--Today’s_Business_Environment_The_Impact_on_HR

TalentMagnetsSession1:Whatistheissue?NicoleSexton21August2001Today’sBusinessEnvironmentTheImpactonHRWilliamM.Mercer,Incorporated1IsTalentanIssue?“Wespendallourtimeonpeople.Thedaywescrewupthepeoplething,thiscompanyisover”.JackWelch,GeneralElectric“Takeour20bestpeopleawayandIcantellyouthatMicrosoftwouldbecomeanunimportantcompany”BillGates,Microsoft“”ThenextbigkillerapplicationfortheInternetisgoingtobeineducation”JohnChambers,CiscoSystemsWilliamM.Mercer,Incorporated2AgendaToday’sbusinessenvironment–What’shappeningglobally?–What’shappeninginChina?ImpactonHR–The“WarforTalent”–EmployerofChoice–CommitmentWhatdoesitmean?Today’sBusinessEnvironmentWilliamM.Mercer,Incorporated4DoesthisSeemFamiliar?WilliamM.Mercer,Incorporated5TheChangingWorld-LabourCompetitionwillbeIntensified-Supplyoftalentisdecliningglobally-2-10123456SingaporeJapanChinaHongKongSKoreaTaiwanUnitedKingdomUnitedStatesSingapore4.82.31.52.31.60.90.60.40-0.3Japan1.211.10.60.20.1-0.3-0.6-0.6-0.8China1.52.31.81.510.60.50.1-0.2-0.5HongKong3.22.52.51.2210.2-0.2-0.5-1SKorea1.72.61.71.210.70.40.1-0.1-0.4Taiwan3.42.621.30.90.70.50.20-0.3UnitedKingdom0.40.60.10.20.30.10-0.1-0.4-0.6UnitedStates1.71.310.910.80.80.70.60.61950-19601960-19701970-19801980-19901990-20002000-20102010-20202020-20302030-20402040-2050USCensusBureauWilliamM.Mercer,Incorporated6WhatishappeningintheCurrentBusinessEnvironment?Globalisation-1world,1market-the“globalvillage”IncreasedandfiercercompetitionTimetomarketandfirstentryreplacecostastheprimarydriverofbusinesssuccessRapidgrowthisessentialFocusonquarterlyresultsIncreasedimportanceofstockpriceWilliamM.Mercer,Incorporated7WhatishappeningintheCurrentBusinessEnvironment(Cont.)?Technology-the“InformationAge”e-business&e-knowledgethegrowthareasValueChaincrucialforbusinesscompetitiveness&HRServicesProfitabilityequalscostsandrevenuegrowthChangingbusinessmodelsWilliamM.Mercer,Incorporated8WhatishappeningintheCurrentBusinessEnvironment(Cont.)?Attracting,retainingandmeasuringcompetenceandIntellectualCapitalisthekeytobusinesssuccessTalenthasreplacedcapitalandideasasthemostcriticalsuccessfactor(SurveyofVC’s)Talentisthebiggestlimitingfactortocorporategrowthandthefundingofstart-upideasWilliamM.Mercer,Incorporated9WhatishappeningintheCurrentBusinessEnvironment(Cont.)?Decliningworkforce-babyboomersleaving2003Velocityofjobchanges/lateralmovesdoublesevery3yearsEmployersandindividuals-newparadigmWilliamM.Mercer,Incorporated10ShiftingParadigmonEmployersofChoiceEmployeeInvestorWageEarnerProfitSharerLoyaltytotheFirmLoyaltytotheWorkIndividualLearningSocialFormsofLearningRigidWorkConditionsFlexibleWorkConditionsImposedPerformanceSelf-ManagedReviewsDevelopmentWilliamM.Mercer,Incorporated11ShiftingParadigmonEmployersofChoicePaidforTimeRewardforResultsInformationControlledOpenAccesstoInformationSuccessBasedonSuccessbasedonTeamIndividualPerformanceInterdependenciesandCommunitiesofPracticeWilliamM.Mercer,Incorporated12WhatisHappeninginChina?Semi-conductorandITcompaniesaremovingoperationstoShanghaiTaiwanesecompaniesareinvestingheavilyintheSuzhou/Shanghaicorridor–1000Taiwanesecompanieshaveinvested$10billioninKunshaninthelast10years(NewsweekJuly2001)50%ofJapanesemajormanufacturersareplanningtomovetheirmanufacturingoperationsfromJapantoAsiawithinthenext3years–70%toChina(NikkeiNewspaperArticle9August2001)WilliamM.Mercer,Incorporated13WhatisHappeninginChinaCont.?TheMercerRelocationSurvey2001says….–26.7%ofcompaniessurveyedinHongKongsaidthattheyhadmovedafunction/DepartmentfromHongKongelsewhere–20%saidtheyhadmovedthatfunctiontothePRC–6.7%saidtheyhadmovedthatfunctiontoGuangzhou–13.3%saidtheyplannedtomoveanotherfunctionfromHongKongelsewhereLet’sLinkthistoHRWilliamM.Mercer,Incorporated15TheWarForTalentThevastmajorityofemployersarefindingitincreasinglydifficulttoattractandretainstaff,creatinga“warfortalent”amongstemployersMostkeyprofessionalemploymentareasarecandidateshortattheseniorandoperationalendsofthemarketCompaniesarecompetingforthesametalentThewaris...toattracttherightpooloftalentandretainexistingskilledemployeesWilliamM.Mercer,Incorporated16TheWarForTalentCont.EmployeesarenowmoreawareoftheirrelativeworthinthemarketplaceandfocusedondevelopingtheircareerpathinafarmorestrategicmannerthanbeforeItsimportantformanagerstoknow–whatstrategiesareavailabletoattractthebestcandidates–retainthestafftheycanleastaffordtoloose–HowtobeamagnetfortalentWilliamM.Mercer,Incorporated17WhatOtherOrganisationsareFacing?75%companiessaytheydon’thaveenoughtalentOnly10%companiesmanagetheirtalentpoolwellThedemandfortalentisincreasingThesupplyisdecreasingMobilityisincreasingItcostsupto10timespaytoreplaceTopTalentAglobal“feedingfrenzy”isalreadyhappeningWilliamM.Mercer,Incorporated18LeadershipSkillDevelopmentToday’sLeadershipPoolisInadequateTop300TalentPool9%5%21%65%0%20%40%60%80%100%VeryStrongCadreAdequateTalentInsufficientTalentChronicallyShortacrosstheBoardMcKinseyWarforTalent1998PercentageofCorporateOfficersWilliamM.Mercer,Incorporated19WhatMakesanEmployero