1. Attracting, Retaining and Engaging Technology Talent Presented by: Rena Rasch & Melissa Tessendorf June 14, 2012

2. Rena Rasch, Research ManagerKenexa High Performance Institute Rena Rasch is the manager of the Kenexa High Performance Institutes Minneapolis team, which she joined in 2008. She also manages the Institutes WorkTrends study, an annual employee opinion survey of over 35,000 workers in 29 countries around the world. Rena strives to provide empirically-based solutions to HR practitioners biggest questions. Topics of interest include employee engagement, generational differences in the workplace, trust in leadership, work-life balance and work stress, unionization intent, why employees join and leave their organizations, and many others. Rena will receive her Ph.D. in I/O psychology from the University of Minnesota in the summer of 2012.

3. Melissa Tessendorf, ClientRelationship Director, KenexaMelissa supports the Competency Solutions and Executive Compensationbusinesses and contributes to the organizations thought leadership activityand strategic direction. Prior to joining Kenexa, Melissa was Managing Directorof Professional Services Operations with Salary.com supporting the TalentManagement, Human Capital Management Consulting and Payroll groups.Melissa began her career in compensation as a consultant at BankBoston working with theWholesale Bank and Debt Capital Markets businesses. Continuing to build expertise inExecutive Compensation, she joined W.T. Haigh & Company, a boutique executivecompensation and human resources consulting firm in Cambridge, MA. As one of the firmsConsultants, Melissa was responsible for client relationships, design and implementation ofexecutive compensation and broader human resources plans and programs.

4. Agenda WorkTrends survey data and questions How do we attract US technology employees? How do we engage them? How do we retain them? Addressing Drivers with Competencies Competencies The Job Career Advancement Training and Development SummaryCopyright Kenexa High Performance Institute, 2012

5. WorkTrendsTM Survey Administered annually or bi-annually since 1984 In 2012 taken online by 33,500 full-time workers across 29 countries Currently includes over 200 questions about workplace issues, employee attitudes, management behaviors, and organizational practices Diverse sample of the working population across organizations, industries, job types, ages, gender, etc.Copyright Kenexa High Performance Institute, 2012

6. What are these US technology employees like? Technical jobs (e.g., medical technician, computer programmer, engineering technician) N = 1,210 57% in an IT-related department or role 46% have a bachelors degree, 19% have a graduate/professional degree All major industries represented, biggest industries are: Health Care Services (14%) Electronics and Computer Manufacturing (11%)Copyright Kenexa High Performance Institute, 2012

7. What questions did we ask them? Why did you join your current organization? (distribute 100 percentage points to these categories) Development and growth opportunities The job itself, including the type of work Id be doing, meaningfulness of my work, and work/life balance Organizations values and reputation Compensation, benefits and recognition The people I work with; my boss, coworkers and leaders Other work-related reasons Other personal reasons, such as spouse relocationCopyright Kenexa High Performance Institute, 2012

8. What questions did we ask them? Employee Engagement Pride - I am proud to tell people I work for my company. Satisfaction - Overall, I am extremely satisfied with my company as a place to work. Advocacy - I would gladly refer a good friend or family member to my company for employment. Commitment - I rarely think about looking for a new job with another company. Turnover Intentions - I am seriously considering leaving my organization within the next 12 months.Copyright Kenexa High Performance Institute, 2012

9. What questions did we ask them? We also asked about 22 other topics Career Advancement Process Formalization Compensation Quality Emphasis Control Over Work Recognition Cooperation Safe Work Environment CSR and Business Ethics Senior Leader Effectiveness Customer Orientation Training and Development Direct Manager Effectiveness Transparent Communication Diversity Work Life Balance Goals and Feedback Work Processes and Equipment Innovative Climate Work Stress Job Security WorkloadCopyright Kenexa High Performance Institute, 2012

10. How do we attract US technology employees? Why Join? 5% The job 6% 8% 30% Compensation Development 10% The Organization The People 15% Other Work-Related 26% Other PersonalCopyright Kenexa High Performance Institute, 2012

11. How do US technology employees compare to others? 35% 30% 25% The job Compensation Why Join? 20% Development The Organization 15% The People 10% Other Work-Related Other Personal 5% 0% Technical Clerical Sales ServiceCopyright Kenexa High Performance Institute, 2012

