Talent Management
The right people in the right place at the right time
XBHR Annual Conference
1 March 2012
Michael Burd
Finding the best talent – in all fields!
What is talent management?
(CIPD 2008)
Talent and skills scarcities – some numbers
• To sustain economic growth, by 2030 the United States will need to add
more than 25 million workers. Western Europe will need to add more
than 45 million employees.
• There are an estimated 214 million international migrants worldwide.
Collectively, they would make up the world’s fifth-largest nation.
• Migration is not only a South-to-North phenomenon; 40% of the world’s
migrants move from one developing country to another.
Source: World Economic Forum and BCG 2011
Talent and skills scarcities – some numbers (2)
• Foreign-born workers with university or equivalent qualifications make up
just 2% of the European labour market, compared with 4.5% in the
United States, 8% in Australia and nearly 10% in Canada.
• Employability will continue to be a huge problem worldwide. Because of
the uneven quality of education systems, only 25% of Indian and 20% of
Russian professionals are currently considered employable by
multinationals.
• Even China faces long-term talent shortages. The number of those
aged 60+ is expanding rapidly, already forming 12.5% of the nation’s
population. The country’s one-child policy and its drop in birth rates
means that by 2050 the 10 workers now supporting each senior citizen
will fall to 2.5.
Source: World Economic Forum and BCG 2011
Key talent management activities
Recruitment and selection
Performance
management and
appraisal
Retaining and
motivating talent
The
employment
life cycle
Leadership
development
Succession planning
Compensation
Key drivers for talent management
• Increasing focus on strategic human resources management
and internal alignment
• Increasing recognition of human capital as a driver of
organisational performance
• Prioritising talent and performance management in the
recession
• Increased investment in developing and supporting managers
• Harnessing positive effect of employer branding and
workplace culture on engagement and retention
• Balancing global and local talent needs
Talent management wheel
Human Resource Management and Industrial Relations, Leadership and Organisational Studies December 2011
Business outcomes
Recruitment costs decrease
Performance at high level
Financial performance improves
Increased retention
Turnover decreases
Better infOrmation about internal candidates
Current challenges
Talent management objectives (%)
CIPD Learning and Talent Development Annual Survey Report 2011
Most effective talent management activities
CIPD Learning and Talent Development Annual Survey Report 2011
Talent management coverage
CIPD Learning and Talent Development Annual Survey Report 2011
Talent shortages across largest economies
Manpower Talent
Shortage Survey
May 2010
Enforceability of post termination restrictions
UK
When are post
termination
restrictions
enforceable?
Compensation
required?
USA
Post-employment
restrictive covenants
enforceable only to the
extent they protect the
employer's legitimate
business interests and
are reasonable taking
into account duration
(generally not over one
year), geographic area
and employee’s
position.
Most states have a
similar position to the
UK (California a major
exception!)
No
No
FRANCE
Similar position to UK,
but duration of up to
two years can be
reasonable.
GERMANY
Must comply with
statutory law.
Must not exceed two
years.
POLAND
Only available posttermination if the
employee had access
to important
information, disclosure
of which could cause
damage to the
employer
Duration must be
reasonable (but there
is no defined
limitation).
Yes, usually at least
30% of salary during
the restriction period
Yes, at least 50% of
salary during the
restriction period
Yes, at least 25% of
salary during the
restriction period
Questions for discussion
1. What approaches to human capital talent management are multi-national
corporations adopting at this time? Are any such approaches currently in vogue
or out of vogue?
2. What are the legal pitfalls that employers in your respective jurisdictions need
generally to consider when recruiting externally or developing top talent? Are
there any special issues when recruiting or promoting across borders?
3. To what extent are talent management systems affected by external megatrends,
such as recession, the war for talent, diversity in populations/workforces,
generational mixes or the way ‘work’ is changing?
4. What are the best (or worst) things you’ve seen in performance reviews? Are
there some best industry practices for assessing and rating performance? What
kind of performance documentation/feedback works best? Are employee selfevaluations a useful tool?
Questions for discussion (2)
5. What issues arise from performance management systems applied across
borders and cultures? For example, do 360º feedback, review panels and/or
self-assessments translate well or badly across geographies? Are there legal
issues in different jurisdictions?
6. Has the ‘up or out’ culture died, or is it still alive and kicking?
7. Is it workable to focus talent management just on top performers or is
underperformance management equally important?
8. Can you retain talent by ‘force’ e.g. through aggressive use of restrictive
covenants?
9. Should Legal play any role in the development and implementation of a talent
management system or should Legal “butt out” and leave it to HR and the
business people?
Thank you