SHRM 09 Cappelli Pres

8/17/2019 SHRM 09 Cappelli Pres

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Talent on Demand: Managing Talent in anUncertain Age

Peter Cappelli

Professor and Director Center for Human Resources

The Wharton School


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What is TalentManagement? Why

should we care about it?The issue is money .The supply chain analogy -


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At the Individual Level:The Financial Challenge In the traditional model, supply meant internal

deelopment !p-front inestment in candidates, recouped oer

time through improed performance Can ma"e money this #ay Can also lose money if lose the inestment

$utside hiring, pay as you go Can%t earn a return or &e a source of adantage


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C o m p e n

s a t i o n a n d

T r a i n i n g

/ D e v e l o p

m e n t

Value

Time

$


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The rise of the great cororatecareer

Diferent practices made sense atdiferent times

$pen mar"ets in the early years The Rise of the Planning 'pproach

()*+s-%+s aerage ortune *++ eec had &een #ith their

company /0 years The typical career path1

(/-(2mo training (2-/( month 3o& rotation

4Hi potential5 program 6 accelerated promotions 7*8 eecs had 9 *yrs on corporate staff 0+8 eecs &egan in mar"eting:sales Detailed #or"force and succession plans 6 (* years out

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Which is the !indergarten "eort CardWhich is the #erformance Araisal?System A

Ran" candidates on a scale of1;ery Satisfactory 6 Satisfactory 6 !nsatisfactory• Dependa&ility• Sta&ility• Imagination• $riginality• Self-epression

• Health and ;itality• '&ility to plan and control• CooperationSystem BRan" candidates on a scale of1Satisfactory 6 Improing 6


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What Is $i%erent &ow?The lietime model breaking upThe notion of a secure, long-term career is harder to imagine.President:C=$ tenure #as>10 yrs in ()*+s?5 years in ()+s? Do#n #ith employer: !p #ith occupation

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From Chaos to #lanning to"esonding Planning is out In the management ran"s - /++B SHR firm

surey 6 +8 hae no succession planning

of any "ind More than 70% had it in late 1970s

In the #or"force as a #hole - /++0 IP'-HR

surey 6 B8 hae no #or"force planning ofany "ind 96% of large companies had a dedicated planning

department in 1950s!


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What changedon the emloyee side?

Ho did they respond to end of lifetime

employment


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I would change 'obs for(?

!ould leave"or#

5% o" &or'ers 50% o" &or'ers (5% o" &or'ers

)nits Dollars )nits Dollars )nits Dollars

Stoc" Grantace ;alue

*+shares

*++(++

shares(,+++

(,+++shares

(+,+++

;acation Days 7 days */(+

days (,0++(*

days /,7)

Jonus$pportunity

(,+++ (,+++ *,+++ *,+++ (+" (+,+++

Salary

Increase

(+8 B,7*+ /+8 7,*++ B*8 (*,+++

PotentialSalary in ieKears

,+++ ,+++ (*" (*,+++ B*" B*,+++

$ne-time

RetirementContri&ution *,+++ *,+++ /+ /+,+++ *+" *+,+++


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$oes the &e)t*eneration "eally+ave $i%erent

Attitudes Toward

,mloyers?

"hat do they e#pect from $os

Ho should e manage them


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Characteristics in First,mloyers-#lease rate the imortance of each of the following inchoosing a .rst emloyer

Challenging assignments Company alues &alance &et#een personal life and career Competitie &enefits Competitie salary inancial strength Good reference for my future career High-achieer program High ethical standards Immediate responsi&ility Li"ea&le:inspiring colleagues $ngoing educational opportunities $pportunity to influence my o#n #or" schedule

$pportunity to specialiEe $pportunities for continuous learning Secure employment ;ariety of tas"s or assignments rom Price#aterhouse surey of (*++ J' students from around the #orld


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Characteristics in First ,mloyers#lease rate the imortance of each of the following in choosing a .rstemloyerGood reference for my future career --------------------------------------------------- 0/8

Company alues &alance &et#een personal life and career ------------------0(8Li"ea&le:inspiring colleagues ----------------------------------------------------- B78Competitie salary -------------------------------------------------------------B08Challenging assignments ------------------------------------------------- -BB8Competitie &enefits ----------------------------------------------------- -B/8$pportunities for continuous learning ----------------------------B(8

$pportunity to specialiEe --------------------------------------------B+8Secure employment ---------------------------------------------------B+8inancial strength ----------------------------------------------------/)8High ethical standards ----------------------------------------------/)8$ngoing educational opportunities ------------------------/78High-achieer program ---------------------------------------/8;ariety of tas"s or assignments ---------------------------/8Immediate responsi&ility ----------------------------------/08$pportunity to influence my o#n #or" schedule- /08


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/&I0,"1/M

*"A$/AT, 1/"0,23445

I$,AL6 ,mloyer "an7ing 8 M9A verall

• *re"erred industries+ anagement consulting @//8A, inancial serices @//8A , Consumer goods @(8A• Attra,tive C-ara,teristi,s> Industry leadership @B28A , 'ttractie location@sA @/8A, Innoation @/*8A

