Talent REtention Report

8/7/2019 Talent REtention Report

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Introduction

People are the last weapon of competitive advantage in the global market

today. No matter your industry, company, or nationality, there is a battle-

ready competitor somewhere who is busy thinking how to beat you. Products

can be quickly duplicated and services cheaply emulated but innovation,

execution, and knowledge cannot. The collective talent of an organization is

its prime source of its ability to effectively compete and win. In the new

economy, competition is global, capital is abundant, products are developed

quickly and cheaply, and people are willing to change jobs often. In this kind

of environment smart, committed, experienced people who are

technologically literate, globally astute, and operationally agile are the new

competitive advantage. And even as the demand for this talent goes up, the

supply of it will be going down. As a result, an unprecedented shift is

occurring. Organizations are increasingly recognizing the need to radically

change the role of their Human Resource function.

Today, there is a progressive movement to transform the HR function and

establish a Human Capital Management (HCM) environment that truly

leverages the workforce as a competitive weapon. Organizations leading the

way in HR transformation are focusing less on administrative aspects and

more on strategic issues. Talent management tops the list as a strategy for

radically improving workforce productivity to drive higher value for the

organization. Today, most organizations are struggling to understand thecharacteristics, enabling technologies and definition of talent management.

While they know how to administratively recruit, retain and replace, they

struggle with the strategic elements of managing talent. The process of

managing the supply and demand of talent to achieve business goals,


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represents one of the greatest opportunities for organizations to not only

overcome these critical issues, but most importantly, survive and thrive for

years to come.

Talent Management

Traditionally, organizational growth has been enabled by hiring more people.

However, todays economic environment requires that the productivity of

existing workers increase before new headcount is considered.

Organizational growth has transformed fromquantity of talent toquality of

talent. As organizations seek new ways of improving workforce productivity,

talent management has become a vital element in establishing a human

capital management (HCM) environment. A term that has suffered from

significant abuse and misuse over the past few years, talent management is

more adequately defined as: A continuous, integrated process that helps

employers to:y Effectively plan talent needs

Attract the very best talent

Speed time to productivity

Motivate the right behavior

Develop targeted capabilities and knowledge

Retain the highest performers

Enable talent mobility across the organization


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Talent Management can be defined as:

A conscious, deliberate approach undertaken to attract, develop and retain

people with the aptitude and abilities to meet current and future

organizational needs.

Talent management involves individual and organizational development in

response to a changing and complex operating environment. It includes the

creation and maintenance of a supportive, people oriented organization

culture.

Importance of talent management

Like human capital, talent management is gaining increased attention.

Talent management (TM) brings together a number of important human

resources (HR) and management initiatives.

Organizations that formally decide to "manage their talent" undertake a

strategic analysis of their current HR processes. This is to ensure that a co-

ordinate, performance oriented approach is adopted.

Quite often, organizations adopting a TM approach will focus on co-

ordinating and integrating:

y Recruitment - ensuring the right people are attracted to the

organization.

y Retention - developing and implementing practices that reward and

support employees.


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y Employee development - ensuring continuous informal and formal

learning and development.

y Leadership and "high potential employee" development - specific

development programs for existing and future leaders.

y Performance management - specific processes that nurture and

support performance, including feedback/measurement.

y Workforce planning - planning for business and general changes,

including the older workforce and current/future skills shortages.

y Culture - development of a positive, progressive and high performance"way of operating".

Do you know what the greatest loss is for any company?

Its not marginalized market share or shrinking margins of profitability or

dipping share rates but losing its key people and talent. That loss becomes

exponentially high when they lose their talent pool to competitors. It is this

fear of losing talent that gives sleepless nights to many CEOs. Your ability

to retain your talent pool could be the key difference between success and

failure of your business; between survival and soaring profits; between

being a developing and developed nation. It is not that those companies that

retain their talent pool do not hit the rough patch, they do, but they recover

fast and return to the stream that they belong to and stay ahead of others.


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How Much Money Does Employee Turnover Cost You?

