Dawn Tiura. Procurement s Role in the Future of Talent Management: How to Hire, Engage and Retain Sourcing Talent with an Inter-Generational Workforce

Transcription

1 Dawn Tiura Procurement s Role in the Future of Talent Management: How to Hire, Engage and Retain Sourcing Talent with an Inter-Generational Workforce

2 SIG is a membership organization comprised primarily of Fortune 500/Global 1000 companies NETWORKING EVENTS SIG blends practitioners, service providers and advisory firms with a 75:25 buy-side to sell-side ratio in a completely non-commercial environment, enabling unbiased, trusted insight Virtual events are held regularly with weekly Webinars and monthly Town Hall Teleconferences Live events include Global Summits, Symposiums and Regional Roundtables UPCOMING GLOBAL SUMMITS Oct Carlsbad, CA Mar Amelia Island, FL SYMPOSIUMS Nov 9 London, UK Nov Copenhagen, DK(GBS Roadmap) REGIONAL ROUNDTABLES Nov 3 Pittsburgh, PA

3 Creating a is essential in this business climate and for retaining top talent

4 Why does innovation play such an important role? Innovation helps us: Improve efficiency and effectiveness Save Improve quality Advance industries Maintain a leadership role

5 Innovation in Motion The top 10 in-demand jobs in did not exist in 2004 Did you know We are currently preparing students for jobs that don t yet exist using technologies that haven t been invented in order to solve problems we don t even know are problems yet Source: Did You Know video;

6 Innovation in Motion Did you know If you re 1 in a million in China China will soon become the #1 English speaking country in the world. there are 1,300 people just like you Source: Did You Know video;

7 Innovation in Motion We are living in EXPONENTIAL times there are 34,000 Google searches per second TRANSLATION: 3 BILLION searches a day or 88 BILLION per month! 2006 saw 2.6 billion per month representing growth of over 3,000%...in 6 years! Source: Did You Know video;

8 Innovation in Motion To whom were these questions addressed B.G.? (Before Google) Source: Did You Know video;

9 Innovation in Motion Technological innovations have impacted us faster than any other type The first text message was sent in December 1994 Today the number of text messages sent EACH DAY exceeds the population of the planet Source: Did You Know video;

10 Innovation in Motion 2 years 38 years via radio via Facebook To reach an audience of 50 million people took 3 years via ipod 13 years via TV 4 years via the Internet Source: Did You Know video;

11 Innovation in Motion There about 540,000 words in the English language about FIVE TIMES as many as during Shakespeare s time Source: Did You Know video;

12 Innovation in Motion It is estimated that a week s worth of The New York Times contains more info than a person was likely to come across in a lifetime in the 18 th century If Wikipedia were made into a book, it would be 2.25 million pages long and would take over 123 years to read Source: Did You Know video; Did You Know (Social Media video)

13 Innovation in Motion The amount of new technical information is doubling every two years For students starting a 4-year technical degree, this means that half of what they learn in their first year of study will be outdated by their third year of study! Source: Did You Know video;

14 has redefined everything we do

15 Innovation in Motion Did you know there has never been a bigger force for change than technology. Source:

16 Innovation in Motion It changes EVERYTHING how we SHOP how we SOCIALIZE even how we TALK! Source:

17 has even redefined procurement

18 Technology and process innovations have made significant strides Big Data Crowdsourcing Risk Management What s Next? SRM LCCS Spend Visibility BPO/KPO/Outsourcing TCO esourcing Reverse Auctions 1990 eprocurement Strategic Sourcing Source: Denali Group Research

19 in the evolution of sourcing from a clerical function to a strategic one that creates shareholder value Manage Cost Manage Shareholder Value Tactical Strategic

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21 From an age of mechanistic systems to collaborative Lessons to be learned from pre-urban era when mankind lived in villages Collaborative Few in power Everyone contributed Lessons passed through mentorship Privacy disappeared and everyone knew everyone The new era of flatter and smaller organizations are evolving Learning is everyone s responsibility and all the time Urban work can be seen as the village augmented with the virtual world

22 Five leading edge trends that will continue to grow and challenge the mechanistic organization Social business Social leadership Transparency, analytics and privacy Concept of the employee in the era of co-creation Working smarter: weaving together knowledge from data, people and life Source: * Five Trends That Will Shape Our Future from the Future of Talent Institute

23 The role of sourcing professionals is changing Sourcing s role is expanding beyond its more limited definition in the past Trends Procurement and sourcing will have a seat on the executive floor involve more outsourcing, both within and outside of Procurement evolve from category management to broader global portfolio management will govern SRM which will be executed at the business level take more collaborative approaches to managing key vendor relationships play a more strategic role in cash management Source: Denali Group Research 2010

24 The virtual sourcing organization will evolve Sourcing will evolve into a mix of strategic in-house resources and on-demand transactional resources Source: Denali Group Research 2010

