strategic workforce retention &...

Strategic Workforce Retention & DevelopmentTalent Management in Turbulent Times

www.HiringSmart.ca

80% of the workforce is in some stage of

disengagement from their work

We have a Dismal Record

Only 14% of the workforce is in a role that draws from their strengths most of the time


94% of senior HR Professionals surveyed assert that their current workforce is

unprepared to deliver on company goals and meet business challenges


Funny Thing…

The issues and challenges facing HR Managers haven’t changed much in over half a century…

Funny Thing…

Neither has the hiring process…


www.HiringSmart.ca

Agenda

Three Bold Statements

Strategic Workforce Development

Harnessing the Chain Reaction


1. We’ve been measuring the wrong things. (and actually perpetuating our problem in the process)

2. We have to learn to fish where the fish are. (they’re not where Grandpa used to find them)

3. Résumés are dead. (sorry, but they are)

1. We’ve Been Measuring the Wrong Things…

Our First Bold Statement:

Talent Management: Measuring what Matters

Turnover

Customer Satisfaction

Profit

Productivity

Yield

Waste

Cost

ROIEBITDA

Sales

Earnings

Headcount

Fit with Manager

Fit with the Job

Fit with the Team

Fit with Company

ENGAGEMENT

Trailing IndicatorTrailing IndicatorLeading Indicators

Gather the right data

Learn as you go

Make the necessary adjustments

Engage the Knowledge Chain Reaction

Where to Begin?

2. We Have to Learn to Fish Where the Fish Are…

Our Second Bold Statement:

The game has changed…

What is your attraction strategy?

How many attraction strategies do you have?

Do you think they read Ads?

Yeah, Right!

So… Where do they get their Info?

Web 2.0 plus

The Prize for most innovative idea...

Web Presence is Crucial!

If they can’t find

you online…

They won’t find

You.

Everyone is Do’in It!

50% of Canadians

Average of 140 “friends” Business/professional

2x / 3 months

73% of all Canadians over 18

91% - Income over $95,000

47% - Income under $24,000

Where are Yesterday’s Classifieds Today?

Over 2M unique visitors every month

• Over 9B page views/month

• 30M unique visitors

• 9th place overall in N.A.

• Over 2M new job listings/month

You have to Give to Get

When you build your employment brand in Social Networks and online communities, you

Reach people you’ve never met beforeExpand the reach of your brandBecome part of the conversation

3. Résumés are Dead…

Our Final Bold Statement:

Attracting the Right Pool of Talent

… it’s more important than ever

before to do the unconventional

Whom are you Reaching?

•Active – Those actively seeking new opportunities?

•Passive – The minority who are fully engaged?

•Poised – The majority who are moderately disengaged but not looking?

Why Target the Poised?

• Typically better performers

• Typically more loyal

• Typically have better relationships at work

… but they typically don’t read the job ads or have a current résumé.


1. We’ve been measuring the wrong things. We need to learn to lead with Fit and Quality Measures

2. We have to learn to fish where the fish are. Building relationships online is crucial to attraction

3. Résumés are dead. They block your access to talent and fit


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Agenda





1. Environmental Scan

2. Current approaches to Workforce Planning

3. Integrating Fit into our HR Processes

Environmental Scan

In North America we are going to have more jobs than we will have people to fill them.

3030Source: Employment Policy Foundation analysis and projections of Census/BLS and BEA data.

Millions of People

Expected Labor Force and Labor Force Demand

0

50

100

150

200

250

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Labor Needed

Labor Available

The Lines Are Crossing: A Growing Shortage of Workers

140142144146148150152154

2004

2005

2006

2007

2008

Environmental Scan

Environmental Scan

The population is aging significantly

Growth in the working age population has declined

32

In 2000, A Fairly “Young” World ...

Under 5% 5% to 12.4% 12.5% to 20% Above 20%

Source: U.S. Census Bureau

Percent of Population Age 60+ 2000

33

... Rapidly Aging by 2025

Source: U.S. Census Bureau

Under 5% 5% to 12.4% 12.5% to 20% Above 20%

Percent of Population Age 60+ 2025

3434

Screeching to a Halt

-50%

0%

50%

100%

150%

200%

Source: Deloitte Research/UN Population Division (http://esa.un.org/unpp/) It’s 2008: Do You Know Where Your Talent Is? Why Acquisition and Retention Strategies Don’t Work, p.6

Mexico Brazil India China South Australia Canada US Netherlands Spain France UK Russia Italy Japan GermanyKorea

1970-2010 2010-2050

Growth in the Working-Age Population

Workforce Challenges

There are also “Generation Gap”issues that challenge your employees’ability to work together effectively

Relationships are Broken

Research indicates that 85% of employees leave their job due to conflicts in the supervisor-employee relationship.