Here are 9 key costs associated with departing employees:

y Exit interviews

y Advertising

y Recruiting

y Interviewing

y Testing

y Hiring

y Orientation

y Training

y Lost productivity until they learn the job

Cost to Replace Just One Entry Level Employee, Middle Manager, IT

Specialist, or Engineer

Position% of Pay in Turnover

Costs

Replacement

Cost

Entry Level ($8/hr) 30% $4,992.00

Middle Manager

($45k/yr)

125% $56,250.00

IT Specialist ($83k/yr) 200% $166,000.00


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Your total cost to replace just three entry level people - $14,976.00

Your total cost to replace just three middle managers - $168,750.00

Your total cost to replace just three IT specialists - $498,000.00

These percentages of pay in turnover costs are what industry experts

typically cite. Think theyre high? Then reduce them by 25%. The costs

are still significant and its eating away profit from your bottom line at a

staggering rate.

Turnover costs add up quickly, and theyre one expense that typically

returns nothing of value.


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Love 'em Or Lose 'em: Employee Retention

Everyone is aware that employee retention is a growing and expensive

problem for companies today. But do managers and supervisors understand

the key role they play in keeping their talented employees on board? Many

believe that the glue that makes employees stick is made up of money,

perks, and benefits-issues over which they have no control. The truth is that

there are many simple and inexpensive ways to create a loyal and

enthusiastic workforce.


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TALENT RETENTION: An Ongoing Issue

Talent is one of the most important assets of an organization. An efficient

workforce determines the level of productivity of the organization and thus

determines the effectiveness of organizational systems and processes. Any

organization, whether small or large, which expects to grow and prosper,

must take the talent retention issue as a top priority. Failure to do so leads

to organizational slowdown and steady decline. Even during the times of

economic slowdown, it is imperative for an organization to focus on talent

retention strategies. This way, the organization can retain talent and make

judicious use of the same. The expedition to find the best way to retain

talents has taken HR professionals through concepts such as talent reviews,

talent satisfaction and talent delights. The latest idea is "Talent

Engagement", a concept that holds that it is the degree to which a talented

talent is emotionally bonded to his organization and passionate about his

work that really matters. Talent engagement is the level of commitment and

involvement a person has towards his organization and its values. An

engaged talent is aware of business context, and works with colleagues to

improve performance within the job for the benefit of the organization.

Talent engagement is a critical ingredient of individual and organizational

success. Engagement is strongly influenced by leadership quality, as well as

by job and organization features. This conceptual research is designed to

determine if the potential for talents to be engaged in work can be predicted

at the time of their initial application for work. These studies also provide

additional evidence about the impact of talent engagement on important

business outcomes.


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Employee Retention Strategy: How to Attract and Retain Top

Performers

One of the biggest challenges companies are facing is the attraction and retention of top

performers. The World Future Society predicted that the greatest test of durability forcompanies in the next five years would be the ability to get and keep good people. In

some industries such as the homebuilding industry there is a phenomenon of merry-go-

round employees where employees jump ship within the industry and companies are

recycling employees. In the finance industry the big question to a top performer is

"Where did you jump from?"

One executive management client had left a specific financial institution because she

was wooed by a competitor. Once there, she wasn't as happy as she thought would be

and was wooed back again to the original employer. She did this back and forth thing

two more times! This is very common in specific industries as the fight for good peoplecontinues. So how do we attract the top performers and second to that how do we keep

them from jumping?

Here are the top five things leaders can do to attract and keep the best of the

best:

1) Top talent wants to work for the top companies.

If your company is committed to superior practices, has profile and brand recognition

and is known for exemplary management practices, you will have a list of salivating

hopefuls lined up to work for your company. This would be a good problem to have.Bottom line - the company needs to be working towards being the best, brand

recognition and having excellent employee systems in place.

2) Build it and they will come.

If your company is revamping, rebuilding or restructuring, be aware that every man andhis dog out there has been through some form of reengineering in the workplace. Toattract top talent you need to be able to show the vision of where you are taking thecompany and offer the opportunity for the talent to be part of building the new dream.Top performers are often drivers, which mean they are turned on by challenge, change

and results.

