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The Talent Opportunity EMPOWERMENT IN A DISRUPTED WORLD

Impending Workplace Disruption

AUTOMATION/ROBOTICS

GLOBALIZATION

3D PRINTING

DIGITALIZATION

MACHINE LEARNING

A New Socio-demographic Structure

MULTICULTURALISM

ADVANCES IN FERTILITY

LONGEVITY

RISE OF THE FREE AGENT

DIGITAL SOCIAL WORLD

FUTURE OF JOBS FUTURE OF TALENT

Responding To The New World Order

Give me a clear path to promotion

and help me thrive at work

Help me plan for an unknown future,

while mitigating expense risk

About Mercer’s 2017 Global Talent Trends Study

5400+employees

1,700+HR professionals

400+executives

20 industriesAgriculture/Forestry

Automotive

Construction

Consumer Goods

Education

Energy

Financial Services

Healthcare

High Tech

Hospitality

Insurance/Reinsurance

Internet Based Services

Life Sciences

Logistics/Supply Chain

Manufacturing

Mining

Professional Services

Retail

Telecommunications

Utilities

G L O B A L L Y

670employees

143HR professionals

113executives

U S A

Macro Trends Impacting The World Of Work

Aging workforce

Technology at work

Talent scarcity

WHAT ARE EXECUTIVES IN THE

US MOST CONCERNED ABOUT?

D I S R U P T I O N O N T H E H O R I Z O N

Strength of emerging market economies

Change inlabor regulations

Change in border control

Mercer Talent Trends 2017: Key Findings

GROWTH

BY DESIGNTHE QUEST

FOR INSIGHT

A SHIFT IN

WHAT WE VALUEA WORKPLACE

FOR ME

A T T R A C T & R E T A I N

T O M O R R O W ’ S T A L E N T

B U I L D F O R A N

U N K N O W N F U T U R E

C U L T I V A T E A

T H R I V I N G W O R K F O R C E

Growth By Des i gn

ORG. REDESIGN BEING PROPOSEDUS C-suite: How are you planning to change your

organization design over the next two years?

Moving support

functions to

shared services

45%

Flattening the

organization

structure

36%

Eliminating roles,

functions,

departments

27%

Developing

project-based or

other special units

24%

WHAT IS DRIVING THIS CHANGE?

Increased

automation

Greater

customer

intimacy

Reduced

costs

Increased

agility

Greater

efficiency

93%of executives in the US are planning a redesign

in the next 2 years

A Shift In What We Value

of companies in the US plan to make changes to increase transparency of executive pay

82%

W H AT W O U L D M A K E A P O S I T I V E I M PA C T O N Y O U R W O R K S I T U AT I O N ?

1. Compensation that is fair & market competitive

2. Opportunity to get promoted

3. Leaders who set clear direction

4. Working with the best & brightest

5. Career path information

6. Transparency on pay calculations

7. More flexible work options

8%of employees in the US want to be recognized and rewarded for a wide r range of contributions

9EMOTIONAL

CONTRACTUALCAREER

WORKPLACELIFESTYLE

COMPENSATION BENEFITS

AFFINITYPRIDE

PURPOSE

CULTURAL ALIGNMENT

A Shift In What We ValueW H AT ' S H A P P E N I N G W I T H

P E R F O R M A N C E M A N A G E M E N T I N T H E U S ?

Changes to goal cascade or calibration

83%

Introduction ofcontinuous feedback

80%

Shift of focus to careers and future contribution

83%

T O R AT E O R N O T T O R AT E

34% of companies eliminated ratings last year

About 30% added or removed forced rankings in 2016, but 40% of those are planning to reverse their decision in 2017

Just 11% have disconnected base salary adjustments with

performance metrics

W H AT E M P L O Y E E S W A N T

I N T H E U S

A Workplace For MeVOICE OF

THE EMPLOYEE: “Help me invest in myself”

Technology enables individualized choice without adding an undue administrative burden for HR

Me, Inc.BALANCING MY WORK/LIFE

62% in the US want their company to offer more flexible work options

CARING FOR MY HEALTH

48% of employees in the US want their company to focus more on their health and wellness

STEERING MY CAREER

1 in 3 employees in the US do not feel empowered to create their own career success at work

MANAGING MY MONEY

Mercer research shows that employees spend 13 hours per month worrying about money matters at work

A Workp l a ce Fo r Me : F l e x i b i l i t y

WHAT WOULD MAKE YOU WORK FOR ONE COMPANY OVER ANOTHER?