12. How do US technology employees differ by organizational level? 35% 30% 25% The job Compensation Why Join? 20% Development The Organization 15% Other work-related 10% The people Other personal 5% 0% Individual Supervisor ManagerCopyright Kenexa High Performance Institute, 2012

13. How do technology employees differ by market type? 35% 30% 25% The Job Compensation Why Join? 20% Development The Organization 15% Other work-related 10% The People Other personal 5% 0% Established Emerging Note: Established markets are the G7 (US, Canada, UK, France, Germany, Italy, and Japan) and emerging markets are the BRIC countries (Brazil, Russia, India, and China).Copyright Kenexa High Performance Institute, 2012

14. How do US technology employees differ by generation? 35% 30% 25% The Job Compensation Why Join? 20% Development Other Work-Related 15% The Organization 10% The People Other Personal 5% 0% Boomers Gen Xers Millennials Note: Baby boomers born between 1943 and 1960. Generation X born between 1961 and 1981. Millennials born 1982 and later.Copyright Kenexa High Performance Institute, 2012

15. Summary: How do we attract US technology employees? Why do they join? US technology employees joined their current organization primarily for the characteristics of the job and compensation, and to a lesser extent growth and development opportunities Compared to clerical and services workers, they put more emphasis on potential for growth and development Technology employees who are supervisors or managers place even more emphasis on growth and development Technology employees in emerging markets exhibit different profiles; more emphasis on pay and growth, less on the job Technology employees also vary by generation; Millennials place more emphasis on growth and developmentCopyright Kenexa High Performance Institute, 2012

16. How do we engage US technology employees? Career Advancement 8% Senior Leader Effectiveness 5% Recognition 4% Training and Development 4% Work Life Balance 4% CSR and Business Ethics 4% Compensation 3% Quality Emphasis 3% Unexplained 28% Explained 72% Job Security 3% Innovative Climate 3% Cooperation 3% Diversity 3% Transparent Communication 3% Customer Orientation 3% Safe Work Environment 3% Direct Manager Effectiveness 3% Work Stress 3% Workload 3% Work Processes and Equipment 2% Goals and Feedback 2% Control Over Work 2% Process Formalization 2%Copyright Kenexa High Performance Institute, 2012

17. How do US technology employees differ by organizational level? Driver Individual Supervisor Manager Career Advancement 10% 8% 6% Compensation 4% 3% 3% Control Over Work 2% 3% 2% Cooperation 3% 3% 4% CSR and Business Ethics 4% 3% 3% Customer Orientation 3% 4% 2% Direct Manager Effectiveness 2% 3% 3% Diversity 3% 3% 3% Goals and Feedback 2% 2% 3% Innovative Climate 3% 5% 5% Job Security 3% 3% 5% Process Formalization 1% 1% 3% Quality Emphasis 3% 3% 4% Recognition 4% 7% 5% Safe Work Environment 3% 3% 3% Senior Leader Effectiveness 6% 3% 6% Training and Development 4% 5% 4% Transparent Communication 3% 3% 4% Work Life Balance 3% 4% 4% Work Processes and Equipment 2% 2% 2% Work Stress 2% 3% 3% Workload 2% 3% 3% Unexplained 29% 22% 21%Copyright Kenexa High Performance Institute, 2012

18. How do technology employees differ by market type? Career Advancement 7% Career Advancement 8% Compensation 4% Compensation 5% Established Control Over Work 2% Emerging Cooperation 2% Control Over Work 2% Markets Markets Cooperation 2% CSR and Business Ethics 5% CSR and Business Ethics 3% Customer Orientation 3% Customer Orientation 3% Direct Manager Effectiveness 2% Direct Manager Effectiveness 3% Diversity 3% Diversity 2% Goals and Feedback 2% Goals and Feedback 2% Innovative Climate 2% Innovative Climate 3% Job Security 4% Unexplained 28% Explained 72% Unexplained 30% Explained 70% Job Security 4% Process Formalization 2% Quality Emphasis 3% Process Formalization 2% Quality Emphasis 2% Recognition 4% Recognition 4% Safe Work Environment 3% Safe Work Environment 3% Senior Leader Effectiveness 5% Senior Leader Effectiveness 4% Training and Development 4% Training and Development 4% Transparent Communication 3% Transparent Communication 3% Work Life Balance 5% Work Life Balance 3% Work Processes and Equipment 2% Work Processes and Equipment 2% Work Stress 3% Work Stress 3% Workload 2% Workload 3%Copyright Kenexa High Performance Institute, 2012

