Winning the Talent War

Recruitment, Retention and Rewards

Recruiting

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• Social networking – LinkedIn, Twitter, Facebook – Aggregators / consolidators

Recruiting in a modern world

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• Nonline networking – Build and maintain talent pipeline – Recruit top performers from competitors – Monitor employment brand and reputation – Utilize partners, board and staff referrals

Recruiting in a modern world

5

• Associations

Recruiting in a modern world

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• Search-firm dynamics – Transparency (sharing of databases) – Milestones – Good candidates, fast – Recruitment process outsourcing (RPO) – Candidate-identification firms / name-generation firms – Offshoring

Recruiting in a modern world

Retention

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• Common perception, supported by monthly reports from the U.S. Bureau of Labor Statistics

Unemployment in an improving economy

5.7%

January 2015 U.S. Department of Labor

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• In reality, an interesting correlation exists between unemployment percentage and education

Unemployment in an improving economy

October 2014 U.S. Department of Labor

Bachelor’s degree or above 3.1% Some college or an associate’s degree 4.8% High school graduate 5.7% Less than high school diploma 7.9%

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• More than half of employees intend to leave their current jobs as the economy improves:

Projected turnover as the economy improves

2014 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%

Right Management Group: http://www.right.com/news-and-events/press-releases/2014-press-releases/item26654.aspx

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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

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• Rule of Thumb: 33% to 150% percent of the annual salary – Salary costs – Recruiting expenses – Downtime and training time

• If true: – Cost to replace $100K position ranges from $33K to $150K

Hidden costs of losing tenured employees

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Employee engagement

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“A heightened emotional or 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

Employee engagement

Engaged employees = 70% less turnover

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• Highly engaged workplaces score high on all six.

• Highly engaged workplaces have “signature” drivers.

Employee engagement

16

Employee-engagement tactics

• Base Pay

• Bonus

• Health Benefits

Tangibles

Intangibles

Short term Long term • Retirement

• Deferred Comp

• Job Security

• Work/Life Benefits

• Hiring Practices

• New-Hire Coaching

• Work Climate/Vision

• Supervisor Behavior

• Trust in Leaders

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• Hot topics – Title enhancement – Flexible scheduling – Telecommuting

Employee-engagement tactics

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%

• Top performers vs. average workers – 144% more in 2012 – 152% more in 2013

Compensation trends

World At Work: http://www.worldatwork.org/waw/adimLink?id=75547

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• Money talks – Communicate total benefits effectively – Pay winners like winners

Rewards help retention (and recruiting)

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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

CBIZ Compensation Consulting

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• Recruiting – Attract individuals who will help move your organization forward

• Angie Salmon, CBIZ & EFL Associates

• Retention – Create an environment of employee engagement

• CBIZ Employee Benefits

• Rewards – Pay your winners like winners

• CBIZ Compensation Consulting

Win the talent war with CBIZ

Questions

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• EFL Associates / CBIZ Human Capital Services – Top 2% retainer-based search firm – Searches conducted in 48 states and six foreign countries – Search practice complemented by compensation consulting

services

• Angie Salmon – Senior Vice President, EFL Associates – Leads Nonprofit Practice – Co-leads Board of Directors Practice – Completed over 130 search engagements

Win the talent war with CBIZ

asalmon@eflassociates.com 913.234.1576 @SalmonSearch