Proven Strategies to Enhance Retention and Become an Employer of Choice

1
Loveem or Loseem

• Proven Strategies to Enhance Retention and Become
  an Employer of Choice

By Bogdan Damjanovic, P.Eng. Owner, Express
Employment Professionals
2
Whats missing?

• Managers identified the following soft skills as
  being the most important at their organizations
• Organization Skills 87
• Verbal Communication 81
• Teamwork Collaboration 78
• Problem Solving 60
• Tact Diplomacy 59
• Business Writing 48

3

• Definition of Turnover
• Turnover Cost Factors Annual Salary
• Benefits/Burdens
• Expected Length of Vacancy
• Calculations include conservative estimates and
  assumptions based on research by Price
  Waterhouse's Saratoga Institute and the
  University of Wisconsin
• http//www.expresspros.com/us/turnover.aspx

4
TRUTHS ABOUT TURNOVER
5
Truths About Turnover

• Truth 1 Turnover happens
• 0 turnover is not realistic nor desirable
• Good employees quit leave
• Bad employees quit stay
• Truth 2 Some Turnover is Desirable
• - New employees bring new ideas, approaches
  attitudes
• Truth 3 Turnover is costly
• Cost of turnover varies from 1,000 for an entry
  level employee to several thousand for an
  executive

6
Truths About Turnover

• Truth 4 More money is not always the answer
• 89 of managers surveyed think money is the
  primary factor of turnover.
• However, most employee surveys rank money as 9th
  or 10th reason for turnover.
• Employees do want fair competitive pay.

7
Truths About Turnover

• Truth 5 Manager is the best person to fix the
  problem.
• 50 of worker satisfaction is related to their
  relationship with their leader.
• Managers, not HR Departments, should be the
  driver of employee retention.
• Areas of leaders ownership
• Hiring
• Performance appraisal
• Influence senior managers for needed change.
• Most important EMPLOYEE RECOGNITION
• Truth 6 Turnover demands commitment

8
WHY SO MUCH TURNOVER?
9

• March 2010
• The national unemployment rate remained unchanged
  at 8.2
• Employers added 18,000 jobs
• This is the sixth employment gain in the past
  eight months
• Job gains were seen in Ontario, Quebec, and
  Saskatchewan as follows Construction
  21,000 Manufacturing 3,900 Trade
  13,700 Transportation Warehousing - 19,600
  Finance, Insurance, Real Estate Leasing -
  7,400 Professional, Scientific Technical
  Services 38,400 Business, Building Support
  Services - 26,300 Educational Services
  6,200 Healthcare Social Assistance 5,100
  Information, Culture Recreation - 6,500
  Accommodation Food Services - 3,300 Public
  Administration 7,900

10
Why So Much Turnover?

• Higher expectations
• People want more than a job
• They want time off and
• Career opportunities earlier
• Employers no longer viewed cradle-to-grave

11
Why So Much Turnover?

• Longer hours, more demanding work
• Productivity increased 6.9 percent in the nonfarm
  business sector during the fourth quarter of 2009
  as unit labor costs fell 5.9 percent
• From 1977 to 1997, average workweek grew from
  43.6 hours to 47.1 hours.
• More overtime expected with no notice.
• 33 of employees bring work home.
• 64 of all employees want to work less.

12
Why So Much Turnover?

• Family demands
• Day care
• Elder care
• 25 of workforce provides 11 hrs per week
• Men are just as likely as women to adjust
  schedules for elder care

13
DO I NEED A RETENTION PROGRAM?
Take the Quiz (If you score more than two nos
you need to get serious about retention.)
14
TEN REASONS GOOD PERFORMERS LEAVE
15
Ten Reasons Good Performers Leave

• No link between pay performance
• They dont perceive advancement opportunities
• Their contributions are not recognized
• They dont get to use their natural talents
• They have unclear or unrealistic expectations
• They will no longer tolerate abusive managers
• Managements cutback on administrative help
• Constant reorganization of management
• Management not taking time to clarify goals
  objectives
• Management favoritism

Note All Ten Reasons Involve Managers
16
EXIT INTERVIEWS
17
Exit Interviews

• The worst time to do them is on the last day
• Conduct them after employee departure
• One to two weeks
• Call at home
• Employees are more willing to speak
• Better to meet in person due to body language
• Use the opportunity to begin recruiting them back
• Interviews are superior to surveys
• Prepare for both
• Ask detailed questions
• Expand as necessary
• They are as important as employment interviews

18
Exit Interviews
Suggested Questions

• What caused you to seek other employment?
• Why did you accept a new position?
• Describe working for our company.
• Rate compensation and benefits.
• Benefit improvements
• Describe training.
• Did you observe teamwork?
• Describe the relationship between your department
  and others?
• Could the company have prevented your leaving?

