Engaging your Sales People

PRESENTATION FORSales Institute of IrelandPREPARED BYGarry GoldsmithHead of Talent Management

Hudson Talent Management

Perspectives on Talent Management

“ Talent consists of those individuals who can make a difference to organisational performance, eitherthrough their immediate contribution or in the longer term by demonstrating the highest levels of potential”

“The systematic attraction, identification, development,engagement / retention, and deployment of those individuals with high potential who are of particular value to the organisation.”

Source CIPD Research Insights 2006

We Use a Lot of Technology

A winning attitude,

where every employee

is inspired to move us

forward

The right people, in the

right roles, performing at

the right levels, now and in

the future

Characterized by:

High Performance Aspiration

“Economic Battle Fatigue”©

o 1 out of 3 key performers is considering leaving their employer in 2010. (Source : The Grapevine, Feb 2010)

o 1 out of 4 high potentials is considering leaving their employer. (Source : HBR, May 2010)

o This year staff attrition could cost the UK economy in excess of £1 billion. (Source : The Grapevine, Feb 2010)

o The Hudson Talent Engagement Survey Results indicate an average of ‘weak’ contracts between 30 & 50% in Europe in H1 2010. (Source : Hudson)

o Multiple external surveys in Europe indicate that there could be an employee turnover as high as between 40-60% in 2010 as economies slowly recover.

Copyright of Marc Timmerman, 2010

Your Talent You Your Competition

Our Problem

A Tsunami of people leaving ?

Ever bought a second hand car?

You do everything to prevent this: NCT / Test drive / AA inspection…..gather evidence that it will perform the job its supposed to..

The Case for Using Tools for Talent

Professionally designed and executed assessments deliver a more accurate prediction of actual performance.

Reduce risk of failure

Reliability

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Tradit

ional

inter

views

Refere

nces

Bio dat

a

Mod

ern p

erso

nality

tests

Ability

tests

Work

sam

ple te

sts

Behav

ioura

l inter

view

Asses

smen

t Cen

tres

Assessment Method

Rel

iab

ilit

y

The biggest injustice is the equal treatment of people who are not the same

The biggest injustice is the equal treatment of people who are not the same

Should I Stay or Should I Go ?(The Clash, 1982)

PsychologicalContract

MakeMake

ChangeChangeStayStay

BuyBuyvs

vs

Employee

Employer

DIMENSIONS MEASURED

EMPLOYERS EXPECT

• Performance

• Collaboration

• Flexibility

• Loyalty

• Employability

• Ethical Behaviour

EMPLOYEES EXPECT

• Training

• Job Content

• Security

• Social Atmosphere

• Financial Rewards

• Work-Life Balance

• Career Development

PSYCHOLOGICAL CONTRACT TYPES

FIRM

WEAK LOOSE

STRONG

EMPLOYEE COMMITTMENT

EM

PL

OY

ER

CO

MM

ITT

ME

NT

LOW

HIG

H

LOW HIGH

WEAK• Employees neither promise nor expect a lot• Only the formal legal contract creates a connection• These people will do what they have to but no more• Performance is often below employer expectations• Turnover tends to be higher than normal• Can be appropriate for repetitive & lower level roles

STRONG• Employee promises a lot & expects a lot in return Contract type works once expectations are met Often ‘Engaged’ and/or ‘Ambitious’ employees Positives often include high commitment & loyalty Dissatisfaction likely if high expectations not met Ideal for sales, management, & innovative roles

FIRM• Employee expects a lot but don’t give everything• Will meet expectations but not go the extra mile• Often relates to those in a role for an extended time• Often high-performers without significant effort• Can be under-utilised and/or stagnating in role• Often appropriate for vocational or structured roles

LOOSE• Substantial effort with low long-term expectations• Challenge & job content are key drivers• Often deep specialists or new-starters• Maybe the “new generation” of contract• Difficult to retain once the challenge is gone• Appropriate for challenging & project-based roles

The Business Case for Employee Engagement

2. HIGH PERFORMANCE

& RETENTION

4. POSITIVE SHAREHOLER

RETURNS

1. ENGAGED & MOTIVATED EMPLOYEES

3. POSITIVE CUSTOMER EXPERIENCE

EASIER SAID THAN DONE

A feeling of obligation to serve the company and to work hard

A feeling of necessity to remain working for the company as changing jobs would cost too much (economic, effort, social)

PERFORMANCE

RETE

NTI

ON

Continuance Commitment

Normative Commitment

Affective Commitment

A feeling of attachment to the company and its values (belonging, solidarity, and affiliation)

Meyer & Allen

Organisations are People-Based

ENGAGED EMPLOYEED ARE HIGHER PERFORMING & LONGER TENURED

ENGAGED EMPLOYEED ARE HIGHER PERFORMING & LONGER TENURED

Crisis E

ffect

Good Leader E

ffect

What are the New Leadership requirements ?

Leadership old style ?

And what about …

The Leadership Gap

o On average 28 to 32% of your managers are fully competent in :

o leading people

o leading a complex and changing business

o steering towards the future

o Some of the leadership gaps that need to be filled:

o Listen to the voice of your Talent, give them practical growth opportunities, take a risk with them.

o Create an atmosphere at the top that offers protection and allows people to make mistakes.

o Create possibilities for Baby Boomers to understand Generation Y

o To Walk the Talk ! Copyright of Marc Timmerman, 2010

Leaders are made

The Meaning of Leadership

o The Leader has a determining impact on Company Culture

o Leaders serve and sacrifice themselves

o The Best Leaders develop others

o “We all need loving critics”

o Making mistakes is human

o “You can’t plan to be courageous, but you can choose it”

Management is DOING THINGS RIGHTLeadership is DOING THE RIGHT THINGSManagement is DOING THINGS RIGHT

Leadership is DOING THE RIGHT THINGS

Copyright of Marc Timmerman, 2010

The Monkeys and the Banana Tree

Curtains !Thank you for your attention

“The certainty of misery is better than the misery of uncertainty”“The certainty of misery is better than the misery of uncertainty”