ATTRACTING & RETAINING TOP TALENT THROUGH GREAT EMPLOYER BRANDING

HR Summit Melbourne 21 & 22 July 2010

Des Tubridy (Dr) Director Quantum Management Indicators

AGENDA

1. Employer Branding
Definition The pivotal role of Employer Branding Who is responsible for Employer Branding Case studies: Nokia & Coca-Cola Employer Branding: the value Quantums model Measuring Employer Branding

3. Talent Management
The current situation What is the cost The Talent Crunch The Challenges How to recruit Talent Retention Case Study: J&J Quantum: Approach Measuring the ROI

2. The Link

4. Conclusion

DEFINITION OF EMPLOYER BRANDING

The image of the organisation as a great place to work in the minds of current employees and key stakeholders in the external market (active and passive candidates, clients, customers and other key stakeholders)
According to a survey conducted by Forbes in 2010, the top 3 companies to work in Australia for as rated by employees were: NAB, BHP Billiton and Commonwealth Bank
Minchington, 2005

THE PIVOTAL ROLE OF EMPLOYER BRANDING

The Employer Brand consists of:

Your Organisations Purpose and Values (Culture) Your Leadership Capability Challenges faced by your Organsiation Vision and Direction Market performance Market Status in your specific sector
(Beames, 2009)

WHO IS RESPONSIBLE

It is the responsibility of every Department to develop an effective Employer Brand strategy and includes career opportunities, work environment, training and development and maintaining the overall reputation of your organisation According to Minchington (2010) most organisations have a different strategy for employer and consumer brands. Marketing being responsible for the consumer brand and HR for the Employer Brand However, the HR, Marketing and Executive Team need to work more closely to ensure a consistent message and leverage the different departmental capabilities

CASE STUDY: NOKIA

Nokia is well-known for its emphasis and creativity in phone designs and usability This is reflected in its employer brand creating amazing new ways for people to connect to each other, and to the things that matter to them

CASE STUDY: NOKIA

The Mobile Rules competition introduced by Nokia invited business plans from applicants that will shake up the mobile world. The initiative was an excellent way to discover new talent or identify passive candidates that Nokia may wish to recruit By having a clear Employer Brand, this shows that Nokia is trying to attract a certain type of individual, with a specific set of skills and qualities who want to be praised for their creativity and flexibility

CASE STUDY: COCA-COLA

When Coca-Cola employees were asked about their company brand, they responded:

exciting, unique and challenging makes people happy and refreshes them
Employee testimonials, such as these can be used as Employer Brand recruitment tools to attract similar employees who can thrive in this type of environment
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EMPLOYER BRANDING: THE VALUE

A survey conducted by the World Economic Forum found that 77% of employees believed that corporate reputation has become critically important Effective Employer Branding leads to:
Employees being more committed to the organisational goals Increased employee retention Reduced recruitment costs Improved reputation as employees recommend your organisation as a good place to work

QuAntum: emPloyer BrAnding/rePutAtion model

UNDERSTAND YOuR CORE BUSINESS GOALS

EMPLOYER BRANDING

ORGANISATIONAL IDENTITY

EMPLOYEE COMMUNICATION STRATEGY

EMPLOYEE ENGAGEMENT

CORPORATE IMAGE

CORPORATE REPUTATION

PERFORMANCE MEASURES

TALENT MANAGEMENT

ORGANISATIONAL DELIVERY

QuAntum: emPloyer BrAnding/rePutAtion model

UNDERSTAND YOuR CORE BUSINESS GOALS

1. Understand your core business objectives and tie them into the Employer Branding strategy 2. Identify the employee talent required to achieve these objectives 3. Develop an attractive Employer Brand for prospective employees
EMPLOYEE COMMUNICATION STRATEGY EMPLOYER BRANDING ORGANISATIONAL IDENTITY

4. Obtain feedback from recent recruits to validate your Employer Brand position 5. Nurture internal Brand Champions or people who align to the organisations values and mission statements TALENT ORGANISATIONAL
DELIVERY

