how to retain young talents - challenges for leadership

How to retain young talents -‐ challenges for leadership

Elec7ve Module Leading People in Changing Environment

02.06.2012

Moritz Maier | Robin Alexander Müller | Anders Brekke

Agenda Introduc7on and literature review -‐ Literature & Concepts Companies, talents and leadership -‐ What are companies looking for? Expecta7ons? -‐ What are talents looking for? Expecta7ons? -‐ Leadership styles Examples -‐ Successful companies? -‐ What do they do? -‐ Personal experience

02.06.2012 Müller, Maier & Brekke | Leading People in Changing Environments 2

Talent Management

Talent management is one of the primary tools for 21st century human assets management (Ingham, 2006; Ashton and Moreton, 2005; McGee, 2006; McCauley and Wakefield, 2006; Heinan and O’Neill, 2004). The basic strategy of talent management is to seek, categorise and nurture skills that will be needed to maintain future compeNNve advantage (Frank and Taylor, 2004)

Ingham, J. (2006). ‘Closing the talent management gap.’ Strategic HR Review, Mar/Apr, vol. 5 no.3, pp. 20-23. Ashton, C. and Morton, L. (2005). ‘Managing talent for competitive advantage’. Strategic HR Review, Jul/Aug, vol. 4 no. 5, pp. 28-31. McGee, L. (2006).’CEO's influence on talent management’. Strategic HR Review; Nov/Dec, vol. 6 no. 1, p. 3. McCauley, C. and Wakefield, M. (2006). ‘Talent Management in the 21st Century: Help Your Company Find, Develop, and Keep its Strongest Workers’. Journal for Quality & Participation, Winter, vol. 29 no. 4, pp. 4-7. Heinan, J.S. and O’Neill, C. (2004). ‘Managing Talent to Maximise Performance’. Employee Relations Today, vol. 31 no. 2, pp. 67 – 82. Frank, F.D. and Taylor, C.R. (2004). ‘Talent Management: trends that will shape the future.’ Human Resource Planning, vol. 27, no. 1, pp. 33-41

Organisa7onal Capabili7es Capabili7es are the skills necessary for an organisa7on to coordinate resources effec7vely to achieve specific purposes (Analoui, 2007). A human resources strategy of talent management, used appropriately, can develop leadership (Romans, Frost and Ford, 2006); support learning ini7a7ves (Bersin, 2007) and develop organisa7onal capabili7es (Kates, 2006). “skills, knowledge, processes, rela7onships, proper 7es, or outputs that its mo7vated compe7tors are unlikely to acquire … these do not currently produce any economic advantages but have poten7al to be transformed into valuable resources or capabili7es” (Miller et al. in De Wit and Meyer, 2005: 337).

Analoui, F. (2007). Strategic Human Resource Management. London: Thomson Learning. Romans, J., Frost, A. and Ford, S. (2006). ‘Developing high-potential talent at Hughes Supply’. Strategic HR Review, vol. 5 no. 3, pp. 32-35. Bersin, J. (2007). ‘Reshaping the learning function to bridge talent gap’. Training and Development, September, pp. 44-46. Kates, A. (2006). ‘(Re) Designing the HR Organisation’. Human Resource Planning, vol. 29 no. 2, pp. 22-30. De Wit, B. and Meyer, R. (2005). Strategy Synthesis. 2nd edition, London: Thomson Learning.

Skills Shortage Global skills shortage is a widely accepted phenomenon (Aiman-‐Smith, Bergey, Cantwell and Doran, 2006; Bernhart, 2006; Holland, Sheehan, Donohue and Pyman, 2007; Leape, 2006) Two main reasons: 1. The demographic makeup of most developing countries is leading to an aging work popula7on (Strack, Baier and Fahlander 2008) 2. Major skills gaps in some areas where not enough people are being trained and entering employment (Baker, 2006) Cri$cs: Arguments that the focus upon demographic changes in the skills shortage debate is too strong (Barreg, 2007).

Aiman-Smith, L., Bergey, P., Cantwell, A.R. and Doran, M. (2006). ‘The Coming Knowledge and Capability Shortage’. Research-Technology Management, July-August: pp. 15-23. Bernhart, M. (2006). ‘Preparing for a skills shortage, work intensification’. Employee Benefit News, BenefitNews.com: 20th November. Holland, P., Sheenan, C. and De Cieri, H. (2007). ‘Attracting and Retaining Talent: exploring human resources development trends in Australia’. Human Resource Development International, vol. 10 no. 3, pp. 247-262. Leape, E. (2006). ‘Managing the Skills Shortage’. Canadian Manager, Winter, pp. 4-7. Strack, R., Baier, J. and Fahlander, A. (2008). ‘Managing demographic risk’. Harvard Business Review, vol. 86 no. 2, pp. 119-134. Baker, M. (2006). ‘What are the degree chart hits?’. BBC News, Friday, 20th October, accessed 29/05/11, <http://news.bbc.co.uk/2/hi/uk_news/education/6071026.stm> Barrett, S. (2007). ‘Beyond the Unemployment Rate: is immigration really the solution to the Australian skills shortages problems?’ International Journal of Employment Studies, vol. 15 no. 1, pp. 119-136.

