Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 1 Purpose of This.

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Purpose of This Training PresentationEmployee development often takes a backseat to improving business results. However, these goals are not mutually exclusive. This presentation and the accompanying PDF guidebook are designed to show managers how they can increase the returns on the time they spend developing hourly employees without increasing the time they dedicate to this activity.Quick Facts About This Training Key Audience(s): Managers of hourly employeesTime Requirement: 45 minutes as designed (can be lengthened or shortened as desired)Materials Needed: Slide projector, notepads, pens, whiteboard, or flip-charts with markersPresentation Guide for HR/Training Professionals(Please click on the View menu and select Notes Page to begin) How to UseThis slideshow is intended for presentation by HR professionals to groups of supervisors and line managers who manage hourly employees. Members wishing to offer these findings exclusively for self-study are encouraged to distribute the PDF version of this material directly to line managers. In most organizations, this presentation will enable HR practitioners to introduce managers to the content found in the PDF; in turn, managers can use the PDF version independently as reference material. Also available for follow-up are a couple of self-assessment exercises to the participants, mentioned later in the presentation. The presenter of this content should review the supplemental materials with training participants as part of the session.Before Using This PresentationBefore conducting this training for your managers and distributing the associated supplemental materials, please incorporate the following customizations:Remove this page.Identify the sections you wish to distribute to your managers and delete the rest (if applicable).Place your companys logo on each page in the lower-right corner (or delete the Insert Organization Logo Here box).

Corporate Leadership Council HR Leadership Council 2010 The Corporate Executive Board Company. All Rights Reserved.HRLC-AD6129510SYN #Note to MembersThis project was researched and written to address the research interests of several specificcompanies and as a result may not satisfy the information needs of all companies. TheCorporate Executive Board encourages readers who have additional questions about this topicto contact the Roundtable staff for further discussion. Descriptions or viewpoints containedherein regarding organizations profiled in this report do not necessarily reflect the policiesor viewpoints of those organizations.

Confidentiality of FindingsThis document has been prepared by the Corporate Executive Board for the exclusive use ofits research contacts. It contains valuable proprietary information belonging to the CorporateExecutive Board and each member should make it available only to those employees whorequire such access in order to learn from the material provided herein and who undertakenot to disclose it to third parties. In the event that you are unwilling to assume this confidentialityobligation, please return this document and all copies in your possession promptly tothe Corporate Executive Board.

Legal CaveatThe Corporate Executive Board has worked to ensure the accuracy of the information it providesto its readers. This report relies upon data obtained from many sources, however, and theCorporate Executive Board cannot guarantee the accuracy of the information or its analysis in allcases. Furthermore, the Corporate Executive Board is not engaged in rendering legal, accounting,or other professional services. Its reports should not be construed as professional advice onany particular set of facts or circumstances. Members requiring such services are advised toconsult an appropriate professional. Neither the Corporate Executive Board nor its programsare responsible for any claims or losses that may arise from a) any errors or omissions intheir reports, whether caused by the Corporate Executive Board or its sources, or b) reliance uponany recommendation made by the Corporate Executive Board.1Please make sure you have read and understand the information below, as it is important to understand the details behind our research methodology before explaining to other members of our organization. If you have any questions about this presentation or the data contained within, please contact your Account Manager. Developing Hourly Employees1Your Role as a ManagerCORPORATE LEADERSHIP COUNCIL HR LEADERSHIP COUNCILInsert Organization Logo Here1Hourly EmployeeAn employee who is paid by the hour for the work that he or she doesCorporate Leadership Council HR Leadership Council 2010 The Corporate Executive Board Company. All Rights Reserved.HRLC-AD6129510SYN #OBJECTIVES FOR TODAYS SESSIONUnderstand your role in the development of your direct reports.Identify critical employee-development activities that most significantly improve the performance of your hourly employees.Understand how you can become more effective at developing your hourly employees.Insert Organization Logo HereCorporate Leadership Council HR Leadership Council 2010 The Corporate Executive Board Company. All Rights Reserved.HRLC-AD6129510SYN #Talking Points

During our time together today, Well first understand why should you play a role in the development of your direct reports and why your role in hourly employee development is a need to have, not a nice to have. Next we will help you focus on the right activities. And by right, we mean the employee-development activities that will most significantly improve the performance of your direct reports. And then, understanding the things that make certain managers better than others at hourly employee development. In other words, what differentiates effective people developers from ineffective people developers? We will also circulate a couple of self assessment exercises for you to use after the training. We will talk about these later in the presentation.

