Talent Management in Growth Markets: China -...

Talent Management in

Growth Markets: China

May 24th, 2016

Stacia Sherman Garr, Vice President,

Talent Management and HR Research

Candace Atamanik, Research Manager

Talent Management Research

Bersin by Deloitte

Deloitte Consulting LLP

Copyright © 2016 Deloitte Development LLC. All rights reserved.

#HITalentChina

Overview & Select Key Findings

The Talent Management Maturity

Model: China and Global 2000

Three Steps to Maturity

Q & A

Agenda

Stacia Sherman Garr

Vice President


Bersin by Deloitte


[email protected]

@StaciaGarr

Candace Atamanik

Research Manager


Bersin by Deloitte


[email protected]

@catamanik Join the Conversation on

Twitter

#HITalentIndia @Bersin

Overview & Select Key Findings


#HITalentChina

Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte /

Stacia Sherman Garr, Candace Atamanik, David Mallon,, October 2015.

High-Impact Talent Management: Talent Management Maturity in India, Stacia Sherman Garr and Candace

Atamanik / Bersin by Deloitte, 2016

Talent Management Research in China:

Quantitative survey:

235 HR leaders located in China at the time of

the survey

454 HR leaders at Global 2000 organizations

(revenue larger than $750 million USD)

Rigorous statistical analysis of common talent

management performance drivers

In-depth interviews with senior HR leaders in China

and G2000 to better understand related issues and

trends


#HITalentChina

Chinese Organizations Need to Evolve their Talent Management Approach

What should

organizations in

China do differently

with talent

management

practices to meet

employee and

business needs?

There is a limited

talent pool able to

meet these needs

due to an aging

population,

historical policies,

and a competitive

talent market

China’s talent

needs are changing

as it begins to

evolve beyond low-

skilled

manufacturing to a

more knowledge-

based economy

Source: High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by

Deloitte, 2016

Organizations in China can leverage our findings on talent management maturity

to improve their talent and business outcomes


#HITalentChina

Select Top Findings in China

In China, 92 percent of organizations are at Level 1 or 2 of talent

management maturity, 8 percent are at Level 3 and 4.

Source: High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by

Deloitte, May 2016

Only 34 percent of Chinese organizations are effective at performance

management (compared to 60 percent of G2000 organizations).

38 percent of Chinese companies have no or a new talent strategy

(compared to 25 percent of G2000 organizations).

One-third of Chinese organizations provide a culture of leadership and

learning (compared to nearly one-half of G2000 organizations).

Only 26 percent of Chinese organizations have developed a systemic

relationship with talent (versus 37 percent of G2000 organizations).

Only 17 percent of G2000 and 19 percent of Chinese companies have

Embedded D&I, while 26 percent of G2000 and 24 percent of Chinese

companies practice Strategic D&I.

The Talent Management Maturity Model: China and Global 2000

Copyright © 2015 Deloitte Development LLC. All rights reserved. 8

#HiTalentChina

Essential Talent Activities

Level 1

Critical Talent Growth

Level 2

Managed Talent Relationships

Level 3

Inclusive Talent System

Level 4

Be

rs

in

b

y

De

lo

it

te

The Talent Management Maturity Model

Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr,

Candace Atamanik, David Mallon,, October 2015.


#HITalentChina

The Talent Management Maturity Model Global 2000 vs. Chinese Organizations

Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr,

Candace Atamanik, David Mallon,, October 2015.

High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte,

May 2016.

Be

rs

in

b

y

De

lo

it

te

Inclusive Talent System

Level 4

10% 2%

Managed Talent Relationships

Level 3

19% 6%

Critical Talent Growth

Level 2

59% 91%

Essential Talent Activities

Level 1

12% 1%

China G2000


#HITalentChina

Let’s hear from you

Where does your organization fit on the talent management maturity model?

