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Total Talent Management is Key for HR LeadershipMarch 1st, 2012
www.allegisgroupservices.com
Introduction
Ronald Kreugel – Director, Business Development
Maria Boyse – Executive Director, Human Capital Solutions
About Allegis Group Services:
• World’s 4th largest provider of Staffing and HR services• Leading provider of global Human Capital Solutions• Specialists in Managed Services, RPO and HR Consulting
www.allegisgroupservices.com
Agenda
1. Global Business Trends• Implications on People Management• Changing Role of HR
2. Total Talent Management• Key Elements of Talent Management• Workforce Trends
3. Contingent Workforce Management• Added Value of Contingent Workers• Maturity Model
4. Conclusion & Summary
www.allegisgroupservices.com
Global Business Trends
GLOBALISATION
DEMOGRAPHICS
TECHNOLOGY
www.allegisgroupservices.com
Global Business TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY
• Economic Crisis• Consumer Confidence• Cost Reductions - Lay offs• Merger & Acquisitions
• New Generation(s)• Immigrations• Work-Life Balance• Social Responsibility
• Communication• Knowledge• Company Policy • Access to Talent
www.allegisgroupservices.com
Global Business TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY
• Economic Crisis• Consumer Confidence• Cost Reductions - Lay offs• Merger & Acquisitions
• New generation(s)• Immigrations• Work-life balance• Social Responsibility
• Communication• Knowledge• Company Policy • Access to Talent
‘Usual ‘ Business Pressure• Active Cost Management• Productivity – Knowledge Workers• Global Talent Competition• Cultural Alignment with Business
‘Crisis‘ Pressure• Employee Engagement• Employer Brand (Lay-offs)• Continuous Change – Different Skills• More Pressure to Reduce Human Cost
www.allegisgroupservices.com
What Does Your Company Do?
GLOBALISATION DEMOGRAPHICS TECHNOLOGY
Traditional Thinking
Transformation Thinking
www.allegisgroupservices.com
GLOBALISATION DEMOGRAPHICS TECHNOLOGY
Traditional Thinking
Transformation Thinking
Maximize cost savings Freeze innovations Reduce headcount where possible Increase sales without more expenses
What Does Your Company Do?
www.allegisgroupservices.com
Maximize cost savings Freeze innovations Reduce headcount where possible Increase sales without more expenses
New operating model Driving innovations
New talent acquisition New governance model and organisation
CHANGE IS THE ONLY CONSTANT!
GLOBALISATION DEMOGRAPHICS TECHNOLOGY
Traditional Thinking
Transformation Thinking
What Does Your Company Do?
www.allegisgroupservices.com
Changing Role of HR
www.allegisgroupservices.com
Changing Role of HR
www.allegisgroupservices.com
Changing Role of HR
www.allegisgroupservices.com
Agenda
1. Global Business Trends• Implications on people management• Changing role of HR
2. Total Talent Management• Key Elements of Talent Management• Workforce Trends
3. Contingent Workforce Management• Added Value of Contingent Workers• Maturity Model
4. Conclusion & Summary
www.allegisgroupservices.com
What is Talent Management?
Definition of Talent Management:
The capability and skills to attract, develop, retain
and obtain the maximum performance of the most
critical and decisive professionals for a
company by means of differentiated
management practicesto meet current and
future business objectives
Attract
Hire
DevelopTrain
Retain
Key Elements of Talent Management
Strategic WorkforcePlanning
Total TalentAcquisition
EmployeeDevelopment
PerformanceManagement
SuccessionPlanning
What are the goals of the organisation and the objectives you expect your people to deliver? Do you have the people to accomplish this?
Where and how will you get the talent to fill the gaps you identified in planning?
How do you train and prepare your people so they will be successful?
Are your people successful and are they accomplishing the goals you set for them?
Do you have a plan for key people and roles?
www.allegisgroupservices.com
Key Elements of Talent Management
• Determine desired end results
• Cascade the goal down to departments
• Requires accomplishments of key tasks by people
• Plan workforce and identify needs , availability and possible gaps
Strategic WorkforcePlanning
Total Talent
Acquisition
EmployeeDevelopm
ent
Performance
Management
SuccessionPlanning
www.allegisgroupservices.com
Key Elements of Talent Management
• Identify needs and gaps based on workforce planning
• Comprehensive perspective (include anyone doing work!)
• Combine strategy, planning, sourcing, leverage talent pools
• Acquire talent when needed, but ensure success!
Strategic WorkforcePlanning
Total Talent
Acquisition
EmployeeDevelopm
ent
Performance
Management
SuccessionPlanning
www.allegisgroupservices.com
Key Elements of Talent Management
• Understanding each person’s ability and core competencies
• Create personal profiles and gather information
• On-boarding talent = getting talent productive!
