EMERGING TRENDS IN TALENT

MANAGEMENT

© Dr John Sullivan (Johns@sfsu.edu)

www.drjohnsullivan.com 1

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Global reach of Dr. John Sullivan

Work Published (43 Countries)

Publicly Presented/Advised (27 Countries)

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The goal for today

To show you the major strategic and functional

trends that will drive global talent management over

the next 5-10 years

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Part I

Let’s first look at…

12 strategic trends in TM

More productiveMake internal talent more productive

RetainRetain key internal talent

MoveRedeploy internal talent

BorrowBorrow contingent labor

TM has 8 options for increasing productivity

Release Weak & excess labor

Use substitutes (Tech, contingent, outsource, cust.)

Buy Recruit regular employees

BuildDevelop internal talent

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Strategic trend – Prioritization on TM

- “Talent Management” functions receive priority over other HR functions

- Why - because data demonstrates their increased impact on innovation, productivity and business results

Strategic trend – Prioritization on TM

- “Talent Management” functions receive priority over other HR functions

- Why - because data demonstrates their increased impact on innovation, productivity and business results

TM trends

Which HR functions add the most to performance?

Increasing innovation

Productivity improvement

Retention

Employer branding

Talent acquisition

Internal movement

Leadership and succession

On boarding/off boarding

Learning & development

Skills training

Compensation

Benefits

Performance mgmt.

Relocation

Compliance

HRIT

HR administration

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Strategic trend – Learn from and adapt the usable parts from both next & best practices

- “Next practices” now frequently supplant best practices in order to build a competitive advantage

Strategic trend – Learn from and adapt the usable parts from both next & best practices

- “Next practices” now frequently supplant best practices in order to build a competitive advantage

TM trends

Two comparison examples >

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Differentiating between best and next practices

Examples:

Recruiting Standard practice – recruit using newspaper ads Best practice – recruit using referrals Next practice – recruit using Facebook to generate

referrals

Best practice sharing Standard – no formal process Best practice – a knowledge website Next practice – wikis and internal social networks

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“Next practices” vs. “best practices”

Next

practices 1%

Best practices 25%

Standard HR practices65%

Below average practices 9%

“Next practice” firms that are ahead of the curve

GoogleMicrosoftZapposFacebookDaVitaSodexoBooz AllenU.S. ArmyInfosysApple

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Zappos is a “next practices” company

Some quick Zappos “next practice” examples >

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Zappos understands the cost of a bad hire

Even the best recruiting fails occasionally… so Zappos offers $3,000 to anyone who agrees to quit during their initial training… 2 - 3 % take the cash

Also

Every Zappos’s employee is on Twitter

Employer branding with a story book

Zappos publishes a book full of 300+ employee written stories about what it’s like to work there (Available on Amazon)

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Zappos TV…

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Zappos pre-identifies fakers prior to the interview

Because they put such a high value on “authentic” customer service…

they assess an applicants behavior during the shuttle ride

SW Air uses a similar approach

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Zappos toga party and chug contest on YouTube

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Zappos Adidas events

Held Adidas day for it’s employees, which included a shoe lacing competition, a float contest, a costume contest, and a design a pair of Adidas shoes contest 

O M G!Any questions at this point?

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Strategic trend – Boldness becomes common

- Formerly conservative firms/organizations are becoming bold in Talent Management

Strategic trend – Boldness becomes common

- Formerly conservative firms/organizations are becoming bold in Talent Management

TM trends

Three quick “best practice” examples >

Employee videos are powerful branding messages (Yielded 1,000+ videos)

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Using a video to recruit… says innovation

J&J, Deloitte, British Navy & MITRE have used them

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UK intelligence service cover story test to attract and excite

Cards in a bowlCover story test

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Strategic trend – Innovation dominates

- Innovation and idea generation… supplant working hard and dependability as the primary goals

Strategic trend – Innovation dominates

- Innovation and idea generation… supplant working hard and dependability as the primary goals

TM trends

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Continuing on with our “value of innovators” calculation at Google >

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“One great programmer is worth

1000 good programmers.”

Bill Gates

Quote Courtesy of AIRS

The best firms quantify the $ value of top talent (The performance differential)

One top-notch engineer is worth “300 times or more… than the average”

(Google) “would rather lose an entire incoming class of engineering graduates than one exceptional technologist”Alan Eustace, VP of Engineering, Google

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A billion-dollar employee?

