How are world-class companies managing their people in 2014 and beyond? This detailed research-based presentation overviews the new solutions for talent acquisition, leadership development, engagement, building Millenial leadership and employee capability development.

1. 21st Century
Talent Management:
Thriving in the New Workforce and New Workplace
Josh Bersin
Principal, Deloitte Consulting LLP
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2.  Who We Are
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Global provider of leading practices, trends, and benchmarking research in
talent management, learning, and strategic HR.
60% of the Fortune 100 are Bersin by Deloitte research members, with
more than 19.5 million employees managed by HR teams using Bersin
Research.
 Broad Research Practices
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Human Resources
Leadership Development
Learning & Development
Talent Acquisition
Talent Management
 Offerings
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WhatWorks® Membership: Research, Tools, Education, Benchmarking
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IMPACT®: The industry’s premiere conference on the Business of Talent
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Human
Resources
Leadership
Development
Learning &
Development
Talent
Acquisition
Advisory Services & Consulting
Talent
Management
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3. Agenda
 Today’s Talent Challenges
 Talent Management: Then and Now
 21st Century Talent Management: Things are Different
1. Rethink Talent Acquisition
2. Redo Performance Management
3. Improve Engagement and Retention
4. Understand Millenials needs
5. Deliver Continuous Learning
6. Create 21st Century Leadership
7. Invest in Talent Analytics and BigData
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4. What HR Leaders Say
We are shifting our
business to a services
business. How do I
transform the workforce?
How do we more
rapidly move talent
from early leadership
to senior leadership?
The skills of our HR
business partners and
specialists need
improvement.
How can I retain and
engage my top talent?
We need to
restructure HR to
build common
systems and reduce
costs.
Our training organization
is too expensive and not
driving enough value.
Our mid-level and
entry leadership gaps
are still huge
Our company has
capability gaps in new
technology areas across
the organization.
We are still having
trouble attracting
millenials and GenX
workers.
How do we create more
collaboration and knowledge
sharing across the company?
How do we
increase women
and diversity in
leadership?
We need to accelerate
hiring of senior and
mid leadership in Asia
and Middle east.
Our performance
and comp process
is obsolete and not
engaging people.
How can we globalize
our employment
brand and talent
programs??
We compete for engineers with
some of the most successful
silicon valley companies? How
can I attract and retain the
brightest in our company?
We need better data
and analytics in HR.
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5. Talent is a CEO Level Issue
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6. Shift in Global Economic Activity to India, China from US and EU
India 3% to 6%
China 2% to 18%
EU 31% to 17%
US 25 to 18%
Deloitte Human Capital
Trends 2013
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7. The World is Flat
The World is Local
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8. Talent Management
The Big Shift
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9. “Integrated” Talent Management
 Slow Response to Changing Business Needs
Traditional Silos of HR
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Inability to identify current and future talent gaps
Hiring strategy and development planning not in sync
No clear picture of future “talent profile”
Leadership pipelines in jeopardy
 Disconnected Decision Making
Compensation - Benefits
Succession Planning
Leadership Development
Performance Management
Sourcing & Recruiting
Workforce Planning
Learning & Development
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Data and processes not integrated
Talent not shared across business units
Learning plans not linked to assessments and skills
gaps in current talent pool
Lack of visibility into talent gaps
 Not responsive to Employee Demands
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Employees want career development
Defined career paths and competencies not clear and
consistent
Talent mobility difficult during change
Managers still the weakest link in organizational
performance
 Administratively Intensive
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Data entry is repetitive
High volume of manual work to complete HR review
processes
Difficult to obtain executive-level talent information
Hard to plan for the future
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10. The Big Shift
2013+
..Embed
(and “Datify”)
2013+
..Optimize
(Globally)
2005-2012
Automate &
Integrate
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11. Recreating the HR Organization
Where HR Transformation is Taking us in 2013
BusinessIntegrated HR
Integrated Talent
Management
Strategic
HR
Personnel
Department
Administration
Payroll
Regulation
Back Office Function
Recruiting, L&D, Org Design
Total Rewards
Service Center, COE
HR Business Partner
Management, Succession,
Leadership, Coaching,
Integrated Processes
Talent Management
Differentiate & Segment Talent
Globally Optimize Talent Practices
Predict and Analyze Data
Integrated with the Business
Drive the Business
Plan for the Future
Enable Decisions
and Management
Serve Staff
Automate
Control
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12. 1
Talent Acquisition:
Unleashed
“The Most Important part of Talent Management”
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13. The War for The Best People
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14. What Makes a Great Employer?
Universum Global Employment
Brand Research, n=2300
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15. 15

