ideas@work vol.3


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ideas@work vol.3

  1. 1. VOLUME 3 BUSINESS INSIGHTS FROM UNC EXECUTIVE DEVELOPMENT WHITE PAPERS FEATURED: How to Build Trust in an Organization The Recruiting Revolution: How Technology Is Transforming Talent Acquisition Embracing Open-Book Management to Fuel Employee Engagement and Corporate Sustainability Maximizing Millennials in the Workplace The New Business Imperative: Recruiting, Developing and Retaining Women in the Workplace PLUS: CHAPTER FROM A BEST SELLING HR RESOURCE! A Model for Talent Manager Excellence
  2. 2. A message from the President and Associate Dean of Executive Development at UNC Kenan-Flagler Business School Hello again from the University of North Carolina at Chapel We are also pleased to feature a chapter from The Talent Hill, and welcome to the latest volume of ideas@work. Management Handbook titled A Model for Talent Manager We created ideas@work specifically for business leaders Excellence, co-authored by Marc Effron and Jim Shanley. interested in talent development so that we can share the We are delighted to have their contribution and to announce knowledge and expertise that we’ve gained working with that we are partnering with them to launch the Talent organizations around the world. ideas@work offers some Management Institute in November 2012. This new program of the latest talent development research and highlights best will be led by Effron, Shanley and Corey Seitz, another leader practices that we hope you can apply in your organization. in global talent management. The latest volume features 5 new white papers authored by I hope that you enjoy the latest volume of ideas@work. members of the UNC team. One paper explores the unique I encourage you to visit our website ( to contributions Millennials offer as they enter the workforce, access our library of talent development resources including and another paper discusses how social media and emerging white papers, webinars, and research. You can also join technologies are transforming talent acquisition. A third our mailing list to receive our newsletter which features paper examines the critical role trust plays in an organization these resources and more, and our team would be happy and identifies ways you can build a culture of trust. The New to talk with you about the custom work we do for our Business Imperative: Recruiting, Developing and Retaining organizational clients. Women in the Workplace offers insights about the changing role of women business leaders and how companies are Thank you for your interest in UNC Executive Development. adapting to changing demographics. This paper also Susan Cates includes findings from a recent survey conducted by UNC Kenan-Flagler. Consistently ranked one of Our commitment to At UNC Executive the world’s best business developing socially Development, we believe schools, UNC’s Kenan- responsible, results-driven that managing employee Flagler Business School leaders distinguishes our talent is vital to the success is known for experiential programs. We educate of any organization, and we learning and teamwork, people at every stage provide unique learning and superior teaching, of their careers and development experiences innovative research and a prepare them to manage for our partners. collaborative culture. successfully in the global business environment.2 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  3. 3. Inside this issue How to Build Trust in an Organization page 4 The Recruiting Revolution: How Technology Is Transforming Talent Acquisition page 14 Embracing Open-Book Management to Fuel Employee Engagement and Corporate Sustainability page 26 Maximizing Millennials in the Workplace page 36 The New Business Imperative: Recruiting, Developing and Retaining Women in the Workplace page 48 4+2 BONUS CHAPTER: A Model for Talent Manager Excellence page 60 (Note: The information or conclusions expressed in the following white papers are the authors’ review of findings expressed by the organizations. All brand representations are registered trademarks owned by the respective companies or organizations.) 3
  4. 4. How to Build Trust in an Organization Chris Hitch, Ph.D. Program Director UNC Executive Development Introduction In a 2001 interview with Fortune magazine about his for $7.99 each. Customers – many of whom faced a company’s continued success, Herbert D. Kelleher, 60 percent increase for monthly Netflix services – were founder of Southwest Airlines, attributed much of outraged, and the customer-led backlash eventually it to the fact that he always treated his employees made Hastings reverse the decision. The damage was like customers. Kelleher knew that employees who already done, however. By mid-September 2011, are trusted and treated fairly will, in turn, treat their Netflix lost one million more subscribers than they customers with trust and respect. had estimated after the July announcement, and the company’s stock plummeted 14 percent. By the end of This is the same kind of philosophy that made Netflix a the year, Netflix had made $40.7 million in the last three huge success as a young start-up organization. From the months of the year. By comparison, it had made $47.1 beginning, Netflix founder Reed Hastings knew the kind million in the last three months of 2010. of company culture he wanted to develop to achieve its purpose. Netflix’s “Freedom and Responsibility Culture” The trust that customers, stakeholders and employees was based on the premise that all employees understand had in Netflix’s top management to make sound choices the purpose of the organization and that they know the was shaken by the decision, and the delayed reversal value customers get from doing business with Netflix. further eroded that trust. Netflix’s leadership lost sight The foundation of that culture is trust and responsibility; of the value they provided their customers – and by trust in its employees to achieve the company’s extension their employees – when they failed to ensure goals and trust in its customers to act responsibly by that their decisions and actions supported its purpose. eliminating late fees and asking customers to return And by doing this, they let their employees down. their DVD rentals when they are ready. Netflix employees no longer had a clear vision of the value customers got from doing business with Netflix That all was put in jeopardy when Netflix announced in – and this confusion has damaged its “Freedom and July 2011 that it was eliminating it’s $9.99 per month Responsibility Culture”. DVD + streaming plan in favor of two separate plans4 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  5. 5. H O W T O B U I L D T R U S T I N A N O R G A N I Z AT I O N“ rust is the lubrication that makes it T possible for organizations to work.” – Warren Bennis Time will tell if Netflix can rebuild the trust they lost with their employees and their customers—its culture of trust, responsibility and freedom to take risks and to be innovative hangs in the balance. Leadership and organizational studies pioneer Warren Bennis once said that “trust is the lubrication that makes it possible for organizations to work.” Organizations with high levels of trust have more productive workforces, better employee morale and lower employee turnover. They also perform better financially than their industry peers. Promise This white paper: • Defines trust in organizations. • Explores the characteristics of organizational trust and how it develops. • Examines the benefits of trust in organizations. • Examines the erosion of trust in the workplace. • Offers steps HR professionals can take to build or rebuild trust in their organizations. The Foundations of Trust: Credibility, Respect and Fairness“ o be persuasive we must be T Dr. Duane C. Tway, Jr., offered an excellent definition of believable; to be believable we must trust in his 1993 dissertation, A Construct of Trust, as be credible; to be credible we must “the state of readiness for unguarded interaction with be truthful.” someone or something” (Dubois, 2010). Warren Buffet put it another way. “Trust,” said Buffet “is like the air – Edward R. Murrow we breathe. When it’s present, nobody really notices. But when it’s absent, everybody notices.” 5
