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cel99.ppt - Corporate HR Partners

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					Retaining IT employees by being
   the "Employer of Choice”
        Andrew Strathdee - Director,
        Corporate HR Partners Ltd.
             Home Truths
• Retention is a voluntary act - employees
  stay because they want to
• People will leave…..the questions are when
  and why
           Key Questions

• What makes us attractive as an employer?
• What are we doing which makes employees
  dissatisfied?
• How are other organisations dealing with
  the problem?
• How do we hang on to our employees
  ……and longer?
           Competitor Information
• Competitor Strategies - Towers Perrin Survey of
  over 300 European Co's - Spring 1997
   –   Reward and Retain Best Performers
   –   Link Pay to Organisations Key Success factors
   –   Achieve/Maintain Market Competitiveness
   –   Pay for Competence
   –   Reward High Productivity, Quality and Customer
       Satisfaction
          What was being done?
• Introduction of variable pay
• Reviewing Performance assessment and appraisal
  and linking to pay and Career/skills development
• Reviewing pay and grading structures
• Extending Job/Role Evaluation
• Reviewing benefits, Terms and conditions/Perks
  as part of Total Compensation
• Introduction of Share Schemes
               Why the Change?
• Business Model is changing
  –   Globalisation of markets and technology
  –   Move to Customer and Quality Focus
  –   Address Performance Linkeage
  –   linking pay to business performance
  –   Competition for Staff
  –   The demographic time bomb is still ticking.…
  –   Need for Flexibility
  –   Improve Competitiveness
          Why the Change?
– Perceived Need for Better Pay differentiation based on
  performance
– Reflect flatter organisation structures
– Respond more rapidly to organisational change
– Reflect broader employee roles
– Enhance ability to value individual skills and
  competencies
– Increase flexibility of base pay
           Employer of Choice
• However, whilst.....…
  – Employee Commitment was seen as vital
  – People were seen as the differentiating factor
  – Winning Employee Commitment was the major reason for
    introducing changes to reward
• There was
  – Little consequent improvement reported in employee
    commitment and morale
  – Hardly any changes introduced with the benefit of employee
    consultation - only 12% reported doing this...........

          Are we surprised?
 Being the Employer of Choice........
• Employees need to be part of solution
   – We need to listen to them
   – We need the data - look at Opinion Survey Results as
     well as
      • Focus Groups
      • Manager Reports
      • HR Statistics
   – They tell you the hot issues - we all need to address
     them.
    Employee's perceptions at Lotus
•    Growing Up Lotus... learn to be a big corporation without losing sight of
     the core values that make Lotus unique.

•    Effective Management... ensure that managers are as skilled in managing
     people as they are in developing software.

•    Customer Connection... bridge the gap between what employees know
     about satisfying customers and what Lotus does to effectively deliver that
     expertise to those customers.

•    Market Attention... stay ahead of competitors through smart investments,
     aggressive marketing, and wise use of resources.

•    Valuing the Individual... provide fair reviews and reward programs,
     alternative career development options, inclusive communication, and
     consistent administration of policies and programs.
Source - Towers Perrin Lotus Opinion Survey
    Employee's perceptions - why
          choose Lotus?
•   Lotus... Keep "being Lotus" without losing sight of the core values that
    make Lotus unique , ie. not bureaucratic, delegates decision -making.

•   Effective Management... Develop Managers who have time to consult,
    coach, listen and lead - management is a skill which needs time and
    training.

•   Winning Team... stay ahead of competitors and building public image that
    makes you proud to work for Lotus.

•   Valuing the Individual...Offer training and career development options,
    inclusive communication, consistent administration of policies and
    programs and facilitate the integration of work and family.

•   Pay and Benefits...Not generally an issue     Source - Towers Perrin Lotus Opinion Survey
Employer of Choice - Employee's
          perceptions

Q? What would most likely help to retain good
performers?
                                              % selected
Better career advancement opportunities       27%
More effective management of people           20%
Better pay and benefits                       15%
Less work pressure and stress                 10%
Access to the latest technology               Technical




Source - Towers Perrin Lotus Opinion Survey
                           Employee’s Perceptions
      Which one item would most likely result in retaining good performers at
                    your company? (Result in Percentages)

                            Share schemes                 12


                  More role models for you   2

 More resources and budget to do your job        6

More confidence in company’s plans / upper
              management
                                                                                36

  Better career advancement opportunities                11

                     More interesting work   3


            Less work pressure and stress            7

                   Better pay and benefits               10

      More effective management of people                     13



     Source: CHRP/Hayward Survey - 1999
                 Employee’s perceptions
The following six items could motivate you to do your best work.

