cornerstoneretainingemployeesforfuturegrowthfinal[1]

8/3/2019 CornerstoneRetainingEmployeesforFutureGrowthFINAL[1]

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Retaining Employees for Future Growth

September 24, 2007

Charles CoyDirector of Product MarketingCornerstone OnDemand, Inc.



Poll Question #1

How would you describe your organization in regards

to retention?

± We do an excellent job ± very low turnover

± We do an OK job

± We are not very strong in this area



56% of HR professionals expect turnover to rise ± Source: CareerJournal.com

25% percent of Fortune 500 managers change jobs each year ± Source: Knowledge Infusion

What some HR professionals are doing to combat turnover:

± 62% provide tuition reimbursement

± 60% offer competitive vacation and holiday benefits ± 59% offer competitive salaries

± Source: SHRM-CareerJournal.com survey

76% of employees are looking for new employment opportunities,indicating that worker dissatisfaction is at a record high

± Source: SHRM, 2005

It costs a company on average $100,000 for each professional or managerial employee that leaves the company

± Source: US Department of Labor

Food for Thought



½ - 1%

HR / Payroll

expense

Up to70%

Labor

expense

Why Retention is Important



Source: Bersin & Associates

Why Retention is Important



Vague job description

Unclear objectives

No introductions and no mentor

Not having a dedicated place for the employee to sit / work

Scheduling an employee¶s first day on the job when the manager ison vacation

Leaving the employee to eat on their own the first few days in their job

Assigning your employee to be mentored by a negative, company-

bashing individual Assigning the employee busy work, nothing to do with why they

were hired

Sure Ways to Backfire

It May Seem Obvious«



Poll Question #2

Do you have specific programs in place to address

attrition/retention issues?

± Yes

± No

± Don¶t know

± Looking to roll out more comprehensive programs



Overview of key retention factors Get the right person on board

Ensure solid onboarding processes

Communicate expectations

Establish fair & achievable goals

Deliver consistent measurement

Provide coaching and feedback

Develop your people

Reward / compensate

Retention Best Practices Overview



± Hire the right person in the first place ± ³Getting the rightpeople on the bus´

Create detailed job description with competencies aligned

Ensure that competency proficiency requirements are determined

Ensure the role is aligned with the organizational objectives

Behavior-based testing

Best way to elicit useful information from candidates

Competency screening

Ensure you have defined your competency requirements

Ensure job descriptions cover those competencies

Staff adequately

Get the Right Person On Board



± Ensure effective onboarding and orientation of new hires Good orientation programs impact productivity and retention

Strategic onboarding programs that are high-touch and can be

individualized for varying needs increase new hire effectiveness,

retention, and satisfaction

Good onboarding programs are still the exception ± not the rule ± at most

companies

The process of acclimating to a new job or new company is one of the

most significant, yet unstudied factors in getting the best use of a

company's talent

Create a Pal or Buddy program

Ensure Effective Onboarding



Poll Question #3

In your organization, does your onboarding program

have an impact on employee retention?

± Yes, we find a direct correlation

± Yes, but we don¶t effectively measure the correlation

± Don¶t know

± No, we don¶t feel there is any impact

± We don¶t currently have an onboarding program today



± It¶s all about employee morale Make sure employees have realistic expectations about their jobs

Communicate expectations in initial interview and remain consistent

Put things in writing, such as in an employee handbook

Praise employees if they meet expectations Show they are appreciated

Listen to their feedback

Stay on message and remain consistent

Communicate Expectations



A Communication Gap

Leads to dissatisfaction

Leads to lesser performance

Leads to lower retention

Managerial

expectations

Employee

perception



± Establish fair and achievable goals Make sure individual roles are clearly defined

Make sure individual goals are clearly defined

Make sure company objectives are clearly defined

Make sure employees have realistic expectations about their jobs Make sure goals and objectives are measured and linked back to

career development

Establish Fair & Achievable Goals



Reliable & Consistent Measurement

The dreaded performance review has a

bad reputation: ± Time-consuming

± Administrative

± Uncomfortable

± Inconvenient

± Biased

± Inaccurate

± Poorly linked to job roles

± A formality to get my raise!

