1. LEADING EDGE
GLOBAL TALENT MANAGEMENT
TRENDS AND PRACTICES
August 29, 2013
© Dr John Sullivan
1www.drjohnsullivan.com
Note: Even if you can’t match them, it’s your obligation
as a professional to know where the leading edge is!

2. Topics
2
I will highlight leading-edge trends and practices
in 6 TM areas
1. Making a business case
2. Recruiting
3. Development
4. Retention
5. Increasing productivity and innovation
6. Metrics
Please understand that I will move fast today…
because I’m from the Silicon Valley, where everything is fast

3. 3
Let’s start… with an important perspective
to consider
Before you conclude that the upcoming (what may
seem to you to be outrageous talent management
practices)… are barely relevant to you
 Remember that you are competing for top talent in a
world with remote work options…
 And that means that there are no… geographical
boundary excuses, “but South Africa is different”
excuses… or “we are a university” excuses
Because like it or not, you are literally competing for
top talent against… every organization in the world!

4. 4
Next… let’s realize that executives
expect significant change!
PwC 16th annual global CEO survey
So you can’t stay competitive… if you maintain your current strategy

5. 5
Defining the leading edge for
building a business case to
convince leaders to focus on
TM

6. 6
Highlighting the top trends in… business case
1.Converting talent management metrics to show
their monetary impact on organizational results
(Enrollment, revenue, satisfaction or University ranking)
2.Calculating the organizational impact of each
individual TM function and focusing on those
with the highest impact
3.To prove TM’s impact… most are calculating
their revenue per employee (i.e. workforce productivity)
And now a few business case illustrations >

7. Do some firms have significantly higher
workforce productivity?
7
This list only contains top firms
IBM
HP
Microsoft
Google
Facebook
Apple
Among great firms… what is the average percentage of
workforce productivity difference between them?

8. Comparing workforce productivity results
Comparing employee productivity (rev. per employee)
Average $208,000
IBM $221,100 (22% above the average)
HP $348,300 (66% above the average)
Microsoft $808,600 (4 times the average)
Google $1,014,600 (5 times the average)
Facebook $1,325,000 (6 times the average)
Apple $2,327,000 (11 times the average)
Key learning - It takes 10 X more employees at
IBM… to produce the same revenue as Apple
(Calculated using 7/2013 data from http:// www.wolframalpha.com/input/?i=apple+revenue+per+employee )
8

9. Does bold TM and innovation increase profit?
Dollars of profit per employee (Profit per labor $ spent is a better measure)
HP -38,125
IBM $37,523
Facebook $120,600
Microsoft $213,100
Google $199,346
Apple $518,500
Key learning - it takes nearly 15X more employees
at IBM…to produce the same profit as Apple
(Calculated using 2013data from www.wolframalpha.com ) 9

10. 10
Where should you focus your TM resources?
It’s clear that a great over-all TM function has a
significant performance and economic impact…
But within talent management… what particular
TM actions have the highest impact?
What are the 2 TM functions with the highest impact?

11. A business case requires that you identify which
activities have the most impact on rev. & profit (BCG)
11Source: BCG/WFPMA - From Capability to Profitability: Realizing the Value of People Management, 2012
Which TM functions have the highest impact?

12. Mid and lower impact HR functions
12

13. 13
A business case for focusing on top performers
Because of the extra cost and effort required…
Executives will not fund a focus on top
performers and innovators…
unless you have… calculated their performance
differential %... over hiring and retaining “average
candidates”
What is the multiple of performance improvement…
when you replace an average performer with a
top performer… in the same job?

