JUNE 2013 The Online Executive News for Corporate Leaders In Tune with the Local Connected to the World 73 offices in 46 countries T he business world is more dynamic today than ever before with an accelerating pace of new technologies, increasing globalization of markets and increasingly commonplace mergers, acquisitions and divestitures. In this tumultuous environment, organizations must continually renew their capability to achieve competitive advantage. However, it is challenging to find the talent needed to compete in this dynamic business environment. The availability of educated, working-age talent is shrinking in many of the world’s labor markets (Zolli, 2007). Multinational companies are moving work to developing lower-cost countries, only to find the talent wars and wages subsequently escalating there. Skilled leaders with the capabilities to enter new markets, create new business models and innovate new technologies, are highly sought after. Consequently the demand for talent is outstripping the supply. As a result, top performers in key talent pools typically have multiple employment opportunities at any point in time. This set of complex, changing business and talent realities creates the imperative for companies to focus on talent in a strategic, systemic and customized manner. Getting someone interested in your organization is the first step in attracting and retaining top talent. In recent years, the phrase “the war for talent” has been used most often in conversations about the challenges of retaining talent.You have to overcome the toughest challenge, the one of acquiring talent. With retention, you have “familiarity” on your side. In acquisitions, the unknown can be frightening. There are six steps to creating and communicating a compelling argument that top talent cannot ignore: (Silzer, Dowell 2010). Enjoy your reading, Nancy Mathioudaki Partner & Global FMCG sector leader Detailing the employment brand into a talent brand and a leadership brand that clearly articulate the caliber of talent and leaderships working for your organization. 4 Capturing the employment value proposition in a memorable employment brand that states simply what makes your company a great choice. 3 Creating a compelling employment value proposition that clearly articulates what is different about your organization versus other organizations. 2 Identifying the talent acquisition strategy that best supports your business strategy and will result in meeting your talent needs. 1 Measuring your success. Determining the most productive channels to the talent you want to see. Many thanks to all the contributors of this issue for their insights and to all survey respondents for their time… Contents p1 Editorial p2,3 First Talent Management Survey p4 Building a great culture and creating the conditions for people to succeed are at the heart of our value “Caring for our People” p5 Hiring for fit and developing for skills p6, 7 Is talent management within your company seen as a key organizational objective which drives and enables high performance? p8, 9 Talent identification: a Corporate Culture or a Management System p10 Which are the Talent Management success factors? p11 Is strategy-driven Talent Management a leadership imperative? p11 Is talent Natural or Developed? p12 Which are the Talent Management success factors? p13 Is Talent difficult to find nowadays? p13 Is talent management within your company seen as a key organizational objective which drives and enables high performance? p14 Matching Executive Talent to Business Strategy p15 The near future will bring more qualified candidates p16 Quality of External Talent Leads to an Increased Focus on the Development of Internal Talent
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In with the Local Connected to the World - Stanton …...Answered: 106 Skipped: 0 35.85% 33.02% 35.85% 48.11% 59.43% 48.11% 36.79% 12.26% Regarding their personal insight about how
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JUNE 2013 The Online Executive News for Corporate Leaders
InTunewiththeLocal ConnectedtotheWorld
73 offices in 46 countries
T hebusinessworldismoredynamictodaythaneverbeforewithanacceleratingpaceofnewtechnologies,increasingglobalizationofmarketsandincreasinglycommonplacemergers,acquisitionsanddivestitures.Inthistumultuous
environment,organizationsmustcontinuallyrenewtheircapabilitytoachievecompetitiveadvantage.However,it is challenging to find the talent needed to compete in this dynamic business environment.