Executives were found to spend a minimum of one month per year dealing with personality conflicts

Source: Robert Half International

Lack of depth is crippling

Average time on the job for people under 35 is less than 3 years

75%-85% of workers (under 35) expect to be employed by a new company within 12 months

1/3 of all people under 35 are in their first year of employment with their employer

The Case for Strategic Workforce Planning

These statistics are not isolated or temporary…this is the new “normal”

“Riding it out” is not an option – the spoils will go to those who act

Let’s look at a framework for Strategic Workforce Planning

ENGAGE

YOURCOMPANY

IDENTIFY(Scan the Environment)What do you have?What do you need?

Now & Future

Basic Strategic Workforce Planning Matrix

LEADERSHIP PIPELINE

(Bench Strength)

TRACKING

RETENTION

MEASURE RESULTS

(ROI)

ATTRACT/ACQUIRE

DEVELOPHow, Where, Who

Workforce Development Framework

1. Understanding employee fit /compatibility in current job

2. Understanding motivation and stress/conflict behaviors and

adapting to change

3. Optimizing working relationship with their

direct supervisor

4. Optimizing relationship with their work teams

5. Optimizing their leadership skills Employee

Workforce Planning Methodology

Begin with taking a current “Inventory”:

Using an Excel type spreadsheet, compile some information on your total employee base:

• Include name, position (job title), Mission critical/not, length of service, current age, department…


Other information could include:

• Senior Management/ Management/Supervisory?

• Exempt, non-exempt?

• Training and certificates

• Positions Held

• Promotable or not?

• Any other useful information…


Factor in Performance History:

1 = Top, Solid Performer

2 = Good on the job

3 = Improvement in performance would be helpful

4 = Marginal performance


What could this kind of information be used for? Things like:

• Proportion of workforce over 60

• Bench strength (succession planning)

• Distribution of performance

• Scan across departments, managers

• Many other applications…

Superior Producers

Top 16%

Average Producers

Middle 68%

Poor Producers

Bottom 16%

A Different View of Performance

Why does this matter?Unskilled / Semi-skilled

• ‘Average’ workers output = 19% more than ‘Non-producers’• ‘Superior’ workers output = 19% more than ‘Average’• ‘Superior’ workers output = 38% more than ‘Non-producers’

Skilled


Management / Professional


Source: “The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings”

Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp 262-274.

Imagine yours is a small company with…

50 Unskilled / Semi-skilled Workers

25 Skilled Workers

10 Managers

X 0.19 =

Average Salary?

Your cost per ‘Average’

# in this category

X = Unskilled

Skilled

Total Exposure if all ‘average’ (total i + ii + iii)

(i)

Manage’t

X 0.32 = X = (ii)

X 0.48 = X = (iii)

= (iv)

Cost of ‘Average’ vs. ‘Superior’ Performers

Your cost if all in this category ‘average’

$20,000 $3,800 50 $190,000

Percentage of salary investment at risk =

$40,000 $12,800 25 $320,000

$60,000 $28,000 10 $280,000

$790,000

30%

Fit as a Prerequisite of Performance

1. Understanding employee fit /compatibility in current job

2. Understanding motivation and stress/conflict behaviors and

adapting to change

3. Optimizing working relationship with their

direct supervisor

4. Optimizing relationship with their work teams

5. Optimizing their leadership skills Employee

Working from Fit changes everything…

Placing your hiring process online and basing your systems on data

about the four key aspects of fit changes

How you InterviewHow you Assess Candidates, andHow you manage your Talent

…it even changes the things that make you twitch!

Changing how you Interview

In the first interview, the candidate is in the driver’s seat like never before…

They choose the time and placeThey choose the job(s) they wishThey decide to continue in the process or not


For your part, interviewing for fit means learning some new tricks

Written and oral – different pathways, different information

Tertiary interview questionsUnderstanding the Big Three factors that

distinguish top performers from the rest

How they learnHow they accept responsibilityHow they use their sense of humour

Results

Behaviors

Beliefs

Attitudes


“WHO” FactorsAttitudes ExperiencesValues Learning StyleBeliefs Thinking StyleParadigms MotivatorsFilters Fears

“HOW” FactorsRelationships TeamingApproach to work Communication Problem Solving RespectEngaging Others ListeningHumour Diffusing Conflict

“WHAT” Factors

ExperienceCredentialsEducationAccomplishments Performance

Candidate


Attitudes drive the behaviors… which drive outcomes. We unearth candidate attitudes:

Towards styles of supervision

Towards types of work

Towards types of customers and coworkers

Towards integrity, reliability, work ethic

Interviewing for what matters…

Assessing for Fit

In looking at any range of performance, what could explain why you have some “top performers” and some “marginal performers”?

