building employee retention vs. loyalty
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Building Employee Retention vs. LoyaltyTRANSCRIPT
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Building Employee Retention vs. Loyalty
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Speakers: Jan BrockwayPerformance Management Product ManagerWorkscape
Robert MattsonSenior Manager, Product MarketingWorkscape
Moderator: Mike Prokopeak, Vice President, Editorial DirectorTalent Management magazine
Building Employee Retention vs. Loyalty
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Building Employee Retention vs. Loyalty
#TMwebinar
Mike ProkopeakManaging EditorTalent Management magazine
Building Employee Retention vs. Loyalty
#TMwebinar
Jan BrockwayPerformance Management Product ManagerWorkscape
Robert MattsonSenior Manager, Product MarketingWorkscape
Building Employee Retention and Loyalty
Jan BrockwayDirector of Product Management
Robert MattsonSr. Manager, Product Marketing
Copyright © 2010, Workscape, Inc. All rights reserved.
9
Workscape, An ADP Company HistoryWorkscape, An ADP Company History
Founded 1999 byCEO - Tim Clifford
August 2010
Copyright © 2010, Workscape, Inc. All rights reserved.
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Our SpeakerOur Speaker
Jan Brockway• 15 years experience in
implementing technology solutions to support business processes in the learning and HR space
• Responsible for the definition and execution of talent management processes at Sun Microsystems
• She holds a Bachelor’s in Business Management from Regis University in Denver and an MBA from the University of Wisconsin-Whitewater
Copyright © 2010, Workscape, Inc. All rights reserved.
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AgendaAgenda
• Setting and communicating goals to keep employees engaged
• Using limited compensation budgets to promote retention
• Leveraging future career options to keep high performers
• Supporting generational differences through shifting reward strategies
Copyright © 2010, Workscape, Inc. All rights reserved.
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Push & PullPush & Pull
TransparencyTransparency
Pay for Pay for PerformancePerformance
Career Career OptionsOptions
ChallengesChallenges
Annual ReviewsAnnual Reviews
EntitlementEntitlement
Dead-end JobDead-end Job
StagnationStagnation
Copyright © 2010, Workscape, Inc. All rights reserved.
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Setting and Communicating GoalsSetting and Communicating Goals
• A definition of a “good” goal– Uses the SMART methodology
• S - specific, significant, stretching
• M - measurable, meaningful, motivational
• A - agreed upon, attainable, achievable, acceptable, action-oriented
• R - realistic, relevant, reasonable, rewarding, results-oriented
• T - time-based, timely, tangible, trackable
– Is related to personal and/or organizational success
– Is added, deleted or adjusted as business needs change
– Is discussed and tracked regularly
Copyright © 2010, Workscape, Inc. All rights reserved.
14
Status Quo of Goal Setting and Status Quo of Goal Setting and Performance ReviewsPerformance Reviews
• Goal setting – Starts at the beginning of the year, including:
• Goals
• Competencies
• Development activities
– Ends at the completion of the year, including• Performance review
• Ratings
• Ranking
• Compensation change
Copyright © 2010, Workscape, Inc. All rights reserved.
15
Question #1Question #1
• During the year how often to your managers update and document goal status and goals to reflect changes in business goals?
– Weekly
– Monthly
– Quarterly
– Every 6 months
– Our managers don’t update goal status or change goals during the year
Copyright © 2010, Workscape, Inc. All rights reserved.
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Performance Management Performance Management Processes and Practices Report – September Processes and Practices Report – September 20092009
Copyright © 2010, Workscape, Inc. All rights reserved.
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Business ValueBusiness Value
“A system that drives improvement in employee performance drives improvement in your business. If you can’t use reviews to improve employee performance, then what is the point?”.
VP of HREuropean Manufacturer
As quoted in “Driving a High Performance Workforce”CLC Report 2002
Copyright © 2010, Workscape, Inc. All rights reserved.
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Traditional Performance ProcessTraditional Performance Process
JANJAN FEBFEB MAMARR
APRAPR MAMAYY
JUNJUN JULJUL AUAUGG
SEPSEP OCTOCT NONOVV
DECDEC
Set Annual Goals
Evaluate Performance
Undocumented Shifts to Goals and Non-communicated Status
Copyright © 2010, Workscape, Inc. All rights reserved.
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365 Performance Process365 Performance Process
JANJAN FEBFEB MAMARR
APRAPR MAMAYY
JUNJUN JULJUL AUAUGG
SEPSEP OCTOCT NONOVV
DECDEC
Set Annual Goals
Evaluate Performance
Goal Complet
e
Goal Complet
e
New Goal
GoalChange
Driving Employee/Manager Communication
Adjusted, Updated & Completed Goals
Copyright © 2010, Workscape, Inc. All rights reserved.