25 The use of contingent labor is becoming more prevalent The pressure to do more with less has resulted in increased use of a contingent workforce Trends and Predictions Independent workers will be more scrutinized Companies utilize more just-in-time expertise Alternative workforce arrangements will be leveraged More people will alternate between full-time and contractbased opportunities The independent work path will be more heavily utilized Source: Five Key Predictions for the Future Workforce, Jay Lash, MBO Partners, SIG InsideSourcing Newsletter, January 2013

26 Worker misclassification can cause major issues with contingent labor Challenges Having a contingent workforce with many independent contractors can cause challenges for employers Policies are in place but are almost never universally followed People work around policies for various reasons Policies must be mindful of independent contractors needs Misclassification can cause problems for employers Source: MBO Partners, Recognizing Misclassification Risk, SIG Webinar, October 2011

27 Some of the biggest challenges are integration issues Challenges Contingent labor doesn t get the same benefits that employees do Often there are are questions over who owns the contingent workforce Using contingent labor globally presents even more issues Integration of employees and contingent labor must be managed Expectations of contingent labor should be clearly defined

28 Trends Investing in next generation organizational capabilities Organizations are made up of people, process and technology. What about knowledge? Sourcing organizations will: Have a dedicated Center of Excellence Use more creative approaches for attracting, motivating and retaining Gen Y workers Use creative training approaches to support talent management programs Source: Denali Group Research 2010

29 Sourcing organizations must rethink talent management Sourcing organizations will reshape their expectations and compensation models for talent Source: Denali Group Research 2010

30 You cannot underestimate the importance of talent management Talent management is an organization's commitment to recruit, retain, and develop the most talented and superior employees available in the job market Source:

31 Even Bill Gates will tell you Take our 20 best people away and I can tell you that Microsoft would become an unimportant company. In other words your people ALONE can be a competitive differentiator

32 Procurement s evolution has resulted in a major shift in requirements in supply chain roles In large part, this is because the landscape has changed New processes have emerged that did not exist years ago New tools and technologies are being used The markets have changed and become increasingly globalized There are higher expectations on Supply Chain organizations to contribute to operating results Source: Denali Group Research 2011

33 and so has the employment market Economic and employment conditions have moderated, but unemployment rates remain high Pressure and opportunity to do more with less Talent surplus is as much a reality as a talent shortage Cultural fit will be the great differentiator Good talent has choice Source: Denali Group Research 2011

34 But the war for talent is complicated by generational factors Generation Age Characteristics and Values Motivators Traditionalists 65+ Security, work ethic, longevity Value respect, part-time hours, temporary employment Baby Boomers 40 s to 60 s Flexibility, work-life balance Feel needed, be part of a team, training, flexible retirement options Gen X 30 s to 40 s Community, selfdiscovery, collaboration Immediate feedback, flexible work environments, results focused Gen Y Under 30 Spontaneity, no absolutes, informal Mentors, technology, learning opportunities, work/life balance, recognition, career mobility Source: Denali Group Research 2011;

35 How do we today for tomorrow s

36 Innovation in Motion Facebook now tops Google for weekly traffic in the US it even impacts offline behavior 1 in 5 couples meet online but 1 in 5 divorces blamed on Facebook Source: Did You Know (Social Media video)

37 Innovation in Motion Technology influences opinions and should be factored into any Talent Management strategy An education study revealed that online students outperformed those receiving face-to-face instruction. LinkedIn has over 50 million members worldwide that s a growth of 1 million members per month since 2009 Source: Did You Know (Social Media video) World of Social Media in 2011 video,

38 Innovation in Motion 34% of bloggers post opinions about products and brands do you like what they are saying about your brand? You d better. Source: Did You Know (Social Media video)

39 Innovation in Motion What happens in Vegas stays on The importance of social media cannot be underestimated Source: Did You Know (Social Media video)

40 Companies take a holistic approach to the employment lifecycle What companies must GET RIGHT: Talent Strategy transparent strategy aligning closely to and executing against organizational goals Recruiting Strategy utilizing fewer job boards and more social networking tools Selection and Onboarding of Leaders and Employees finding the right leaders, with the right behaviors and the right skills Performance Management communicating expectations and processes transparently Development/Training drive experiential, relational and traditional development and training opportunities from the top Compensation developing evolutionary compensation and incentive plans; rewarding managers for developing and retaining high performers Retention and Succession maintaining a deep and robust talent pipeline Source: Adapted from Denali Group Research 2011

41 Most effective ways to retain high performers Career advancement opportunities Dedicated career and development planning Work/life balance Innovative compensation and benefit plans Challenging work Individual succession plans Non-financial incentives Company culture / management team Source: Denali Group Survey of Supply Chain Professionals

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43 Dawn Tiura President and CEO, SIG URL: phone: