good dialogue and a good relationship with thathiring manager, having a very good understanding on what that job is,who would be a successful candidate for that job and making sure thatthose job requirements are very clearly articulated in your recruitmentand sourcing campaign. That's actually not as easy as it soundsbecause a lot of times, the relationship between the sourcing and therecruiters and the hiring managers is not as strong as it could be.That's one of the reasons, by the way, that outsourcing recruiting caneither work or not work. Because if you break that relationship, you



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will actually lose a lot of the impact that you have in the recruitingprocess. You can see how important employment brand is.

S4 66:16 The third one is something we call Candidate RelationshipManagement. Five years ago, that concept didn't exist, but today it'sexploded. The idea here is that you're going to be recruiting peoplecontinuously in your company, year after year. What you don't wantto do is start each recruiting process from scratch. "Oh well, let's goout there and find a bunch of people that might be good for this job."You build a database of candidates or what is also called often times atalent network of people that are interested in your company, andmaybe they're not even looking for a job right now, but they might, atsome point in the future. You put together communication campaignsto tell them about your products, tell them about cool things yourcompany is doing, maybe occasionally telling them about availablejobs and sure enough, what you are doing is you're farmingcandidates, you're creating interest, you're attracting people who areinterested in your company. Sure enough, when that really importantjob opens up, you now have thousands of people to distribute that jobto, who already kind of know a lot about who you are. They've self-selected into your talent network or your candidate pool, and morehighly likely to get the good candidate to come and apply.

S4 67:33 The fourth one I want to mention is referral programs. It turns out thatif you look at the data on highly effective candidates or quality ofhire, and by the way, quality of hire is a difficult term to measure, butmost people measure quality of hire by candidates that have stayedwith the company more than a year and what their performance is inprior year in subsequent year. But most study will show you thatcandidates that are referred by your employees are higher quality

candidates, and there's a lot of reasons for that. The first is of course,"If I refer a candidate to my company, I'm going to make sure it'ssomebody good because my name is on it and it's going to reflect onme if that person doesn't work out." The second is, "I know what it'slike to work at my company, so I know whether somebody would be agood fit, and I'm more likely to give my friend or associate areasonably honest assessment of what it's really like to work here."Candidates that come from referrals are really pre-screened and theytend to be better fits. The third, of course, is that if your highperformers are recommending their friends and their peers, you'regoing to get more high performers. If you don't have a referralprogram, if you're not encouraging people to bring referrals, if you're

not making it easy for people to know what jobs are available-- By theway, one of the problems with the referral programs is mostemployees don't even know what jobs are available in their owncompany. They would refer their friends or professional associates,but they really don't even know where those jobs are. There's lots ofthings you can do to really drive that process. Then, the last one onthis chart is ongoing training for recruiters. That gets back to what Italked about in the very beginning. We are working in a professionthat is going through tremendous change. Most of us who come intoHR come in without professional training in HR. We might have



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come in, we started as a trainer and then we moved into a trainingmanagement. We started as a recruiter and then we became a sourcer.Maybe we were on a line job and we rotated into HR because wewanted to try something new. In the recruiting industry, in particular,with all of these tools and techniques and many of the practices on

how to screen people and how to interview people, we really need todo continuous development and training. By the way, that goes forline managers as well.

S4 70:00 One of the things companies tell us is that most supervisors and linemanagers that they haven't been a manager for many years aren'treally that good at screening, assessing, and interviewing candidates.It's a little more tricky than just getting to know somebody and say,"Oh, I really like this guy so let's make him an offer." There aredefinitely techniques to interviewing people that help you assess theirpotential fit in your organization. Those are areas of training youshould really be investing in as well.

S4 70:57 The next section we're going to talk about is a very traditional, oldfashioned part of talent management, which is often calledperformance management or performance appraisals. This is perhapsthe most rapidly changing part of talent management. In just the lastmonth, there was quite a bit of press about how Microsoft re-engineered their performance management process which will createeven more awareness of what the opportunity is here.

