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Talent

MagnetsSession

1:What

is

theissue?Today’s

Business

EnvironmentThe

Impact

on

HRNicole

Sexton21

August

2001Is

Talent

an

Issue?“We

spend

all

our

time

onpeople.

The

day

we

screwup

the

people

thing,

thiscompany

isover”.Jack

Welch,

General

Electric“Take

our

20

best

people

awayand

I

can

tell

you

thatMicrosoft

would

become

anunimportant

company”Bill

Gates,

Microsoft“”The

next

big

killerapplication

for

theInternet

is

going

tobe

ineducation”William

M.

Mercer,

Incorporated1John

Chambers,

Cisco

SystemsAgendaWilliam

M.

Mercer,

Incorporated2Today’s

business

environmentWhat’s

happening

globally?What’s

happening

in

China?Impact

on

HRThe

“War

for

Talent”Employer

of

ChoiceCommitmentWhat

does

it

mean?Today’s

Business

EnvironmentDoes

this

Seem

Familiar?William

M.

Mercer,

Incorporated4The

Changing

WorldWilliam

M.

Mercer,

IncorporatedUS

Census

Bureau5Labour

Competition

will

be

IntensifiedSupply

of

talent

is

declining

globallyWhat

is

happening

in

the

CurrentBusiness

Environment?William

M.

Mercer,

Incorporated6

Globalisation

-

1

world,

1

market

-

the

“global

village”

Increased

and

fiercer

competition

Time

to

market

and

first

entryreplacecost

as

the

primarydriver

of

businesssuccess

Rapid

growth

isessential

Focus

on

quarterlyresults

Increased

importance

of

stock

priceWhat

is

happening

in

the

CurrentBusiness

Environment

(Cont.)?William

M.

Mercer,

Incorporated7

Technology-

the

“Information

Age”

e-business

&e-knowledge

the

growthareas

Value

Chain

crucial

for

business

competitiveness

&

HRServices

Profitability

equals

costs

and

revenue

growth

Changing

business

modelsWhat

is

happening

in

the

CurrentBusiness

Environment

(Cont.)?William

M.

Mercer,

Incorporated8

Attracting,

retaining

and

measuring

competenceandIntellectual

Capital

is

the

key

to

business

success

Talent

has

replaced

capital

and

ideas

as

the

most

criticalsuccess

factor(Survey

ofVC’s)

Talent

is

the

biggest

limiting

factor

to

corporate

growthand

thefunding

of

start-up

ideasWhat

is

happening

in

the

CurrentBusiness

Environment

(Cont.)?William

M.

Mercer,

Incorporated9

Declining

workforce

-

baby

boomers

leaving

2003

Velocity

of

job

changes/

lateral

moves

doubles

every

3years

Employers

and

individuals

-

new

paradigmShifting

Paradigm

on

Employers

of

ChoiceWilliam

M.

Mercer,

Incorporated10Employee

InvestorWage

Earner

Profit

SharerLoyalty

to

the

Firm

Loyalty

to

the

WorkIndividual

Learning

Social

Forms

ofLearningRigid

Work

Conditions

Flexible

Work

ConditionsImposed

PerformanceReviews

Self-

ManagedDevelopmentShifting

Paradigm

on

Employers

of

ChoiceWilliam

M.

Mercer,

Incorporated11Paid

for

Time

Reward

for

ResultsInformation

Controlled

Open

AccesstoInformationSuccess

Basedon

Success

based

on

TeamIndividual

PerformanceInterdependencies

andCommunities

of

PracticeWhat

is

Happening

in

China?William

M.

Mercer,

Incorporated12Semi-conductor

andIT

companies

are

movingoperations

to

ShanghaiTaiwanese

companies

are

investing

heavily

intheSuzhou

/

Shanghai

corridor1000

Taiwanese

companies

have

invested

$10

billionin

Kunshan

in

the

last

10

years

(Newsweek

July

2001)50%

of

Japanese

major

manufacturers

are

planning

tomove

their

manufacturing

operations

from

Japan

toAsia

within

the

next

3

years70%toChina

(Nikkei

Newspaper

Article

9

August

2001)What

is

Happening

in

China

Cont.?William

M.