19. Summary: How do we engage US technology employees? How do we engage them? Out of over 20 workplace factors, 6 are most important to US technology employees engagement: Having opportunities for career advancement (8%) Having trustworthy and effective senior leaders (5%) Receiving recognition for their work (4%) Receiving training needed to do their jobs (4%) Working for an organizational that supports the balance between personal and work goals (4%) Working for an organization that has a socially responsible and ethical business culture (4%) Importance varies slightly by level; career advancement is more important to individual contributors , senior leader effectiveness is less important to supervisors, recognition is more important to supervisors, and job security is more important to managers In emerging markets career advancement and compensation are more important, while in established markets WLB , CSR, and ethical business practices are more importantCopyright Kenexa High Performance Institute, 2012

20. How do we retain US technology employees? Career Advancement 7% Compensation 3% Work Life Balance 2% Senior Leader Effectiveness 2% Transparent Communication 2% Recognition 2% Unexplained 64% Explained 36% Work Stress 2% Job Security 2% Cooperation 2% Training and Development 2% Workload 1% CSR and Business Ethics 1% Diversity 1% Direct Manager Effectiveness 1% Innovative Climate 1% Work Processes and Equipment 1% Quality Emphasis 1% Goals and Feedback 1% Control Over Work 1% Safe Work Environment 1% Customer Orientation 1% Process Formalization 0%Copyright Kenexa High Performance Institute, 2012

21. How do US technology employees differ by organizational level? Driver Individual Supervisor Manager Career Advancement 10% 5% 4% Compensation 4% 2% 2% Control Over Work 1% 1% 1% Cooperation 2% 1% 2% CSR and Business Ethics 1% 1% 2% Customer Orientation 1% 2% 1% Direct Manager Effectiveness 2% 1% 1% Diversity 1% 1% 2% Goals and Feedback 1% 1% 1% Innovative Climate 1% 4% 2% Job Security 2% 3% 2% Process Formalization 0% 1% 1% Quality Emphasis 1% 1% 2% Recognition 2% 4% 2% Safe Work Environment 1% 1% 1% Senior Leader Effectiveness 2% 1% 4% Training and Development 2% 2% 1% Transparent Communication 2% 3% 4% Work Life Balance 3% 1% 2% Work Processes and Equipment 1% 1% 1% Work Stress 2% 1% 2% Workload 2% 1% 2% Unexplained 58% 64% 61%Copyright Kenexa High Performance Institute, 2012

22. How do technology employees differ by market type? Career Advancement 4% Career Advancement 4% Established Compensation 1% Emerging Control Over Work 1% Markets Cooperation 1% Markets Compensation 2% CSR and Business Ethics 3% Control Over Work 0% Customer Orientation 1% Cooperation 1% Direct Manager Effectiveness 1% CSR and Business Ethics 1% Customer Orientation 0% Diversity 1% Goals and Feedback 1% Direct Manager Effectiveness 2% Innovative Climate 1% Diversity 0% Goals and Feedback 0% Unexplained 69% Explained 31% Job Security 2% Innovative Climate 1% Unexplained 78% Explained 22% Process Formalization 1% Quality Emphasis 1% Job Security 2% Recognition 1% Safe Work Environment 1% Process Formalization 0% Quality Emphasis 1% Senior Leader Effectiveness 2% Recognition 2% Training and Development 2% Safe Work Environment 1% Transparent Communication 1% Senior Leader Effectiveness 1% Work Life Balance 2% Training and Development 1% Work Processes and Equipment 1% Transparent Communication 1% Work Stress 2% Work Life Balance 1% Work Processes and Equipment 0% Workload 1% Work Stress 0% Workload 1%Copyright Kenexa High Performance Institute, 2012

23. Summary: How do we retain US technology employees? The two most important reasons US technology employees leave are: Dead-end jobs (7%) Unfair and unclear compensation practices (3%) Organizational practices that engage employees also help keep them: opportunities for advancement Compensation practices both draws people in and runs them off Similar to employee engagement, career advancement is more important to individuals than supervisors or managers, senior leader effectiveness is less important to supervisors, recognition is more important to supervisors Similar to employee engagement, socially responsible and ethical business culture is more important in established marketsCopyright Kenexa High Performance Institute, 2012