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Manager is the One of the KeysManager is the One of the Keys
• Build commitment to the organization– Strategy and Organization is
understood– Believe in the organization, senior
leadership, then their manager
• Managers need to actively manage performance– Continue to support the highly
engaged and top performers to manage any retention risks
– Convert the mildly engaged to highly engaged
– Convert the disengaged to engaged or move them out
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CONSISTENT FOCUS
Keep the focus consistent as best you can
Manager Keys:Manager Keys:Focus the Employee on What MattersFocus the Employee on What Matters
UNDERSTAND OBJECTIVES
Corporate, divisional and organizational objectives:How do they relate to me? How does what I do make a difference?
WHAT MATTERS MOST
Filter the job description and goals to the 3 – 5 things that really matter most
SMART GOALS
•Specific•Measurable•Actionable•Realistic•Time bound
Copyright © 2010, Workscape, Inc. All rights reserved.
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Suggestions on Increasing the Suggestions on Increasing the CommunicationCommunication
• Conduct a Stay Interview with each employee– What gets the employee up in the morning to come to work?
– What are they most excited about in their job?
– What is the most frustrating?
• Coaching and Feedback in the moment– Kudos on a job well done; e.g. a meeting the employee did a
great job facilitating– Specific feedback on a task completely well and on time; what was
done well; what do you want to see more of
– Discussion on what could have been done better; specific examples and coaching
Copyright © 2010, Workscape, Inc. All rights reserved.
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Using limited compensation budgets to Using limited compensation budgets to promote retentionpromote retention
• Budgets are limited, who do you retain?– You can’t retain the best employees unless you know who they are
• Who are they?– High performers
– High potentials
– High priority position holders
– High on succession lists
– The “Glue” People
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Shifting Budgets to Drive BehaviorsShifting Budgets to Drive Behaviors
3-7%
7-10%
1-2%
Top Contributor
Average Contributor
Lowest Contributor
PerformanceRating
Bonus (at target)
Copyright © 2010, Workscape, Inc. All rights reserved.
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Shifting Budgets to Drive BehaviorsShifting Budgets to Drive Behaviors
Significant payout opportunity for top contributors
Differentiated payments in the middle
No payment for lowest contributors
2-8%
9-12%
0%
Top Contributor
Above Average Contributor
1st-line Mgr Discretion
Solid Contributor
Lowest Contributor
PerformanceRating
Bonus (at target)
Copyright © 2010, Workscape, Inc. All rights reserved.
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Question #2Question #2
• Does your organization identify any of the following (Pick all that apply)?
– High performers
– High potentials
– High priority position holders
– Succession candidates
– High value employees
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Finding Your KeepersFinding Your Keepers
• High performers– Well documented and normalized performance processes
• High potentials– Performance and Succession process
• High priority position holders– Performance and Succession process
• Succession candidates– Succession
• High value employees– Key contributors
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Mapping the Social NetworkMapping the Social Network
www.connectedaction.net
Copyright © 2010, Workscape, Inc. All rights reserved.
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Leveraging future career options to Leveraging future career options to keep high performerskeep high performers
• Options keep employees engaged and retained
– Make career options visible and attainable
– Exploring the lattice not the ladder
– Align development activities with future positions
• Training
• Mentoring
• Short-term cross-training assignments
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Generation ErasGeneration Eras
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Supporting generational differences Supporting generational differences through shifting reward strategiesthrough shifting reward strategies
• Different values– What is important at this career point?
• Advancement
• Stability
• Learning
• Different communications methods
– Written
– Face-to-face
• Different communications tempo– Monthly
– Weekly
– Constant
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Question #3Question #3
• Which group is the most difficult to communicate with?– Baby boomers
– Gen X
– Gen Y
– We can’t seem to communicate with any of them
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Uncomplicating Compensation Uncomplicating Compensation CommunicationsCommunications
• Finding common touch-points/timeframes for travel and communications
• Applying cultural nuances
• Scripts, Visual Aids, Documentation/Guidance, Employee Communications, Personalized Documents
Copyright © 2010, Workscape, Inc. All rights reserved.
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In Summary…In Summary…
• Setting and communicating goals to keep employees engaged
– It’s a full-time job that requires attention and training
• Using limited compensation budgets to promote retention– This could mean a change in focus and processes
• Leveraging future career options to keep high performers– Targeting career options to the right people is as important as what
you offer them
• Supporting generational differences through shifting reward strategies
– For communications one size can’t fit all
Copyright © 2010, Workscape, Inc. All rights reserved.
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QuestionsQuestions
Thank You
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