HOW TO ATTRACT AND RETAIN HIGH PERFORMERS

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HOW TO ATTRACT AND RETAINHIGH PERFORMERS
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HIRING AND EMPLOYEE RETENTION
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• Introduction
• Employee Retention
• Compensation Options
• Possible Benefits Perks
• The Interview
• Candidate Details
• Tactical Transactional Tips Hiring Process
• Search Firm Selection

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EMPLOYEE RETENTION
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• Money is important, but studies show once money
  is neutralized, other factors become more
  important.
• If your pay is competitive, your people wont go
  looking for another job because of money.

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• In a study from benefitnews.com, when employees
  ranked what was most important, money finished
  out of the money. It was only the fifth most
  important value. The most important values were,
  in order
• The ability to balance work and outside life
• The meaningfulness of work
• Trust among employees
• The employee relationships with their supervisors
  or managers.

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• Some of the top reasons cited for people leaving
  a job include
• Lack of clarity about expectations
• Lack of clarity about earning potential
• Lack of feedback about performance
• Failure to hold scheduled meetings
• Failure to provide a framework within which the
  employee perceives he can succeed.
• Dissatisfaction with potential career development
  
• Better compensation and benefits

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• Things that keep employees once compensation is
  neutralized
• Offer performance feedback, praise good efforts
  and results
• Provide opportunities for your people to share
  their knowledge
• Communicate goals, roles and responsibilities
• Provide visual documentation with posting of work
  progress and accomplishments
• Offer flexible work schedules
• Get employees input about what benefits are most
  important
• Provide annual reviews

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COMPENSATIONOPTIONS
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• When trying to attract the best people, you need
  to pay better than most.
• Recent research from Watson Wyatt Worldwide in
  the Human Capital Edge recommends that to attract
  the best employees, you need to pay more than
  your average paying counterparts in the market
  place.

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• Incentive Compensation
• Potential Total Possible Bonus
• 0-100
• 0-30 - Most Common Range
• 15-20 - Typical
• Some as high as 50 or 100
• Usually for highly compensated or key people
• Some Companies Break It Down By
• Corporation
• Operating Company
• Division
• Individual

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• Bonus Structures Vary From Company to Company
• Corporate/Group
• Operating Company
• Individual
• Pay Outs of Bonus We Have Seen Many Types
• Full Pay Out for Prior Year Most Common
• Usually March/April
• Dont see it often, sometimes split into 2
  payments in the same year

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• Multiple Year Pay Out
• Bonus Split Across years as hand cuffs, rolling
  bonus
• 50 / 25 / 25
• ?, ?, ?
• 40 / 20 / 20 / 20
• 50 / 50
• Multi Year must be a balance of short term
  incentive and some type of Golden Hand Cuffs
• If its too long you mitigate the incentive.
• Cash/Equity Stock Options or Grants
• Cash is usually paid in first year stock
  typically vests in 2, 3 or 4 years.
• We feel 4 years is too far or too long.

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• Commissions
• Top Line Driven
• Sales Environment
• New New Business
• Penetration New
• Renewal
• Total Book
• Percentages Retail
• 20-30 of Book
• Percentages Wholesale
• Range 20-35
• Many firms tier the commission higher as the book
  grows.

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• Apprenticeship Programs
• Provide financial support for candidate to make
  transition when not bringing a book of business.
• Its not realistic to expect candidate to bear
  the burden of entire transition.
• Incentive reward and recognition offerings,
  foster and sustain an organizational culture in
  which employees are recognized for their
  contributions based on predefined objectives.