24. Key Drivers Attraction Engagement Retention The Job Career Career Compensation Advancement Advancement Training & Fair/Transparent Development Compensation Fair/Transparent CompensationCopyright Kenexa High Performance Institute, 2012

25. Aligning with Drivers Leverage compensation market data to ensure that Fair/Transparent initial offers and ongoing rewards are competitive. Compensation Educate the organization on how compensation is determined and how to maximize it. Define your organizations jobs to ensure that The Job candidates who value the job itself understand how to be successful in the role. Career Define career paths for each job. Advancement Training & Build development plans for individual employees. DevelopmentCopyright Kenexa High Performance Institute, 2012

26. Fair/Transparent CompensationCopyright Kenexa, 2012

27. Compensation Fair Market-competitive, internally equitable and Transparent Understand how pay is determined Know how to maximize payCopyright Kenexa High Performance Institute, 2012

28. Compensation External competitiveness 3rd party benchmark salary data Industry-specific Internal equity Analyze actual pay against stated practices Compare pay for similarly situated employees Transparency Decide what and how much you want to communicate Spend your time on education, not data managementCopyright Kenexa High Performance Institute, 2012

29. CompetenciesCopyright Kenexa High Performance Institute, 2012

30. Competencies Reflects strategy and culture Core, Supports selection and hiring Leadership Reflects the leadership pipeline & Levels-Based Applicable to all roles Competencies Reflects functional strategy and key skills Functional Applies to all functional Competencies incumbents and candidates Reflects job/role specific knowledge and skills Technical and Domain Well suited for skills assessment, skills Specific Competencies inventory analysis and development Applies to incumbents and candidates by positionCopyright Kenexa, 2012

31. Competency Models/Job Profiles Core organizational competencies Innovation Innovation Leadership competencies Alignment Alignment Functional/Job Specific Competencies Development Research & Technology Information Accounting Purchasing & Payables Collections Finance & Credit & Business Business Analysis AnalysisCopyright Kenexa, 2012

32. The Common Denominator Adaptability Create a mix of Coaching & Innovation Mentoring innovation, adaptability, domain expertise High Tech Software in a candidate, a Development team or an organization Domain Project Expertise Management Technology ToolkitsCopyright Kenexa, 2012

33. Competencies in the Organization Performance Management Learning and Development Identify areas of development; Provide a clear understanding Align resources to business of what good looks like. strategy. Provide a basis for performance discussions and coaching and feedback. Recruitment Match candidates to Career Planning Provide a career planning Competencies positions based on competencies. framework that aligns to Understand | Measure | Improve Establish competency company objectives and requirements for new career aspirations. hires. Succession Resource Management Identify and prepare succession Assign employees to project teams candidates. based on critical requirements. Establish expectations for progression.Copyright Kenexa High Performance Institute, 2012

34. Competencies enable you to Better Define the Role Select the Right Person for the Right Role Facilitate Growth and Development Identify Career Opportunities Provided Open and Productive FeedbackCopyright Kenexa, 2012

35. The JobCopyright Kenexa, 2012

36. Defining the Role Engage Technology Professionals through: Information Clear Expectations Room to Move Acknowledging Contributions and Ideas Logic and Objectivity; remove subjectivity where possibleCopyright Kenexa, 2012

37. What Defines the Role Compensation Job Descriptions Job Specific Opportunity Roles and Responsibilities Competencies Pay for Key Tasks Performance Education Years of Experience RequirementsCopyright Kenexa, 2012

38. Defining Job Components Job XYZ Responsibilities 1. Create applications for sale to the open market. 2. xxxx 3. xxxx Job XYZ Responsibilities include Innovation Innovating new Level 3 analysis techniques to Communications create the highest Level 2 quality.. Xxxx Systems Analysis xxx Level 4 System Testing Level 2Copyright Kenexa, 2012

39. Communicating the Role Job Title Software Development Specialist, Master Leads the technical design and development of new or enhanced Description software products or systems. Architects new software products. Defines software platforms, components, and interfaces and selects development tools. Resp. 1 Designs complicated software products, modules, and routines. Selects and applies software development tools and methodologies Resp. 2 for projects. Counsels product and development planners on new and improved development technologies, methodologies and tools. Resp. 3 Provides technology direction for software development strategies and plans. Provides technical guidance to development teams. Resp. 4Copyright Kenexa, 2012

