Workforce Planning Mastering the Art of the 4

Workforce Planning Mastering the Art of the 4 B’s Build, Buy, Borrow and Boost Alan Lee Director of Executive Search Talent Connections, LLC Ranked #86 on the 2007 Inc. 500 Magazine list of the Fastest Growing Private Companies Making the Connections to Recruit Top Talent

The Critical Lingo for Recruiting – the 4 B’s of Workforce Planning Build How well do you draft, sign and develop talent? The Atlanta Braves, 14 consecutive division titles 1991 -2005 Buy How strong are you in the free agent market? The New York Yankees, 4 World Championships in last 10 years Borrow How quickly and effectively do you supplement your team? The Chicago Bulls 1991 -93, the 1 st “three-peat” in 27 yrs Boost How aware and humble are you - knowing you need outside help? Tiger Woods, now 31 years of age and with the early guidance of Butch Harmon, has had an unprecedented career since becoming a professional golfer in the late summer of 1996. He has won 81 tournaments, 61 of those on the PGA TOUR, including the 1997, 2001, 2002 and 2005 Masters Tournaments, 1999, 2000, 2006 and 2007 PGA Championships, 2000 and 2002 U. S. Open Championships, and 2000, 2005 and 2006 British Open Championships. With his second Masters victory in 2001, Tiger became the first ever to hold all four professional major championships at the same time. He is the career victories leader among active players on the PGA TOUR, and is the career money list leader.

The Critical Lingo for Recruiting – the 4 B’s of Workforce Planning Build Ø Core positions that drive your company to success now and in coming years Ø Typically these hires lead to Leadership and Executive roles Ø Ideally, these roles are filled by corporate recruiting with a keen eye on internal sourcing Ø These roles lend themselves to dedicated internships and a comprehensive college/campus program Ø These roles permit premium spend on sourcing, recruiting, training, compensation and leadership development Ø HR and Management collaboration is critical Ø High retention levels are imperative for these roles

The Critical Lingo for Recruiting – the 4 B’s of Workforce Planning Buy Ø These are critical execution roles this year that are NOT in the core Ø These positions may be priced at premium, but likely at market or discount if you can get it Ø Accept a 2 -3 year commitment with replacement…. mercenaries OK! Ø Be careful in over-dedicating internal recruiting resources for these roles Ø Avoid investing in Training and Development here Ø High retention is less critical Ø Identifying and fostering relationships with capable search partners (contingency, contained, retained) is critical to quickly supplement recruiting team

The Critical Lingo for Recruiting – the 4 B’s of Workforce Planning Borrow Ø These are temps, contractors, contract-perm placements for ST impact and, possibly, permanent (LT) “buy” impact Ø If feasible, use full hiring process (assessments, background checks, drug test, etc. ) to mitigate risks Ø These are NOT on the core and need to be priced efficiently and accurately – drive for a discount if you can get it Ø Only in special conditions, do these roles need to be filled with internal recruiting resources Ø Identifying and fostering relationships with capable staffing partners is critical to quickly supplement recruiting team

The Critical Lingo for Recruiting – the 4 B’s of Workforce Planning Boost Options: Ø Recruiting Process Outsourcing (RPO) due to need for immediate, ST, or project impact Ø Recruiting Consulting – ATS selection, process mapping, recruiter training, policy development, interviewer training, etc. Ø Recruiting Audit – an expert partner to benchmark your people, process, policies and technology Ø Talent Assessment Tools – vendors deliver you the development, implementation, user training and testing (predictive validity and adverse impact) Ø Critical and strategic competency needed and NOT delivered by HR leadership (i. e. workforce planning, succession planning, leadership inventory, leadership acceleration/development

Workforce Planning - The 4 B’s to Build The Optimal Organization Build, Buy, Borrow & Boost Talent Strategy Executive • Strategic • Efficient Leadership • Aligned Buy BUILD Boost • Tactical Your “SEAT” at the table comes by adding value to the PEOPLE event in your business both strategically and tactically Managers/Specialists Buy BUILD Borrow Boost Entry Level Roles BUY BUILD BORROW BOOST If you are NOT relevant and willing, you will NOT be at the table…. you will be asked to “go execute tactics”

Workforce Planning – The Typical, Non-Optimal Org. “Butts in seats” mentality Your impact is centered on your ability to react and execute on client requests for talent…you never have the data to jump ahead of the curve and BE STRATGEIC Executive • Reactive vs. Proactive • Driven by Hiring Mgrs. orders for talent fast Leadership • Not aligned to a business strategy Buy BUY/ build Boost Managers/Specialists Buy BUY/build Borrow Boost Entry Level Roles BUY BORROW/ build BOOST Again, if you are NOT relevant and competent, you will NOT be at the table…. you will be asked to “shut up and go color”

The TRUE ROI of Recruiting work 100% Talent Acquisition Capacity % 75% 50% 25% Workforce Planning Expertise HR/Talent Acquisition Work WPE x S/SE = Talent Acquisition Capacity %

Workforce Planning Imperatives. . . Plan right to execute right Questions to ask Executives and other Hiring Leaders: q Are you ready to align our People Strategy with our Business Strategy? q Let’s start at the goal line and drive back – define success then work back to it – “what will it take to achieve X? ” q What talent makes the most impact, least impact now, next year, etc. ? q What talent is permanent vs. ST? q What do you see as our core career path? Why? q What talent is at the core for building the future leadership? q What talent is off of core, but necessary for execution now, next year, etc. ? q What will talent cost? What are premium, par, discount segments and where do we spend our limited funds? q Are our resources aligned to deliver on the most critical hires, do we even have a priority hierarchy for sourcing and staffing? If not, let’s do it…I’ll help. Outputs: q q Deliver a comprehensive Workforce Plan –current year, next year Align HR resources (specifically recruiting resources) to highest priority associate segments Get everyone on the same page and keep them there – document the plan! Measure ALL results against the plan…. regularly and spontaneously OK, but my company is different, you don’t understand?

