02 Workforce Planning, Talent Acquisitions and Employer Branding PDF

BASICS OF HUMAN RESOURCE MANAGEMENT MODULE 2 Hon. Prof. (FH) Mag. (FH) Regina Rastbichler, MA  THE HRM LANDSCAPE HR- Strategy & Planning...

BASICS OF HUMAN RESOURCE MANAGEMENT MODULE 2 Hon. Prof. (FH) Mag. (FH) Regina Rastbichler, MA  THE HRM LANDSCAPE HR- Strategy & Planning Talent Competen Mgmt.& cy Mgmt. Developmen Employ Change t er Manageme Brandin nt Diversi g Talent ty Acquisiti Wor Retenti on k on Candida Compensati te on & Selectio Benefits HR n Socia HR HR-IT 2 Organization l Controlli Medi ng STRATEGIC WORKFORCE PLANNING Strategic Workforce Planning anticipates in close alignment with the company objectives the long term changes and requirements of workforce demands and projects the qualitative and quantitative development of the employee structure as well as the acknowledgment of potential strengths and weaknesses.  multidimensional, dynamic, pillowed by scenarios, integrative (external and internal factors)  PLANNING OF HR NEEDS # of employees # of empl. Deficit required > current staff Congruence Current staff of current and required staff # of empl. required Surplus < current staff time 4 Source: Nicolai,C. Human Resource Management, 2014 DETERMINANTS OF WORKFORCE PLANNING: External Factors Internal Factors  Market changes  Corporate Strategy ! (Competitors, Suppliers,....)  Production Program  Economic developments  Intended sales volume (Economic situation)  Demographic  Production method (level of developments automation)  Legal / Political situation  Organisation /(re-)structuring  Changes in  Often a reasons for laying off technology people  Social Changes (Values, traditions,  Vacation policies 5 …)...  Absence from work, Turnover FACTORS DETERMINING WORKFORCE DEMAND – EXAMPLE Senior Promotio Hiring n Losses out From Retireme outside Promotio nt, Professiona n Turnove l in r Junior 6 Growt h Source: Armin Trost, WORKFORCE PLANNING - CORE QUESTIONS - How many employees (quantitative), - Which qualifications (qualitative), - When /for how long (timing) and - Where (territorial) Do we need to realize the planned production/ performance program?  Strategic analysis in scenarios / portfolios are 7 necessary QUANTITATIVE WORKFORCE PLANNING METHODS ► Leading Indicators Determine the ratio between Performance and required numbers of employees based on programmatic assumptions (e.g. professors/students, nurses/patients). ► Trend Analysis Applying statistical models that predict labour demand for the future, given objective statistics from the previous years ► Task Analysis Tasks are identified and quantified in terms of appearance and workload ► Conclusion by Analogy Determine workforce requirements according to those 8 of similar organizational units or companies Source: A. Trost, 2013 OPERATIONAL WORKFORCE PLANNING – Trend analysis Revenue # Sales Revenue/ # Other Total # Year # Mgr (T€) Reps FTE* (T€) FTE of FTE 2004 2014 6.000 30 200 9 39 6 2005 2015 6.480 35 185 11 46 7 2006 2016 6.998 37 189 12 49 7 2007 2017 7.558 37 204 12 49 7 2008 2018 8.163 36 227 13 49 7 2009 2019 8.816 43 205 14 57 8 2010 2020 9.521 46 207 13 59 8 201 2021 10.283 55 187 15 70 10 1 2012 2022 11.106 58 191 17 75 11 2013 2023 11.994 60 200 18 78 11 2014 2024 12.954 65 20 85 12 Demand 5 2 1 Average annual Revenue Growth 8% Average Revenue/Sales Rep (T€) 200 Average Relation Other Ees/Sales Reps 0,31 9 Span of Control 7 * FTE: Full Time  WORKFORCE PLANNING USING ANALYSI TASK EXAMPLE ITALIAN RESTAURANT S Assumptions # Task # Duration/ Task Duration s (h) (Min) Core 28 Tasks Guests/ 200 Prepare 1/ 6 2 2 Day Table Table 7 Guests/ 3 Take 1/ 6 3 3 Table order Table 7 Tables/ 6 Prepare 1/ 20 4 1 Day 7 Pizza Guest 0 3 Hours/ 15 Billin 1/ 6 3 3 Day g Table 7 Cha 1/ 6 2 2 t Table 7 Drinks/ 2 Prepare 40 0, 3 Guest Drinks 0 5 Additional 10 Tasks Break 5 1 s % Administra 10 3 tion % Misc 20 6. % Tota 38 Worki l 8 Workforce Demand 4, ng Hours/ (FTE) 7 10 Day QUALITATIVE WORKFORCE PLANNING Classification of employees by job category, gender, age Educational and competency based  education or competences  Increasing importance: company age pyramid (generation