Implementing a Talent Retention Strategy

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To understand the drivers of engagement and retention and how to develop and implement a retention strategy …

To understand the drivers of engagement and retention and how to develop and implement a retention strategy
• Aligning retention with an integrated TM framework
• Understanding motivation, engagement, commitment and retention
• customising retention drivers and initiatives
• Diagnostics to test actual drivers and impact of current and future initiatives – interviews, focus groups, surveys, best practice research
• Talent segmentation
• Prioritising initiatives and building a road-map for retention
• Successes and Lessons learnt

More in: Recruiting & HR
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  • Retention Strategy is a key component of the foundation to the Buckman Talent Management Framework. It is made up of a number of tangible and intangible drivers which provide a holistic approach to Retention and its function as part of the overall Talent Strategy. Traditionally, retention strategies have been aimed at key talent only. However, a holistic retention strategy allows a view in which all associates are retained, according to their relative importance to business success and continuity. These five pillars provide focused areas of retention and associated mechanisms. Different mechanisms in each pillar provide ways of retaining and motivating associates. These mechanisms are a combination or monetary or non-monetary and tangible and intangible options.
  • The CEO has defined the mandate for the Retention project

Transcript

  • 1. The client AND CATALYST “Bringing retention to life” 28 February 2013
  • 2. Catalysts in creating high performance, high engagement organisations through developing leaders, building capacity, and leveraging talent Experienced team
  • 3. - 3 -© Catalyst Consulting Topics 1. The Case for Proactive Retention Strategies 2. Creating the need: Retention Burning Platform, Vision, Goals and Measures 3. Customising Retention to local issues and groups 4. Applying findings to business priorities and choosing wisely 5. Crafting implementation plans and gaining buy-in 6. Challenges and Lessons Learnt
  • 4. The Case for Proactive Retention Strategies
  • 5. - 5 -© Catalyst Consulting The Perfect Talent Storm Cost cutting vs closing the skills gap The economic crisis Different needs and expectations - the generation gap Individualise vs standardise Restructuring, downsizing, cost management vs retention Globalisation and access to information Employer of choice Shift in power from employer to employee Ageing workforce High turnover of key talent Employment equity targets Engagement studies
  • 6. - 6 -© Catalyst Consulting
  • 7. - 7 -© Catalyst Consulting - 7 - Catalyst Talent Management Framework Effective Talent Management ensures operational continuity and sustainability by ensuring that the right people, with the right skills, are in the right job, at the right time to ensure successful business results.
  • 8. - 8 -© Catalyst Consulting The link between engagement and retention Engagement “the state in which INDIVIDUALS are emotionally and intellectually committed to the organization or group” “people join organisations” Retention “To hold and keep in possession and to engage the services of stars and key players in mission critical and priority skills positions” “People leave bosses”
  • 9. - 9 -© Catalyst Consulting Retention and Engagement: the relationship  Lack of Engagement always leads to employee turnover – Lack of viable options  Highly engaged employees rarely leave the organisation – Engaging work but poor leadership, or leave for more engaging work  High retention organisations are always characterized by highly engaged workforces – poor economic conditions – disengaged but few options  The factors and solutions relating to employee retention are identical to those of engagement – Similar but not identical ie. compensation typically only affects retention Human Resource Planning: the race for talent: retaining and engaging workers in the 21st century (Talent Keepers)
  • 10. - 10 -© Catalyst Consulting Research Findings Towers Perrin: • high engagement companies outperform their competitors in terms of profitability • engagement is a catalyst towards retention • direct correlation between engagement and revenue growth Hewitt: 4 years, 2000 best employer companies, 50 countries • 60-100% engagement = TSR 20.2% • 49-60% engagement = TSR 5.6% • > 40% engagement = TSR -9.6% CLC study : • Every 10% commitment = 6% effort = 2% perf • employee commitment - prob of departure 87%. The top 3 drivers of commitment (potentially impacting commitment by 45%) are: • development opportunities • job-interests alignment • respect for employees EVP 3 key benefits: • Improved attractiveness - deeper pool of talent including passive talent– up to 20% more • Greater commitment - 40% vs >10% • Compensation savings - Spend 10% less on base pay