S4 71:29 If you look at this chart, the next chart, what you'll see, what's reallyhappened - and we've been studying this performance managementprocess here for about almost eight years - around the time of the lasteconomic boom, companies started to lose interest in the traditionalperformance appraisal process. In the history, of course, ofperformance appraisals goes back to the days of peace work whenpeople would come to work, and they would dig ditches or theywould carry buckets of water or they would saw logs, and we wouldmeasure how much work somebody did, and based on the amount ofwork they did, we wanted to pay the people that were moreproductive more and the people that are less productive less. That ofcourse got translated into a rating process, and then, in many cases aranking process that was really pioneered and marketed very heavilyby GE as a force ranking process. The theory behind it was alwaysthat we have organizations that are essentially a normal distribution,and we have some really high performing people, and we have peoplethat are moderately high performing people, and then, we have somethat aren't necessarily performing very high. We should really lavishbenefits on people across that chain of individuals based on theirperformance, and in order to do that, we have to rate them with anumber. Everybody who works in a big company get a number once ayear, and based on that number, it determines whether you getpromoted, how much money you make, and all sorts of other thingsthat are very, very sensitive and very important in your life.

S4 73:41 This process was developed that gives everybody - to try to deal withthis normal distribution curve - we all get a number once a year. It's



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usually a one to five number, and that number determines ourcompensation increase, whether we get promoted, what kinds ofcareer opportunities we have, all sorts of very important things thatreally affect our entire life, not just our career. It turns out that for awhole bunch of reasons, that's a very, very suboptimal process; it

creates a lot of problems. You need to think about your performanceprocess. I'm going to give you some guidelines, and some research onwhat's going on.

S4 74:21 If you look at the next chart, what we really have found in thePerformance Management world is there's two philosophies. Thisreally is a philosophy you have to talk with your CEO about. Are wean up or out company? Are we an organization that is happy tojettison the people we don't like, on a regular basis, and have a lot ofrugged competition amongst the high performers, for the top jobs? Dowe like that? Is that the way we want to operate? Is that the kind ofculture we want to have? Or are we the type of organization that says,"We're going to be a tough place to get into, but when you get herewe're going to do everything in our power to make you successful.We're going to give you support, we're going to coach you, we'regoing to give you development and if you're not being successful,we'll help you improve your performance." Now it turns out, eight toten years ago, 60% to 70% of the companies we talked to were in thefirst model, and the rest were in the second. Today, 70% of thecompanies are in the second model, and the reason for that is thatwe've changed in the business world what the problems are and howwe're developing people and the fact that we need more skills in theworkforce regardless of how high somebody's performing. And infact, company after company is beginning to realize that thetraditional model of annual ratings, perhaps a forced ranking, a forced

distribution is hurting their performance, hurting their engagement,forcing good people to leave, forcing moderate level performers toleave and making it very difficult for managers to develop a coachingand peer relationship with their employees.

S4 76:06 The market is moving from annual appraisal to continuous feedbackand coaching, towards a much more dynamic environment. Thinkabout it, if you had a goal in January of a year ago and it's Novemberof this year, which it happens to be right now, is that goal really stillrelevant? Probably only a part of it is, a lot of things have changed in11 months. We actually found through our research that thecompanies that revisit goals quarterly are getting 30% to 40% higher

return out of this process than the companies who are doing itannually. We need to open the process up so that feedback comesfrom others besides the manager. A lot of times in organizations todaybecause of the issues I mentioned earlier, your manager may be inanother state, another city, another country. You may not see yourmanager more than once every couple of weeks. They may not evenknow what you're doing on a daily basis. You're working in a team ofother people, maybe in a work with an agile work team or a project.They're the ones that really know what you're doing on a daily basis.We need to move towards development as one of the core parts of the



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relationship between an employee and a manager. If you know thatyour manager is constantly judging you, and all they're going to do isassess you, you're not going to have a great relationship with thatperson. But if you believe that person's job is to make you moresuccessful, and to help you contribute to the organization, you're

going to have a much more highly engaged feeling about working inthat company. That's really where this is going.

S4 77:38 The other issue that is really coming to play in the performancemanagement process is companies tell us that it's taking too muchtime. We've now worked with several dozen companies and looked atthis, and on average, managers are spending 10 to 20 hours peremployee, per year just on the end of year appraisal. They're findingthat - and you'll probably find this - that if you asked managers andemployees the value of the end of your appraisal, many of them willsay, "It is of no value at all," and, "Not helping me do my job, nothelping me more effective and not necessarily making more happyabout working here." If you really look at how do we driveperformance, because that was the whole idea of it - the whole idea ofperformance management was to improve performance - it reallyrevolves around other things. It revolves around flexible work teams.It revolves around giving people data to make rapid decisions. It mayinvolve holding people accountable and making them aware of whatthey're held accountable for and working in a group of people that isperforming at a high-level and creates a culture of high performance.It also involves eliminating overhead and wasted time on things thataren't really effective in your overall goals. All of the research we'vedone on what makes agile high performing organizations;performance management rarely contributes to that. Let me give youan example of one organization who's looked at this carefully. Adobe,