  6. 6. We know when we feel that state of readiness, but High-trust organizations ensure that employees what elements are needed to get to that state? Amy experience respect. This is exhibited through employers’ Lyman, co-founder of The Great Place to Work Institute, support of their employees’ professional growth and the has studied trust in organizations for more than 20 consideration of employees’ ideas in decision-making years. She has found three characteristics, or elements, processes. Finally, employees in high-trust organizations that come up time and time again in her interviews with believe they are treated fairly regardless of their clients: credibility, respect and fair treatment (Lyman, position within the organization (Lyman, 2012). 2003, 2012). High-trust organizations collaborate well across According to Lyman, in organizations with high levels of departments and hierarchies, and seek fair resolutions to trust, employees see others (particularly management) difficult situations. Employees in high-trust organizations as credible—they mean what they say, and believe have confidence in their leader’s vision for the future what they say is true—and have confidence that the (Lyman, 2012). actions of others will remain consistent with their words. In high-trust organizations, co-workers believe that others (particularly management) are ethical in their business practices. Example: Continental Airlines Amy Lyman (2003, 2012) has cited Continental Airlines as an excellent example of trust at work. In 2003, baggage reclamation employees at Continental heard there could be layoffs in their area to control costs. Rather than waiting for senior leaders to make the announcement, the employees met and developed a plan where full-time employees would move to part-time status so no one would lose their jobs. They presented the plan to senior managers, who approved the plan. “What’s extraordinary,” Lyman writes, “is that the employees took positive action to solve a problem and trusted that management would listen … So what’s going on at Continental that supports the development of positive relationships between employees and management? The simple answer is trust.” Source: Lyman 2003, 2012.6 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  7. 7. H O W T O B U I L D T R U S T I N A N O R G A N I Z AT I O NThe Development of Trust: Russell 3000 and SP 500, posting annualized returns of 11 percent versus 4.26 percent and 3.83Action and Interaction percent, respectively. Lyman also notes that those best companies experience about half the turnover rateTrust is earned through action. As Maister, Green and than other organizations in their industries. (Lyman,Galford wrote in their seminal book, The Trusted Advisor 2003, 2012).(2001), “You have to do something to give people theevidence they need to believe you should be trusted. A 2009 study by Interaction Associates found that high-You have to be willing to give in order to get.” trust organizations also had more effective leadership and better collaboration at all levels of the organization.Trust is also earned through interaction. It can be as The study found that high-trust organizations:simple as a conversation between co-workers, a five-minute chat in the break room between a manager • Have a strong sense of shared purpose. and her employee, or teamwork among co-workers tocomplete a project. It is the interaction that conveys to • Have employees who work together to support that others the willingness on the part of one person to do purpose.something that is to the benefit of another person’shealth and well-being (Lyman, 2012). • reate cultures in which tolerance and cooperation C are highly valued.It is through a person’s action and interaction thatothers can assess whether that person is credible, • Have leaders who coach rather than just manage. reliable and fair. • Have many people participate in making decisions.The Effect of Trust: The study revealed that in addition to superior earnings as compared to low-trust organizations, high-trustA Better Bottom Line organizations excelled (as compared to their low-trust peers) at exhibiting organizational behavior consistentNumerous studies have been conducted through the with their values and ethics (85 percent vs. 46 percent);years that confirm the benefit of trust in the workplace: at retaining employees (80 percent vs. 42 percent); and at attracting, deploying and developing talent (76• A classic study by Cornell University Associate percent vs. 24 percent). Professor Tony Simon of 6,300 Holiday Inn employees found that hotels where managers followed through If trust increases profitability and helps in attracting and on their promises and had behavioral integrity were keeping talent, then the lack of trust lowers productivity, more profitable (in Bader, 2003). job satisfaction and commitment and increases employee turnover.• Watson Wyatt Worldwide study found that A organizations in which front-line employees trusted With all the documented benefits of having trust in their senior leaders had a 42 percent higher return on an organization, one would think that creating and shareholder investment than organizations in which maintaining it would be a high priority for senior distrust was the norm (Reina and Reina, 2007). business leaders. Unfortunately, many senior leaders cannot seem to shake the top-down model of• Amy Lyman’s tracking of publicly traded 100 Best management that adheres to the notion that authority Companies has shown that as a group and over creates trust. In reality, trust creates authority. time, those organizations have outperformed the 7