diversity of workforce) 11 HRM LANDSCAPE HR- Strategy & Planning Talent Developme Change nt Employ Manageme er nt Learnin Brandin Talent g g Acquisiti Wor k Retentio on n Candidat Compensati e on Selection & Benefits HR Socia HR HR- Organizati l Controlli IT on Medi ng a 12 A STRONG TALENT ACQUISITION STRATEGY IS SUPPOSED TO ANSWER THE FOLLOWING QUESTIONS ► Which parts of all talent acquisition activities are critical to the competitive advantage of your company and its long-term success? ► What are major challenges in talent acquisition and how does your company allocate resources to these? ► Related to the given challenges and goals, what are key approaches in talent acquisition? 13 QUICK BRAINSTORMING For your organisation you need to recruit 1. Senior controller 2. Customer service employee (technical engineer) 3. Admin employee (e.g for call center or contract admin) ►What are potential channels to find suitable candidates? ► What do you estimate as cost 14 (low/high)?  JOB ADS  Employee Value Proposition  Job  Job-ID  Location  Social Media  Tasks and Responsibilit ies  Requiremen ts, Education, Competenci es 16  Attractive  INTERNAL VERSUS EXTERNAL HIRING Internal Hiring External Hiring  Lower risk  New perspectives/ideas  Short Time-to-Fill  Lower training efforts  Lower costs  Competitor insights +  Internal competition  More options  Faster integration  Development opportunities  Less options  Higher costs  Higher training costs  More integration efforts −  Disappointed colleagues  Higher recruiting risks  Conflicts among managers  Higher turnover 15  CONTINGENT WORKFORCE Contra Employme ct Performan nt Worke ce Contract r Salary Directio n Agreeme nt Supplier Company Fe e 17 According: Holtbrügge, D. (2004). Human Resource  CAREER FAIRS ► Direct and immediate contact to potential candiates ► Immediate pre- selection and job offering ► Direct competition with other employers ► Limited focus on specific target groups ► Limited contact to passive seekers 18 ►  EXECUTIVE SEARCH ► Usually executive positions will be filled through the (secret) help of executive search consultants ► Some of the leading executive search agencies are e.g. Egon Zehnder International, Heiddrick & Struggle, Russel Reynolds, Korn/Ferry, Kienbaum ► The overall fee is 33% of the candidate‘s future total target annual salary which is billed independently of the success of the search (retained search) ► There is a difference between active search based on 19 research and ad-based search  EXECUTIVE SEARCH PROCESS Determine Requirements Interview related to Candidates Position to be filled Identify Target Check Companies References of (Consider off- most suitable limits) Candidates Negotiate job- Candidate Search related and Conditions (e.g. direct Approach Salary, Sign-on Present profiles of Bonus) Coach new three possibly Executive during suitable first 100 Days of 20 Candidates Source: Trost, A., Employment EMPLOYER BRANDING AND ACTIVE SOURCING WHY EMPLOYER BRANDING?  Change from employer market to a candidate market (applicants are no longer "petitioners", they can choose attractive employers (-> war for talent)  It is therefore crucial for companies to know why candidates of a selected target group decide for or against a company before applying  The creation and positioning of the brand requires sufficient time  If the communicated values do not match the reality at the workplace, this can damage the credibility of the employer brand  EMPLOYER IMAGE AS A COMPETITIVE ADVANTAGE - X% - X% - X% - X% -X % Awarene Compa Employ Job Applicati Retentio ss ny er Appe on n Image Image al Brandin Personnel Marketing/ g Relationship 23 Source: Trost, A., Management  GOAL OF EMPLOYER BRANDING Employer branding and personnel marketing always have the overriding goal of supporting HRM with the following challenges: The competitiveness of the company Keep “key employees", key players etc. in the company Optimization of talent acquisition Make a significant contribution to the design and implementation of HR policy But always in close coordination with the corporate strategy !! According to: Trost, A. New HR strategies between 24 stability&agility, 2018  WHICH PROMISE? 