Talent Management -Attraction & Retention by Eustace Gomez

1. Talent Management -Attraction & Retention by Eustace Gomez

2. Attracting & Retaining Talent • The Playing Field - Environment • Critical Issues in Talent Management • HCI Asia Pacific Survey 2002 - Malaysia Report • Attracting & Retaining Techniques - Case Study • Use of Technology in Talent Management • Alternative Strategies in Talent Management • Young Talent Sourcing vs Old Talent • The War for Talent • Conclusion

3. The Playing Field - Then….. October 30, 1973

4. And now…. The 21st Century We’ve got the perfectfit for you!Sign here, kid. October 19, 2000

5. The Changing Employee Environment • Power has moved to high performing employees • High performer opportunities have never been greater • Employees are demanding and moving to organisations that • provide appropriate recognition & reward • innovate and have access to technology • Entrepreneurship versus stewardship is becoming the fundamental distinction

6. The Changing Employee Environment • Rigid pay scales abandoned in favour of flexible compensation: • rewards and challenges that established companies have not been offering • incentives for employees willing to take risks • equity is the new currency • Stock options and bonuses often tied to performance goals

7. Attraction vs Retention • 83% of employers are having difficulties in attraction • 65% are having difficulties in retention • The shortage of young employees and the aging of the workforce will continue for the next two decades * Extracted from HRT 2002 Global Meeting*

8. CRITICAL ISSUES & CHALLENGES

9. RETENTION • Shortage of Talent in Critical Areas • Employers will do everything possible to retain best talent • Affects everything from compensation & benefits to work design “The most cost-effective employee you can hire is the one who already works for you”

10. Workforce Management • Rapid growth of post 50 working population will create a surplus of people for higher level management jobs available • Companies must have policies & practices to address this issue • Will early retirement be offered or will jobs be changed?

11. Dwindling Number of Young Employees • Young talents will be smallest labour pool • Will be most competitive challenge as they form the feedstock for future growth • Will be looking for most challenging opportunities with best rewards • Current HR practices and policies may not meet their expectations

12. HCI Asia-Pacific Survey 2002 Malaysia Report

13. Branding as Attraction Tool • Evidence in the HCI Malaysia report showed that retention programs need to be implemented to retain the best people in Malaysian firms • Employers need to invest to improve branding I.e. To position themselves as “Employer of Choice” • The best candidates work with the best employers

14. Who would you work for? Brands evoke emotions. Positive or negative images. Employees choose employers they can believe in.

15. Making a Choice • Employees choose companies they believe in, • those with compelling value propositions • Employees stay because those beliefs are • reinforced and reaffirmed -- messages carried • consistently throughout people/HR policies and • programs • Employees, collectively, further embody an • organization’s message – they re-affirm this • message to potential new hires Source: XXX’s Strategic Rewards Survey

16. Attraction and Retention Techniques

17. ATTRACTION THE STEPS • Define your business strategy • Define the required organization structure and competencies • Assess current status and define gaps • Develop manpower plan • Develop the recruitment strategy • Align with HR practices • Formulate and implement the employee brand

18. Critical Considerations • Sources of Talent - universities, colleges; professional associations. Develop a network to source the best • IT - develop database of high potential candidates • Internships - best means of pre-employment assessment • Assessment - define and implement proper assessment processes. Face-to-face interviews are not effective by themselves • Sell the company - why should they work for you? • Formulate and implement the employer brand

19. RETENTION THE STEPS • Define organizational demographics • Define employee expectations - career growth; development; work environment; compensation & benefits • Assess current programs • Think “out of the box” - talent sharing; telecommuting; flexi-time • Consider employee costs - fixed vs variable • Reward options - variable bonus; LTI; equity • Specify link to performance

20. Critical Considerations • Compensation & Benefits - typical structure is very rigid. Consider more flexible options including flexi-benefits to cater to different lifestyles and age groups. • Rewards to Performance - significant differentiation between high performers and average performers • Competency Development - Create opportunities for job expansion or job rotation to develop new competencies • Talent Management - Identify high potentials early and implement retention and development programs

21. CASE STUDIES

22. Case Study 1 HAMILTON STANDARD Team-Based Staffing Process STAGES PROCESS Community Introduction Community organizations are given details of vacancies and asked to refer candidates First “screen” Employees review resumes. Qualified candidates called for Information Session Information Session Candidates given realistic job previews. Interested candidates given applications Second Screen Employees review applications and select best candidates Five -Stage Assessment Basic Skills Test - Manufacturing Skills Test - Technical Interview - General Interview - Team Exercise Wrap - up Interviewers decide by consensus

23. Staffing Toolkit for Managers - Aetna Staffing Toolkit has sections to address - sourcing candidates; interviewing and selecting internal and external candidates; new employee orientation. • Screening - LinguiSystems 4 step selection process : screening; group interview; work project; work team interview • Database - National Semiconductor Qualified candidates are sourced from an applicant database of over 100,000 resumes.

24. Conclusion • 21st century approach to Talent Management • Technology to play a bigger role • Innovation in attraction / retention “mixes” to meet continually changing environment Leaders do not follow, Leaders differentiate