POSITIONING YOUR ORGANISATION TO ATTRACT AND RETAIN TOP TALENTCase Study of CNI’s Journey

Kenny OngCNI Holdings Berhad

Contents:

A. Background & Philosophy

B. Positioning

C. Attraction & Retention plans

D. Issues, Mistakes & Lessons Learned

E. For Start Ups…

F. Summary

Background & Philosophy

The anchor for all decisions

Before we start…

• Who designs your Talent Management programs?

• Are you in the Talent Pool?• Do you qualify?• “It takes a crook to catch a crook”

About: CNI

1. 18 years old

2. Core Business: MLM

3. Others: Contract Manufacturing, Export/Trading, eCommerce

4. Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan

5. Staff force: ± 500

6. Distributors: 250,000

7. Products: Consumer Goods and Services

A. Background & Philosophy

Principles Background & Implications

1.Founders

2.Senior leaders

3.Age, Gender, Race not a barrier

4.Customer-focused, really focused

5.Flexibility vs. Discipline

6.Ad-hoc

7.Project-based

8.Empowerment

9.Young talents leaving

Background: The Four Desperates

1. Desperate Competition

2. Desperate Consumer

3. Desperate Achievers

4. Desperate Changes

The 51.28% Theory

• Resign = Push + Pull > 51.28%

• If staff is Happy:=> 0 + Pull > 51.28%

Philosophy

Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”

Sergio Zyman

“Retention and Loyalty are useless if No Conversion is happening.”

Philosophy

“Retention and Loyalty are useless if No Conversion is happening.”

“Retention and Loyalty are useless if No Performance is happening.”

Philosophy

Loyalty is misleading…

• Heavy Consumption ≠ Loyalty

• Loyalty ≠ Heavy Consumption

• Good Performance ≠ Retention

• Retention ≠ Good Performance

Philosophy

“In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”

HBR March/April 1996

A. Background & Philosophy

Principles HR Philosophy

1.Equal / Fair

2.Happy / Productive

3.Hire Low, Train High

4.Performance vs Potential

5.SP drives TM

6.Talent Pool owned by the company

7.Retention / Engagement

Positioning

Retain, Remove, Refuse

Positioning

“Hope is not a strategy”John Maxwell

Positioning

• For who?

• Your Offer?

• Key Differentiator?

Attraction & Retention Plans

Target. Experience. Bingo

Targeting: Identify and Attract

• Who is your Talent?

: A Talent for others does not mean a Talent for you

CNI’s Talent Profile

• Unwanted by big MNCs• Small companies• Boring Environment• No Growth/Learning• No MBA• Passion, Values, IQ (streetsmart)• Appreciate Chaos• Multitask• Passion to Learn

Targeting: Identify and Attract

Group I

(Talent Pool)

23

45

PE

RF

OR

MA

NC

E

2 3 4 5

POTENTIAL• Identify

Targeting: Identify and Attract

Group I

(Talent Pool)

Group II

( Potential)

Group III

( Performance)

Group IV

(Counseling)

2 3 4 5

23

45

PE

RF

OR

MA

NC

E

POTENTIAL• Identify

**Additional Categories

Definition of ‘Premium’ staff1. Specially selected from the

TP.2. They have in addition, the

following attributes:a. High-profile in the field or

industryb. Loyalty provenc. Proven high work-rate and

great attituded. Undeniable contribution

and effortse. Highly looked upon and

respected by most stafff. Ability to multi-task and

assist in various areasg. Key people in CNI’s

Succession Plans

Definition of ‘Specialist’ Staff1. Has competencies (skills &

knowledge) in a particular professional field of work.

2. A staff is deemed to be a Specialist when all the following occurs:a. The particular Competency

(Skills or Knowledge or both) is highly required by CNI

b. Supply for the competency in the market is low but demand is high

c. The competency is difficult to learn, transfer and/or duplicate

Targeting: Identify and Attract

Retention

Experience Swing Ex

Oppose

Attract

“You don’t attract who you want. You attract who you

are”John Maxwell

Attract

1. What’s your main Differentiator?– Money? Opportunity? Big Projects? Big

Clients? Career Growth? Environment? Love and Fresh Air?

2. Fish where the Fish are… i.e. Jobstreet

3. Hire Strict. Refuse if possible.

4. Look for Passion, IQ, and the “Unwanted”

5. Who you retire determines who you attract

Attract: HR and Marketing

1. Who designs your Job Ads?1. It better be Marketing

2. Understand the psychology of a Talent Job Seeker when reading Job Ads

3. Not sure? Consult Jobstreet

4. Use Marketing weapons for Job Ads: brand logos, slogans, newspaper clips, awards, customer profile, video clips, web, banners etc.

