1. ACHIEVE TALENTMANAGEMENT SUCCESS What does it Take to Compete for Talent?

2. ACHIEVE TALENTMANAGEMENT SUCCESS Turbulent Times As many as 51 million jobs worldwide could be lost this year because of the global economic crisis, says the International Labour Organization (ILO)Copyright 2009 The Newman Group. All rights reserved. 3. ACHIEVE TALENTMANAGEMENT SUCCESS 4 Key Trends in Talent Market Aging workforce What percent of your workforceis retirement eligible? Shifting demographics Are you prepared for the multi-generational needs? Globalization How will you innovate andchange the way work is doneto leverage talent from aroundthe world Technology Text/instant messaging, Socialnetworking is connectingpeople with no boundaries. Doyou Twit? Copyright 2009 The Newman Group. All rights reserved. 4. ACHIEVE TALENT MANAGEMENT SUCCESS Key enablers to compete for Talent Is there a compelling messagefor people to want to workhere?Have we defined the strategiesto effectively compete for anddeliver the talent needed?Do we have a structure that isaligned to carry out thestrategies?Does the technology andprocess enhance or inhibit oursuccess?Is your operation consistentlydelivering results? Copyright 2009 The Newman Group. All rights reserved. 5. ACHIEVE TALENT MANAGEMENT SUCCESS Down economy opportunities Take advantage of more manageable work loads Talent upgrading/Pipelining Strategic Planning Re-tooling Experimentation and Innovation Focus on holistic Talent Management Copyright 2009 The Newman Group. All rights reserved. 6. ACHIEVE TALENT MANAGEMENT SUCCESS Employment Branding Copyright 2009 The Newman Group. All rights reserved. 7. ACHIEVE TALENTMANAGEMENT SUCCESS Two fundamental goals of the employer brand1. Provoke the right talent to leave whatever they aredoing and accept employment with your organization Attraction 2. Induce them to resist offers from other organizationsand continue their employment with yours Retention If you dont get the 2nd goal, the first will be a waste oftime and money Copyright 2009 The Newman Group. All rights reserved. 8. ACHIEVE TALENT MANAGEMENT SUCCESS Employment Value Proposition AttributesOrganization Rewards OpportunityRespectEthics/IntegrityCompensationStabilityEmpowermentHealth Benefits Future Career Opportunity Product/Service QualityRetirement Benefits Developmental Opportunity Technology LevelMeritocracyVacationDiversityGrowth RateMarket PositionFormal/Informal Work Environment People Work Brand AwarenessSocial ResponsibilityIndustry Desirability Co-Worker QualityWork Life Balance Great Employer People ManagementJob Interests AlignmentRecognition Collegial Work EnvironmentLocationCustomer Prestige Manager QualityRecognition Environmental Sr. Leader ReputationInnovative Responsibility CamaraderieLevel of Impact Organization SizeBusiness Travel Risk TakingCopyright 2009 The Newman Group. All rights reserved. 9. ACHIEVE TALENT MANAGEMENT SUCCESS The Pathway to Competitive Advantage1. Preference: The employment related attributes mostpreferred by your employees.2. Perception: How your employee population perceivesyour company is performing against the most preferredattributes.3. Core Attributes: Those attributes which are both highlypreferred and perceived as strengths in a company.4. Competitive Advantage: Core Attributes which differfrom industry norms. Copyright 2009 The Newman Group. All rights reserved. 10. ACHIEVE TALENT MANAGEMENT SUCCESSSurvey Data Business Unit #1 Score Opportunity Ethics/Integrity 3.89no action necessary Work Life Balance3.63no action necessary Job Interests Alignment3.62no action necessary Compensation 3.0429% Impact Future Career Opportunity3.0042% Impact Manager Quality3.0038% Impact Development Opportunity2.9045% ImpactBusiness Unit #2 Score Opportunity Ethics/Integrity 4.60no action necessary Manager Quality3.83no action necessary Level of Impact3.4036% Impact Stability3.4029% Impact Future Career Opportunity3.2936% Impact Work Life Balance3.2029% Impact Compensation 2.8029% ImpactCopyright 2009 The Newman Group. All rights reserved. 11. ACHIEVE TALENTMANAGEMENT SUCCESS Aligning the EVP/Brand with Candidate & Employee touch points The Retention factor: Marketing the message:An EVP study helps to A well defined EVP identifies theunderstand what is mostcompetitive differentiators basedimportant to critical talent.on the preferences of criticalTherefore where HR talent and the core attributes investment dollars should based on their perceptions. The be prioritized and spentcombination of that study spellsout the competitive advantage to include in the employmentbranding messages The Evaluation process:Candidates are evaluating the company as much as the company is evaluating the candidate. Educating the recruitment teams and hiring managers on the EVP study results allows them to evaluate and sell candidates on realistic aspects of the culture that ensure a good organizational fitCopyright 2009 The Newman Group. All rights reserved. 