Theavailabilityofeducated,working-agetalentisshrinkinginmanyoftheworld’slabormarkets(Zolli,2007).Multinationalcompaniesaremovingworktodevelopinglower-costcountries,onlytofindthetalentwarsandwagessubsequentlyescalatingthere.Skilledleaderswiththecapabilitiestoenternewmarkets,createnewbusinessmodelsandinnovatenewtechnologies,arehighlysoughtafter.Consequently the demand for talent is outstripping the supply. As a result, top performers in key talent pools typically have multiple employment opportunities at any point in time.Thissetofcomplex,changingbusinessandtalentrealitiescreatestheimperativeforcompaniestofocusontalentinastrategic,systemicandcustomizedmanner.Gettingsomeoneinterestedinyourorganizationisthefirststepinattractingandretainingtoptalent.Inrecentyears,thephrase“the war for talent” hasbeenusedmostofteninconversationsaboutthechallengesofretainingtalent.Youhavetoovercomethetoughestchallenge,theoneofacquiringtalent.Withretention,youhave“familiarity”onyourside.Inacquisitions,the unknowncanbefrightening.Therearesixstepsto
In March and April 2013 Stanton Chase Athens through a survey to Senior HR Executives shed light on one of the important issues concerning all organizations: the “Strategy-Driven Talent Management”. Talent management is arguably one of the most important topic areas in organizations today. Talent is becoming recognized as a core competitive asset in business organizations and as the currency of business.
35.85%
33.02%
35.85%
48.11%
59.43%
48.11%
36.79%
12.26%
8.49%
40.57%
33.02%
17.92%
0%
7.55%
51.89%
30.19%
10.38%
0%
38
35
38
51
63
51
39
13
9
43
35
19
0
843
55
32
11
0
Recruitment
Retention
Professional development
Leadership
High potential developmentPerformance
mamagementFeedback and measurement
Workforce planning
Strongly Disagree
Disagree
Agree
Strongly Agree
I don’t know
Strongly Disagree
Disagree
Agree
Strongly Agree
I don’t know
Responses
Responses
AnswerChoices
AnswerChoices
The vast majority of participants (54.72%) believe that nowadays Strategy-Driven
Talent Management is a leadership imperative. From a list of components
of talent management, the participants pointed out the High potential
development as the most important component (59.43%), Leadership
ranks as the next key component (48.11%) followed by Performance
Management (48.11%).0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
Is talent difficult to retain in time of crisis?Answered:106Skipped:0
Is talent difficult to find in corporations during a period of crisis?Answered:106Skipped:0
Which are the key components of talent management?Tickthe3mostimportantAnswered:106Skipped:0
35.85%
33.02%
35.85%
48.11%
59.43%
48.11%
36.79%
12.26%
Regarding their personal insight about how easy or difficult it is to find a talent in a period of crisis, there is a strong debate.
51% of the participants believe that it is difficult to find it and
49% that it is easy. The same debate also appears in the part of discussion for
retention of the talent in a period of crisis. 41% of the participants agree that it is
difficult to retain talent and 59% disagree.
Senior Executives pointed out that the most critical challenges their organization will face over the next years will be cost pressure (62%) and the insufficient
leadership talent (44%). Also the challenge of the increased competition is ranking high on the list (39%). The majority of the participants (60%) considered as a critical challenge the fact that they have to meet the changing expectation of the next generation employees as well as the business growth
expectations (55%).
40.79% 31
19.54% 17
31.25% 25
55.41% 41
2.06% 2
31.71% 26
7.87% 7
15% 12
29.87% 23
19.18% 14
39.47% 30
41.38% 36
42.50% 34
21.62% 16
36.08% 35
37.80% 31
55.06% 49
41.25% 33
45.45% 35
60.27% 44
19.74% 15
39.08% 34
26.25% 21
22.97% 17
61.86% 60
30.49% 25
37.08% 33
43.75% 35
24.68% 19
20.55% 15
76
87
80
74
97
82
89
80
77
73
Does the work of HR reinforce your talent strategy?Answered:106Skipped:0
0% 20% 40% 60% 80% 100%
Less critical
Critical
Most critical
TotalLesscritical Critical Mostcritical
Changes in technology
Increased competition
Expansion into new markets
Globalization
Cost pressures
Regulatory environment
Business growth expectations
Insufficient leadership talent
Insufficient talent at other levels
Meeting changing expectations of next
generation employees
1.89%
6.60%
50%
41.51%
0%
2
7
53
44
0
Strongly Disagree
Disagree
Agree
Strongly Agree
I don’t know
ResponsesAnswerChoicesThe majority of the participants agree that HR plays an important role in the reinforcement of talent management.
