Total talent management is key for HR leadership

Total Talent Management is Key for HR LeadershipMarch 1st, 2012

www.allegisgroupservices.com

Introduction

Ronald Kreugel – Director, Business Development

Maria Boyse – Executive Director, Human Capital Solutions

About Allegis Group Services:

• World’s 4th largest provider of Staffing and HR services• Leading provider of global Human Capital Solutions• Specialists in Managed Services, RPO and HR Consulting


Agenda

1. Global Business Trends• Implications on People Management• Changing Role of HR

2. Total Talent Management• Key Elements of Talent Management• Workforce Trends

3. Contingent Workforce Management• Added Value of Contingent Workers• Maturity Model

4. Conclusion & Summary


Global Business Trends

GLOBALISATION

DEMOGRAPHICS

TECHNOLOGY


Global Business TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY

• Economic Crisis• Consumer Confidence• Cost Reductions - Lay offs• Merger & Acquisitions

• New Generation(s)• Immigrations• Work-Life Balance• Social Responsibility

• Communication• Knowledge• Company Policy • Access to Talent


Global Business TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY

• Economic Crisis• Consumer Confidence• Cost Reductions - Lay offs• Merger & Acquisitions

• New generation(s)• Immigrations• Work-life balance• Social Responsibility

• Communication• Knowledge• Company Policy • Access to Talent

‘Usual ‘ Business Pressure• Active Cost Management• Productivity – Knowledge Workers• Global Talent Competition• Cultural Alignment with Business

‘Crisis‘ Pressure• Employee Engagement• Employer Brand (Lay-offs)• Continuous Change – Different Skills• More Pressure to Reduce Human Cost


What Does Your Company Do?

GLOBALISATION DEMOGRAPHICS TECHNOLOGY

Traditional Thinking

Transformation Thinking





Maximize cost savings Freeze innovations Reduce headcount where possible Increase sales without more expenses



Maximize cost savings Freeze innovations Reduce headcount where possible Increase sales without more expenses

New operating model Driving innovations

New talent acquisition New governance model and organisation

CHANGE IS THE ONLY CONSTANT!






Changing Role of HR


Agenda

1. Global Business Trends• Implications on people management• Changing role of HR





What is Talent Management?

Definition of Talent Management:

The capability and skills to attract, develop, retain

and obtain the maximum performance of the most

critical and decisive professionals for a

company by means of differentiated

management practicesto meet current and

future business objectives

Attract

Hire

DevelopTrain

Retain

Key Elements of Talent Management

Strategic WorkforcePlanning

Total TalentAcquisition

EmployeeDevelopment

PerformanceManagement

SuccessionPlanning

What are the goals of the organisation and the objectives you expect your people to deliver? Do you have the people to accomplish this?

Where and how will you get the talent to fill the gaps you identified in planning?

How do you train and prepare your people so they will be successful?

Are your people successful and are they accomplishing the goals you set for them?

Do you have a plan for key people and roles?



• Determine desired end results

• Cascade the goal down to departments

• Requires accomplishments of key tasks by people

• Plan workforce and identify needs , availability and possible gaps


Total Talent

Acquisition

EmployeeDevelopm

ent

Performance

Management

SuccessionPlanning



• Identify needs and gaps based on workforce planning

• Comprehensive perspective (include anyone doing work!)

• Combine strategy, planning, sourcing, leverage talent pools

• Acquire talent when needed, but ensure success!


Total Talent

Acquisition

EmployeeDevelopm

ent

Performance

Management

SuccessionPlanning



• Understanding each person’s ability and core competencies

• Create personal profiles and gather information

• On-boarding talent = getting talent productive!

• Ensure that people know what is expected from them…


Total Talent

Acquisition

EmployeeDevelopm

ent

Performance

Management

SuccessionPlanning



• Linking employee development and goals to performance

• Ensuring organisational goals are met

• Meaningful communication = promotes retention and engagement

• Adopt and use technology to make it easier for managers


Total Talent

Acquisition

EmployeeDevelopm

ent

Performance

Management

SuccessionPlanning



• Pro-actively prepare for next wave of talent to fulfill key positions

• Avoid informal process and ‘gut feeling’

• Develop a plan to manage key people and key positions

• Remove obstacles and commitment from C-level (culture!)


Total Talent

Acquisition

EmployeeDevelopm

ent

Performance

Management

SuccessionPlanning


Workforce TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY

• Uncertain Economy • Risk Management • Workforce Planning• Cost Management




• New Generations with Different Engagement

• Social Responsibility and Sustainability

• Instant Gratification and Work-Life Balance


Workforce Trends

• Talent Acquisition and Sourcing Channels

• Social Media and Mobile Technology

• Employer Branding

• New Generations with different engagement


• Instant gratification and Work-Life Balance












• Usage of Contingent Labour

• Agile Recruitment Teams

• Outsourcing Non-Core Activities








Agenda






Contingent Workforce (CW) Trends

8% *

Light Industrial

ContingentPerm Employees

25% *

Information Technology


18% *

Financial Services


30% *

Automotive


* indicative percentages based on AGS estimations in 2010


Types of Contingent Workers

Temporary / AgencyWorkers

ProfessionalWorkers

Projects Statement of

Work

Graduates / Interns

Independent Contractors

Free-Lancers

ContingentWorkers

PermanentEmployees


Contingent Workforce Characteristics

ContingentWorkers

PermanentEmployees

Temporary / Agency

Workers

ProfessionalWorkers

Projects / Statement of Work

Independent Contractors / Free-

lancers

Graduates / Interns

• Light industrial• Admin clerical• Support roles• Call centre(s)