16. 16

17. Importance of Global Governance
Attracting the right candidate in the right place
quickly, efficiently, and consistently
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18. Corporate Recruiting Today
Sourcing Continues to be Critical
Where Candidates Come From
$3300 per hire
Up 6% in 2012
Employee
referrals, 14%
Search
aggregators, 8%
Job boards, 18%
Internal
candidates, 18%
Other, 2%
Print, newspaper,
billboards, 3%
University
recruiting, 7%
Time to Hire
55 Days
Company website,
14%
Agencies, 3rd
party recruiters,
9%
Professional
networking sites,
9%
Bersin High-Impact Talent Acquisition, 2013
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19. Using Next Generation Tools
Remarkable
Hire
GILD
Remarkable
Talent
Entelo
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20. Key Practices that Drive Value
High-Impact Talent Acquisition – High-Impact vs. Average
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21. 2
Performance Management
Unleashed
“Re-Engineering the Performance Process”
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22. Value of Performance Management
Companies are Questioning the Traditional Model
Economic Recovery
Layoffs, Restructuring
Performance to Survive
Changing the
Performance
Management
Process
Borderless Workplace
Change in Demographics
New Labor Market
Value of
Performance
Management
2008
2009
2010
2011
2012
2013
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23. Two Philosophies
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24. Performance Management Today
In the Past
Today
Annual appraisal and rating
Continuous feedback and coaching
Annual goals and objectives
Quarterly or regular goal setting
Annual talent reviews by team
Continuous talent reviews by peers
and manager
Development as afterthought
Development as core
Recognition by manager
Recognition by peers
Career plan for promotion
Career plan for great projects and
mobility
Up or Out
Across, down, up, and around
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25. Reimagining the Performance Review using Agile Development
Our Performance Management
goal:
Inspire and motivate employees to
achieve higher levels of
performance .
© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

26. Performance Review Result
“Stack ranking is a soul-less and soul
crushing exercise.”
+ Attrition Spike & Loss of
Talent
– Adobe manager
+ Barrier to Teamwork &
Innovation
“I have seen and experienced the
reaction to the review process being a
primary driver in driving good people
from the company.”
+ Impacts Internal Focus &
Productivity
– Adobe manager
+ Impacts Morale &
Engagement
“What is important is the conversation
between the employee and the
manager.”
___________________
– Adobe manager
It’s time for change
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27. Balancing Structure & Flexibility
Performance Check-in
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Clear and up to date
expectations revisited
throughout the year
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Timing and methods flexible

No ranking or forced
distributions to determine
rewards

No written formal review*
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Annual compensation planning

Managers are responsible to
differentiate pay based on
performance and market
conditions

