Global hr forum2009-anne_weisberg-mass career customization-a strategy for attracting and retaining critical talent

Mass Career CustomizationTM:A Strategy for Attracting and Retaining Critical Talent

Anne Weisberg, Director, TalentGLOBAL HUMAN RESOURCES FORUMSeoul, KoreaNovember 5, 2009

Workforce Trends

1

5

2

3

6

4

The convergence of key trends is dramatically changing the talent marketplace…

Workforce in 2009 and Beyond

Shrinking Pool of Skilled Labor

Evolving Expectations of Generations

Changing Family Structures

Increasing Number of Women

Increasing Impact of Technology

Changing Expectations of Men

The labor force is shrinking across Asia.

Projected Change in Working Age Population (15-64) 2010-2050

Sources: United Nations World Population Prospects, 2008

-60

-40

-20

0

20

40

60

80

100

120

140

160

180

200

Japan

South Korea

Russia

Germany

Italy

Spain

China

Netherlands

France

Brazil

UK

Mexico

Canada

US

SouthAfrica

Australia

India

1970-2010 2010-2050

%

South Korea is shrinking faster than any country on Earth.

Copyright © 2009 Deloitte Development LLC. All rights reserved.

In South Korea:

Single households were 48% of all households in 2000.

Women cite lack of supportat work and at home forwhy they are not havingchildren.

32.4 percent of Koreansaged 15 or more thought that husband and wifeshould share theirhousework evenly.

F

Fewer Elders are living with their children

81%

75%

68%

57%

49%

44%

Living Arrangements ofKorean Elderly in 2004

Living with Children 44%Living with Spouse Only 27%Living Alone 25%Other Arrangements 5%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Perc

ent o

f the

Eld

erly

1980 1985 1990 1995 2000 2004

Family Structures are Changing

Sources: Yeong-Ran Park, “Gender Dimensions of Family Policy in Korea (Jan, 2005);

Neil Howe et al, “The Aging of Korea” (Mar 2007)

Fewer men and women want to live in traditional families.


Women are an increasing part of the labor market

Women were 27% of university students in 1970but 45% in 2005.

The gender gap inprofessional, technical and administrative ormanagerial positionsdropped from 9.2% in 1998to 1.9% in 2008.

The percentage of womenworking rose by 22% from1988 to 2005.

F

Chi

na

Bra

zil

Kor

ea

Phili

ppin

es

Ban

glad

esh

Iran

Indo

nesi

a

%

80

60

40

20

0

Labor Force Participation Gender Gap

22

27

34

23

33

12

34

Even though the gender gap in labor force participation in South Korea is 23%, women are rapidly gaining ground.

Sources: Chong-Bum & Seung-Hoon Jeon, Demographic Changes and Economic Growth in Korea (2006)


Growth in Spending Power

Trill

ion

$

Women China India2009

2014

13

18

4.4

6.6

1.21.8

Women are also a major part of the consumer marketplace, making close to 90% of purchases. Women are the biggest emerging market ever seen.

18 –

16 –

14 –

12 –

10 –

8 –

6 –

4 –

2 –

0 –

Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR Sept, 2009


Values in Rank Order (Overall) Asian Leaders

Having a Supportive Work Environment 1Having a Good Fit between Life On and Off the Job 2Having a Challenging Job 3Working at a Company that Has High Values 4Being Well Compensated 5Having the Opportunity for High Achievement 6

Both men and women pipeline leaders value a good work-life fit in their employment.

But women leaders are less likely to be satisfied with their fit.

Source: Families and Work Institute, et al “Global Leaders” (2008)

Globalization and virtualization both require and enable a more flexible workplace

A virtual workplace has many business benefits.

A 2008 study of approximately 2,000 teleworkers at Cisco in fiveglobal regions found the following benefits from telework:

estimated $277 million in annual productivity savings more than 47,000 metric tons of greenhouse gas emissions avoided employee savings in gasoline costs of more than $10 million as many as 80 percent of employees felt career-life fit was better as a

result just over 90 percent felt working remotely was important to their overall

satisfaction.

“

South Korea has the world’s highest number of broadbandservices per capital and 90% of households have broadband

Source:Cisco Study Finds Telecommuting Significantly Increases Employee Productivity, Work-Life Flexibility and Job Satisfaction,” Press Release, June 26, 2009, http://newsroom.cisco.com/dlls/2009/prod_062609.html September 13, 2009).

The corporate ladder is giving way to a corporate latticeTM

Traditional, hierarchical structure

Many workers are similar to each other

Work is a place you go to

Separation of career and life

Linear, vertical career paths

Low mobility; loyalty based on job security

Tasks define the job

Flatter, often matrixed structure

Many workers are different from each other

Work is what you do

Integration of career and life

Multidirectional career paths

High mobility; loyalty based on growth and development

Competencies define the job

Corporate Ladder Corporate Lattice

Current responses to shift are inadequate

Flexible Work Arrangements (FWAs) are one of today’s response to the shift.

