Attracting and Retaining Talent

1
Attracting and Retaining Talent

• Clifford Sahayaraj
• TiE Dubai
• 26th Feb 2007

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A few home truths

• The reasons people join an organization are NOT
  the same reasons they leave the organization
• PUSH and PULL factors in employee attrition

• 90 of staff have a preference for stability
• Relatively few free agents or experimenters
• source CIPD

• Attraction and Retention are NOT the two sides of
  the same coin

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The Pull and Push of Attrition

• Pull is EXTERNAL to the organization
• Relates to the factors that make the external
  world more attractive than the current internal
  position
• Push is INTERNAL to the organization
• Relates to the factors that make the current
  internal position sub-satisfactory
• PULL is in the CIRCLE OF CONCERN while PUSH is in
  the CIRCLE OF INFLUENCE

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Push Attrition Why people leave
Im not me
Job security Economic security (revenue /
resources) Health Future Freedom from threats
Acceptance Teamwork Sense of commonality Associati
on
Challenge Achievement Opportunity Growth Developme
nt
Recognition Prestige Status Success PRIDE
Physical comfort Money Working environment Quality
of life Commuting
Im not known
I dont belong
I dont feel safe
Im not comfortable
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Typical attrition profiles push factors
Seasoned Leavers Not achieving my full
potential
gt 60 months
20
18 60 months
Experienced Leavers Lack of reward, recognition,
involvement, passion
20
1 18 months
60
Early Leavers Wrong employment decisions,
mis-match of expectations, poor induction
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Early Leavers Questions to ask ourselves

• Did we oversell the company / role / terms and
  conditions etc. at recruitment?
• Do we really know why the (new) employee joined
  us?
• Have we matched employee expectations with what
  we have to offer?
• Did we expend sufficient time and effort in
  inducting the new employee?
• Are our expectations of new staff realistic?
• Is our support infrastructure for new employees
  adequate?
• Have we attempted to change culture bottom-up?
• What could we do to prevent a recurrence?

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Experienced Leavers PRIDE

• P Passion
• R Reward and Recognition
• I Information
• D Dignity
• E Engagement

• P Purpose
• R Respect
• I Involvement
• D Distinction
• E Empowerment

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Instilling PRIDE some thoughts

• PRIDE in the company
• Reputation
• Making a difference to staff, customers and
  people
• Products, services, innovation
• PRIDE in ones self
• Opportunity to prove capability to self
• Appreciation
• PRIDE in the family
• E.g. Family days
• E.g. Childrens education
• PRIDE in the community
• Social responsibility
• Charity events

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The evolution of Employee Engagement
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Employee engagement is linked to business
27.6
Top 25
14.1
21
Three year Total Return to Shareholders Source
Watson Wyatts WORK Database
15.8
14.6
Middle 50
Employee Alignment
6.7
2.4
Bottom 25
Top 25
Middle 50
Bottom 25
Commitment / Motivation
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Increasing Engagement some thoughts
D E S I R E
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Seasoned Leavers Questions to ask ourselves

• Is the organization structured to cater for all
  our high potential staff?
• Is there a concentration of power / decision
  making at key levels?
• Is our organization pyramid too narrow at the
  top?
• Are we enabling our staff to release their
  potential?
• Or are we releasing our staff potential?
• Are seasoned staff sufficiently challenged?
• Have we become complacent?
• Is our competition becoming better than us?
• Are we in a sunset industry? Do we use dying
  technology?
• Can we re-invent ourselves?
• Is it time for change?
• For the sake of change

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The costs of attrition / replacement

• Direct costs
• Resignation process
• Recruitment and Selection
• Temporary cover
• Induction and training
• UK estimates of average direct costs per
  employee
• 7K for junior / mid level positions
• 12K for senior / management positions
• Indirect costs
• Opportunity loss
• Down time
• Competitive advantages

Source CIPD
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Is attrition a bad word?

• Attrition presents positive opportunities
• Skills refresh especially in technology
  industry / knowledge workers
• Growth and promotion for existing staff
• Fresh blood, new ideas, better business practices
• Attrition is not a problem when
• The value add from an individual employee is
  relatively low
• Its easy to find, on-board and train replacements
• The labor market is relatively stable