The Fight for Talent

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Information about The Fight for Talent
Business & Mgmt

Published on February 5, 2014

Author: KPMG_Canada

Source: slideshare.net

Description

Time for a more holistic approach to talent risk” reports how talent management is now firmly on the C-suite’s agenda with organizations competing for top talent on an unprecedented scale. For more information visit kpmg.ca/talentrisk

Time for a more holistic approach to talent risk Global risk survey calls for a new take on talent management January 2014

About this research 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? And how effectively are they mitigating against talent risks? KPMG International commissioned the 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 © 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. 2

5 Cs: Talent Risk Categories

The survey focused on five critical talent risk categories … Capability Capacity Risks associated with building the skills an organization needs to compete now and in the future – the breadth and depth of skills and capabilities present within a workforce, and how well aligned these are to an organization‟s needs. Risks around the succession into critical roles and retention of critical people and teams. In other words, will an organization be able to create and maintain the size and shape of workforce needed to deliver its business plan? Cost Connection What is the risk of a workforce becoming unaffordable? What will it cost an organization to recruit and retain the people it needs? Will it be able to afford the overall cost of its workforce? What is the risk of an organization‟s top talent becoming disengaged? In addition, will an organization‟s talent-related processes remain sufficiently joined-up? Will it be able to share talent between units in the way it needs to? Is it able to connect groups of high potential people together? Are leaders able to create an emotional connection between high potentials and the business? Compliance Risks relating to employee behavior, regulations and laws. This category covers both the need to ensure talent processes comply with local laws and regulations, as well as whether talent management is seen as a business critical process or an administrative process simply to „be complied with.‟ How concerned is your business? To what degree are you managing that concern? © 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. 4

Key Findings: Capability & Capacity Risks

Global Talent Risk Profile Highest Ranked Capacity and Capability risks dominated both in terms of perception and mitigation of risk and Least likely to be ranked Compliance talent risks was the most likely risk category to be listed as no risk at all by about 38% of the survey population © 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. 6

‘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 6% 3% 21% 20% We do not have succession plans 18% Not at all effective, lists with no action Somewhat effective, lists with regular action 32% Very effective, succession planning discussions Extremely effective, actively work with succors I don‟t know © 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. 7

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 9% 26% 10% 13% Less than 25% 26% to 50% 22% 20% 51% to 75% 76% to 90& More than 90% I don‟t know © 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. 8

Respondents were not optimistic about their approach to strategic workforce planning .... Approach to strategic workforce planning. 7% 4% 7% 22% 25% No strategic workforce planning Basic approach Simple approach Detailed approach 35% Complex approach I don't know © 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. 9

Big challenges for talent management 1 Organizations take a narrow view of talent management ■ There is a strong focus on the „traditional‟ areas of talent management – capability and capacity ■ This is coupled with a relative lack of concern about connecting and engaging with talent as well as enabling and encouraging collaboration 2 Insufficient focus on total cost of workforce 3 ■ There are a number of talent risks which appear in the list of top 10 risks identified but do not feature in the list of top 10 risks actively being managed: ■ Managers view performance management and talent review processes merely as something to comply with, rather than a business critical activity ■ Business leaders‟ inability to engage with, motivate and nurture business critical talent ■ An insufficient budget for managing and developing talent ■ Maintaining employee engagement in the face of a less committed, more flexible workforce © 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. 10

Key Findings: Connection-related talent risks

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 © 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. 12

In addition, effort does not appear to be expended consistently in such a way as to address the top 10 risks identified… Bottom of the list Respondents ranked the risks of their ‘business leaders inability to engage with, motivate, and nurture business critical talent’ as a top ten critical risk – yet awarded it fell to almost the bottom of the list of risks that were least actively managed and 33% Only 33 percent of respondents felt their business unit leaders were ‘incentivized to share talent across organizations for the benefit of the business and the talent – seemingly at odds with the inclusion of development, retention and several other risks within the top 10 risks. © 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. 13

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? © 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. 14

Key Findings: Cost-related talent risks

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? 11% 24% 27% No Yes, in a limited scope Yes, extensively I don‟t know 38% © 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. 16

What does this mean for Canadian companies?

What does this mean for Canadian companies? ■ Retention continues to be a key concern consistent with last year‟s KPMG‟s global survey – Canada rated this the #1 Challenge in the Rethinking Human Resources in Changing World Survey ■ Survey reports organizations are downplaying talent risks in the areas of connection, diversity and performance management ■ Lack of emphasis on “connection” is a concern given the nature of work today as well as the entry of younger generations into the workforce ■ In Canada, downplaying Diversity has increasing importance with the recent announcement from the Ontario Securities Commission requiring companies to annually publish a description of their diversity policies. This new standard is the first of its kind in Canada and will likely be the catalyst for change in diversity in many organizations. ■ Cost as a driver/concern is best considered a more balanced view of talent needs and challenges ■ The survey points to a difference of opinion between HR and line Managers about talent needs and priorities © 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. 18

Final Thoughts: Organizations must embrace a more holistic approach to talent management Hardwire talent risk into wider enterprise risk management frameworks Holistic Approach © 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. 19

Final Thoughts: Organizations must embrace a more holistic approach to talent management Build a talent strategy based on an understanding of what the organizations needs to win in the future Hardwire talent risk into wider enterprise risk management frameworks Evaluate talentrelated decisions for return on investment Holistic Approach Seek to understand and track the total cost of workforce 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 © 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. 20

Contact KPMG in Canada to continue the conversation www.kpmg.ca/talentrisk

Visit us at kpmg.ca/talentrisk kpmg.com/socialmedia © 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 endeavor 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.

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