© 2002 hr strategies providing superior return on human capital investments robert ebers, president...

© 2002

HR Strategies ProvidingSuperior Return on Human

Capital Investments

Robert Ebers, PresidentAlyse Parise, Vice PresidentPresented to LISTnet HR SIG

January 9, 2002

© 2002

If you want 1 year of prosperity,

grow grain.

If you want 10 years of prosperity,

grow trees.

If you want 100 years of prosperity,

grow people.

- old Chinese proverb

© 2002

PurposePurpose

Provide strategic context about how to use “Smart HR” practices to build value in your organization.

© 2002

ProcessProcess

10 minutes - Introductions and Overview

15 minutes - “Dumb” HR Practices

20 minutes - Strategic Employee Engagement

10 minutes - Strategic HR Context

25 minutes - "Smart HR" Practices

10 minutes - Summary and Close

© 2002

PayoffPayoff

Information about how “Smart HR” practices can reduce costs, improve quality and increase value.

© 2002

We Help Leadership...We Help Leadership...

Align people with business strategies.

Deal with the "soft" factors driving human performance.

We help managers deal with the toughest issue: their people.

© 2002

Our ExpertiseOur Expertise

Surveys and Assessments

Training and Development

Strategic Planning

Culture Change

Team Building

Coaching

© 2002

NOT ENGAGED ENGAGED

ACTIVELY DISENGAGED

Who Needs Motivation?Who Needs Motivation?

Employees not engaged in their jobs.

Source:  Gallup Management Journal, 2001

Employees actively disengaged in their jobs.

Employees engaged in their jobs.

© 2002

Do I know what is expected of me at work?

Do I have the materials and equipment that I need in order to do my work right?

At work, do I have the opportunity to do what I do best every day?

In the past seven days, have I received recognition or praise for doing good work?

Does my supervisor, or someone at work, seem to care about me as a person?

Is there someone at work who encourages my development?

12 Simple Questions12 Simple Questions

© 2002

12 Simple Questions 12 Simple Questions (continued)(continued)

At work, do my opinions seem to count?

Does the mission or purpose of my company make me feel that my job is important?

Are my coworkers committed to doing quality work?

Do I have a best friend at work?

In the past six months, has someone at work talked to me about my progress?

This past year, have I had opportunities at work to learn and grow?

© 2002

Iceberg of IgnoranceIceberg of Ignorance

Ad

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© 2002

Employee transactions involve a million

moments of truth where the firm creates

an impression that is favorable or

unfavorable...

Moments of TruthMoments of Truth

© 2002

Costs of Low Employee Costs of Low Employee SatisfactionSatisfaction

Direct cost

Indirect costs much greater, for example,

Loss of discretionary behaviors:Insight

Originality

Intuition

Judgment

Humor

Inspiration

Leadership

Friendship

“Silent Majority”

Cost of new employees and customers

© 2002

Why Bother with Satisfaction?Why Bother with Satisfaction?

New employees are very expensive

Current employees are very valuable

Satisfied employees are very forgiving

Employees respond more strongly to how you treat them than anything else

© 2002

“Smart HR” Practices

More Productive and Engaged Workforce

Loyal Customers

Improved Business Performance...

Service - Profit ChainService - Profit Chain

© 2002

Sustainable Competitive Sustainable Competitive AdvantageAdvantage

“The ability to learn faster than your competitors may be the only sustainable competitive advantage.”

Arie De Geus

People are the key to maximizing

shareholder value and increasing profits

in today’s economy.

© 2002

Why EmployeesWhy Employees

Top Three Non-Compensation-Related Programs High

Performers Say Attract & Retain

Top Three Reasons High Performers Say They Resign

Opportunities for Advancement

Job Redesign

Learning New Skills in Current Job

Dissatisfaction with Company Management

Inadequate Opportunities for Promotion

Dissatisfaction with Pay

STAY LEAVE

Source: 1999 Strategic Rewards, Watson Wyatt

79%

69%

65%

56%

56%

50%

LeaveLeave or Stayor Stay

© 2002

““Smart HR” PracticesSmart HR” PracticesStrongest Links to Financial SuccessStrongest Links to Financial Success

Collegial, Flexible Workplace

Communications

Prudent Use of Resources

Rewards and Accountability

Recruiting

Source: 1999 HCI, Watson Wyatt

© 2002

““Smart HR”: Smart HR”: Collegial, Flexible Collegial, Flexible WorkplaceWorkplace

Flexible work arrangements

Encourage teamwork and cooperation

Perks do not vary with position

High employee satisfaction

All employees on first-name basis

Low emphasis on titles

Source: 1999 HCI, Watson Wyatt

© 2002

"Smart HR": "Smart HR": CommunicationsCommunications

Easy access to communication technologiesAmple opportunity to give ideas and suggestionsFinancial information is sharedInput into how work gets done Business plans and goals are shared

Source: 1999 HCI, Watson Wyatt

© 2002

"Smart HR": "Smart HR": Prudent Use of Prudent Use of ResourcesResources

Profit-sharing based on business unit’s success

Training even during unfavorable times

Training for advancement

Input into peer evaluation

Input into evaluating managers

Source: 1999 HCI, Watson Wyatt

© 2002

"Smart HR": "Smart HR": Rewards and Rewards and AccountabilityAccountability

Stock plan optionsTermination of unacceptable employeesHelp poor performers improve Top performers are significantly paid morePositions paid above market Link pay to business strategy Link performance appraisals to payProfit-sharing linked to firm’s overall success

Source: 1999 HCI, Watson Wyatt

© 2002

"Smart HR": "Smart HR": RecruitingRecruiting

Hire well-equipped professionalsLink recruiting to business plan Reputation as a desirable place to workHire well-equipped hourly new employeesEmployee input on hiring decisions Recruiting strategy for hiring critical positions

Source: 1999 HCI, Watson Wyatt

© 2002

3 Most Important People 3 Most Important People Issues?Issues?

Leadership development

Motivational pay

Training and development of their workforce

Source: Competing in a Global Economy 2001, Watson Wyatt

© 2002

Employee Commitment and Employee Commitment and the Bottom Linethe Bottom Line

Implementing “"Smart HR"” practices will create an energized, enthusiastic, educated workforce.

These practices provide difference between retaining a highly qualified workforce or searching needlessly and expensively for new talent.

© 2002

“Knowledge is the only

instrument of production

that is not subject to

diminishing returns.”

- J.M. Clark

© 2002

Peer Coaching: “Smart HR”Peer Coaching: “Smart HR”

What “Smart HR” Goals would you like to set for yourself?

What would it look like if you accomplished those goals?

What next steps must you take to accomplish your goals?

© 2002

Copyright InfoCopyright Info

The contents, or parts thereof, of “Smart HR Practices,” are provided for review

purposes only and may not be reproduced in any form or by any means without written

permission from Impletec.

88 Old Post RoadMount Sinai, NY 11766Voice: (516) 921-2200Voice: (631) 928-5333Fax: (631) 928-0907info@impletec.netwww.impletec.net

© 2002

kamath.rajesh@mahindra.com  kamath.rajesh@mahindra.com  

Dear All, Good afternoon, Some of the slides here would be of interest to you! Have a nice day,

Rajesh