Game changers are worth a lot: If you hire a single game changer at Google

(where the average employee generates $1.3 million in revenue each year)

And that game changer produces the expected 300 times the average

For every one you hire… you add over $390 million in revenue every year

And if the new hire stays for only two and half years… they will generate over $1 billion in revenue

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Approaches for increasing innovation

Some examples >

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Examples of how other firms excite innovators

Examples of approaches that excite:

Intel allows you to work a strategic partners

IBM allows you to appeal a bad promotion

Google, Genentech and 3M offer free time

Schwab collection of “noble failures”

GE measures managers on “imagination”

P&G and IBM get ideas from others

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Strategic trend – Internal consulting center- HR acts like a consulting center for

increasing productivity- It identifies barriers to productivity- It improves best practice sharing- It does not make decisions, it advises

managers on risks and benefits

Strategic trend – Internal consulting center- HR acts like a consulting center for

increasing productivity- It identifies barriers to productivity- It improves best practice sharing- It does not make decisions, it advises

managers on risks and benefits

TM trends

A “best practice” example >

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At Zappos, HR acts as a consultant

At Zappos…

HR doesn't decide

HR operates as "risk advisors"

We “empower the manager to make a decision”

#hrhappyhour 2010

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Strategic trend - Metrics drive decision making

- Decisions are made based on data and metrics, rather than past practices &

intuition

Strategic trend - Metrics drive decision making

- Decisions are made based on data and metrics, rather than past practices &

intuition

TM trends

Three “best practice” examples >

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What is the success % of Perf. Management programs?

1. The firm went back 2 years and identified that they had 1,019 people rated #3, “needs improvement”

2. They calculated that they spent an average of $13,090 per year… on their performance management (training, coaching, counseling and manager time)

3. They identified 2 years later… the number that were currently ranked as #1’s

4. That number was

Conclusion – Perf. management has a low ROI

Cisco

0

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What does this 15 yr. Rand study say about T&D?

20406080

100

Per

form

ance

%

Years of service

If the performance level of a recent hire is rated at 50% after their 1st year…

their performance level will remained essentially unchanged until year 20… when they retire

or at the 90th percentile

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Strategic trend - Learning dominates- Google learning speed (At meetings)- Parallel benchmarking increases learning- Learn from other business processes (Supply

chain, lean processes, mass customized manufacturing & pattern

buying)

- Learn from other industries- Provide integrated solutions

Strategic trend - Learning dominates- Google learning speed (At meetings)- Parallel benchmarking increases learning- Learn from other business processes (Supply

chain, lean processes, mass customized manufacturing & pattern

buying)

- Learn from other industries- Provide integrated solutions

TM trends

A quick “best practice” example >

Rapid learning is the top concern at Google

Google continuous learning / “Testing on the toilet”

www.flickr.com/photos/gubatron/246489031

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Strategic trend - A global approach to TM

- Global TM is needed for rapid growth- Countries share the same TM problems- Expect increasing levels of aggressiveness

outside of the US (UK, India, China & Auz)- Remote work is an increasing trend

Strategic trend - A global approach to TM

- Global TM is needed for rapid growth- Countries share the same TM problems- Expect increasing levels of aggressiveness

outside of the US (UK, India, China & Auz)- Remote work is an increasing trend

TM trends

A “best practice” example >

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Remote work increases access to global talent

Results Only Work Environment•Pick your hours•Pick where you work•No in-person meetings required

The business impacts:

The cost of turnover is $102k per employee, ROWE teams have 3.2 % lower turnover ($13 million per year)

When workers switch to ROWE, their productivity jumps by 35%

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Strategic trend – Collaboration across functions produces a $ business impact

- 100 foot rule- Coffee line- Shared shuttle- Laundromat

Strategic trend – Collaboration across functions produces a $ business impact

- 100 foot rule- Coffee line- Shared shuttle- Laundromat

TM trends

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Strategic trend - Agility becomes a critical success factor

- A range of options must be provided

- Strategies must shift with the economy

Strategic trend - Agility becomes a critical success factor

- A range of options must be provided

- Strategies must shift with the economy

TM trends

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Strategic trend – Take proactive actions