Recreationfacilities

5%

Financialadvice

10%Well being

services

10%

Fitnessfacilities

19%

OthersTop 6

Employeeswant more

time off

4-day work week

Additional paid holidays

Unlimited paid vacation

Paid holiday trips

Summer Fridays

4yr @ 80%pay + 1 year off @ 80% pay

FLEXIBLE WORK ARRANGEMENTS

IN THE US

POLICY

68%

AD HOC

25%

CORE EVP

40%

FLEXIBILITY IN PRACTICE

1 in 2 concerned about promotion

1 in 3 requestedbut turned down

78% of employees in the US would consider working on a contract basis

The Quest For Insight MISMATCH IN TALENT ANALYTICS

HR

Analytics used

EXEC

Most valuable

Key drivers

of engagement

Team

performance

Reasons to

join

Risk of

burnout

Effective

training

Reasons to

leave/stay

Who is likely

to leave

More opportunity for progress

USE OF HR ANALYTICS

MORE POWERFULLESS POWERFUL STRATEGIC VALUE

Analyticsnot used

Stage 1Basic reporting

& trend analytics

Stage 2Benchmarking

and correlations

with business metrics

Stage 3Cause/effect

analysis of key workforce outcomes

Stage 4Predictive analytics

2017 2016

The Quest For Insight

INNOVATIONSIn the quest to open up the pipeline,

games and tools to source qualified talent or speed up the sifting process have exploded

Network Analysis

Social Data

Cluster Analysis

TALENT DATACompanies in the US are using the following tools to understand their talent

(% currently using or planning to in 2017)

Nearly 70% use innovative learning methods such as games, mobile enabled apps and virtual tools to support training and development initiatives

Onlineassessment for

culture fit

87%

assessmentsPersonality Cognitive/ability

assessments

87% 86%

Game-basedassessments

71%

Virtualassessment

centers

79%

Build For An Unknown Future

Mitigate risk by building a diverse portfolio of skills,

sharing knowledge, and encouraging innovation

Improve agility by simplifying decision making,

promoting lifelong learning, and improving mobility

Quantify future-focused capability gaps and amplify

impact through integrated people planning

HR believes managers are well equipped to manage contingent workers today

OUTSIDE TALENT MIGHT OFFER THE BEST

OPPORTUNITY TO ADDRESS THE SKILLS GAP

MOST IN-DEMAND SKILLS IN US

FOR 2017

INCLUSIVE LEADERSHIP

INNOVATION

PREDICTIVE ANALYTICS

VIRTUAL COLLABORATION

CHANGE MANAGEMENT

SALES

MANAGING TALENT IN A DISRUPTED WORLD

(US)

Today 41% of companies in the US are confident in their set up to provide outplacement services

to displaced workers

1 in 5 C-suite executives are confident in their

organization’s ability to reskill displaced workers

44% are confident in their ability to

redeploy talent internally

53% are confident in their ability to fill

newly vacant positions with the right external talent

Tap Into The Entire Talent Pool – Focus On Tomorrow

Cultivate A Thriving Workforce

Build a contribution culture: clarify direction,

encourage collaboration, get out of the way

Differentiate your workplace around

aspects of flexibility, health, and wellbeing

Understand talent flows, identify what matters

to your talent pools, and address choke points

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#WHENWOMENTHRIVE

The Changing Employment LandscapeBUSINESS MODEL DISRUPTIONS

Bus i ne s s , Peop l e & So c i e t y

I M PACT FE LT ALRE ADY 2 0 1 8 – 2 0 2 02 0 1 5 – 2 0 1 7

Mobile Internet and

Cloud Technology,

Crowd sourcing

Big Data

Analytics

Young

Demographics in

emerging markets

Changing Nature of

Work and Societal

Norms

The Internet of

Things

Advanced

manufacturing and

3D printing

Longevity and

Ageing

Societies

Women’s

Economic Power,

Aspirations

Robotics, Autonomous

TransportArtificial

Intelligence

Five Generations in the

Workforce & Multiculturalism

Source: Future of Jobs Report, World Economic Forum

JOBS GROWING AT THE QUICKEST RATES HAVE THE LOWEST

REPRESENTATION OF WOMEN

MANAGEMENT

25%

ARCHITECTURE

&

ENGINEERING

11%

COMPUTER

&

MATHEMATICAL

23%

According To The WEF’s Future Of Jobs Report, Dislocation Has The Greatest Impact On Women

In the Technology industry

specifically, as career level

rises, female representation

severely declines.