12. ACHIEVE TALENT MANAGEMENT SUCCESS Talent Strategies Copyright 2009 The Newman Group. All rights reserved. 13. ACHIEVE TALENTMANAGEMENT SUCCESS Workforce Planning Maturity ModelCopyright 2009 The Newman Group. All rights reserved. 14. ACHIEVE TALENTMANAGEMENT SUCCESS Ordinary Metrics & Measures with WFP Lens Turnover Typically we look at Voluntary vs. Involuntary Focus is on reducing voluntary Performance Ranking Typically 5 point rating scale Often a forced distribution By looking at turnover data by performance category, you can create a Retention Index Comparing the average turnover rate to the rate of turnover within a specific categoryCopyright 2009 The Newman Group. All rights reserved. 15. ACHIEVE TALENTMANAGEMENT SUCCESS Retention Index Formula: Ave Turnover % Ave Turnover % in Demographic = Retention IndexPerformance CategoryDoesFar Needs to not Performance Rank AllExceedsMeetsExceeds Improve meet# Employees 6500300 1300 3500 1000400Total Turnover1625 75450600200300Turnover %25% 25%35%17%20%75%Retention Index0% -10% 8%5% -50%Talent Leak Copyright 2009 The Newman Group. All rights reserved. 16. ACHIEVE TALENT MANAGEMENT SUCCESS Retention IndexFormula: Ave Turnover % Ave Turnover % in Demographic = Retention Index Employee TenureMore 11-155-10 1-4Less than 1Tenure All than 15 years yearsyearsyear # Employees 6500 300130035001000 400 Total Turnover162525 200700 550150 Turnover %25% 8%15% 20% 55% 38% Retention Index17%10%5% -30%-13% Talent Leak Copyright 2009 The Newman Group. All rights reserved. 17. ACHIEVE TALENT MANAGEMENT SUCCESS Most Common Talent Acquisition Strategies Internal mobility/Retention Employee referral Diversity recruiting University relations Advertising and Job Posting Direct sourcing/Networking Research & Competitive Intelligence Associations and Communities of Practice Talent pipelining and Candidate RelationshipManagementCopyright 2009 The Newman Group. All rights reserved. 18. ACHIEVE TALENT MANAGEMENT SUCCESS Recruiting Organization Structure Copyright 2009 The Newman Group. All rights reserved. 19. ACHIEVE TALENTMANAGEMENT SUCCESS Organizational Structure Centralized Decentralized Drivers Fewer Locations The more centralized the Standard process function is, the Economies of scale greater demand Functionally alignedthere is to decentralize Primary Challenge Customer touch Accommodate varianceCopyright 2009 The Newman Group. All rights reserved. 20. ACHIEVE TALENT MANAGEMENT SUCCESS Organizational Structure CentralizedDecentralized Drivers Geographically disperse Specialty/Unique jobs The more decentralized Unique processes the function is, the greater demand there Customer aligned is to centralize Primary Challenge Economies of scale Standardization Copyright 2009 The Newman Group. All rights reserved. 21. ACHIEVE TALENT MANAGEMENT SUCCESS Organizational Structure CentralizedDecentralizedDrivers High customer touch Economies of scaleHybrid model is best Standard and unique processesof both worlds Flexible resource alignment Centralized DecentralizationPrimary Challenge Budget model Shared accountability Copyright 2009 The Newman Group. All rights reserved. 22. ACHIEVE TALENTMANAGEMENT SUCCESS Hybrid Model Center of ExcellenceBrandingOutsourcing partner Technology Process & Policy Definition relations Vendor RelationsUniversity RelationsReports & Metrics Diversity Copyright 2009 The Newman Group. All rights reserved. 23. ACHIEVE TALENTMANAGEMENT SUCCESS Hybrid Model - AdvancedCustomerGroups by BUor geography Customer Care Group Aligned w/Business Candidate Care GroupAligned Talent Pools Infrastructure, partnerrelations,Process & Policy DefinitionTechnology Interview Scheduling administrative supportOutsourced Partner relationsVendor Relations Offer Management Metrics & reportingBranding Research/Competitive Intel Copyright 2009 The Newman Group. All rights reserved. 24. ACHIEVE TALENT MANAGEMENT SUCCESS Process & Technology Copyright 2009 The Newman Group. All rights reserved. 