Emerging Health Leaders Presentation A viewpoint on Talent...4 Emerging Health Leaders Presentation Talent Management refers to the activities, processes, and infrastructure related

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

Emerging Health Leaders Presentation1


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


Talent: What is it All About?



A comprehensive view of Talent Management


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


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...?


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


Market Insights & Implications



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



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



Question: Out of the 11 business priorities listed below, where do you think managing talent lies on the leadership agenda?


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?


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


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


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



What could push employees to join the resume tsunami today?

Source: Managing talent in a turbulent economy: Keeping your team intact, September 2009, Deloitte.



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

http://www.flickr.com/photos/jonathangayman/953747852/


Question: By show of hands, which employee grouping do you think is the most likely to voluntarily leave their current job?


Generation Y(under age 30)

Generation X (ages 30 - 44)

Baby Boomers(ages 45 - 64)

Veterans(ages 65 and over)


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 . . .



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

16

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



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



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



Using Strategy to Manage Talent



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?



A Talent strategy...

• ...provides a foundation for the organization to attract, retain, and develop talent and

future leaders within their organization


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


What got you here… likely won’t get you there


• 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.


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?



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.



Additional Information



Deloitte’s Talent research


• 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.


The ‘Chemistry’ of Talent: Deloitte’s Periodic Table of Talent


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

Documents

Emerging Health Leaders Presentation A viewpoint on Talent...4 Emerging Health Leaders Presentation Talent Management refers to the activities, processes, and infrastructure related