40. Beyond Responsibilites Competency Innovation Definition Develops new ideas and initiatives that improve the organizations performance. Suggests better ways of completing own work. Level 1: Demonstrates the ability to generate ideas organically or in a brainstorming session. Basic Understanding Supports innovations that are introduced by team leaders and managers. Seeks help to shape ideas into workable proposals for change. Seeks new or non-traditional ideas to improve effectiveness in own area of responsibility. Participates in efforts to develop ideas generated by team members. Level 2: Seeks applicable new ideas and approaches. Working Experience Surfaces ideas from other groups that have applicability to the team. Helps develop implementation plans for introducing innovations to the group. Encourages exploration of non-traditional ideas from team members. Seeks new or non-traditional ideas to improve effectiveness in teams area of responsibility. Level 3: Extensive Fosters a team culture that encourages exploration of non-traditional ideas. Experience Guides team members in the development and fulfillment of proposed innovations. Develops change initiatives that target improvement of significant organizational capabilities. Implements strategies for renewing or deepening change efforts. Introduces new perspectives and information to the team in order to stimulate innovation and change. Level 4: Supports new ideas and technologies that produce competitive advantage. Subject Matter Shares best practices and benchmarks of excellence. Depth Provides ongoing sponsorship for innovation programs and change initiatives. and Mentors team to question established practices and propose innovations. BreadthCopyright Kenexa, 2012 Leads a continuous cycle of innovation that incorporates feedback to improve future initiatives.

41. Describing Good or Target Performance Competency Innovation Develops new ideas and initiatives that improve the Definition organizations performance. Suggests better ways of completing own work. Demonstrates the ability to generate ideas organically or Level 1: in a brainstorming session. Basic Supports innovations that are introduced by team leaders Understanding and managers. Seeks help to shape ideas into workable proposals for change.Copyright Kenexa, 2012

42. Filling the Role Interview Questions Interview Interview Question Question Group Name Interview Question Description Names Innovation for Impact Can you give an example of an Results idea you introduced that was implemented? What was the impact? Generating Ideas What are some of the ideas Results youve come up with recently? Evaluating Ideas How do you decide which ideas Solution to turn into proposals?Copyright Kenexa, 2012

43. Filling the Role Interview Guides Innovation Question 1 1. Innovation for Impact: Can you give an example of an idea you introduced that was implemented? What was the impact? How did you come up with this idea? Was this solution successful? Below Average Average Above Average Interviewer Gives an Demonstrates Describes a Rating: ordinary answer. moderate creative approach; (Circle ONLY one) innovation; or likely AND tells why it answer. was successful. 0 1 2 Innovation Management NotesCopyright Kenexa, 2012

44. Problem: Excessive First Year Turnover Background: Organization is fast-moving, innovative company that values collaboration and adaptability. A new five year contract has been signed. A staffing plan has been created and Talent Acquisition has begun the recruiting process to fill key positions in three months Actions and Decision Talent Acquisition retrieves a existing job descriptions, reviews with hiring manager, and begins to screen based on prior positions, years of experience and education. Several seasoned individuals are hired in the first three months. Half are going before year-end, either washing out of the organization or self-selecting out. Talent Acquisition revamps interview process making it more robust but continues to source using the same criteria. Cost to Company First year turnover is extreme Company is losing $100,00-250,00 per position in terms of cost to hire Morale and productivity is begin to suffer as current staff continues to pick up responsibilities of lost hireCopyright Kenexa, 2012

45. Solution: Candidate/Success Profiles Background: Talent Acquisition has been furiously executing against the staffing plan and continuing to source candidates First year hires have a high failure rate. They years of experience are attracting candidates that do not fit with the current culture. While good on paper, many candidates do not have the skills to be successful in the role. Actions and Decision Using the job description as a starting point, a candidate profile is created. Core competencies linked to the values of the company are added to determine potential fit of the candidate. Working with subject matter experts, job-specific competencies are added to determine readiness of the candidate. Interview questions and guides are prepared to asses the candidates against each of the dimensions of the job profile. Value to Company First year turnover is reduced. Talent pipeline grows with new hires that fit the culture and prepared to be successful in their roles Employee satisfaction and engagement improves as new hires clearly understand the expectations of the role.Copyright Kenexa, 2012