who you all probably have heard of, is a long-term hi-tech companyin Silicon Valley. They are a software company. They compete withsome of the most successful software companies in Silicon Valley forengineers. They used, in the past, a traditional performancemanagement process. You can see in this chart the feedback they gotfrom their employees about it. Typically, very similar to the feedbackthat most companies get from their performance process. It isn'tcontributing to engagement. It isn't necessarily making people happy.It isn't necessarily improving performance. They decided to change it.What Adobe did, which is what many companies are now doing, isthey revised the process, did away with the annual number. There isno number at the end of the year. You don't have a number. You get

quarterly check-in feedback from your manager on a predictablebasis. The manager is expected and still required to do this on aquarterly basis, but they're not forced, or ranked, or rated by anumeric number, and there is no end-of-year report card. Rather, youget these quarterly check-ins every three months.

S4 80:39 The first question that comes to your mind and what everybodyimmediately says is, "Well, if we do that, we don't have any way offiguring out how to pay people." That's absolutely not true. In everycompany we've talked to, the key here is to unlink this one



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performance appraisal number from the compensation decision. Letme show you this picture. Here's a great example. This is anotherorganization that looked at all of the practices - let's go back to theprior one - at all of the practices that are associated with performancemanagement. Traditionally in HR, for some reason and I don't know

where this all came from, we took the performance appraisal processand we made it the linchpin of everything. What training you got,what comp you got, what kind of development planning you got, yourhigh-po capabilities, your potential to grow into leadership and soforth, all came from that number. That number is used many times formany things. Of course, that's not necessarily a good idea. What thesecompanies are finding-- What you need to think about is, some of thethings that you're using performance management for are probablyseparate processes.

S4 81:53 What this particular organization did, Kelly Services - who has alsobeen very effective at re-engineering this process - is they unlinkedthese things in the blue. They said, "What we're going to do in ourperformance management process is we're going to focus onperformance. We're going to focus on coaching, we're going to focuson discussions about work that you did, things that you could dobetter, developmental opportunities that you have, people that youneed to spend more time with. Things that really coach you intoimproving your performance. Then we're going to have a separateprocess for compensation. Yes, we're going to have input from theperformance process in the compensation. But think about it. Ideallyin a compensation review, we're going to look at a lot of other things.Are you in a job that's hard to replace? Are you in a market or aposition or a skill set that's increasing in value? If you're, for example,in an oil company or an exploration and production engineer, and

there's fewer of them coming out of college every year, you mightneed a raise even if your performance hasn't gone up this year. Areyou in a customer facing position where it would be very expensive toreplace you? Even though there might be somebody better for yourjob, losing you could be very expensive for this company?" There's allsorts of factors in the compensation decision that are not relateddirectly to this one number. That's what is really happening, is, weneed to rethink what compensation and all these other practices andhow they work, and unlink them a bit from the performancemanagement process.

S4 83:27 I have lots of research on that topic, and I encourage you to look on

our web site for some more.

S4 83:33 The third topic I want to talk a little bit about, the next topic isdemographics. Many of you probably work for big companies. Someof you work for more traditional older companies. All the data showsno matter where you are in the world, particularly in the fast growingeconomies, like in Asia, people in their 20s and 30s are now in theworkforce, they're ready to take on management and seniorresponsibilities, they are going to be running our organizations overthe next ten to twenty years, and do we have the right culture andprograms to attract and retain young people? Most of the research



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shows that millennials - or people in their twenties and early thirties -are at a much higher rate of turnover than people that are at moresenior levels and more senior ages. Part of that is that they're youngerin their careers, and at that age most of us really don't know what wewant to do in our careers. Of course, we're going to look around, and

we might decide to change jobs just to try something different. Wealso know that millennials actually have many of the same values asthe rest of us. There has been a lot of research done by organizationson the differences between millennials, and I'll show you what ourresearch has shown. In reality, I think they're more alike thaneverybody else was when they were that age than you might think.This research shows that one of the big differences between youngerworkers and more senior workers in most companies is simply theiradoption of technology. People in their 20s and 30s who grew up withinstant messaging, text messaging, Facebook, Google, tools likeLinkedIn and in fact, I've had companies say to me that young peopledon't even like to use e-mail. They would prefer to communicate on

another mechanism; they would prefer to do text messaging tocommunicate with other workers. They're more alike than you think.

