Talent Management in Growth Markets: China
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1 Talent Management in Growth Markets: China Stacia Sherman Garr, Vice President, Talent Management and HR Research Candace Atamanik, Research Manager Talent Management Research Bersin by Deloitte Deloitte Consulting LLP May 24 th, 2016
2 Agenda #HITalentChina Overview & Select Key Findings The Talent Management Maturity Model: China and Global 2000 Stacia Sherman Garr Vice President Talent Management and HR Research Bersin by Deloitte Deloitte Consulting Three Steps to Maturity Q & A Join the Conversation on Twitter Candace Atamanik Research Manager Talent Management Research Bersin by Deloitte Deloitte Consulting LLP Copyright 2016 Deloitte Development LLC. All rights reserved.
3 Overview & Select Key Findings
4 #HITalentChina Talent Management Research in China: Quantitative survey: 235 HR leaders located in China at the time of the survey 454 HR leaders at Global 2000 organizations (revenue larger than $750 million USD) Rigorous statistical analysis of common talent management performance drivers In-depth interviews with senior HR leaders in China and G2000 to better understand related issues and trends Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon,, October High-Impact Talent Management: Talent Management Maturity in India, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, 2016 Copyright 2016 Deloitte Development LLC. All rights reserved.
5 #HITalentChina Chinese Organizations Need to Evolve their Talent Management Approach China s talent needs are changing as it begins to evolve beyond lowskilled manufacturing to a more knowledgebased economy There is a limited talent pool able to meet these needs due to an aging population, historical policies, and a competitive talent market What should organizations in China do differently with talent management practices to meet employee and business needs? Source: High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, 2016 Copyright 2016 Deloitte Development LLC. All rights reserved.
6 Organizations in China can leverage our findings on talent management maturity to improve their talent and business outcomes
7 Select Top Findings in China #HITalentChina In China, 92 percent of organizations are at Level 1 or 2 of talent management maturity, 8 percent are at Level 3 and 4. Only 34 percent of Chinese organizations are effective at performance management (compared to 60 percent of G2000 organizations). 38 percent of Chinese companies have no or a new talent strategy (compared to 25 percent of G2000 organizations). One-third of Chinese organizations provide a culture of leadership and learning (compared to nearly one-half of G2000 organizations). Only 26 percent of Chinese organizations have developed a systemic relationship with talent (versus 37 percent of G2000 organizations). Only 17 percent of G2000 and 19 percent of Chinese companies have Embedded D&I, while 26 percent of G2000 and 24 percent of Chinese companies practice Strategic D&I. Source: High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May 2016 Copyright 2016 Deloitte Development LLC. All rights reserved.
8 The Talent Management Maturity Model: China and Global 2000
9 B e r s i n b y D e l o i t t e The Talent Management Maturity Model #HiTalentChina Level 4 Inclusive Talent System Level 3 Managed Talent Relationships Level 2 Critical Talent Growth Level 1 Essential Talent Activities Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon,, October Copyright 2015 Deloitte Development LLC. All rights reserved.
10 B e r s i n b y D e l o i t t e The Talent Management Maturity Model Global 2000 vs. Chinese Organizations Level 4 Inclusive Talent System #HITalentChina G2000 China 10% 2% Level 3 Managed Talent Relationships 19% 6% Level 2 Critical Talent Growth 59% 91% Level 1 Essential Talent Activities 12% 1% Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon,, October High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright 2016 Deloitte Development LLC. All rights reserved.
11 Let s hear from you #HITalentChina Where does your organization fit on the talent management maturity model? Level 1: Essential Talent Activities Level 2: Critical Talent Growth Level 3: Managed Talent Relationships Level 4: Inclusive Talent System Copyright 2016 Deloitte Development LLC. All rights reserved.