• Engineers• Project Mngrs• Technicians• IT Specialists

• Deliverables• Time & Materials• Fixed price

• Special Projects• Specific Skills• Relationship

• Campaigns• Programmes• Future Talent


Contingent Workforce Characteristics

ContingentWorkers

PermanentEmployees

Temporary / Agency

Workers

ProfessionalWorkers


Independent Contractors / Free-lancers

Graduates / Interns


• Engineers• Project Mgs• Technicians• IT Specialists


• Special projects• Specific skills• Relationship

• Campaigns• Programmes• Future talent

• Volatile• Short-term• Generic profiles• Few suppliers

• Less volatile• Mid-long term• Diversity• Many suppliers

• Defined projects• RFx process• Preferred suppliers

• Less volatile• No formal RFX process• Ex-employees

• Fixed period• Administration• College/University• Employer branding


Contingent Workforce Acquisition

ContingentWorkers

PermanentEmployees

Temporary / Agency

Workers

ProfessionalWorkers



Graduates / Interns


• Engineers• Project Mngs• Technicians• IT Specialists




• Volatile• Short-term• Generic profiles• Few suppliers

• Less volatile• Mid-long term• Diversity• Many suppliers

• Defined projects• RFx process• Preferred suppliers

• Less volatile• No formal RFX process• Ex-employees

• Fixed period• Administration• College/university• Employer branding


CW Maturity Model

I II III IV V

DECENTRALIZED

MASTER VENDOR

CLIENT MANAGEDPREFERRED

SUPPLIERPROGRAM

MANAGED SERVICE PROVIDER (MSP)

TOTAL TALENT ACQUISTION

MANAGEMENT

LOW

HIGH

MATURITY OF THE MARKET

GLOBAL CONTROL OF MSP or TTAM

VI

LEVE

L O

F C

OM

PLEX

ITY

Several suppliers Procurement done on

an ad-hoc basis Management done

internally

One supplier (possibly managing second and third tier suppliers)

One point of contact Direct cost savings on

bill rate and Volume Customized SLAs and

process

Client resources tactically engaged

Selective set of suppliers selected

Contracts in place SLAs in place May or may not involve

automation

Managing all contract workforce spend

One point of contact for suppliers and contractors and hiring managers

Direct cost savings on bill rate and usage

Integrated e tool for total process

SLAs & customized process

Total cost of ownership savings

Total workforce spend under management

Complete workforce visibility

Direct cost savings on bill rate and SOWs

Customized SLAs and process

Non-compliant spend elimination

Increased total cost of ownership savings

Additional productivity and process savings

High degree of value added services

Global spend centralized and controlled

Global workforce visibility

Customized SLAs and process

Global supply community

Increased total cost of ownership savings

Integrated e tool for total process visibility

Additional productivity and process savings

High degree of value added services

Ability to plan best mix of resource types


Value Add of a CW PartnerContingent

Workers

PermanentEmployees

Temporary / Agency

Workers

ProfessionalWorkers



Graduates / Interns


• Engineers• Project Mngs• Technicians• IT Specialists




• Single point of contact• Accountability• Transparency and visibility• Supporting technology platform

• Expertise in labour legislation• Market knowledge • Experienced in talent sourcing• Supply chain management

QUALITY CONTROL

• On-/off-boarding• Extensive reporting (headcount)• Tenure management• Consulting on CW hiring type(s)

COMPLIANCE


Best-in-class CW Programmes

SOLUTION:• Standard policies and processes for CW Management• Build global dashboard for enhanced control and reporting• Deploy universal Vendor Management Software (VMS)• Contractor Compliance Screening process

QUICK FACTS:• Started mid 2009• Delivery teams on-/off-site on 3 continents• Full suite of Managed Services

RESULTS:• Visibility over contingent workforce• Higher quality supply base and talent pools• Stronger focus on required key skill sets• Manage risks (co-employment)• Cost avoidance and efficiency


http://www.visa.nl/

http://www.visa.nl/

Agenda






Summary & Conclusion

1. Global business trends are forcing enterprises to improve talent management• Ageing workforce• Competing for talent• Transformation to new governance and organisation structures

2. Total talent management strategy can accelerate business objectives• Attracting right talent• Improved retention• High employee engagement

3. Strategic importance of contingent workforce• Increase capacity and capability• Holistic labour procurement system• Involvement of HR in contingent workforce strategy


Tips for Total Talent Management

• Prioritize revenue-generating business units, jobs, and employees

• Retain revenue producers

• Create a fast-reaction team

• Proactive internal movement

• Contingent workers and vendors must be included

• On-boarding


Questions & Answers

Let us answer your questions!


Final ThoughtsUnderstanding the five key components of a “revenue focused” HR strategy.

1. Collaboration with the CFO —the first component is that HR leadership must work directly with the CFO’s office (who is the undisputed “king” of measuring revenue).

2. Make it a HR goal — the second component of the strategy is goal setting by making “impacting revenue” a major HR and talent management goal.

3. Prioritization — the third component is prioritization. If you start with the assumption that there will be no additional budget at least initially for this strategy, focus and concentrate your current HR budget and your best HR people on the business units, the jobs, and the employees that have the most impact on increasing revenue.

4. A process for identifying problems and barriers — the fourth component of the strategy involves identifying barriers to prohibit revenue from increasing.

5. Best-practice sharing – the final strategy component is best-practice identification and sharing.


Thank you!Visit our website for more info: www.allegisgroupservices.com

http://www.allegisgroupservices.com/

Total talent management is key for HR leadership

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