Level 1: Essential Talent Activities

Level 2: Critical Talent Growth

Level 3: Managed Talent Relationships

Level 4: Inclusive Talent System


#HITalentChina

Mature Chinese and G2000 Organizations Excel at Talent and Business Outcomes

3x more likely to

be highly

effective at

coaching and

developing

people

2.5x more likely to

be highly

effective at

identifying and

selecting

leaders

1.3x more likely to

be highly

effective at

agility and

innovation

1.2x more likely to

be highly

effective at

improving

processes to

maximize

efficiency

Chinese Organizations

G2000 Organizations

4x more likely to

be highly

effective at

coaching and

developing

people

3x more likely to

be highly

effective at

identifying and

selecting

leaders

2x more likely to

be highly

effective at

agility and

innovation

1.4x more likely to

be highly

effective at

improving

processes to

maximize

efficiency Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman Garr, Candace Atamanik, David Mallon, October 2015.

High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May 2016.


#HITalentChina

Understanding the Model

Foundational Differentiating

• Performance Management

• Procedural Fairness

• Sourcing and Selecting Talent

• Organizational Structure Complexity

• Embedded Diversity and Inclusion

• Strategic Diversity and Inclusion

• Systemic Relationship with Talent

• Culture of Leadership and Learning

• Talent Strategy

Foundational vs. Differentiating Factors

Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia Sherman

Garr, Candace Atamanik, David Mallon, October 2015.

High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by

Deloitte, May 2016.


#HiTalentChina


1. Strengthen Foundational

Talent Management

Practices

2. Develop a Business-Aligned Talent Strategy

3. Invest in

Critical Differentiating

Talent Management

Practices

Talent Management in China: Improve Maturity in Three Steps, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May 2016.


#HiTalentChina

Three Steps to Maturity Step 1: Leverage Strengths in Foundational Talent Management

Practices

• Increase the perceived procedural

fairness of performance appraisal.

• Increase transparency of promotion

criteria and ensure criteria are

followed when promotion decisions

are made.

• Enable managers to provide feedback

effectively.

• Incentive systems structured to

reinforce the importance of giving and

receiving feedback.


Candace Atamanik, David Mallon, October 2015.


Deloitte, May 2016.

1%

1%

9%

16%

31%

49%

41%

31%

19%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

G2000

China

Not At All Little/Very Little Somewhat

Moderate/Significant Great Extent/Seamless

Performance Management Factor

The Performance Management factor includes three dimensions: (1) employees and managers

review goal progress together; (2) employee promotion based on merit, performance, and

competencies; and (3) senior leader accountability for developing employees.


#HITalentChina


Which foundational factors does your organization excel at?

Performance Management: Frequent development-focused conversations

between managers and employees

Procedural Fairness: Employees feel performance appraisal and other talent

processes are fair.

Sourcing and Selecting: Candidates are effectively assessed.

Organizational Structure: Aligned with business objectives.


#HiTalentChina

Foundational Practices: Haier Group Implements Fair and Transparent Performance Management

Haier: The world’s third-largest home appliance

producer. Has grown aggressively after a humble

beginning in 1984 with 100 employees.

Objective: The foundation of Haier’s people strategy is

fair and transparent performance management.

Action: Employees are ranked daily on results,

managers monthly on performance and quarterly on

potential. The system is fully transparent; evaluations of

all employees, including managers, are openly displayed.

Result: This is fundamentally different from what

Chinese firms typically do, providing an example of an

innovative strategy to reduce the effects of cultural bias

toward conformity and rewarding relationships rather than

performance.

Source: High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin by Deloitte, May 2016.


#HiTalentChina

Three Steps to Maturity Step 2: Develop and Communicate a Business-Aligned Talent Strategy

• Identify most critical talent and develop

an approach for attracting, engaging,

and developing them.

• Ensure talent strategy is aligned to

business strategy and maintains focus

on foundational activities.

• Invest in workforce planning and talent

analytics to gather data to support the

talent strategy creation process.


Candace Atamanik, David Mallon, October 2015.


Deloitte, May 2016.

4%

1%

30%

30%

42%

49%

23%

19%

1%

0%

0% 20% 40% 60% 80% 100%

G2000

China

Not At All Little/Very Little

Somewhat Moderate/Significant

Great Extent/Seamless

Talent Strategy Factor

The Talent Strategy factor has five dimensions: (1) the state of the talent strategy, (2)

communication of the talent strategy by middle managers to direct reports, (3) integration of

leadership development and career management, (4) integration of talent strategy and analytics /

workforce planning, and (5) integration of talent strategy and D&I.


#HiTalentChina


Which of the following differentiating factors of High-Impact Talent

Management does your organization prioritize most?

