T A L E N T I N T E L L I G E N C E

FUTURE OF TALENT MANAGEMENTDrivers and Trends

David WilkinsVP, Taleo Research

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›Economic drivers

›Demographic drivers

›Technology drivers

›Implications for Talent Management practices and focus

OUR AGENDA

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›All-in, we interviewed 50+

›Qualitative interviews with key thought leaders in leading firms and recognized industry experts

›Deep secondary research and analysis

›Not “survey research” – “sense-making” research about key trends

OUR RESEARCH

TA L E N T I N T E L L I G E N C E

INTANGIBLES: 80% AND GROWING

Source: Deloitte, “Extracting Maximum Value from Intangible Assets”

TA L E N T I N T E L L I G E N C E

THE NEW COMPANY WALLS

Formal content

Social and informal content

Human capital

WorkplaceTalent

TA L E N T I N T E L L I G E N C E

THE NEW COMPANY WALLS

Formal content

Social and informal content

Human capital

WorkplaceTalent

PartnerTalent

TA L E N T I N T E L L I G E N C E

THE NEW COMPANY WALLS

Formal content

Social and informal content

Human capital

WorkplaceTalent

PartnerTalent

CustomerTalent

PublicTalent

TA L E N T I N T E L L I G E N C E

EXAMPLE BUSINESS MODELS

TA L E N T I N T E L L I G E N C E

›Total Registered SolversApproximately 250,000 from nearly 200 countries

›Total Solver ReachMore than 12 million

›Total Challenges Posted to InnoCentive.comMore than 1,200

›Total Solution Submissions24,256

›Average Success Rate50%

INNOCENTIVE

TA L E N T I N T E L L I G E N C E

TA L E N T I N T E L L I G E N C E11

“Besides the sheer thrill of seeing the winner place first by mere minutes after years of work, the Netflix Prize competition has proffered hard proof of a basic crowdsourcing concept: Better solutions come from unorganized people who are allowed to organize organically.”

12

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Company

ANOTHER COMPANY VIEW

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Company

ANOTHER COMPANY VIEW

30% of the workforce is contingent:ContractorsAgencyTemp

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Company

ANOTHER COMPANY VIEW

30% of the workforce is contingent:ContractorsAgencyTemp

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Company

ANOTHER COMPANY VIEW

And growing…50% of companies plan to increase #s

One prediction?Contingency will equal 40% of the workforce by 2020

TA L E N T I N T E L L I G E N C E17

› Talent Management scope will expand

› Talent inside the company, as always

› Plus, contingent tracking, alumni, talent competitions

› Talent professionals will be expected to advise on a full spectrum of talent options in a similar model to performance consultants

› In other words, talent professionals will really start to own the full talent ecosystem…

WHAT IT MEANS…

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GLOBALIZATION

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“34 percent of CHROs in growth markets say they anticipate increasing headcount in North America over the next three years, while 37 percent plan additional investment in Western Europe. This includes companies from India, where 45 percent of respondents indicated they plan to increase headcount in North America and 44 percent in Western Europe.”

TA L E N T I N T E L L I G E N C E20

“34 percent of CHROs in growth markets say they anticipate increasing headcount in North America over the next three years, while 37 percent plan additional investment in Western Europe. This includes companies from India, where 45 percent of respondents indicated they plan to increase headcount in North America and 44 percent in Western Europe.”

Tata is already the largest employer of

manufacturing workers in UK.

TA L E N T I N T E L L I G E N C E21

› Talent is global

› Even local companies will be competing for talent globally

› It also means that local companies will need to defend their talent pools, not just against local competitors, but global firms, even ones from emerging markets

› Virtual work will continue to increase with software advances

› Local companies need to partner with universities to grow local talent and differentiate through personal, in-person connections

WHAT IT MEANS…

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“Firms have jobs, but can’t find appropriate workers. The workers want to work, but can’t find appropriate jobs. … Whatever the source, though, it is hard to see how the Fed can do much to cure this problem. Monetary stimulus has provided conditions so that manufacturing plants want to hire new workers. But the Fed does not have a means to transform construction workers into manufacturing workers.”

