Emerging Health Leaders Presentation
Presenter: Christie Jamieson
Human Capital Consulting
April 19, 2011
A viewpoint on Talent
© Deloitte & Touche LLP and affiliated entities.
Agenda
• Talent Strategies at Deloitte
• Video: Introduction to Talent Management
• Talent: What is it All About?
• Market Insight and Implications
• Using Strategy to Manage Talent
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Tax &
legal
Assurance&
advisoryConsulting
TechnologyStrategy &
operations
Financial
advisory
Private company services
ERS
Organizational design
Provides organizational design advisory services to align organizational
structures to the company’s strategic direction and business processes
• Operating structures
• Reporting relationships
• Roles/responsibilities
• Governance structures
• Competencies and metrics
Transformational change
Enables clients to implement large scale transformations by focusing on the
people dimension of transformation
• Transformational change & adoption
• Mergers & acquisitions
• Corporate change & restructuring
• Learning and development
• Communications
HR transformation
Provides HR strategy and service delivery solutions to help create business
value by aligning HR services with the company’s strategic direction
• HR strategy
• HR service delivery
• HR operations & process
• HR BPO advisory
• HR technology
Talent strategies
Helps organizations plan, acquire, develop, engage, and deploy the talent
of an organization
• Workforce planning
• Talent management
• Succession planning
• Performance analytics & management
• People sourcing
Deloitte Human Capital Consulting – Talent Strategies
Human
Capital
22 Emerging Health Leaders Presentation
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Talent: What is it All About?
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A comprehensive view of Talent Management
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Talent Management refers to the activities, processes, and infrastructure related to
developing, rewarding, and measuring the performance of employees
• The goal of Talent Management is to put the right people with the right skills in the
right roles in order to achieve business objectives
• Since organizations need to align their business strategies and their workforce
strategies to enable the achievement of business goals, talent management is a shared
responsibility between Human Resources (HR) and the business
Job Design
Recruiting
On-boarding &
Orientation
Performance
Management
Learning &
Development
Rewards
Career / Succession
Management
Talent Management Includes:
EVP/
Branding
4
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Question: What do you see as the top Talent issues/ challenges in your organization?
• Retention
• Workforce Planning & Intelligence
• Learning, Talent Development & Leadership
• Workforce Flexibility
• Virtual/Global Workplaces...?
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Talent Management Challenges:
Shifts in demographic and workforce preferences
Pressure to respond to the changing needs of an increasingly diverse workforce that cannot be
managed with a ―one size fits all‖ approach
Evolving techniques and supporting processes to address talent shortages
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Market Insights & Implications
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General Workforce Trends
Relevant Workforce Trends
Critical Workforce
Shortage
Changing Demographics Values and Expectations Changing Nature of Work
Global and Canadian
workforce trends
Globalization and
digitization of work
Managing a diverse and
changing workforce
globally and in Canada
Generational attributes
and workplace
adaptations
7
Global
• Dwindling pools of critical, local talent is
leading to global sourcing of talent —
fastest growing technology markets over
the next five years are China, India and
the Philippines
• Increased access to low cost labour
markets and sophistication of offshore
providers
North America
• Growth in the 55 to 64 year old age group
will account for about 70% of the net
increase in Canada's working age
population by 2010 and all of it by 20201
• From 2000-2020, minorities and
immigrants will account for the majority of
the projected net growth in the workforce2
• 44% of businesses in Canada already
reported having difficulty finding qualified
labour1
Cultural Trends
• Organizational complexity: As the
workforce diversifies and disperses—
adopting flexible schedules, telework, and
other technology-enabled
arrangements—leaders must find new
ways to cultivate and nourish
organizational culture and identity
• Mobility: More workers are willing to
change jobs. Opportunities to learn and
grow internally will become more
important
• Nonlinear careers: Internal development
and continuing education must take
workers' life stages into account
• Managing increasingly diverse /
multigenerational workforces requires
changes in leadership approach
7
Canadian organizations are challenged to keep pace with today’s complex and changing workforce
Emerging Health Leaders Presentation
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Talent issues are having a material impact on business
8
Source:
―Mind the Talent Gap– Global Executive Survey on IT Talent ‖ 2009, Deloitte.
• Talent issues are impacting quality, speed to market, customer relationships, and
growth
Emerging Health Leaders Presentation
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Question: Out of the 11 business priorities listed below, where do you think managing talent lies on the leadership agenda?
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Business Priorities
• Acquiring/ serving/ maintaining customers
• Capitalizing on M&A divestiture/ restructuring
• Cutting and managing costs
• Developing new products and services
• Expanding into global and new markets
• Improving top and bottom line performance
• Investing in innovation/ R&D
• Leveraging technology
• Managing Talent
• Responding to risk and regulation challenges
• Revenue growth
Top 3?
Middle range?
Bottom 3?
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Canadian companies are not focused on managing and retaining their talent
• While revenue growth tops the list, managing talent, despite being a
scarce resource and a key driver of organizational performance in
today’s economy, comes in last place
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Source:
―Mind the Talent Gap– Global Executive Survey on IT Talent ‖ 2009, Deloitte.