• Ensure that people know what is expected from them…
Strategic WorkforcePlanning
Total Talent
Acquisition
EmployeeDevelopm
ent
Performance
Management
SuccessionPlanning
www.allegisgroupservices.com
Key Elements of Talent Management
• Linking employee development and goals to performance
• Ensuring organisational goals are met
• Meaningful communication = promotes retention and engagement
• Adopt and use technology to make it easier for managers
Strategic WorkforcePlanning
Total Talent
Acquisition
EmployeeDevelopm
ent
Performance
Management
SuccessionPlanning
www.allegisgroupservices.com
Key Elements of Talent Management
• Pro-actively prepare for next wave of talent to fulfill key positions
• Avoid informal process and ‘gut feeling’
• Develop a plan to manage key people and key positions
• Remove obstacles and commitment from C-level (culture!)
Strategic WorkforcePlanning
Total Talent
Acquisition
EmployeeDevelopm
ent
Performance
Management
SuccessionPlanning
www.allegisgroupservices.com
Workforce TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY
• Uncertain Economy • Risk Management • Workforce Planning• Cost Management
www.allegisgroupservices.com
Workforce TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY
• Uncertain Economy • Risk Management • Workforce Planning• Cost Management
• New Generations with Different Engagement
• Social Responsibility and Sustainability
• Instant Gratification and Work-Life Balance
www.allegisgroupservices.com
Workforce Trends
• Talent Acquisition and Sourcing Channels
• Social Media and Mobile Technology
• Employer Branding
• New Generations with different engagement
• Social Responsibility and Sustainability
• Instant gratification and Work-Life Balance
GLOBALISATION DEMOGRAPHICS TECHNOLOGY
• Uncertain Economy • Risk Management • Workforce Planning• Cost Management
• Talent Acquisition and Sourcing Channels
• Social Media and Mobile Technology
• Employer Branding
• New Generations with different engagement
• Social Responsibility and Sustainability
• Instant gratification and Work-Life Balance
www.allegisgroupservices.com
Workforce TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY
• Uncertain Economy • Risk Management • Workforce Planning• Cost Management
• Usage of Contingent Labour
• Agile Recruitment Teams
• Outsourcing Non-Core Activities
• Talent Acquisition and Sourcing Channels
• Social Media and Mobile Technology
• Employer Branding
• New Generations with different engagement
• Social Responsibility and Sustainability
• Instant gratification and Work-Life Balance
www.allegisgroupservices.com
Agenda
1. Global Business Trends• Implications on People Management• Changing Role of HR
2. Total Talent Management• Key Elements of Talent Management• Workforce Trends
3. Contingent Workforce Management• Added Value of Contingent Workers• Maturity Model
4. Conclusion & Summary
www.allegisgroupservices.com
Contingent Workforce (CW) Trends
8% *
Light Industrial
ContingentPerm Employees
25% *
Information Technology
ContingentPerm Employees
18% *
Financial Services
ContingentPerm Employees
30% *
Automotive
ContingentPerm Employees
* indicative percentages based on AGS estimations in 2010
www.allegisgroupservices.com
Types of Contingent Workers
Temporary / AgencyWorkers
ProfessionalWorkers
Projects Statement of
Work
Graduates / Interns
Independent Contractors
Free-Lancers
ContingentWorkers
PermanentEmployees
www.allegisgroupservices.com
Contingent Workforce Characteristics
ContingentWorkers
PermanentEmployees
Temporary / Agency
Workers
ProfessionalWorkers
Projects / Statement of Work
Independent Contractors / Free-
lancers
Graduates / Interns
• Light industrial• Admin clerical• Support roles• Call centre(s)
• Engineers• Project Mngrs• Technicians• IT Specialists
• Deliverables• Time & Materials• Fixed price
• Special Projects• Specific Skills• Relationship
• Campaigns• Programmes• Future Talent
www.allegisgroupservices.com
Contingent Workforce Characteristics
ContingentWorkers
PermanentEmployees
Temporary / Agency
Workers
ProfessionalWorkers
Projects / Statement of Work
Independent Contractors / Free-lancers
Graduates / Interns
• Light industrial• Admin clerical• Support roles• Call centre(s)
• Engineers• Project Mgs• Technicians• IT Specialists
• Deliverables• Time & Materials• Fixed price
• Special projects• Specific skills• Relationship
• Campaigns• Programmes• Future talent
• Volatile• Short-term• Generic profiles• Few suppliers
• Less volatile• Mid-long term• Diversity• Many suppliers
• Defined projects• RFx process• Preferred suppliers
• Less volatile• No formal RFX process• Ex-employees
• Fixed period• Administration• College/University• Employer branding
www.allegisgroupservices.com
Contingent Workforce Acquisition
ContingentWorkers
PermanentEmployees
Temporary / Agency
Workers
ProfessionalWorkers
Projects / Statement of Work
Independent Contractors / Free-lancers
Graduates / Interns
• Light industrial• Admin clerical• Support roles• Call centre(s)
• Engineers• Project Mngs• Technicians• IT Specialists
• Deliverables• Time & Materials• Fixed price
• Special projects• Specific skills• Relationship
• Campaigns• Programmes• Future talent
• Volatile• Short-term• Generic profiles• Few suppliers
• Less volatile• Mid-long term• Diversity• Many suppliers
• Defined projects• RFx process• Preferred suppliers
• Less volatile• No formal RFX process• Ex-employees