12 #HITalentChina Mature Chinese and G2000 Organizations Excel at Talent and Business Outcomes Chinese Organizations 3x more likely to be highly effective at coaching and developing people 2.5x more likely to be highly effective at identifying and selecting leaders 1.3x more likely to be highly effective at agility and innovation 1.2x more likely to be highly effective at improving processes to maximize efficiency G2000 Organizations 4x more likely to be highly effective at coaching and developing people 3x more likely to be highly effective at identifying and selecting leaders 2x more likely to be highly effective at agility and innovation 1.4x more likely to be highly effective at improving processes to maximize efficiency Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon, October Copyright 2016 Deloitte Development LLC. All rights reserved. High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May 2016.
13 Three Steps to Maturity
14 Understanding the Model Foundational vs. Differentiating Factors #HITalentChina Foundational Differentiating Performance Management Procedural Fairness Sourcing and Selecting Talent Organizational Structure Complexity Embedded Diversity and Inclusion Strategic Diversity and Inclusion Systemic Relationship with Talent Culture of Leadership and Learning Talent Strategy Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon, October High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright 2016 Deloitte Development LLC. All rights reserved.
15 Three Steps to Maturity 2. Develop a Business-Aligned Talent Strategy #HiTalentChina 3. Invest in Critical Differentiating Talent Management Practices 1. Strengthen Foundational Talent Management Practices Talent 14 Management in China: Improve Maturity in Three Steps, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright Deloitte Development LLC. All rights reserved.
16 Three Steps to Maturity Step 1: Leverage Strengths in Foundational Talent Management Practices Performance Management Factor #HiTalentChina Increase the perceived procedural fairness of performance appraisal. China 1% 16% 49% 31% 3% Increase transparency of promotion criteria and ensure criteria are followed when promotion decisions are made. Enable managers to provide feedback effectively. G2000 1% 9% 31% 41% 19% Incentive systems structured to reinforce the importance of giving and receiving feedback. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not At All Little/Very Little Somewhat Moderate/Significant Great Extent/Seamless The Performance Management factor includes three dimensions: (1) employees and managers review goal progress together; (2) employee promotion based on merit, performance, and competencies; and (3) senior leader accountability for developing employees. 15 Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon, October High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright 2015 Deloitte Development LLC. All rights reserved.
17 Let s hear from you #HITalentChina Which foundational factors does your organization excel at? Performance Management: Frequent development-focused conversations between managers and employees Procedural Fairness: Employees feel performance appraisal and other talent processes are fair. Sourcing and Selecting: Candidates are effectively assessed. Organizational Structure: Aligned with business objectives. Copyright 2016 Deloitte Development LLC. All rights reserved.
18 Foundational Practices: Haier Group Implements Fair and Transparent Performance Management #HiTalentChina Haier: The world s third-largest home appliance producer. Has grown aggressively after a humble beginning in 1984 with 100 employees. Objective: The foundation of Haier s people strategy is fair and transparent performance management. Action: Employees are ranked daily on results, managers monthly on performance and quarterly on potential. The system is fully transparent; evaluations of all employees, including managers, are openly displayed. Result: This is fundamentally different from what Chinese firms typically do, providing an example of an innovative strategy to reduce the effects of cultural bias toward conformity and rewarding relationships rather than performance. 17 Source: High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik Copyright / Bersin 2015 by Deloitte Deloitte, Development May LLC. All rights reserved.
19 #HiTalentChina Three Steps to Maturity Step 2: Develop and Communicate a Business-Aligned Talent Strategy Talent Strategy Factor Identify most critical talent and develop an approach for attracting, engaging, and developing them. China 1% 30% 49% 19% 0% Ensure talent strategy is aligned to business strategy and maintains focus on foundational activities. G2000 4% 30% 42% 23% 1% Invest in workforce planning and talent analytics to gather data to support the talent strategy creation process. 0% 20% 40% 60% 80% 100% Not At All Little/Very Little Somewhat Moderate/Significant Great Extent/Seamless The Talent Strategy factor has five dimensions: (1) the state of the talent strategy, (2) communication of the talent strategy by middle managers to direct reports, (3) integration of leadership development and career management, (4) integration of talent strategy and analytics / workforce planning, and (5) integration of talent strategy and D&I. 18 Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon, October High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright 2015 Deloitte Development LLC. All rights reserved.