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POSSIBLE BENEFITS/PERKS
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• Bonus (Extra Compensation) Options
• Performance bonus
• Attendance bonus
• Longevity bonus
• Profit sharing
• Discount stock Purchase Plans
• Deferred Compensation
• Medical and Health
• On-site medical clinic
• Medical care programs (HMO, health insurance)
• Dental care programs (insurance)
• Vision care programs
• Flexible spending accounts for healthcare costs
• Employee assistance programs
• Wellness programs
• On-site fitness facilities

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• Paid Time Off
• Sick leave
• Well pay
• Mental health days
• Holidays
• Vacation
• Bereavement leave
• Ten paid hours a month for volunteer work
• 35 extra vacation days in 10th year and every 5th
  year thereafter
• Personal or emergency business days or floating
  holidays
• Paid sabbaticals
• Professional association participation
• Insurance
• Short-term disability insurance
• Long-term disability insurance
• Life insurance

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• Retirement
• Defined benefit pension
• Defined contribution
• Financial planning assistance
• 401(k)
• Profit sharing
• Discount stock purchase plans
• Children and Family
• Free child care
• On-site child care
• Free elder care
• Vouchers to help pay for child care
• Information about cost and quality of day care
• Discounts on day care
• Flexible spending account for child care

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• Pets
• On-site kennel service
• Dog and cat grooming
• Animal sitting for business travelers
• Pet walking services
• Bereavement period for the loss of pets
• Pet Insurance
• Bring a pet to work day
• Allowed to keep pets at work (an office cat)
• Education and Development
• Tuition reimbursement or payment for seminars and
  classes
• Educational assistance (interest-free loans for
  own or childrens education)
• Career planning and development
• Scholarships for children of employees
• Professional association meeting, conference or
  seminar expense

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• Concierge services
• Car wash and oil change
• Dry cleaning service
• Maid service to clean home
• Errands run
• Food
• Free drinks such as pop, coffee, tea, juice and
  espresso
• Free lunch
• Free popcorn, ice cream or other snacks
• Discount meals
• Holiday turkeys
• Already prepared take-home meals
• Paid mini-bar snacks at hotel (while on travel)
• Paid meals for entire family if working on
  weekend (to allow some family time)
• Beer, wine, meals included in company-provided
  refreshments at company events

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• Clothes
• Free uniforms or uniform cleaning
• Free clothes for personal use (such as shirts,
  sweaters, jackets, hats)
• Shoe repair
• Safety shoes
• Safety eyeglasses
• Personal
• Beautician on site
• 5 haircuts
• Free on-site massages
• Nap time during the workday
• Discounts offered to employees
• Leased automobiles
• Life insurance
• Discounts (up to 50) of closing costs in the
  purchase of a new home
• Clothing

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• Discounts offered to employees
• Leased automobiles
• Life insurance
• Discounts (up to 50) of closing costs in the
  purchase of a new home
• Clothing
• Transit
• Van-pool programs
• Company car
• Free or subsidized mass-transit passes
• Free parking (car or bicycle)
• Free taxi rides home
• First-class travel
• Free ride in jump seat of company planes
• Free airline passes
• Keep frequent flyer miles for personal use

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• Other
• Relocation expenses
• Subsidized or free housing
• Employee referral bonus
• Boomerang bonus (employee rehire bonus)
• Prepaid legal services (telephone advice, wills,
  purchase of a home)
• Award or gift certificates (redeemable at the
  employers or another local store) as bonuses for
  attendance, productivity, and punctuality
• Game rooms (pool, foosball, video games, etc.)
• Free movies
• Free cigarettes
• Company sponsored/subsidized events such as trips
  to athletic events, concerts and hikes
• Theme days such as Halloween costume days and
  holiday cookie exchange days

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• Condominium, hotel, camping or other recreational
  area for employee use
• Annual family trips back to the "home country" of
  H1 B visa employees
• Relocation back to the "home country" if the job
  doesn't work out
• Relocation back to any United States location in
  case of "no fault" layoff or termination
• Birthday card or note from executive
• Assistance in obtaining a visa to visit the
  United States
• In-plant bank branches for employee banking
  services
• Life Cycle account of 10,000 to help employees
  cross major thresholds such as buying a first
  house or financing college education

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THE INTERVIEW
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• Career Questions
• Begin interview from a neutral position, go to
  the candidates prospective first candidates
  will chameleonize to job culture if given
  opportunity.
• What criteria would you use to find compatibility
  in would be employer? (Not the job)
• If you had your druthers, what would be your next
  job progression, either at your current employer
  or external to it?
• What have you done specifically that has
  increased revenue or saved your company money?
• What differentiates you and separates you from
  your peers?

