Thought Leaders Webinar
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1 Thought Leaders Webinar Audio Access Code Participants, toll free - Australia: Participants, toll free - New Zealand: Participants, toll free - Singapore: Participants, toll free - Malaysia: Participants, toll free - Philippines: Participants, toll free - Hong Kong: Participants, toll free - China, Northern Region: Participants, toll free - China, Southern Region: Participants, Toll free - USA Participants, International Direct Dial
2 Revolutionizing the Future of Work Customers 3,000,000+ Users 156 Countries 60 Industries 22 Languages 700+ employees
3 Change the World We work with recognized thought leaders that share our vision of productivity improvement, all while creating a better place for people to work. successfactors.com/research/thought-leaders 3
4 Performance and Talent Management Are Pivotal to Drive Financial Performance Growth Financial Profit Performance Shareholder Return Company Strategy and Market Position Explains 15% Alignment Enabler EXECUTION = PERFORMANCE Requirement Explains 85% Motivation x Talent / Competencies x Organizational Ability Recruiting (Buy) Learning (Build) 4
5 SuccessFactors Performance & Talent Management Integrated Application Suite
6 6
7 Dr. Jesse Harriot VP of Research for Monster Worldwide Founder of Monster Intelligence and Monster Insights Dr. Harriott holds an M.A. and a Ph.D. in Experimental Psychology from DePaul University. He has appeared in various media outlets including CNBC, The Wall Street Journal, New York Times, CBS radio, Bloomberg and Reuters 7
8 The Talent Tsunami Attracting, Acquiring and Retaining Talent in an Age of Great Workforce Change Presented By: Jesse Harriott, Ph.D. VP of Monster Insights Jeffrey Quinn Director of Monster Intelligence
9 Three forces set the stage for change 1. Changing Demographics 2. Candidate Empowerment 3. Value of human capital 9
10 Demographic Shift We are about to face a demographically driven shortfall in labor that will make the late 1990 s seem like a minor irritation. - Anthony Carnevale, Former Chairman of the National Commission for Employment Policy 10
11 Workers have the upper hand Despite continued job growth, the national unemployment rate rose in the second half of 2007, ending the year at a level of 5 percent As the labor market continues to loosen up, recruiters should expect more favorable hiring conditions ahead The number of job openings per unemployed has declined but remains at an historically high level As demand and supply continue to adjust, we should see a shift in the labor market balance from the seeker towards the employer Source: Bureau of Labor Statistics, January
12 Global shifts for talent Source: Society of Human Resource Management 12
13 Global demographic changes are happening By 2025 the number of people aged is projected to fall by 7% in Germany, 9% in Italy and 14% in Japan* U.S. faces the departure of the Baby Boomers; approximately half the top people at America's 500 leading companies will retire in the next five years Source: The Economist 13
14 Signs are pointing to an emerging skill shortages The greatest number of surveyed employers who have indicated difficulty in finding the right people to fill jobs: Mexico (78%) Canada (66%) Japan (58%) Source: Manpower 14
15 There are industry specific shortages as well Source: Manpower 15
16 Skills gap compounds the problem Level Education Past 20 years the workforce attending college went from 40% to 60%; it will not move in the next 2 decades 60% 50% 40% Next Two Decades = 7% Growth 30% 20% Last Two Decades = 42% Growth 10% 0% Prime age workers (25-54) with more than a HS degree Sources: Hudson Institute, Educational Testing Service, Kaplan, BLS, American Demographics 16
17 Skills gap compounds the problem Shortage Education plus baby boomer retirement enforces predictions of a skills shortage 190 SKILLED JOBS 180 Projected gap in skilled workers by 2020 = 14 Million UNSKILLED JOBS 170 WORK FORCE Numbers of jobs and workers, in millions (adjusted for multiple job holding) Source: Hudson Institute, Educational Testing Service, Kaplan, BLS, American Demographics 17
18 Managing future generations Estimated U.S.A. Civilian Non-institutional Workforce by Generation 22% 29% 42% 7% Generation Y (Born ) Generation X ( ) Baby Boomers ( ) Schwartzkopf Generation (Born <1946) Ages: Ages: Ages: Ages: 62+ Source: 2006 RainmakerThinking, Inc. Analysis 18
19 Impact of younger generations The seven most important things to know about Generation X & Y Employees 1. They have high expectations of themselves 2. They have high expectations for you 3. They look at every employer as a hub of resources 4. They ask the question: What s the deal around here? 5. Best way to hire Gen Yers Answer the above? 6. Embrace their sense of urgency in the workplace 7. Managing rule Break it down into smaller pieces Source: 2006 RainmakerThinking, Inc. Analysis 19
20 Three forces set the stage for change 1. Changing Demographics 2. Candidate Empowerment 3. Value of human capital 20
21 21
22 Times have changed Years 4 Years? 1955 Today 22
23 The mentality of today s employed job seeker Over 50% are not completely satisfied with their jobs 71% are poised for another opportunity if it comes along 56% regularly look at new job opportunities Source: Monster Intelligence Research 23
24 A paradigm shift Poised 24
25 Three forces set the stage for change 1. Changing Demographics 2. Candidate Empowerment 3. Value of human capital 25
26 Increasing value of talent to the bottom line Technology/IP flows much more freely than in the past Innovation is quickly copied These structural changes do not mean the end of unemployment... Workplaces become decentralized/location not as important Former monopolies fail to compete They mean that TALENT is the remaining advantage 26
27 27 So what does this all mean?
28 28 In a buyer s market sourcing becomes a branding challenge
29 How do you define a brand? 29
30 How should HR organizations prepare? 1. Proactive Recruitment Planning: Attract the best candidates aggressively via employer branding methods 2. Proactive Retention: Retain top percentile players via targeted retention strategies that exemplify the employer brand 30
31 31 Follow the engagement cycle to attract, acquire and advance keepers
32 Who are the Keepers in the organization? 32
33 33
34 34 ATTRACTING KEEPERS while promoting your employer brand
35 35 GE China Invitation to Learn
36 Acquiring Keepers Finding the right one from millions 36
37 37
38 38 Acquiring Keepers
39 We acquire our keepers by removing candidate frustrations Vague Job Descriptions Inflated Requirements Super Candidate Syndrome Lack of Response From Employers Omission of Key Information in the Posted Job 39
40 40
41 We advance our keepers because we value our A players 7 Rules to Follow: 1. Make Supervisors Accountable 2. Enable Work/Life Balance 3. Create Succession Planning 4. Monitor Employee Sentiment 5. Focus efforts on your keepers 6. Produce an employer brand experience 7. Reward internal Mobility 41
42 Where are you today? Create the business case for good hiring Who is most critical to your company s success? What do they want? How do they succeed? Why do they stay (or leave)? What is different about your company? 42
43 43 Questions
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