• Fixed period• Administration• College/university• Employer branding
www.allegisgroupservices.com
CW Maturity Model
I II III IV V
DECENTRALIZED
MASTER VENDOR
CLIENT MANAGEDPREFERRED
SUPPLIERPROGRAM
MANAGED SERVICE PROVIDER (MSP)
TOTAL TALENT ACQUISTION
MANAGEMENT
LOW
HIGH
MATURITY OF THE MARKET
GLOBAL CONTROL OF MSP or TTAM
VI
LEVE
L O
F C
OM
PLEX
ITY
Several suppliers Procurement done on
an ad-hoc basis Management done
internally
One supplier (possibly managing second and third tier suppliers)
One point of contact Direct cost savings on
bill rate and Volume Customized SLAs and
process
Client resources tactically engaged
Selective set of suppliers selected
Contracts in place SLAs in place May or may not involve
automation
Managing all contract workforce spend
One point of contact for suppliers and contractors and hiring managers
Direct cost savings on bill rate and usage
Integrated e tool for total process
SLAs & customized process
Total cost of ownership savings
Total workforce spend under management
Complete workforce visibility
Direct cost savings on bill rate and SOWs
Customized SLAs and process
Non-compliant spend elimination
Increased total cost of ownership savings
Additional productivity and process savings
High degree of value added services
Global spend centralized and controlled
Global workforce visibility
Customized SLAs and process
Global supply community
Increased total cost of ownership savings
Integrated e tool for total process visibility
Additional productivity and process savings
High degree of value added services
Ability to plan best mix of resource types
www.allegisgroupservices.com
Value Add of a CW PartnerContingent
Workers
PermanentEmployees
Temporary / Agency
Workers
ProfessionalWorkers
Projects / Statement of Work
Independent Contractors / Free-lancers
Graduates / Interns
• Light industrial• Admin clerical• Support roles• Call centre(s)
• Engineers• Project Mngs• Technicians• IT Specialists
• Deliverables• Time & Materials• Fixed price
• Special projects• Specific skills• Relationship
• Campaigns• Programmes• Future talent
• Single point of contact• Accountability• Transparency and visibility• Supporting technology platform
• Expertise in labour legislation• Market knowledge • Experienced in talent sourcing• Supply chain management
QUALITY CONTROL
• On-/off-boarding• Extensive reporting (headcount)• Tenure management• Consulting on CW hiring type(s)
COMPLIANCE
www.allegisgroupservices.com
Best-in-class CW Programmes
SOLUTION:• Standard policies and processes for CW Management• Build global dashboard for enhanced control and reporting• Deploy universal Vendor Management Software (VMS)• Contractor Compliance Screening process
QUICK FACTS:• Started mid 2009• Delivery teams on-/off-site on 3 continents• Full suite of Managed Services
RESULTS:• Visibility over contingent workforce• Higher quality supply base and talent pools• Stronger focus on required key skill sets• Manage risks (co-employment)• Cost avoidance and efficiency
www.allegisgroupservices.com
Agenda
1. Global Business Trends• Implications on People Management• Changing Role of HR
2. Total Talent Management• Key Elements of Talent Management• Workforce Trends
3. Contingent Workforce Management• Added Value of Contingent Workers• Maturity Model
4. Conclusion & Summary
www.allegisgroupservices.com
Summary & Conclusion
1. Global business trends are forcing enterprises to improve talent management• Ageing workforce• Competing for talent• Transformation to new governance and organisation structures
2. Total talent management strategy can accelerate business objectives• Attracting right talent• Improved retention• High employee engagement
3. Strategic importance of contingent workforce• Increase capacity and capability• Holistic labour procurement system• Involvement of HR in contingent workforce strategy
www.allegisgroupservices.com
Tips for Total Talent Management
• Prioritize revenue-generating business units, jobs, and employees
• Retain revenue producers
• Create a fast-reaction team
• Proactive internal movement
• Contingent workers and vendors must be included
• On-boarding
www.allegisgroupservices.com
Questions & Answers
Let us answer your questions!
www.allegisgroupservices.com
Final ThoughtsUnderstanding the five key components of a “revenue focused” HR strategy.
1. Collaboration with the CFO —the first component is that HR leadership must work directly with the CFO’s office (who is the undisputed “king” of measuring revenue).
2. Make it a HR goal — the second component of the strategy is goal setting by making “impacting revenue” a major HR and talent management goal.
3. Prioritization — the third component is prioritization. If you start with the assumption that there will be no additional budget at least initially for this strategy, focus and concentrate your current HR budget and your best HR people on the business units, the jobs, and the employees that have the most impact on increasing revenue.
4. A process for identifying problems and barriers — the fourth component of the strategy involves identifying barriers to prohibit revenue from increasing.
5. Best-practice sharing – the final strategy component is best-practice identification and sharing.
www.allegisgroupservices.com
Thank you!Visit our website for more info: www.allegisgroupservices.com
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