Building Employee Retention vs. Loyalty

You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference.

If you would like to join the teleconference, please dial 1.866.469.3239 and enter access code: xxx xxx xx.

You will be on hold until the seminar begins.

Building Employee Retention vs. Loyalty

#TMwebinar

Speakers: Jan BrockwayPerformance Management Product ManagerWorkscape

Robert MattsonSenior Manager, Product MarketingWorkscape

Moderator: Mike Prokopeak, Vice President, Editorial DirectorTalent Management magazine


#TMwebinar

Tools You Can Use• Q&A

– Click on the Q&A icon on your floating toolbar in the bottom right corner.

– Type in your question in the space at the bottom.

– Click on “Send.”

#TMwebinar

Tools You Can Use• Polling

– Polling question will appear in the “Polling” panel.

– Select your response and click on “Submit.”

#TMwebinar

Frequently Asked Questions

1. Will I receive a copy of the slides after the webinar?YES

2. Will I receive a copy of the webinar recording?YES

Please allow up to 2 business days to receive these materials.

#TMwebinar


#TMwebinar

Mike ProkopeakManaging EditorTalent Management magazine


#TMwebinar

Jan BrockwayPerformance Management Product ManagerWorkscape

Robert MattsonSenior Manager, Product MarketingWorkscape

Building Employee Retention and Loyalty

Jan BrockwayDirector of Product Management

Robert MattsonSr. Manager, Product Marketing

Copyright © 2010, Workscape, Inc. All rights reserved.

9

Workscape, An ADP Company HistoryWorkscape, An ADP Company History

Founded 1999 byCEO - Tim Clifford

August 2010


10

Our SpeakerOur Speaker

Jan Brockway• 15 years experience in

implementing technology solutions to support business processes in the learning and HR space

• Responsible for the definition and execution of talent management processes at Sun Microsystems

• She holds a Bachelor’s in Business Management from Regis University in Denver and an MBA from the University of Wisconsin-Whitewater


11

AgendaAgenda

• Setting and communicating goals to keep employees engaged

• Using limited compensation budgets to promote retention

• Leveraging future career options to keep high performers

• Supporting generational differences through shifting reward strategies


12

Push & PullPush & Pull

TransparencyTransparency

Pay for Pay for PerformancePerformance

Career Career OptionsOptions

ChallengesChallenges

Annual ReviewsAnnual Reviews

EntitlementEntitlement

Dead-end JobDead-end Job

StagnationStagnation


13

Setting and Communicating GoalsSetting and Communicating Goals

• A definition of a “good” goal– Uses the SMART methodology

• S - specific, significant, stretching

• M - measurable, meaningful, motivational

• A - agreed upon, attainable, achievable, acceptable, action-oriented

• R - realistic, relevant, reasonable, rewarding, results-oriented

• T - time-based, timely, tangible, trackable

– Is related to personal and/or organizational success

– Is added, deleted or adjusted as business needs change

– Is discussed and tracked regularly


14

Status Quo of Goal Setting and Status Quo of Goal Setting and Performance ReviewsPerformance Reviews

• Goal setting – Starts at the beginning of the year, including:

• Goals

• Competencies

• Development activities

– Ends at the completion of the year, including• Performance review

• Ratings

• Ranking

• Compensation change


15

Question #1Question #1

• During the year how often to your managers update and document goal status and goals to reflect changes in business goals?

– Weekly

– Monthly

– Quarterly

– Every 6 months

– Our managers don’t update goal status or change goals during the year


16

Performance Management Performance Management Processes and Practices Report – September Processes and Practices Report – September 20092009


17

Business ValueBusiness Value

“A system that drives improvement in employee performance drives improvement in your business. If you can’t use reviews to improve employee performance, then what is the point?”.

VP of HREuropean Manufacturer

As quoted in “Driving a High Performance Workforce”CLC Report 2002


18

Traditional Performance ProcessTraditional Performance Process

JANJAN FEBFEB MAMARR

APRAPR MAMAYY

JUNJUN JULJUL AUAUGG

SEPSEP OCTOCT NONOVV

DECDEC

Set Annual Goals

Evaluate Performance

Undocumented Shifts to Goals and Non-communicated Status


19

365 Performance Process365 Performance Process

JANJAN FEBFEB MAMARR

APRAPR MAMAYY

JUNJUN JULJUL AUAUGG

SEPSEP OCTOCT NONOVV

DECDEC

Set Annual Goals

Evaluate Performance

Goal Complet

e

Goal Complet

e

New Goal

GoalChange

Driving Employee/Manager Communication

Adjusted, Updated & Completed Goals


20

Manager is the One of the KeysManager is the One of the Keys

• Build commitment to the organization– Strategy and Organization is

understood– Believe in the organization, senior

leadership, then their manager

• Managers need to actively manage performance– Continue to support the highly

engaged and top performers to manage any retention risks

– Convert the mildly engaged to highly engaged

– Convert the disengaged to engaged or move them out


21

CONSISTENT FOCUS

Keep the focus consistent as best you can

Manager Keys:Manager Keys:Focus the Employee on What MattersFocus the Employee on What Matters

