Strategic Talent
Management Forum
New Era for Talent Management
Today’s challenges and tomorrow’s
opportunities
Keith Caver, North America Practice Leader, Talent Management and
Organizational Alignment, Towers Watson
Difficulty finding the right people
and keeping the people you need
Problems
Attracting
Problems
Retaining
Critical skill employees
72%
56%
High potential employees
60%
55%
Top-performing employees
59%
50%
All employees
31%
25%
Workforce Segment
Source: Towers Watson 2012-2013 Global Talent Management and Rewards Study — Global.
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“
Engagement is at risk.
It’s not about ‘feeling good’…it’s
about having the tools, colleagues,
“
time, capacity to fully
commit to work.
- Towers Watson 2012 Global Workforce Study
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The current state of sustainable
engagement of the global workforce
Source: Towers Watson 2012 Global Workforce Study — Global.
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Further complicating these
challenges are other talent realities
Security
Structural mismatches
Friction points
Skill gaps
Unsustainability
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The next critical skills
global skills
agile thinking
relationship
building
digital business skills
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A deeper look at the emerging skill sets
Global skills
Agile thinking
Dealing with complexity
and ambiguity
Foreign language skills
Ability to manage
diverse employees
Ability to consider and
prepare for multiple scenarios
Ability to work in multiple
overseas locations
Innovation
Cultural sensitivity
Managing paradoxes,
balancing opposing views
Understanding
international markets
Ability to see the “big picture”
0
10
20
30
40
% of respondents
50
0
60
Digital business skills
Relationship building (with customers,
partners, government, etc.)
Ability to work virtually
Teaming (including virtual teaming)
Understanding of corporate
IT software and systems
Collaboration
Digital design skills
Co-creativity and brainstorming
Ability to use social media
and “Web 2.0”
Oral and written communication
10
20
30
40
50
% of respondents
20
30
40
50
% of respondents
0
60
10 20
30
40 50
60 70
% of respondents
Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012.
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60
Relationship building
Digital business skills
0
10
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Future talent friction points
Deficit countries
At equilibrium
Surplus countries
Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012.
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Global forces and trends are changing
demands on employers and employees
Dramatic shifts in skill requirements for future growth,
coupled with increasing misalignment between
supply of/demand for talent worldwide
GWS
Talent 2021
Dispersed and diverse workforce, enabled by
technology to work anywhere, anytime, across
national/organizational boundaries in increasingly
innovative work arrangements
Transformative HR
Ongoing cost pressures and continual belt-tightening
in most markets, increasing employers’ focus on
maximizing workforce productivity
TM&R
Pressured, stressed workforce, struggling to do more
with less, looking for long-term security and stability
in a world that isn’t offering much of either
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What are the strategic implications?
technology
Sustainability
Creative
sourcing
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How to respond
Grow and develop
Hire more from outside
Retain key people
Raise engagement
Improve performance
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Savvy employers will need to think
differently about their practices in the future
Apply the same
rigor, effort and
sophistication to
human capital
planning as to
business planning
Business
rigor
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Think more broadly Embrace the virtual Invest more heavily
– and creatively –
workplace and
in retraining and
about where
support a wide
reskilling
talent is sourced
range of different
work scenarios
Talent
sourcing
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Virtual
workplace
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Re-skilling
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Rethink and
restructure how
certain work
is accomplished
Rethinking
work
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Our latest research
Sustainable engagement
• Engagement is at risk
• Pay continues to be major headline, but career advancement is the new
retention risk
• Talent Paradigm – know the critical roles for future business success; know
your critical talent ; focus your interventions on those holding critical roles,
or your talent that shows critical potential – SEGMENTATION
• MIND THE GAP – about EE/ER differences and
about growing engagement gap
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Behind these numbers are gaps in areas
particularly relevant in today’s environment
Traditionally Engaged
Enablement
Energy

Belief in company goals
and objectives

Freed from obstacles to
succeed at work

Can sustain energy
needed at work

Emotional connection
(pride, recommendation)

Have resources to
perform well

Have social supports in
work environment

Willingness to give
extra effort to support
success

Can meet work
challenges effectively

Have sense of
enthusiasm and
accomplishment at work
Ensuring people are
capable of doing their
jobs well
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Ensuring people have
capacity to perform at
their best
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The payoff for closing gaps in the drivers
of sustainable engagement is substantial
3x
operating margin
High sustainable engagement
companies’ operating margins are
3x higher than those with the
lowest levels of engagement
6.5
fewer days lost
An average of 7.6 days of lost
productivity per year for
employees with high engagement
vs. 14.1 days for the disengaged
41%
lower retention risk
Only 17% of employees with high
engagement are high retention risks
compared to 58% of disengaged
employees
Source: Towers Watson normative database.
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The top drivers are influenced
by an employer’s value proposition,
EVP, and Total Rewards programs
Top Drivers of Sustainable Engagement
1
2
Leadership
Effective at growing the business
Sincere interest in employees’ well-being
Behave consistently with organization’s core values
Trust and confidence in job being done


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
3




4
Goals and Objectives
Good understanding of organization’s business goals
and steps needed to reach those goals
Understanding of how job contributes to the
organization achieving its business goals


5
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

Stress, Balance and Workload
Stress levels at work are manageable
Healthy balance between work and personal life
Work arrangements are flexible
Enough employees in work group to get job done right
Supervision
Treats me with respect
Encourages new ideas and ways of doing things
Acts in ways consistent with his or her words
Effective career development conversations
Image

Organization highly regarded by general public

Organization conducts its business with honesty and
integrity
Source: Towers Watson 2012 Global Workforce Study — Global.
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Differentiate to attract and retain
Use the employee value proposition to drive the right
behaviors and performance.
Differentiate for key employee groups.
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A formalized EVP helps organizations address
critical challenges with attraction, retention and
engagement of talent
5X
Companies that have adopted an
increasingly integrated approach to Total
Rewards strategy, design and delivery
decisions — supported by an
overarching Employee Value Proposition
— are:
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more likely to report their
employees are highly
engaged
2X
more likely to report achieving
financial performance
significantly above their peers
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Questions
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