How do forward-thinking companies achieve

reliable and consistent measurement? ± Employee performance levels

± Linking behavior and performance

± Consistent measurement across jobs and locations



± An Effective Way to Shorten the Learning Cycle and Impact

Retention

Baby boomers as successful mentors

± They are looking to give back to their organizations

± But employers need to recognize that knowledge sharing is strategic to

their organization

Mentoring to create a supportive business environment

Helps craft / visualize career path

Direct correlation between positive mentoring and productivity,

employee satisfaction and retention

Provide Coaching & Feedback



± Develop Your People Provide opportunities for cross-training and career progression

Encourage collaboration, knowledge sharing and teamwork

Ensure your workforce has the skills to meet business objectives

Align properly prioritized corporate tasks with required training andskills

Tie training and development to performance objectives

Provide visibility of key training initiatives

Develop Your People



Develop Your People



Poll Question #4

In your organization, do learning & development

programs have an impact on employee retention?

± Yes, we find a direct correlation

± Yes, but we don¶t effectively measure the correlation

± Don¶t know

± No, we don¶t feel there is any impact

± We don¶t currently have an official development programtoday



± It is important to offer a combination of incentives andrewards to performers

Offer a competitive benefits package

Link pay to performance

Consider non-cash awards and incentives

Promote from within

Reward / Compensate



Recognize Generational Differences

Baby

Boomers Generation X Generation Y

Like more formal structure Prefer adaptable employees Need constant feedback on

performance

Prefer classroom style learning Appreciate laid-back

management style

Need leadership and guidance

Want dedicated employees withhigh work ethic Don¶t like office politics Want to understand the ³bigpicture´

May not conform to generational

differences

Like casual work environment Need a fun and collaborative

work environment

Tend towards hands-off

leadership

Base decisions on performance,

not tenure

Like to multi-task

Want employees that can ³figureit out´

Like flexibility and freedom Want tools to do their job



Business Challenge Root Cause Issues Best Practice Strategy

Improvingretention

Employees not

accurately placed in

the organization

No perceived

opportunities for

advancement No perceived reward

for performance

Subjective

performance

management

Unclear competencyrequirements

Unclear job roles

Development paths basedon competencies

Tangible outputs fromperformance managementcycle

Measure employeesagainst corporate goals

Internal recruiting andlateral movement

Identify employeespreviously overlooked for internal positions

Best Practice Strategy



Annualized Rate on Return (ROR) from 2002-2004

Source: CLC 2005 Succession Management Survey

Clear correlation between company financial performanceand effective talent management practices

3 year Total Shareholder Return* (TSR) relative to peers

(5,8%)

9,6%

-15%

-10%

-5%

0%

5%

10%

15%

Organizations withbottom tier

leadership & talentmanagement quality

Organizations withtop-tier leadership

and talentmanagement quality

Embrace a talent mindset and

make development a burningpriority

Broker talent across theorganization

Spotlight the best talent

Craft a winning employee valueproposition

Move mediocre people out of key jobs

-

Results of Effective Talent Management



Company Overview

Cornerstone OnDemand is the

leader in on-demand talent management software Over 800,000 users

Solutions for enterprise, mid-marketand small business

Tools address the employee

life cycle: Learning

Compliance

Performance

Compensation

Succession

Based in Los Angeles Sales, service, and customer support

offices globally

Cornerstone provides an excellent

integrated talent management solution for

performance, learning, and succession.Cornerstone is a ¶new breed·«Bersin & Associates ² PerformanceManagement

Industry Study, 2006.

³³´́



Marquee Client Roster Financial Services

Retail & DistributionTechnology & Media

Business Services Healthcare

Automotive & Manufacturing Energy & Utilities Gov·t & Non-Profit



Thank you.

www.cornerstoneondemand.com

[email protected]

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