Managing talent in a turbulent economy: Part4
Description
Leaning into the recovery - novembre 2009.
Informations
| Publié par | deloitte |
| Publié le | 09 novembre 2011 |
| Nombre de lectures | 199 |
| Langue | English |
| Poids de l'ouvrage | 2 Mo |
Extrait
Talent
Managing talent in a turbulent economy Leaning into the recovery
November 2009
Contents
1 Key findings
2 The economic outlook brightens
3 Overall strategic emphasis remains defensive… 4 But many companies are going on a talent offensive
7 Are you developing talent? Will your competitors poach it?
10 Spotlight on talent and innovation
14 Survey participants/demographics
16 Contacts
Managing Talent in a Turbulent EconomySurvey Series This is a year-long longitudinal series conducted for Deloitte Consulting LLP by Forbes Insights surveying global executives across all industries, at large businesses worldwide in the Americas, Asia Pacific, and Europe, the Middle East, and Africa. The talent pulse survey research, as well as Deloitte’s position on the impending resume tsunami, has gained both U.S. and global recognition (e.g.,USA Today, The Wall Street Journal,andManagement Issues).
Playing Both Offense and Defense Part one in the series, conducted in January 2009, surveyed 326 executives from businesses worldwide on how they are planning and managing their workforces in today’s challenging economic environment. The report was published in February 2009 and includes a spotlight focus on workforce planning and analytics.
ReadPlaying Both Offense and Defense
Navigating a Course Through Rough Waters Part two in the series, conducted in March 2009, examined how 397 executives have changed strategic priorities and talent tactics since the initial January survey. The report was published in April 2009 and features a spotlight focus on talent and risk.
ReadNavigating a Course Through Rough Waters
Clearing the Hurdles to Recovery Part three in the series, conducted in May 2009, focused on retention and continued to track and compare how 319 global business leaders have shifted their talent priorities and strategies since the January and March surveys. This report was published in July 2009.
ReadClearing the Hurdles to Recovery
Keeping Your Team Intact A special report in the series compared the results of an August 2009 survey of 368 employees at large enterprises worldwide with the May 2009 survey of executives. The study examines employees’ perspectives on retention, their turnover intentions, and how their responses varied across the different workforce generations. This report was published in September 2009.
ReadKeeping Your Team Intact
Key findings
In September, for the first time since Deloitte began its longitudinal study of global talent trends and strategies, surveyed executives are more inclined to believe the worst of the economic crisis has passed, rather than the worst lies ahead. Many of these corporate leaders are preemp-tively leaning into the recovery, adopting talent strategies aimed at heading off a looming “resume tsunami” in the hope of preventing key employees from departing for better opportunities. Nevertheless, many companies risk being left behind because they have not implemented either the talent or innovation strategies needed to seize the opportunities presented by a recovering economy. ith cost cut and hHeuandckoeruinntg rdeodwucnt iwons alone matiy npgrove to be a losinga smtir, alteeagy for weaptahneireisn gw tithhe -resume tsun ving com out the workforce strength they need to benefit from the economic recovery.
Since January 2009, Deloitte has been conducting a lon-gitudinal survey to evaluate how executives are managing their workforces during the economic downturn—and whether they have effective strategies in place for the recovery to come. The September 2009 survey, like its predecessors, provides insights into the talent plans and priorities of major companies across every sector of the global economy. The results of the September survey revealed the following key findings:
• The hints of economic optimism that first appeared in the May survey have grown considerably. Surveyed executives and talent managers who believe the worst is behind us outnumber those who believe the worst is yet to come—and by a considerable margin.
• Many companies in the survey are implementing strate-gies to avoid a resume tsunami by going on the offen-sive to retain today’s key employees and train the next generation of leaders. Corporate layoffs, which have been prevalent throughout this survey series, declined significantly at these companies, suggesting that many companies have completed the task of rightsizing their workforces. • While nearly all surveyed companies recognize the im-portance of innovation, few of them appear to have tal-ent plans in place to drive innovation in their businesses. • There are clear and compelling differences between talent and innovation leaders and talent and innovation laggards. We identify talent and innovation leaders as those companies with a deep understanding of the link between talent and innovation, making them far more likely to have identified the critical employees who drive innovation in their companies; far more likely to have specific training programs in place to develop critical innovation employees; and far more likely to be making the investments—both financial and non-financial— needed to retain the employees who drive innovation in their companies.
