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Work the way you live
Deloitte Shared Services Conference 2019
How to retain talent in a hot shared services location: Arla’s story of fighting the attrition rateTorben Fabrin, Natalia Góra and Anna Gugala, Arla
How to retain talent in a hot shared services location
1
Breakout 142019 Deloitte Shared Services ConferenceSeptember 2019, Dublin, Ireland
Arla’s story of fighting the attrition rate
2
Welcome to Arla’s story of fighting the attrition rate Please have the conference app ready - we will use the polling functionality
Torben FabrinHead of IT and GSS
Natalia GóraService Delivery Manager
Anna GugałaHR Business Partner
Arla is the 4th largest dairy company in the world We create the future of dairy to bring health and inspiration to the world, naturally...
10,000+OWNERS
19,000+COLLEAGUE
S
14+ BN KGMILK INTAKE
10+ BN EURO REVENUE3 BRANDS
THE 4THLARGEST
3
4
Gdańsk is the place to beHotspot for investors and talent
Right at the seaside
3 cities in 1 area
Clean environment
Talent and office space availability
5
Arla discovered the location’s potential over 10 years ago And followed the plan of steady growth and moving up the value chain
• Process harmonisation
• Standardization
• RPA
• SSC talents supporting other functions (STA)
Value Creation2017
2013
• Performance Management
• LEAN
• Multi-functional growth
Transformation
2008SSC setup
• Finance processes in scope
• Centralisation
• Lift & Shift
5
56 199 322
FTE
¹Number of BPO, SSC, IT AND R&D centers in Gdansk, ABSL 2018
We were not the only onesCompetitors picked up the pace and Arla was no longer in a league of its own
Big entries of the Big Brands
Competitive Employee Value Proposition offered for strong
skills
Exciting job-opportunities available to talents
29
52
102
131
0
20
40
60
80
100
120
140
2007 2010 2015 2018
Number of centers in Gdansk¹
6
30 August 20197
The battle for talent began
…and we were losing this battle
8
From 2014 to 2017 the GSS attrition rate skyrocketed
2014 2015 2016 2017
Attrition Rate
9%
17%
25%
… with 10% of the operational positions constantly vacant
30%
Reasons for people leaving
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The vicious circle of attrition impacting center’s delivery
High workload
No time for value
add activities
People leaving
Slow recruitment
Open vacancies
Inattractivebrand
Lowsalaries
What is the attrition rate in your organization?Please open the Conference App and vote
[POLLING SLIDE]
A
Too high
B
On the spot
C
Too low
D
I don’t know
10
30 August 201911
Our way from 30% to 12%
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Four tactics to win the battle…by breaking the elements of the vicious circle
01
03
04
02
Salary Adjustments at 0 budget increase
Multi-channel “We are Arla GSS” employer branding campaign
Two well-targeted leadership programs
Improved Talent Acquisition approach
Salary Adjustments at 0 budget increaseWe generated savings that we re-invested to salary increases
13
Target: close the gap to the market and keep up with it
Continuous Improvement to fund the
increase
Disciplined performance mgmt. to stay on track
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Strong funding was fundamental for our strategy …and continuous improvement is easier said than done
Juniors
Seniors
Team Leads
Mgmt.
Juniors
Seniors
Team Leads
Mgmt.
Optimized task-allocation across the team pyramid
2016 2018
6%
Efficiency
YoY
Strong Year on Year efficiency gains
Waste-removal and process streamlining
Broad process standardization
Improved day to day ways of working
Robotic Process Automation
Juniors
Seniors
Team Leads
Mgmt.
Two well-targeted Leadership programsTeam leaders are the backbone of our delivery organization
Consistent leadership behaviours make workdays better for the many people
20 Team Leaders impact the 220+ employees – effective investment
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Constant focus on leadership development Leadership in Arla is not just an addition to performance, it’s an enabler
Current Team leadersLeadership Program:
• Desired and consistent leadership behavior
• 12 Leadership skills
• Leadership as 1st priority
Future Team Leaders Coordinator/Successor Program:
• Setting clear goals
• Defined set of competencies
• Develop competencies
80%
of Team Leader positions closed with internal candidates
30%
of participants promoted Team Leader
78%
employee satisfaction rate in terms of leadership
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Four tactics to win the battle…by breaking the elements of the vicious circle
01
03
04
02
Salary Adjustments at 0 budget increase
Multi-channel “We are Arla GSS” employer branding campaign
Two well-targeted leadership programs
Improved Talent Acquisition approach
“We are Arla GSS” Video from EB Campaign[PLACEHOLDER] - https://www.youtube.com/watch?v=kEGL3Kw0rHg
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https://www.youtube.com/channel/UCP7MxwPSBdYtWzhTClPlJ5g/videos
We also encourage you to watch the rest of our EB movies:
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“We are Arla GSS” employer branding campaignOur employees changed the GSS brand and built the campaign
150% Increase in number of applications (both internal and external applicants)
Employees re-discovered ARLA and our brand
Best Employer Branding Campaign in Poland 2018
Improved Talent Acquisition ApproachRecruitment process designed around segmentation, speed and consistency
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Speed recruitment process for
external candidates
Customised and faster internal
recruitment
Proactive pipeline management
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We managed to revert the trendFrom 2017 to 2019 the GSS attrition rate decreased from 30% to 12%
2014 2015 2016 2017 2018 2019
Attrition Rate
9%
17%
25%
30%
15% 12
%
…with only 3% operational positions vacant
New Target:
15%
There are no miracles
The traditional approach worked for usKey take-aways from our story
Clear and consistent priorities
Discipline in execution
Long-term strategy with broad buy-in
Thank youDo you have any questions?
30 August 201924
Appendix
12 leadership behaviours in Arla FoodsWe used them in our GSS leadership development programs
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