  8. 8. Areas of Excellence in High-Trust Organizations High-Trust Organizations Low-Trust Organizations 85% 80% 76% 46% 42% 24% Exhibiting Organizational Retaining Employees Attracting, Deploying, and Behavior Consistent with Developing Talent Values Source: Interaction Associates, 2009. The Erosion of Trust in Organizations Trust may be a valued commodity in an organization, in their employer (48 percent), and a lack of but it is a rare one. Research conducted by Reina transparent communication from senior leaders and Reina (2009) found that nine out of every 10 (46 percent). employees have reported experiencing some sort of breach of trust in the workplace on a regular basis. Senior leaders are not blind to the erosion of trust A recent Deloitte survey on ethics in the workplace in the workplace. The Deloitte survey found that 65 underlined the erosion of trust in the workplace percent of Fortune 1000 executives were concerned and the negative financial effects on organizations that employees would be job hunting in the coming struggling to regain their footing after the recent months and that the lack of trust would be a major recession (PR Newswire, 2010). factor in the potential increase of voluntary employee departures. The survey found that one-third of employees surveyed said they planned to look for new jobs To staunch the flow of talent planning to change when the economy recovered. Of those who said jobs, it is more important than ever for businesses to they would be job hunting, the main factors in the assess the level of trust in their organizations and to decision to look for a new job were a lack of trust focus on ways to improve it.8 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  9. 9. H O W T O B U I L D T R U S T I N A N O R G A N I Z AT I O NExample: Whole Foods Market J ohn Mackey, CEO Whole Foods Market, Inc. (Austin, Tex.), wrote an essay in 2010 that provides insight into why Whole Foods is ranked consistently in the top 25 of the Best Companies to Work For list. To create a high trust organization, writes Mackey, organizations must: • evelop and articulate a higher purpose. “The single most important requirement for the D creation of higher levels of trust for any organization,” notes Mackey, “is to discover or rediscover the higher purpose of the organization.” This higher purpose must go beyond making money. • alk the talk. Organizations must have leaders who “walk the talk”—who serve the W purpose and mission of the organization and lead by example. • ave teams everywhere. Small teams maximize familiarity and trust, which helps H maximize collaboration at all levels of an organization. • mpower employees, because empowerment equals trust. “The effectiveness of teams,” E Mackey writes, “is tremendously enhanced when they are fully empowered to do their work and to fulfill the organization’s mission and values.” • ave transparent and authentic communication. One of the biggest mistakes H organizations make is trying to “spin” their messages in the belief that if they tell stakeholders what they want to hear rather than the unvarnished truth, they will like them better. Spinning a message, in fact, creates distrust. • ractice fairness. A virtue of transparency, notes Mackey, is that it helps ensure that P unfairness is quickly seen and corrected. • reate a culture of love and care. Mackey believes that leaders must embody genuine C love and care of the organization and its people. In fact, he believes the virtues of love and care should be considered in all promotional decisions, writing that “we shouldn’t just promote the most competent, but also the most loving and caring.” A vital part of this loving-and-caring culture, notes Mackey, is the cultivation of forgiveness rather than judgment and condemnation. Source: Mackey, 2010. 9
  10. 10. Steps to Build or Rebuild Step 1: Assess the Level of Trust in the Trust Organization. Although Warren Buffet may be right that it is the The impacts of distrust in an organization—lower absence of trust which is noticed, this observation is employee morale and commitment, lower productivity not sufficient to build the business case needed to and higher employee turnover—tend to fall squarely on take action and attempt to improve an organization’s the shoulders of HR. As such, HR should have a central level of trust. HR professionals should assess the level role in establishing or re-establishing trust throughout an of trust in their organizations, and this can be done organization. through employee surveys and confidential one-on-one interviews. Corsum Consulting (O’Neil, 2009) has developed a mnemonic HR and senior leaders may want to keep in Some questions that can help assess the level of mind when trying to improve trust in an organization: trust include: • Do you trust your peers? T = Teach. • Do you trust your senior leaders? Teach everyone in the organization how things work; make it as transparent as possible. • Do you view your peers and senior leaders as credible? • Do you believe your senior leaders’ actions are R = Reward. consistent with their words? Make sure reward systems align with corporate value • Do you understand the organization’s mission and and goals. vision and the role you play to achieve them? • Do you feel that risk-taking is encouraged? U = Unconditional support. • Do you feel safe communicating your ideas and Encourage innovation. Create an environment where opinions with colleagues? mistakes are opportunities to learn, not to punish. Give employees permission to “think outside the box.” • Do you believe you are treated fairly and with respect? • Do you feel senior leaders communicate openly? S = Share information. • Do you feel your supervisor and other senior Communicate clearly and frequently. leaders care about and encourage your professional development? T = Trustworthy. • Do you believe your ideas are taken into account during the decision making process? Make commitments and keep them. The responses to these questions will help establish This mnemonic can also help shape the practical steps the level of trust felt by employees in the organization. HR professionals can take to improve trust throughout An analysis of the results should help identify which their organization. elements of trust – credibility, respect and fair treatment – the organization as a whole is accomplishing and which areas need improvement.10 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  11. 11. H O W T O B U I L D T R U S T I N A N O R G A N I Z AT I O NStep 2: Report the Results of the Step 3a: Assess Your OwnAssessment. Trustworthiness and Whether HRA recurring theme, which emerges in the study of trust Programs and Policies Promote Trust inin organizations, is to improve it, organizations must the Organization.communicate as openly and transparently as possiblewith employees at all levels. Once assessed, the resultsof an organizational survey of trust should be openly Step 3b: Ask Other Senior Leaders tocommunicated to all employees. HR professionals Do the Same.should consider multiple delivery methods, includingtown hall meetings and posting the results on a Trust in senior leaders is vital to an organization’scompany intranet. The communication should report success, and while an employee survey may helpon the strengths and weaknesses found through the recognize organizational trust issues, HR professionalsstudy. Areas of improvement should be identified, and must assess whether their actions are construed asemployees should participate in the process of what trustworthy by others. Feedback (from all levels insteps will be taken to make those improvements. the organization) and self-assessment are ways this information may be gathered.Reina and Reina (2007) offer the following suggestionsto HR professionals when trying to establish or rebuild Some questions that could be asked when seekingtrust in the workplace: feedback or taking a self-assessment may include:• llow feelings to surface. When reporting A • Do I communicate openly, honestly and consistently? on the results of the survey, allow employees to • Are my actions consistent with my words? constructively voice their concerns, issues and feelings. Holding small group meetings after the • Do I share information with my employees report has been presented may make employees feel consistently? safer and encourage them to more openly discuss • Do I help develop my employees? their experiences. • Do I respect my employees’ opinions? Do I include • et support. Reina and Reina observed that a G their opinions during the decision making process? common mistake made by senior leaders and HR professionals is to think they can manage the • Do I treat all of my employees fairly? process of building or rebuilding trust alone. Trust is highly emotional for everyone involved; obtaining With the expertise of an outside consultant, use the the support of an outside consultant to guide the information obtained from the organization-wide organization through the process can help. survey and the personal assessment to develop a “trustworthiness improvement plan.” This may also• ake responsibility. HR professionals and senior T be a good time to identify a coach or mentor who can leaders must take responsibility for any actions they help guide you through the process in the long term. made in the past that lowered trust. Do not spin the truth or cover up mistakes—this will only lower Next, ask senior leaders to undergo the same process. trust more. Everyone at the senior leadership level must lead by example to establish or re-establish trust and credibility.