Becoming an Employer of Choice

Becoming an Employer of Choice

Sandra HofmannSVP & COO

Turknett Leadership GroupAtlanta

Practical Insights into Building a Culture of Retention

What keeps you around?

1. Continuous employment2. Feeling that my real skills and capabilities are being put

to use3. Real esprit de corps in the group4. Strong program of employee benefits5. Real rewards that are inherent in the work6. Pay, better than average7. Able to explore new areas and to grow as much as I can8. Fairness in promotion, based on performance with

promotion from within9. Good working conditions, accommodations consistent

with level of position10. Knowing what is going on in the organization11. Strong pressure to accomplish task, a challenge12. Mistakes are permitted and there is little chance of

being released13. Feeling my job is important14. Company policies that are known and fair15. Knowing what is expected of me16. Being told how well I am doing17. Sufficient responsibility and authority18. High standards of accomplishment that I must "reach "19. Opportunity to use initiative, no direct or close

supervision20. Having a manager whom I respect

When you are an employer of choice, then everybody knows your name!

"Best lists" appearances. Positive name recognition Often cited in key publications

CEO has wide name recognition. Your current CEO has a positive name

recognition when professionals in your industry are asked in surveys or focus groups 75% of the time.

There is a published book written about your firm or CEO within the last five years.

Giveaway/takeaway ratio. Talent competitors talk positively about

you 25% of the time. Recruiters list you in top employers. In top three choices of top performers

over 50% of the time.

When you are an employer of choice, then everyone wants to be with you!

Employee Referral rate >50%. Former employees do/would return.

Over 10% of employees that voluntarily quit in the past three years have returned. Over 50% express an interest in returning when surveyed.

Employees send the "same" message. When your employees are asked what

they tell strangers about "why the firm is a great place to work" over 50% of their answers include your top selling point.

Turnover rate of top performers. The turnover rate of your top 25% rated

employees is below 5%. CEO mentions people practices.

Your current CEO mentions specific HR or people practices by name in 25% of their external and 50% of their internal speeches.

Are you writing your story?

HR Promotes “Thought Leadership”

Outsource/ web-based HR Presented at SHRM SE

Conference on “HR as a Strategic Partner”

Participated on expert panel & webinar for Employease

Participated on Employease Customer Advisory Council

Teleworking Selected for Georgia Clean Air

Campaign case study on teleworking

Participated in Gov. Perdue’s Teleworking Press Conference

Diversity/ Change Management Included in numerous

publications (CIO, CIO Insights, HR Executive, etc.)

Requested for speaking engagements on topic

Enhance Community Relations Atlanta Business Chronicle’s “A+

Employers” – placed 6th in finals TAG Women in Technology’s “Best

Employer in Georgia” – winner of Work/Life Balance

Society for Human Resource Management’s “Professional Excellence” – winner of Mid-size company & Grand Prize

Fortune’s “Best Small & Mid-size Companies to Work For” – finalist

Make it real or you’ll be left hanging!

Why does retention matter?

Loss of key players affects corporate productivity

Replacement cost high Cost of vacancy can impact shareholder

value Losing talent to competitors erodes

competitive advantage High attrition affects the morale Inexperienced employees decrease

customer satisfaction

Retention is a strategic imperative for the enterprise!

Source: Retaining talent: Retention & Succession in the Corporate workforce, Aberdeen Group, 2005

Why is retention is a hot topic now?

70% of HR managers believe retention is primary concern

55% of HR managers expect retention to be significant challenge within next 5 years

40% of HR managers have seen increase in turnover

Demographics are changing – generational diversity drivers

Source: Atlanta Business Chronicle February 2006

Headhunter.net: “where employees with good jobs go when they are having a bad day”

How battle ready are you?