46. Career AdvancementCopyright Kenexa, 2012

47. Benefits Of Career Pathing/Planning Align Employee Desire with Business Needs Support Talent Mobility Maximize Workforce Potential Dual Track Path for Management Path for Individual ContributorsCopyright Kenexa, 2012

48. Identifying Opportunities Verticial /Depth: The Job Family Progression Software Software Software Software Development Software Development Developer, Developer, Specialist, Developer Director Sr. Jr. MasterAlignment 4 3Innovation 3 3 2 1 1Producing Results 4 3 2 1 1SOFTWARE 4 3 2 2 1ENGINEERINGSoftware ProductDesign/Architecture 4 2 1 1Software Development 3 3 2 2Software Problem 3 2ManagementSoftware ProductTesting 3 3 2 2Copyright Kenexa, 2012 Required Proficiency Levels

49. Identifying Opportunities Horizontal/Breadth: Across the Function or Organization Job Family Name Software Software Field Software Product Engineering Support Quality Management On-site and remote Quality management, quality Design, development, customer support for assurance, quality control, delivery, and Job Family Description installation and testing and compliance enhancement of operation of companys services for software software products, software products, products, systems and systems and platforms. systems, and platforms. platforms. 2 Senior Management Strategy formulation; Vision implementation; Operational Software Development Field Service Director Quality Assurance Director responsibility; Cost and risk Director management; Enterprise view 3 Management; Senior Level Consulting Functional, technical or Software Development Field Service Manager, Quality Assurance Manager, process leadership; Manager, Group Region Group Management of multiple Software Development Field Service Specialist, Testing Manager, Senior teams; High complexity and Specialist, Master Master ambiguity; Tactical Quality Assurance Architect responsibilitiesCopyright Kenexa, 2012

50. Identifying Opportunities Horizontal/Breadth: Across the Function Example Competencies Target Proficiency Level Software Developer Target Proficiency Level Jims Current Specialist, Master Testing Manager, Senior Proficiency Level Knowledge of Organization 2 2 2 Products and Services 3 3 3 Earned Value Management 3 3 3 Software Development 3 3 RAD (Rapid Application 4 4 4 Delivery) Extreme Programming (XP) 4 3 3 IT PROJECT 3 2 3 MANAGEMENT INFORMATION SECURITY 3 2 2 MANAGEMENT Configuration Management 3 2 3 ISO 9000-3 3 1 2Copyright Kenexa, 2012

51. Across the Organization ORGANIZATIONAL FUNCTIONS Information Technology Oil & Gas Industry General Corporate Functions Software Software Field Compensation and Job Family Names Exploration Production Human Resources Engineering Support Benefits 2 Senior Management Strategy Software formulation; Field Service Human Resources Development Exploration Director Production Director Benefits Director Director Director Vision Director implementation; Op responsibility; Cost and risk Compensation and International Human management; Benefits Director Resources Director Enterprise view 3 Management; Senior Level Consulting Software Functional, Field Service Drilling Operations Compensation and Health and Safety Development Geoscientist Manager technical or Manager, Region Manager Benefits Manager Manager Manager, Group process leadership; Management of Software Dev. Field Service Compensation Exploration Manager Oilfield Manager HRIS Manager multiple teams; Spec, Master Specialist, Master Manager High complexity and ambiguity; Corporate Insurance Human Resources Tactical Geophysicist Production Engineer Manager Consultant, Senior responsibilities Reservoir Engineer Reservoir Engineer Executive Comp Recruitment Manager (Exploration) (Production) ManagerCopyright Kenexa, 2012

52. Problem: Dramatic Drop in Engagement between Years 3 and 5 Solution: Career Pathing/Planning Background: An organization committed to best practices conducts an employee engagement survey. The survey uncovers that employees with 3 to 5 years of tenure have unusually low levels of engagement. This is supported by turnover rates for that population Actions and Decision With competencies as the foundation, both vertical and horizontal opportunities are communicated to the organization. Employees are encouraged to consider increasing the breadth of their experience and skills not just depth. These moves are supported with the appropriate development and learning support. Value to Company Turnover returns to normal levels. Level of engagement dramatically rises. Company benefits from new ideas and perspective from cross pollination of talent. Talent mobility enabled.Copyright Kenexa, 2012

53. Training and DevelopmentCopyright Kenexa, 2012

54. Training and Development Facilitate Employee Growth Understand Where Gaps Exist Better Allocate Training and Development Budgets Build Skills for Future SuccessCopyright Kenexa, 2012

