Download - The New Language of Talent Management
Capital is being superseded by creativity and the ability to innovate—and therefore by human talents—as the most important factors of production. If talent is becoming the decisive competitive factor, we can be confident in stating that capitalism is being replaced by TALENTISM.
- Klaus Schwab, Founder of the World Economic Forum
Preparing for an Era of Talentism
20th Century Capitalism 21st Century Talentism
A ruthless pursuit of customer delight with employees seen
as the ultimate differentiation
A ruthless pursuit of product efficiencies with employees seen as cogs in the machine
HR professionals have never had a greater opportunity to directly shape and impact the future of their organizations...
...they have also never been under so much pressure from CEOs to deliver, as an increasingly mobile global workforce shifts the balance of power from institutions to individuals
63% say availability of skills is a serious concern
93% say that they recognize the need to change their strategy for attracting and retaining talent
only 34% say that HR is well prepared to capitalize on the transformational trends that are impacting their business
Source: PwC - 2015 Annual Global CEO Survey
Succession Planning
Goals & Performance
LearningManagement
Rewards & Compensation
Recruitment
CareerDevelopment
Rethinking the Six Pillars of Talent Management
20th Century candidates were judged on a resume of standard accomplishments. Skill requirements for specific jobs were well-defined, and paramount. Years of experience were a measure of ability.
Recruiting From the Past
81% of CEOs say that their business always looks to equip employees with new skills
Source: PwC - 2015 Annual Global CEO Survey
Recruiting For the Future
For every job, though, the No. 1 thing we look for is general cognitive ability, and it’s not I.Q. It’s learning ability. It’s the ability to process on the fly. It’s the ability to pull together disparate bits of information.
- Laszlo Block, Google’s senior VP of people operations
Recruiting for the Future
From extracurricular activity to a strategic recruitment and development tool2. Learning Development
Traditional learning programs were usually driven by the needs of the employer, with the aim often being to establish conformity across the workforce
One-third of Millennials rank training and development opportunities as a prospective employer’s top benefit
Source: “Multi-Generational Worker Attitudes” - Millennial Branding and monster.com
If They’re Not Learning, They’re Leaving...
Zappos Core Values1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and A Little Weirdness4. Be Adventurous, Creative, and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships7. Build a Positive Team and Family Spirit8. Do More With Less9. Be Passionate and Determined10. Be Humble
Tony Hsieh, Zappos CEO
Disruptive Companies Make Learning Part of the Culture
Finally, one can only hope that 2015 will see the death of the annual performance review. These bloated, over-engineered, mandatory rituals are a waste of time, are hated by everyone and actually do nothing to foster high performance.
- Patty McCord, chief talent officer at Netflix from its inception through 2012
Business Moves too Fast for the Annual Performance Review
58% of executives believe that their current performance management approach drives neither employee engagement nor high performance
Source: Global Human Capital Trends 2015 by Deloitte
Current Review Systems are Broken
It’s liberating people. It has really helped to create teamwork instead of individualism, which is critical in a creative company. This is an opportunity for us to not just say that our people are our most important asset, but to actually live those words.
- Donna Morris, senior vice president of global people resources at Adobe
Adobe has Replaced Annual Reviews with Regular Check-Ins
From check the box corporate-driven org. charts to outside the box employee-focused experiences4. Career Development
Traditional career development was driven by tenure. Reaching the next rung on the corporate ladder meant managing people doing the job they used to do.
Millennials, who now make up more than half the workforce, are taking center stage. Their expectations are vastly different from those of previous generations. They expect accelerated responsibility and paths to leadership. They seek greater purpose in their work. And they want greater flexibility in how that work is done.
Meeting the Millennial Mindset
For each tour, the employee and the company clarify what each side gets out of the relationship, offering a number of different types of tours to guide employees at different stages of their career.
- The Alliance by Reid Hoffman (co-founder of LinkedIn), Ben Casnocha, and Chris Yeh
Disruptive Companies Create Employee Tours of Duty
In traditional organizations, compensation is often a zero-sum game. Individual rewards for individual performance. Salary, bonuses, stock options and pension plans linked to individual output, increasing exponentially as employees progress up the org. chart.
Show Me the Money
While millennial workers are ambitious and strive for financial success, 88% prefer a collaborative work-culture to a competitive one.
They also understand the value and the inherent potential of transparency, and they are perplexed at the secrecy and “need to know” cultures that were the norm in The Industrial Economy.
Rewarding Collaboration not Competition
- Forbes: 10 Ways Millennials Are Creating The Future Of Work
Clear career paths, including future earning potential are especially attractive in Brazil
Stock options or other forms of equity-based pay and high future earnings had a higher rank in China than other countries suggesting a long-term orientation
Secure and steady income in the present is particularly important in Russia
Tailor Compensation Packages to Global Workforces
- EY: Differentiating for Success - Securing Top Talent in the BRICs
From finding clones to fill retirees’ shoes to opening up the multicultural boardroom6. Succession Planning
In the Industrial Economy succession planning was about ensuring continuity at the top. It was about staying the course, not rocking the boat. Stability was the goal. Executives were often judged against their predecessor’s strengths, and groomed to follow in the their footsteps.
Finding Clones to Fill Retirees’ Shoes
With three decades of experience in the consumer packaged goods industry, it’s clear to me that diversity will become a competitive advantage in a global economy for companies that are willing to open their minds and embrace change. The best companies will build culturally-diverse leadership teams and workforces with divergent backgrounds, perspectives and ideas. - Denise Morrison, President & CEO at Campbell Soup Company
Global Economies Require Diversity of Leadership
A McKinsey study of European and Asian businesses revealed that companies with a higher-than-average number of female executives were as much as 47% more profitable than their competitors.
A study by the American Management Association found that companies with senior managers from non-European descent reported sales growth 13% higher than their competitors.
Source: HBR - 7 Traits of Companies on the Fast Track to International Growth
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Click here for the full White Paper featuring the concerns of global CEOs, success stories of industry disruptors, and a detailed new approach for the six core areas of talent management
Pearson English Business Solutions helps corporations develop talent to realize their potential enabling them to communicate, collaborate, and operate using the common language of business, English.
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The New Language of Talent Management