Talent Magnets,Hugh Bucknall,21 August 2001,- Issues and Practical Experiences,Nicole Sexton,Guangzhou Office Opening Ceremony Seminar,Talent Magnets,Session 2: Practical experiencesLessons from other places What they have done about it What does it mean for you,Hugh Bucknall,21 August 2001,2,4 Ways to become a Talent Magnet,Staff Attraction & Retention Schemes,Employment Branding,Succession Planning,Talent Management,3,Practical experiences,Facts and FictionResponding to the challengeTake aways,Dispelling the myths Setting the record straight Why it is a very big business issueDiagnostics Tools Case studiesHow do you rate Tools you can use,4,Facts and Fiction,Dispelling the myths Setting the record straight Why it is a very big business issue,5,The Common Myth of Talent Management,. Even though pay has been increasing,“its a problem of COMPENSATION”,it is not enough to attract, retain and motivate professionals .,6,So, what are the magnets that bind?,Inspiring Leadership Fun work culture Challenging Work Feedback Career growth Pay is fair,7,And, why do top talent leave?,Bad boss No career prospects No feedback and support Broken promises No customisation for my needs Wrong people in wrong jobs Red Tape My voice not heard Work life balance Pay,Wm M Mercer Private Survey in Singapore 2000,8,High-performance talent management,practices yield significant economic returns,The Business Opportunity,Based upon a one-standard-,deviation increase in high,performance talent management,practices,Source: “Mark A. Huselid, “The Impact of Human Resource Management Practices on,Turnover, Productivity and Corporate Financial Performance,” Academy of Management,Journal 38 (1995),9,High-performance talent management,creates an employee-customer-profit chain,Increased employee,commitment and,productivity,Increased customer,satisfaction and,retention,Increased,shareholder,value,For every 5%,improvement in,employee behavior .,1.3%,increase in,customer retention,1.04% increase,in revenues and,0.4% increase in profits,Source: Anthony J. Rucci, Steven P. Kirn, and Richard T. Quinn, “The Employee-Customer-,Profit Chain at Sears,” Harvard Business Review, January, 1998 / February, 1998,10,The cost of turnover is a business issue,Rule of thumb = equivalent to 6m- 3.5yrs,Average annual salary,Turnover %,Number of employees,Factor - 0.5 - 3.5*,X,X,X,Annual cost,Annual cost,=,=,RMB15,000,22%,1000,1.5,RMB5million,=,=,11,Why companies treasure Top Talent,It costs 10 times salary to replace Top Talent 3-5 times the value marginal cost Build future business Move and shake Make things happen Magnet for more Top Talent,12,Source: McKinsey, Winning the War for Talent, 1999,My Company,Brings in Highly talented people,10,16,23,3,3,Knows Who the high and low performers are,Retains Almost all high performers,Develops People quickly and effectively,Removes Low performers relatively quickly,So is anyone doing a good job?,13,Impact of the bad performer,Bad performers are a major reason why good people leave,* Adapted from Centre for Creative Leadership,“Low performers” in Critical Jobs,Low Job Performance,High Performers Leave company,Development/ Advancement Opportunities Lost,Subordinates Not Developed,Productivity and Morale Goes Down,14,How are others responding to the challenge,Diagnostics Tools Case studies,15,Managing talent in a systematic way,What does the organization need from people in order to meet its business strategy? Leadership challenges driven from business strategy Competency models Position profiling,Organization Profile,Identify gaps between organizational needs and people capabilities and develop plans to shore gaps. Talent review Development plans Job assignments Training Mentoring and coaching Replacement plans,Talent Review/Development Plans,What capabilities currently exist within the organization? Talent assessment,Talent Profile,Talent as a Corporate Asset,People capabilities and development are aligned with current and future business needs.,16,Some topics to look at,17,Root causes of turnover can be grouped,Unemployment ratesMarket share Employment cost Competition (location and number) Labor pool,External influences,Promotion history Wage growth Position tenure Education Age Experience Full time / part time status Performance ratings Exempt / non-exempt status Gender Ethnic background Job / occupation Incentive earnings Training,Employee attributes,Employment risk Managerial turnover Bonus participation Supervision Workload Pay levels and structure Size Prior turnover Tenure Recruiting sourceEmployee heterogeneity Training investments,Organizational practices,Impact of turnover,Little or no impact,High impact,18,The Power of Analysis,10% raise in base pay,Supervisor does not leave,19,Ratings by Performance and Potential,Current Performance,Potential,Leadership Assessment Summary,At Standard,Below Standard,Low,