EY Human Capital Conference 2012: Talent management challenges in today’s global markets

2012 Human Capital Conference23–26 October

Talent management challenges in today’s global

k tmarkets

Disclaimer

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► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP.

Talent management challenges in today’s global marketsPage 2

Presenters

► Bill Leisy ► Bill McClainy► Ernst & Young LLP► Global Market Leader, Talent

Management

► Bunge EMEA ► Vice President Human

ResourcesManagement► [email protected]

Resources ► [email protected]


Our discussion today

► Talent management: A point of viewg p► Global mobility: a strategic component of your global

talent managementg► Discussion around Ernst & Young’s 2012 global talent

management surveys: (rapid growth markets, talent management in high-performing organizations)

► Talent 2020: the next chapter► Questions and answers


Talent management is all about your people

The ability to execute business strategy is directly related to effectively attracting, retaining, developing and engaging your key talent. If done well, talent management creates a sustainable competitive advantage for businesses and a strong employer brand in theadvantage for businesses and a strong employer brand in the marketplace.


Talent management is all about your people

► A key business issue (Number three global business y ( gissue – Ernst & Young survey 2012; CEOs spend more than 70% of their time)

► Simply, the people issues in your organization – not just an HR issue

► A Point of view:► Alignment to business strategy

I t ti ithi b i ti► Integration within your business operation


Must be aligned to your business strategy and supported by HRand supported by HR

Talent management

Business strategy

g

HR programsHR programs

HR processesp ocessesand

service delivery

HR complianceand

governance


Helps execute your business strategy

Talent strategy/

Workforce analytics (internal and external) Performance metricsBusiness strategy

Employee life

cycle

Talent management

Global mobility

HR strategy

Company/HRoperating model

Company/HR p yorganization structure

20 5% 38.0%20.5%greater financial return when companies aligntheir business strategy

greater financial return when integrating key components of talent management programs and processes together and

and talent management

Talent management alignment and integration drives ROI.

throughout the organization


Highlights from our 2012 global talent management surveys: rapid growth marketsmanagement surveys: rapid growth markets

► 810 global executives:g► 53% C-suite (CEO, CFO, others)► 35 rapid growth markets; 21 industry groups► 44% more than US$1 billion revenues

► Four key talent management global challenges: ► Top management teams lack international experience.► The lack of an internal management pipeline forces companies to

recruit from rivals.recruit from rivals.► Companies are unable to effectively retain and reward high

performers.► C-suite leaders and operational managers hold conflicting views

on talent management.


Key talent management challenges

► Top teams lack international experience.p pFigure 1: International experience of top management team



► The lack of an internal management pipeline forces g p pcompanies to recruit from rivals.

Figure 2: Building an international management teamg g g



► Companies are unable to effectively retain and reward p yhigh performers.

Figure 3: Effective team managementFigure 3: Effective team management



► C-suite leaders and operational managers hold conflicting p g gviews on talent management.Figure 4: Building an international management teamg g g


Talent management in high-performing organizations (survey to be released December 2012)( y )

► Talent management characteristics in high-performing g g p gorganizations:► A greater investment in talent management focused on meeting

strategic and financial objectives (global mobility to leadership development)

► Unrelenting focus on developing and sustaining a strong ► U e e t g ocus o de e op g a d susta g a st o gleadership pipeline (succession planning No. 1 difference)

► Developing leaders early in their careers and getting them the key diverse international experiencesdiverse, international experiences

► Using the same talent management outcomes as all organizations to measure success (employee satisfaction, retention), however putting more emphasis on external employer brand

► Greater alignment of performance and paying for performance


Strategies and best practices in talent managementmanagement

►Define the capability framework, i l di j b f ili l fil

Best practice results:Identify the right

including job families, roles profiles, skills and competencies

►Estimate and forecast workforce requirements by skills and competencies

►Prioritize the critical skill sets and roles

►Develop the hiring strategy

► Strong ER brand

► Attraction and retention of the “right” employees

need

Optimize hiring ►Develop the hiring strategy►Articulate the employee value proposition►Evaluate skills and competencies►Develop on-boarding mechanisms that

enhance productivity

right employees

► Improved employee satisfaction and engagement

Optimize hiring and on-boarding

►Understand key levers for engagement at each location

►Track and respond to data►Personalize interventions based on

EVP

► Higher employee productivity

► Great HR efficiency

Engage to retain

►Develop total rewards that reflect the EVP, engagement plan, etc.

►Align total rewards strategy with labor cost model

► Improved HR effectiveness

► Financial returns

Develop and grow

►Leverage sub-functions across operations to develop skills and capabilities

►Link individual objectives to improvements in performance measures

► Best companies to work for/best employers

Reward broadly


How to get started

► Align and integrate talent management and global mobility objectives (work together)

► Review the effectiveness between talent management and global mobility (e.g., career development, succession planning, leadership development, performance management, workforce planning)

► Review how effectively you are in recruiting, retaining, developing, engaging top talent p

► Questions you need to be able to say yes to:► Do you know the jobs that need international experiences, the type of experiences

and how employees will get it?p y g► Is your leadership pipeline in critical positions three levels deep?► Can you measure meaningful outcomes from your talent management and global

mobility programs?► Have you aligned performance measures from the organization, region/division,

business units/functions and individual employees?► Have you created a strong employer brand that is consistent with your talent


management and employee life cycle commitments?

Talent management 2020

Business strategyBusiness strategy

Business strategy


Questions