  • 11. - 11 -© Catalyst Consulting The Business Case Monetary Non-Monetary Labour Turnover Cost of lost employee international benchmark – R350,000, US $55,500) Made up of the following costs: • Recruitment and selection; • Retraining; • Productivity loss during vacant period; • On-boarding and cultural assimilation. Other Reduced ROI on compensation spend Tangible • Loss of MCP and scarce skills • Reduced productivity Intangible • Impact on morale and culture • Reduced engagement levels • Impact on team dynamics • EE and diversity impacted • Undermines TM strategy and achievement of company and HCD vision • Unstable organisation • Impact on corporate reputation
  • 12. - 12 -© Catalyst Consulting Why retention doesn’t always “stick”  The organisation does not understand what really motivates people  Retention strategies are not holistic and integrated (systems approach)  Leader’s are not focused on retention – fire-fighting  Leaders not measured or rewarded for retention  Retention is seen as an HR practice  Rewards are not a differentiator  Leaders are not trained effectively in managing engagement, enablement and empowerment  The culture doesn’t support retention
  • 13. - 13 -© Catalyst Consulting The truth about extrinsic motivation The Carrot and Stick approach – 7 deadly flaws 1. They extinguish intrinsic motivation 2. They can diminish performance 3. They can crush creativity 4. They can crowd out good behaviour 5. They can encourage cheating, short cuts and unethical behaviour 6. They can become addictive 7. They can foster short term thinking As long as tasks involve only mechanical skill, bonuses work exactly as expected: The higher the pay, the better the performance. Once a task calls for “even rudimentary cognitive skill,” a larger reward leads to poorer performance. Daniel Pink – Drive 2011 Concentrate on building a healthy long term motivational environment that pays people fairly and fosters autonomy, mastery and purpose. Avoid “if-then” rewards. Consider non-contingent, unexpected “now that” rewards Provide praise and feedback, rather than things people can touch or spend Provide useful information rather than an attempt to control
  • 14. - 14 -© Catalyst Consulting Talent Retention Drivers – 5 greats and the 3 E’s Great Leaders Leadership style, engagement, coaching, growing Great Jobs Interesting, challenging jobs, flexible options, space creation Great Rewards Rewards that motivate, recognition for value, special initiatives for at risk people in MCPs Great Culture Conducive environment for learning, growth, accountability, performance management, teamwork Great Company Talent value proposition, brand, image reputation as employer Engagement Enablement Empowerment
  • 15. Creating the need: Retention Burning Platform, Vision, Goals and Measures
  • 16. - 16 -© Catalyst Consulting The Client Retention Challenge  Global energy industry trends indicate a growing scarcity of talent – Retirements rising (376 next 8 yrs) and fewer young people attracted – Rising demand for experienced skills and industry competition (Africa) but global skills shortage  The client is losing people in critical and scarce talent segments (top 20 risks) – Knowledge transfer to younger generations not happening fast enough – Experienced experts over-loaded and frustrated due to lack of depth and experience of technical skills – The age profile of The client is still skewed - more older retiring, less younger struggling to fit in – struggling to retain talented EE candidates (revolving door syndrome) , women and PWDs  Analysis of the reasons for leaving the client has revealed ... – a failure to meet the needs of employees with respect to professional development, compensation and quality of direct supervision and management  Recent focus group, interviews and surveys indicate significant frustration with – lack of visible and engaging leadership and leaders not living the values – lack of clear focus and decision making leads to initiative overload and poor follow through – a culture that has shifted to one of fear, bureaucracy and control and displays lack of trust, empowerment, teamwork and customer focus, – development is often just an empty promise
  • 17. - 17 -© Catalyst Consulting Retention project mandate Purpose: “to make the retention strategy come alive within the client such that it ensures that employees believe that with us "they are number one.“ Vision: • To grow talent champions that engage, enable and empower people to perform Objectives: • To develop a fully aligned and integrated solution to achieve the purpose and retain mission critical and high potential people
  • 18. Retention Framework Retention vision: To grow leaders as talent champions that engage, enable and empower people for high performance Core values integrity, performance, teamwork, ownership, empowerment “what matters to you, matters to us” Great Leaders “Engage Me” Great Careers “Develop Me” Great Rewards “Recognise & Reward me” Great Culture “Support Me” Great Company “Attract Me” Develop & Deploy Discover Retain Talent Supply (People) Talent Demand (positions) Impact of revised strategy?