25. ACHIEVE TALENTMANAGEMENT SUCCESSTNG Optimization Model Operational support is thecore driver of continuousimprovement Each segment representscritical success factors: Technical infrastructure Process alignment Information management Change management Continuous cycle drivenby operations Copyright 2009 The Newman Group. All rights reserved. 26. ACHIEVE TALENTMANAGEMENT SUCCESS Where do we go from here?Our industry has been working very hard at becomingmore and more efficient at being reactiveCopyright 2009 The Newman Group. All rights reserved. 27. ACHIEVE TALENTMANAGEMENT SUCCESS The Fish Net MethodCopyright 2009 The Newman Group. All rights reserved. 28. ACHIEVE TALENT MANAGEMENT SUCCESS Whale Watching More aggressive recruitingtactics are being used in thecorporate environment Sometimes referred to aspredatory recruiting Poaching There is no value exchange,only taking This is not a sustainable formof networking Copyright 2009 The Newman Group. All rights reserved. 29. ACHIEVE TALENTMANAGEMENT SUCCESS Manager Involvement in the Process Movement toward manager self service Goal is to establish accountability for hiring In what part of the hiring process do we really want the manager to be engaged?Once you finish entering those requisitions, HR said we should have at least five top quality candidates to talk to in just 4 weeks!Copyright 2009 The Newman Group. All rights reserved. 30. ACHIEVE TALENTMANAGEMENT SUCCESS Building a Managers Network Managers should beengaged in maintaining anetwork of talent True networking is notaggressive It is about establishing andleveraging relationships There is value exchange ina relationship A value based networkbecomes a sustainablesource Copyright 2009 The Newman Group. All rights reserved. 31. ACHIEVE TALENTMANAGEMENT SUCCESS New Role for Talent AcquisitionBecome a Talent Coach Assist the Hiring Manager in developing and maintaining a network of enough people to hire from (20 35).Identify prospects to be introduced to the Managersnetwork (avoid the old boy network)Provide the tools for managing the Network (e.g.LinkedIn, Salesforce.com, etc.)Attend industry events with the Manager and organizesocial eventsAssist the manager maintain periodic, systematiccommunication with network members Create a Talent minded cultureCopyright 2009 The Newman Group. All rights reserved. 32. ACHIEVE TALENT MANAGEMENT SUCCESS Establishing New Role for Talent Acquisition Step I Identify Managers who will be hiring critical talent Determine the number of networks to be established and relative sizerequirements based on hiring goals, and demographics Establish criteria for inviting participants to the network Educate managers on networking basics and protocol Step II Interview leaders who already operate as talent scouts Determine the tools to be used for managing the information Identify opportunities to provide relevant and meaningful content to participants(news letters, press release, CE opportunities) Develop a calendar of events (trade shows, ball games, association meetings,etc.) Step III Establish goals for network production, number of hires and number of referrals Identify method for data to be captured different than source of hire Monitor results and make adjustmentsCopyright 2009 The Newman Group. All rights reserved. 33. ACHIEVE TALENTMANAGEMENT SUCCESS Visualizing The NetworkCopyright 2009 The Newman Group. All rights reserved. 34. ACHIEVE TALENTMANAGEMENT SUCCESS Visualizing The NetworkCopyright 2009 The Newman Group. All rights reserved. 35. ACHIEVE TALENTMANAGEMENT SUCCESS Private Talent Community Portal CRMATSCopyright 2009 The Newman Group. All rights reserved. 36. ACHIEVE TALENTMANAGEMENT SUCCESS Operational SupportCopyright 2009 The Newman Group. All rights reserved. 37. ACHIEVE TALENTMANAGEMENT SUCCESS Reporting & Metrics Strategy Develop a reporting strategy that aligns with your business strategy Identify and define organizational goals and objectives Identify specific metrics and measures for each goal Define reports to manage and maintain visibility Identify GapsCopyright 2009 The Newman Group. All rights reserved. 38. ACHIEVE TALENT MANAGEMENT SUCCESS Steps to Achieve ROIReturn onInvestmentFinancial Impact Value-Added Talent AcquisitionBusinessStrategy Retention/Turnover PerformanceCustomer SatisfactionAdoptionSystem ROITraditional User Acceptance/Data IntegrityEffective Recruiting OperationsTalent Acquisition System Implementation Copyright 2009 The Newman Group. All rights reserved. 39. ACHIEVE TALENTMANAGEMENT SUCCESS Thank You!Questions? ed.newman@futurestep.comwww.tng.futurestep.com Copyright 2009 The Newman Group. All rights reserved.