Talent Strategy: it is clearly articulated and communicated across the

organization.

Leadership and Learning: these are core tenants of our culture.

Relations with Talent: we make fostering relationships mission critical and part

of everything we do.

Diversity and Inclusion: these are key objectives for our workforce

and touch many aspects of our total talent plan.


#HiTalentChina

Chailease: A leasing company that provides financial

solutions for equipment leasing and related services to

small and medium-size businesses (SMBs). Founded in

2005 in Shanghai, financing over 10,000 SMBs with more

than $6 billion over the last 10 years.

Objective: Rapid market expansion requires employees

to increase their productivity more quickly. The company

needs more efficient and effective knowledge and skill

transfer from senior to junior colleagues.

Action: Programs to identify and hire high-potential

younger candidates and nurture them to grow into

competent professionals in two to three years.

Result: New hires report the program provides a holistic

training system with balanced knowledge and practice

support. New hires also feel cared for by the company

regarding their own career management.

Chailease’s “From Seed to Tree” Talent Development

Source: High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman

Garr and Candace Atamanik / Bersin by Deloitte, May 2016.


#HiTalentChina

Three Steps to Maturity Step 3: Invest in Critical Differentiating Talent Management Practices

Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte / Stacia

Sherman Garr, Candace Atamanik, David Mallon, October 2015.

High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace Atamanik / Bersin

by Deloitte, May 2016.

• Implement processes and technology

systems that enable managers to

develop insight into employees’

strengths, capabilities, and needs.

• Create organizational structures that

enable effective responses to new

talent insights.

• Provide resources to employees that

enable them to develop a

“conversation” with the organization.

• Focus on efforts to attract, engage,

and develop women and Millennials.

2%

2%

20%

18%

41%

55%

33%

23%

4%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

G2000

China

Not At All Little/Very Little Somewhat

Moderate/Significant Great Extent/Seamless

Systemic Relationship with Talent Factor

The Systemic Relationship with Talent factor has six dimensions: (1) the organization projects the future

supply and demand for talent, (2) succession management conversations happen at every level in the

organization, (3) a well-developed talent acquisition function governance model, (4) HR systems designed

for usability by end-users, (5) change management needs clearly addressed during HR technology

implementations, and (6) employees allowed to invest part of their time in innovation-related projects.


#HiTalentChina

Intel Spurs Opportunities for Women in its Chinese Operations

High-Impact Talent Management: Talent Management Maturity in China, Stacia Sherman Garr and Candace

Atamanik / Bersin by Deloitte, May 2016.

Intel: One of the world's largest and highest valued

semiconductor chip makers, based on revenue. Supplies

processors for computer system manufacturers.

Objective: In 2005, Intel’s Global Diversity and Inclusion

(GD&I) team introduced its Global Women’s Initiative (WIN) to

focus on development and retention of its female employees,

who make up 24 percent of the company’s employee

population.

Action: The company encourages women to remain at Intel

to build their careers through the Women’s Leadership

Exchange, the Women Principal Engineer’s Forum, and

ongoing support from the WIN activities council.

Result: WIN collaborates with GD&I to conduct a yearly

leadership and development conference for women. These

conferences provide valuable workshops on topics such as

strategic thinking, which is offered to women managers

working in technical roles to sharpen their skills in this area.

Key Takeaways and Questions


#HITalentChina

Key Takeaways

The majority of Chinese organizations are at Level 2 of talent

management maturity

Increase the perceived procedural fairness of performance appraisal

Ensure talent strategy is aligned to business strategy

and maintains focus on foundational activities.

Provide resources to employees that enable them to develop a

“conversation” with the organization.

Source: Source: High-Impact Talent Management: The New Talent Management Maturity Model, Bersin by Deloitte /

Stacia Sherman Garr, Candace Atamanik, David Mallon, October 2015.

High-Impact Talent Management: Talent Management Maturity in India, Stacia Sherman Garr and Candace Atamanik /

Bersin by Deloitte, May 2016.


#HITalentChina

Questions

Stacia Sherman Garr

Vice President


Bersin by Deloitte


[email protected]

@StaciaGarr

Candace Atamanik

Research Manager


Bersin by Deloitte


[email protected]

@catamanik

About Deloitte As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

Copyright © 2016 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

http://www.deloitte.com/us/about

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