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Talent
MagnetsSession
1:What
is
theissue?Today’s
Business
EnvironmentThe
Impact
on
HRNicole
Sexton21
August
2001Is
Talent
an
Issue?“We
spend
all
our
time
onpeople.
The
day
we
screwup
the
people
thing,
thiscompany
isover”.Jack
Welch,
General
Electric“Take
our
20
best
people
awayand
I
can
tell
you
thatMicrosoft
would
become
anunimportant
company”Bill
Gates,
Microsoft“”The
next
big
killerapplication
for
theInternet
is
going
tobe
ineducation”William
M.
Mercer,
Incorporated1John
Chambers,
Cisco
SystemsAgendaWilliam
M.
Mercer,
Incorporated2Today’s
business
environmentWhat’s
happening
globally?What’s
happening
in
China?Impact
on
HRThe
“War
for
Talent”Employer
of
ChoiceCommitmentWhat
does
it
mean?Today’s
Business
EnvironmentDoes
this
Seem
Familiar?William
M.
Mercer,
Incorporated4The
Changing
WorldWilliam
M.
Mercer,
IncorporatedUS
Census
Bureau5Labour
Competition
will
be
IntensifiedSupply
of
talent
is
declining
globallyWhat
is
happening
in
the
CurrentBusiness
Environment?William
M.
Mercer,
Incorporated6
Globalisation
-
1
world,
1
market
-
the
“global
village”
Increased
and
fiercer
competition
Time
to
market
and
first
entryreplacecost
as
the
primarydriver
of
businesssuccess
Rapid
growth
isessential
Focus
on
quarterlyresults
Increased
importance
of
stock
priceWhat
is
happening
in
the
CurrentBusiness
Environment
(Cont.)?William
M.
Mercer,
Incorporated7
Technology-
the
“Information
Age”
e-business
&e-knowledge
the
growthareas
Value
Chain
crucial
for
business
competitiveness
&
HRServices
Profitability
equals
costs
and
revenue
growth
Changing
business
modelsWhat
is
happening
in
the
CurrentBusiness
Environment
(Cont.)?William
M.
Mercer,
Incorporated8
Attracting,
retaining
and
measuring
competenceandIntellectual
Capital
is
the
key
to
business
success
Talent
has
replaced
capital
and
ideas
as
the
most
criticalsuccess
factor(Survey
ofVC’s)
Talent
is
the
biggest
limiting
factor
to
corporate
growthand
thefunding
of
start-up
ideasWhat
is
happening
in
the
CurrentBusiness
Environment
(Cont.)?William
M.
Mercer,
Incorporated9
Declining
workforce
-
baby
boomers
leaving
2003
Velocity
of
job
changes/
lateral
moves
doubles
every
3years
Employers
and
individuals
-
new
paradigmShifting
Paradigm
on
Employers
of
ChoiceWilliam
M.
Mercer,
Incorporated10Employee
InvestorWage
Earner
Profit
SharerLoyalty
to
the
Firm
Loyalty
to
the
WorkIndividual
Learning
Social
Forms
ofLearningRigid
Work
Conditions
Flexible
Work
ConditionsImposed
PerformanceReviews
Self-
ManagedDevelopmentShifting
Paradigm
on
Employers
of
ChoiceWilliam
M.
Mercer,
Incorporated11Paid
for
Time
Reward
for
ResultsInformation
Controlled
Open
AccesstoInformationSuccess
Basedon
Success
based
on
TeamIndividual
PerformanceInterdependencies
andCommunities
of
PracticeWhat
is
Happening
in
China?William
M.
Mercer,
Incorporated12Semi-conductor
andIT
companies
are
movingoperations
to
ShanghaiTaiwanese
companies
are
investing
heavily
intheSuzhou
/
Shanghai
corridor1000
Taiwanese
companies
have
invested
$10
billionin
Kunshan
in
the
last
10
years
(Newsweek
July
2001)50%
of
Japanese
major
manufacturers
are
planning
tomove
their
manufacturing
operations
from
Japan
toAsia
within
the
next
3
years70%toChina
(Nikkei
Newspaper
Article
9
August
2001)What
is
Happening
in
China
Cont.?William
M.