69% of the participants believe that primarily the Senior Managers have
a strong decision in the company’s
approach to Talent Management. Next in ranking -but with a significant
percentage of 52%- comes the HR
function. Organizations are beginning to understand the strategic value of talent
and the impact that strong talent can have on financial outcomes. This represents a
major shift in how business executives view the value of Human Resources.
0% 20% 40% 60% 80% 100%
Does the work of HR reinforce your talent strategy?Answered:106Skipped:0
68.87%
9.43%
9.43%
51.89%
24.53%
73
10
10
55
26
Senior Managers
Middle Managers
Front line Managers
HR function
All the above
0% 20% 40% 60% 80% 100%
Which levels of seniority have a strong decision in the company’s approach to talent management?
Answered:106Skipped:0
3ExecutiveNewswire 06/13
Dimitris BourandasProfessor of Human Resources Management
Director of the Executive MBA & Co-Director of Msc in Human Resources Management
THE ATHENS UNIVERSITY OF ECONOMICS AND BUSINESS
Experience: 1992-Today: Consultant and Trainer for many private and public firms (National Bank of Greece, Tasty Foods, PEPSICO, Nestlé, Unilever, SAP, Diageo, Coca-Cola, Vodafone, Carrefour, Marks & Spencer, Citibank, BAT, Schneider Electric, Jansen, IKEA, L’ Oréal, Bayer, Henkel, etc.)
Talent management enables high performance Buildingagreat culture andcreatingtheconditions for people to succeed personallyandprofessionallyareattheheartofourvalue“Caring for our People”.CreatingtherightcultureandbeingaGreatPlacetoworkallowsustocopewithchallengingmarketconditionsandalsomeetandexceedtheexpectationsofcustomers,consumers,stakeholdersandsociety,atlarge.
Talentmanagementisessentialinbuildingastrongandsuccessfulorganization-rightpeopleintherightpositions-andnecessaryforachievingourbusinessstrategy.HRworkstogetherwithLineManagerstodevelop reliable and consistent internal sources of talent-talentpools-thatfueltheorganizationwithour future leaders.
Our people are core to our successInCoca-ColaTriaEpsilon,westronglybelievethatour business success depends every day on our employees.Thepride,passionandenergyofourpeoplearewhatmakeourcompanyspecialalongsidewithastrongsetofvalues-Authenticity,Excellence,Learning,Caringforourpeople,Performingasone,WinningwithCustomers-thatunderpinseverythingwedo.Ourwinning performance culture isdrivenbyourcommitmenttodevelopingandsupportingpeopleintheirprofessionalandpersonalgrowth.
Miranda Chatziioannou HR Manager MDX Eastern Europe
GE Healthcare
Eddy GerekosHuman Resources Director Hellas online
Is talent management
within your company
seen as a key
organizational objective
which drives and enables high performance?
7ExecutiveNewswire 06/13
Aphrodite SiokouHuman Resources Manager
Merck Hellas
Dimitris Papanikitopoulos,President, Linkage GreeceDimitris has been accredited by Linkage Inc. as a Professional Coach and he has consulted as a Personal Coach with more than 25 senior leaders in the Greek market from a variety of business sectors on topics as talent management, career planning, leadership development, attitude change. He is certified in numerous Leadership and Team Assessment Tools, including Leadership Assessment Instrument, Thomas & FACET Personality Tests, 360 Executive View. He has participated as a lecturer and coordinator in more than 30 Conferences and has experience of more than 1,500 days of training. He is a member of the Association of Chief Executive Officers (Ε.Α.Σ.Ε.) for the last 10 years. He is also the Secretary General of the Board of Directors of the Greek Institute of Sales (Ι.Π.Ε.) and finally an Honorable Member of the Board of the Greek Institute of Customer Service (Ε.Ι.Ε.Π.) for which he was the General Secretary for two years, a member of the Consulting Committee of the Hellenic Association of Management Consulting Firms (Σ.Ε.Σ.Μ.Α.).
Dimitris has graduated from the University of Piraeus, Greece and from London School of Economics, UK.