• ncourage forgiveness. Forgive yourself and others. E Forgiveness helps release feelings of anger, bitterness and resentment that come with broken trust. 11
  12. 12. In addition, HR professionals should take the opportunity practices should be designed to foster a culture where to assess whether HR policies and practices foster the employees feel safe to be innovative and engaged. development of trust in the organization. To encourage the growth of trust, HR policies and practices must Step 4: Follow Up and Remain Vigilant. be aligned with the organization’s mission and vision, and the organization’s total compensation plan should The loss of trust can occur after a single event (such reward trustworthy behavior. HR professionals should as a layoff, merger or acquisition), but trust is built develop and offer interpersonal communications and over time. HR professionals should assess the levels of skills training to all employees to encourage constructive trust in their organizations on a regular basis and ensure communication and information sharing. HR policies and that any incidences causing distrust are addressed in a timely manner. Conclusion As the economy improves, valued employees who have HR professionals can staunch the flow of talent leaving lost trust in their senior leaders will seek employment the organization by taking proactive steps to improve elsewhere, leading to increased turnover, lost productivity trust in the workplace. plus higher recruiting and onboarding costs. Bader, G. Liljenstrand, A. (2003, May 15). Galford, R. Drapeau, A. (2006). Trust Maister, D., Green, C., Galford, R. Tzafir, S. (2005, September). The relationship The value of building trust in the workplace. inside the organization. The Trusted Advisor. (2001). The trusted advisor. New York, NY: between trust, HRM, practices and firm The Bader Group. Retrieved from http:// Retrieved from http://www.thetrustedleader. Touchstone. performance. International Journal of com/newsletter/issue32-february-06.html Human Resource Management, 16, 1600- in-the-workplace/ O’Neill, M. (2009, August 17). Five ways 1622. Interaction Associates (2009). Building to build trust in the workplace. Corsum Better Business Bureau. (2010, September trust in business. Interaction Associates. Consulting. Retrieved from http://www. Wentworth, D. (2011, December 6). Creating a culture of trust in your Cambridge: MA. 7). Information underload. I4cp. company. Better Business Bureau. Retrieved bid/24614/Five-Ways-to-Build-Trust-in-the- Retrieved from from Kochan, T. (2004, September). Restoring Workplace trendwatchers/2011/12/07/information- culture-of-trust-in-your-company-22043 trust in the human resource management underload profession. MIT Institute for Work PR Newswire. (2010, July 26). Trust and Deloitte. (2010, September 29). 2010 ethics Employment Research. Cambridge: MA. ethics in the workplace have been battered Wright, P. (2003, September 1). Restoring workplace survey. Deloitte. Retrieved by the recession, Deloitte’s 2010 ethics trust: The role of HR in corporate from Lyman, A. (2003). Building trust in the workplace survey finds. PR Newswire. governance. Cornell University ILR School/ docubase/35598 workplace. Melcrum Publishing, Ltd. Retrieved from http://www.prnewswire. Center for Advanced Human Resources London: England. com/news-releases/trust-and-ethics-in-the- Studies. Ithaca: NY. Dubois, L. (2010, August 2). How to build workplace-have-been-battered-by-the- a corporate culture of trust. Inc. Retrieved Lyman, A. (2012). The trustworthy leader: recession-deloittes-2010-ethics--workplace- from Leveraging the power of trust to transform survey-finds-99228989.html how-to-build-a-corporate-culture-of-trust. your organization. Jossey-Bass. San html Francisco: CA. Reina, D. Reina, M. (2007, May 2). The HR executive’s role in rebuilding trust. Human Mackey, J. (2010, March 14). Creating a Resource Executive Online. Retrieved from high trust organization. Huffington Post. Retrieved from http://www.huffingtonpost. storyId=12160414 com/john-mackey/creating-the-high-trust- o_b_497589.html12 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  13. 13. We help you develop executive talentwhile tackling real-world challenges. (Now that’s multi-tasking.)U N C E X E C U T I V E D E V E L O P M E N T CUSTOM EXPERIENCESBusinesses today face many distinctive challenges.We listen to your needs and develop a thoroughunderstanding of your business and industry.Then we create unique executive learningexperiences designed to develop your executives UNC EXECUTIVE DEVELOPMENTas they address and overcome these challenges. The Power of Experience.Multi-tasking at its best.To learn more, visit 13
  14. 14. The Recruiting Revolution: How Technology Is Transforming Talent Acquisition Shelly Gorman Director, Career Management MBA@UNC Introduction We are living through an exciting era in technology • xplores how leading organizations are using these E development—the emergence of interactive, social technologies in their HR practices. media and virtual technologies whose business applications are not yet fully realized. While marketing • Provides HR and talent management professionals professionals have been quick to embrace the potential with information they can use to help them of these technologies for product placement, branding incorporate social media and virtual technologies into and sales, HR and talent management professionals their organizations’ hiring practices. have approached them with a little more caution as they explore how interactive, social media and virtual world technologies can be effectively applied to attract talent Social Media to their organizations. The next section highlights some of the major players in the social media market today, describes how recruiters Promise are using social media technology to expand their talent pipelines, and how job seekers are using them to aid in This white paper: their job searches. • dentifies some of the major players in social media I and describes their main features. • xamines the pros and cons of using social media, E simulations and virtual world technologies to expand talent pools and to identify good job candidates.14 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  16. 