The main variables of performance relate to fit (remember Engagement and ROI)

Assessing for Fit

Understanding distortion is critical

Must measure what mattersHighlight differences between top performers and others

Must allow easy contrasting of individual to role/others

No such thing as pass/fail

Toolbox must cover all four aspects of fit

Profile XT

Window to who the person is… ‘core’ aspects of hardwiring that do not change appreciably over time

It is a Normative tool

Suitable from pre-hire through termination

Covers Fit with Job, Manager and Team

Full suite of reportsPlacement

Coaching

Career Planning/Succession Planning

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Thinking Style

Occupational Interests

Behavioral Traits

Learning Index

Verbal Skill

Verbal Reasoning

Numerical Ability

Numeric Reasoning

Enterprising

Financial/Admin

People Service

Technical

Mechanical

Creative

Energy Level

Assertiveness

Sociability

Manageability

Attitude

Decisiveness

Accommodating

Independence

Objective Judgment

Profile XT

PXT Job Summary Graph

• One-page graphical summary of candidate vs. position

• All critical information

• For experienced users

• Useful in multi-candidate reviews

• Quick overview of current staff

PXT Succession Planning Report

• One candidate vs. multiple positions

• Percentage match

• For succession planning, promotion, career planning uses

Layering in Style

Window to how the person is acting… aspects of personality that do reflect the environment

Not for pre-hire – best for understanding relationships with Manager and Team

Measures:• Productivity• Quality of Work• Initiative• Teamwork• Problem Solving• Ability to Change

Profiles Performance Indicator

Yields critical information:

• Response to job related stress and conflict

• Reviews whether an individual tends to be self-motivated or requires external motivation

Aspects of Culture Fit

Step One Survey:

• Prehire tool only

• Measures attitudes towards Integrity, Reliability, Work Ethic and Substance Abuse

• Generates scores and personalized interview guide

• Helps you understand who you are attracting and keeping

Aspects of Culture Fit

Customer Service Profile:

• Checks alignment in current culture and in new hires

• Measures attitudes towards key aspects of customer service philosophies

• Five different industry-specific versions

• Generates training plan for each individual and for the organization

Growing your Leaders

One of the early questions was “are your mission critical positions secure?”

In other words, “How’s your Leadership Pipeline?”

One of the best processes for Leadership Development is 360 degree feedback – but only if it’s done right!

Fosters continuous improvement to make today’s leaders better and to prepare the leaders of tomorrow

Gap Analysis

Leadership 360 Process

Individual Development Plan is developed

After a time frame, another Checkpoint is done, improvement noted, and new objectives established

Organizational Management Analysis creates an Organizational Development Plan and a summary of training needs

Review

A careful approach to Workforce Planning will yield:

Improved Retention

Improved Productivity

Higher Engagement

Reduced Turnover

Greater Working Synergy

INCREASED PROFITS

Review

Investing in taking an inventory and building a plan will give you one of the most significant returns on investment that you can make today

Engaged people will always compensate for flawed processes and adapt to carry your business through difficult times… no process will ever compensate for disengaged people!


www.HiringSmart.ca

Agenda




The Knowledge Chain Reaction

(1) Know how to attract better candidates

Learn what’s working (and not) with your current hiring processUncover where your best candidates are coming fromUnderstand how to attract the right talent

(2) Know who you’re hiring

Start measuring what matters – “who” the candidate really is and “how” they will perform in the jobCollect more relevant information about candidates before they come in for an interviewMake it easier for managers to make better hiring decisions


(3) Know what makes a good fit

Discover why some people fit and others don’t Begin selecting all candidates based on fitLearn how to best support new employees and set them up for success


(4) Know how to engage your existing people

Apply what you’ve learned about fit to existing employeesBegin matching each employee with the right job and the right team Become better equipped to address the underlying issues impacting performance


(5) Know how to create the right culture for success

Create a more engaged workforce focused on helping you achieve your business objectivesLearn to harness employee strengths so you can increase organizational capacity Turn your people into a competitive advantage


Summary

Three Bold StatementsMeasure what matters

You need to fish where the fish are

Résumés are dead

Strategic Workforce PlanningWeathering the storm is not a strategy

Taking inventory and building a plan is not hard

Fit gives you the critical handles to secure consistently superior results


Thank You!

For further information, or to receive a copy of this

presentation, please contact us

HiringSmart(800) 513-7277

[email protected]

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