3) Recognize and reward over and over again.

Money isn't everything to top performers. On a list of ten items that are important to topperformers, money ranks at number four. The most important element for topperformers is having challenging work, the second is having an open and honest workenvironment, third is recognition for work and fourth is money. Again top performers


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BPO Employee Retention

Attrition is the biggest problem faced by BPOs these days.

Attrition rate in BPOs is more than the attrition rate in any othersector. It is very important to control this attrition rate. Many

retention schemes are applied in BPOs for retention.

A single tool like training alone is not sufficient for employee

retention. The best results for employee retention can be

achieved by applying different tools strategically. Let us now learn

about various strategies which can boost successful employee

retention in BPOs.

1. First know the cost. This is the most basic and initial part of

the retention process. A good retention plan needs all the

facts. The turnover cost includes cost of selection process,

hiring, induction, training, lost productivity, etc.

2. Hire from known sources like employee referrals through

trustworthy employees.

3. Hire the right people. Retention starts with recruitment itself.

Identify the characteristics of the people you want to hire

who fit in organizations culture. To retain employees, the

people who are productive and are likely to stay for a longer

time should be hired.

4. Focus on employee orientation. It is the first impression thatthe employee takes home with him. A proper welcome form

the management will encourage the employee to stay with

the organization.


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5. Individual development. Develop career plans for

employees. Initiate mentorship and higher education

programs to keep the learning and development moving.

6. Training for managers. An important factor that keeps the

employee in the organization is the manager. Employees

need a manager who manages them well. A manager should

be a good listener and motivator. Proper training should be

given to the managers.

7. Find the reason why employees are leaving. Conduct exitinterviews with the employees after 3-4 months of leaving

the job. This is because most of the employees would not

like to reveal the true reason of quitting the job as long as

they are in the organization and are associated with the job.

The exit interviews can be conducted online. Then the

employees can talk straight-from-the-shoulder.

8. Employee recognition. Star of the month, top performer,picture on bulletin boards, appreciation cards and

certificates, etc, increase employee moral and confidence.

This is a great way to retain employees of a call center.


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Talent Scenario During Recession

The law of demand and supply mercilessly applies to human resources, also.

During the economic downturn, companies were able to downsize by getting

rid of redundant work force and dead wood. They also restructured the

employee compensation (mostly by decreasing) to stave off financial losses.

Only those employees were retained who proved their worth. The employees

had to accept all kinds of compensation-related compromises while

maintaining the same or even higher level of efficiency and productivity.

They could thus survive the financial tsunami.

These survivors got the opportunity to handle a variety of tasks that further

sharpened their skills and made them multi-skilled. Thus, overall quality of

talent has increased. At the same time, those who were out of job lost this

opportunity to hone their skills in a new challenging environment. Adding to

our woes, slashing of training and development budgets has led to a

depletion of the number of skilled employees within the companies.

And a Difficult Road Ahead

Such steps from companies have created an altogether tricky scenario: The

quality of talent within the companies has increased (raising the bar of the

talent), while the quality of skills available in job market has dwindled. Now,

recruiters can hire the required quality talent not from outside but from

inside their competitors workplace.

While many have forgotten the term War for Talent, the phenomenon is

slowly re-emerging. A study by Accenture has found that more than two-

thirds of executives are now deeply concerned about not being able to

recruit and retain the best talent. In todays global and highly competitive

economy, the war for talent is now global, not local. The survey of more

than 850 top executives from the U.S, UK, Italy, France, Germany, Spain,


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Japan and China found worries about talent management were growing, with

67 per cent this year putting it second only behind competition as the key

threat, up from 60 per cent last year.

New Definition of Talent

While war for talent continues, the bar for talent also goes up. Old skills and

competencies may not work. Companies now need salesman who does not

sell products but does sell solutions; production managers no longer control

the operations, they are expected to innovate and improve productivity; and

quality managers need to study competitive products with more zeal and

help develop better products and services. The employers expectations have

changed and are set to grow:

1.Highly Productive: The talented employees needs

to be highly productive. They

should deliver much more than they are compensated for. If that

happens, employers are willing to give larger share to them.