20 Let s hear from you #HiTalentChina Which of the following differentiating factors of High-Impact Talent Management does your organization prioritize most? Talent Strategy: it is clearly articulated and communicated across the organization. Leadership and Learning: these are core tenants of our culture. Relations with Talent: we make fostering relationships mission critical and part of everything we do. Diversity and Inclusion: these are key objectives for our workforce and touch many aspects of our total talent plan. 19 Copyright 2015 Deloitte Development LLC. All rights reserved.
21 Chailease s From Seed to Tree Talent Development #HiTalentChina Chailease: A leasing company that provides financial solutions for equipment leasing and related services to small and medium-size businesses (SMBs). Founded in 2005 in Shanghai, financing over 10,000 SMBs with more than $6 billion over the last 10 years. Objective: Rapid market expansion requires employees to increase their productivity more quickly. The company needs more efficient and effective knowledge and skill transfer from senior to junior colleagues. Action: Programs to identify and hire high-potential younger candidates and nurture them to grow into competent professionals in two to three years. Result: New hires report the program provides a holistic training system with balanced knowledge and practice support. New hires also feel cared for by the company regarding their own career management. 20 Source: High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright 2015 Deloitte Development LLC. All rights reserved.
22 Three Steps to Maturity Step 3: Invest in Critical Differentiating Talent Management Practices #HiTalentChina Systemic Relationship with Talent Factor Implement processes and technology systems that enable managers to develop insight into employees strengths, capabilities, and needs. China 2% 18% 55% 23% 3% Create organizational structures that enable effective responses to new talent insights. G2000 2% 20% 41% 33% 4% Provide resources to employees that enable them to develop a conversation with the organization. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Focus on efforts to attract, engage, and develop women and Millennials. 21 Not At All Little/Very Little Somewhat Moderate/Significant Great Extent/Seamless The Systemic Relationship with Talent factor has six dimensions: (1) the organization projects the future supply and demand for talent, (2) succession management conversations happen at every level in the organization, (3) a well-developed talent acquisition function governance model, (4) HR systems designed for usability by end-users, (5) change management needs clearly addressed during HR technology implementations, and (6) employees allowed to invest part of their time in innovation-related projects. Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon, October High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright 2015 Deloitte Development LLC. All rights reserved.
23 Intel Spurs Opportunities for Women in its Chinese Operations #HiTalentChina Intel: One of the world's largest and highest valued semiconductor chip makers, based on revenue. Supplies processors for computer system manufacturers. Objective: In 2005, Intel s Global Diversity and Inclusion (GD&I) team introduced its Global Women s Initiative (WIN) to focus on development and retention of its female employees, who make up 24 percent of the company s employee population. Action: The company encourages women to remain at Intel to build their careers through the Women s Leadership Exchange, the Women Principal Engineer s Forum, and ongoing support from the WIN activities council. Result: WIN collaborates with GD&I to conduct a yearly leadership and development conference for women. These conferences provide valuable workshops on topics such as strategic thinking, which is offered to women managers working in technical roles to sharpen their skills in this area. 22 High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright 2015 Deloitte Development LLC. All rights reserved.
24 Key Takeaways and Questions
25 Key Takeaways #HITalentChina The majority of Chinese organizations are at Level 2 of talent management maturity Increase the perceived procedural fairness of performance appraisal Ensure talent strategy is aligned to business strategy and maintains focus on foundational activities. Provide resources to employees that enable them to develop a conversation with the organization. Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon, October High-Impact Talent Management: Talent Management Maturity in India, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May Copyright 2016 Deloitte Development LLC. All rights reserved.
26 Questions #HITalentChina Stacia Sherman Garr Vice President Talent Management and HR Research Bersin by Deloitte Deloitte Consulting Candace Atamanik Research Manager Talent Management Research Bersin by Deloitte Deloitte Consulting Copyright 2016 Deloitte Development LLC. All rights reserved.
27 About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. Copyright 2016 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
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