  • 19. - 19 -© Catalyst Consulting Business Outcomes Project Objectives • Identify and develop critical talent segments • Reduce risk of voluntary turnover of HIPOS, MCPs and critical talent segments • Drive implementation of the Talent Management strategy • Grow talent champions that engage, enable and empower people to perform and stay– KPI • Create a nurturing environment Business Outcomes • Critical talent segments are engaged and committed to stay • MCPs have appropriate bench-depth of successors • Leaders that display the Leadership Brand behaviours and are talent and values champions • Culture that encourages collaboration, high performance, diversity and learning Measures • Optimised turnover of key segments by x% • Improved engagement survey results • Leadership brand assessment results
  • 20. Customising Retention to local issues and groups
  • 21. - 21 -© Catalyst Consulting Diagnostics: Focus group and interview feedback  In total there were 19 interviews, 11 focus groups and org wide engagement survey  The purpose of the diagnostics were – To test perceptions of current retention initiatives – To test preferences for future retention initiatives – To identify different needs per segment  Segments were identified to test these Interviews Focus Groups Org Survey
  • 22. - 22 -© Catalyst Consulting Attributes and Offerings for Engagement and Retention - illustrative Great Company Great Jobs Great Reward Great Leaders Great Culture Engagement, Enablement, Empowerment, • EVP awareness • Brand reputation • Corporate Social Responsibility • Performance mgt • Work-life balance • Role and goal alignment • Recognition programs • L/T Incentives • S/T incentives • Live the Leadership Brand • Hold people accountability • Purpose driven • Values Driven • Coaching and mentoring • Decision making • Social interaction • Bursary scheme • Sponsorships • Project work • Acting opportunities • Progression routes/technical ladders • STIP • Leadership development programs • Coaching and mentoring • Values known and lived • Induction program • Talent Forums • Career discussions • IDP reviews • Flexible work hours • Virtual office • HIPO exposure to projects • Technical competencies defined • Share scheme equivalent • Recognition mechanisms • Leadership brand defined and measured • Accelerated development • Culture of dialogue and honest conversations • Social media strategy • HR Capacity building • Review decision rules for empowerment) AttributesCurrentFuture
  • 23. - 23 -© Catalyst Consulting Retention Pillars RETENTION STRATEGY “The Pillars” Great Company Great Culture Great Career Great Leaders Great Rewards & Recognition The client Brand and reputation The client Values and Organisational Culture and behaviours Long term opportunities for development and advancement Inspiring leadership and best people Marketable/ equitable remuneration, benefits & recognition (tangible and intangible) Engagement, Enablement, Empowerment
  • 24. - 24 -© Catalyst Consulting The size of the gap to fix current initiatives GREAT COMPANY GREAT JOBS GREAT REWARD GREAT LEADERS GREAT CULTURE ENGAGEMENT, ENABLEMENT, EMPOWERMENT 1. Brand embedding 8.Documente, realistic career plans 7. Short and long term incentives or bonuses 2. Active, visible leaders 1. Values embedding 4. Formal learning and development 11 Projects and assignments 9. Revised recognition program 3. Effective managers 5. Diversity appreciation 6. Knowledge transfer and mentoring 10. Think tanks and knowledge forums Large gap Medium gap Small gap The numbers refer to the priority of the need
  • 25. - 25 -© Catalyst Consulting The client diagnostics reveal….. We are a company ruled by the mind, but lacking in heart…. What we are poor at Lack of visible and engaging leadership - Invisible, unapproachable, divided, political Not living the values – or walking the talk Lack of teamwork, communication and collaboration – silos and cross-purposes Culture has shifted to one of fear, bureaucracy and control We feel rule-bound, disempowered and disengaged Trust is gone. Fear of failure leads to inaction or decision by committee. Lack of agility Lack of customer focus Development is often just an empty promise What we are good at Clear vision, goal and direction. Know how everyone can contribute Metrics and measures to help us plan Clear procedures to help us do our work. Leader in industry Learning is part of work Consistent & predictable We need to build team-work, collaboration and emotional connection through inspiring a values based culture that is engaging and where people feel valued