19
Exit Interviews
Suggested Questions

• Identify specific things you would change.
• How would you rate the company on
• Ethics Honesty
• Integrity Trust
• How would you describe your leader?
• Treated fairly
• Recognized for your contributions
• Fair appraisals
• Treated consistently as other department members
• Would you recommend this place to a friend or
  relative?
• Would you consider re-employment?

20
Exit Interviews vs. Stay Interviews

• Utilize internal focus groups to analyze
  turnover.
• Survey employees on why they stay.

21
OBSERVATION

• EMPLOYEES DONT QUIT THEIR COMPANIES,

MOST QUIT THEIR BOSSES!
22
Common Core Elements of Organizations That Excel
at Retention

• ETHICS
• INTEGRITY
• HONESTY
• TRUST

23
Ethics, Integrity, Honesty, and Trust

• No benefits, compensation program, gimmicks or
  rewards can replace the four core elements.
• The organizations excelling in the four core
  elements win the war for talent.

24
Common Core Elements of Organizations That Excel
at Retention

• How do you measure your commitment to the four
  core elements?

• Ask yourself Does your organization?
• Conduct business according to professional
  standards?
• Does your company culture support disclosure of
  truth even when it hurts?
• Does your company base its business decisions on
  established values?

25
Common Core Elements of Organizations That Excel
at Retention

• Has your CEO earned the trust of your employees?
• Does your leadership team accept responsibility
  for failures or blame others?

26
RECOGNITION
27
Facts on Recognition

• According to an article in Compensation and
  Benefits review
• 81 of workers claim they do not receive any
  reward for increase in productivity.
• 60 of managers report the same.
• Only 3 of base salary separates average from
  outstanding employees.
• Most companies have overused giveaways such as
• Coffee Cups, Pens, T-shirts, Certificates

28
Facts on Recognition

• Employees favorite form of recognition

PRAISE
29
Why Employees Leave and Stay

• Employees and Managers are somewhat disconnected
  on WHY employees leave and stay

Employee Ranking
Manager Ranking
Good wages Job security Promotion/growth Good
working conditions Interesting work Personal
loyalty to employees Tactful discipline Full
appreciation of work done Sympathetic help on
personal problems Feeling in on things
7 4 5 9 6 8 10 1 3 2
1 2 3 4 5 6 7 8 9 10
30
Best Practice Retention Elements

• Saratoga Institute survey of 40 Fortune 100
  companies including
• Dell Honda of America
• Verizon UPS

31
Best Practice Retention Elements

• Innovative compensation benefits/stock options
• Formal rewards recognition programs
• Good performance management
• Aligning employees goals with business goals
• Strategies measures for increasing employee
  retention
• Formal career planning
• Work/Life strategies
• Mentoring programs

32
Recognition Gestures Can Be Simple

• Hewlett-Packard
• Golden Banana Award
• Tektronix Beaverton, OR
• You Done Good Cards
• NASA Johnson Space Center
• Thanks a Million Award
• 10 100,000 candy bars
• Kory Electronics Seattle, WA
• President Head Shaving

33
Recognition Gestures Can Be Simple

• Supplying ice cream or Popsicles on a hot day.
• Hiring someone to clean windshields in parking
  lot on a snowy day.
• Lottery tickets
• Grab as many as you can from a fish bowl
• Hiring H.S. students to wrap holiday gifts.
• Being creative on job titles.
• Sales Manager vs. Salesperson

34
Retention Techniques
SAS Institute Cary, NC - Software
Developer Ranked 3rd in 100 best companies to
work for

• On-site child care for 250/mo
• Laundered workout clothes
• Golf Tennis Dance Classes
• Cafeteria w/piano music Families welcome
• Art on every wall
• Free health clinic
• Elder care coordinator

35

• Financial planning for college retirement
• SAS spends 45K annually on 22 tons of candy

SAS Turnover Rate 3.7 20 below industry
average
36
(No Transcript)
37
Retention Techniques

• IBM employees in Atlanta wear cutoffs and sandals
  to work.
• Employees at Tech Data Corp., Tampa, FL enjoy
  meals prepared by an executive chef.
• Electronic Arts Canada, has a 70 seat movie
  theater.
• Construction Equipment Co., Louisville, KY, gives
  employees children a 50 savings bond for
  straight A report cards.
• Workers at Netscape, Mountain View, CA., can
  bring dogs to work

38
Retention Techniques
A COMMON FAVORITE

• Anheuser-Bush, St. Louis, gives every employee
  two free cases of beer each month.