S4 85:31 If you look at the next chart, look a little bit at some of the otherenvironments that have changed. Young people that are in theworkforce have grown up in families where their mother more likelyworked. They didn't grow up in single income families like maybe wedid. They are growing into organizations that are flatter so the numberof upward moving positions is a little bit less, so they're going to lookfor more opportunities to move from assignment to assignment, notnecessarily to be promoted if possible. They are working forcompanies that are more focused on service and IP, less focused onmanual labor for the most part, although there's plenty of those jobs

out there too. They are willing to work more hours. They're willing totravel. They're willing to do things that some of us that are a little bitolder may say, "Well, we've been through that, we may not want to doit anymore." They're at the stage of their career where they will. Theseare really the things you have to be sensitive to when you're attractingyounger people into your organization, when you're transitioning to amore youthful organization, and when you're trying to build newteams of younger organizations, of younger people. Next slide.

S4 86:47 One of the things that's maybe obvious, but you may not have thoughtabout, is that millennials grew up in a world of informationtransparency. My children, or my daughter at least, is very

comfortable posting information on Facebook. Most of your children,if you're my age, probably are. They don't mind putting personalinformation online. You as a business may not feel comfortable aboutthat. You may be in a regulated environment, maybe you're a financialservices company. Everything that you put on your web site isdiscoverable by financial agencies. You may be in a situation whereyou do not have a culture of personal information sharing, but theseare people that grew up with that. In order to engage young people,we need to be transparent, and there's lots of things you can do tofacilitate that. Your CEO, your head of HR, your senior managers can



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communicate openly about what's going on with the company, withthem, where they're spending their time, things that are important tothem. You can create a company blog, you can do employeecommunications, you can give employees a place to communicateonline. Those are things that really millennials find important,

valuable, and actually very engaging when they come to work.

S4 88:11 This is some interesting data that we just captured from some researchwe did around the world, largely focused in Asia Pacific and India.What you can see - and this was several thousand respondents - that inthis particular study, the younger employees were different in somerespects. They were very focused on career growth. They were willingto tolerate and they wanted more short-term assignments. They don'tnecessarily want to be in a job for two years. They might want to be ina job for a year or two but they like to change assignments. They'reokay working in an environment where the job description is lessclear. They're okay working in a job where they kind of things don'talways seem the same day after day. They do care about having agood manager. They want to work from home. That's fine with them.I remember when I entered the workforce in the late 1970s or theearly 80s, you couldn't work from home. There were no homecomputers; there wasn't even voicemail. You couldn't even get yourmessages at home. These days everybody is fine with that. They wanttheir vacation, they want to be rewarded, they want to make goodmoney just as anybody else does and they want good careeropportunities. These are, to me, these are not radically different needsof young people earlier in their careers that we had.

S4 89:42 If you're trying to transition your workforce to a younger workforce,which many organizations are, you need to set up an environment that

allows these things to take place. What does that mean? It reallymeans four things. It really means you have to create loyalty amongstyoung people, give them opportunities to achieve, show them trust,empower them to operate independently, and let them get approvalfrom you, their managers and from the outside world.

S4 90:18 I would say the four things we've learned over our experience andresearch as companies move younger people into their workforce isnumber one, dismantle the vertical corporate ladder. At Deloitte wecall this The Corporate Lattice. It's essentially a model thatencourages people to move from role to role all the time. Notnecessarily being promoted, but changing jobs horizontally into adifferent function, into a different assignment. Number two, providechallenge recognition and learning. Young people, perhaps more thananybody in the workforce, really want to feel that they're learning.They want to know that they're getting some positive feedback. Theywant to feel that they're working on important projects. Give themmeaningful things to do and they will achieve incredible things.Embed purpose and meaning in work.