Flextime Reduced Hours/ Part-Time

Compressed Work Week

Banking of Hours

Leaves/ Sabbaticals Job-Sharing Telework/

TelecommutingGradual

Retirement

One-off point solutions that do not scale

Generally negotiated in a state of crisis

Neither integrated into nor supported by talent management processes and procedures

Not designed to address how careers unfold over time

Too often focused exclusively on hours and work location at a specific point in time

Viewed as exceptions or accommodations to an outmoded workplace standard

FWAs are not the solution. Instead, they are:

Customizing Careers

Mass product customization is a significant part of today’s consumer marketplace

Mass career customization delivers similar benefits as mass product customization

The MCC profile depicts the employee's target level of contribution

PaceOptions relating to the rate of career progression

WorkloadChoices relating to the quantity of work output

Location/ScheduleOptions for when and where work is performed

RoleChoices in position and responsibilities

The Four Dimensions—and Interrelationships of—MCC

MCC describes three broad sets of choices defined by the organization

Dialing Up Common Dialing Down

Definition• Enables an

increased focus on career growth

• Describes choices selected by majority of individuals

• Enables an increased focus on life outside of work

Examples

• Job rotation, stretch and/or global assignment,increased exposure and visibility to leadership

• Typical expectations for results and paceof development and growth; varies by job

• Telecommuting,flexible schedules, reduced travel, career plateau

MCC helps managers and employees have transparent conversations about benefits trade-offs of these choices

• Recognizes that careers ebb and flow over time

• Provides a more fluid structure in response

• Institutionalizes framework/process

• Allows choices

• Makes trade-offs more explicit

• Provides greater transparency

• Extends the bounds and consistency of what’s acceptable

Mass Career CustomizationTM provides a framework for how careers are increasingly being built

Career Years: 0-3Phase: Post MBA

Career Years: 4-7Phase: Changed industries

Career Years: 8-14Phase: Personal Needs

Career Years: 15+Phase: Mid-Career

MCC recognizes that level of contribution changes over time…

MCC recognizes that level of contribution changes over time creating a career sine wave of sorts…

Career Years: 0-3Phase: Post MBA

Career Years: 4-7Phase: Changed industries

Career Years: 8-14Phase: Personal Needs

Career Years: 15+Phase: Mid-Career

My Sine Wave

Stage 1Career Years 1 - 6Phase: Practicing Law

Stage 3Career 11 - 20Phase: New Career

Stage 2Career Years 7 - 10Phase: Working from Home

Stage 4Career Years 21 - PresentPhase: Leadership

Career Years: 1977-1984 Phase: Tax Specialist

Career Years: 1985-1995Phase: New Partner

Career Years: 1996-2002Phase: Regional Leadership

Career Years: 2003Current

More sine waves…

Career Years: 1973-1983Phase: Auditor

Career Years: 1983-1993Phase: New Partner

Career Years: 1993-2003Phase: Regional Leadership

Career Years: 2003 Current

And on…

www.masscareercustomization.com/interactive.html

What’s your sine?

Periodic Table of Talent

MCC is a part of a bigger picture

Facing Forward

MCC has rolled out to approximately 35,000 individuals, with the remaining 12,000 in progress or scheduled in current fiscal year

MCC Exec. Steering Committee

Recommends Rollout

Consulting • Remaining AERS

• Remaining Tax• Clients &

Markets• Strategic

Relationship Management

• Finance/SPS• Field Operations• India Pilots• Enabling Areas

ITS

• Remaining Deloitte LLP

• Remaining India Groups

• Legacy Bearing Point

• Financial Advisory Services• Tax (Chicago)• AERS (Capital Markets and

Southeast)• Human Capital• Talent• SR&I

Round 1 Pilots Round 2 PilotsPILOT PHASECOMPLETE WE ARE HERE

MCC is integrated into the annual talent cycle for all--not just those dialing up or down

Goal Setting:Set annual goals within context of

MCC Profile

Mid-Year:Review

performance against goals

The full population will have an MCC Profile--all the time.

Each individual’s current level of contribution, as depicted in MCCProfile:•Shapes annual goals.

•Provides context for performance evaluation.

• Informs assignment decisions. On-going: conversations and adjustments

to MCC Profile as needed and approved

Year-End:Assess

performance against goals

Career-Life Fit


What we set out to do…

Objectives

Sustain Client satisfaction

Quantify impact

Support cultural shift

Improve satisfaction

Increase retention

Create scalable model

Outcomes & Learnings

Outcomes

Objectives

Client satisfaction

Quantify impact

Support cultural shift

Improve satisfaction

Increase retention

Create scalable model

Outcomes

No negative impact on client service or business operations

Quality of counseling conversations improved

Positive correlation between MCC and retention

MCC is scalable

Career-life is a key driver of engagement/productivity

Our results show….

Implementation Demographics Improved Career-Life Satisfaction

Satisfied with my current

career-life fit

25%

Confident about future career-life fit

28%

Support to manage

career-life fit

15%

Improved Quality of Conversations Improved Retention of High Performers

-1.6% -0.8%

MCC Rollouts U.S. Firms

Male50%

Female50% Gen Y

31%

Veterans1% Boomer

s16%

Gen X 52%

% o

f top

per

form

ers

volu

ntar

ily e

xitin

g

0 20 40 60 80

By a ratio of 4:1, comments cited

improved conversation quality

Cited improved conversation

Did not cite improved conversation

# of Comments

MCC’s greatest worth is its option value —the comfort afforded by the ability to

customize the levels of career engagement as priorities change over time.

It’s all about option value…

Questions & Answers



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Global hr forum2009-anne_weisberg-mass career customization-a strategy for attracting and retaining critical talent