14. What is the performance differential at Apple?
14
"The secret of my success is
that we have gone to
exceptional lengths to hire
the best people in the
world… boy, does it pay
off."
Steve Jobs
“The difference between
the average programmer
and a great one”…
it's at least 25

15. What is the performance differential at Google?
One top-notch engineer is
worth “300 times or
more… than the average”
…
15
Alan Eustace
Senior Vice President,
Engineering and
Research

16. 16
Are top performers worth the effort ?
The top 5% of your employees produce… what
percent of your total output?*
26%
Key learning – prioritize and focus on top
performers in key jobs
* http://onlinelibrary.wiley.com/doi/10.1111/j.1744-6570.2011.01239.x/full

17. You can’t attract or retain top performers unless
you know their key “excitement factors”
An average worker wants these
things… (Homer Simpson)
1. Doing the best work of your life
2. Proud of their impact
3. Great managers
4. Opp. to innovate/ take risks
5. Learn rapidly / be challenged
6. Choice of projects
7. Make decisions
8. Implement ideas
9. Input into schedule/ location
10.Work with top co-workers
Top performers want these
“excitement factors”(Lionel Messi)
17
1. Guaranteed pay
2. Exceptional benefits
3. Security
4. Time off with pay
5. No surprises/ predictable
6. Seniority matters
7. Equal treatment
8. Minimize risk and stress
9. Work/ Life balance

18. 18
Defining the leading edge of
recruiting
Note: recruiting is the function that
has undergone the most radical change

19. 19
Highlighting the top trends… in recruiting
1. The war for talent is returning
2. Mega-aggressiveness is common
3. Recruiting is focused on key jobs
4. Using the mobile platform for communicating
5. Measuring quality of hire
6. Social media feeding into your employee
referral program
Let’s quickly look at some employee referral trends >

20. 20
Highlighting trends in employee referral programs
Proven to produce the highest quality hires
50% of hires is the new program target
Assigning referrals is effective (8 referrals per job)
Referral cards are powerful
Allowing family and friends to make referrals
20
And now a few broad recruiting trend illustrations >

21. 21
Would this be “bold and aggressive” recruiting?
Tokbox parked a taco truck across from Yahoo HQ

22. Mobile recruiting… the low tech way
Zscaler drove this van for a week around their
competitor’s neighborhood… with this sign to
entice Blue Coat employees
22

23. 23
Contests are on the leading edge
23
Google Code Jam contest
 This contest drew 36,000 participants
Each solved 5 algorithmic problems including…
the most efficient way to whack zombies

24. 24
My Marriott Hotel video game on Facebook

25. Can you match what startups offer?
Hipster… offered new hires $10,000, a lifetime
supply of beer, "authentic" skinny jeans, striped
bowties, and a pair of Buddy Holly glasses
25

26. 26
Most organizations target college seniors
Google begins recruiting in their freshmen year
Also Facebook and Twitter

27. 27
Defining the leading edge of
retention

28. 28
Highlighting the top trends… in retention
1. Retention is about to become the main issue (SHRM)
2. Prioritize jobs and people
3. You can’t keep the best forever, so consider
“whole life” hiring
4. Personalized retention plans for key employees
5. ID bad managers – the primary cause of turnover,
innovation and productivity problems
And now a few illustrations >

29. The retention actions of firms don’t match
the reasons employees leave
Why employees leave
1.Better comp/benefits $
2.Coaching programs
3.Mentoring programs
4.Tuition reimbursement $
5.Stock options $
6.Profit-sharing $
7.Flexible hrs./schedule
8.Retention bonuses $
Only 2 of 6 causes are met
Most common offerings
29
1.Career advancement
2.Pay/benefits $
3.Lack of job fit
4.Management/environ
5.Flexible scheduling
6.Job security
1 of 6 is $
Sources: Gallup 2006 Sources: OI Partners 2012

30. Work flexibility improves retention
Mass career customization (Deloitte)
Every employee can dial up/ down their job… as
career aspirations & personal needs change.
They can adjust:
• Work hours
• Travel demands
• Job responsibilities
Results:
Do most employees choose to dial down or dial up
their career? And what is the ratio?
Voluntary turnover rates of top performers
choosing this option were 2x lower 30
2/3 dial up