UNDERSTAND OBJECTIVES

Corporate, divisional and organizational objectives:How do they relate to me? How does what I do make a difference?

WHAT MATTERS MOST

Filter the job description and goals to the 3 – 5 things that really matter most

SMART GOALS

•Specific•Measurable•Actionable•Realistic•Time bound


22

Suggestions on Increasing the Suggestions on Increasing the CommunicationCommunication

• Conduct a Stay Interview with each employee– What gets the employee up in the morning to come to work?

– What are they most excited about in their job?

– What is the most frustrating?

• Coaching and Feedback in the moment– Kudos on a job well done; e.g. a meeting the employee did a

great job facilitating– Specific feedback on a task completely well and on time; what was

done well; what do you want to see more of

– Discussion on what could have been done better; specific examples and coaching


23

Using limited compensation budgets to Using limited compensation budgets to promote retentionpromote retention

• Budgets are limited, who do you retain?– You can’t retain the best employees unless you know who they are

• Who are they?– High performers

– High potentials

– High priority position holders

– High on succession lists

– The “Glue” People


24

Shifting Budgets to Drive BehaviorsShifting Budgets to Drive Behaviors

3-7%

7-10%

1-2%

Top Contributor

Average Contributor

Lowest Contributor

PerformanceRating

Bonus (at target)


25

Shifting Budgets to Drive BehaviorsShifting Budgets to Drive Behaviors

Significant payout opportunity for top contributors

Differentiated payments in the middle

No payment for lowest contributors

2-8%

9-12%

0%

Top Contributor

Above Average Contributor

1st-line Mgr Discretion

Solid Contributor

Lowest Contributor

PerformanceRating

Bonus (at target)


26


• Does your organization identify any of the following (Pick all that apply)?

– High performers

– High potentials

– High priority position holders

– Succession candidates

– High value employees


27

Finding Your KeepersFinding Your Keepers

• High performers– Well documented and normalized performance processes

• High potentials– Performance and Succession process

• High priority position holders– Performance and Succession process

• Succession candidates– Succession

• High value employees– Key contributors


28

Mapping the Social NetworkMapping the Social Network

www.connectedaction.net


29

Leveraging future career options to Leveraging future career options to keep high performerskeep high performers

• Options keep employees engaged and retained

– Make career options visible and attainable

– Exploring the lattice not the ladder

– Align development activities with future positions

• Training

• Mentoring

• Short-term cross-training assignments


30

Generation ErasGeneration Eras


31

Supporting generational differences Supporting generational differences through shifting reward strategiesthrough shifting reward strategies

• Different values– What is important at this career point?

• Advancement

• Stability

• Learning

• Different communications methods

– Written

– Email

– Face-to-face

• Different communications tempo– Monthly

– Weekly

– Constant


32


• Which group is the most difficult to communicate with?– Baby boomers

– Gen X

– Gen Y

– We can’t seem to communicate with any of them


33

Uncomplicating Compensation Uncomplicating Compensation CommunicationsCommunications

• Finding common touch-points/timeframes for travel and communications

• Applying cultural nuances

• Scripts, Visual Aids, Documentation/Guidance, Employee Communications, Personalized Documents


34

In Summary…In Summary…

• Setting and communicating goals to keep employees engaged

– It’s a full-time job that requires attention and training

• Using limited compensation budgets to promote retention– This could mean a change in focus and processes

• Leveraging future career options to keep high performers– Targeting career options to the right people is as important as what

you offer them

• Supporting generational differences through shifting reward strategies

– For communications one size can’t fit all


35

QuestionsQuestions

Thank You

36

Join Our Next TM Webinar

Tuesday, April 5, 2011

Levers Proven to Drive Constructive Cultures and Effective Talent Management

TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific

Register for upcoming TM Webinars at www.talentmgt.com/events

Join the Talent Management magazine Networkhttp://network.talentmgt.com/ #TMwebinar

Building Employee Retention vs. Loyalty

Business

Transcript of Building Employee Retention vs. Loyalty