Strategic Talent Management

Forum

New Era for Talent Management

Today’s challenges and tomorrow’s
opportunities
Keith Caver, North America Practice Leader, Talent Management and
Organizational Alignment, Towers Watson
 Difficulty finding the right people
and keeping the people you need

Problems Problems
Workforce Segment Attracting Retaining
Critical skill employees 72% 56%
High potential employees 60% 55%
Top-performing employees 59% 50%
All employees 31% 25%

Source: Towers Watson 2012-2013 Global Talent Management and Rewards Study — Global.

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“
Engagement is at risk.
It’s not about ‘feeling good’…it’s
about having the tools, colleagues,
time, capacity to fully
“
commit to work.
- Towers Watson 2012 Global Workforce Study

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 The current state of sustainable
engagement of the global workforce

Source: Towers Watson 2012 Global Workforce Study — Global.

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 Further complicating these
challenges are other talent realities

Security

Structural mismatches

Friction points
Skill gaps
Unsustainability
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 The next critical skills

global skills

agile thinking relationship

building

digital business skills

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 A deeper look at the emerging skill sets

Global skills Agile thinking

Foreign language skills Dealing with complexity
Ability to manage and ambiguity
diverse employees Ability to consider and
prepare for multiple scenarios
Ability to work in multiple
overseas locations Innovation
Managing paradoxes,
Cultural sensitivity
balancing opposing views
Understanding Ability to see the “big picture”
international markets
0 10 20 30 40 50 60
0 10 20 30 40 50 60
% of respondents
% of respondents

Digital business skills Relationship building

Relationship building (with customers,
Digital business skills partners, government, etc.)
Ability to work virtually Teaming (including virtual teaming)
Understanding of corporate Collaboration
IT software and systems
Digital design skills Co-creativity and brainstorming

Ability to use social media Oral and written communication

and “Web 2.0”
0 10 20 30 40 50 60 0 10 20 30 40 50 60 70
% of respondents % of respondents
Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012.

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 Future talent friction points

Deficit countries
At equilibrium
Surplus countries
Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012.

2013 STRATEGIC TALENT MANAGEMENT FORUM

 Global forces and trends are changing
demands on employers and employees

Dramatic shifts in skill requirements for future growth,

coupled with increasing misalignment between
supply of/demand for talent worldwide
GWS
Talent 2021
Dispersed and diverse workforce, enabled by
technology to work anywhere, anytime, across
national/organizational boundaries in increasingly
innovative work arrangements

Ongoing cost pressures and continual belt-tightening

in most markets, increasing employers’ focus on
Transformative HR
maximizing workforce productivity
TM&R

Pressured, stressed workforce, struggling to do more

with less, looking for long-term security and stability
in a world that isn’t offering much of either

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 What are the strategic implications?

Re-skill technology
Sustainability
UP-SKIL WORK
DISAGGREGATION
L
Creative
sourcing
develop
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 How to respond

Grow and develop

Hire more from outside

Retain key people

Raise engagement

Improve performance
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 Savvy employers will need to think
differently about their practices in the future

Apply the Think more Embrace the Invest more Rethink and
same broadly virtual heavily restructure
rigor, effort – and workplace in retraining how
and creatively – and and certain work
sophistication about where support a reskilling is
to talent is wide accomplished
human capital sourced range of
planning as to different
business
Business Talent work
Virtual Rethinking
planning scenarios Re-skilling
rigor sourcing workplace work

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 Our latest research

Sustainable engagement
• Engagement is at risk
• Pay continues to be major headline, but career advancement is the new
retention risk
• Talent Paradigm – know the critical roles for future business success; know
your critical talent ; focus your interventions on those holding critical roles,
or your talent that shows critical potential – SEGMENTATION
• MIND THE GAP – about EE/ER differences and
about growing engagement gap

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 Behind these numbers are gaps in areas
particularly relevant in today’s environment

Traditionally Engaged Enablement Energy

● Belief in company goals ● Freed from obstacles to ● Can sustain energy

and objectives succeed at work needed at work
● Emotional connection ● Have resources to ● Have social supports in
(pride, recommendation) perform well work environment
● Willingness to give ● Can meet work ● Have sense of
extra effort to support challenges effectively enthusiasm and
success accomplishment at work

Ensuring people are Ensuring people have

capable of doing their capacity to perform at
jobs well their best

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 The payoff for closing gaps in the drivers
of sustainable engagement is substantial

3x 6.5
operating margin fewer days lost
High sustainable engagement An average of 7.6 days of lost
companies’ operating margins are productivity per year for
3x higher than those with the employees with high engagement
lowest levels of engagement vs. 14.1 days for the disengaged

41%
lower retention risk
Only 17% of employees with high
engagement are high retention risks
compared to 58% of disengaged
employees
Source: Towers Watson normative database.

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 The top drivers are influenced
by an employer’s value proposition,
EVP, and Total Rewards programs

Top Drivers of Sustainable Engagement

1 Leadership 2 Stress, Balance and Workload

● Effective at growing the business ● Stress levels at work are manageable
● Sincere interest in employees’ well-being ● Healthy balance between work and personal life
● Behave consistently with organization’s core values ● Work arrangements are flexible
● Trust and confidence in job being done ● Enough employees in work group to get job done right

3 Goals and Objectives 4 Supervision

● Good understanding of organization’s business goals
and steps needed to reach those goals
● Understanding of how job contributes to the
organization achieving its business goals
● Treats me with respect
● Encourages new ideas and ways of doing things
● Acts in ways consistent with his or her words
● Effective career development conversations

5 Image
● Organization highly regarded by general public
● Organization conducts its business with honesty and
integrity
Source: Towers Watson 2012 Global Workforce Study — Global.

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 Differentiate to attract and retain

Use the employee value proposition to drive the right

behaviors and performance.
Differentiate for key employee groups.

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 A formalized EVP helps organizations address
critical challenges with attraction, retention and
engagement of talent

5X
Companies that have adopted an more likely to report their
increasingly integrated approach to Total employees are highly
Rewards strategy, design and delivery engaged
decisions — supported by an
overarching Employee Value Proposition 2X
— are:
more likely to report achieving
financial performance
significantly above their peers

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 Top 10 Challenges of Talent Management

1. Attracting and retaining enough employees at all levels to meet the

needs of organic and inorganic growth.
2. Creating a value proposition that appeals to multiple generations.
3. Developing a robust leadership pipeline.
4. Rounding out the capabilities of hires who lack the breadth of
necessary for global leadership.
5. Transferring key knowledge and relationships.
6. Stemming the exodus of Gen X'ers from corporate life.
7. Redesigning talent management practices to attract and retain Gen
Y's.
8. Creating a workplace that is open to Boomers in their "second careers.
9. Overcoming a "norm" of short tenure and frequent movement.
10. Enlisting executives who don't appreciate the challenge.

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Questions

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