EMPLOYEE ENGAGEMENT

CORPORATE IMAGE

CORPORATE REPUTATION

PERFORMANCE MEASURES

MANAGEMENT

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MEASURING EMPLOYER BRANDING

Employer Branding is not an easy concept to measure However, measures can include:
Number and quality of job candidates Staff retention rates Traffic to your career website Employee Engagement Survey results

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LINKING EMPLOYER BRANDING TO TALENT MANAGEMENT

Despite the global recession, employers are still finding it difficult to recruit the perfect fit employee, where the employee matches the organisational culture and the position By concentrating on the Employer Brand and by increasing their appeal to the right candidates, organisations will gain a distinct advantage in the labour market There is a clear link between Talent Management and Employer Branding and The depth and quality of planning today will separate the talent winners from the talent losers tomorrow
Jeff Schwartz (Deloitte)

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TALENT MANAGEMENT: THE CURRENT SITUATION

Organisations are increasingly finding it hard to find the employee who fits perfectly within their organisational culture, as well as being able to fill the objectives of the job role More individuals may be looking for jobs, but they may not have what the employer is looking for in terms of experience or the right managerial or people skills

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TALENT MANAGEMENT: THE CURRENT SITUATION

Example: Finding an IT Professional in India. Easy? Think again! There are plenty of IT professionals in India at the moment, yet employers are claiming that it is hard to fill the IT vacancies. Why? Because they are not only looking for people with IT degrees, certifications or programming skills but also for those individuals who possess the right managerial skills and business domain knowledge

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WHAT IS THE COST OF TALENT MANAGEMENT

According to the Financial Times Poor talent management is thought to cost the stock market approximately AU$4 billion a year Approximately 77% of organisations experience talent management problems Around 66% of organisations do not have an effective talent management strategy The Economist (2009) recently stated the current recession is revealing how few firms have really thought through their talent strategies

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THE TALENT CRUNCH

COUNTRIES MOST AND LEAST AFFECTED BY THE TALENT CRUNCH

70%

53%

35%

18%

0%

W AN

RU

US

IA

JA PA N

DI

IN

UK

IA

AN

PE

AL

LA

IN

TA I

CH

TR

RO

PO

% = percentage of employers indicating difficulty in filling jobs due to lack of available talent

2010
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AU S

IR

EL

AN

THE CHALLENGES

Ageing Australian population Many Australians going abroad (1 + million Australians live abroad) More stringent rules affecting 457 visas Marked generational differences and expectations In 2011, it is estimated that there will be 75 million vacancies in the USA and European countries There is a sense of urgency in organisations but no concrete action is being taken to rectify this situation

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THE CHALLENGES

Research has shown that organisations believe there are four main obstacles to an effective talent management strategy:
Senior managers do not spend enough time on talent management indicating a low level of priority for the this management area Organisations are siloed within and do not encourage constructive collaboration and sharing of resources Line managers are not sufficiently committed to development of peoples capabilities and careers Line managers are unwilling to differentiate between high, average and underperformers

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TALENT MANAGEMENT & RETENTION

Retention is one of the most obvious areas that effective talent management can affect What HR strategies attract and retain high performers:
79% stay because of opportunities for advancement 69% stay because their job is redesigned 65% stay because they are learning new skills

All part of an effective Talent Management Strategy

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TALENT MANAGEMENT & RETENTION

Why do high performers resign:

56% leave because they are dissatisfied with management 56% leave due to inadequate opportunity for promotion 50% leave due to dissatisfaction with pay

Talent management is an integral part of the retention process

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TALENT MANAGEMENT & RETENTION

Research of 740 organisations found that those using an integrated talent management process had economically higher levels of financial performance It was found statistically that these organisations showed an improvement of one standard deviation on the bell curve which could result in anything from a $15,000 to $60,000 increase per employee in performance Talent Management initiatives can be measured by an increase in retention of high performing employees and/or promotions of internal staff in high performing positions

