Winning the Talent WarThe Three R’s of Talent Management
Angie Salmon, Senior Vice President
CBIZ Human Capital Services & EFL Associates, Inc.
March, 2014
Recruiting
Retention
Rewards
Winning the Talent War – The 3 R’s
Recruiting
Post and Pray:
– Classified advertisements
– Traditional job boards: Monster.com,
Career Builder
Agencies
– Temporary help
– Employment agencies/Headhunters
One intro approach
Recruiting: The Past
Social Networking
– LinkedIn (e.g., “Groups” feature)
– Aggregators/Consolidators (Simply Hired, Indeed,
Flipdog)
– Facebook, Twitter (need to be perceived progressively)
Recruiting in a Modern World
Non-Line Networking
– Build/Maintain your talent pipeline
– Recruit your competitors’ top performers
– Pay attention to your employment brand/reputation
– Utilize competitors and vendors as referral sources
Associations
Recruiting in a Modern World
Search Firm Dynamics– Transparency (sharing of databases)– Milestones– Good candidates, fast– Recruitment Process Outsourcing (RPO)– Candidate Identification Firms / Name Generation
Firms– Off-shoring
Recruiting in a Modern World
Retention
Common perception, supported by monthly reports
from the U.S. Bureau of Labor Statistics
7.3% unemployment In reality, an interesting correlation exists between
unemployment percentage and education
Unemployment in an Improving Economy
Bureau of Labor Statistics Table A4: Employment status of the civilian population 25 years and over by educational attainment (seasonally adjusted) 2012
Bachelor’s degree or above 4.5%
Some college or an Associate’s degree 6.2%
High school graduate 8.3%
Less than high school diploma 12.4%
Right Management survey, more than half of
employees intend to leave their current job as the
economy improves:
Projected Turnover as the Economy Improves
http://www.right.com/news-and-events/press-releases/2012-press-releases/item24318.aspx
2012 2009
Yes , I intend to leave 86% 60%
Maybe, so I’m networking 8% 21%
Not likely, but I’ve updated my resume
1% 6%
No, I intend to stay in my current position
5% 13%
A majority of employers are convinced that other
organizations are actively seeking their top people
– Agree: 43%
– Strongly agree: 13%
– Disagree: 11%
– Strongly disagree: 4%
– No opinion: 29%
Projected Turnover as the Economy Improves
www.worldatwork.org/waw/adimComment?id=35633
Difficult to measure . . . soft versus hard dollars
Rule of Thumb: 33% to 150% percent of the annual
salary
• Salary costs
• Recruiting expenses
• Downtime and training time
If true: The cost to replace a $100,000 position
ranges from $33,000 to $150,000, depending on the
complexity of the position
Hidden Costs of Losing Tenured Employees
Management Teams need to play defense as their
offense is gearing up
Be warned: Talented employees have more options
– Why?
Top performers are being courted
– Talented executives are now susceptible to calls
from your competitors or executive recruiters
– Strengthen your firewalls, forewarn your admins
– Check LinkedIn profiles
Retaining Top Employees
Employee Engagement
Employee Engagement
“A heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work.”
--The Conference Board
Engaged employees = 70% less turnover
Employee Engagement
Highly engaged workplaces score high on all six.
Highly-engaged workplaces have
“signature” drivers.
Employee Engagement
Work/Life benefits, (flextime, etc.) Hiring practices New hire coaching
Work climate/vision
Supervisor behavior
Trust in senior leaders
Base pay
Bonus
Health Benefits
Tangibles
Intangibles
Short term Long term RetirementRetirement
Deferred CompDeferred Comp
““Job Security”Job Security”
Management/Supervisor training
Appropriate & timely recognition
Inform, and genuinely listen
Empowerment
Appropriate tools/resources
Address underperformers
Sufficient/Fair pay
Skill/Career Development & Enhancement
Improving Employee Engagement
Title enhancement (low cost but valued)
Flexible scheduling/Telecommuting
Executive coaching, employee concierge
Continuing education, tuition reimbursement
(grad school, certifications, special training such
as CCL, etc.)
Conferences (tangible, fun)
Team-building sessions (clears the air, brings frustrations into the
open)
Vacation, personal time, flex time
Pizza & Puppies
Engagement/Indulgence
Rewards
How are you paying vis-à-vis the market?
– Now is not the time to take things for granted
What tools are/should be at your disposal?
– Internet surveys
– Industry surveys (check sample size)
– Compensation consulting firms
Do you use a holistic performance management
system?
Rewards
Average salary increases– 2.8% in 2012– 3.0% in 2013– 3.1% in 2014 (expected)
Incentive Payout Trends– Non exempt: 5%– Exempt: 10-12%– Executive: 35-40%
Top Performers vs. Average Workers– 144% more in 2012– 152% more in 2013
Compensation Trends
WorldatWork 2013-2014 Salary Budget Survey
Money talks
– Pay winners like winners
– Raises, including backdating previous cuts
– Overdue bonuses or spot bonuses
– Reinstituting employer retirement contributions
– Communicate total benefits effectively
Rewards to Help Retention (and Recruiting)
Compensation Strategies
Best Practice
Matrix
Performance 1 2 3 4Exceptional 6.5% 5.5% 5.0% 4.0%
Exceeds Expectation 6.0% 5.0% 4.0% 3.0%Effective 5.0% 4.0% 3.0% 2.0%
Development Needed 2.0% 1.0% 0.0% 0.0%Critical Need for Improvement 0.0% 0.0% 0.0% 0.0%
Quartile in Range
Typical
Matrix
Performance 1 2 3 4Exceptional 3.5% 3.5% 3.0% 3.0%
Exceeds Expectation 3.0% 3.0% 3.0% 3.0%Effective 2.5% 2.5% 2.5% 2.0%
Development Needed 2.5% 2.5% 2.0% 2.0%Critical Need for Improvement 2.5% 2.0% 2.0% 2.0%
Quartile in Range
Rewards
HR executives should sound the warning signals
– As economy turns around, top performers may be the first to leave – don’t take people for granted
– Act proactively to ensure retention of key talent
For answers to detailed questions on compensation topics, please contact:
CBIZ Compensation Consulting800-844-4510 [email protected]
Recruiting
– Attract individuals who will help move your
organization forward
Retention
– Create an environment of employee engagement
Rewards
– Pay your winners like winners
The Goal: Win the Talent War
Questions?
About Your Facilitator
EFL Associates/CBIZ Human Capital Services
- Top 2% retainer-based search firm
- Searches conducted in 47 states and six foreign countries
- Search practice complemented by compensation consulting services
Angie Salmon
- Senior Vice President, EFL Associates
- Co-leads the Board of Directors Practice
- Completed over 100 search engagements
[email protected] 913.234.1576 @SalmonSearch
