three rs of talent management
TRANSCRIPT
Three Rs of Talent Management
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Recruitment . . . In a Modern World
Classified advertisements
Traditional job boards: Monster.com,
Career Builder
Industry networking
Search firms
- Temporary help agencies
- Employment agencies
- Contingency headhunters
- Retainer based executive
search firms
Recruiting: The Past
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Focus on your organizational “Brand”
Social Networking – Look Progressive
- Company website
- LinkedIn (e.g., company presence, “Groups” feature)
- Aggregators/Consolidators (Simply Hired, Indeed,
Flipdog, Craig’s List)
- Facebook, Twitter
Recruiting: The Present
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Nonline (In Real Life - “IRL”) Networking
- Build and maintain talent pipeline
- Recruit top performers from competitors
Know your competitors better than yourself
- Monitor employment brand and reputation
Glassdoor
- Utilize partners/vendors, board and staff referrals
- Face-to-face networking with industry contacts
Recruiting: The Present
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Associations (direct or indirect postings)
Be wary of job seekers in inventory
- Lean on references and due diligence
Recruiting: The Present
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Recruiting: The Present
Search Firm Dynamics
- Transparency (sharing of databases)
- Milestones
- Good candidates, fast
- Recruitment Process Outsourcing (RPO)
- Candidate Identification Firms / Name Generation Firms
- Off-shoring
Adhocracy
- Temp to perm . . . pros and cons
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Retention
Recognition
& Reward Feedback
& Support
Skill
Development
Is there a glut of candidates in the market?
5.5% Unemployment*
An interesting correlation exists between
unemployment percentage and education*
Unemployment in an Improving Economy
*February 2015, U.S. Department of Labor (seasonally adjusted)
Bachelor’s degree or above 2.7%
Some college or an Associate’s degree 5.1%
High school graduate 5.4%
Less than high school diploma 8.5%
More than 80% of employees intend to leave their
current job as the economy improves:
Projected Turnover as the Economy Improves
Right Management Group: http://www.right.com/news-and-events/press-releases/2014-press-releases/item26654.aspx
2014 2011
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%
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
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A majority of employers are convinced that other
organizations are actively seeking their top
performers (senior leaders and high potentials)
- Agree: 43%
- Strongly agree: 13%
- Disagree: 11%
- Strongly disagree: 4%
- No opinion: 29%
How will you combat this?
Projected Turnover as the Economy Improves
World At Work: www.worldatwork.org/waw/adimComment?id=35633
Management Teams need to play defense as their
offense is gearing up
Be warned: Corporate America is actively
using search firms again (C-Suite)
Top performers are being courted
- Talented executives are now susceptible to calls from
your competitors or executive recruiters
- Strengthen your firewalls, forewarn your admin staff
- Check LinkedIn profiles of high potentials
Retaining Top Employees
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“A heightened emotional or intellectual connection an
employee has for his/her job, organization, manager, or
coworkers, influences him/her to apply additional
discretionary effort to his/her work.”
- The Conference Board
Engaged employees = 70% less turnover
The Key to Retention - Employee Engagement
Highly engaged
workplaces score
high on all six
Highly engaged
workplaces have
“signature” drivers
Employee Engagement
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Employee Engagement Tactics
• Base Pay
• Bonus
• Health Benefits
Tangibles
Intangibles
Short term Long term
• Retirement
• Deferred Comp
• Job Security
• Work/Life Balance
• Hiring Practices
• New-Hire Coaching
• Work Climate/Vision
• Supervisor Behavior
• Trust in Leaders
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Identify the people you want to keep . . .
Title enhancement (low cost, but valued)
Flexible scheduling (telecommuting)
Recognition, stretch assignments
Executive coaching, employee concierge
Training, development, continuing education
Sales conferences (tangible, fun)
Team-building sessions (clears the air, brings
frustrations into the open)
Vacation, personal time, flex time
Tactics to Help Retention
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and tell them
Money talks
- Communicate total benefits effectively
- Pay winners like winners
– Raises, including backdating previous cuts
– Long overdue bonuses or spot bonuses (when
someone says “it is not about the money” – think
the opposite)
Accentuate the Philanthropic Persona of the
organization (e.g., millennials)
Tactics to Help Retention (continued….)
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Rewards
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Average salary increases
- 3.0% in 2013
- 3.0% in 2014
- 3.1% in 2015 (projected)
Incentive payout trends
- Nonexempt: 5%
- Exempt: 10-12%
- Executive: 35-40%
Compensation Trends
World At Work: http://www.worldatwork.org/waw/adimLink?id=75547
How are you paying vis-à-vis the market?
- Now is not the time to take things for granted
- It’s a seller’s market
What tools are/should be at your disposal?
- Internet surveys, industry surveys (check sample size)
- Compensation consulting firms (“in vogue”)
Do you use a holistic performance management
system?
Rewards
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Companies have reinstated perks
- 41% have brought back all or some
of perks that were cut during the
recession
Organizations are introducing new
tools to retain and attract the best and brightest
- 24% of have introduced entirely new perks
Perks: Making a Comeback
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Many organizations are continuing a conservative
approach, except for top performers
HR executives should sound the warning signals
- As economy continues to turn around, top performers
will be the first to leave
- Should act proactively to ensure retention of key talent
- Do not take people for granted … AGAIN!
Compensation Trends
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Compensation Strategies
Best Practice
Matrix
Performance 1 2 3 4
Exceptional 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 4
Exceptional 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
CBIZ Compensation Consulting
Employees are more savvy – evaluating
compensation holistically (benefits, etc.)
Future of health care benefits is on the minds of most
employers and employees
- Health premiums are increasing dramatically since the
passage of ACA
- Family coverage renewal price increases a concern
Critical need: understanding how to design or revise
plans to meet minimum essential coverage
Rewards: Potpourri
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Annual incentive payouts (STI) are getting higher
and incentive pool funding is rising, accordingly
Incentive compensation will continue to increase as
a percentage of overall compensation
IRS continues to show interest in executive
compensation among nonprofit organizations
Rewards: Potpourri
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Questions?
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Jay Meschke is President of CBIZ Human Capital
Services & EFL Associates with more than 20
years of experience in the human capital space
- Is routinely sought after as a subject matter expert
in the field of executive search, recruiting, career
management, and human capital services
- Has been quoted in numerous publications such as US
News & World Report, MSNBC.com, CNN.com, The Wall
Street Journal, Employee Benefit News, Entrepreneur
Magazine, Business Week, TheStreet.com, Investors
Business Daily, Human Resource Executive, and Kennedy
Publications
About Your Speaker
[email protected] 913.234.1575 twitter.com/@jay_meschke