  • 26. Technical specialists and MCPs were added together due to similar needs. VCs is a very large group and will be addressed through universal initiatives therefore not requiring segmentation (NOW EXPERTS) Segmentation refinement GMs were added to Global talent due to their important impact on retention drivers and similar needs to global talent (NOW EXEC TALENT) Level 2 & 3 successors were added together due to similar needs (NOW NEXT GEN LEADERS) Senior women’s needs were no different from all women (unless they were HIPOS) PDIs would be catered for under Gen Y or HIPOs, but the senior PDIs (if not successors) were added for importance to transformation issues (NOW STRATEGIC TRANSFORMATION) Criteria for segmentation: CLC customise for The client Is the segment measureable, accessible and substantial? Does the segment’s preferences vary enough to warrant investment in a segmented EVP? Do the segment’s ways of consuming information vary enough to warrant a different competitive approach? Is the segment important to the organistional strategy and can the organisation support the need of this group?
  • 27. - 27 -© Catalyst Consulting Differentiated needs per segment Segment Differentiated needs Universal needs 1 Executive Talent GM + Global talent • Global exposure • Empowerment to lead • Honest, constructive conversations CORE NEEDS • inspirational leadership • Clarity on vision, my contribution and feedback on progress • Empowerment to make decisions- less reliance on policies • Evidence of values and culture • Teamwork and collaboration • Professional development • Coaching and mentoring • Fair career progression and planning • Diversity accepted and encouraged SECONDARY • Effective and fair reward and recognition • Strengthening professional networks • Appropriate remuneration • Work | life balance and workplace flexibility • Meaning and purpose in work • Effective and fair management • Openness to change and innovation 2 Next generation leaders Level 2 and 3 successors • Clear career path • Accelerated development • Be consulted - have a voice 3 High Potentials Successors excl level 2&3 successors • Clear career path • Accelerated development • Consequence management 4 Experts Technical experts/ MCP’s • Recognition for making a contribution Resources and support to deliver • Continual professional development 5 Emerging talent Gen Y >30 yeats • Sense of belonging to a group • Flexible work arrangements • Openness to change and innovation 6 Expats and Repats External to SA & returning to SA • Consulted and involved in strategic decisions • Consideration of regional differences • Market related pay 7 Strategic Transformation Senior PDI, all PWD and all women • Genuine cultural and gender diversity • Flexible work arrangements
  • 28. Applying findings to business priorities and choosing wisely
  • 29. - 29 -© Catalyst Consulting High level recommendations HR Back to basics Vision, values and culture Performance and reward Leadership style and competence Creative options Strategic change management 70% - fix existing 30% - new 70% 30%
  • 30. - 30 -© Catalyst Consulting High level recommendations – revised HR Back to basics 1. HR strategic focus and improved communication 2. HR Capacity building 3. Refresh EVP 4. Talent forum refresher & actions implemented 5. Refine talent IT system Leadership & culture 1. Leadership brand development 2. Values revitalisation Performance and reward 1. Performance scorecard cascading 2. Segmented reward strategies 3. Recognition program Capability Development 1. Career pathing for HIPOs 2. Segmented talent strategies 3. Coaching and mentoring Creative options 1. Flexible work L/T incentives 2. Gen Y/women programs 3. Innovation initiative 4. CSI program volunteering 5. HIPO programs 6. Team & diversity programs 30% - new 1 2 3