Despite these challenges,

there are also many

opportunities for women,

business & society.

L I N K S H R P O L I C I E S AN D P R AC T I C E S T O W O R K F O R C E R E S U LT S

AN D P R E D I C T S F U T U R E R E P R E S E N TAT I O N

O R G A N I Z AT I O N S

600+

With workforce data covering

1 . 3 M I L L I O N W O M E N

C O U N T R I E S

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WHEN WOMEN THRIVE, Businesses Thrive Research & Key Findings

Gender equality unreachable

by 2025

promoting women into

executives ranks not supported

by systemic practices

and pipelines

future pipelines

failing to be built

!

PROGRESS OR NOISE?

ECONOMIC

IMPERATIVE

REGULATORY

& QUOTAS

ACADEMIA &

SOCIETY

INCREASED

INVESTOR

PRESSURE

Women Face Choke Points In Their Career

Executives

Senior Managers

Managers

Professionals

Support Staff 49%

38%

33%

26%

20%

51%

62%

67%

74%

80%

T H E AV E R A G E G L O B A L O R G A N I Z AT I O N

A N D P R O M O T I O N S

F : 1 8 %M : 2 1 %

F : 1 4 %M : 1 4 %

F : 8 %M : 9 %

F : 8 %M : 7 %

F : 9 %M : 6 %

H I R E S

F : 1 5 %M : 1 7 %

F : 1 2 %M : 1 2 %

F : 9 %M : 1 0 %

F : 8 %M : 9 %

F : 1 0 %M : 8 %

E X I T S

F E M A L E M A L E

F : 7 %

F : 8 %

F : 7 %

F : 5 %

M : 6 %

M : 7 %

M : 6 %

M : 5 %

North America ILM MAP

Executives

Senior Managers

Managers

Professionals

Support Staff

F : 8 %

F : 9 %

F : 8 %

F : 6 %

M : 7 %

M : 1 0 %

M : 8 %

M : 8 %

5 8 % 4 2 %F : 1 9 %

M : 2 6 %

F : 1 5 %M : 1 7 %

F : 8 %M : 1 0 %

F : 7 %M : 8 %

F : 7 %M : 6 %

H I R E S

F : 1 7 %M : 2 1 %

F : 1 4 %M : 1 3 %

F : 1 1 %M : 1 1 %

F : 1 1 %M : 9 %

F : 1 0 %M : 1 0 %

E X I T S

4 2 %

3 8 %

3 0 %

2 2 %

5 8 %

6 2 %

7 0 %

7 8 %

F E M A L E M A L E

T H E AV E R A G E N O R T H A M E R I C A N O R G A N I Z AT I O N

A N D P R O M O T I O N S

WHEN WOMEN THRIVE, BUSINESSES THRIVE Research — The Critical Drivers for Change

Are you PASSIONATE?

Is achieving success a PERSONAL

goal?

Do you have what it takes to

PERSERVERE?

Is your strategy rooted

in PROOF?

Are the right PROCESSES in place to

support your efforts?

Are you involved in the right PROGRAMS?

I N D I V I D U AL O R G AN I Z AT I O N A L

WHAT CAN YOU DO TO ACCELERATE THE PATH

FORWARD?

Align on the business imperative

Compliance/

Risk Mitigation

Employee Engagement

& Retention

Customer

Intimacy

Innovation

& Growth

BUSINESSES

I N T E G R AT I O N W I T H M I S S I O N & B R A N D

HUMAN

RESOURCES

Align on the business imperative

Keep WOMEN & MEN active in the workforce by taking a holistic approach

PHYSICAL AND EMOTIONAL

WELLNESS

FINANCIAL

SECURITYCAREER ENGAGEMENT

UNDERSTAND AND BE

A PART OF THE D&I

STRATEGY

BE PASSIONATE

ABOUT DRIVING

CHANGE

HOLD / ADVOCATE A

COMPELLING POINT OF

VIEW

HAVE A VOICE

TAKE ACTION: for real change, leaders must authentically. . .

For more information please contact: Leslie Mays, Partner(713) 276-2267leslie.mays1@mercer.com

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