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Nimble Talent Strateg ies for a New Economy By: Tom Erb

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Presentation on how to build a more flexible workforce.

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Page 1: Nimble talent strategies

Nimble Talent

Strategies for a New

EconomyBy:

Tom Erb

Page 2: Nimble talent strategies

What is Nimble?

AGILE

FlexibleQuick

Responsive

Page 3: Nimble talent strategies

Nimble: Quick and light in movement or action

Page 4: Nimble talent strategies

What is a Nimble Workforce?

Strategic approach to workforce structure

Flexible to change with your business

Efficient – low turnover, high-capacity

Scalable

Responsive to Customer Demand

Attractive to Employees

A Competitive Advantage for your Company!

Page 5: Nimble talent strategies

Why do I need a Nimble workforce?

Layoffs Stink! (and they don’t work)

Opportunity Only Knocks Once

It’s Good for your Company

It’s Good for your Employees

Page 6: Nimble talent strategies

“In the new high-speed business world,

organizations have to be able to deploy (and

redeploy) resources at a just in time pace.

Especially human

resources.”

Page 7: Nimble talent strategies

Layoffs Stink – The Price of Layoffs

$ Severance pay

$ Paying out accrued vacation and sick pay

$ Outplacement costs

$ Higher unemployment-insurance taxes

$ Cost of rehiring employees when business improves

$ Low morale and risk-averse survivors

$ Potential lawsuits, sabotage, or even workplace violence

$ Loss of institutional memory and knowledge

$ Diminished trust in management

$ Reduced productivity

Wayne Cascio - Responsible Restructuring

Page 8: Nimble talent strategies

Long-Term Impact Leadership Costs

Brand-Equity Costs

Client Relationships

Employee Morale

Voluntary Turnover

Lost Opportunities

Out of 542 executives surveyed, 46% said they believed their companies

had taken actions during the recession that could hurt their long-term growth prospects. The most

commonly cited concern:

"deep cuts in work force"

Duke University/ CFO Magazine study

Page 9: Nimble talent strategies

Cost of Inflexible Labor

Labor Needed

Actual Labor

ShortageSurplus

Page 10: Nimble talent strategies

Lost Opportunity

Page 11: Nimble talent strategies

Nimble Workfor

ce Options

Page 12: Nimble talent strategies

Part-Time

Significant flexibilityOnly 13% are looking for

full-time work

Less dependent on set hours

Easily scalable

Page 13: Nimble talent strategies

Part-Time

Significant flexibilityRetirees

Students

Stay at home parents

Second Incomes

Attracts a highly qualified labor pool

Page 14: Nimble talent strategies

Part-Time

Significant flexibility

Attracts a highly qualified labor pool

Increases Productivity

“Productivity of firms with a high share of part-time

employed is higher than productivity of firms with a high share of full-time

employed.”

Nelen, Grip, Fouarge - Does Part-Time Employment

Affect Firm Productivity?

Page 15: Nimble talent strategies

What is Full-Time?

USA Japan Canada England France Germany2526272829303132333435

Hours Worked/Week

The Organization for Economic Co-Operation and Development

Page 16: Nimble talent strategies

Telecommuting Employers can save 63% of

absenteeism costs per teleworker

Fifty-three % of teleworkers say the ability to work at home is important to their employment choice

Telework can cut corporate real estate costs by 25% to 90%

Possible savings in office space, per worker, can equal up to $8,000

Teleworkers are often 20% to 25% more productive than office workers

International Telework Association and Council

Page 17: Nimble talent strategies

Hoteling Also referred to as “Hot

Desking”

The practice of providing office space to employees on an “as-needed” basis

Great for remote workers, outside sales reps, and other primarily mobile employees

Reduces overhead, increases flexibility, and reduces ramp up time for new employees

Page 18: Nimble talent strategies

Job Sharing Two part-time employees

fill one position

Typically higher level positions

Benefits include: Increased Flexibility

Scalability

Increased Productivity

High Retention

Leave Coverage

Page 19: Nimble talent strategies

Alfred P. Sloan Awards for Business Excellence in Workplace Flexibility

31 of 37 BDO offices received Sloan Awards for their strategic flexibility practices

Telecommuting - saved real estate costs while increasing business

Part-Time - Three- and four-day workweeks let BDO “get really fabulous people and save costs when we don’t need a full-time person”

Page 20: Nimble talent strategies

“My workplace model is a business-strategy-based approach where flexibility is integrated into the business model of the organization.”