Deloitte believes that companies that remain in a defen-sive posture risk losing the fight for talent that this survey suggests is already heating up. Hunkering down with cost cutting and headcount reductions alone may prove to be a losing strategy for weathering the resume tsunami, leav-ing companies without the workforce strength they need to benefit from the economic recovery.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. All survey data and statistics referenced and presented in this report, as well as the representations made and opinions expressed, unless specifically described otherwise, pertain only to the participating organizations and their responses to the Deloitte surveys conducted in May 2009 and August 2009.
Managing talent in a turbulent economy – November 2009
1
e economic outlook brightens
For the first time since this study was launched in January 2009, more surveyed executives now believe the worst of the economic downturn is behind us, rather than the worst is yet to come—and by a decisive 31% to 7% margin. This greater optimism was reflected in a Septem-ber survey of 325 senior corporate leaders and talent man-agers working at large companies (annual sales of $500+ million) across a range of industries and the three major economic regions. The survey was conducted by Forbes Insights on behalf of Deloitte.
Rising economic optimism is mirrored by a fall in pes-simism (Figure 1). Over the course of this longitudinal survey, the number of executives who predicted the worst is yet to come increased from 30% in January to 32% in March before dropping dramatically over the past two surveys to 18% in May and now just 7% in September.
Figure 1. Executive outlook on the economy*
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0%
January 2009
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*The remaining surveyed executives believe conditions are tough and will be for a while.
The worst is still ahead The worst is behind us
September
While the overall economic outlook may be brighten-ing, participating executives, who have passed through perhaps the most difficult economic crisis in a generation, retain a healthy sobriety about the future. Although the shift toward optimism is notable, 62% of executives and talent managers surveyed still anticipate a difficult operat-ing environment—a figure that has remained relatively constant throughout the survey (January, 64%; March, 58%; May, 66%).
Digging Deeper:Of all industries surveyed, Financial Services executives and talent managers were most likely to report they have weathered the worst of the economic crisis. Nearly four in ten (38%) predicted that the “worst is behind us” compared to 31% overall.
For the first time since this study was launched in January 2009, more surveyed executives now believe the worst of the economic downturn is behind us, rather than the worst is yet to come—and by a decisive 31% to 7% margin.
Managing talent in a turbulent economy – November 2009
2
While cost cutting was widespread across all industry groups, several other strategic priorities are also vying for management attention (Table 1). For the first time in this survey series, addressing risk and regulation challenges cracked the top three priorities, with both Energy/Utilities and Financial Services executives citing it as a top strategic issue. As seen in Figure 2, managing human capital ranked highly, as it has in previous surveys, led by Energy/Utilities executives who ranked it second and Technology/Media/ Telecommunications executives who ranked it third.
The September survey suggests that corporate strategy may be following behind future economic perceptions. When asked which strategic issues rank highest on the management agenda, executives who participated in the September survey ranked “cutting and managing costs” first, just as they had done in each previous survey since January (Figure 2).
Managing talent in a turbulent economy – November 2009
3
Improving top and bottom line performance Developing new products and services Addressing risk and regulation challenges Investing in innovation/research & development Expanding into global and new markets Capitalizing on M&A/divestiture/ restructuring Leveraging technology
13%
Digging Deeper:Nearly four in ten of surveyed Asia Pacific (APAC) executives (39%) ranked “managing human capital” as a leading strategic priority—the only region to list it in the top three. Only 28% of Europe, the Middle East, and Africa (EMEA) executives and 26% of Americas executives listed managing human capital as a top priority.