No fixed guidelines
Ongoing feedback focused on
performance

Rewards Check-in
© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

28. Kelly Services
Clarifying the Purpose of PM
Performance
Feedback
Employee
Motivation
Coaching for
Development
Compensation
PERFORMANCE
MANAGEMENT
Legal
Legal
Documents
Documents
Talent
Talent
Decisions
Decisions
Performance
Improvement
Source:
“Getting
Away from
the Score:
Creating
Better
Ongoing
Performance
Feedback,”
Bersin &
Associates,
2012.
.
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29. Millenials Take Over
3
“Diversity, Inclusion, Mission, Culture
Work-Life Balance, and Work Environment.”
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30. The Environment has Changed
Family Structure & Role of Women
Flattened Organizations
1970s: GM
has 22 layers
Today it has 7
Value from Intangible Assets
1970s
Today
60%
85%
Desire for Work-Life Fit
Millenials
8%
Boomers
30%
92%
“60% of the skills needed in the next 20
years are not even invented yet.”
- World Economic Forum
70%
Want job flexibility
Work-life not big priority
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31. Millenials are Different
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32. Millenials: Recognition, Career
Growth, Flexible Work Environment
Millenials
Boomers and
Others
Career Growth
4.7
4.2
Global Opportunities
4.9
4.3
Focus on short term
rather than long term
opportunities
2.9
4.3
Clearly defined job
descriptions
2.7
4.4
Challenging roles
4.5
3.8
Relationship with
immediate manager
3.8
4.4
Work from home option
4.5
3.7
Use all vacation time
4.1
3.4
Rewards and recognition
4.6
4.5
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33. Transparency: Millenials Expect It
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34. The Millenial Puzzle
Loyalty
To people
(boss) not
just the
organization
Of their peers,
not just their
managers,
“collective
intelligence”
Approval
Achievement
Accomplishment
matters, but so
does “innovation”
They “verify”
truth with their
friends and
their own
sources
Trust
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35. What to Do
Embed
Purpose
and
Meaning
Dismantle
the
Ladder
Provide
Challenge,
Recognition,
& Learning
Give Voice
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36. 4
Engagement and Retention
Unleashed
“Diversity, Inclusion, Mission, Culture
Work-Life Balance, and Work Environment.”
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37. Colliding Factors in Engagement
Racial and
Cultural
Diversity
Virtual
Work
Environment
Gender
Women
A Passionate,
Highly Engaged
Workplace?
Unemploym
ent
Stress
Work Life
Balance
Youth
Part Time
Contingent
Work
Technology
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38. Engagement Still an Issue
Even coming out of the recession, 40% of employees are “disengaged”
Europe improving
but North America
is down. Still 40%
“disengaged.”
Aon Hewitt 2013 Engagement Trends
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39. Demand for Workplace Flexibility
• 68% of women without children would rather have more free
time than make more money — even more than those with
children (62%).
More magazine – 2012, “Women in Workplace Study,”
http://www.more.com/flexible-job-survey
• One of every five employees cares for elderly parents, a
number that could increase to almost half of the workforce
over the next several years.
http://whenworkworks.org/research/downloads/FlexAtAGlance.pdf
• 40% of professional men work more than 50 hours per week.
Of these, 80% would like to work fewer hours.
Center for American Progress. August, 2012
http://www.americanprogress.org/wp-content/uploads/issues/2012/08/pdf/flexibility_factsheet.pdf
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40. What Motivates Us at Work?
“Endearing companies are Enduring”
“Meaning is
the new
money.”
Only intrinsic
motivation drives
performance for
creative work, not
traditional reward
systems or money.
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41. Rethinking the Engagement Puzzle
How do we create Passion in the workforce?
Mission and Purpose
“Who we are and why we do what we do”
Inclusion &
Diversity
Recognition
Rewards
Work-Life
Balance
Career
Opportunity
“I feel included”
“I feel recognized”
“My life works.”
“I can progress”
Passion
“I love my work (company)”
Performance
Our job is to create
meaningful work in a
meaningful work
environment.
“I deliver extra effort.”
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42. Inclusion & Diversity as Strategy
Diversity
Makes
Business
Sense
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43. Importance of Recognition
Maslow’s Hierarchy of Leads
Self Actualization
Career ,
Development
Opportunities
(challenge, opportunity, learning, creativity)
Esteem
#1 reason people
leave is because of
lack of recognition
at work
(importance, recognition,
respect)
Modern
Recognition
Love/Belonging
(social, love, family, team)
Safety
(economic and physical security)
Compensation
& Benefits
Survival
(food, water, sleep)
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44. Recognition Drives Retention
Voluntary Turnover Rate
12%
10.5%
10%
8%
8.7%
31%
Reduction in
voluntary
turnover!
7.2%
Or 46%
higher
turnover
when moving
from
excellent to
poor.
6%
4%
2%
0%
Excellent (5)
Fair (3-4)
Poor (1-2)
Effectiveness of Recognition Program at
Improving Employee Engagement
Source: Bersin & Associates Recognition Survey for HR Practitioners, January 2012, n = 573.
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45. The Retention Engagement Model
Why engagement really matters
© Bersin by Deloitte
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46. 5
Continuous Learning
Unleashed
“Learning all the time, focused, effective, continuous,
and talent-driven”
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47. The Continuous Learning Model
Continuous Learning
Expert
Career
Pathways
Coaching
Mentoring
E-learning
courses
Communities
of Practice
Social, Mobile
Sharing
Career
Development
Training
Event
Job
Aids
Novice
Traditional Training
Time
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48. A Modern Learning Architecture
EMC
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49. The Cheesecake Factory
Video Sharing and Games Build Culture and Engagement
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50. Need for Learning Culture
Great Corporate
University
Strong CLO and
Alignment
Excellent
L&D Skills
Excellent Training
and E-Learning
Use of rich media
and social tools
Innovative
program design
Have we created an organization
which truly has a culture to learn?
Does leadership
reinforce the need
to learn?
Is expertise
rewarded and
valued?
Are decisionmaking processes
clear?
Do people share
information
openly?
Do people feel
empowered to
point out errors?
Do we take
the time to
reflect?
Do people
move around
and take risks?
Do we listen
to customers
openly?
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51. Organizations with a Strong Learning Culture
Significantly Outperform their peers…
Innovation
Productivity
Time to
Market
Quality
Skills for the
Future
Profitability
46%
37%
34%
26%
58%
17%
more likely to
be first to
market
greater
employee
productivity
better
response to
customer
needs
greater ability
to deliver
“quality
products”
more
prepared to
meet future
demand
more likely to
be market
share leader
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52. 6
Global Leadership
Unleashed
“Developing and delivering leadership programs
that business sponsors care about.”
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53. 21st Century Leadership Models
New Model for Leaders
 Creativity, not planning
 Quick decision-making
 Getting closer to customers
 Globalization, diversity
 Continuous change
 Manage unexpectedness
 Agility, not control
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54. 54

55. 55

56. Developing 21st Century Global Leaders
 Strong leadership traits vary
widely from country to country
 Gen Y leaders must be
developed through 12-18 month
assignments
 Local leadership not trumps
“expat leadership” in most high
performing companies
 Embrace the new concepts of a
leader: inspiration and
teamwork
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57. Talent Analytics
7
“The Datafication of HR”
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58. This Science is Coming to HR
 Definition of “Science”:
“Systematic knowledge of the world
gained through observation
and experimentation.”
 What is Not Science
Making talent decisions on the basis of
“gut feel,” “beliefs,” or “philosophies.”
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59. 21st Century Talent Management
This are Different Now
1. Rethink Talent Acquisition
2. Redo Performance Management
3. Improve Engagement and Retention
4. Deliver Continuous Learning
5. Create 21st Century Leadership
6. Invest in Talent Analytics and
BigData
http://marketing.bersin.com/2013-predictions.html
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