16. Some of the Major Players in Social Media • ore than 120 million users and growing. M • eveloped as a business networking application with no mixing of D business and personal. • sed by recruiters to identify passive candidates and to see who U candidates know, in what industries, and at what levels. • elps talent acquisition professionals publicize their employment brand H and advertise job openings. • llows users to view and share videos online. A • sed by job seekers to post video resumes. U • sed by employers to create and post videos about their industries, U organizations, talent brands and employment opportunities. • ore than 200 million users “tweet” their thoughts in 140 characters M or less. • llows businesses to communicate to their stakeholders in real time— A whether that communication is about the latest product launch or a job opening. • llows users to find information streams they find interesting (like a A company) and follow them. • llows HR professionals to market their employment brand, advertise A job openings and push followers to their career websites. • product recently launched as a Facebook application. A • erges Facebook and LinkedIn connections and harnesses the power M of • ery similar to BranchOut in features, such as stepping users through V the process of completing online profiles, awarding badges for completed steps and searching for jobs. • ncludes job postings from I16 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  17. 17. THE RECRUITING REVOLUTION AND TECHNOLOGY• A Facebook application launched a year ago. • Allows users to separate their personal and professional lives while tapping into Facebook’s 500-million user base.• Allows employers to post jobs on their Facebook pages; shows users jobs they may like based on their professional profiles.• Allows users to endorse people. • Includes job postings on BranchOut by employers plus job postings from other boards.• Shows users connections (individuals) they have to jobs; allows users to tap into people they know to start the networking process.• Allows talent management professionals to find passive candidates, to review a person’s job history, to advertise job openings, to promote their employment brands and to encourage visits to their career websites.• Currently available to individuals only, but Google Plus Product Specialist Manager Chris Vennard says the application will offer business and school pages within the first half of 2012.• Has interface that is similar to Facebook, but its power to eventually harness everything “Google” makes it a must-track for recruiters.• Can categorize social connections through ”circles”. For example, users can have circles that include only friends, only colleagues or only family members, but the application allows users to assign individuals to more than one circle. Allows users to develop profile information that is customized and visible only to specific circles.• Streams information based on a user’s pre-selected interests. This can be handy for recruiters trying to increase their employment brand or to advertise jobs.• Allows videoconferencing for up to ten people at a time in ”hangouts”. Users can specify friends or select circles to participate in a hangout, and users can come and go throughout the videoconference. User can even watch YouTube videos together in real time. Talent acquisition professionals can use this to stream YouTube videos promoting their organizations, interview candidates, and even hold small career fairs. 17
  18. 18. How Social Media Is Being Used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Social media appears to be successful in not only The quality of hires is always a concern, and while expanding talent pools, but in hiring candidates as recruiters continue to rank employee referrals as well. Sixty-four percent of respondents to a 2011 the best source of quality of hires (8.6 on a scale of Jobvite survey said they had successfully hired a 10), social networks fair well with a rank of seven candidate through a social network in 2011. Nearly on a scale of 10. Corporate career sites, third-party all survey respondents (95 percent) said they had recruiting firms, campus recruiting, job boards and hired someone through LinkedIn; 24 percent of search engines all ranked below social networks in respondents had hired someone through Facebook the quality of hires (Jobvite, 2011). It is important and 16 percent of respondents had hired someone to note that employee referrals and social networks through Twitter. are not mutually exclusive; some social networks like BeKnown and BranchOut include features that encourage employees to recommend colleagues and friends. The Pros of Social Media in the Talent Acquisition Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Social media offers recruiters several advantages. Third, as organizations continue to do more with First, these applications expand talent pools beyond less, these technologies are extremely cost effective. geographic boundaries, allowing employers to reach It costs little to establish a social media presence, a global audience. although managing those networks can be a challenge. Second, they allow candidates to find talent acquisition professionals. Most people find jobs Perhaps the most compelling reason to use social through personal or professional networks—moving media in HR and the talent acquisition process, those networks online allows more people to be though, is because it is inevitable. Most large aware of an organization’s employment brand and organizations already have a prominent social media job openings. It also allows employees to notify their presence and leverage it to improve their employment personal and professional networks of job openings brand and to find active and passive job candidates. in their organizations. The Cons of Social Media in the Talent Acquisition Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . One of the challenges HR professionals face when With so many choices available, choosing one or entering the social media market is that it is growing more to use is a viable concern for job seekers and at seemingly exponential rates with new players recruiters. For job seekers, maintaining multiple social regularly entering the arena. This makes it difficult to media accounts could easily become a full-time job. know where one should concentrate efforts when it The same is true for recruiting professionals, but comes to talent acquisition. added to that concern is whether they will be using the “right” application for their talent acquisition needs as these platforms develop. Unfortunately, it will take time to see what application emerges as an overall or industry-specific leader.18 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  19. 19. THE RECRUITING REVOLUTION AND TECHNOLOGY Which Application Is the Right One?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In a side-by-side comparison of BeKnown and social media applications. When selecting which social BranchOut, J.T. O’Donnell, founder of Careerealism. media applications to use, HR and talent management com, urged job seekers to choose one and stick with professionals should not only consider the resources it because you can’t go wrong either way. These are they have available to maintain them, but should early days in social media for career networking, and also consider which ones will best align with their no single application has emerged as a clear overall organization’s strategic HR plan. long-term leader, and none has emerged as a leader in a specific industry. Until that evolution happens, recruiters will likely find themselves juggling multiple Social Media in Recruiting on the Rise The 2011 Jobvite survey confirms that social media recruiting is on the rise: • 89% of respondents said they used social media to recruit talent in 2011. • ocial media recruiting topped the list as the most popular area in which respondents S planned to increase investment. • 5% of respondents said they planned to increase their social recruiting budgets. Only 16 5 percent said they planned to spend more on job boards and a third of respondents said they planned to spend less on job boards, third-party recruiters and search firms. Source: Jobvite Social Recruiting Survey, 2011. 19