25  PRODUCT BRAND VERSUS EMPLOYER ATTRIBUTES Product Employer Functio Priz Compa Task n e ny s Prestig Qualit Product Offer e y s s Inno Value Peopl Desig - n s e vatio n 26 According: Corporate Leadership Council (1999). The Employment Brand. Washington: The Corporate Executive Board.  ARGUMENTS FOR POTENTIAL EMPLOYEE VALUE PROPOSITIONS Offers Tasks Company People Values Purpose Compensati Attracti Products People‘s Compa Environme ve / Personality ny nt & on Benefits tasks & Services culture Climate projects Qualificati Career Technolo on level of Leadershi Social opportuniti Internation gy workforce p responsibili es al work leader quality ty Collaborati Work-Life- Innovati Market Famou Health Balance on s of on leader leader others Diversity Impact Success Trust & Quality of Location live Respec Public t reputatio n Work flexibili 27 Security ty Source: Trost, A. (Hrsg.) (2009). Employer  BUILDING AN EMPLOYER BRAND Target Group Definition Operation Analysis Creative Formats, Employer Image, Rules Target Group & Processes, Preferences, Validation, Employer Stengths, Campagnes Labour Competition Strategy Employee Value 28 Proposition (EVP), Media Source: Trost, A. (Hrsg.) (2009). Employer  EMPLOYEE VALUE PROPOSITION (EVP) Your Your competito target ► An Employee Value rs‘ group‘s Proposition (EVP) provides strengths preferenc an authentic, unique and es relevant answer to the EV P question, why anyone should be interested in What you working at a particular offer as an employer employer or why anyone (your should apply for a specific strengths) job 29 Source: Trost, A. (Hrsg.) (2009). Employer Branding.  DEFINING THE EMPLOYEE VALUE PROPOSITION Target Competito EVP Employer Employee Value Group rs‘ Proposition Strengths Preference Strengths s A A A B B B C C C D D E E E 30 authent relevant different ic Source: Trost, A. (Hrsg.) (2009). Employer Branding.  A HISTORICAL EXAMPLE “Men wanted for hazardous journey. Low wages, bitter cold, long hours of complete darkness. Safe return doubtful. Honour and recognition in event of success” Ernest Shackleton (1914) Picture: Endurance final sinking in Antarctica (1915) Royal Grographic Society (public domain) Source: The 100 Greatest Advertisements 1852-1958: Who Wrote Them and What They Did by Julian Lewis Watkins (Mineola, NY: Dover 31 Publications, 1949) p. 1.  TO THE POINT 32  SOME EXAMPLES… https://www.theheadhunters.ca/blog/9-awesome-employer-branding-and-recruit ment-videos/ What are some key messages about the company? Which „promise“ does the company give to future employees? What kind of people do they want to attract? 3 3  EMPLOYER BRANDING STRATEGY  Concentration on the relevant channels Successful companies are identifying upfront the communication preferences of potential candidates and use the relevant channels that are seen/heard by the target group(s) - (e.g. Facebook for potential apprentices)  Communicate where opinions a built… Personal networks, publications in the press as particularly trustworthy sources to promote opinion.  Employees as brand ambassadors The employees of a company are the most credible ambassadors when we talkabout their employ 34  FROM EVP TO SPECIFIC MESSAGES EVP Strengths Evidence & Stories 35 Source: Trost, A. (2012). Talent Relationship Management FUNCTION OF EB FROM COMPANY PERSPECTIVE 1. Building Preferences: Employer brand creates unique selling point (EVP), leads the company out of anonymity and should lead to the strongest possible preference among the target group 2. Cost reduction: if persons whose personality and values fit in with the company apply 3. Retention: Employer brand increases employee identification with the company and increases loyalty (keyword fluctuation) 36 FUNCTION OF EB FROM CANDIDATE PERSPECTIVE 1. Orientation: Employer brand helps with info search, it provides bundled emotional & functional information 2. Trust: Choosing an employer can be risky - it often turns out only after entry whether the work environment meets the expectations. Employer brand stands for promise & creates trust 3. Identification: occurs when the values of the future/current employee match the values communicated by the company 37  ACTIVE- PASSIVE- AND NON-SEEKING CANDIDATES  Read job ads, visit career Active fairs, apply actively Seek er  Have a job, are open for new Passive Candidat opportunities, observe the es market but don‘t visit career fairs  Are not interested in a new Non- job opportunity by any Seeker means, are happy with their situation, new in their current position, close to retirement,... 