  • 31. - 31 -© Catalyst Consulting Alignment between retention and POCS projects Performance Contracting Leadership brand for senior leaders (incl values) Reward & Recognition for key talent segments Employer branding - EVP Talent co-ordination of key talent segments Career pathing for HIPOs Big 6 priorities from project team – S/T Final big 3 focus areas from project team – S/T HR/TM Back to basics HCD strategic focus and comms (EVP), Nakisa Leadership & culture Leadership Brand (DNA) Culture barrier busting Performance & reward Segmented reward & recog Capability Development Career pathing & IDPs Segmented strategies Performance Contracting Values Talent co-ordination L/T Creative options ROWE, flexibility, Gen Y, Innovation, Women, CSI volunteering 1 2 3 Values Performance Contracting Leadership culture Reward & Recognition for key talent segments Capability development Big 5 priorities from POCS focus groups Customer Focus Managed through diff project
  • 32. Crafting implementation plans and gaining buy-in
  • 33. - 33 -© Catalyst Consulting Retention Strategy High Level Implementation Plan Aug Sept OctJuly Leadership &culture Capability Development Performance &Reward Key events 1 2 3 Values launch LS brand MC design LS brand launch – café conversations LS brand dev workshops LS 360 assess & coaching Values reinforcement Values recognition EVP launch POCS survey CEO road-show 3-12 Sept HIPO career pathing with HIPO managers HIPO career pathing HC workshop (3 days) HIPO dev plan implementation Coaching implementation (low key) Perf cascading & training Recognition policy review communication HRMC 15 Aug HR capacity building Values – leader’s role
  • 34. - 34 -© Catalyst Consulting Retention Strategy Measures (long term) Element Retention - Tracked bi-annually Objectives Indicators Outcome base measures MCP # ready now/later successor <1/2 yr Min 1:1:2 Voluntary turnover % of MCP and HIPOs 2% less than overall turnover POCS engagement survey (internal) - By key talent segment % overall rating Leadership brand/values survey (multi-rater) % on multi-rater survey Appointments in line with succession plans Successors appointed (based on MCP no of vacancies)
  • 35. - 35 -© Catalyst Consulting Mobilising for Change Emotional impact of change Managing culture & resistance Communication and Mobilising Plan Sustaining the Change Skills transfer Measure progress Consolidate the change Capacity for Change Change team alignment Change plans, roles & resources Change agent capacity building Stakeholder Management Stakeholder identification Change influencers identification Readiness assessment Catalyst Strategic Change Framework Performance 2 3 4 5 Imperatives for Change Business imperative Impact of change Leadership vision & commitment 1
  • 36. Highlights and Lessons Learnt
  • 37. - 37 -© Catalyst Consulting Achievement and Lessons Learnt Achievements • Buy in of HCD team – integration and collaboration • Classification of talent segments – tested • HCD team aligning around a common EVP • Quick wins implemented • Holistic understanding of Retention • Embedded The client’s talent management philosophy • Aligning project priorities to business priorities (KPIs) • Assisted to crystalise what needed to be done by HCD. Learnings • Some meetings too long and repetitive • Disruptions led to delays in the project • Lack of sufficient engagement with CEO upfront and continuously – project manager and sponsor • Greater role clarification of core team • Greater involvement of line to gain buy-in • More careful selection of Steercom • Beware of too much detail and too many priorities – mountain of data • Presentation approach to the MC
  • 38. - 38 -© Catalyst Consulting Progress and Results  Business strategy adopted and prioritised the development of the Leadership Brand, Values Revitalisation and establishment of a Coaching and Mentorship Academy for scorecarding requirements  Increased weighting of Talent Management component on BSC – 5% to 15%  Integration of our CVP and EVP with the Values system providing the glue to hold it all together  Launch of the EVP  Leadership Brand development and first 360 degree evaluation to create baseline  Revitalisation of the Values Programme linked to a broader company recognition programme  Talent management focus now prioritising mobility to aid capacity building and bench strength depth
  • 39. - 39 -© Catalyst Consulting Stay in touch …. Stay informed @catalystsa www.catalystconsulting.co.za www.iamtalent.co.za www.iamalive.co.za www.worldalive.co.za Catalyst Consulting (new) iamalive Catalyst Consulting South Africa Books .. Quarterly Newsletters .. Articles Breakfast sessions .. Public workshops .. insights ... Sharing info …tweets