Advance this capability and set the stage to WIN the War for Talent Planning Modes: Advanced Company: • Business Planning is connected to Human Capital Planning (same Business Leaders engaged) • EVP HR, Recruiting Leader and other HR leaders facilitate routine and drive results • Executive Planning –Leadership Talent Development Committee’s exist (TDC’s) • LOB Planning – Functional TDC’s aligned with Line TDC’s • HR with CEO drives accountability to ensure progress/success in concert with Business Planning • Success depends on talent acquisition, retention and management expertise Where is your company today and where do you want to be SOON?

Intermediate Company: • Strategic relationship with Executives exists, but has not been leveraged • Need for methodology infusion including data, process, tools, etc. for HR Exec or Recruiting Leader • Engagement exists in the need to improve, but willingness/investment in following quality process is inconsistent • Success today depends on Employment Brand and/or Executive expertise, but it is NOT scalable or predictable Where is your company today and where do you want to be SOON?

Beginner Company: • Need to partner and bring strategic process to Executives, but they are too busy or apathetic • 100% reactive recruiting with moderate to poor results, but it could be so much better • Retention issues and Quality hiring inadequacies prevail, yet the company has great potential • Conviction from HR leaders that People Strategy is “off mark” from Business Strategy, but the conversation is not happening…. either a leadership issue or not high on the priority list of critical opportunities • Immediate opportunity to infuse 4 B’s into talent discussion to change talent paradigm…. act now or pay later! • Success depends on talent acquisition, retention and management expertise • Underestimated savvy and competence of the desired candidate exists and must be fixed ASAP • There exists a multitude of “low hanging fruit” for an immediate BOOST • Everyone knows talent is the key to the future, but it is not talked about strategically and tactically Where is your company today and where do you want to be SOON?

OK, let’s share a REAL example • • • Need to retain talent Minimal HR dollars to invest on highest leverage gains Major need to identify leaders Enormous task to accurately develop and retain leaders Compensation strategy needs to match talent acquisition and development strategy Must sustain performance standards Must maintain cultural drivers Crisis is…. get efficient (CPH, Days to Fill) ASAP Sober realization that it’s all about TALENT Hard core “cost vs. value” discussions with every Executive leader working with current budget So, you are in charge of “talent”…. what do you do?

Workforce Planning - The 4 B’s to Build The Optimal Organization Build, Buy, Borrow & Boost Talent Strategy Executive • Strategic • Efficient Leadership • Aligned Buy • Tactical BUILD Boost Your “SEAT” at the table comes by adding value to the PEOPLE event in your business both strategically and tactically Managers/Specialists Buy BUILD Borrow Boost Entry Level Roles BUY BUILD BORROW BOOST Consulting Guide for Recruiting Managers

BASIC Workforce Planning- shift to Build Initial Forecast from the Green/Red Analysis Department Headcount Buy/borrow Green Jobs BUILD Projected Attrition % 2006 College or Entry Slots Red Jobs Sales 350 120 23% 53 Operations 80 30 50 25% 13 Marketing 71 21 50 20% 10 Finance & Legal 61 25 36 15% 5 IT 45 35 10 39% 4 HR 15 3 12 15% 2 TOTAL 622 234 388 24% 87 +++This model is also effective in downsizing situations

Outcomes in a Robust Build Strategy The Value Proposition ü Improved ROI from “Draft and Free Agent mix” vs. “Free Agent only” mix with focused investment in training and development ü Further leverage Training/Development core competency ü The Employment Brand is naturally positioned to integrate high quality college graduates and entry level talent in all markets Focused compensation spend for the highest LT ROI ü Increased internal promotions, morale and retention ü Improved Associate Satisfaction, retention and productivity ü Highly motivated and engaged recruiting team operating with a clear focus and increased credibility with clients ü Increased career progression within functions and across all departments towards leadership bench/depth So, how does the recruiting work change?

Recruiting Before Typical, “Free Agent” Recruiting

Recruiting After Robust Build Strategy executed fully

Workforce Planning Mastering the Art of the 4 B’s • Discussion • Q&A • Presentation via email Alan Lee Director, Executive Search Talent Connections, LLC Alan. Lee@talentconnections. net www. talentconnections. net 175 Inverness Approach Roswell, GA 30075 T 770 -552 -1550 EXT. 213 F 770 -992 -3521 Making the Connections to Recruit Top Talent www. For. Contract. Recruiters. com Copyright 2007 Talent Connections, LLC All Rights Reserved