Talent2 has to work hard at keeping its Gen X, Gen Y and baby boomers all happy - and keen to stay. Its attrition rate is half the industry average.
| Entrepreneur |
John Rawlinson, Chief Executive Officer |
| Company |
Talent2 |
| Business type |
End-to-end human resource and talent management services, including outsourcing for transactional HR functions including recruitment, HR administration and payroll, learning, and outplacement |
| Employees |
1000 full-time; 500+ contractors |
| Head office |
Sydney, NSW |
| Contact details |
+61 2 9087 6222 |
Key Learning Points |
|
Staff structure
To keep good staff engaged and enthusiastic, it is important to provide them plenty of workplace options. An organisation should be interested in how well staff members get the job done, not when or where they do it.
Corporate responsibility
It pays to be a good corporate citizen. Many younger staff want to work for organisations that are about more than just money-making.
|
The Talent2 Story
Talent2 may be one of the newer kids on the human resources block but its founders Geoff Morgan and Andrew Banks have been around that block many times. Think Morgan and Banks. Talent2's chief executive, John Rawlinson (JR), says its brief corporate history also includes Concept Systems, a human resources IT business with twenty years on the clock. JR says: "We have a long history in human resources."
So far, so good. But why add a new brand to the already crowded HR services field? Rawlinson says it was because there was a gaping hole in the market that Talent2 has filled - Australia's first "end-to-end" HR business. That means it manages all aspects of human resources from recruitment to payroll and leave administration plus talent management and outcome-driven learning.
JR says: "There were business-process outsourcing companies that were starting to look at it like Unilever and IBM and there are companies focusing on outsourcing payroll but no company had all of it under the one umbrella."
The Challenge
Managing a multi-generational workforce of baby boomers, Gen Xs and Gen Ys.
The Solution
When Talent2 started in 2003 it filled its ranks with experienced older staff but as the business boomed the intake of younger workers also skyrocketed. Its workforce now includes a volatile mix of baby boomers (born between 1946-64), Gen Xs (1965-76) and Gen Ys (1977-94), which each bring their own stereotypical traits: the feckless, individual work butterflies of Gen Y; the self-obsessed, high-expectation baby boomers; or the laid-back, anti-authoritarian Gen Xs.
Each stereotype contains seeds of truth: Gen Ys have known nothing but the digital age; baby boomers came of age in the midst of post-war boom years. JR says: "We put them in those brackets but it is certainly a state of mind. They are people that have been influenced by the times they have grown up in."
Australia's low unemployment rate and competitive market for talented staff have forced Talent2 - just like other businesses - to work at hard a retaining good staff. And that has meant really understanding the different needs and motivations of its employees, whichever generation they represent.
JR says the first step in 2005 was to develop an Employer Value Proposition (EVP) that describes the company culture. The Talent2 EVP includes guidance about what it means to work at Talent2, such as:
- Empowering employees
- Not micro-managing
- High growth, allowing lots of career opportunities
- Employing talented passionate people
- Treating employees like individuals
The EVP has been developed by a team of employees from various sections and generations and is introduced to prospective employees in the interview stage. JR says: "It's interesting that none of the team ever suggest six weeks annual leave be built into the EVP. You'd expect them to think parochially, but they just want to build the right environment"
Talent2 has an EVP council comprised of representatives from each business unit. The council holds the company accountable to its promises to its employees. It reports to the executive leadership team on a quarterly basis and influences the internal development programs run by the company. Talent2's EVP provides guidance for all internal talent management programs and keeps them focused on making the company a great place to work.
Some of the main differences between the generations JR has noted include:
- Performance measurement: JR says Gens X and Y are keen to have their performance measured. "They don't mind having goals and targets to achieve as long as they can do it their own way. Many schools are setting study goals along those lines so they are entering the workforce with good preparation. Some baby boomers are a bit over stats."
- Working hours: Flexible working hours are important to all generations but for different reasons. JR says: "A lot of the younger ones binge-work - throwing themselves into a project and working around the clock until it's done then wanting a few days off afterwards."
Talent2 offers part-time, work-from-home and staggered working hours for employees. JR says: "We started with a lot of experienced parents returning to the workforce so we had those options in place."
- Forms of networking: Technological advances have enhanced opportunities for networking. Many businesses restrict employee access to popular online sites such as facebook.com and myspace.com but Talent2 trusts its employees to act responsibly. JR says: "We tell people to be prudent about what they put online but we don't monitor it. We've even revamped our intranet to include an internal social networking site. You can't stand in the way of progress."
- Social responsibility: Corporate social responsibility is a priority for younger employees. JR says: "People are now asking about the company's environment policy at the interview stage." Talent2 recently used The Andromeda Group to calculate the company's carbon footprint and is now implementing its suggestions to cut down on unnecessary air travel and reduce power usage.
Talent2 offers employees an annual charity day on which the company pays staff to work for a charity. JR says: "We use a cross-sectional group to develop our social responsibility charter. This is a way staff can work on something they feel passionately about."
The Result
Talent2's revenue has grown from $60.3 million in 2005 to $153.4 million in 2007. JR says: "Our business model is that we have transactional, fee-based parts of our business. When we take over a company's payroll, we take over for ten years and most of the time services will increase."
Talent2's annual staff turnover is steady at less than 15%. JR says: "In our industry staff turnover is typically 35-50%." But JR says Talent2 is working hard to retain a particular section of employees. "Attrition from our administration support people is too high. Some of the jobs are repetitious but we are asking these staff what is important to them and how we can make their job more stimulating."
Talent2 uses traditional job boards like seek.com.au and linkme.com.au with success and is investigating how to create a recruitment presence for a client in the 3D online virtual world, secondlife.com