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ƒAlignTalentModelswithProfitModelsƒMercerInformationProductsHelptoRewardYourSegmentedTalentƒBreakOutSession–DrivingTop-lineGrowththroughStrategicPartnershipwithSales–CreatingCompetitiveAdvantageinBenefits–EffectiveRetentionTool:WealthSavingsBenefit–MoreThanTalentAlignTalentModelswithProfitModels3MercerHRstrategicapproach–TalentSegmentation4MercerHowprofithappens?Wheredowemakeprofit?Wheredowemakeprofit?Whatdrivesprofitimprovement?Whatdrivesprofitimprovement?Whatprofitmodelsdoweoperatetoday?Whatprofitmodelsdoweoperatetoday?Whatprofitmodelswillweoperateinthefuture?Whatprofitmodelswillweoperateinthefuture?5MercerMostcompaniesoperateseveralprofitmodelsKeyAssetOtherFormsProfitMultiplierModelBaseProductFollow-onProducts/ServicesAdd-onProduct/ServicesProfitProfit0TimeCustomerSolutionsProfitPriceCost$/UnitPost-LaunchQ2Q4Q6Q8Q10InnovationLedProfitBrandProfitMarketPricePrice/UnitBrandPriceSwitchboardProfitBuyersSellers6MercerTalentsegmentationmeanstodifferentiatetalentmanagementpracticestomeettherequirementsof:ƒSpecificprofitmodelsƒEmployeeneedsƒExternaltalentmarkets……tooptimizebusinessperformance7MercerEnergyCoisaverticallyintegratedoilandgascompanywithdifferentprofitmodelsacrossthevaluechainExploration&ProductionEnergyCoRefining&MarketingRetailProjectTypeRevenueCost$/ProjectBlockbusterProfitRevenueCost$/UnitUtilizationCycleProfitRevenueCost$/UnitSizeofTransactionTransactionScaleProfitLocalMarketShare0LocalLeadershipProfit8MercerEnergyCousedasingletalentmodelExploration&ProductionEnergyCoRefining&MarketingRetailTalentmodelƒOne-size-fits-allacrossthewholevaluechainƒCareer-focusedƒLittlerewarddifferentiationforperformanceƒEliteglobalemploymentbrand9MercerTalentpracticescentredaround“one-size-fits-all”PaywiththemarketPayabovemarketforhotskillsRetailGlobalorganizationCentralizeddecision-makingEmphasisonlearninganddevelopmentNon-differentiatedincentiveawardsCompanyprofitmeasurementCareer-basedrewardsLong-termfocusedBuildtalentEnterprise10MercerEnergyCohadanumberofcriticalquestionsƒIsthereabusinesscasetoallowforsegmentationofrewardsandtalentstrategies?ƒWhatpracticesshouldbeenterprise-wideversusspecifictothebusinessunits?ƒWhataretherisksofpursuingsegmentationoftalentstrategies?11MercerDifferentiationbetweenglobalorganization&retailLocal,regionalGlobalGeographicperspectiveMulti-sitecomplexityEconomiesofscaleOrganizationalstructureCompetitivePremiumBusinessbrandCustomers/costProducts/investmentsFocusLowmarginHighmarginProfitabilityHighlycompetitiveOligopolisticCompetitivenessShort-termLong-termTimehorizonHumancapitalHardassetsCapitalintensityRetailGlobalOrganizationCharacteristic12MercerEnergyCorequiredasegmentedapproachLittleemphasisonlearninganddevelopmentEmphasisonlearninganddevelopmentEntrepreneurialdecision-makingCentralizeddecision-makingDifferentiatedawardsNon-differentiatedawardsLocalfinancialandcustomersatisfactionmeasuresCompanyprofitandEH&SmeasuresSpotrewardsCareer-basedrewardsBuytalentBuildtalentPaywiththemarketPayabovemarketforhotskillsRetailGlobalorganization13MercerIt’salwaysaquestionaboutone-companyapproachorsegmentationapproachOne-companyapproachSegmentationapproach14MercerThekeyistofindtherightbalancebetweenone-companyandsegment-specificpracticesƒPortfolio-drivenenterpriseƒDifferentrequirementsintalentqualityandmixƒDifferentresponseneededtodifferentbusiness,legal,culturalandmarketrealitiesgloballyƒUnevenresponsetoemploymentbrandƒNeedforquickadaptationto“local”realitiesFactorsfavouringsegmentationƒ“Synergy-driven”enterpriseƒLeveragingthroughscaleƒNeedforcross-businessmobilitytobroadenexperienceandleadersƒStrongemploymentbrand(s)ƒNeedtosustaincohesivecultureƒRelianceonteam-basedworkƒLowtoleranceforcomplexityFactorsfavouring“one-company”approach15MercerIt’sallabouttotalrewardsstrategyApproachtotalentpracticesSegmentedSegmentedOneOne--companycompanyHighHighdemanddemandforfortalenttalentSegmentedSegmentedSmartSmartinvestmentsinvestmentsAlignmentandSegmentation?16MercerMethodologyofcreatingarightcompensationstrategyTheprocess17Mercer„Businessstrategy„Humancapitalstrategy„Capabilities,behaviors,andactions„Workforcesegmentation„Preferencesandvalues„Connectiontobusinesssuccess„Businessandeconomicfactors„Marketpositions„Affordability„Sustainability„ROITOTALREWARDSTHATWORK™TOTALREWARDSTHATWORK™EMPLOYERPERSPECTIVE:Doourrewardsprogramsfosterknowledge,competenciesandbehaviorsthatarenecessaryforbusinesssuccess?EMPLOYEEPERSPECTIVE:AremyrewardspartofacompellingvaluepropositionthatIunderstandandsupport?.COSTPERSPECTIVE:Arerewardscostsaffordableandsustainable?Dotheycrowdoutotherprofitableinvestments?MethodologyofcreatingarightcompensationstrategyThreecriticalperspectivesforrewards18MercerBrandimpactBusinessdesignCustomerselectionStrategiccontrolScopeOrganisationalperformancesystemValuecapture/ProfitmodelGeographicimpactGlobalvs.LocalfocusEmergingmarketRapidgrowthModerategrowthFlatmarketDecliningmarketValu

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