  20. 20. Example: Discovery Communications Tyler Benjamin, vice president of global talent management at Discovery Communications, is the first to admit that Discovery is not yet a leader in using social media for talent acquisition—and that is deliberate. “We intentionally took our time to test out Twitter, Facebook and LinkedIn. This helped us form a strategic social media plan,” said Benjamin. “We quickly realized that establishing a talent brand was key and that most of our followers, while disbursed throughout the world, wanted local information. We’re currently concentrating on building that brand in the United States because we not only need to have content, we also need to have the staff to manage that content. Our plan is to expand our global ‘local’ content within the next few years.” Discovery has used social media to establish alumni groups to some success. “We have a lot of people who return to Discovery after spending time with other organizations. Our alumni groups help us keep in touch with them,” said Benjamin. Simulations and Virtual Worlds Although the terms “simulations” and “virtual worlds” are often used interchangeably, they are not the same. Simulations replicate job-related tasks to allow employers to assess a candidate’s skills. Virtual worlds like Second Life allow participants to interact with each other through avatars. Virtual worlds were originally created with social users in mind, but some employers are using it as a recruiting tool. This section describes both types of technologies, provides examples of how they have been used in the talent acquisition process and explores their possible growth in this field. Simulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Early simulations were often administered on the job centers (data entry and customer service skills) and site and imitated actual job tasks (like typing speed manufacturing (computer and logic skills), and to and accuracy) to assess a person’s ability. These early offer candidates ”day-in-the-life” glimpses into an simulations eventually expanded into in-basket exercises organization’s working environment. where candidates had to assume a job role and handle some of the daily tasks of that job (Handler, 2009). Many recruiters believe that simulations offer advantages over traditional tests. First, they Technology has taken simulations online and to a new are more engaging than traditional, non-interactive level, making it possible to replicate a variety of work assessments. In addition, they offer more realistic job environments and to assess performance in a more previews and can reduce bias and subjectivity in the automated manner. Today, these engaging simulations hiring process because of their realism and automated are being used to assess skills in such settings as call scoring (Handler, 2009).20 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  21. 21. THE RECRUITING REVOLUTION AND TECHNOLOGY Example: AutoMax Recruiting Training AutoMax Recruiting Training recently partnered with Hire the Winners, the creator of a car sales simulator that helps dealers learn more about sales candidates and their sales potential. According to AutoMax, the simulator has been used more than 16,000 times and has an 82 percent retention rate after two years for sales people the simulator recommended. For those the simulator recommended with reservation, the two-year retention rate was 64 percent, and for those not recommended, the two-year retention rate was just 14 percent.When Are Simulations Appropriate?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . There are a few important considerations for employers that simulations may cause bottlenecks in the hiringthinking about using simulations in the talent acquisition process, particularly for organizations hiring a largeprocess. Some recruiters feel that simulations may turn number of candidates. Finally, the types of skills assessedoff upper-level professionals who expect to be wooed through simulations must be considered—they may berather than assessed, and they advise employers to better suited to softer skills, such as customer-serviceconsider the type of worker being recruited and whether orientation (Ruiz, 2008). For harder, knowledge-baseda simulation is appropriate. Others are concerned skills, traditional assessments may be more appropriate.The Next Evolution of Simulations: Gaming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The future is here in the world of simulations and 1. ive rewards (like badges) to visitors to your site when Grecruitment, and that future is gaming. Employers they’ve engaged in an activity such as watching aare using gaming technology to offer realistic job video or taking an assessment. Encourage them topreviews and video tours to attract candidates to their come back to the site frequently.organizations. Gaming technology lures candidates tothe organization’s website, keeps them there longer as 2. Consider using virtual world technology like Secondthey play a game or two, and in the process, users learn Life. IBM, and other organizations havemore about the organization in a fun and engaging used this technology to host virtual job fairs, conductway. Recruiters are learning from gamers that awarding interviews and offer virtual tours.badges and showing progress toward a goal attracts theGen Yers who have grown up playing online games. Ken 3. ffer video-based job tryouts. OWheeler from predicts that gaming will become 4. Hold virtual career fairs.standard fare in recruiting within the next decade(Wheeler, 2010). 5. se tests, puzzles and simulations. UWheeler offers six tips recruiters can use to start the 6. evelop a full-fledged game. These simulated Dgaming ball rolling. environments engage candidates and can immerse them in your organization’s talent brand. 21