(Divide 100 points between the six elements, giving the most points to the items that motivate
you the most,
and the least points to those that do not. You may put all your points on one item, but your total
must = 100.)
      Compensation and benefits

     Access to best technologies

         Recognition and respect
                                                                                   % in Range
      Advancement opportunities

           Quality of co-workers

              Nature of the work

                                   0   5     10        15        20   25   30
                                                  Percentag es

    Source: CHRP/Hayward Survey - 1999
   Employee’s Perceptions
 How do you rate your pay compared to what you believe other companies offer
                             for similar work?

                         Your Pay vs Other Companies
                         60
                         50
         Pe rcen tag e




                         40
                         30                                                                        % in range
                         20
                         10
                          0




                                                                                     Much Higher
                                                          About Same
                              Much Lower




                                                                       Smwhat High
                                           Smwht Lowe




                                                        Rating

Source: CHRP/Hayward Survey - 1999
    Employee’s Perceptions
How would you rate your pay compared to what others in your location doing
                          similar work receive?

                        Your Pay vs Others in your company
                        60
                        50
        Pe rcen tag e




                        40
                        30                                                                        % in range
                        20
                        10
                         0




                                                                                    Much Higher
                                                         About Same
                             Much Lower




                                                                      Smwhat High
                                          Smwht Lowe




                                                       Rating

 Source: CHRP/Hayward Survey - 1999
   Employee’s Perceptions
How would you rate your benefits package compared to what you believe
                       other companies offer?

             Benefits Package vs Other Companies
                      40
      Pe rcen tag e




                      30

                      20                                                                          % in Range

                      10

                       0




                                                                                   Much Be tter
                                                       About Same
                           Much Worse




                                                                    Smwht Be tte
                                        Smwht Wors




                                                     Rating


Source: CHRP/Hayward Survey - 1999
   Employee’s Perceptions
To what extent is your company successful in attracting and retaining the
      people it needs with its current pay and benefits package?

                      Attraction and retention by package
                      50
                      40
      Pe rcen tag e




                      30
                                                                                                         % in Range
                      20
                      10
                       0
                           V Unsuc ce ss




                                                                                        V Succ es sful
                                                          No Different


                                                                         More Suc ces
                                           Smwht Unsu




                                                        Rating

Source: CHRP/Hayward Survey - 1999
                                   Employee’s Perceptions
To what extent do you agree that compared to other companies of the same size, your company
will provide good opportunities for you to advance your career and develop your potential?

                           35

                           30

                           25
           Pe rcen tag e




                           20
                                                                             % in range
                           15

                           10

                            5

                            0
                                  1        2         3        4        5
                                1 = Strongly Agree, 5 = Strongly Disag ree



  Source: CHRP/Hayward Survey - 1999
                            Employee Perceptions
In general, compared to other companies in your industry, how would you rate your company
as an employer?

                           40


                           30
           Pe rcen tag e




                           20                                                   % in range


                           10



                            0
                                  1         2         3        4            5
                                1 = One of the worst, 5 = One of the best

   Source: CHRP/Hayward Survey - 1999
                                 Employee Perceptions
Is it likely that you would look for a job outside your current employer in the next six months?

                            60

                            50

                            40
            Pe rcen tag e




                            30                                                 % in range

                            20

                            10

                             0
                                  1          2         3          4        5
                                      1 = Very unlikely, 5 = Very likely
      Source: CHRP/Hayward Survey - 1999
                          Employee Perceptions
 Your Company is clearly changing for the worse or better?
                     30

                     25

                     20
     Pe rcen tag e




                     15                                                       % in range

                     10

                      5

                      0
                             1         2         3         4         5
                     Clearly changing 1 = for the worst, 5 = for the better


Source: CHRP/Hayward Survey - 1999
     Aligning a New Reward Strategy
               ......The Deal
                         Business - The Strategic perspective
                         What the business requires to succeed




                                               h
                                               e
                                               T
                                               e
                                               a
                                               l
                                               D
                                                   Organisation - The
Culture -The Employee
                                                   Systems Perspective
perspective
                                                   How the organisation
What employees
                                                   operates, implements
need and perceive
 Source - Towers Perrin European Survey 1997
                                                   and manages
     Building "line of sight" from
     business strategy to the deal