10 %
13 %
20 %
20 %
23 %
23 %
23 %
27 %
43 %
47 %
50 %
Managing Talent
Cutting & Managing Costs
Acquiring/serving/retaining customers
Capitalizing on M&A divestiture/restructuring
Leveraging technology
Investing in innovation/R&D
Responding to risk and regulation challenges
Improving top & bottom line performance
Developing new products and services
Expanding into global and new markets
Revenue Growth
Top Canadian business priorities – Next 3-5 years
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Nearly half of all surveyed employees globally are considering leaving their jobs
11
Academic research
indicates that
44% of employees are
likely to act on their
turnover intentions
Seeking/plan to seek new employment
49%Expect to stay with current employer
45%
Don’t know 6%
―Do you have plans to look for new employment?‖
Source:
1 Managing talent in a turbulent economy: Keeping your team intact, September 2009, Deloitte.
2 Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover: Update, moderator tests, and research implications for the next millennium. Journal of Management, 26, 463-488 .
2
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What could push employees to join the resume tsunami today?
Source: Managing talent in a turbulent economy: Keeping your team intact, September 2009, Deloitte.
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Gen-Y
under age 30
Gen-X
ages 30 - 44
Baby Boomers
ages 45 - 64
Veterans
ages 65 and over
Talent Market Trends - Differing Values and Expectations
―As a single parent,
I need the flexibility
to work from home.
It’s a deal breaker
for me.‖
The person in the
―cubicle‖ next to me
could be in
Bangalore. A
workplace that is
equipped for global
mobility means
everything.‖
―I’m loyal but I’ve
also worked too
hard throughout my
career. Sustain
and nurture my
talent and I’ll stay.
Waste my talent?
Sorry, I’ll have to
go.‖
―I’m just not ready
to retire and with
my experience, you
can’t afford to lose
me.‖
13 Emerging Health Leaders - Talent - 2011
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Question: By show of hands, which employee grouping do you think is the most likely to voluntarily leave their current job?
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Generation Y(under age 30)
Generation X (ages 30 - 44)
Baby Boomers(ages 45 - 64)
Veterans(ages 65 and over)
© Deloitte & Touche LLP and affiliated entities.
Source:
Managing talent in a turbulent economy: Keeping your team intact, September 2009, Deloitte.
24%
9%
9%
9%
39%
37%
16%
16%
7%
8%
21%
19%
1%
2%
3%
12%
Increase significantly
Increase
Decrease
Decrease significantly
Generation Y (under age 30)
Generation X (ages 30-44)
Baby Boomers (ages 45-64)
Veterans (over age 65)
Surveyed executives think they know which employees are most likely to leave . . .
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© Deloitte & Touche LLP and affiliated entities.
17 %
14 %
27 %
22 %
33 %
12 %
I plan to begin looking for new
employment within the next 12 months
I have been actively looking for new
employment during the past 12 months
Employees seeking new employment by generation
Gen Y (under 30) Gen X (30-44) Baby Boomers (45-64)
Gen Y
Gen X
Gen Y
Baby Boomers
Baby Boomers
Gen X
. . . But in reality they might not have a good handle on which employees they risk losing, and focus efforts on the wrong group
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Source:
1 Managing talent in a turbulent economy: Keeping your team intact, September 2009, Deloitte.
2 ―Today’s workforce: a compilation of four generations‖, Adecco
49% & 45%of Gen X of Gen Y
employees are already
looking or planning to look for
new employment1
Gen X and Gen Y comprise
51%of the workforce combined2
Emerging Health Leaders Presentation
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The cost of turnover is significant… and pervasive
1717
# of employees
Sources: Cost of turnover: ―Talent-based ROI – Ways to Improve Employee Impact to the Bottom-
Line.‖ Deloitte. 2008
Indirect costs: ―Where did our employees go?‖ Deloitte Review, Issue 5, 2009
FSI example constructed based on average of 2008 data for top Canadian banks
FSI turnover statistic: CFO Study, Mercer/CFO Magazine as quoted by Taleo Research
• Indirect costs are wide-reaching, and
include:
‒ Impact on customer relationships
‒ Knowledge drain
‒ Burden to employees who must take
on additional work
‒ Lost productivity as a result of low
morale
• Direct costs of turnover, including
separation and replacement costs, can
vary from 25% to 200% of the position’s
annual compensation60,000
The real cost: FSI example
Average annual
compensation $55,000
Average cost of
turnover 100%
FSI sector
voluntary
turnover rate14%
Cost of
voluntary
turnover$462M
Emerging Health Leaders Presentation
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Areas of increased focus on retention over the next 12 months
• Executives in Life Sciences/Health
Care (65%) planned to ramp up
recruiting of critical leaders this
year
• 60% of surveyed executives from
companies that foresee no
additional layoffs planned to
increase programs for developing
high-potential employees
Source:
Managing talent in a turbulent economy series: January 2010, Deloitte.