Transition to the Next Slide: Let us now get into the first section of this presentation and review some data points from research on the importance of developing hourly employees.3The Business CaseActivities That Improve PerformanceIncreasing Your EffectivenessROAD MAP FOR THE TRAININGInsert Organization Logo HereSelf-AssessmentCorporate Leadership Council HR Leadership Council 2010 The Corporate Executive Board Company. All Rights Reserved.HRLC-AD6129510SYN #4

ARE YOU ACHIEVING A RETURN ON YOUR INVESTMENT IN HOURLY EMPLOYEE DEVELOPMENT?Insert Organization Logo HereIncreasing Returns on Time, Not Increasing Time You already devote significant time to developing your hourly employees; you dont necessarily need to allocate more time to this activity. Instead, you need to use this time more effectively. By doing so, you can significantly improve your direct reports performance.Managers invest roughly 20% of their time developing employees, but most struggle to perform well in this role.Average Time Managers Allocate to Employee-Development ActivitiesHourly Employees Ratings of Their Managers Development Efforts1 Roundtable research indicates that the average manager spends 10 minutes per day per employee on employee-development activities; assumes average manager has 10 direct reports.2 Representative activities include developing individual development plans, providing performance feedback, clearly explaining performance evaluation criteria, etc.Other Managerial ActivitiesDevelopment of Direct Reports1,2Neutral to Very IneffectiveSomewhat Effective to Very Effectiven = 3,078.n = 783.Source: CLCLearning and Development research; HR Leadership Council research.Corporate Leadership Council HR Leadership Council 2010 The Corporate Executive Board Company. All Rights Reserved.HRLC-AD6129510SYN #5Talking Points

Introduction to This Slide: Managers of hourly employees are faced with a difficult dual mandate: achieve business results and develop employees. The fact that these imperatives are not mutually exclusive is clear to many managers: roughly 75% view the development of their employees as a vital contribution to organizational success.

Indeed, despite considerable workplace demands, the average manager dedicates approximately 20% of his/her time to employee development. That is the pie-chart that you see on the left of the slide. Unfortunately, the evidence suggests that managers struggle to convert their time commitment into effective practice. The right pie chart suggests that across industries, less than half of surveyed hourly employees rate their managers as effective in their development efforts.

The key idea here is that you already devote significant time to developing your hourly employees; you dont necessarily need to allocate more time to this activity. Instead, you need to use this time more effectively. By doing so, you can significantly improve the performance of your direct reports.

Transition to the Next Slide: On the next slide, we will see how effective manager led development helps boosts hourly employee performance.THE ONE-WORD ARGUMENT FOR YOUR ROLE IN EMPLOYEE DEVELOPMENT: PERFORMANCEInsert Organization Logo HereHourly employees of managers who are very effective at development can outperform their peers by up to 29%.Impact of Manager-Led Development on Hourly Employee PerformanceIndexedHourly Employees Reporting to Manager AManager A is very ineffective at developing hourly employees.Hourly Employees Reporting to Manager BManager B is very effective at developing hourly employees.

