The Talent AdvantageKeys to Organizational Success and Sustainability

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Introduction

• 35 years in Talent Acquisition• President of Brightwing• Business Owner• Certified Human Capital Strategist

Talent – An Asset, Not An Expense

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“The ability to make good decisions about people represents one of the last reliable sources of competitive advantage, since so few organizations are very good at it.”- Peter Drucker

Provides competitive advantage

Grows the organization

Truly unlocks value

Takes the company to the next level

Talent management makes solid business sense

Talent and culture are too vital to be left to chance

Talent Advantage – Additional Perspective

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“I view my primary job as strengthening our talent pools. So I view every conversation, every meeting as an opportunity to talk about our talented people, to learn about them and to help them with their talent priorities. It’s how we run GE.” - Jack Welch, Former GE CEO

“Not finance, Not Strategy, Not technology, It’s teamwork that remains the ultimate competitive advantage, both because it’s so powerful and so rare.”  

- Patrick Lencione, Author & Executive Coach

“Organizations that score in the top half or employee engagement have double the odds of success of those in the bottom half. Not only that, but those at the 99th percentile of engagement have four times the success rate”

- 2012 Gallup Annual Employee Engagement Survey

"If I were running a company today, I would have one priority above all others: to acquire as many of the best people as I could [because] the single biggest constraint on the success of my organization is the ability to get and to hang on to enough of the right people." 

- Jim Collins, Author: Good to Great

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Talent Management by the Numbers

• Planning - Cost per day when operating without key players $7,000• Evaluate - Value of Top Performers: 2 to 4 times the performance of

average employees• Acquire -Cost of a poor hire (DEPENDING ON ROLE) can equal

$300K - $550K • Retain - Cost of losing a talented KEY employee = at a MINIMUM 1.5

times their burdened salary• Engage - The rate of efficiency for most companies due to poor

employee engagement levels is 30% to 50%

The Talent Advantage Value Chain

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Engaged

employeesstay longer

Retention of employees

drives

customer satisfaction

Satisfied

customers are loyal and

stay

Customer retention drives

profitability

Profits drive shareholder

value

Strategic Workforce (Talent) Planning

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SWP in a Context of Rapid Change

• According to the Corporate Leadership Council – The strength of your talent pipeline is a major contributor to Innovation

• The expected shelf life of skills achieved in college is five year

• 40% of employees have been with current employers less than two years

• The average CEO tenure is less than three years

• Every day, 55,000 baby boomers turn 55

• Seven of the top 10 jobs in 2013 did not exist in 2004

• Current job entrants will average 11 to 13 companies/jobs/positions in their professional career

• The Amount of Technical Information is DOUBLING every 2 years

A Strategic View of Talent Management

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Plan

Acquire

Engage

DevelopDeploy

Lead

Retain

Measureand

Align

Talent Management Practices

.

Talent Acquisition – The Essentials

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Talent Acquisition is attracting, selecting, and hiring the best talent for the job

• Best Practice is to operate in a “proactive mode” for your STRATEGIC and CORE talent

• Talent Acquisition should be owned at the Executive Level

• Everyone in the organization should be aware of the importance

• Cultural and behavioral “fit” is at least as significant as technical skills

• Be a place where people want to work – Employment Brand

• Do not hesitate to look for unconventional sources of talent

• Build relationships with local universities and schools, internships and referral programs

• Have a Defined Process – that is consistent

Talent Acquisition – Needs & Plan

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Talent Acquisition Process – (Funnel)

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Employee Engagement – The Essentials

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• The extent to which employees believe in what they do, feel values for it, and are willing to spend their intellectual effort to make the organization successful

• Engagement is a leading indicator of productivity and turnover

• Engagement can be measured by surveys, focus groups, behavioral scales and conversations. Turnover should be tracked by talent level, location and role

• Actively disengaged employees cost the organization $3,400 for every $10,000 in salary (Gallup, 2011)

• Kenexa (2011): up to 10% of an organization’s performance can be attributed to employee engagement

• Deloitte estimates that every percentage point save in annual turnover saves the firm $400 million

Employee Engagement – Insights

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SOUTHWEST AIRLINES – PURPOSE• This airline sees their purpose as connecting people with what’s important to them. They don’t just

see themselves as transporters of people, but as enablers who help people get to people or places they care about. This may be seen as a small differentiation, but it can make a big difference in how important an employee perceives his/her job. A strong, clear purpose connects emotionally with employees.

HYATT – EMPLOYEE DEVELOPMENT• The hotel group’s high employee retention and long tenure speaks volumes in an industry known for

its high employee turnover. The focus on employee development and promoting from within plays a large part in this. Another interesting practice, connected to development, is how they empower their employees (whom they call associates), to listen carefully to each other and guests, to be able to solve problems and create new solutions, rather than following scripts of what to do, making the guest feel special and heard.

VIRGIN - LISTENING• This multi-industry organization has a habit of listening to its employees, to show that they are valued,

to listen to their opinions and take care of their ideas, to have healthy debates and continuously innovate. It’s a win-win; the organization keeps learning and employees feel important and engage with the organization. Listening is at the heart of engagement. In our experience, everyone wants to be seen and heard.

Employee Engagement

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Top Ten Global Drivers of Engagement

• Senior management sincerely interested in employee well being

• Improved my skills and capabilities over the past year

• Organization’s reputation for social responsibility

• Input into decision-making in my own department

• Organization quickly resolves customer concerns

• Set high personal standards

• Have excellent career advancement opportunities

• Enjoy challenging career assignments that broaden skills

• Good relationship with supervisor

• Organization encourages innovative thinking

Towers-Perrin Global Workforce Study

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Essentials for YouVideo

https://www.youtube.com/watch?v=I_lAzThKYWk&feature=player_embedded

• The Level of Employee Engagement is a significant differentiator in the Marketplace

• Talent should be a Strategic Pillar to your organization (big or small)

• Talent should be Executive Team or Board Level Issue

• Talent Acquisition and Talent Management should be Aligned with the Overall Company Strategy

• Talent Acquisition should be an ongoing initiative

• Talent Acquisition Strategy should be focused on the Strategic and Core Roles

• Employment Brand is crucial to success in Talent Acquisition and long term Employee Engagement

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Tools for Success

• Talent Mindset – The business owners guide to building bench strength (Author: Stacy Feiner PsyD) – recommended

• Case Study – Messed Up Hiring Process (hand out)

• Talent Leadership Assessment (hand out)

• Human Capital Practices Assessment (hand out)

• BRIGHTview Reference Guide (hand out)

• Behavioral Interviewing Reference Guide (hand out)

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Self Assessment

• Complete on your own

• Share with your team

• Identify gaps and/or areas for improvement

Questions

george@gobrightwing.com248-585-4750

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