31. Boomerang re-hires should be a goal
“You’re always welcome here” e-card + alumni group
16% of hires
31

32. 32
Defining the leading edge of
development

33. 33
Highlighting the top trends…
in development and learning
1. Increase organizational learning speed to match
a VUCA world (Volatility, Uncertainty, Complexity
and Ambiguity)
2. All level learning (not just top down)
3. Informal learning dominates
4. Proactive internal movement and job rotations
5. Using social networks and wiki’s to share best
practices and to learn (Internal and external)
6. Simulations to assess and learn
And now a few illustrations >

34. 34
Google led the way by determining that…
learning ability is the #1 competency
“… Learning ability is the key determiner in
deciding among candidates” (along with their technical capabilities)
Laszlo Bock VP of HR

35. 35
“Next practice” leadership development expectations
Changing leader development expectations:
1. Leaders will need new “adaptive” competencies
for the VUCA world
2. Because leaders will be needed at lower-levels…
many more leaders will be needed
3. Fewer will want to be permanent leaders
4. Because needs will change so quickly, “super-
accelerated” development will be the standard
5. “Entire team” development will be necessary
6. There will be less on the job time to assess
potential because the less experienced will need
to be made into leaders

36. 36
“Next practice” leadership development expectations
Changing leader development expectations:
8. Potential leaders must own their “own” and
self-manage their development
9. Virtual development will be the standard
10.Development must use “real problems”
11.Development while on the job
12.Leadership development will have to be more
data-driven
An example >

37. 37
Google’s “project oxygen" revealed
the 8 most effective management practices
1. Be a good coach – hold regular one-on-one’s &
provide personalized constructive feedback
2. Empower your team and don’t micromanage
3. Show interest in their success & personal well-being
4. Don’t be a sissy; Be productive / results-oriented
5. Be a good communicator & listen to your team
6. Help your employees with career development
7. Have a clear vision and strategy for the team
8. Have key technical skills to advise the team

38. 38
Parallel benchmarking… learn from everyone
Keep an open mind (SW air)
Learn from other functions (Supply chain &
social media)
Learn from parallel industries (Speed & quality)

39. 39
Facilitated internal movement is a trend
Career mobility team – use it to speed up internal
movement and to proactively and accurately place

40. 40
Reverse mentoring is a trend
Reverse mentoring is matching executives with
“in touch” or diverse employees
 It keeps managers up to speed with trends
 It spreads inclusion
 It can increase the retention of younger workers
 Used by Cisco, HP, Ogilvy & Mather and GE

41. 41
You must assume everything will become obsolete
Note that employee skills in a VUCA world will
become obsolete, so you need a “use by date”

42. 42
Google’s continuous learning approach
“Testing on the Toto toilet”
www.flickr.com/photos/gubatron/246489031 42

43. 43
Defining the leading edge of
improving employee
productivity, collaboration,
innovation and speed

44. 44
Highlighting the top trends… in productivity
1. In a fast-moving competitive world where you
must be first… innovation becomes a more
important contributor to organizational
success… than workforce productivity
2. More organizations are learning that…
collaboration from face-to-face interactions
dramatically increases innovation
3. Speed, agility and adaptiveness are essential in
VUCA world
And now a few illustrations >

45. 45
Begin by realizing that productivity
results from all 20 of these key factors
1. A great manager
2. Effective plans & strategies
3. Clear and prioritized goals
/activities to focus the work
4. Rapid learning / sharing
5. Right rewards & engagement
6. The right employee skills
7. 2 way communications
8. Performance metrics
9. Quality team members
from great hiring & retention
10.Collaboration for innovation
11.“Right job” placement
12.Processes are integrated
13.Information for decisions
14.The right tools/technology
15.Qualityinputs/materials
16.Enough budget/ resources
17.The work environment is
designed for productivity
18.Time devoted to the task
19.Outside of work factors
20.ID & removing barriers to
productivity/innovation