              Define                  Align HR
  Define
             Business                Policies and
Business
             Objectives   The Deal    practices
Strategies




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                Employer of Choice

The Deal - The                  a
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Employee's View                 Base
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         Where do we go from here?
• It's not Rocket Science - most of us have the
  right tools already....…
   – We have the Vision and the Mission, what we lack is
     the Delivery!
   – Employees are taking the holistic view of Reward, it
     is not just pay and benefits.
   – To be the employer of choice we need to meet those
     TOTAL reward needs.
So - how do we hang on to them......
           and longer?
• Know your Employee Profile - analyse the
  population, age
• Review Market evidence internal and external
• Identify quickly fixable problems - what are your
  employees thinking about……...
   – Pay
   – Grading
   – Training Commitments?
       Performance Management

• Develop effective objective setting process
• Performance assessment and appraisal - link to
  pay and career/skills development - 6 monthly
  reviews
• Ensure pay review and appraisal run with the
  business strategy and corporate objectives
             People Development
• Develop Career ladders
• Involve Technical Management in the design and
  completion
• Extend Technical ladders in all job families into dual
  ladders
• Ensure recognition of technical contribution
  eg: Appoint Chief Technical Officer
• Introduce a “Fellow Program”
• Complete development plans for individuals
• Improve employability
                            Training

• Offer training materials as broadly as possible and encourage their use
• Developed Certification programmes either Company eg MCSE or
  CLE or get external validation of internal programmes
• Develop Learning Resources Centres
• Contract and ensure delivery of agreed training
• Monitor for improved performance after training
• Target training activities
• Identify training styles
• Make learning an approved company activity
             Communications

• Make good use of the technology
• Develop overall communications
  Shotgun mails, Company News Online, Company
  Meetings via Video and Teleconferencing, etc
• Ensure Technical and other support staff not
  treated as second class citizens to Sales and
  Marketing - give them a kick-off meeting too….
          Home / Work Balance

• Look at Parenting leave
• Introduce Sabbaticals
  (eg Extra four weeks after 6 and 15 years service
  for a useful purpose)
• Take your holidays programme! (New Idea!!!)
• Keep an eye on hours worked.…
• Monitor Holiday carry-over
                Review Contracts
• Look at Family Friendly policies
   –   Flexible Working
   –   Extend use of Variable/staggered Hours
   –   Use the technology - remote working
   –   Develop new contracts
   –   Develop Home/Flexible working contracts
   –   Experiment with Weekly/Monthly Hours contracts
   –   Promote Job sharing
       Manage Employees Better
• Employees perceive the need for Managers to
  take responsibility for managing and
  communicating, so…
  – Conduct regular Managing People Training - make an
    essential programme
  – Increase profile of Managing people effectively
     • Make a key element of a manager's objectives
     • Introduce Good Management Awards - nominated by staff
    Managing Better in practice...…

• Better compliance with current procedures
• Get tough about objective setting and appraisals being
  completed and appraisals conducted on time
• Salary reviews conducted and paid on time
• Consider 360 degree feedback, employee initiation
• Make sure "Line of sight" with business objectives is
  maintained in better written individual objectives
• Ensure Manager is responsible for career development
  planning
                      Pay
• Reviews Pay in line with business cycle (?6
  monthly in technical areas)
• Reward performance fairly against the criteria
• Use Discretionary Bonuses (frequently budget
  under-used)
• Variable pay - to link to business success
• Stock schemes to link reward to Business growth
• Incentives Schemes
                   Recognition

• Develop recognition mechanisms
  – 100% and Achievers Clubs
  – Awards - Wizard etc.
  – Team and Individual Recognition
• Use more small awards
  –   Dinner for two etc
  –   Shopping Vouchers
  –   Events
  –   Bottle of champagne
                    Benefits
• Review against total remuneration model
• Allow more flexibility within the model
• Give more choice in Pensions - especially
  investment choices
• Make Car leasing widely available
                 For the Future?

• What about time management as a motivator?
• Encourage family responsibilities to be considered in
  objectives - not just "work" based?
• Improve communication and report back and involve at all
  levels - staff report back sessions
• Publicly recognise good work outside the Company?
                 Conclusions

• The solutions are not simple or complete - they are
  a complex mixture of doing many things better
• Reward is much more than pay and benefits
• Career development, skills development and
  improving employability are crucial
• Know your employees and listen
• Retention is better than recruitment, even if only
  an extension of length of stay
• Make sure leavers are friends of the organisation

				
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