S4 91:11 We talked a little bit earlier in this session about the employmentbrand and how important a corporate purpose or meaning is toemployment brand. I'll show you a little bit on this in a minute. But,



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more and more as companies become globalized and they do businessin geographies around the world where the economies are verydisparate in their strengths, the meaning of the organization has moreimportance than ever and it certainly does to young people. Many ofwhom came out of work and looked for jobs during a terrible

recession and couldn't find a job and sometimes took internships orworked part-time and are looking for organizations they can be proudof. Of course, the other factor in that is the fact that, in today's socialnetworking environment, a younger employee who goes to work foryour company, it's obvious to all of his or her friends where they wentto work, and so they want to be proud of that too. There's a wholesocial angle to that as well. Which really leads me to the next topic,which is retention and engagement.

S4 92:16 I would say three years ago, this wasn't really an issue on the minds ofmost companies, but these days it's becoming pretty important. As theeconomy picks up and there's more jobs available - and in the UnitedStates, we have a much more available and affordable health careprogram, so we aren't tied to our employers because of health care theway we used to be - there is going to be much more of a crisis onengaging and retaining the people we have. I hear this all the timenow when I go out and I talk to heads of HR, "But how do you dothis? What do you do with it?"

S4 92:50 The first thing I think you need to think about is that engagement is asomewhat old fashioned term in the HR community, and it reallyrefers to a backwards looking survey that tries to assess whethersomebody is happy or not and why they may or may not be happy intheir job or at your company. That's great. We need to collect thatinformation. What do you do with that information when you get it?

What we've found, as I go out and talk to more companies about this,is that engagement is really created by a whole variety of things.There's really a tapestry of work environment factors that createengagement.

S4 93:32 One is, of course, your manager, and that's always the most important.You can't underestimate the importance of leadership development,coaching managers, promoting great people into managementpositions, making sure you value coaching as a manager thatmanagers are very clearly told that part of their job is to take care ofpeople and promote people, not just to get work done. Those are allsort of fundamental principles here. But in addition to that, diversityand inclusion. If you don't feel included at work, if you don't go towork and find other people that look and sort of act like you, if youdon't feel that people listen to you at work, you're probably not goingto stick around. I've been in companies that, for some reason, I didn'tfeel I belonged and those are companies that I was not unhappy aboutleaving.

S4 94:21 The work environment. If you have children at home, aged parents athome, obligations at home, were working at night, were working onweekends and you need to go home and work at home, that should beokay. That's a factor of engagement. Gender - is your organization



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dealing with the influx of women into the workforce? Sixty percent ofthe US workforce is women. I think it's greater than that every year; itkeeps going up. If your organization is gender neutral at the bottom,but all male at the top, that has an impact. All these issues of diversityand inclusion are really impacting engagement of organizations.

S4 95:01 Work-life balance. We've been doing some research on the workenvironment of companies and we've come to the conclusion that inmany companies we basically have what we're calling OverwhelmedEmployees. Too many e-mails, too many phone calls, too manyconference calls, too many messages, too much to do too often, nobreaks. A lot of young people, a lot of people enjoy that, and if that'syour culture and it's clear and people sign up for it, great. But, mostcompanies don't realize how much work-life balance has beensacrificed in their own company and what to do about it. There is alsothis fear of missing out problem that people have, I don't know ifyou've ever heard the term FOMO. I think it's a teenage term, calledFear Of Missing Out. And that with all the electronic communicationswe have in our organizations, too much communication creates anenvironment of people wanting to be involved in too many things, andmanagers and you in HR have to find ways to simplify the workenvironment and make it easier to get things done.

S4 96:10 Allowing people to work part-time is another critical issue. There aregoing to be times in people's careers, times in people's daily life whenthey simply cannot work part-time, and if you accommodate that theywill be much more committed to your organization. And then ofcourse, making available great technology, making available tools,making available an office environment that's comfortable for people,those are important factors as well. All these things come together to

create an engaged workplace.

S4 97:47 Let's talk, for a minute, about engagement in the context ofmotivation. Many of our organizational principles that we come atfrom HR do come from the early 1900s, and when people went towork to make a living. That's still obviously true and it will be trueforever, but there really is some incredibly interesting research onother forms of motivation which are just as great, if not greater.

S4 98:15 First, I want to talk about meaning. Daniel Pink, of course, most ofyou have probably heard of him, describes what motivates high-valuework in organizations. What he found is that autonomy, mastery,purpose are just as important in almost every job as money. Over and

over again you see this in organizations, and more and more researchis coming out that's showing that the meaningfulness of your workand the meaningfulness of your organization is as important as moneyin most jobs. Not every job, there are certainly some roles that aremeasured entirely by money, but that's fewer and fewer every year.