Mercer,

Incorporated13The

Mercer

Relocation

Survey

2001

says….26.7%

of

companies

surveyed

in

Hong

Kong

saidthat

they

had

moved

a

function/

Department

fromHong

Kong

elsewhere20%

said

they

had

moved

that

function

to

the

PRC6.7%

said

they

had

moved

that

function

toGuangzhou13.3%

said

they

planned

to

move

anotherfunctionfrom

Hong

Kong

elsewhereLet’s

Link

this

to

HRThe

War

ForTalentWilliam

M.

Mercer,

Incorporated15The

vast

majority

of

employers

are

finding

it

increasinglydifficult

to

attract

and

retain

staff,

creating

a

“war

fortalent”

amongst

employersMost

key

professional

employment

areas

are

candidateshort

at

the

senior

and

operational

ends

of

themarketCompanies

are

competing

for

the

same

talentThe

war

is

...to

attract

the

right

pool

of

talent

and

retainexisting

skilled

employeesThe

War

For

Talent

Cont.William

M.

Mercer,

Incorporated16Employees

are

now

more

aware

of

their

relativeworthin

the

marketplace

and

focused

on

developing

theircareer

path

in

a

far

more

strategic

manner

than

beforeIts

important

for

managers

to

knowwhat

strategies

are

available

to

attract

the

bestcandidatesretain

the

staff

they

can

least

afford

to

looseHow

tobe

amagnet

for

talentWhat

Other

Organisations

are

Facing?William

M.

Mercer,

Incorporated1775%

companies

say

they

don’t

have

enough

talentOnly

10%

companies

manage

their

talent

pool

wellThe

demand

for

talent

isincreasingThe

supply

is

decreasingMobility

is

increasingIt

costs

up

to

10

times

pay

to

replace

Top

TalentA

global

“feeding

frenzy”

is

alreadyhappeningLeadership

Skill

DevelopmentToday’s

Leadership

Pool

is

InadequateWilliam

M.

Mercer,

Incorporated18What

Makes

an

Employer

of

Choice?William

M.

Mercer,

Incorporated19The

survey

says

that

employees

want….

(TMP

Worldwide2000)

CommitmentPurchasing

resources

to

support

projectsAn

organisational

“core”

valueDemonstrated

by

staffLong

term

commitment

from

the

company

in

terms

ofcorporate

commitment

to

direction

and

the

employees’personal

developmentCompany

must

create

a

growth

environment

thatallows

recruits

to

groworganicallyWhat

Makes

an

Employer

of

ChoiceCont?William

M.

Mercer,

Incorporated20

Company

with

Visionand

a

plan

for

thefutureThe

ability

to

communicate

this

tostaff

Organisational

FlexibilityTo

meet

the

challenges

of

a

new

eraCandidates

are

assured

their

careers

will

not

stagnateRemuneration,

interesting

projects,

motivating

environment

The

Benefits

Package

offered

to

staff

(eg.training)

Perceived

image

of

the

organisation

in

the

marketplaceWhat

Comprises

Commitment?William

M.

Mercer,

Incorporated21I

am

treated

fairly

by

my

employer(58%)My

employer

shows

genuine

care

and

concern

for

mywellbeing

(50%)I

am

trusted

in

my

job

(48%)Overall

reputation

is

excellent

(67%)My

job

provides

a

sense

of

achievement

for

me(45%)(AIM

Survey

2000

-

ChinaResults)So

What

Does

All

ThisMean?Especially

for

Guangzhou?So

What

Does

All

ThisMean?William

M.

Mercer,

Incorporated23It’s

a

competitive

world

o

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