Entering the Age of Talentism 45 th Annual Forum Stephen Cryne President & CEO CERC.

Entering the Age of Talentism45th Annual Forum

Stephen Cryne President & CEO CERC

Agenda

Drivers of Talent Mobility

From Tactical to Strategic

Good Practices and Organizational Strategies

Q & A

About CERC

• Established in 1982 Canada’s leading authority on talent mobility– Research– Advocacy– Education– Knowledge Transfer

• Membership includes many of Canada’s top FP100 companies

Drivers of Change

• Demographic changes• Globalization of trade and human

capital mobility • Transformation to knowledge based

economies

4

Drivers of Change

“The success of any national or business model for competitiveness in the future will be placed less

on capital and much more on talent …the world is

moving from capitalism to talentism”

Klaus Schwab, Founder and Executive Chairman World Economic Forum, 2012

Canada’s Population Growth

HRPA Talent Pipeline Conference April 19, 2012

Source: Urban Futures Institute

Population Aging

Canada’s aging population

Source: Statistics Canada

Population Aging

Courtesy Economist Magazine

The Shrinking Workforce

*2025 total population Source: UN population prospects, 2008

Labour Force Growth

• Between 1996 2008, Canada created 3 ‐million net new jobs – a 23% increase.

• Between 1991 – 2001, immigration accounted for 70 per cent of Canada’s workforce growth

• Immigration will account for all workforce growth over the next decade

• 2.1 workers supporting 1 retiree

Employment Trends

Canadian employers have created over 700,000 net new jobs since July 2009

Source Statistics Canada

Employment Trends

Canada’s Unemployment rate = 7.2 %


Source: Statistics Canada

Employment Trends


Talent Index


Heidrick Struggles Global Talent Index Report

US Employment Trends


13.1%

8.4%

7.2%

4.2%

2012

Employment Forecasts

• 25 million new workers needed in the US by 2030

• 1 million job openings in B.C. by 2019 - 75% will require secondary education

• 800,000 new Oil Sands jobs over next 20 years / $250 billion investment

• 25 million – new workers needed in EU by 2030• $1.8 trillion investment in Australia’s mining

industry – 750,000 new jobs




Human Resources and Skills Development Canada




Talent Mobility is Key

Recommendations for Government

• Develop a talent mobility blueprint• Lead cross-border collaboration with other

governments• Share access to labour market data / forecasts• Develop a framework for a collaborative

approach to talent mobility

Recommendations for Organizations

• The Talent Mobility function is often viewed as being transactional role

• Leading companies see Talent Mobility as a strategic opportunity to create a competitive advantage & grow new markets

• Talent Mobility is a strategic function that supports business objectives


Aligning Mobility and Business Strategies


From Tactical to Strategic

Align the talent mobility programs with the organization’s talent and strategic business objectives

Talent Acquisition and RetentionTalent Development (Individual & Strategic)

Leadership Development

Compensation

Performance (Business and Individual)

Return on Investment

Finance/Budgeting

Tax Planning/ Compliance/ Reporting (Corporate and Individual)

Security, Travel Systems (HRIS)



Good Practices in Talent Mobility

Global Mobility Essentials

Career Development

Strategic Opportunity

Volunteer Skill Need(management or technical)

DEV

ELO

PMEN

T VA

LUE

BUSINESS VALUE

The Assignment Lifecycle


Good Practices CERC 2011 Survey • 90% track assignment costs• 90% have formal relocation

program• 60% pre-qualify candidates• 51% have specific International

global mobility program

CERC Employee Relocation Policy Survey, 2011

Repatriation Practices

• 82% track success of assignment

• 1/3 of companies have a formal repatriation program

• 50% of those include career planning

28

Tactical to Strategic

2011 CERC Employee Relocation Policy Survey •88% of companies have a formal mobility policy•The (HR) management objectives that mobility policy supports

– talent acquisition – talent development

•Greatest management challenge for international assignments - tax &immigration compliance