Examples of Key Retention Strategies
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Using Strategy to Manage Talent
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Question : How many Talent Strategies have you worked on?
• None
• At least 1
• Between 1 and 3
• More than 3
• What is a Talent Strategy?
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A Talent strategy...
• ...provides a foundation for the organization to attract, retain, and develop talent and
future leaders within their organization
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Differentiate & PlanAnalyse
Strategy
Align
Create a clear
line of sight between your
business and
talent strategies
Get a fact based
understanding of talent supply and
demand in the
external market and inside your
company
Assess options and
choose the mix of talent and work
solutions that will drive
competitive advantage
Identify critical
workforce segments
Determine
competency requirements
Conduct internal and external
assessment of
capabilities and supply
Conduct workforce
planning and
forecasting Identify and
analyse employee-based
feedback
mechanisms
Define workforce
analytics to drive talent and work solutions
Develop talent
roadmap: select solutions to implement
in line with business priorities
Assess influences of
generational differences
Develop metrics: business case and
short and long term
measures of success
Ensure that
talent and business
strategies are
integrated and aligned
Review Risk Management
Issues
Identify potential
linkages to HR strategy
Infrastructure
Solutions
Dif
fere
nti
ati
ng
Talent-basedImpact employee’s
ef fectiveness and
development
Work-basedImpact the what, when, where
and how of work
Co
re
Recruitment & StaffingOrientation & On-boarding
Performance Management
Learning & Development
Succession Management
Global Mobility
Social Networking
Virtual Workplace
Accelerated Development
Coached organisation
Global Sourcing
Knowledge & Collaborationorganisation Design
Work Design
Job Design
Talent DialogueRewards Transformation
Mass Career CustomisationEmployer Brand
Leadership, Technology, HR Service Delivery, Diversity & Inclusion, Change Management, Ethics & Responsibility, Communications, Culture
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What got you here… likely won’t get you there
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• Demographics and international competition for talent means it is more crucial
than ever to develop high potential talent and cultivate future leaders
• Workforce is more mobile and quicker to pursue new career opportunities –
essential to create more career options and opportunities internally to
leverage and retain talent
• Differences in generations regarding work expectations and retention
levers:
– Strong leadership desire for Baby Boomers and Veterans
– Greater job advancement and guidance for Gen X and Gen Y
– Engaging in ongoing dialogue with employees to understand what they
want
Forward-thinking talent executives are focusing on both the immediate horizon and
implementing strategies for the long term.
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Key questions for Talent 2020
• Have you identified your critical leaders and most critical talent?
• Do you know what your employees really want (are you asking them?) and are
you tailoring your strategies to address the generational and geographic
diversity of your workforce?
• Is your employer brand as clear to your employees as your product brand is to
your customers?
• Have you aligned your leadership development programs with your long-term
business goals?
• Are your talent processes and technologies designed to grow and scale with
your long-term business goals?
• Do you know the real impact of talent retention and voluntary turnover on your
bottom line?
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© Deloitte & Touche LLP and affiliated entities.
10 Talent Tips
1. Take advantage of the continuing globalization of talent and leadership markets.
2. Know your critical leaders and most critical talent. Keep your talent pipeline robust
enough to deliver those critical skills.
3. Prepare for a workforce that is more mobile and quicker to pursue new career
opportunities.
4. Tailor your strategies to address the generational and geographic diversity of
your workforce.
5. Show your employees both the money and the love. Communicate your employer
brand as clearly to employees as you communicate your product brand to
customers.
6. Know what it takes to stay ahead of your competitors in retaining critical talent,
developing new leaders, implementing workforce planning and driving innovation.
7. Create clear career paths for employees at all levels.
8. Align your leadership development programs with your long-term business goals.
9. Know the real impact of talent retention and voluntary turnover on your bottom
line.
10. Be a beneficiary — not a victim — of the resume tsunami.
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Additional Information
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Deloitte’s Talent research
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• Our Managing Talent in a Turbulent Economy research helps CHROs and
Senior Executives understand emerging talent issues and trends.
• We also conduct research with global business, HR and functional executives to better understand their critical people and business challenges.
© Deloitte & Touche LLP and affiliated entities.
The ‘Chemistry’ of Talent: Deloitte’s Periodic Table of Talent
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Catalysts
• Catalysts have special potential to accelerate
performance and can drive differentiation more
quickly than other solutions.
• Infrastructure elements should be regularly
upgraded with a focus on delivering the specific
solutions necessary to support the
organizational strategy.
Infrastructure
Strategy
• Strategy confirms that organizational needs are
driving the agenda, now and in the future.
Solutions
• Talent solutions impact employees’ effectiveness
and development.
• Work solutions impact the what, when, where
and how of work.
Source: The chemistry of talent: new ways to think about people and work: 2008, Deloitte.
• This tool facilitates exploration of the elements of strategy, solutions,
catalysts, and infrastructure that could be part of an organization’s overall
approach to talent management