55. Competency-Based Development Plans Devel. Development Statement Statement Name Description Group Types Fostering Foster innovation by increasing R&D Quantitative Innovation expenditures by 20% in the next year. Prompting Attend industry-specific conferences on Qualitative Innovative a quarterly basis, and look for products Thinking of offerings that could be improved or expanded on as a way to jumpstart innovative thinking. Rewarding Offer a quarterly award to the most Qualitative Innovation innovative employee, as measured by the number or success of innovations.Copyright Kenexa, 2012

56. Competency-Based Coaching Coaching Tip Coaching Tip Name Description Type Looking for Look for alternative solutions to business Exploring|Planning Alternative problems, without initially evaluating Solutions feasibility or likelihood of success. Sharing Problems Encourage your team to share problems Promoting for Second with coworkers for second opinions. Opinions People not directly involved in the problem can provide ideas and points of view not previously explored. Out-of-the-Box For major projects, hold brainstorming Exploring Thinking meetings with your team that facilitate out- of-the-box thinking. Let employees bounce ideas off of each other without requiring an immediate solution.Copyright Kenexa, 2012

57. Bridging the Gap Learning and Development Plans Learning Learning Reference Learning Reference Reference Name Description Activities On & Off Quality initiative Participate in the the job participation implementation of a significant quality initiative that includes process mapping, developing improvement strategies, negotiating tradeoffs and buy- in for resources, and developing follow-up measurements Activities On & Off Observe role models Observe and analyze the the job behavior of potential role models for change Activities On & Off Create benchmarks Benchmark other groups or the job external organizations to get new ideas for productive changeCopyright Kenexa, 2012

58. Problem: Failed Opportunity for Development Background: Annual Performance Review for past year and Development Planning for next Marty meets with Jim to review years work Jim is bright, but his performance is mediocre and his personality irksome to Marty HR has provided a form with 5 point scale and blank text boxes for comments Marty has an unrelated project deadline he needs to attend to Actions and Decision Marty asks Jim to write up his accomplishments for the year The review lasts 15 minutes with Marty choosing the 3 in the scale for most areas to avoid confrontation or protracted discussion suggests Jim select some classes to take for the year. Jim feels underappreciated and under utilized, but has no way to talk to Marty about specific skills. He pursues training that will help him become more marketable outside of the company Marty is relieved that review is over so that he can get back to work Cost to Company Jims potential is not being tapped., and he performs at the same level the next year Training dollars may not be spent addressing critical company competencies Employees focus on salary and bonus only. Marty is not assessed on his people development skills he sees the performance reviews as a distraction which takes him away from his real workCopyright Kenexa, 2012

59. Solution: Focus on Development Background: Annual Performance Review and Development Planning time Mary, who has met with Roger every quarter to review development plan execution, meets with him to review years accomplishments Roger is a quick learner, with the ability to put acquired knowledge to work Mary has set aside an hour for the review Actions and Decision The discussion focuses on the effective application of the learning Roger has done over the year by reviewing his execution of the development plan Mary and Roger continue the development conversation, discussing competencies that are both needed by the team and an individual knowledge gap in preparation for a new project assignment. They discuss the new competencies he will learn. Roger is excited about the new opportunities to learn and apply the learning to the forthcoming project. Value to Company The Performance Review and Development Plan not only looks at past performance, but enables the manager and employee to plan for future requirements. Detailed competencies provide an effective communications tool for a more objective discussion around performance, needs of the company, and desires of the individual.Copyright Kenexa, 2012

60. SummaryCopyright Kenexa, 2012

61. Moving Ahead Build a foundation Dont create; customize Understand your jobs and their place within the organization Have a communication strategyCopyright Kenexa, 2012

62. Benefits of Competencies are Compelling and Tangible Acquiring Engaging Talent Talent Operational Cost of a poor efficiency rate due to poor hire: employee $300K-$500K engagement: 30% Cost of losing a Value of a top talented performer: 2-4X employee: performance of $250K-$500K average employees Retaining Evaluating Talent TalentCopyright Kenexa, 2012

63. Rena Rasch Research Manager Phone: 612-217-5056 Rena.rasch@kenexa.com Melissa TessendorfClient Relationship Director Phone: Melissa.tessendorf@kenexa.com