Marriott International: centralized global mobility operations•higher retention of its high performing GMs, •improved organizational efficienciesSource WEF Report January 2012



COM DEV:Harmonized approach to mobility–•better mobilization of staff•Benefits to the Organization

– Attracts first-choice candidates

– Fosters talent retention– Enhances ROI

Source WEF Report January 2012


Tactical to StrategicITT CorporationMobility Principles•Strategic Workforce Planning•Compliance •People•Innovative Administration and Best PracticesCERC annual conference 2010


Managing Mobility


• Purpose/objectives of assignment

• Type of assignment • Employee level • Budget and cost implications• Repatriation considerations

Assignment Policy Considerations


Key Policy Elements

• Pre-assignment assessment

• Immigration

• Compensation

• Pension and benefits

• Pre-visit, destination services, cultural training

• Allowances and incentives

• Housing

• Tax

• Moving

• Social Insurance/Security

• Payroll

• Home leave

• Language training

• Schooling

• RepatriationHRPA Talent Pipeline Conference April 19,

2012

International Assignment Cost

Year 1 Year 2 Year 3

Departure expenses $ 56,000 $ 0 $ 0

Annual ongoing expenses $325,000 $325,000 $ 325,000

Repatriation expenses $ 0 $ 0 $ 35,000

Total Expenses $ 381,000 $ 239,000 $ 360,000

Total assignment* $980,000

*Toronto – Beijing Excludes provisions for tax; includes salary $150,000 pa


But Will They Go?

CERC Global Mobility Study

Total Canada

Very Likely27% 20%

Somewhat Likely 37% 37%

Not Very Likely23% 26%

Not at all Likely13% 16%

CERC Global Trends in Talent Mobility Feb 2012 38

Imagine if you had a full-time job opportunity in the near future that would mean relocating to another city for a minimum of two years with at least a 10% pay raise and all of your moving expenses covered. How likely would you be to take the job?

CERC Global Mobility Study

Total Canada

Very Likely19% 10%

Somewhat Likely

30% 29%

Not Very Likely

25% 25%

Not at all Likely

26% 36%

Why Employees Decline International Assignments

• Spouse’s career• Loss of dual income• Elder care• Safety and security concerns• Children’s education/special needs• Uncertainty of role/position upon return


Mobility ModelTalent Strategy & Business Objectives•Workforce Planning + Talent Management =Business Objectives•Assignment VS Local Hire •Policy design for employee levels & demographics•Repatriation and succession planning •Internal administration & ROI

Management•Centralized control – C Suite sponsor/ Authorizations, •Compliance and risk mitigation•Provider and service level management

Service Delivery •An outsourced or “in-house mobility team” global providers?•Regional delivery/administration•Standards for service level performance


Corporate Responsibilities / Obligations

Senior management commitment to talent management Clearly define roles and responsibilities for

mobility management Systems to ensure compliance with internal

controls & statutory regulations Service provider agreements for global supply

chain Communication


Communication

• The value of mobility to the enterprise• The value of mobility to the employee and

accompanying family• Ownership and authorizations• The risks consequences of non compliance


HR Strategy

• Use performance measures to track progress and identify leaders / expertise

• Ensure retention through effective repatriation programs

• Benchmark assignment policy


Conclusion

• Make workforce planning Job# 1 • Design and promote talent mobility strategies

internal to the organization• Manage talent like other forms of capital• Establish a direct link between mobility and

talent development • Embrace cultural diversity as a business

strength


Conclusion

• Align business and mobility objectives • Match business goals and assignee selection• Set out the purpose and specific objectives to

be met • Adjust objectives and purpose to meet

changing business realities


Questions

Thank you

[email protected]

mailto:[email protected]

http://www.cerc.ca/

Entering the Age of Talentism 45 th Annual Forum Stephen Cryne President & CEO CERC.

Documents

talent mobility slide

talent mobility function

talent mobility programs

organizations talent

retiree slide

key slide

new markets talent mobility

source statistics canada