Welcome to 3 Key Charts, a weekly department in which we explain the graphs, maps, tables and diagrams that you must understand to guard and grow your business. The diagrams and graphics displayed below could help you discover a new opportunity, alert you to an impending risk, or teach you how to be a better manager.
In this instalment, we look at the shortage of internal talent in Canadian companies, the CSR tactics that appeal to millennial employees, and Canadian M&A activity in 2015.
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No successors in sight
Where it’s from: “Talent Management: Accelerating Business Performance” by Right Management of the Manpower Group.
What it shows: The percentage of survey respondents by country who said they had a sufficient internal pool of candidates to fill critical openings within their organizations. Canada had the lowest reliance on internal candidates, at 7%. Globally, 13% named their internal leadership pipeline as the customary source to fill jobs from; a combination of internal development and external hiring was the most common strategy (73%). The survey’s respondents were 2,221 senior leaders and HR executives from 13 countries, with 175 Canadian respondents.
Why it matters: Promoting from within saves recruiting costs and ensures that your new manager or executive is familiar with the business from day one. But the survey’s results suggest that Canadian companies have very little bench strength when it comes time for a new leader to step up to the plate. An outside hire can help shake up a complacent workforce and bring in new ideas, but you should able to make that choice deliberately—not because there’s nobody within your organization who can fill the role. It might be time to invest in a career development program for your employees.
MORE BENCH STRENGTH: What it Takes to Build Internal Talent »
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Do the right thing
Where it’s from: “From Y to Z: A guide to the next generation of employees” by Randstad.
What it shows: The actions of companies that have the most positive impact on local communities according to millennials. Randstad and Ipsos Reid surveyed 1,200 respondents aged 1634.
Why it matters: Young people are stereotyped as idealistic do-gooders for a reason—82% of survey respondents wanted the companies they worked for to be socially responsible and make positive contributions to their communities. The focus on corporate impact was even more pronounced for younger millennials, with 87% of Generation Z (those born after 1995 per the survey) classing positive community impact as an important factor versus 79% of Generation Y (born 19811994). Attracting and retaining young workers is a major problem for many Canadian businesses, who struggle with the specific demands and expectations of millennial employees. To keep them satisfied, running a fundraiser (14%) or rewarding employees with time off or recognition when they perform community service (15%) might be worth your while. Fortunately, Randstad’s findings suggest you’re already taking care of the most important CSR requirement. With job creation (31%) twice as important as any other initiative, the very fact that you’re employing them and others will endear you to your young workers—if the salary you’re paying out hasn’t already.
MORE MILLENNIALS: Why Gen Y Hates the 9-to-5 »
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Buyers and sellers
Where it’s from: “Charting the course: The future of Canadian M&A in volatile markets” by Citibank Canada and MergerMarket.
What it shows: The regions from which respondents expected the most interest in Canadian merger and acquisition targets to come (light grey) and the regions in which Canadian companies would be most interested in searching for targets (dark grey). North America tops both categories (40% inbound, 30% outbound)—unsurprising, since the U.S. market is the first and last foreign market for many Canadian companies.
Why it matters: Many of Canada’s biggest companies have been hit hard by the plummeting price of oil. Resources have accounted for much of Canadian M&A activity in the past, so a decline in deals would seem likely. However, nearly half of respondents expected an increase in the volume of M&A activity in 2015 (40% “somewhat increase,” 6% “significantly increase”). And private businesses, including small- and medium-sized firms are expected to be a top driver of M&A growth. So this map may hold the key to finding a buyer for your company. Look beyond the U.S.—26% of respondents saw diversification-driven buyers emerging from the Asia-Pacific region. If you’re looking to make a purchase abroad, consider under-subscribed areas like South America (8%) or Africa (18%). Less expectation and interest might just mean better prices.
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What conclusions do you draw from these charts? Let us know using the comments section below.