1. Do I understand the difference between voluntary & involuntary turnover in my company?

2. What level of voluntary turnover is acceptable?

3. How much does attrition cost my company?

4. What themes are at the root cause for turnover?

5. What is being done to solve the root cause?

Battle for talent heating up

80% of employees hunting or open

Global struggle to hire talent: 40% worldwide

44% US 78% Mexico 66% Canada 58% Japan 13% India

Source: Manpower survey February 2006

1. Sales Rep 2. Engineers 3. Nurses 4. Technicians

production /operations

engineering maintenance

Accountants 5. Accountants6. Administrative Assistants 7. Drivers8. Call Center Operators 9. Machinists 10. Management /Executives

Top 10 jobs most difficult to fill

Why employee retention fails

Too much emphasis on pay, benefits, perks 88% leave for reasons other than pay but – work IS about the money! The best do

typically offer better than competition Blindly following other companies’ best

practices Match culture, benefits, practices to needs &

desires of employees Worthless if paper based & haphazard

Failure to train managers & hold them accountable

Monitor voluntary turnover, new-hire retention rates, employee-engagement survey scores & reward the best

No one can afford the luxury of another bad manager

Retention is a process – not a program

Who has the edge?(when it comes to recruiting & developing talent)

Procter & Gamble

General Electric

Google UnitedHealth

Group UPS Exelon Starbucks

FedEx Anheuser-

Busch Nordstrom FMC

Technologies Walgreen PepsiCo Nestle BP

Source: Fortune February 2006: America’s Most Admired Companies

How do the best companies retain?

Provide open & frequent communication Top management more accessible Employees engaged at all levels

Expect excellence from everyone Challenge employees often Move employees to new jobs

Offer broad based & on-going development Not focused just on high

potentials Promote from withinSource: Fortune February 2006:

America’s Most Admired Companies

A framework for retention

TrainingRecognition&

FeedbackOrientation

CareerDevelopment

Advance-ment

Work/Life Balance

Team Cohesion Open

CommunicationLack of StressEmphasis

on Quality

BenefitsAutonomy | Challenge

Resources | Pay SatisfactionJob SatisfactionRole Ambiguity

InterGroupCooperation

ParticipationEmployeeRelations

Customer Focus

Leadership Capability

Lack of Bureaucracy

Innovation

Equity/Fair Treatment

Strength of Culture

Meaningful Work

DepartmentManager

Organization Structure

Immediate Manager


FeedbackOrientation

Career Development

Advance-ment

Work/Life Balance

Team Cohesion Open


on Quality



Inter-group Cooperation

ParticipationEmployee Relations

Customer Focus


Lack of Bureaucracy

Innovation


Strength of Culture

Meaningful Work

Department Manager


Immediate Manager


Customer Focus


Lack of Bureaucracy

Innovation


Strength of Culture

Meaningful Work

Department Manager


Immediate Manager

Retention & Leadership Job Level

Participation in Decision Making Desire decision latitude to help influence

direction of their team Biggest Influence: employee’s immediate

manager Especially important for younger employees Identified by Gallup to retain top talent: do

my opinions seem to count? Meaningful Work

Core dimension of job satisfaction Want to feel that their work is making

contribution toward the good of the company

Foster a sense of purpose: working for a cause as well as a company

Engaging company vision that shows clear connection to employee’s effort

Retention & Leadership: Team Level

Employee Relations: Defined as the process of maintaining a positive and cooperative workforce via fair & considerate treatment Identified by Gallup to retain top

talent: Does my supervisor seem to care about me as a person?

Direct relationship with boss more important than pay/perks

Important for both young & older employees

Positive supervisor/employee relations inspire commitment

One of the top 5 reasons employees stay in a firm

Retention & Leadership: Organization Level

Quality of Management Direction of organization key driver of

commitment Trust in senior leadership key driver of

commitment & 3 year return to shareholders

Bureaucracy One of the hallmarks of “average”

companies Minimize the management burden by

keeping hierarchies in check Innovation

Companies viewed as innovative create energy & pride throughout organization

Retention & Leadership: Organization Level

Equity/Fair Treatment Doesn’t mean overpay, just pay fairly

according to internal & external market Must embrace diversity & treat all

employees fairly Strength of Culture

Reputation or branding as an “exclusive” organization & market leader creates pride in organization

Helps people feel they are a part of something important

Customer Focus One of the five most powerful drivers of

workforce commitment One of the key priorities of most admired

companies

Work/Life Balance

Team Cohesion Open


on Quality




Retention & Work Design: Job Level

Autonomy Talented employees want independence

& ability to make decisions without going through bureaucratic channels

Creates sense of control over environment & increased responsibility

Challenging work Talented employees want a job that is

challenging & has a large scope of responsibility

One of top 5 reasons employees stay Create great jobs by letting people

stretch their skills Adequate Resources

Identified by Gallup to retain top talent: Do I have the materials & equipment I need to do my work right?

