Free Deloitte and KPMG: The War for Talent Case Study Solution | Assignment Help

Harvard Case - Deloitte and KPMG: The War for Talent

"Deloitte and KPMG: The War for Talent" Harvard business case study is written by Sanjeev Prashar, Amitabh Deo Kodwani, Mukesh Kumar. It deals with the challenges in the field of Organizational Behavior. The case study is 9 page(s) long and it was first published on : Jun 28, 2017

At Fern Fort University, we recommend that both Deloitte and KPMG adopt a multifaceted approach to address the fierce competition for talent. This approach should prioritize building a strong employer brand, fostering a culture of innovation and inclusion, and implementing robust talent management strategies. By focusing on these key areas, both firms can attract and retain top talent, ensuring their continued success in the competitive consulting landscape.

2. Background

This case study explores the intense competition for talent between two leading professional services firms, Deloitte and KPMG. Both firms are facing a challenging environment characterized by a tight labor market, increased demand for specialized skills, and a growing emphasis on diversity and inclusion. The case highlights the critical role of attracting and retaining top talent in achieving long-term success.

The main protagonists of this case are the leadership teams of Deloitte and KPMG, who are tasked with developing and implementing strategies to navigate the talent war. They must consider various factors, including their respective organizational cultures, employee value propositions, and competitive landscapes, to effectively attract and retain top talent.

3. Analysis of the Case Study

This case study can be analyzed using the following frameworks:

  • Organizational Culture: Both firms have distinct organizational cultures. Deloitte emphasizes a collaborative and entrepreneurial culture, while KPMG promotes a more traditional and hierarchical structure. Understanding these cultural differences is crucial for attracting and retaining talent who align with their respective values.
  • Talent Management: Both firms need to refine their talent management strategies to address the evolving needs of the workforce. This includes focusing on employee development, performance management, and career planning initiatives.
  • Employer Branding: Both firms must build strong employer brands that resonate with top talent. This requires communicating their unique value propositions, highlighting their commitment to diversity and inclusion, and showcasing their commitment to employee well-being.
  • Leadership Styles: The leadership styles of both firms play a crucial role in attracting and retaining talent. Leaders must be adaptable, inclusive, and focused on empowering their teams.
  • Innovation: Both firms need to foster a culture of innovation to remain competitive. This involves encouraging creativity, embracing new technologies, and providing opportunities for employees to contribute to new ideas.

4. Recommendations

For both Deloitte and KPMG:

  • Develop a compelling employer brand: Focus on showcasing the unique value proposition of each firm, highlighting their commitment to employee development, diversity, and inclusion, and emphasizing their positive work environment.
  • Invest in employee development: Offer robust training programs, mentorship opportunities, and career development initiatives to enhance employee skills and prepare them for future roles.
  • Embrace a culture of innovation: Create a collaborative environment that encourages creativity, experimentation, and the adoption of new technologies.
  • Prioritize diversity and inclusion: Implement programs and initiatives to attract and retain a diverse workforce, fostering a culture of respect and inclusivity.
  • Strengthen talent management strategies: Implement comprehensive talent management programs that address employee performance, engagement, and retention.
  • Invest in leadership development: Train leaders on effective communication, delegation, and coaching skills to build a strong and supportive leadership team.
  • Leverage technology and analytics: Utilize data and analytics to understand talent needs, track employee performance, and identify areas for improvement.

Specific Recommendations for Deloitte:

  • Continue to foster its entrepreneurial culture: Encourage risk-taking, innovation, and collaboration among employees.
  • Strengthen its focus on work-life balance: Offer flexible work arrangements and support programs to help employees manage their work and personal lives.

Specific Recommendations for KPMG:

  • Embrace a more agile and collaborative culture: Encourage open communication, cross-functional teamwork, and a more flexible approach to work.
  • Develop a stronger focus on employee engagement: Implement initiatives to foster employee engagement, such as recognition programs, social events, and opportunities for professional development.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with the core competencies and mission of both firms, focusing on attracting and retaining top talent to drive long-term success.
  • External Customers and Internal Clients: The recommendations prioritize the needs of both external clients and internal employees by fostering a positive work environment and delivering exceptional service.
  • Competitors: The recommendations consider the competitive landscape and the need to differentiate both firms in the talent market.
  • Attractiveness: The recommendations are designed to enhance the attractiveness of both firms to top talent by offering competitive compensation, benefits, and development opportunities.

6. Conclusion

By implementing these recommendations, Deloitte and KPMG can effectively address the fierce competition for talent and ensure their continued success in the consulting industry. By focusing on building a strong employer brand, fostering a culture of innovation and inclusion, and implementing robust talent management strategies, both firms can attract and retain top talent, ultimately achieving their strategic goals.

7. Discussion

Alternatives:

  • Focusing solely on compensation: While competitive compensation is important, it is not enough to attract and retain top talent. Other factors such as career development, work-life balance, and company culture are equally important.
  • Ignoring the importance of diversity and inclusion: Failing to prioritize diversity and inclusion can limit the talent pool and create a less welcoming work environment.

Risks and Key Assumptions:

  • Economic downturn: A significant economic downturn could impact the demand for consulting services and affect the ability of both firms to attract and retain top talent.
  • Technological advancements: Rapid technological advancements could create new skill gaps and necessitate a constant focus on employee development.
  • Changing employee expectations: Employee expectations are constantly evolving, and both firms must adapt their strategies to meet these changing needs.

8. Next Steps

  • Develop a comprehensive talent strategy: Both firms should develop a detailed talent strategy that outlines their goals, objectives, and key initiatives.
  • Implement a pilot program: Pilot programs can be used to test and refine new initiatives before rolling them out to the entire organization.
  • Monitor and evaluate progress: Regularly monitor and evaluate the effectiveness of implemented initiatives to ensure they are achieving the desired results.
  • Communicate effectively: Open and transparent communication with employees is crucial to ensure buy-in and support for new initiatives.

By taking these steps, Deloitte and KPMG can effectively address the challenges of the talent war and position themselves for continued success in the competitive consulting landscape.

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Case Description

In 2016, India witnessed an intense war for talent acquisition in consulting when Deloitte Touche Tohmatsu India LLP (Deloitte) poached 20 partners and their teams-around 300 people in total-from KPMG India (KPMG). Deloitte offered a higher compensation to attract KPMG executives and lured partners with a salary jump in proportion to the number of team members they could bring from KPMG. The rivalry between the firms was fuelled by their desire to challenge Ernst & Young Global Limited, the market leader, which had 125 partners in its advisory vertical. This was the biggest poaching attempt in the industry since 2011 and the third time in the span of a year that KPMG partners had quit to join rival companies. For KPMG, it was a big blow, as the company lost many partners from the vertical that was leading its growth globally. KPMG management was now confronted with the challenge of defending against any such future poaching attempts by its competitors and retaining existing employees. The firm needed to engage its existing employees and boost their motivation to avoid further damage.

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