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1、Talent MagnetsSession 1:What is the issue?Nicole Sexton21 August 2001Todays Business Environment The Impact on HRWilliam M.Mercer,IncorporatedIs Talent an Issue?“We spend all our time on people.The day we screw up the people thing,this company is over”.Jack Welch,General Electric“Take our 20 best pe
2、ople away and I can tell you that Microsoft would become an unimportant company”Bill Gates,Microsoft“”The next big killer application for the Internet is going to be in education”John Chambers,Cisco Systems1William M.Mercer,IncorporatedAgendanTodays business environmentWhats happening globally?Whats
3、 happening in China?nImpact on HRThe“War for Talent”Employer of ChoiceCommitmentnWhat does it mean?2Todays Business EnvironmentWilliam M.Mercer,IncorporatedDoes this Seem Familiar?4William M.Mercer,IncorporatedThe Changing World-Labour Competition will be Intensified-Supply of talent is declining gl
4、oballyUS Census Bureau5William M.Mercer,IncorporatedWhat is happening in the Current Business Environment?4Globalisation-1 world,1 market-the“global village”4Increased and fiercer competition4Time to market and first entry replace cost as the primary driver of business success4Rapid growth is essent
5、ial4Focus on quarterly results4Increased importance of stock price6William M.Mercer,IncorporatedWhat is happening in the Current Business Environment(Cont.)?4Technology-the“Information Age”4e-business&e-knowledge the growth areas4Value Chain crucial for business competitiveness&HR Services4Profitabi
6、lity equals costs and revenue growth4Changing business models7William M.Mercer,IncorporatedWhat is happening in the Current Business Environment(Cont.)?4Attracting,retaining and measuring competence and Intellectual Capital is the key to business success4Talent has replaced capital and ideas as the
7、most critical success factor(Survey of VCs)4Talent is the biggest limiting factor to corporate growth and the funding of start-up ideas8William M.Mercer,IncorporatedWhat is happening in the Current Business Environment(Cont.)?4Declining workforce-baby boomers leaving 20034Velocity of job changes/lat
8、eral moves doubles every 3 years4Employers and individuals-new paradigm9William M.Mercer,IncorporatedShifting Paradigm on Employers of ChoiceEmployee InvestorWage Earner Profit SharerLoyalty to the Firm Loyalty to the WorkIndividual Learning Social Forms of LearningRigid Work Conditions Flexible Wor
9、k ConditionsImposed Performance Self-ManagedReviews Development10William M.Mercer,IncorporatedShifting Paradigm on Employers of ChoicePaid for Time Reward for ResultsInformation Controlled Open Access to InformationSuccess Based on Success based on TeamIndividual Performance Interdependencies and Co
10、mmunities of Practice 11William M.Mercer,IncorporatedWhat is Happening in China?nSemi-conductor and IT companies are moving operations to Shanghai nTaiwanese companies are investing heavily in the Suzhou/Shanghai corridor1000 Taiwanese companies have invested$10 billion in Kunshan in the last 10 yea
11、rs (Newsweek July 2001)n50%of Japanese major manufacturers are planning to move their manufacturing operations from Japan to Asia within the next 3 years 70%to China (Nikkei Newspaper Article 9 August 2001)12William M.Mercer,IncorporatedWhat is Happening in China Cont.?nThe Mercer Relocation Survey
12、2001 says.26.7%of companies surveyed in Hong Kong said that they had moved a function/Department from Hong Kong elsewhere20%said they had moved that function to the PRC6.7%said they had moved that function to Guangzhou13.3%said they planned to move another function from Hong Kong elsewhere13Lets Lin
13、k this to HRWilliam M.Mercer,IncorporatedThe War For TalentnThe vast majority of employers are finding it increasingly difficult to attract and retain staff,creating a“war for talent”amongst employersnMost key professional employment areas are candidate short at the senior and operational ends of th
14、e marketnCompanies are competing for the same talentnThe war is.to attract the right pool of talent and retain existing skilled employees15William M.Mercer,IncorporatedThe War For Talent Cont.nEmployees are now more aware of their relative worth in the marketplace and focused on developing their car
15、eer path in a far more strategic manner than beforenIts important for managers to knowwhat strategies are available to attract the best candidates retain the staff they can least afford to looseHow to be a magnet for talent16William M.Mercer,IncorporatedWhat Other Organisations are Facing?n75%compan
16、ies say they dont have enough talentnOnly 10%companies manage their talent pool wellnThe demand for talent is increasingnThe supply is decreasingnMobility is increasingnIt costs up to 10 times pay to replace Top TalentnA global“feeding frenzy”is already happening17William M.Mercer,IncorporatedLeader
17、ship Skill Development Todays Leadership Pool is Inadequate18William M.Mercer,IncorporatedWhat Makes an Employer of Choice?The survey says that employees want.(TMP Worldwide 2000)1CommitmentPurchasing resources to support projectsAn organisational“core”valueDemonstrated by staffLong term commitment
18、from the company in terms of corporate commitment to direction and the employees personal developmentCompany must create a growth environment that allows recruits to grow organically19William M.Mercer,IncorporatedWhat Makes an Employer of Choice Cont?2Company with Vision and a plan for the futureThe
19、 ability to communicate this to staff3Organisational Flexibility To meet the challenges of a new eraCandidates are assured their careers will not stagnateRemuneration,interesting projects,motivating environment4The Benefits Package offered to staff(eg.training)5Perceived image of the organisation in
20、 the marketplace20William M.Mercer,IncorporatedWhat Comprises Commitment?nI am treated fairly by my employer(58%)nMy employer shows genuine care and concern for my wellbeing(50%)nI am trusted in my job(48%)nOverall reputation is excellent(67%)nMy job provides a sense of achievement for me(45%)(AIM S
21、urvey 2000-China Results)21So What Does All This Mean?Especially for Guangzhou?William M.Mercer,IncorporatedSo What Does All This Mean?nIts a competitive world out there!nThere is a“War for Talent”being wagednCompetitive advantage will come from:capturing key talent so your competitors dontretaining
22、 your key talentMotivating your key talentDeveloping the leadership of your management team(current and future)23William M.Mercer,IncorporatedSo What Does All This Mean Cont.?nAttraction and retention of top talent is imperativenLeadership skill development is essentialnSuccession planning is keynAn excellent employment brand is a must24William M.Mercer,Incorporated4 Ways to become a Talent MagnetStaff Attraction&RetentionSchemesEmployment BrandingSuccessionPlanningTalent ManagementFocus of our next presentation25William M.Mercer,IncorporatedAny Questions?26