3 8 Source: Trost, A. (2012). Talent Relationship  ACTIVE AND PASSIVE WAYS OF TALENT SOURCING Hig Guerilla h Recruiti Competiti ng ve Poach the Intelligen Recruite ce r Tribal Talent Recruiti Scouti ng ng Social Competitiven Communi ess ty Employ Recruitin ee g Referral s Executi Campus ve Search Recruiti Care ng er Networ Job Fairs ks Ad Lo w Lo Line Mgrs. Hig 3 w Engagement h 9 Source: Trost, A. (2012). Talent Relationship  CAMPUS RECRUITING Relationship Marketing Target Building Activities Universities Criteria definition, Building social Measures to get in prioritization of relationships to touch, evaluate universities/facult students, and retain ies and selection professors, with students with high faculties and level of talent and student motivation organizations Partnering between employer and target university 40 Source: Trost, A.,  CAMPUS RECRUITING ACTIVITIES Hig h Internshi These ps s Presentatio Schola ns r- Lectures ships Benefit Case- Study- Company * Inhous Workshop Sponsorsh e s ip Days Univers ity These Days s Award Poster s Low Lo Effort Hig w h 41 * Based on numbers of LABOUR MARKETS ARE NETWORKS Employees already know their next new hire even before hiring activities begin We tend to underestimate the power and volume of weak ties A-Player know A-Player On average 7 referrals lead to 3 hiring Referral programs are most suitable for difficult hiring In case of simple hiring referrals may lead to nepotism Employee (Potential) HR/ Recruiter Candidate Future Employee 42  EMPLOYEE REFERRAL PROGRAMS  Employees refer Recommend to potential ed Person candidates (friends, former Hirin colleagues etc.) Referr g al  Company gets in touch with Company Employee recommended person Bonu  Once the s recommended person gets hired the employee who 43 referred to him/her SOCIAL COMMUNITY RECRUITING 44  GUERILLA RECRUITING - EXAMPLES ► IKEA ► Pizza Digitale ► developer 45 DEFINITION AND PRIORITIZATION OF CURRENT HIRING SCENARIOS AND FUTURE DEMANDS LEAD TO DISTINCT Specialist Hiring Strategic Hiring lo w Difficult Mass Hiring Deman d Talen small t Availabili ty bi Simple Hiring g high lo Strategi hig w c h Relevanc 46 Source: Trost, A. Newe HR strategies between stability&agility, 2018  STRATEGIES FOR TALENT AQUISITION DEPENDING ON NEED/SCENARIO 47  CANDIDATE RETENTION ACTIVITIES C B A 1: Regular Conversation 1 with line Invitation torepresentatives Breakfast company with the events CEO Intensi Greeti Weekend ty ng - Job-Offers Soci cards worksho (Based ps al Holida on y The Medi candida Person a Jobs ses te al gifts potentia Access Compan Information about vacant l) 1 : to positions y N Newslett Intranet magazi er ne Priority (Relevance to Key-/Bottleneck functions) 48 Source: Trost, A. (2012). Talent Relationship  MEDIA CHANNELS N:N Facebo ok Internet-Forums, Communities Twitter Blogs Care YouTu Worksh er be op fairs Personal Career- Conversati Company- Website 1.0 1: on presentati Print 1 : 1 on N 49 Source: Trost, A. (2012). Talent Relationship Management  TALENT RELATIONSHIP MANAGEMENT Target Employe Active Candida Group e Value Sourci te Definiti Propositi ng Retentio on on n Positive Selection Candidat & e Recruitin Experien g ce 50 Source: Trost, A. (2012). Talent Relationship Management  CANDIDATE RETENTION ACTIVITIES Employee Company keeps Tale Formal Assessment relationship to nt former intern Pool Responsibility for a small project of Project Work relevance for the company/business function Transactional work on Regular Internship a daily basis in one or more business functions 51 Source: Trost, A. (2012). Talent Relationship  CANDIDATE RETENTION CYCLE Talent- Pool Nominati on Plannin Operati on g Job- Recruiti Offer ng 52 Source: Trost, A. (2012). Talent Relationship