Talent Management in the New Economy Page 1

Talent Management in the New Economy

Volterra - September 2013

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Whyus?EricVanHoof,apragma6cwhohappenssome6mestobecrea6veMicheldeKemmeter,crea6vewhohappenssome6mestobepragma6cBothwatchingcarefullywhat'sgoingonintheirenvironmentandbelievingin:Allying materialandimmaterialvalueAllying humanityandbusinessAllying localandglobalissuesAllyingmicro(person),meso(company)andmacro(society)

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Key statement slide

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OurworldisshiGingquicklyanddras6cally…SociologicalResourcesFinancialEconomicalClimateCompetencesConnectednessPsychologicalDemography

Whataboutyou?

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Let’sZoomin&Zoomout

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Tectonicmouvements…

MobilityIT&communica6onAgriculture&nutri6onHabitatHealthEduca6on&trainingEntrepreneurshipGovern&manageEnvironmentInves6ngFinances&Banking

Tectonicmouvements…

Weworkonthefuturebusiness&economymodelsandshiGs,withnewwaystodetectvalueandpoten6al

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Marketsbelievevalueisimmaterial,humancapital:

Knowledge  Knowledge liability 

Emo1onal capital 

Earth destruc1on 

Emo1onal liability 

Debts Tangible values 

Destruc1ve role 

Earth value 

Contribu1on 

Bad/no communica1on 

Unefficient unsustainable process  Efficient sustainable  process  

Good communica1on 

Immaterial 

Material 

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« The biggest shi+s, empires and fortunes have been ini7ated right  in the middle of historical crisises » Paul‐LoupSulitzer–sold60millionbooks

WhataboutSavingsBanksintheNextEconomy?

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Pleasetakesomenotes…ItsourrawmaterialfortheupcomingworkshopGloballiabili6es….Vs.Localassetsofyourcompanies…

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Sociological:peoplemove…AfricaEuropeSouthEuropeLa6nAmericaEastEuropeWestEuropeWestEuropeMiddle&FarEastLa6nAmericaNorthAmericaChinaAfrica???Erasmus:250,000studentsin33countriesLowcostairlinesareover52%ofairtraffic

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Resources:peakoil,peakMendeliev

‐11before2030Oil,gas,iron,gold,silver,uranium,…

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Economical:toppinggrowthmodels–thelimitshavebeenreached

Growth<2,25%Toppingemergingmarkets,westerncountriesinrecession Our economical model has no future whatsoever  Jean‐Pierre de Jamblinne  The euro is heading a major cataclysm  Chris7an Ghymers  We are on a 30 years perspec7ve of recession and hyper‐infla7on Bruno Colmant 

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Financialvola6lity,vulnerabilityofdebt‐basedcapitalis6ceconomicmodel

Usapublicdebtover17,000billion$Europeantotaldebt:11,500billion€TotalUSdebt=233,000billion$,or376%ofGDPWarbetweencurrencies...

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Climate:balanceisalreadyoutofhand

Over30%ofspeciesex6nctbefore2030Rizeofsealevels&waterstress:directimpactonoverabillionpeoplebefore2020

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Competences:newtalentsneededforanewworld

Ourchildrenwillhavetodealwithtechnologythatdoesn’texistyet

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Connectedness:everybodyandeverythingislinkedwithinthe«globalizedsystem»

634millionwebsites–(December2012)2.2billion–Numberofemailusersworldwide144billion–TotalemailtrafficperdayworldwideHowvulnerableisallthis?