Genera7onal traits include a desire for a work-‐life balance and an expecta7on to change jobs more ohen. This genera7on expects intrinsic as well as extrinsic mo7va7on from their work (Green, 2000; Eisner, 2005) It is a truly global genera7on, socially conscious and volunteer-‐minded and posi7oned to be the most demanding genera7on. If treated professionally, it is likely to act professionally. Gen Y is likely to perform best when its abili7es are iden7fied and matched with challenging work that pushes it fully. Speed, customiza7on, and interac7vity -‐two-‐way nonpassive engagement-‐-‐are likely to help keep Gen Y focused (Mar7n and Tulgan, 2004). Technically able, highly informed and confident, but lacking direc7on, Gen Y is more likely to "rock the boat" than any prior genera7on (Johns, 2003).

Green, M. (2000). ‘Beware and Prepare: the Government Workforce of the Future’. Public Personnel Management, Winter, vol. 29 no. 4, pp. 435-443. Eisner, S. (2005). ‘Managing Generation Y’. SAM Advanced Management Journal, Autumn, vol. 70 no.4, pp.4-15. Martin, Carolyn, & Tulgan, Bruce. Managing the generation mix – part II. Top Echelon, Employers. Retrieved on October 29, 2004, from http://www.topechelon.com. Johns, Katharine. (2003, April 11). Managing generational diversity in the workforce. Trends & Tidbits. Retrieved on October 10, 2004, from http://www.workindex.com.

Genera7on Y

What are companies looking for?


What are companies looking for?

Risk assessment strategy: •  Compensa7on based reten7on strategies •  Development and Communica7on based strategies


What are talents looking for?

What are talents looking for?

“Autonomy, Mastery, Purpose.”


What are young talents looking for?

Younger workers are likely to value these factors: • Clear understanding of work objec7ves • Amount of recogni7on for work • Company responsiveness to individual needs • Opportuni7es for growth and advancement


Leadership styles

Leaders approach to agri7on •  Defensive response •  Retaliatory response •  Rela7onal response


“In a world where top performing employees are becoming a scarce commodity, finding the right people is criNcal for business success. At a Nme when low birth and death rates are significantly shiTing world demographics, the dilemmas of the 21st century are not only ‘Who will make up the workforce?’, yet more importantly ‘Who will own it?– MulNnaNonal corporaNons are increasingly aware of the current and future challenges of a shrinking workforce. To counter problems in securing their talent pipeline requires a talent aXracNon and employer branding strategy”,

advised Peter Nylander, Universum’s CEO.


Successful companies I

http://www.universumglobal.com

Ideal Employers 2011 Award -‐ Business à How students perceive organiza7ons as employers in Switzerland / Globally

Company Ranking 2011 "Business" Switzerland

Nestlé 1 Credit Suisse 2 UBS 3 Google 4 L'Oréal 5 Swatch Group 6 PwC 7 SWISS 8 Procter & Gamble 9 McKinsey & Company 10


Successful companies II

Company Ranking 2011 "Business" Global

Google 1 KPMG 2 PwC 3 Ernst & Young 4 Deloige 5 Microsoh 6 Procter & Gamble 7 J.P. Morgan 8 Apple 9 Goldman Sachs 10



Successful companies III


Primary Benefits

Secondary Benefits & Working Condi7ons

Training and Development

Career Development

Company Culture

• Up to $8,000/year in tui7on reimbursement • Global Educa7on Leave program enables employees to take a leave of absence to pursue

further educa7on for up to 5 years and $150,000 in reimbursement. • Classes on a variety of subjects from estate planning and home purchasing to

foreign language lessons in French, Spanish, Japanese, etc. •  Accommoda7on Policies Transgender and Transi7oning Workplace Support • “Innova7on Time Off” -‐ Engineers can spend 20% of 7me on independent

projects •  "Keeping up the start-‐up spirit" -‐ smaller teams and direct supervising •  "Favoring an open mindset" -‐ Diversity Management


What do they do? I

www.google.com/about/company


Career Development

Company Culture

• Very good salary •  On-‐site perks include medical and dental facili7es, oil change and bike repair, valet parking, free washers and dryers, and free breakfast, lunch and dinner on a daily basis at 11 gourmet restaurants

• Unlimited sick leave • 27 days of paid 7me off aher one year of employment • Adop7on Assistance •  Day Care •  Mother's Rooms •  Maternal/Paternal Leave Program


What do they do? II



Secondary Benefits & Working Condi7ons

UBS AG

Personal experience I

Individual development Plan


Personal experience II Key Talents


Thank you!