46. 46
Identifying barriers is a powerful tool
Identify barriers to productivity
 Utilizing employee surveys and interviews to
identify barriers… can lead to a dramatic
increase in productivity & innovation (200% in two months)

47. 47
Flexibility dramatically impacts productivity
Results Only Work Environment
•Pick your hours
•Pick where you work
•No in-person meetings required
The business impacts: Retention
ROWE individuals have ___ lower turnover
($13 million per year at $102k per employee)
When workers switch to ROWE, their
productivity jumps by 35%
45%

48. 48
A personalized “how to manage you” plan
“The best way to manage me” list
Ask a top employee “if you were made your own
boss… How would you change your current job &
how you are managed to make the job perfect?”
 How do you prefer to communicate?
 How often would you like to meet?
 How do you like to be recognized?
 What rewards have the highest impact on you?
 What frustrates you?
 Describe the key elements of your “dream job”?

49. 49
A motivation survey tells you what stimulates them
(besides $)
Ask employees in a survey to rank their motivators
 The types of economic rewards that motivate
 The types of non-monetary rewards
 The types of recognition that will have the most
impact
 This enables managers to customize recognition,
& promote employee satisfaction and retention

50. 50
Weak employees draw managers away from
more productive tasks
“Slacker” employees cause… managers to spend
nearly one day a week (17% of their working hours)
dealing with them
Robert Half International 2012
An example – A leading-edge way to deal with weak
employees >

51. 51
A unique way to fix your hiring mistakes
Even the best recruiting/training fails
occasionally… so Zappos calculated the cost of a
bad hire over several years
And as a result, to get rid of potential slackers…
Zappos offers $4,000 to anyone who agrees to quit
during their initial training… 2 - 3 % take the cash
`

52. 52
Increasing collaboration, innovation and speed
are critical in a fast-changing world

53. What is required to increase innovation?
Google has a formula for increasing innovation
53
Innovation = Discovery + Collaboration +Fun!
Source: K M World Magazine Webinar 2008
Two quick examples of Google fun >

54. Google wants going to a meeting to be fun
Slides in the office (they see no compliance issues)
54Fireman’s pole
54

55. 55
A Google conference bike… because Google wants the
meeting itself to be fun

56. Is your employee commute
collaborative and productive?
 Free shuttle up to 60 miles each way
 Wi-Fi equipped so they can work
 It increases collaboration with non-team members
 Google, Facebook, Apple, Yahoo & Genentech 56

57. 57
Facebook’s CEO reveals the importance of speed
57
 “In a world that’s changing so quickly… you’re
guaranteed to fail if you don’t take any risks”.
 “The riskiest thing is to take no risks”
 “We’re less afraid of making mistakes… than
we are of losing opportunities”
 “Move fast and break things” – “The idea is that
if you never break anything, you’re probably
not moving fast enough”

58. 58
Defining the leading edge
of TM metrics

59. 59
A history of weak metrics
Only 12% of CEO’s are confident on the quality
of Human Capital metrics
59
AICPA survey 2012

60. 60
Highlighting the top trends… metrics
1. Shifting to “big data” driven decision-making
2. Algorithms for precision (# of interviews)
3. “Real time” metrics improve decision-making
4. Predictive metrics that alert (who will quit)
And now a few illustrations >

61. 61
Google is the world’s only data driven TM function
“All people decisions are based on data & analytics”
"We want to bring the same level of rigor to
people-decisions that we do to engineering
decisions"
“The best thing about using data to influence
managers… is that it’s hard for them to contest
it. For most people, just knowing that
information… causes them to change their
conduct”

62. 62
Google people management is data driven
Google has an R&D team in Talent Management
People & Innovation Lab (PiLab)
It runs dozens of experiments on employees in an
effort to answer questions about the best way to
manage a large firm

63. 63
And finally…
Game over! – Can you compete with this?

64. www.drjohnsullivan.com 64
Did I make you think?