  22. 22. Organizations are taking gaming online to establish • Merrill Lynch developed their Financial Games their talent brands and to attract candidates: Collection to educate undergraduates and MBA students about available careers and to drive • ahoo! Hotjobs launched Swivel Chair Relay Y traffic to their career website. The game teaches and Flip Off Your Boss to engage their targeted players about the IPO process while positioning recruiting demographic of 18-24 year olds. The Merrill Lynch as a great place to work. games blend humor and entertainment with the HotJobs brand messaging. The promotion was • The U.S. Army was arguably the first considered a great success, with more than organization to use gaming as a recruitment tool 40,000 people playing the games and registering when it launched America’s Army on its website. as HotJob members. The game, according to the Army, significantly helped raise flagging enlistment rates. Source: Brandgames. Example: Marriott International Since its launch in June, gamers in 122 countries have played the My Marriott game on Facebook, the first game designed to educate players about careers in the hospitality industry. Players enter a virtual Marriott kitchen where they hire and train employees, ensure that meals are well prepared, serve guests, and buy restaurant equipment and ingredients on a budget. They earn points for satisfied customers and lose points for unsatisfied ones. The game is part of a painstakingly planned global employer brand strategy that was two years in the making, according to Susan Strayer, senior director for global employer brand and marketing at Marriott International. For Marriott, it was important to have a strategy in place for social recruiting. “We didn’t want to execute solutions without understanding how those solutions fit into the overall strategy,” noted Strayer. That strategy included the release of a video in April with a new talent brand line, “Find Your World,” followed by the unveiling of a Marriott International Facebook page (which now has nearly 32,000 followers) in May and the My Marriott game in June. One of the goals of this strategy: to have people self-select into the industry in general and Marriott in particular. “For Marriott,” Strayer notes, “it’s not about finding people, but about finding the right people.”22 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  23. 23. THE RECRUITING REVOLUTION AND TECHNOLOGYVirtual World Technology: Virtual Career FairsThe use of virtual worlds (mostly used to host virtual using that same technology; and visit networkingcareer fairs) in the talent acquisition process admittedly lounges where they can interact with different employershad a rocky start a few years ago. Limits to the and other job seekers. Virtual career fairs can even allowtechnology at the time and people’s unfamiliarity with managers who would normally be unable to attend livehow it worked caused these online experiences to be fairs to talk to candidates, speeding up the interviewingoften clunky and sometimes downright embarrassing, process.according to Courtney Hunt, Ph.D., principle atRenaissance Strategic Solutions. “I heard horror stories Virtual career fairs allow employers to reach candidatesof avatars floating during virtual career fairs—and that from across the globe without the costs associated withwasn’t the person’s intent,” recalls Hunt. travel and hosting on-site career fairs. They are also environmentally friendly because they are paperlessOthers agree. Until recently, technological limitations (resumes are submitted virtually) and energy savingmade virtual career fairs just barely better than what (reduced reliance on gas to get to and from live careeremployers could get through online job boards; a fairs).place to post jobs and a corporate profile, an area foronline chats, and bulletin boards (Zappe, 2011). These A survey by Unisfair, a virtual engagement marketinglimitations caused interest in the use of virtual worlds in company, found that 60 percent of respondents planrecruiting to wane. to increase spending on virtual environments and 67 percent of respondents are thinking about hosting tenNew and improved virtual world technology, however, or more virtual events in the next 12 months (Gardner,has caused a resurgence of interest among HR 2011).professionals who see virtual career fairs as a costeffective way to attract talent, particularly those “Virtual engagement is not just a replacement for awho grew up using technology and who find online physical event, but is a new channel for reaching yourinteraction more the norm than the exception (Zappe, audiences,” notes Joerg Rathenberg, Unisfair’s vice2011). president of marketing. “The research indicates that virtual events are being adopted across industries andIn today’s virtual career fairs, job seekers and recruiters enterprises and will continue to be the preferred way touse avatars to enter a virtual world. Participants can chat meet, market, collaborate and educate for both hostslive through text, voice or video; conduct interviews and attendees alike.” (Gardner, 2011). 23
  24. 24. Example: Monster Canada’s Virtual Career Fair A virtual career fair recently hosted by Monster Canada was deemed a huge success by the company and attendees. The fair featured 21 employers and generated more than 400,000 page views, 18,000 visits, 21,000 job views and collected more than 12,000 resumes. “Monster’s first virtual career fair in April was hugely popular and the high level of activity clearly demonstrated how having an active online career strategy is the way of the future, both for successful job seekers and employers,” noted Monster Canada Senior Vice President of International Sales Peter Gilfillan (Market Watch, 2011). Most recruiters agree that virtual career fairs should be the emergence of hybrid career fairs—a combination part of a whole recruitment strategy and should not of physical and virtual locations that allow for human replace face-to-face interaction. Many recruiters predict interaction. Conclusion Social media, simulations and virtual worlds are At the same time, it will require HR professionals to opening new and exciting venues for HR and talent be nimble enough to make changes to their talent management professionals to source new talent and acquisition processes “on the fly” while managing these to establish their talent brands. The rapid pace at applications in ways that will achieve their organization’s which these technologies are developing will challenge strategic talent plan. HR professionals to stay up-to-date with their uses. Berzon, A. (2011, June 6). Enough with the Giles, J. (2011, October). Meet the New Khan, R. (n.d.). Google Plus. The Starter’s Raphael, T. (2011, February 1). 2011 ERE ‘Call of Duty,’ Answer the Call in Room 417. Boss. Second Life’s Creator wants to Rewire Guide. Accessed September 24, 2011 from Recruiting Excellence Award Finalists. The Wall Street Journal. Retrieved September How Businesses Run. The Atlantic. Retrieved Retrieved August 25, 2011 from 7, 2011 from September 15, 2011 from www.theatlantic. com/magazine/archive/2011/ 10/meet-the- Light, J. (2011, April 4). For Job Seekers, recruiting-excellence-award-finalists/. Brandgames ( new-boss/8637/#.Tm-L_hkXE7k.twitter. Company Sites Beat Online Job Boards, Social Media. The Wall Street Journal. Retrieved Ruiz, G. (2008, January). Job Candidate ( Hampton, M. (2011, Winter). Getting the September 6, 2011 from Assessment Tests Go Virtual. Workforce Biggest Bang for Your Recruiting Buck. Management Online. Retrieved August 25, Crispin, G. Mehler, M. (2011, March). 10th Employment Relations Today, 27-36. Light, J. (2011, May 30). Start-Ups Tag 2011 from CareerXRoads Annual Source of Hire Report: Facebook for Career Networking. The Wall By the Numbers. Retrieved August 30, 2011 Handler, C. (2009, March 11). Job Street Journal. Retrieved September 6, 2011 Wheeler, K. (2010, December 22). Serious from Simulations for Selecting Employees: from Recruiting Games: 6 Tips for Using Games What might the future hold? and Simulations for Recruiting Success. DaZube, D. (2008, November). Virtual Job Retrieved August 29, 2011 from www.ere. Market Watch (2011, September 14). Retrieved August 31, 2011 from Fairs Gain Ground. Retrieved net/2009/03/11/job-simulations-for-selecting-’s Popular Virtual Career Fair Is September 8, 2011 from http://career- employees-what-might-the-future-hold/. Back. Market Watch. Retrieved September 15, 2011 from Zappe, J. (2011, July 15). 