Talent Neuron has developed a Workforce Planning Toolkit that define and address companies most critical talent needs based on business strategies and plans. It enables talent planning with the right skills at the right location in order to enable innovation and cost optimization.

1. Talking Talent and WFP
Zinnov LLC CONFIDENTIAL
August, 2013
This report is solely for the use of Zinnov and Zinnov Clients.
No part of it may be circulated, quoted, or reproduced for distribution from Zinnov
Management Consulting.

2. 2Talent Neuron
Talking Talent and WFP:
Setting the Stage
Setting the Stage1
Note: 1. An Oracle White Paper January 2013; Oracle Human Capital Management (HCM) Cloud Service - Simplify People Management
and Build the Best Talent 2. PwC 15th Annual CEO Survey 2012
Talent management is the #1 issue for CEOs who want to create a high-performance
culture1
25% of CEOs were unable to pursue a market opportunity or have had to cancel
or delay a strategic initiative because of talent2
One third of CEOs are concerned that skills shortages impacted their company’s
ability to innovate effectively2
Two thirds of CEOs are looking for data, analyses and HR integration with business
planning to make and inform people investment decisions2
As a cornerstone of business strategy, CEOs are now
focusing their attention on talent as a result of the link
between talent, sustainability and growth

3. 3Talent Neuron
The Myth of Headcount Planning2
Source: Talent Neuron
Talking Talent and WFP:
The Myth of Headcount Planning
Actions guided by budget
instead of appropriateness
may meet short-term needs
but tend to have a negative
longer-term impact
Revenue and Brand
Customer Acquisition and
Retention
Employee Acquisition and
Retention
Employee
Effectiveness/Productivity
Management
Effectiveness/Productivity

4. 4Talent Neuron
The Myth of Headcount Planning2
Source: Talent Neuron
Talking Talent and WFP:
The Myth of Headcount Planning
Requisition process governs talent acquisition activities
Positions downgraded and vacancies filled by cost
consideration instead of skills
Reductions in force managed with compliance drivers
Manager/employee ratios established based on
benchmarking, not ‘best fit’
Reengineering/reorganization accelerated but
technology investments postponed
Outsourcing adopted without full consideration and
understanding of productivity impact and internal
management requirements

5. 5Talent Neuron
Tangible and Intangible Benefits of WFP3
Talking Talent and WFP:
Workforce Planning is the ‘people’ piece of Strategic Business Planning
Identify Critical Job Families
• WFP identifies the critical job families/roles that are needed to sustain the
organization and meet its growth objectives, and then creates talent action
plans that mitigate talent gaps
Right People with Right Skills
• WFP provides a roadmap of short, medium and long-term actions that ensures
the Right People with the Right Skills at the Right time with the Right Cost in the
Right Locations
Minimize Cost
• Minimizes costs associated with bad hires (impetuous/mismatched skills), time
to fill, cost of vacancies, and compensation programs designed for retention and
internal equity
Take Control of Future
• WFP Uses internal and external data to anticipate future talent needs, labor
costs, and labor arbitrage opportunities
Increase Productivity
• Maximizes commitment and resources based on internal v external talent
activities

6. 6Talent Neuron
Failure to Plan v WFP4
Talking Talent and WFP:
Failure to Plan v WFP
Failure to plan
Estimated
Cost by Job
Family
Probability
(%)
Cost to
Company
Direct Costs
Recruiting costs - agency, travel, background checks, etc
Replacement costs- base pay, sign-on bonus, annual bonus, equity,
benefits
Overtime for current employees, including time-off
Temporary/contractors
Retention programs
Internal equity adjustments
Indirect Costs
Productivity loss due to vacancies
Ramp-up for new hire
Lost knowledge and/or knowledge transfer challenge
Management time for recruitment process

7. 7Talent Neuron
Failure to Plan v WFP4
Talking Talent and WFP:
Failure to Plan v WFP
Failure to plan
Estimated
Cost by Job
Family
Probability
(%)
Cost
to
Company
Management time to train and
supervise new hire
Management opportunity costs for
filling in vacant position activities
Increased turnover
Developmental programs (mentoring,
etc)
Total Cost- Failure to Plan

8. 8Talent Neuron
Failure to Plan v WFP4
Talking Talent and WFP:
Failure to Plan v WFP
WFP
Estimated
Cost by Job
Family
Probability
(%)
Cost to
Company
Direct Costs
Talent Neuron
Talent Action Plan direct costs
Indirect Costs
Project Manager Time
Executive Time
HR/Business Unit action plan development
(prep time)
Talent Action Plan indirect costs
WFP- Total Cost
Savings to the Organization: WFP v Failure to
Plan

9. 9Talent Neuron
The Cost of Failure to Plan5
# of Vacancies x
Revenue/Employ
ee
= Lost Revenue
# of Vacancies x EBITA/Employee = Lost Profit
Bad hires as a % of
terminations
x 2.5 x base salary = Lost Profit
Top Performers (Productivity
Gains)
x 2.2 x base salary = Lost Profit
Talking Talent and WFP:
The Cost of Failure to Plan (other metrics)
Bottom Line of Failure to Plan
The number one reason almost 50% of companies made what
turned out to be a bad hire was because they needed to fill the
job quickly
National Business Research Institute (NBRI), August 2013

10. THANK YOU
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