Retention & Engagement Version 4


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  • Retention & Engagement Version 4

    1. 1. Human Capital – Performance & Rewards Ernst & Young Romania
    2. 2. Employee Engagement
    3. 3. Retaining Employees – Business Impact <ul><li>Taco Bell – Top 20% employee-retention stores had double the sales and were 55% more profitable than bottom 20% employee-retention stores. </li></ul><ul><li>Marriott -10% reduction in turnover leads to $50-$100 million increase in revenue. </li></ul><ul><li>1 % reduction in attrition for IBM global services India resulted in a saving of 1 mil $ per annum. </li></ul>
    4. 4. Key Principles of Retention Retention is fundamentally linked to engagement A few leaders/managers drive most of attrition Its important to focus on Stars & Solid Contributors
    5. 5. Employee Engagement & Retention are directly related to each other – IT Company Illustration
    6. 6. A few Leaders/Managers drive most of Attrition <ul><li>“ People leave managers, not companies . . . If you have a turnover problem, look first to your managers.” </li></ul><ul><li>First, Break All The Rules, By Marcus Buckingham & Curt Coffman </li></ul><ul><li>“ When job opportunities are plentiful, people with crummy bosses leave.” </li></ul><ul><li>From Hidden Value: How Great Companies Achieve Extraordinary </li></ul><ul><li>Results With Ordinary People by Charles O’Reilly III </li></ul><ul><li>80% of employees view their company and their supervisor the same way. </li></ul><ul><li>University of Michigan </li></ul>
    7. 7. Talent Watch Survey Data Indicates: <ul><li>Join companies for: </li></ul><ul><ul><li>Organization Factors: pay, benefits, reputation </li></ul></ul><ul><ul><li>Job factors: Schedule, Challenge, Learning </li></ul></ul><ul><ul><li>Leader factors: Trustworthy, Coach, Flexible </li></ul></ul><ul><li>Leave Companies for: </li></ul><ul><ul><li>Leader factors: Trustworthy, Coach, Flexible </li></ul></ul><ul><ul><li>Job factors: Schedule, Challenge, Learning </li></ul></ul><ul><ul><li>Organization factors: Pay, Benefits, Reputation </li></ul></ul>
    8. 8. Important to focus on Stars & Solid Contributors <ul><li>Invest heavily in the stars (top 20-25 %) </li></ul><ul><ul><li>Identify the brightest talents over a period of time </li></ul></ul><ul><ul><li>Give them higher responsibilities and higher variable paybacks </li></ul></ul><ul><ul><li>Be conscious of not disturbing the solid contributors </li></ul></ul><ul><li>Grow the solidly contributing players ( 70% of the organization) </li></ul><ul><ul><li>They are the operational arms of the organization and its conscience in times of change </li></ul></ul><ul><ul><li>Recognize and consult them </li></ul></ul><ul><ul><li>Coach them on their development areas. </li></ul></ul><ul><ul><li>Pay them well for their contributions </li></ul></ul><ul><li>Act decisively on the “disaffected marginal performers” ( bottom 5-10%) </li></ul><ul><ul><li>They make bad bosses & poor role models and tend to attract other sub standard performers </li></ul></ul>
    9. 9. What can we do about Engagement & Retention <ul><li>Engagement & Retention Diagnostics </li></ul><ul><li>Action Steps to improve Engagement & Retention </li></ul>
    10. 10. Engagement Diagnostics <ul><li>Engaged employees will : </li></ul><ul><ul><li>Communicate: Consistently speak positively about the organization </li></ul></ul><ul><ul><li>Consult & Coach: Look at solutions & work with others to tackle it </li></ul></ul><ul><ul><li>Commit: Make extra effort and have an intense desire to stay </li></ul></ul><ul><li>Typical Surveys focus on Leadership & People Policies </li></ul><ul><li>Types of Engagement Analysis based on Employee Satisfaction Survey: </li></ul><ul><ul><li>Overall Satisfaction & Correlation with past data </li></ul></ul><ul><ul><li>Analysis by Experience, Level, Education, Age, Sex </li></ul></ul><ul><ul><li>Analysis by Function/Department; Supervisor/Leader </li></ul></ul>
    11. 11. Retention Diagnostics <ul><li>Institutionalizing Attrition Analysis - Tools Used </li></ul><ul><ul><li>Exit analysis for all associates </li></ul></ul><ul><ul><li>Attrition Analysis Framework for Organization Data </li></ul></ul><ul><li>Types of data analysis </li></ul><ul><ul><li>Voluntary/Managed Attrition </li></ul></ul><ul><ul><li>Skill Wise Attrition </li></ul></ul><ul><ul><li>Experience wise, Level wise attrition </li></ul></ul><ul><ul><li>Band and gender analysis </li></ul></ul><ul><ul><li>Root cause analysis </li></ul></ul>
    12. 12. Actions to improve Engagement & Retention <ul><li>Communicate business direction & leadership expectations to employees regularly & ask for feedback </li></ul><ul><li>Market driven Compensation revisions targeted at employee groups with high attrition levels (example employees with 2-6 years experience) </li></ul><ul><li>Innovative long term incentives & retention programs </li></ul><ul><li>Focus on career programs, job rotations & secondments </li></ul><ul><li>Transparent, business driven & consistent implementation of perf. appraisal & annual awards linked to the appraisal programme </li></ul><ul><li>Attrition & employee satisfaction figures indexed to leaders & retention /engagement of employees given 20-30% of weightage in their performance appraisal </li></ul>
    13. 13. Actions to improve Engagement & Retention (Contd.) <ul><li>Personnel policies simplified & communicated to all employees specially new employees; </li></ul><ul><li>Improve induction/orientation programme for new hires </li></ul><ul><li>Improve flexible working and mobility specially for working mothers </li></ul><ul><li>Organize and track focus groups, 1-1 meetings and informal get-togethers </li></ul><ul><li>Restructuring of the HR function to focus and measure responsiveness to resourcing, retention/engagement and transaction needs of the organization </li></ul>
    14. 14. Human Capital Services <ul><li>HR Infrastructure for Start-up Companies – Quick & effective start of business (Compensation, Recruitment, Labor compliance, Establishing the HR Function/HR Outsourcing) </li></ul><ul><li>HR Due Diligence & Merger Integration – Managing Human Capital integration Risks (Due Diligence, Day 1 Readiness, Post Merger Integration) </li></ul><ul><li>Total Rewards – Designing & Implementing Reward Prog. (Comp. Surveys, Performance Mgmt., Variable Pay Design & Implementation) </li></ul><ul><li>Talent Management – Attracting, engaging and retaining talent (Diagnostics & Action Plans for Attracting, Engaging & Retaining Talent) </li></ul><ul><li>Aligning People Strategy to Business – Improving focus & effectiveness of HR (HR Diagnostics & Restructuring/Enablement of HR) </li></ul><ul><li>HR Outsourcing – Building scale & reducing costs in HR administration </li></ul>
    15. 15. <ul><ul><ul><ul><ul><li>Thank You </li></ul></ul></ul></ul></ul>
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