2013 Mexico Human Capital Conference

September
Talent management executes
business strategy
Talent management helps executive business strategy Page 2
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Talent management helps executive business strategy Page 3
Introduction
Dina Pyron
Ernst & Young LLP
Global Director, Human Capital
Dina.Pyron@ey.com
German Vega
Ernst & Young Mexico
Partner, Human Capital
German.Vega@mx.ey.com
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Talent management session description -
executes business strategy
The ability to execute business strategy is directly related to
effectively attracting, retaining, developing and engaging
(motivating) key talent. This is even more apparent in rapid
growth markets like Mexico that talent (your employees) are a
business' clear differentiator for business success.
Aligning talent management to the business strategy and
integrating talent management programs, processes and
technology throughout your business breaks down the barriers
and allows the organization and individuals to succeed.
Today, we want to address how talent management is key to
business success, the talent challenges faced by global
organizations, and how they are overcoming barriers and
succeeding in managing today's global workforces.
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Our discussion today
Talent management: point of view
Global mobility: a strategic component of your global
talent management
Discussion around Ernst & Youngs 2012 global talent
management surveys: (rapid growth markets, talent
management in high-performing organizations)
Talent 2020: the next chapter
Questions and answers
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Talent Management is all about your people
The ability to execute business
strategy is directly related to
effectively
Attracting
Retaining
Developing
and Engaging.
key talent.
If completed effectively, Talent
Management creates a
sustainable competitive
advantage for businesses and a
strong employer brand in the
marketplace
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Talent management- A key business issue
A key business issue (Number three global business
issue Ernst & Young survey 2012; CEOs spend more
than 70% of their time)
Simply, the people issues in your organization not just
an HR issue
Point of view:
Alignment to business strategy
Integration within your business operation
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Talent
management
HR programs
HR processes
and
service delivery
HR compliance
and
governance
Business strategy
Talent management alignment
Talent management must be aligned to your business strategy and supported
by HR programs, processes and technologies.
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20.5%
greater financial return
when companies align
their business strategy
and talent management
38.0%
Talent management alignment and integration drives ROI.
greater financial return when
integrating key components of
talent management programs
and processes together and
throughout the organization
Workforce analytics
(internal and external)
Performance metrics Business strategy
Employee
life
cycle
Talent
management
Global
mobility
Talent strategy/
HR strategy
Company/HR
operating model
Company/HR
organization structure
Helps execute your business strategy
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Highlights from our 2012 global talent
management surveys: rapid growth markets
810 global executives:
53% C-suite (CEO, CFO, others)
35 rapid growth markets; 21 industry groups
44% more than US$1 billion revenues
Four key talent management global challenges:
Top management teams lack international experience.
The lack of an internal management pipeline forces companies to
recruit from rivals.
Companies are unable to effectively retain and reward high
performers.
C-suite leaders and operational managers hold conflicting views
on talent management.
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Key talent management challenges
Top teams lack international experience.
Figure 1: International experience of top management team
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Key talent management challenges
The lack of an internal management pipeline forces
companies to recruit from rivals.
Figure 2: Building an international management team
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Key talent management challenges
Companies are unable to effectively retain and reward
high performers.
Figure 3: Effective team management Figure 3: Effective team management
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Key talent management challenges
C-suite leaders and operational managers hold conflicting
views on talent management.
Figure 4: Building an international management team
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Paradigm shift building a new talent
management model to boost growth
Building a new Talent Management model
Workforces are becoming more global, but Talent Management is not
keeping pace
Companies struggle to invest strategically in Talent Management
Measuring the effectiveness of Talent Management remains a
challenge
The skills and competencies required by future business leaders are
changing
Companies lack robust succession plans to identify the next
generation of leaders
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Talent management in high-performing organizations
Talent management characteristics in high-performing
organizations:
A greater investment in talent management focused on meeting
strategic and financial objectives (global mobility to leadership
development)
Unrelenting focus on developing and sustaining a strong
leadership pipeline (succession planning No. 1 difference)
Developing leaders early in their careers and getting them the key
diverse, international experiences
Using the same talent management outcomes as all organizations
to measure success (employee satisfaction, retention), however
putting more emphasis on external employer brand
Greater alignment of performance and paying for performance
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Strategies and best practices in talent
management
Define the capability framework,
including job families, roles profiles,
skills and competencies
Estimate and forecast workforce
requirements by skills and competencies
Prioritize the critical skill sets and roles
Develop the hiring strategy
Articulate the employee value proposition
Evaluate skills and competencies
Develop on-boarding mechanisms that
enhance productivity
Understand key levers for
engagement at each location
Track and respond to data
Personalize interventions based on
EVP
Develop total rewards that
reflect the EVP, engagement
plan, etc.
Align total rewards strategy
with labor cost model
Leverage sub-functions across
operations to develop skills and
capabilities
Link individual objectives to
improvements in performance measures
Best practice results:
Strong ER brand
Attraction and
retention of the
right employees
Improved employee
satisfaction and
engagement
Higher employee
productivity
Great HR efficiency
Improved HR
effectiveness
Financial returns
Best companies to
work for/best
employers
Identify the right
need
Optimize hiring
and on-boarding
Engage to retain
Develop and grow
Reward broadly
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How to get started
Align and integrate talent management and global mobility objectives (work
together)
Review the effectiveness between talent management and global mobility
(e.g., career development, succession planning, leadership development,
performance management, workforce planning)
Review how effectively you are in recruiting, retaining, developing, engaging
top talent
Questions you need to be able to say yes to:
Do you know the jobs that need international experiences, the type of experiences
and how employees will get it?
Is your leadership pipeline in critical positions three levels deep?
Can you measure meaningful outcomes from your talent management and global
mobility programs?
Have you aligned performance measures from the organization, region/division,
business units/functions and individual employees?
Have you created a strong employer brand that is consistent with your talent
management and employee life cycle commitments?
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Talent management 2020
Business strategy
Business strategy
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Questions