Inordertoenhanceandstrengthenourpeoplecapabilities,wehavedesignedandestablishedaGroupwideintegrated,innovativeandcomprehensiveProfessional Development frameworkaimingat:
HRprofessionalsmustfosteraculturewhereallemployeesconstantlythinklong-term,developtalentandtreattrainingasaninvestment,collaboratewithindustryandbusinesspartners,establishrelationshipswitheducationinstitutionsandadapt the workforce planning as a strategy than a plan.
Soweareinfactenteringthe“age of strategic talent”wherehumancapitalandtalentdecisionswillbeseenashighlycriticalbusinessdecisions.JackWelch(2006)madethepointthattalentmanagementdeservesasmuchfocusasfinancialcapitalmanagementincorporations.But the key issue is to match the Executive Talent to Business strategy.
Virginia ArgyratouPrincipal ConsultantStanton Chase Athens office
Matching Executive Talent to Business Strategy
THENEARFUTUREWILLBRINGMOREQUALIFIEDCANDIDATES“Contradictory” candidatesThesedays,peoplearemorereluctanttochangejobsalthoughtheyopenlyadmittheyareopentonewopportunities.However,theyaremorecarefulwiththeirdecisions.One of the problems we have to face in our daily activities is the fact that in many cases the prospective employees are not mature and reliable enough.Eventhoughthecrisishasmaturedthemabit,theystillhavenotreachedthedesirablelevel.Thisisoneofthereasonswhywestillseemanyexpatriatestakinghighlevelpositionsinthiscountry.
The dynamics between reality and expectationThetypeofemployeesthatmainlyourclientsarerequestingforarethosewhodotheirjobaboveandbeyondwhilecontinuallylookingforopportunitiestolearnandgrow.Additionally,stableanddedicatedpeoplearepreferred.EmployerswillbeeagertofindprofessionalwhoareverystronginBusinessDevelopment.Also,therewillbeanincreaseddemandforadvancedpeopleindifferentareasoffinance.Additionally,thestrongmarketsectorswillbeenergyandITindustrythatwillshowaneedforadvancedtechnicalskills.Ontheotherhand,hiringofRomaniansabroadhasincreasedoverthepasttwoyears.Oneofthemainreasonsisthattheyaremorewillingtorelocatethaninthepast.AlsotherearesomesectorsliketheITIndustrythathavedevelopedaverygoodpoolofcandidatesforregionalandinternationalroles.
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Nowadays, Talent Management is not what it used to be in the past. More and more research findings suggest that fewer people are capable of meeting the demanding future needs of organizations.
The Corporate Leadership Council (2005) identifies eight factors that are challenging for organizations from a talent
perspective: mergers and acquisitions increasing business complexity globalization aging workforce
competitive specialized talent markets the need to manage global talents
leaner organizational structures the expectations of organization leaders to control costs while driving growth.
The above eight factors increase both the importance and the difficulty of managing critical talent pools. Companies are taking multiple paths to ensure that they will have the talent they will need to meet current and future strategic needs.
Stanton Chase offices around the world indicate that the challenge of finding sufficient high-quality leadership talent is a critical issue in Asia, Japan and South America. China faces similar shortage of leadership talent due to the demographic situation and cultural philosophy.
Historically, corporations have addressed the issue of insufficient internal talent by recruiting successors from the external market. Understanding the quality of external talent leads to an increased focus on the development of internal talent. Organizations risk their future growth if they do not apply equal discipline to the development planning of both their talents and their products & services. The extent of the investment in identifying, reviewing and managing their talent pool highly depends on their internal and external environment.
The management of high-performing and high-potential employees (talent) in organizations has attracted attention in recent years because of the assumed links between the ways that talent is managed and the organizational performance.
T alent management is important for at least two primary reasons: i) the first is that effective talent management ensures that organizations can successfully acquire and retain essential talent, i) the second has to do with the extent to which
these employees are engaged.
Quality of External Talent leads to an Increased Focus on the Development of Internal Talent
References Corporate Leadership Council (2005), Realizing the full potential of rising talent: Vol. 2, Strategies for supporting the development of high-potential employees. Washington, DC: Corporate Executive Board.Manos Panorios
Managing Partner
According to Mark Zuckerberg, founder of Facebook, “an exceptional employee is not just a little better than someone who is pretty good; he is 100 times better”.