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TALENT MANAGEMENT & RETENTION

One in four employees intend to leave your organisation soon One in three admit to not putting in their full effort One in five believe their career aspirations are quite different from what the organisation has planned for their career progression

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HOW TO IDENTIFY TOP TALENT

According to the Corporate Leadership Council (2010), there are 3 factors to identify to ensure an employee is a high performer for the future:
ABILITY: intellectual, technical and emotional skills (both innate and learned) ENGAGEMENT: the level of loyalty and connection that the individual feels to the organisation ASPIRATION: the employees desire to progress within the organisation
(Harvard Business Review, 2010)

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CASE STUDY: JOHNSON & JOHNSON

Johnson & Johnsons LeAD program helps the organisations managers select the employees who they think could run a business in the next three years For nine months participants receive advice and assessments from external coaches These participants are expected to build a growth project product or service which creates value for their individual unit
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CASE STUDY: JOHNSON & JOHNSON

The participants performance is measured at an international leadership session where they are informed of future projects When top talent is seen as a critical organisational asset to be developed by senior leaders across the organisation and made to feel like the right hang partners to management, the groups ability and willingness to contribute to the firm dramatically increases

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QUANTUM: APPROACH TO TALENT MANAGEMENT

Existing definitions are vague Quantums talent management definition includes a series of HR initiatives including:
Recruitment Development Orientation Deployment Rewards Retention

Performance Mngt & Succession Planning Employee Engagement

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retention

QUANTUM: APPROACH TO TALENT MANAGEMENT HR/TALENT STAFF

QuAntum: APProAch to tAlent mgnt

accountable development

Vague definitions exist and vary by organisation!

engagement deployment

The Functionality Wheel

engaged The Vitality Wheel

Quantums Stages of Talent Management:

rewards sourcing assimilation performance management

committed

EXECUTIVE TEAM accounta

engaged committed

accounta

L
accountable retention development high

HR/TALENT STAFF
engaged

low engagement deployment committed

rewards

performance management

accountable engaged

committ

LINE MANAGEMENT
high
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retention

accountable QUANTUM: APPROACH TO TALENT MANAGEMENT QuAntum: APProAch to tAlent mgnt development

The Vitality Wheel

HR/TALENT STAFF
engaged

Talent Management Support

engagement deployment committed

EXECUTIVE TEAM
committed rewards engaged accountable performance management

accounta

L
accountable committed

opment

HR/TALENT STAFF
engaged

TALENT POOL
engaged

high

yment committed accountable

low

accountable engaged

committed

LINE MANAGEMENT
high

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QUANTUM: APPROACH TO TALENT MANAGEMENT QuAntum: APProAch to tAlent mgnt

RETENTION

RECRUITMENT & ORIENTATION RECRuITMENT & INDuCTION

ENGAGEMENT

DEVELOPMENT

taLent management
REWARDS DEPLOYMENT

SUCCESSION

PERFORMANCE

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SEVEN CRITICAL COMPONENTS OF A TALENT MANAGEMENT PROGRAM

1. Selection, Selection and Selection! 2. Build the future requisite competencies into current development and training activities 3. Instigate a high potential management plan 4. Identify the high risk and most challenging positions across the organisation and assign them directly to rising stars

(Harvard Business Review, May 2010)

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SEVEN CRITICAL COMPONENTS OF A TALENT MANAGEMENT PROGRAM

5. Create individual development plans. Link personal objectives to the organisations plans for growth, rather than to generic competency models 6. Re-evaluate top talent annually for changes in ability, engagement and aspiration 7. Offer significantly differentiated compensation and recognition to high potential employees
(Harvard Business Review, May 2010)

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THANK YOU
CONTACT DETAILS
Quantum Management Indicators Dr Des Tubridy (Director) P (03) 9249 9570 M 0411 116 367 W qmisurveys.com.au