39
Other Out-of-Box Retention Techniques

• Retention bonus
• Busing or transportation support
• Wash employees cars in the parking lot
• Allowing employees to select job titles
• Giving every employee business cards
• Donating to employees childrens sports teams
• Free gardening plot on company land
• Free limo service on wedding day
• Free Starbucks coffee
• Two-week paid leave for new fathers
• Free infant car seats for new parents
• Free breakfast

40
HIRE THE RIGHT PERSON
41
Hire the Right Person

• Hiring for talent over experience
• Do not become fixated on key knowledge areas
• Be Prepared when Hiring
• Not the Warm body approach
• Use Updated job descriptions
• Balance with analysis
• Avoid Hiring by gut feeling alone
• Avoid Search for Superman syndrome
• Do not have too many people involved in the
  process

42
Hire the Right Person

• Encourage Diversity
• Discourage Hiring in your own Image
• Avoid Politically Motivated hiring
• Including the managers neighbors friends
  cousins boyfriend, or the I owe a favor
  approach

43
Hire the Right Person

• Bahavioural Interviewing - proof of performance
• Competency based interviews
• Give me an example when.
• Accurately describe the job
• Mix the good with the bad
• Consider the internal candidate
• Internal Job posting
• Dont allow managers to hold onto talent
• Encourage employee referrals
• Produces the highest source of long term hires

44
HELP YOUR TEAM AVOID FIRST DAY DISASTERS
45
Typical Disasters Employees First Day

1. No parking pass.
2. You had to watch 28 videos on how great it is to
   work here.
3. You signed a 300 page employee handbook stating
   you fully understood everything in it.
4. Your cubicle is being used as storage.
5. You were kept in the lobby for three hours.

46
Typical Disasters Employees First Day

• You signed two dozen forms asking for info you
  didnt bring.
• You go meet your boss only to learn that s/he is
  on vacation.
• Your name tag is misspelled.
• The senior vice president calls you at home and
  tells you of a reorganization.

47
NEW HIRE CHECKLIST
48
New Hire Checklist
Orientation is a process, not a program!
49
New Hire Checklist
Prior to the First Day

• Provide key written material such as handbook,
  etc.
• Arrange for office furnishings, computer,
  telephone, supplies, etc.
• Consider taking the new hire to lunch prior to
  the 1st day.
• Plan how you want the new hire to spend their
  first day
• Who to see
• Set schedule
• Have contact person call to answer questions
• Leave your own calendar open at the beginning and
  end of the first day
• Send a welcome basket or flowers to home (include
  spouse)

50
New Hire Checklist
Day one

• Meet with your employee early in the day to
  establish performance objectives and
  expectations.
• Introduce the new employee to as many people as
  possible, including the CEO
• Let them make their own opinions
• Review organization charts thoroughly.
• Have business cards available.
• Consider having a surprise welcome party.

51
New Hire Checklist
Day one

• Have someone tour them through the facility.
• Assign a first week mentor
• Schedule orientation sessions in groups where
  possible and have them in the afternoon or on the
  second day.
• Provide a new employee a reserved parking spot.
• Provide them with some company logo merchandise.

52
New Hire Checklist
During week one

• Introduce new employee very enthusiastically
  during a group meeting.
• Newspaper announcements
• Pair up the new employee with a peer.
• Schedule one-on-one meetings with key personnel.
• Give an appropriate and challenging assignment
  during the first week.
• Schedule any necessary training.
• Check in with new employee from time to time in
  first week.

53
New Hire Checklist
The first three months

• Schedule a 3-month feedback session.
• Allow employee to re-write their job description,
  if outdated.
• Have employee complete new hire survey.

54
SUMMARY
55
Summary

• You cannot achieve excellent retention without an
  excellent hiring process.
• Create dialog between employees and managers on
  work/life issues.
• Have managers re-recruit their employees
  regularly.
• Conduct employee opinion surveys regularly to
  measure job satisfaction and react to the
  results.

56
Summary

• Hold annual benefit and communication sessions to
  educate your employees.
• Conduct exit interviews to find out why they are
  leaving.
• Train managers and hold them accountable
• Keep managements attention on turnover.
• Orientation is a process, not a one day program.

57
Summary

• BECOME AN EMPLOYER OF CHOICE

58
Contact Details Bogdan Damjanovic, P.Eng.,
Owner Express Employment Professionals Tel (416)
590-9948