8-city Virtual Job job-fairs-gain-ground.shtml. Jobvite (2011). Jobvite Social Recruiting monstercas-popular-virtual-career-fair-is- Fair May Be the Crest of a Trend. Survey 2011. Retrieved August 30, 2011 back-2011-09-14. Retrieved September 7, 2011 from Epicor (n.d.). Finding the Perfect Candidate. from Epicor. Irvine: CA. O’Donnell. J.T. (2011, June 27). BranchOut fair-may-be-the-crest-of-a-trend/. Johnson, D. (2011, August 18). AutoMax Versus BeKnown—Which Facebook App for Gardner, D. (2011, May 9). 60% of Recruiting Training Partners with Hire Your Career? Retrieved Marketers to Increase Spend on Virtual the Winners and the Car Sales Simulator. September 24, 2011 from www.careerealsim. Conferences. Retrieved Retrieved August 31, com/beknown-branchout-facebook-career- September 15, 2011 from 2011 from app/. virtual-worlds/60-marketers-increase-spend- virtual-conferences?cmpid=NR87.24 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  25. 25. Lead your HR organization into the future.B U S I N E S S A N D H U M A N R E S O U R C E SNow more than ever, senior HR leaders need theknowledge, skills and experience to respond toemerging trends that are shaping the future of globalbusiness. Offered in partnership with the Society forHuman Resource Management (SHRM), UNC’s UNC EXECUTIVE DEVELOPMENTBusiness and Human Resources program is designed The Power of equip senior HR leaders with the most up-to-datebusiness knowledge and skills needed to succeed inthe rapidly changing business environment today -and tomorrow.To learn more, visit 25
  26. 26. Embracing Open-Book Management to Fuel Employee Engagement and Corporate Sustainability Anne Claire Broughton Jessica Thomas Senior Director, Managing Director, Center for Sustainable Enterprise SJF Institute UNC Kenan-Flagler Business School Introduction When John Case and Jack Stack first introduced the • xplores how open-book management practices are E concept of open-book management more than 30 years well-suited to help achieve corporate sustainability ago, the intent was to unleash the entrepreneur in every goals. employee and to spur them—and their organizations— to better performance. Since then, countless • utlines steps HR and talent management O organizations have opened their books and engaged professionals can take to ensure the application of their employees in understanding the critical numbers those practices in their own organizations. with positive results to their bottom lines. Although the original goals of open-book management were improved profitability and productivity, organizations The Basics of Open-Book have realized other benefits from the practice. These Management benefits include improved employee satisfaction, engagement, retention, motivation, innovation and Before most people were focusing on corporate corporate sustainability. sustainability, Case and Stack were espousing the virtues of open communication to engage employees to achieve better overall business performance. In his Promise book, The Great Game of Business, Stack describes open-book management as being “all about promoting This white paper: clear, effective and open communication” to employees. • xamines open-book management and the benefits E By doing so, employees at all levels have a clearer of applying its principles to improve employee understanding of their organizations’ purpose and goals, satisfaction, engagement, retention, motivation, are more engaged in their organizations and perform innovation and corporate sustainability. better in their jobs.26 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit
  27. 27. EMBRACING OPEN-BOOK MANAGEMENTOrganizations practicing open-book management: • Teach employees how to follow the action and keep score. All employees track progress on critical• Explain clearly the organization’s key measures of numbers through regular meetings and scorecards. business success, allowing employees to make better- They are empowered to take action to improve informed business decisions. performance as needed.• Share financial information (such as income • Engage the ingenuity of all employees in solving key statements, balance sheets and other key metrics) business challenges, such as how the organization with employees, and ensure they understand them can become more socially and environmentally and know how they relate to the organization’s key sustainable. measures of business success. “When you share the numbers and bring them alive,• Tell the stories behind the numbers to bring them you turn them into tools people can use to help alive and give them meaning. themselves as they go about their business every day. That’s the key to open-book management.”• Allow employees to share in the success of the (Stack, 1992). organization through a profit-sharing program that is tied to key business metrics. 27
  28. 28. Why Open-Book Management Works Clearly communicated and understood goals, a • Demonstrate innovative thinking because they feel hallmark of open-book management, leads to improved more vested in their organizations’ success profitability and encourages teamwork. This leads to (Henglein, 2009). increased job satisfaction and reduced turnover. Organizations practicing open-book management • See the big picture, allowing them to leave their silos report that employees: and become team players. Giving employees a view of the big picture also makes them more engaged, • eel a stronger sense of ownership in the F helps them understand how their roles fit in the organization. organization, and how they can make a difference. • evelop more trusting and collaborative relationships D All of these factors lead to an improved bottom line. with their employers. A study conducted by the National Center for Employee Ownership (NCEO) found that organizations which • nderstand their organization’s cost structure and U follow open-book management principles experienced make better informed suggestions for improvement. a 1-2 percent annual increase in sales growth above • nderstand the need for cost controls through the U typical sales projections. regular sharing of financial information and become more responsible in how they use their organizations’ resources. Example: CleanScapes CleanScapes, a waste reduction, diversion and collection service headquartered in Seattle, Washington, was recently named by Inc. Magazine as one of the top 5,000 fastest growing companies in the U.S. and the fourth fastest growing environmental firm. Leaders at CleanScapes credit much of their success (which includes $50 million in revenue in 2009, low employee turnover and high levels of customer satisfaction) to their open-book management approach. CleanScapes keeps close tabs on important metrics (called “CleanStats”) and shares them with employees during weekly meetings. These metrics go beyond financial and include operational efficiencies, errors and kudos. “The metrics have been instrumental in helping the firm meet and beat its internal financial performance goals,” reports HR Manager Bonnie Abbott. In addition to tracking and reporting on metrics, CleanScapes leaders hold daily morning huddles by department. The company also offers generous benefits and is known to promote from within. Drivers and managers meet for lunch once a month to offer feedback and suggestions on how to improve operations, which has resulted in organization-wide efficiency gains which include lower missed pick-ups, fewer accidents and reduced route hours. Source: Broughton, 2011.28 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2012 To subscribe, visit