hr summit 2014 – laura croucher’s presentation

October 2014

Beyond the High

Potential Model:

A New Approach to

Talent Management

2© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG

International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

#Fight4Talent

Time For A More Holistic Approach To Talent Risk

And how effectively are they

mitigating against

talent risks?

Organizations are

competing for

talent on an

unprecedented scale

In this context, how

effectively are organizations

identifying talent risks to their current and future

business growth?

KPMG International

commissioned

Brandon Hall Group

to conduct a

global study of talent-related risks

1,200 Human Resources (HR), talent, learning and business executives

54 countries

Government and 15 different industries represented

Just over a quarter of respondents work in companies with 30,000+ employees

Series of qualitative interviews



#Fight4Talent

Unleashing The Talent Within

1

Talent management

strategies too focused on so

called high potential and

senior leaders, rather than

creating a talent

system within

organizations.

2

The workforce of the future

won’t focus on individuals,

but instead on talented

organizations and

talent ecosystems.

3

Creating talented

workforces means creating

the right culture and

ecosystem to empower

employees to work

collaboratively.

4

The ‘war for talent’ is a

fool’s errand - the impact

that a high performing

individual can have, when

compared to a high

performing workforce

is insignificant.

Key Findings:

Capability &

Capacity Risks



#Fight4Talent

An insufficient budget for managing and developing talent Cost

Salary expectations of candidates with critical skills become too high Cost

Difficulties in recruiting top talent Capability

Salary expectations of candidates with critical skills become too high Capability

Skills and capabilities required by the business in the near future are

not developed Capability

A lack of compelling development opportunities for top talent Capability

A lack of depth of internal candidates for critical roles Capacity

An insufficient pipeline of future leaders Capacity

What talent risks were respondents most worried about?

1

2

3

4

5

6

7

8

Business leaders’ inability to engage with, motivate and nurture

business critical talent 9 Connection

Managers view performance management, talent reviews et c as a

process to comply with rather than as business critical activities 10 Compliance



#Fight4Talent

21%

18%

32%

20%

6%3%

Don't Have

Not Effective

Somewhat Effective

Very Effective

Extremely Effective

I don’t know

‘An insufficient pipeline of future leaders’ ranks as #1 talent risk and

yet few organizations have effective succession planning in place...

Effectiveness of Succession Planning



#Fight4Talent

26%

22%

20%

13%

10%

9%Less than 25%

26% to 50%

51% to 75%

76% to 90&

More than 90%

I don’t know

26% of organizations filled less than 25% of their Critical Roles with

internal candidates

Percentage of Critical Roles filled with Internal Candidates

in last year



#Fight4Talent

Which talent risks were respondents actively managing?

A lack of depth of internal candidates for critical roles 1 Capacity

An insufficient pipeline of future leaders 2 Capacity

Difficulties in retaining key people 3 Capability

A lack of clarify over which roles are ‘critical’ to deliver business value 4 Cost

The total cost of the workforce becomes unsustainable in relation to

current revenues 5 Cost

Skills and capabilities required by the business in the near future are

not developed 6 Capability

A lack of compelling development opportunities for top talent 7 Capability

Difficulties in retaining to talent 8 Capability

The cost of retaining top talent becomes unsustainable 9 Cost

Salary expectations of candidates with critical skills become too high10 Cost

Key Findings:

Connection & Cost-

related talent Risks



#Fight4Talent

The top 10 list of risks respondents were least worried about

featured a number of Connections risks…

Talent management processes become non-compliant with local

regulation, for example data protection 1 Compliance

International mobility policies and processes make it difficult to

transfer talent between countries 2 Connection

Employee relations hinder rather than help talent management

processes 3 Compliance

A lack of workforce diversity 4 Capacity

An inability to define the new skills or capabilities that will be needed

by the business in the near future 5 Capability

Business leaders’ reluctance to share talent across the organization6 Connection

Business leaders’ and HR/talent team’s inability to work effectively

together to manage talent 7 Connection

A lack of clarity over which roles are ‘critical’ to deliver business value 8 Capacity






#Fight4Talent

A surprising lack of concern about connecting and engaging

with talent…

No concern? The survey showed talent managers are relatively

unconcerned about:

■ International mobility policies and processes making it difficult to transfer

talent between countries

■ A lack of diversity in the workforce

■ Business leaders’ reluctance to share talent across the organization

■ Business leaders’ inability to engage with, motivate and nurture business

critical talent



#Fight4Talent

Talent Review Processes are also not used effectively as an

engagement driver...