Mercer,
Incorporated13The
Mercer
Relocation
Survey
2001
says….26.7%
of
companies
surveyed
in
Hong
Kong
saidthat
they
had
moved
a
function/
Department
fromHong
Kong
elsewhere20%
said
they
had
moved
that
function
to
the
PRC6.7%
said
they
had
moved
that
function
toGuangzhou13.3%
said
they
planned
to
move
anotherfunctionfrom
Hong
Kong
elsewhereLet’s
Link
this
to
HRThe
War
ForTalentWilliam
M.
Mercer,
Incorporated15The
vast
majority
of
employers
are
finding
it
increasinglydifficult
to
attract
and
retain
staff,
creating
a
“war
fortalent”
amongst
employersMost
key
professional
employment
areas
are
candidateshort
at
the
senior
and
operational
ends
of
themarketCompanies
are
competing
for
the
same
talentThe
war
is
...to
attract
the
right
pool
of
talent
and
retainexisting
skilled
employeesThe
War
For
Talent
Cont.William
M.
Mercer,
Incorporated16Employees
are
now
more
aware
of
their
relativeworthin
the
marketplace
and
focused
on
developing
theircareer
path
in
a
far
more
strategic
manner
than
beforeIts
important
for
managers
to
knowwhat
strategies
are
available
to
attract
the
bestcandidatesretain
the
staff
they
can
least
afford
to
looseHow
tobe
amagnet
for
talentWhat
Other
Organisations
are
Facing?William
M.
Mercer,
Incorporated1775%
companies
say
they
don’t
have
enough
talentOnly
10%
companies
manage
their
talent
pool
wellThe
demand
for
talent
isincreasingThe
supply
is
decreasingMobility
is
increasingIt
costs
up
to
10
times
pay
to
replace
Top
TalentA
global
“feeding
frenzy”
is
alreadyhappeningLeadership
Skill
DevelopmentToday’s
Leadership
Pool
is
InadequateWilliam
M.
Mercer,
Incorporated18What
Makes
an
Employer
of
Choice?William
M.
Mercer,
Incorporated19The
survey
says
that
employees
want….
(TMP
Worldwide2000)
CommitmentPurchasing
resources
to
support
projectsAn
organisational
“core”
valueDemonstrated
by
staffLong
term
commitment
from
the
company
in
terms
ofcorporate
commitment
to
direction
and
the
employees’personal
developmentCompany
must
create
a
growth
environment
thatallows
recruits
to
groworganicallyWhat
Makes
an
Employer
of
ChoiceCont?William
M.
Mercer,
Incorporated20
Company
with
Visionand
a
plan
for
thefutureThe
ability
to
communicate
this
tostaff
Organisational
FlexibilityTo
meet
the
challenges
of
a
new
eraCandidates
are
assured
their
careers
will
not
stagnateRemuneration,
interesting
projects,
motivating
environment
The
Benefits
Package
offered
to
staff
(eg.training)
Perceived
image
of
the
organisation
in
the
marketplaceWhat
Comprises
Commitment?William
M.
Mercer,
Incorporated21I
am
treated
fairly
by
my
employer(58%)My
employer
shows
genuine
care
and
concern
for
mywellbeing
(50%)I
am
trusted
in
my
job
(48%)Overall
reputation
is
excellent
(67%)My
job
provides
a
sense
of
achievement
for
me(45%)(AIM
Survey
2000
-
ChinaResults)So
What
Does
All
ThisMean?Especially
for
Guangzhou?So
What
Does
All
ThisMean?William
M.
Mercer,
Incorporated23It’s
a
competitive
world
o
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