Retention 1: Experience

Loyalty = Experience vs. Expectations

Solution Strategy: Talent Management Plan

Loyalty 1: Experience

1. Clear expectations

2. Resources

3. Maximize talents

4. Recognition

5. Caring Boss

6. Encourage development*

7. Expression

8. Company Mission

9. Co-workers**

10.Friends

11.Progress updates

12.Learn and Grow

• What “Expectations”? Refer Q12

Loyalty 2: Swing

Loyalty = Best alternative at the current moment until I find another alternative

Solution Strategy: Improve your Q12, or Try Your Best, or Live with It

Loyalty 1: Experience

• Talent Management Plan

PhilosophyOJT, Mentoring, Big-5, LP, PDP, SDP, Projects,

P/P Grid, SP Table, PDP, Premium,

Q12, C&B, ACDP, SCL, Transfers, Events, Recognition

P/P Grid, Q12, PA, SDP, SP

Development

Motivation

Selection

Evaluation

Strategy: C&B

1. Eliminate Staff Awards

2. Eliminate Staff Trips

3. Eliminate HOD trips

4. Remove Salary structure limitations for TP

5. Premium Group Pay

6. Year-round promotions/increment

7. Spot Bonus Pool

8. Additional Profit Sharing points for TP

9. ↑ Pay for Performers, ↓ pay for Non-Performers

10.Additional % during annual increments

11.Special Allowances

12.SCL Allowances

13.Flexitime

Loyalty 2: Swing

Swing Talents are “loyal” because:• Individual Relationships• Convenience (at that point in time)• Contractually tied-up• Direct Incentives*• No better alternative• Subordinates• No known alternative• CV friendly

Dangers of Direct Incentives

1. lessen internal motivation, 2. switch to mercenary mode, 3. do something and do not do something else, 4. bribe and fraud culture, 5. easier for competitors to recruit, 6. lessen teamwork & helpful culture, 7. less and less impact for same value, 8. mockery of base salary and employment

contract, 9. rebellion from non-incentivised staff, 10.end up incentivising everyone for everything?,

Try Your Best…

1. Over Promote

2. Loans

3. Spot Bonuses

4. Block recruiters

5. The Spouse

6. Toys

7. Glorified Titles

8. Forced Ambassador

9. “Position” the competition

10.Sell the Dream

11.Give them a Best Friend

12.Internal Trainer

Issues, Mistakes, and Lessons

If at first you don’t succeed, don’t try skydiving

Issues and Challenges

1. HODs unclear

2. HODs disagree/unsupportive of TM

3. HODs not committed to developing staff

4. Functional silos

5. HODs not willing to openly differentiate staff

6. Incompetent superiors/HODs to TP staff

7. Succession plan for specific positions is a moving target

Issues and Challenges

8. Difficult to evaluate Performance

9. Difficult to evaluate Potential

10.Aligning TM and SP with Business Goals

11.To the Talent Pool, it is more work, no reward

12.Unsynchronized and unmonitored training and development

13.Difficult for TP staff to allocate time for training and development

14. “Once in, always in” predicament

Mistakes and Lessons

1. Succession Planning = business directions2. CEO’s role3. Separate HRM and TND departments4. Measuring Potential is really difficult. 5. Two types of Talent: Leaders and Specialists6. Openly announcing the Talent Pool - painful!7. PDP group of rough diamonds8. Split Leadership Development9. Official annual ‘Event’ 10.TM = Annual Performance Appraisal

Discussions

Mistakes and Lessons

11.Quarterly Performance Appraisals

12.Change attitude and become arrogant.

13.Create a ‘Premium Group’

14.Projects and OJT assignments

15.HODs = TP caretakers

16.HODs can get isolated and jealous.

17.Under-performing HODs.

18.Rewards

19.Sell and allocate their TP candidates

20.TM = HRM

More problems we faced

1. Criticism of TP selection

2. Limited Funds

3. ‘Silo’ mentality

4. Competitor recruitment target!

5. Removal of Talent Pool members

Start Up & Summary

The end of the Beginning

For Starting Up…

1. Get the Business Strategy right

2. Link HR’s role to Strategy (e.g. BSC)

3. Clarify the HR Philosophy

4. Strengthen Performance Management System

5. Tackle the Learning Culture

6. Redirect Funds ($$)

7. Design simple Selection process

8. Develop and Reward focused on Talent Pool

9. Communicate throughout

10.Attend more Jobstreet conferences

Summary

1. Big matters/Small Matters

2. Differentiate of Die

3. Define “Talent”

4. No “Jerk” rule

5. Flat Structure?

6. The Jerk Boss

7. All aspects

8. Hire Strict

Summary

Segmented & Targeted

Attraction, Retention and Succession

STARS™

Thank You.

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