winning the talent war - recruiting, retention & rewards
DESCRIPTION
The war for talent is heading up. Winning the Talent War covers the "Three Rs" of talent management including Recruiting (in the modern world), Retention (employee engagement tactics), Rewards (compensation, benefits, total rewards).TRANSCRIPT
Winning the Talent WarThe Three R’s of Talent Management
Angie Salmon, Senior Vice President
CBIZ Human Capital Services & EFL Associates, Inc.
March, 2014
Recruiting
Retention
Rewards
Winning the Talent War – The 3 R’s
Recruiting
Post and Pray:
– Classified advertisements
– Traditional job boards: Monster.com,
Career Builder
Agencies
– Temporary help
– Employment agencies/Headhunters
One intro approach
Recruiting: The Past
Social Networking
– LinkedIn (e.g., “Groups” feature)
– Aggregators/Consolidators (Simply Hired, Indeed,
Flipdog)
– Facebook, Twitter (need to be perceived progressively)
Recruiting in a Modern World
Non-Line Networking
– Build/Maintain your talent pipeline
– Recruit your competitors’ top performers
– Pay attention to your employment brand/reputation
– Utilize competitors and vendors as referral sources
Associations
Recruiting in a Modern World
Search Firm Dynamics– Transparency (sharing of databases)– Milestones– Good candidates, fast– Recruitment Process Outsourcing (RPO)– Candidate Identification Firms / Name Generation
Firms– Off-shoring
Recruiting in a Modern World
Retention
Common perception, supported by monthly reports
from the U.S. Bureau of Labor Statistics
7.3% unemployment In reality, an interesting correlation exists between
unemployment percentage and education
Unemployment in an Improving Economy
Bureau of Labor Statistics Table A4: Employment status of the civilian population 25 years and over by educational attainment (seasonally adjusted) 2012
Bachelor’s degree or above 4.5%
Some college or an Associate’s degree 6.2%
High school graduate 8.3%
Less than high school diploma 12.4%
Right Management survey, more than half of
employees intend to leave their current job as the
economy improves:
Projected Turnover as the Economy Improves
http://www.right.com/news-and-events/press-releases/2012-press-releases/item24318.aspx
2012 2009
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%
A majority of employers are convinced that other
organizations are actively seeking their top people
– Agree: 43%
– Strongly agree: 13%
– Disagree: 11%
– Strongly disagree: 4%
– No opinion: 29%
Projected Turnover as the Economy Improves
www.worldatwork.org/waw/adimComment?id=35633
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
Management Teams need to play defense as their
offense is gearing up
Be warned: Talented employees have more options
– Why?
Top performers are being courted
– Talented executives are now susceptible to calls
from your competitors or executive recruiters
– Strengthen your firewalls, forewarn your admins
– Check LinkedIn profiles
Retaining Top Employees
Employee Engagement
Employee Engagement
“A heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work.”
--The Conference Board
Engaged employees = 70% less turnover
Employee Engagement
Highly engaged workplaces score high on all six.
Highly-engaged workplaces have
“signature” drivers.
Employee Engagement
Work/Life benefits, (flextime, etc.) Hiring practices New hire coaching
Work climate/vision
Supervisor behavior
Trust in senior leaders
Base pay
Bonus
Health Benefits
Tangibles
Intangibles
Short term Long term RetirementRetirement
Deferred CompDeferred Comp
““Job Security”Job Security”
Management/Supervisor training
Appropriate & timely recognition
Inform, and genuinely listen
Empowerment
Appropriate tools/resources
Address underperformers
Sufficient/Fair pay
Skill/Career Development & Enhancement
Improving Employee Engagement
Title enhancement (low cost but valued)
Flexible scheduling/Telecommuting
Executive coaching, employee concierge
Continuing education, tuition reimbursement
(grad school, certifications, special training such
as CCL, etc.)
Conferences (tangible, fun)
Team-building sessions (clears the air, brings frustrations into the
open)
Vacation, personal time, flex time
Pizza & Puppies
Engagement/Indulgence
Rewards
How are you paying vis-à-vis the market?
– Now is not the time to take things for granted
What tools are/should be at your disposal?
– Internet surveys
– Industry surveys (check sample size)
– Compensation consulting firms
Do you use a holistic performance management
system?
Rewards
Average salary increases– 2.8% in 2012– 3.0% in 2013– 3.1% in 2014 (expected)
Incentive Payout Trends– Non exempt: 5%– Exempt: 10-12%– Executive: 35-40%
Top Performers vs. Average Workers– 144% more in 2012– 152% more in 2013
Compensation Trends
WorldatWork 2013-2014 Salary Budget Survey
Money talks
– Pay winners like winners
– Raises, including backdating previous cuts
– Overdue bonuses or spot bonuses
– Reinstituting employer retirement contributions
– Communicate total benefits effectively
Rewards to Help Retention (and Recruiting)
Compensation Strategies
Best Practice
Matrix
Performance 1 2 3 4Exceptional 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 4Exceptional 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
Rewards
HR executives should sound the warning signals
– As economy turns around, top performers may be the first to leave – don’t take people for granted
– Act proactively to ensure retention of key talent
For answers to detailed questions on compensation topics, please contact:
CBIZ Compensation Consulting800-844-4510 [email protected]
Recruiting
– Attract individuals who will help move your
organization forward
Retention
– Create an environment of employee engagement
Rewards
– Pay your winners like winners
The Goal: Win the Talent War
Questions?
About Your Facilitator
EFL Associates/CBIZ Human Capital Services
- Top 2% retainer-based search firm
- Searches conducted in 47 states and six foreign countries
- Search practice complemented by compensation consulting services
Angie Salmon
- Senior Vice President, EFL Associates
- Co-leads the Board of Directors Practice
- Completed over 100 search engagements
[email protected] 913.234.1576 @SalmonSearch