.mployer /an'ing

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*re"erred

y $00(

/an'ing

$001.mployer

/an'ing

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*re"erred

y $00(

/an'ing

$001

Google ( /+.*28 / JooE 'llen Hamilton (, ,./28 (*

cinsey M Company / (,.B(8 ( Procter M Gam&le (7 ,.()8 ((

Goldman Sachs B (B.)*8 B Deloitte (2 ,.()8 (7

Jain M Company 0 (+.))8 0 errill Lynch () *.*28 /+

The Joston Consulting

Group * (+.2)8 * Walt Disney /+ *./B8 (0

'pple Computer , (+.728 7 NPorgan Inestment

Jan" /( *.((8 /(

icrosoft 7 7.2/8 (, KahooO // 0.2+8 /,General =lectric 2 7.7(8 2 IJ /B 0.7(8 /B


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What do our students say?“In your last job!

8 #ho could identify the net promotion 8 #ho thought they had good chance of

getting that promotion 8 #ho thought they could &ecome a leader if

stayed #ith their company

8 of their eecs #ho came from #ithin Ho# long they #ould #ait for opportunity


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The &ew Challenge for TalentManagement(; Generating the supply of talent to match

estimated demand When demand is ery hard to predict

When the supply of talent #on%t stay put The 4mismatch pro&lem5 that "illed talent

mgmt in the ()7+s

The talent glut in the ()2+s 1a&sor&ed &y the ())+s epansion


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The Four #rinciles ofManaging Talent:

Managing the "osts oUncertainty

(. 'oid ismatch Costs 6 Jalance 4a"eand Juy5

/. Reduce Ris" #ith Shorter orecasts and

Portfolio 'pproaches B. Design Deelopment to =nsure Pay&ac" 0. Jalance =mployee Interests in Career

oes


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Ma7e or 9uy $ecision: 4a"ing5 Talent is Cheaper, Jetter &F Kou%re Certain 4Juying5 Talent:Nust-in-Time Hiring, Costs ore &ut

Reduces Ris" of !ncertainty

Ho# accurate is your forecast of demandQ If not ery, do more &uying

Ho# long #ill the 4talent5 &e neededQ If not long, do more &uying

Do you hae 3o& ladders or 4scale5Q If not, easier to hire Hiring also changes organiEational culture


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/se a Mi) of >Ma7e and 9uy to"educe Mismatch Costs rom forecasts to simulations

Can your IT system handle thisQ

!se supply chain analyses to minimiEe

4mismatch costs5 're 4Deep &enches5 inentoryQ

$ershooting is often more epensie 6

!se outside hiring to fill in gaps $nly hiring from outside also a mista"e

=pensie, disrupts uniue s"ills and culture


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What does this reuire of ITQ Coordination of information

Improe responsieness 6

Hire more freuently Delay specific deelopment

=.g., no 4* yr manufacturing program5 Instead, 4B yr generalmgmt deelopment5 M 4/ yr special manufacturing program5


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C o m p e n

s a t i o n a n d

T r a i n i n g

/ D e v e l o p

m e n t

Value

Time

$

Ma7ing $eveloment #ay%(


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What was your bestdevelomentale)erience?


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The "eal !ey to Creating 0alue 8 Spot talent early and gie opportunity &efore

they could get it else#here Performance . potential in identifying

candidates 6 #hat%s the signalQ Self-selection as an alternatie approach Ho# to spot talent and gie opportunityQ

Can try to assess:predict #ho #ill succeedQ Gie it a try6PMG motto 4ail uic"ly and cheaply5 G= model> eep small PML for screening


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The s7ill of managing talentmeans( atching deelopment needs to aaila&le

opportunities oement across tas"s, not 3o&s

The technology &ehind &etter matches This reuires IT help> =DS, IJ

Doesn%t reuire changing 3o&s

Pro3ects, tas"s, coaching Jeing opportunistic, negotiating for opportunity


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Jest candidates can go else#here

Internal mo&ility programs - )8 large companies

hae them 'nly ( re)uire current manager*s appro+al cinsey s. icrosoft models

Ho# much direction and adice to gieQ

Raise epectations s. losing control idelity approach IJ%s 4hot s"ills5 inde


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Career #lanning: *iving,mloyees a 1ay The 4Chess aster5 model

Do#nside> Jest candidates can go else#here

Internal mo&ility programs - )8 large companies

hae them 'nly ( re)uire current manager*s appro+al cinsey s. icrosoft models

Ho# much direction and adice to gieQ Raise epectations s. losing control idelity approach


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The Long8"un Trend

Challenge of uncertainty unli"ely to go a#ay $ld 4planning model5 reuires certainty

Pressure for cost control in talent mgmt li"ely

to gro# 4S"ill shortage5 drien &y reliance on outside

hiring and lac" of deelopment

We need a different approach


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SHRM 09 Cappelli Pres

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