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Psychological:fear,stress,insecurity,risk,uncertainty,ambiguity,incoherence⇒ psychopathologicaldisorders(+/‐26to32%):stress,burn‐out,depression,anxiety(=longtermabsenteism,socialsecuritycost)⇒ Over75%oftheworkingpeopledonotliketheirjob,and/orarebored

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Demography

Ageingpopula6on:

•  2050:>65years=36%•  2030:+15%ofbelgianfederalbudget•  Implicitpublicdebt=426%ofGDP

+/‐25%oftodayseducatedyouthwillnotfindajobCostcutngisradicallychangingtheorganisa6onontheworkfloor:

•  Openplans•  Workplaceofthefuture

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Demography:4genera6onsontheworkfloor

Forthefirst6meever,

4genera6onsaresharingthesameworkfloor

Interes6ngfactisthatintermsofsuccessioninten6onsinFamilyBusinessesveryfewNextgenmemberswanttotakeover

Babyboomers

GenX

GenY

GenZ

Generation Born in Baby boom 1945-1964 Generation X 1965-1980 Generation Y 1981-1994 Generation Z (Millenium) 1995 - …

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Generation gaps Generation Main Characteristics Consequence

Baby boomers Work-Centric Independent Goal-Oriented Competitive

This workaholic generation believes that Generation X and Generation Y should pay their dues and conform to a culture of overwork. Baby Boomers criticize younger generations for a lack of work ethic and commitment to the workplace.

Generation X Individualistic Technologically Adept Flexible Value Work/Life Balance

Many Gen Xers saw their workaholic parents lose hard-earned positions. Generation X is less committed to one employer and more willing to change jobs to get ahead than previous generations. Unlike previous generations, members of Generation X work to live rather than live to work.

Generation Y Tech-Savvy Family-Centric Achievement-Oriented Team-Oriented Attention-Craving

Generation Y have a different vision of workplace expectations and prioritize family over work.

Generation Z (Millenians) Meaningful Work Opportunities to Collaborate Freedom of Choice Hyper connected No hierarchical

Need for faster decision making process Less hierarchical relationship More flexibility (hours, place of work, ...)

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Talent Management… Is it a “nice to have”? ► Talent Management is a TOP 3 risk* identified by CEO’s

1. Regulation and compliance (2010:1) 2. Cost cutting (6) 3. Managing talent (4) 4. Pricing pressure (15) 5. Emerging technologies (13) 6. Market risks (New) 7. Expansions of government’s role (New) 8. Slow recovery or double-dip recession (3) 9. Social acceptance risk/corporate social responsibility(CSR) (9) 10. Access to credit (2)

*E&Y 2011 Turn Risk and opportunities into results

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Talent Management… Definitely a “need to have”!

Alignment and integration drives return on investment

* E&Y 2010 Global Talent Management Survey

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Major challenges

  Keep abreast of new business models & changes   Systemic growth, collaborative economy   Expertise and importance of immaterial and human value   Stakeholders models

  Recruit, Integrate and keep the best resources

  Rethink working methods/ conditions, and remuneration packages   Globalisation: diversity as an asset (a diverse company is more

adaptable to environment & events)

  Be creative & innovate in talent management models => Maximize “trust” capital, essential on long term

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Align Vision, Values and Strategies with TM Two- way communication : learn to listen Work-life balance expectations Individual career expectations Self-awareness : personal development & coaching Better adaptation to others, leverage diversity Integrate all this into coherent strategy for success Balance between warm decisions (emotion/history) and cold decision (facts/figures/market reality)

Solutions :

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Talent Management… has to be fully integrated into company’s strategy/ADN

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WorkshopQ1:Whatdoyoudointernallyalreadytoanswerthe«new»needsofemployees?(strategy,dailymanagement)Whatcouldyoudomore,howtoayractthebestresources?Q2:Whatdoyoudoalreadytoanswerthenewneedsofclients?Whatcouldyoudomore?Q3 : Which are the assets and par7cular poten7als of caisses d'épargne  (on 7 levels), allowing you to surf on these emerging tendancies ? Q4:Whicharethestakeholdersinyourecosystemsthatcouldbeworthwiletoconsolidaterela6onshipswith?Q5:Howtofacilitatefinancingoflocalbusinessesinanewandsustainableway?

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Thanks for your participation... And good luck ! michel@uhdr.net +32 475 266 555 Eric.van.hoof@be.ey.com +32 474 980 472