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With many markets facing talent shortages, organizations must take a new, holistic approach to managing talent and not just focus on the most senior levels. With new data analytic capabilities, HR functions have a real opportunity to create a differentiated and unique approach.
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War for Talent – Time to Change Direction
Highlights of Q1 2014 Human Resources Center of Excellence Survey
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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KPMG’s People and Change Advisory Practice
KPMG’s People and Change advisory practice has the ability to help member firms’ clients transform enterprise services to help improve value, increase agility, and create sustainable business performance.
Who we are
The People and Change Advisory practice brings a specialized global team of professionals within KPMG International global network of independent member firms operating in 156 countries. Our network of professionals help clients design, build, and manage change management and talent strategy initiatives.
What we do
The global People and Change practice transforms the performance of organizations across the world by changing the way people are led, managed and developed.
How we do it
We focus on two key areas of the change agenda – delivering the people agenda on large scale, complex, transformational change programs and transforming the HR function.
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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Focus on high performers
Show s what you can do and we will
invest
Focus on global team
New war, better tactics
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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The War for Talent
15 years later:
■ Little evidence that typical ‘war for talent’ practices contribute to improved business
■ Analysis of the 106 original ‘war for talent’ companies featured in the 1997 book shows:
– Only 25% are performing well in today’s market
– 1/3 have disappeared entirely
Source: Survey by AM Azure of the organizations featured in The War For Talent analyzing 100 plus firms to evaluate current corporate performance in 2013
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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The Research
Canada 13
Germany 15
South Africa 27
Australia 31
Brazil 38 USA 58
UK 63
Other 90
Respondents by Country
■ First edition of semi-annual KPMG HR Center of Excellence survey
■ In February-March 2014 we polled 335 KPMG HR and P&C consultants globally
Source: KPMG International, 2014
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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The Research
We asked:
■ What’s causing skills shortages globally? ■ Is addressing skill shortages rising in priority? ■ Is the war for talent different than in the past? ■ What’s more important – focusing on high potential/high performers or focusing on
all employees? ■ How can companies address talent shortages:
– Strategically? – Operationally?
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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0% 20% 40% 60% 80%
Social safety net programs
Restrictive immigration policies
Lack of ambition
Negative PEST conditions
Demographics
Weak educational systems
Unappealing employers/markets
Increased hiring
Generational
3%
9%
14%
18%
36%
38%
38%
51%
60%
Root Causes of Talent & Skills Shortages
What’s driving skills shortages? 1. Generational issues 2. Increased hiring/Improving economic
conditions 3. Unappealing employers/market
conditions
Source: KPMG International, 2014
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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Skills Shortages – Rising Priority
1.00 2.00 3.00 4.00 5.00
2 Years Ago
Now
2 Years Forward
2.89
3.66
4.06
1 = Not an issue/Low priority 5 = Critical issue/High priority
Addressing skills shortages is a higher priority now than two years ago – and will become critical in the next two years Source: KPMG International, 2014
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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The War for Talent Today
There is a new war for talent.
This war is different. Source: KPMG International, 2014
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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Talent management focus
2/3 of respondents say its time for new, more holistic talent strategies
Source: KPMG International, 2014
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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Addressing Talent Shortages – Strategic Approach
Top 3 strategic approaches 1. Enlist and empower
management 2. Focus on developing
clear career paths 3. Take a holistic
approach
Strategic Approaches to Addressing Skills & Talent Shortages
Source: KPMG International, 2014
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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Addressing Talent Shortages – Operational Approaches
Top 3 operational approaches 1. More compelling work
environment 2. Better use of HR analytics 3. More competitive rewards for
all employees
2.9
3.14
3.3
3.32
3.53
3.65
3.68
3.68
3.93
3.95
Increase use of contract labour
Increase use of outsourcing
Increase use of shared services
Focus on process automation
Offer training with edu. institutions
Improve training & budgets
Invest in helpful IT applications
Competitive rewards package
Better use of HR analytics
Enhanced work environment
1 = Not an issue/Low priority 5 = Critical issue/High priority Source: KPMG International, 2014
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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New war, better tactics
Take a global view of your company’s talent
Engage in a broadly planned approach that measures the impact of
your strategy
Experiment with distinct talent strategies tailored to your products, markets and business goals
Deploy powerful new data analysis capabilities to
gauge success and fine-tune your people practices
Contacts: Robert Bolton KPMG in the UK T: +44 20 73118347 E: [email protected] Mark Spears KPMG in the UK T: +44 20 73114753 E: [email protected] Paulette Welsing KPMG in the US T: +1 212 872 7635 E: [email protected]
© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
For more information visit: www.kpmg.com/warfortalent