Performance of Hourly Employees Reporting to Manager APerformance of Hourly Employees Reporting to Manager BTwenty-Nine Percent Performance ImprovementImprovement is directly attributable to Manager Bs effectiveness at employee development.29%100%129%Source: CLCLearning and Development research; HR Leadership Council research.Corporate Leadership Council HR Leadership Council 2010 The Corporate Executive Board Company. All Rights Reserved.HRLC-AD6129510SYN #6Talking Points

Introduction to This Slide:

The business case for playing an effective role in the development of your direct reports is pretty clear: the direct reports of managers who are effective at development activities outperform those with ineffective managers by as much as 29 percent. The example on this page serves to illustrate this point. Hourly employees reporting to Manager B (a strong developer of employees) will tend to outperform hourly employees reporting to Manager A (a weak developer of employees) by a margin of 29 percent. Without spending too much time on methodology, let me explain the researchers calculation:Take two groups of hourly employees, and assume that the only thing thats different about these two groups is the effectiveness of their managers at employee developmentone group reports to managers who are very effective at employee development, the other group reports to managers who are very ineffective at employee development. Remember, thats the only thing that differentiates these two groups. On average, the researchers found that the group reporting to the effective managers will have performance review scores that are 29 percent higher.

Transition to the Next Slide: On the next slide, let us review some more reasons for you to focus actively and aggressively on hourly employee development.

Frequently Asked Questions/Discussion Points:

What does the number 100 represent in white bar to the left?The scores here are indexed. That means 100 serves as a baseline scoreit represents the performance score of an employee reporting to a manager thats very ineffective at employee development.Who decides if a manager is effective or ineffective?Hourly employees were asked to rate their managers on a scale of 1 to 7. Manager A represents all managers with the lowest or weakest score, a 1. Manager B represents all managers with the highest or strongest score, a 7. How did you determine the baseline scores and the degree of performance improvement?The performance score of the Hourly Employee reporting to Manager A represents the average performance score of all hourly employees reporting to managers who were rated as very ineffective at employee development. Roughly speaking, the performance score of the Hourly Employee reporting to Manager B represents the average performance score of all hourly employees reporting to managers who are rated as very effective. The numbers are indexed to simplify the presentation, as the magnitude of difference is more important than the absolute scores themselves.

.FOUR MORE REASONS TO ACTIVELY DEVELOP YOUR TEAMInsert Organization Logo HereManagers who are effective at employee development have hourly employees who are more satisfied, more committed to the organization, and more likely to stay.Hourly Employees Reporting to Manager AManager A is very ineffective at developing hourly employees.Hourly Employees Reporting to Manager BManager B is very effective at developing hourly employees.Impact of Effective Manager-Led Development on Hourly Employee Attitudes and BehaviorsEmployee RetentionManager Bs hourly direct reports are 40% more likely to stay with the company than manager As hourly direct reports.Hourly Employees Reporting toManager AHourly Employees Reporting toManager BEmployee RetentionEmployee SatisfactionDiscretionary EffortOrganizational CommitmentHourly Employees Reporting toManager AHourly Employees Reporting toManager BHourly Employees Reporting toManager AHourly Employees Reporting toManager BHourly Employees Reporting toManager AHourly Employees Reporting toManager B= 41.4%Discretionary EffortManager Bs hourly direct reports are more likely to put extra effort into their jobs than manager As hourly direct reports.= 36.9%= 12.1%= 34.7%Source: CLCLearning and Development research; HR Leadership Council research.Corporate Leadership Council HR Leadership Council 2010 The Corporate Executive Board Company. All Rights Reserved.HRLC-AD6129510SYN #7Talking Points

Introduction to This Slide: On this slide, we take a look at two groups of hourly employees: The first, represented by the blue bars on the graphs on this page, are hourly employees who report to Manager A. Manager A is very ineffective at employee development. The gray bars on this page represent hourly employees who report to Manager B, who happens to be very effective at developing his or her employees. Now lets look at the differences we see in the attitudes and behaviors of these two groups of hourly employees. If we look at the upper left-hand graph, we see the impact that effective employee development has on employee retention. The direct reports of very effective managers are over 40 percent more likely to stay with the organization than the direct reports of very ineffective managers. Lets think of this in real terms: think of your highest performing employeedo you really...

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