Retention & Work Design: Job Level

Role Clarity Identified by Gallup to retain top talent: Do I know

what is expected of me at work? Unclear expectations & ambiguous demands from

boss lead to turnover Compensation & Benefits

Offer a variety of creative benefits Is not a source of satisfaction, but is a driver of

dissatisfaction Choice of benefits increasingly important Stock, profit sharing & pension plans top 3 benefits

correlated with commitment One of the key priorities of most admired companies Communication of benefits one of the five most

powerful drivers of workforce commitment Many employees don’t have a good understanding of

their entire benefit package Job Satisfaction

Though not always related to productivity, has always been linked to turnover & intention to quit

Retention & Work Design: Team Level

Team Cohesion Coworker relations top reason to stay

Best large companies mimic small

companies with smaller autonomous units Predominant characteristic of “100 best

companies to work for in America” Role Harmony

Decreasing conflicting demands increases job satisfaction

Open Communication Information sharing between manager and

team important Clear communication systems used by

effective leaders Openness in team facilitates overall

cohesion & satisfaction

Retention & Work Design: Organization Level

Stress Free up time for employees to relax & reduce

stress with variety of programs (Work-free weekends, thinking/meeting-free days, limitations on business trips, flexible vacation time)

Conflict & overload common work-related factors to stress

Emphasis on Quality Quality products/services create pride in

organization, fostering commitment Work/Life Balance

Flexible hours one of top reasons cited EAPs, medical/dental care, family time-off

programs, allowance for personal time Job sharing & telecommuting Recognition of personal/family life-powerful

factor Especially important for women who do not

value promotion opportunities


FeedbackOrientation

Career Development

Advance-ment

Retention & Development: Job Level

Orientation Realistic job preview helps set

expectations Orientation critical in the first 3

days Training

Interpersonal & technical training popular incentive programs

“Train like crazy” one of recommendations to retain staff

Retention & Development: Team Level

Recognition Must provide special recognition for top

performers Recognition for good work one of most

common reasons for staying Recognition doesn’t have to be financial!

Feedback Regular dialogue on performance issues Identified by Gallup as important for

positive climate: In the last six months, has someone at work talked to me about my progress?

Ongoing feedback by immediate supervisor critical.

Use of 360’s very effective tool for giving insight and focusing development

Retention & Development: Organization Level

Career Development Put people in jobs that challenge them One of top 3 reasons for staying Educational incentives more effective

than dollar compensation One of five most powerful drivers of

workforce commitment Identified by Gallup as important for

positive climate: This last year, have I had opportunities at work to learn and grow? Do I have the opportunity to do what I do best everyday?

Opportunities for Advancement Must be communicated throughout entire

organization One of the factors that inspires

commitment

Retention through professional excellence

Children’s Healthcare of Atlanta

Great Expectations HomeBanc Mortgage

Corporation Associate Emergency

Fund Randstad North America

On-boarding process The Home Depot

Veterans Recruiting Doctors Hospital of

Columbus Combined community &

workforce programs CARE

Global Gender Equity & Diversity initiative

City of Atlanta Growing service during

right sizing

Other Important Determinants of Retention

Before you hire - Selection Hiring the right person both in

skills & fit will save money in long run & increase retention

After they leave - Exit Interviews Wait 2 weeks to let emotions

subside & find out why people are leaving

Don’t just file the information. Do something with it.

Create an “Alumni” Network Stay in touch Remember your reputation as an

“employer of choice”


FeedbackOrientation

Career Development

Advance-ment

Work/Life Balance

Team Cohesion Open


on Quality





Customer Focus


Lack of Bureaucracy

Innovation


Strength of Culture

Meaningful Work

Department Manager


Immediate Manager

Questions?

Thank you

[email protected] Parklake Drive, Suite 500,

Atlanta, GA 30345www.turknett.com

Documents

Becoming an Employer of Choice