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• Behavioral Questions
• Decision Making
• Give me an example of a time when you had to be
  quick in coming to a decision. What obstacles
  did you face? What did you do?
• What was your most difficult decision in the last
  six months?
• Creativity
• What kind of problems have people recently called
  on you to solve? Have you addressed them?
• Tell me about a problem that youve solved in a
  unique or unusual way. What was the outcome?
  Were you happy or satisfied with it?

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• Leadership
• Tell me about a team project when you had to take
  the lead or take charge of the project? What did
  you do? How did you do it? What was the result?
  
• Describe a leadership role of yours. Why did you
  commit your time to it? How did you feel about
  it?
• Interpersonal Skills
• What, in your opinion, are the key ingredients in
  guiding and maintaining successful business
  relationships? Give me examples of how you have
  made these work for you.
• Give me an example of a time when you were able
  to successfully communicate with another person
  even when that individual may not have personally
  liked you (or vice versa). How did you handle
  the situation?

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• Integrity/Honesty
• Discuss a time when your integrity was
  challenged. How did you handle it?
• Give a specific example of a policy you conformed
  to with which you did not agree. Why?
• Follow Up Questions
• What steps did you take?
• What action did you take?
• What happened after that?
• What did you say?
• How did he/she react?
• How did you handle that?
• What was your reaction?

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• How did you feel about that?
• What was the outcome/result?
• Were you happy with that outcome/result?
• What do you wish you had done differently?
• What did you learn from that?
• How did you resolve that?
• What was the outcome of that?
• Why did you decide to do that?
• What was your logic?
• What was your reasoning?
• Where were you when this happened?
• What time was it?
• Who else was involved?

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• Tell me more about your interaction with that
  person.
• What was your role?
• What obstacles did you face?
• What were you thinking at that point?
• Lead me through your decision process.
• How did you prepare for that?

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CANDIDATE DETAILSWHAT TO KNOW
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TACTICAL TRANSACTIONAL TIPS
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• Informational Interview
• Understanding Candidate Motivation, i.e.
  Interview Questions
• Information to be discovered as early as
  possible, independent of a job description.
• Candidate Motivations
• Diversification of Products and Experience
• New Underwriting Product
• Exposure to Distribution
• Some Leadership Involvement
• Industry Representation
• Financial Participation in Results

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• Timeliness / Expedience
• Clearly Communicated Expectations of the Hiring
  Process (Time Expectation) (Long or short is
  fine, but do it as presented)
• Emotional Momentum changing jobs is generally a
  life altering experience.
• Very challenging and distracting to be gainfully
  employed and think about another position,
  leaving your comfortable environment.
• Timeliness of Offer
• Responsiveness
• Operational Questions Functional realities, of
  the job. Be available to candidate.

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• Provided Tools Lap Top, Cell Phone, Blackberry,
  cars, etc.
• Empathize with the decision being made and make
  the candidate feel cared for.
• Offers
• Timely (Emotional Decision) (Not too early, not
  too late)
• Too Early
• Candidate needs more information before offer.
• About position
• About organization
• About benefits
• Reporting structure
• Not enough time to process information.
• Sense of exclusivity lost

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• Too Late
• Emotional disappointment
• Maybe Im not the first choice
• Maybe theyre not sure.
• Company not responsive, not agile, doesnt
  execute efficiently (etc.) (Reflective of company
  decision making)
• Anti Climatic
• Comprehensive/Responsiveness
• Salary, vacation, benefits, bonus eligibility
  components, mechanics, reporting relations,
  title, desired start dates, equipment.
• Address any unusual incidentals

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SEARCH FIRMS
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• When
• When you have a difficult position to fill
• Key Executive Position
• Technical/Support Role
• Anything with a degree of difficulty for your
  firm to fill on its own.
• Time Sensitive
• New Product Role Out
• Geographic Expansion
• Infrastructure Growth
• Opportunistic Expansion
• Confidential Hire
• Replacing Incumbent/Upgrade
• Succession Discretion
• Strategic Market Expansion (Covert)

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• Extraction Expertise
• Hiring the Top Performers
• Being able to actually on board the right
  person.
• Who
• Established Recruiting Track Record
• Art/Science
• Industry Specialization/Knowledge