S4 99:00 The second issue - let's go to the next slide - is this issue of yourfirm's meaning in the bigger market. I mentioned very early on in thissession about the importance of creating purpose in your employmentbrand. It turns out, research has been done, which shows thatcompanies that have a purpose and promote that purpose in a



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meaningful way outperform their peers. Both of these books are greatbooks to read. I particularly was moved by Conscious Capitalism. It'sa book that is about a year old by John Mackey, who's the CEO ofWhole Foods. He really describes how businesses are not just money-making machines. They're really parts of an ecosystem of employees,

stakeholders, suppliers, customers, all of whom are interdependentupon each other. If you just think about that in your business and youoptimize that entire system, not only will your employees be happier,but your company will actually be more profitable and make moremoney. I won't spend a lot of time on that now, but that's a majorfactor that's becoming more important every year, in employeeengagement.

S4 100:32 The third topic in engagement is the issue of recognition. This is apicture of Maslow's hierarchy of needs. Most of you have probablyseen that. It really shows our hierarchy of needs as human beings.Well, it turns out, is if you think about work, the bottom two - let's goto the next build there - compensation and benefits, more or less fitsinto the needs for survival and safety. "Do I have enough money toput my kids through college? Can I pay my mortgage? Can I buyhealth insurance? Am I going to be able to buy food?" Those arereally fundamental needs. Once they're satisfied, they're lessimportant. As we move up the hierarchy of needs, we look at thingslike belonging. "When I go to work, do I feel like I belong there? Do Ilike the people? Do the people like me? Do they listen to me? Is therea sense of community there that I feel a part of? Am I respectedamongst the other people I work with? Is there a sense of recognitionthat takes place?" Of course, at the very top of the pyramid is, "Can Iimprove my state in life, as a part of this job? Is this job going to takeme some place where I want to go personally, or my career, or my

family wants to go personally?" As you see, as you up this pyramid,they're all non-financial things. They're all things that have to do withthe work environment, the management environment, the culture andthe way people interact with each other.

S4 102:04 One of the pieces of research we did, which is on the following slide,is about recognition. There's a funny thing that goes on in recognition.It turns out when you say, "Thank you" to somebody or you givesomebody a hug. You're creating endorphins and that person actuallyfeels physically better, physically, not just mentally or emotionally.They physically feel better. They have more stamina. They tend to behappier and they will then as a result, work harder and provide better

customer service. That whole environment can be created in aworkplace through recognition. We've all worked in companies, mostof us have worked in companies where we had managers that neverthanked us for what we did, and we had managers or organizationsthat did thanked us for what we did. It turns out that the researchshows, that the research we've done is that high-recognition cultures,companies that have patterns, tools, behaviors, cultures of recognition- and I'm not talking about money here; I'm talking about simplysaying, "Thank you," and appreciating what people do - have a 31%lower voluntary turnover rate. There's something you can do in your



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company to have a huge impact on your financial performance foralmost no cost. Just think about where recognition is taking place, isrecognition taking place, do you have tools for recognition, and canyou improve this in your organization. I think this is something that'sgoing to become even more important over the next couple of years as

the labor market gets tighter.

S4 104:00 All right. Let's talk about one of my favorite topics, learning, orlearning and development depending on where you're sitting. We'vereally reached a stage, and I've been in the learning industry for about15 years, and we've gone through a focus on e-learning, and onlinelearning, and then continuous and informal learning, and blendedlearning. I think we're in a point in time in the corporate learningindustry where the essence of what we need to do is create acontinuous learning environment, and that's really the way we look atit, is your job as a learning and development or HR professional is tocreate an environment where learning is taking place all the time, notonly when you're there.

S4 104:43 This chart is particularly interesting. This is a chart that went to linemanagers, and we asked them, "How do people learn in yourcompany?" Sure enough, the number one thing they cite is on the jobexperience. The number two thing they cite is assignments, projects,on the job mentoring. Number three is coaching by their boss. Onlyone only one out of four even mentioned formal company training. Ifyou think that your formal training is creating learning in yourorganization, you are wrong. You're at most touching a quarter of thetraining and learning that has to go on and in reality, probably evenless than that. That's not to say that formal learning is

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