Table 1. Current strategic issues by industry Consumer/ Life Sciences/ Technology/Media/ Ranking Industrial Products Financial Services Telecommunications Energy/Utilities Health Care 1 Cutting and managing Cutting and managing Cutting and managing Cutting and managing Acquiring/serving/ costs (67%) costs (62%) costs (53%) costs (50%) retaining customers (59%) 2 Acquiring/serving/ Acquiring/serving/ Acquiring/serving/ Managing human Cutting and managing retaining customers retaining customers retaining customers capital (43%) costs (55%) (45%) (38%) (46%) 3 Developing new Developing new Managing human Addressing risk and Addressing risk and products and services products and services capital (38%) regulation challenges regulation challenges (31%) (27%) (30%) (35%)
11%
Cutting and managing costs Acquiring/serving/ retaining customers Managing human capital
15%
12%
46%
58%
Figure 2. Current strategic issues
20%
27%
31%
Overall strategic emphasis remains defensive…
24%
But many companies are going on a talent offensive
Despite a still significant focus on cutting costs, many surveyed companies appear to be gearing up to go on a “t lent offensive.” a In May, Deloitte warned of an approaching resume tsunami in which employees who potentially have been harboring a desire to move on from their current employ-ers may seize new job opportunities as the economy improves. Perhaps recognizing the need to protect their companies from this resume tsunami, many executives
and talent managers who participated in the September survey report they are reviving retention initiatives and
training and development programs in an effort to keep their workforces intact.
Digging Deeper:September survey revealed an interesting geographical splitThe on current talent priorities. Companies in the Americas and APAC appear to be mak-ing a more decisive shift to a talent offensive. Based on average rank, APAC execu-
tives reported they are most focused on training and development, while Americas executives are nearly evenly split between retention and training and development. EMEA companies appear to be slower in shifting from defense to offense, remaining strongly focused on reducing employee headcount and costs. This trend is reaffirmed by the percentage figures: 47% of EMEA executives surveyed ranked reducing em-ployee headcount as their top talent priority, compared to just 30% in the Americas and 23% of APAC respondents.
Figure 3. Current highest talent priority
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January 2009
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Although reducing employee headcount was listed again as the leading current talent priority, the number of execu-tives ranking it as their highest priority dropped from 42% in May to 34% in September (Figure 3). More interestingly, in a weighted average of talent priority rankings, training and development came out on top, with retention and headcount reduction tied for second among current talent priorities.
September
Reducing employee headcount
Retention
Training and development
Managing talent in a turbulent economy – November 2009
4
Looking ahead to the future, the strategic shift among executives toward a talent offensive becomes even more pronounced. When asked to rank top talent priorities three months from now, survey participants pushed headcount reductions down to a clear third, with just 22% ranking it highest, behind both training and development (32%) and retention (30%) (Figure 4). This is the first time since the survey’s inception that reducing headcount has not topped the list of future talent priorities.
Figure 4. Highest talent priority three months from now
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0% January 2009
March
May
forward to the next ecutives no lo trqWahuneahikrre t n“ter rl,e osdouurkcivinengyg eed mepxloyee headcounngt”e ra s op talent priority—the first time since the survey’s launch in January 2009.
Digging Deeper:Both the Consumer/Industrial Products and Life Sciences/Health Care industries appear to be going on the most aggressive talent offensive. When it came to ranking talent priorities over the next quarter, both industries ranked training and development first at 45% and 38% respectively—significantly higher than defensive measures such as reducing headcount (18% for Consumer/Industrial Products and 19% for Life Sciences/Health Care).
Reducing employee headcount
Retention
Training and development
September
Managing talent in a turbulent economy – November 2009
5
As headcount reduction declines as a talent priority, surveyed companies also report that layoffs are subsiding. While rising unemployment worldwide indicates layoffs are still prevalent, the September survey suggests that many companies have already made the talent cutbacks they need to make. Between January and May, the num-ber of survey participants who experienced layoffs rose steadily from 42% in January to 47% in March, to a high of 61% in May. But in September, layoffs in the preceding quarter among survey participants fell by 13 points, from 61% in May to 48% (Figure 5).
Looking ahead, the layoff picture improves even more dra-matically. Only 36% of executives who participated in the September survey anticipate more layoffs in the coming months—a significant drop from the May high of 50%. The 54% of respondents who do not expect any layoffs is the highest since this longitudinal study was launched, up from 43% in May.
Figure 5. Organizations conducting/anticipating layoffs
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0% January 2009
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Past three months
Next three months
Digging Deeper:Participating companies in the Financial Services industry remain the most likely to have experienced layoffs, but Technology/Media/ Telecommunications companies are also looking to cut back talent, both now and in the near future. For Financial Services, 54% have had layoffs in the past three months, and 39% anticipate layoffs in the next three months. In Technology/Media/Telecom-munications, 53% have had layoffs in the past three months while 44% expect them in the next three.
tLhaayno ffhsa are easing. Fewer lf (48%) of surveyed executives reported layoffs in the last quarter, down from 61% in May.
