Engaging Times The Competitive Advantage in a Recession

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1 Engaging Times The Competitive Advantage in a Recession Chris Phillips Vice President Taleo

2 Taleo Customers

3 Taleo Talent Management Workforce Planning Sourcing & CRM BUSINESS GOALS Reporting Analytics Compensation Management Career Development & Learning UNIFIED PLATFORM Succession Planning Integration Configuration Profile & Competency Management Organization Management Global Foundation Usability Workflow Performance Management Recruiting Goals Management Assessment Onboarding BUSINESS PERFORMANCE 3

4 Agenda Today s Talent Management Challenges Engagement, Alignment & Productivity Engaging Times Research

5 Challenging Business Environment Spending is down High debt levels Credit crunch Net worth diluted Divestitures Losses Layoffs Out-sourcing M&A Restructurings

6 Business Challenges - Managing in Downturn )*%+,-'./.'0!"#"$% &&' $%&' ("#!"# Source: Economic Conditions Snapshot, McKinsey Global Survey, February 2009

7 How Can Talent Management Help? Cut Costs, Not Capabilities Maximize Workforce Productivity Prepare for Recovery 7 Cut in right places Cut recruiting and on-boarding costs Eliminate all nonvalue activities Minimise turnover Align workforce to corporate objectives Drive accountability Keep workers engaged Upgrade your workforce Identify and develop HiPo s Build leadership bench strength Ability to scale organisation Reshape the workforce with the skills you ll need tomorrow

8 Risk to Bottom Line & Brand Low Employee Engagement & Productivity 2 to 1 margin

9 A Global View of Employee Engagement 100% 90% 80% 34% 29% 26% 24% 23% 22% 10% 70% 32% 60% 50% 29% 27% 24% 30% 26% 31% 9% 40% 12% 18% 14% 15% 9% 16% 30% 13% 13% 12% 12% 14% 18% 20% 10% 11% 13% 19% 20% 19% 22% 21% 33% 0% India North America Australia/New Zealand Continental Europe UK & Ireland SE Asia China Disengaged Crash & Burners Honeymooners & Hamsters Almost Engaged Engaged Global Data n = 7,508 Source: The State of Employee Engagement BlessingWhite, Inc.

10 Major HR challenges for 2009 Source: Riding the recession? The state of HR in the current economic downturn, King s College London HRMLearning Board and Speechly Bircham.

11 Engagement, Alignment & Productivity

12 Effect of Engagement on Performance Highly engaged employees are more than 2X as likely to be top performers than are other employees. Source: Playing to win in a Global Economy , Watson Wyatt Source: Closing the Engagement Gap , Towers Perrin

13 Proof Points Engaged companies - 2.6X growth in EPS (Building Engagement in This Economic Crisis, Gallup Management Journal) Highly engaged employee companies: 26% higher employee productivity! turnover " talent attraction (Watson Wyatt s 2008/2009 WorkUSA Report) > Engagement:10,000 person org = $40+M to bottom line (Employee Engagement: The Key To Realising Competitive Advantage from DDI)

14 Value from Engagement & Alignment

15 Impact of Alignment Done Wrong

16 The Alignment Process

17 Difficulty with Goals Alignment 89% find being able to clearly link talent management goals to business goals challenging 22% 11% Not Challenging Challenging Very Challenging 67% Clearly linking talent management goals to business goals Source: Unified Talent Management: Critical to UK Business, 2008, Taleo Research and Business Intelligence

18 Achieving Alignment Alignment requires a two-fold approach 1. Management Commitment Clear line of sight Review & revise when changes occur 2. Technology Deploy cascading goals Automate goals management Launch goals-based reviews

19 Engaging Times Research

20 Workforce Moves Source: Engaging Times, 2009, Taleo Research

21 Workforce Moves by Industry Source: Engaging Times, 2009, Taleo Research

22 Employee Perspective Source: Engaging Times, 2009, Taleo Research

23 Employee Access to HR Tools Source: Engaging Times, 2009, Taleo Research

24 Visibility into Internal Job Openings Source: Engaging Times, 2009, Taleo Research

25 Career Planning Tools Source: Engaging Times, 2009, Taleo Research

26

27 Those organisations that can strike a better balance between the loot and the other stuff that makes employees love their firms will be the ones that emerge victorious from the economic malaise. Disengagement party Mar 31st 2009 Economist.com

28 Thank you! Chris Phillips VP Taleo

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