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2. Multi-Skilled: Companies have discovered that one way to decrease

recruitment cost is to have multi-skilled employees. Multi-skilled

employees help reduce manpower dependence, and the overall sum of

all the multi-skilled employees is greater than the same number of

equal number of specialist.

3. Self-Managed and Self-Motivated: Self-managed and self-

motivated employees reduce managerial efforts. This helps

organizations to have less number of managers.

4. Innovative and Out-of-the-Box thinkers: As the rules of the

business change and competition increases, the existing solutions no

longer work. Companies need employees who constantly infuse new

ideas and provide out-of-the-box solutions to meet customer needs

that seem to have no end.

Five Important Talent Retention Factors

Lets us consider five factors that can help organizations retain talent to meet

the client and business requirements in post-recession era:

1.Clear Goals, Targets and Expectations: You need to tell them what

exactly you expect from employees and what should they do to meet

these expectations. A talented mind without a direction is most likely

to pull the plug than a mediocre or a dead wood.

2. Balanced Work Environment: Talented employees have huge

positive energy and they exhaust this energy to meet the deadlines.


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But often they need time to re-energize themselves. Organizations

that want to retain talented employees need to provide a positive

environment that allows them to re-energize themselves more often.

3. Track Performance Goals and Provide Analysis: Innovators and

hard workers need constant motivation to perform better. They need

to know whether they are producing desired results. Any suggestion of

not being able to deliver throws them in doldrums. One way to let

them know about their performance (whether improving or declining)

is to point toward specific results, achievements or failures (which they

can fix before it is tool late).

4. Fair Evaluation of Performance: At the end of the day, the high

fliers want to get acknowledged for their work. The first

acknowledgment of the hard work is a fair and formal appraisal of their

performance. They should be specifically told where they met

expectations and where they did not.

5.Compensation to Maintain a Decent Lifestyle: Employees who

deliver quantity with quality also expect from employers fair

compensation that is compatible with the market. If not first,

compensation remains the second most important cause of brain-drain

from organizations.


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The Key to Retain Talent Lies in HR Policies and Practices

As organizations increase their expectations from employees, employers too

have to significantly change the way they manage the talent. Talented

employees continuously need new challenges and goals they can achieve,

and a continuous supply of information and resources they can use to solve

business problems. And needless to say, they will in return demand more

lucrative and effective compensations, a great work culture and friendly HR

policies.

Even during the recession, companies are reviewing and revising their

leadership development programs. Survey after survey indicates that peoplewho quit their jobs do so because of their relationship with the boss, not

because of dissatisfaction with their job. A recession is a perfect time to take

a hard look at leadership style and training to increase employee satisfaction

with management.

Conclusion

As organizations continue to pursue high performance and improved results

through HCM practices, they are taking a holistic approach to talent

managementfrom attracting and selecting wisely, to retaining and

developing leaders, to placing employees in positions of greatest impact. The

mandate is clear: for organizations to succeed in todays rapidly changing

and increasingly competitive marketplace, intense focus must be applied to

aligning human capital with corporate strategy and objectives. It starts with

recruiting and retaining talented people and continues by sustaining the

knowledge and competencies across the entire workforce. With rapidly


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changing skill sets and job requirements, this becomes an increasingly

difficult challenge for organizations. Meeting this organizational supply and

demand requires

the right Talent DNA and supporting technology solutions. By

implementing an effective talent management strategy, including integrated

data, processes, and analytics, organizations can help ensure that the right

people are in the right place at the right time, as well as organizational

readiness for the future. To create a sophisticated talent management

environment, organizations must:

Define a clear vision for talent management

Develop a roadmap for technology and process integration

Integrate and optimize processes

Apply robust technology to enable processes

Prepare the workforce for changes associated with the new environment

To conclude if talent engagement is not evaluated and handled as soon as

possible, disengaged talents will multiply and negative talent satisfaction

issues.

Documents

Talent REtention Report