- Seek out people management problems- Proactively identify and “fix” bad managers- Identify and re-recruit top employees- Proactively recruit on “bad days”

Strategic trend – Take proactive actions

- Seek out people management problems- Proactively identify and “fix” bad managers- Identify and re-recruit top employees- Proactively recruit on “bad days”

TM trends

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Strategic trend - Technology impacts everything

- Talent management learns when to recommend technology over people

- Open source has an impact- Social networks and the mobile platform

dominate communications

Strategic trend - Technology impacts everything

- Talent management learns when to recommend technology over people

- Open source has an impact- Social networks and the mobile platform

dominate communications

TM trends

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Part II

A quick view…

of some best practices by functional area

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Improving internal movement

- Proactive and targeted movement- Project opportunities can be bid on

(Whirlpool and Google)- Rewards for releasing vs. hoarding talent

Improving internal movement

- Proactive and targeted movement- Project opportunities can be bid on

(Whirlpool and Google)- Rewards for releasing vs. hoarding talent

TM trends

Two examples >

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Facilitated internal movement is a trend

Career mobility team – use it to proactively and accurately place and to speed up internal movement

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Best practices in internal movement

National Oilwell Varco offers a NFL style draft for first year college hire rotations

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Retention trends - Be prepared for an upcoming turnover spike- Identify “who” is at risk of leaving

- Prioritize people & personalize the approach

- Be proactive – ask “why do you stay?”

- Use post-exit interviews to find out “why”

- An algorithm for predicting turnover

Retention trends - Be prepared for an upcoming turnover spike- Identify “who” is at risk of leaving

- Prioritize people & personalize the approach

- Be proactive – ask “why do you stay?”

- Use post-exit interviews to find out “why”

- An algorithm for predicting turnover

TM trends

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Recruiting – A centralized function

- Center of excellence model dominates- Most sourcing, branding and referrals are

done by a centralized group- Enables better candidate sharing- Global sharing of best practices

Recruiting – A centralized function

- Center of excellence model dominates- Most sourcing, branding and referrals are

done by a centralized group- Enables better candidate sharing- Global sharing of best practices

TM trends

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War for talent returns

- The power shifts back to candidates (you must become candidate centric)

- The candidate experience must improve- Talent communities build relationships over

time (Microsoft)

War for talent returns

- The power shifts back to candidates (you must become candidate centric)

- The candidate experience must improve- Talent communities build relationships over

time (Microsoft)

TM trends

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Recruiting – Referrals dominate

- #1 in both volume and quality- Responsiveness is the key- Over 50% of all hires is the target if you

utilize social networks effectively

Recruiting – Referrals dominate

- #1 in both volume and quality- Responsiveness is the key- Over 50% of all hires is the target if you

utilize social networks effectively

TM trends

An example >

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Educate your employees so they can act like recruiters

Source: Whirlpool

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Recruiting – Employer branding is essential - The only long-term recruiting strategy- Leverage your employees social networks- Measure & manage your negatives (glassdoor.com)

- Be authentic in your messages

Recruiting – Employer branding is essential - The only long-term recruiting strategy- Leverage your employees social networks- Measure & manage your negatives (glassdoor.com)

- Be authentic in your messages

TM trends

An example >

Google demonstrates “authentic messaging”

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On and off boarding receive new attention

- Decrease time to initial productivity

- ID why they said yes… to improve

- Social media simplify managing alumni groups

On and off boarding receive new attention

- Decrease time to initial productivity

- ID why they said yes… to improve

- Social media simplify managing alumni groups

TM trends

An example >

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Boomerangs are high quality permanent hires

Also Deloitte, E&Y, Booze, McKinsey and IBM

Microsoft alumni network

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Succession planning must improve

- Designate and pretest immediate back fills- Be ready for a retirement boom- Identify external candidates- Identify the “non-obvious”

Succession planning must improve

- Designate and pretest immediate back fills- Be ready for a retirement boom- Identify external candidates- Identify the “non-obvious”

TM trends

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Did I make you think?

www.drjohnsullivan.com

If these combined examples of “leading edge” TM approaches… were equal to 100 points on a scale…

What point score would you give your firm today?