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Thought Leaders Webinar

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Revolutionizing the Future of Work

1750+ Customers3,000,000+ Users156 Countries60 Industries22 Languages700+ employees

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Change the World

successfactors.com/research/thought-leaders

We work with recognized thought leaders that share our vision of productivity improvement, all while creating a better place for people to work.

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EXECUTION = PERFORMANCE

Performance and Talent Management Are Pivotal to Drive Financial Performance

Motivation

Learning(Build)

Financial PerformanceGrowth Profit ShareholderReturn

Talent / Competenciesx Organizational

Abilityx

Company Strategy and Market Position

RequirementEnablerAlignment

Recruiting(Buy)

Explains15%

Explains85%

SuccessFactors Performance & Talent ManagementIntegrated Application Suite

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Dr. Jesse Harriot

• VP of Research for Monster Worldwide• Founder of Monster Intelligence and Monster

Insights

• Dr. Harriott holds an M.A. and a Ph.D. in Experimental Psychology from DePaul University.

• He has appeared in various media outlets including CNBC, The Wall Street Journal, New York Times, CBS radio, Bloomberg and Reuters

Presented By:

Jesse Harriott, Ph.D.VP of Monster Insights

Jeffrey QuinnDirector of Monster Intelligence

The Talent TsunamiAttracting, Acquiring and Retaining Talent in an Age of Great Workforce Change

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Three forces set the stage for change

1. Changing Demographics

2. Candidate Empowerment

3. Value of human capital

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Demographic Shift

“We are about to face a demographically driven shortfall in labor that will make the late 1990’s

seem like a minor irritation.”

- Anthony Carnevale, Former Chairman of the National Commission for Employment Policy

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• Despite continued job growth, the national unemployment rate rose in the second half of 2007, ending the year at a level of 5 percent

• As the labor market continues to loosen up, recruiters should expect more favorable hiring conditions ahead

• The number of job openings per unemployed has declined but remains at an historically high level

• As demand and supply continue to adjust, we should see a shift in the labor market balance from the seeker towards the employer

Source: Bureau of Labor Statistics, January 2008

Workers have the upper hand

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Source: Society of Human Resource Management

Global shifts for talent

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Global demographic changes are happening

• By 2025 the number of people aged 15-64 is projected to fall by 7% in Germany, 9% in Italy and 14% in Japan*

• U.S. faces the departure of the Baby Boomers; approximately half the top people at America's 500 leading companies will retire in the next five years

Source: The Economist

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Signs are pointing to an emerging skill shortages

• The greatest number of surveyed employers who have indicated difficulty in finding the right people to fill jobs:

– Mexico (78%)

– Canada (66%)

– Japan (58%)

Source: Manpower

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There are industry specific shortages as well

Source: Manpower

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Skills gap compounds the problem

0%

10%

20%

30%

40%

50%

60%

1980 2000 2020

Level Education – Past 20 years the workforce attending college went from 40% to 60%; it will not move in the next 2 decades

Prime age workers (25-54) with more than a HS degree

Last Two Decades = 42% Growth

Next Two Decades = 7% Growth

Sources: Hudson Institute, Educational Testing Service, Kaplan, BLS, American Demographics

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Skills gap compounds the problem

140

150

160

170

180

190

2000 2010 2020

Shortage – Education plus baby boomer retirement enforces predictions of a skills shortage

SKILLEDJOBS

UNSKILLED JOBS

WORKFORCE

Numbers of jobs and workers, in millions (adjusted for multiple job holding)

Projected gap in skilled workers by 2020 =

14 Million

Source: Hudson Institute, Educational Testing Service, Kaplan, BLS, American Demographics

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Managing future generations

Estimated U.S.A. Civilian Non-institutional Workforce by Generation

Generation Y(Born 1978-1990)

Ages: 17-29

Generation X(1965-1977)

Ages: 30-42

Baby Boomers(1946-1964)

Ages: 43-61

Schwartzkopf Generation(Born <1946)

Ages: 62+

Source: 2006 RainmakerThinking, Inc. Analysis

22% 29% 42% 7%

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1. They have high expectations of themselves

2. They have high expectations for you

3. They look at every employer as a hub of resources

4. They ask the question: “What’s the deal around here?”

5. Best way to hire Gen Yers – Answer the above?

6. Embrace their sense of urgency in the workplace

7. Managing rule – Break it down into smaller pieces

Impact of younger generations

The seven most important things to know about Generation X & Y Employees

Source: 2006 RainmakerThinking, Inc. Analysis

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Three forces set the stage for change

1. Changing Demographics

2. Candidate Empowerment

3. Value of human capital

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4 Years?27 Years

Times have changed . . .

1955 Today

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The mentality of today’s employed job seeker

• Over 50% are not completely satisfied with their jobs

• 71% are “poised” for another opportunity if it comes along

• 56% regularly look at new job opportunities

Source: Monster Intelligence Research

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A paradigm shift

Poised

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Three forces set the stage for change

1. Changing Demographics

2. Candidate Empowerment

3. Value of human capital

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Increasing value of talent to the bottom line

• Technology/IP flows much more freely than in the past

• Innovation is quickly copied

• Workplaces become decentralized/location not as important

• Former monopolies fail to compete

These structural changes do not mean

the end of unemployment . . .

They mean that TALENT

is the remaining advantage

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So what does this all mean?

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In a buyer’s market sourcing becomes a branding challenge

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How do you define a brand?

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How should HR organizations prepare?

1. Proactive Recruitment Planning:Attract the best candidates aggressively via employer branding methods

2. Proactive Retention:Retain top percentile players via targeted retention strategies that exemplify the employer brand

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Follow the engagement cycle to attract, acquire and advance keepers

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Who are the “Keepers” in the organization?

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ATTRACTING KEEPERSwhile promoting your employer brand

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GE ChinaInvitation to Learn

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Finding the right one from millions

Acquiring Keepers

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Acquiring Keepers

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We acquire our keepers by removing candidate frustrations

Vague Job Descriptions

Inflated Requirements“Super Candidate Syndrome”

Omission of Key Information in the

Posted Job

Lack of ResponseFrom Employers

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We advance our keepers because we value our “A” players

7 Rules to Follow:

1. Make Supervisors Accountable

2. Enable Work/Life Balance

3. Create Succession Planning

4. Monitor Employee Sentiment

5. Focus efforts on your keepers

6. Produce an employer brand experience

7. Reward internal Mobility

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Where are you today?

Create the business case for good hiring• Who is most critical to your company’s success?

• What do they want?

• How do they succeed?

• Why do they stay (or leave)?

• What is different about your company?

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Questions