Do your organization’s formal talent review meetings result in

development plans for which leaders take responsibility?



#Fight4Talent

Cost related risks featured at the bottom of the top 10 list of risks

respondents were least worried about featured …

Talent management processes become non-compliant with local

regulation, for example data protection 1 Compliance

International mobility policies and processes make it difficult to

transfer talent between countries 2 Connection

Employee relations hinder rather than help talent management

processes 3 Compliance

A lack of workforce diversity 4 Capacity

An inability to define the new skills or capabilities that will be needed

by the business in the near future 5 Capability

Business leaders’ reluctance to share talent across the organization6 Connection

Business leaders’ and HR/talent team’s inability to work effectively

together to manage talent 7 Connection

A lack of clarity over which roles are ‘critical’ to deliver business value 8 Capacity






#Fight4Talent

24%

38%

27%

11%

No

Yes, in a limited scope

Yes, extensively

I don’t know

Over 60% of organizations do not track total cost of workforce at all,

or use it only in a limited scope...

Does your organization use 'Total Cost of Workforce' as a

key metric?



#Fight4Talent

The three big challenges for talent management

■ Performance management seen as compliance activity vs. business critical

■ Leaders’ inability to engage with, motivate and nurture business critical talent

■ Insufficient budget for managing and developing talent

■ Maintaining engagement in the face of a less committed, more flexible workforce

2 Insufficient focus on total cost of workforce 2

Organizations take a narrow view of talent management 1

32 Talent risks in top 10 identified but not in top risks being managed3

What does this

mean for

Canadian

companies?



#Fight4Talent

Cost

Capacity

Capability

Compliance

Connection

Workforce Analytics

Strategic Workforce Planning

Competency Framework/Career Path and Succession Planning

On-going monitoring and continuous improvement

Performance Management and Employee Value Proposition

Actions organizations can take for the talent risk areas….



#Fight4Talent

KPMG talent framework

How will

we win in

the future?

How do we

manage our

talent risk?

How do we

measure the

impact on the

organisation?

How do we

organise and

enable our

talent ‘team’?

How do I pull

all these unique

requirements into

a talent plan for

the future?

PO

LIT

ICA

L

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ON

OM

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SO

CIA

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TE

CH

NO

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EN

VIR

ON

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EA

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R P

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AB

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Y

INC

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AS

ED

MA

RK

ET

SH

AR

E

EN

HA

NC

ED

CU

ST

OM

ER

SA

TIS

FA

CT

ION

MO

RE

IN

NO

VA

TIO

N

IMP

RO

VE

D R

EP

UT

AT

ION

STRATEGIC TALENT

REQUIREMENTS

TALENT RISK

MANAGEMENT

INVESTMENT AND

MEASUREMENT

GOVERNANCE AND

INFRASTRUCTURE

YOUR UNIQUE

TALENT PLAN

ACQUIRE

AND PLACE

DEVELOP

AND CONNECT

ENGAGE

AND RETAIN



#Fight4Talent

Final Thoughts: Organizations must embrace a more holistic

approach to talent management

Holistic

Approach

Pause to consider whether all major

talent risks have been identified & prioritized – does the business

agree?

Work with leadership to connect and

engage with talent across the

organization

Embed strategic & holistic talent planning into

business planning –it’s not a standalone

exercise

Seek to understand and track the total

cost of workforce

Evaluate talent-related decisions

for return on investment

Hardwire talent risk into wider enterprise

risk management frameworks

Build a talent strategy based on an

understanding of what the organizations

needs to win in the future

© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent

member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular

individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such

information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on

such information without appropriate professional advice after a thorough examination of the particular situation.

kpmg.ca/talentrisk

LAURA CROUCHERPartner, Advisory Services National Lead People & Change (Canada)

KPMG LLP

[email protected]

@croucher_laura

Laura Croucher KPMG

+1 416-777-3417

Follow the conversation:

#KPMG

#Fight4Talent

hr summit 2014 – laura croucher’s presentation

Recruiting & HR

kpmg llp

talent management2

talent ecosystems

talent riskand

talent system

global study of talent

talent reviews et c

business critical activities