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DEMOGRAPHICS

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DEMOGRAPHICS Country % Growth

Russia -8%

Japan -5%

Germany -4%

Poland -4%

Italy -1%

Greece 0%

France 5%

UK 7%

China 7%

Brazil 13%

USA 14%

Mexico 15%

Turkey 17%

India 24%

Nigeria 46%

Pop

ulat

ion

Gro

wth

201

0-20

20

›Summary

–Slow growth, negative growth in developed world

–Faster growth in developing world

–In US, UK growth fueled through immigration

–Less developed = more growth

›Implications

–Leadership need is a global phenomenon

–Developing world all competing for same pool

–As developing world matures, pressures from there

–Reverse immigration to Poland, India, Mexico

–Deep, narrow talent pools vs wide and shallow

TA L E N T I N T E L L I G E N C E26

BUT NO EASY ANSWERS…

› Countries in survey:

– BRIC countries

– Eastern Europe

– Asia Pac

– Poland

– Mexico

› Of 100 college grads…

– On average just 13 hire-able

– Lack of skills, culture fit

– Location to major cities

– Domestic competition

https://www.mckinseyquarterly.com/Sizing_the_emerging_global_labor_market_1635

TA L E N T I N T E L L I G E N C E27

› Good people, even great people, are getting increasingly shut out of the job market

› There are bargains to be had for those companies that know how to discover fit and aptitude through better matching

› Investing in workforce development is no longer just a company thing, it’s a country thing, an issue of global competitiveness

› Skill shortages are going to smack people in the face once the economy rebounds – we’ve had a reprieve, but the War for Talent will be significantly worse than pre-recession

› And traditional solutions, like importing labor, won’t be as simple

WHAT IT MEANS…

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MOBILE INTERNET ACCESS

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2010 1Bmobile workers

By 2013 1.2Bmobile workers

In the US 75% will be mobile workers

VIRTUAL WORK, VIRTUALLY ANYWHERE

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› You need to support work styles that support your team

› Millenials and Gen X live on mobile devices

› (They even sleep with them…)

› Companies that support work models that support their teams will attract better talent, tap into extra hours of productivity, and increase engagement

› Also consider removing barriers to social networking… for most companies that know how to manage performance, social networking is the obvious pre-cursor to social sourcing and a foundation for tapping external talent

WHAT IT MEANS…

TA L E N T I N T E L L I G E N C E

Economic• Knowledge Economy• Globalization• Structural Unemployment

Demographics• Aging Economies• Increasing Health• Workplace Diversity

Technology• Increasing Increase• Digitization / Cloud• Telecommunications

TA L E N T I N T E L L I G E N C E

Economic• Knowledge Economy• Globalization• Structural Unemployment

Technology• Increasing Increase• Digitization / Cloud• Telecommunications

Virtual, Global Talent

Hyperspecialization

Faster cycle times

Contingency

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Economic• Knowledge Economy• Globalization• Structural Unemployment

Demographics• Aging Economies• Increasing Health• Workplace Diversity

Contingency

Boomer Workforce

Enculturation Issues

Talent Mobility

TA L E N T I N T E L L I G E N C E

Virtual, Global TalentTalent MobilityEmployee EmpowermentContingency

Demographics• Aging Economies• Increasing Health• Workplace Diversity

Technology• Increasing Increase• Digitization / Cloud• Telecommunications

TA L E N T I N T E L L I G E N C E

Economic• Knowledge Economy• Globalization• Structural Unemployment

Job Polarization

Demographics• Aging Economies• Increasing Health• Workplace Diversity

Technology• Increasing Increase• Digitization / Cloud• Telecommunications

Talent Matching and DiscoveryTalent Agility and MobilityTalent Planning and ModelingTalent Ecosystem Management

TA L E N T I N T E L L I G E N C E

› Combination of economic, technology, demographic changes mean that businesses need better solutions to support:

– Talent Matching and Discovery

– Talent Agility and Mobility

– Talent Planning and Modeling

– Talent Ecosystem Management

› Business and talent management process and data are merging

› Personal empowerment means that core consumer of talent solutions include candidates, employees, managers, executives, and HR

KEY TAKEAWAYS – THE BIG STUFF