The Impact of a Recovering Economy on Talent Acquisition & Retention. Robin Erickson, Ph.D. Vice President Talent Acquisition Research April 1, 2014
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1 The Impact of a Recovering Economy on Talent Acquisition & Retention Robin Erickson, Ph.D. Vice President Talent Acquisition Research April 1, 2014
2 Agenda Retention & Talent Acquisition Trends (11:00 11:15) Table Discussion: Retention (11:15 11:35) Report out: (11:35 11:45) Table Discussion: Talent Acquisition (11:45 12:05) Report out: (12:05 12:15) 1 IMPACT 2014 THE BUSINESS OF TALENT
3 Global Human Capital Trends 2014 Bersin by Deloitte and Deloitte Consulting LLP recently published the Global Human Capital Trends 2014 report 2,532 leaders in 94 countries were surveyed to identify the top 12 global talent challenges As the world comes out of the recession, organizations see a new workforce, one that s younger, more demanding, and more dynamic than ever Source: Global Human Capital Trends 2014: Engaging the 21st-Century Workforce, Deloitte University Press, March IMPACT 2014 THE BUSINESS OF TALENT
4 Retention & Talent Acquisition: Now a CEO-Level Concern Attracting, developing, and retaining skilled employees are no longer simply the concerns of talent acquisition leaders and recruiting managers; rather, these efforts are consistently listed as one of the top concerns of global CEOs, alongside growing the business and becoming more profitable. % rated Urgent or Important Leadership Gaps 89% Retention & Engagement 78% Reskilling HR 78% Talent Acquisition & Access 75% Workforce Capabilities 75% Talent & HR Analytics 74% Globalized HR & Talent Management 71% Integrated HR Technology 70% Reinvent L&D 69% Fix Performance Management 67% The Overwhelmed Employee 62% Diversity & Inclusion 60% 0% 20% 40% 60% 80% 100% Source: Global Human Capital Trends 2014: Engaging the 21st-Century Workforce, Deloitte University Press, March IMPACT 2014 THE BUSINESS OF TALENT
5 Has your organization been experiencing voluntary turnover? 0-10 % % Over 20% 4 IMPACT 2014 THE BUSINESS OF TALENT
6 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Quit Level (in Thousands of Employees) Quit Level (In Thousands of Employees) Cyclical Rise in Voluntary Turnover After a Downturn Quit Level of Employees vs. Unemployment Rate Quit Level of Employees vs. Conference Board Consumer Confidence Index 4000 Correlation -96% Unemployment Rate Correlation 85% Conference Board Consumer Confidence Index Date Quit Level in Thousands of Employees, Total Nonfarm, Seasonally Adjusted Unemployment Rate, Seasonally Adjusted Date Quit Level in Thousands of Employees, Total Nonfarm, Seasonally Adjusted Conference Board Consumer Confidence Index Source: Bersin by Deloitte, IMPACT 2014 THE BUSINESS OF TALENT
7 Retention & Engagement Capability Gaps The challenge is for companies to think about the talent experience in a non-traditional way while fostering greater engagement and alignment of corporate objectives and employee goals Source: Global Human Capital Trends 2014: Engaging the 21st-Century Workforce, Deloitte University Press, March IMPACT 2014 THE BUSINESS OF TALENT
8 Go Versus Stay Top 10 Factors that Would Cause Employees to Look for New Employment Top 10 Factors that Would Be Most Effective in Keeping Employees with their Current Employer Source: Talent 2020: Surveying the talent paradox from the employee perspective, September 2012, Deloitte Consulting LLP. 7 IMPACT 2014 THE BUSINESS OF TALENT
9 Talent Acquisition Capability Gap To stay relevant in the 2014 talent market, Talent Acquisition should act more like marketing and innovate across processes Source: Global Human Capital Trends 2014: Engaging the 21st-Century Workforce, Deloitte University Press, March IMPACT 2014 THE BUSINESS OF TALENT
10 Talent Acquisition Performance Drivers Hiring Manager Relationships Candidate Pool Development Social Media Campaign Recruiter Training Governance & Decision Making Employee Referral Program TA Program Management Optimized TA Technology Diverse Candidate Slates Employment Branding Assessment Against Requirements Reporting & Analytics Source: High-Impact Talent Acquisition, Bersin by Deloitte, IMPACT 2014 THE BUSINESS OF TALENT
11 The Millennial Generation Younger employees, or the Millennial generation make up 34% of the global workforce today; by 2025, this will rise to 75% More than 78% of Millennial workers state that they are strongly influenced by how innovative a company is when considering employers Millennial workers are motivated by more than compensation; they thrive on work/life balance, purpose and leadership development Source: Global Human Capital Trends 2014: Engaging the 21st-Century Workforce, Deloitte University Press, March IMPACT 2014 THE BUSINESS OF TALENT
12 Leveraging Employment Brand Become an Employer of Choice through cultivating a strong, authentic, and sustainable employment brand 11 IMPACT 2014 THE BUSINESS OF TALENT
13 Table Discussions
14 Discussion 1: Retention How can you create a retention firewall that keeps employees in and competitors out? 13 IMPACT 2014 THE BUSINESS OF TALENT
15 Discussion 2: Talent Acquisition What can organizations do today to better prepare themselves to acquire the workforce of tomorrow? 14 IMPACT 2014 THE BUSINESS OF TALENT
16 Contact Information Presenter Robin Erickson, Ph.D. Vice President Talent Acquisition Research Bersin by Deloitte Robin leads Bersin by Deloitte s Talent Acquisition practice where she conducts industry surveys, researches leading practices, writes reports, and develops frameworks and tools. Drawing on over 20 years in Human Capital consulting and her academic research, Robin is a frequent speaker and writer on talent management issues, including talent acquisition, retention, and employee engagement. 15 IMPACT 2014 THE BUSINESS OF TALENT
17 This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. 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. 36 USC Member of Deloitte Touche Tohmatsu Limited
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