Barbara Taylor, flexibility chairperson and general counsel for BDO

Page 21: Nimble talent strategies

Outside HelpD

ele

gati

on

Complexity

Page 22: Nimble talent strategies

Contingent/TempTemp, Project, Seasonal, Temp

to Hire

Benefits of using include Significant Flexibility

Quick ramp up and down

No commitment

Savings on benefits

Protection from workers comp, unemployment, and other employer-related liabilities

Page 23: Nimble talent strategies

Outsourcing!The transfer of a business function to an

external service provider

Benefits include: Potential cost savings

Scalability

Service Level Agreements

Frees up Resources

Page 24: Nimble talent strategies

Managed Service Hybrid model between

contingent staffing and outsourcing

Based on-site rather than off-site

Ideal for standardized, measurable tasks (i.e. call center, mailroom, help desk)

Benefits include: Greater oversight and

control

Integrated with operations

Easier to pull back in house

Page 25: Nimble talent strategies

Independent Contractor (1099)

Benefits include: Flexibility

No commitment

Potential cost savings

Not an employee, responsible for own withholding

Review against IRS Contractor Test and FLSA employee definition

Explore management companies to comply with laws

Page 26: Nimble talent strategies

ComparisonTemp On-

SiteManaged Service

Outsourcing

1099

Scalability Moderate High High High Some

Management Required

Moderate to High

Low to Moderat

eLow Low Minimal

Control High Moderate Low Minimal Minimal

Potential Cost Savings Some Moderat

e High High Some

Accountability Minimal Some High Very High High

Employee Commitment Low Moderat

e Moderate High High

Page 27: Nimble talent strategies

Leveraging a Flexible Workforce

60 years without a layoff

Workforce Strategy includes: 15% Temporary

Employees

Managed Services

Outsourced Non-core Functions

Page 28: Nimble talent strategies

“Firms that increase their reliance on contingent labor by at least 10% experienced

increased EBITDA over companies without a flexible

workforce strategy.”

University of Oklahoma School of Business Study

Page 29: Nimble talent strategies

8 Steps to a

Nimble Workforce

Page 30: Nimble talent strategies

Benefits of a Nimble Workforce Model

Workforce Flexibility

Increased Morale

Higher Retention

Widens Recruiting Net

Reduces Expenses

Improves Productivity

Maintains Momentum

Page 31: Nimble talent strategies

More Compelling Arguments for Executive

Buy-In

88% of the companies that downsized said that morale had declined

Page 32: Nimble talent strategies

More Compelling Arguments for Executive

Buy-In

Only 3% of companies plan to revert to the staffing model they used before the recession

2009 study

Page 33: Nimble talent strategies

More Compelling Arguments for Executive

Buy-In

“On average, temporary workers displayed better performance relative to goals

compared to their full-time counterparts.”

- Joe Broschak, Assistant Professor of Organizational Behavior

Page 34: Nimble talent strategies

More Compelling Arguments for Executive

Buy-In

83% of companies surveyed had achieved an ROI of over 25% on their outsourcing projects

2009 Outsourcing Study

Page 35: Nimble talent strategies

More Compelling Arguments for Executive

Buy-In

Job displacement results in a 15 to 20% increase in death rates during the following 20

years, implying a loss in life expectancy of 1.5 years

Page 36: Nimble talent strategies

Traditional Workforce Model

Labor Needed

Actual Labor

ShortageSurplus

Page 37: Nimble talent strategies

Nimble Workforce Model

Labor Needed

Internal Flex Staff (Part-time, etc)

ExternalResources

Full-Time Staff

Page 38: Nimble talent strategies

Some Final Thoughts Think Strategically

Get rid of “9-5” Mindset

Challenge assumptions

Start small and build

What’s good for employees is good for the company

Page 39: Nimble talent strategies

THANK YOU!

Tom Erb

Phone: [email protected]

www.tallannresources.com