Managing talent in a turbulent economy – November 2009
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Are you developing talent? Will your competitors poach it?
As headcount reductions slide down the management agenda and layoffs abate, many of the surveyed com-Increasin mpensation panies are ramping up retention initiatives to keep key leaders and high-potential employees on board—and todiunn aiagnscor decn esio dfos rgu ecvo -prevent competitors from stealing them away. Surveyed companies seeking to survive the potential resumeeration: 28% ye tsunami are focused on several key retention tactics, such as opening up more opportunities for career advancementexecutives plan to boost and offering better financial incentives.compensation in the year Nearly one-in-three executives surveyed (31%) reported theah rl double eleven points from January (20%) (Figure 6). After nearly a.)%51( yraunaJ ninse esporyn aeae,d they are increasing career path opportunities—a jump of year of austerity, even compensation is back on the table, with 28% reporting they plan to increase compensation levels over the next 12 months, up from 15% in January. Retaining high-potential employees is just the first step in Talent managers also see flexible work arrangements as an developing an effective talent strategy. Future corporate effective retention tactic; 35% of those surveyed plan to leaders must also be trained to handle greater levels of increase their focus on this area. responsibility as their careers develop.
Figure 6. Areas of increased focus on retention over the next 12 monthsIn previous reports, Deloitte flagged the renewed attention to training and development programs among executives Flexible work (e.g., telecommuting,35%managers. That trend grew even stronger inand talent reduced work week)25%September, particularly when it comes to nurturing the Redeployment of workers to divisions35%careers of key employees. and jobs in higher demand36%
Career path opportunities
Compensation levels
Benefit levels and packages
Redirection of outsourced work to in-house employees
Discretionary perks (e.g., subsidized food/beverage, subsidized parking) Paid holidays and vacation
Tuition reimbursement
7% 7%
7%
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23% 29%
September 2009 January 2009
Managing talent in a turbulent economy – November 2009
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According to the September data, nearly half of surveyed executives plan to increase high-potential employee development programs (49%) and a similar number are ramping up initiatives to develop future leaders/managers (48%) over the next 12 months (Figure 7). Programs aimed at developing top talent and training corporate leaders easily outrank all other training initiatives, including regula-tory/risk training and sales-specific training.
Digging Deeper:APAC executives appear especially focused on developing new leaders and managers. Two out of three (67%) APAC executives surveyed plan to increase efforts in this area compared to just 36% in EMEA and 39% in the Americas.
Figure 7. Areas of increased focus on training and development over the next 12 months
High-potential employee development
Leadership/management development
Regulatory, security and risk training
Onboarding, orientation
Job-specific – sales, customer service
Job-specific – operations
Job-specific – IT, finance, HR
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34% 26%
33% 24%
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26% 22% 26% 21%
49%
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September 2009 January 2009
Signs of life in recruitment:With many companies on a talent offensive, recruitment efforts are showing signs of life. The number of executives who report they plan to increase experienced hires over the next year rose to 39%. There was also some relatively good news for recent college graduates seeking entry into the workforce: 26% of executives plan to increase campus hires—up from 15% in both March and January. As in previous surveys, “experienced hires” remain in high demand, ranking first among recruiting categories for every industry surveyed: Financial Services (48%), Energy/Utilities (40%), Consumer/Industrial Products (37%), Life Sciences/ Health Care (32%), Technology/Media/Telecommuni-cations (32%).
Managing talent in a turbulent economy – November 2009
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Many surveyed companies appear convinced that high-potential talent that is not properly developed can be easily poached by competitors. Despite a weak economy, concern over losing key employees to better opportunities has been growing steadily, increasing from 43% in January to 44% in March to 51% in May. In September, the num-ber of executives who said they were either highly or very highly concerned about losing high-potential employees grew to 60% (Figure 8).
Figure 8. Respondents concerned about losing high-potential employees to competitors
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60% of surveyed talent leaders are concerned they could lose key employees to their competitors.
Managing talent in a turbulent economy – November 2009
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