Positioning Your Organization to Attract and Retain Top Talent - Jobstreet.com HR Networking Event 2007

Slide 1: POSITIONING YOUR ORGANISATION TO ATTRACT AND RETAIN TOP TALENT Case Study of CNI’s Journey Kenny Ong CNI Holdings Berhad

Slide 2: Contents: A. Background & Philosophy B. Positioning C. Attraction & Retention plans D. Issues, Mistakes & Lessons Learned E. For Start Ups… F. Summary

Slide 3: Background & Philosophy The anchor for all decisions

Slide 4: Before we start… • Who designs your Talent Management programs? • Are you in the Talent Pool? • Do you qualify? • “It takes a crook to catch a crook”

Slide 5: About: CNI 1. 18 years old 2. Core Business: MLM 3. Others: Contract Manufacturing, Export/Trading, eCommerce 4. Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan 5. Staff force: ± 500 6. Distributors: 250,000 7. Products: Consumer Goods and Services

Slide 6: A. Background & Philosophy Principles Background & Implications 1.Founders 1. Flexibility vs. 2.Senior leaders Discipline 3.Age, Gender, Race 2. Ad-hoc not a barrier 3. Project-based 4.Customer-focused, 4. Empowerment really focused 5. Young talents leaving

Slide 7: Background: The Four Desperates 1. Desperate 2. Desperate Competition Consumer 3. Desperate 4. Desperate Achievers Changes

Slide 8: The 51.28% Theory • Resign = Push + Pull > 51.28% • If staff is Happy: => 0 + Pull > 51.28%

Slide 9: Philosophy Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.” “Retention and Loyalty are useless if No Conversion is happening.” Sergio Zyman

Slide 10: Philosophy “Retention and Loyalty are useless if No Conversion is happening.” “Retention and Loyalty are useless if No Performance is happening.”

Slide 11: Philosophy Loyalty is misleading… • Heavy Consumption ≠ Loyalty • Loyalty ≠ Heavy Consumption • Good Performance ≠ Retention • Retention ≠ Good Performance

Slide 12: Philosophy “In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.” HBR March/April 1996

Slide 13: A. Background & Philosophy Principles HR Philosophy 1. Equal / Fair 2. Happy / Productive 3. Hire Low, Train High 4. Performance vs Potential 5. SP drives TM 6. Talent Pool owned by the company 7. Retention / Engagement

Slide 14: Positioning Retain, Remove, Refuse

Slide 15: Positioning “Hope is not a strategy” John Maxwell

Slide 16: Positioning • For who? • Your Offer? • Key Differentiator?

Slide 17: Attraction & Retention Plans Target. Experience. Bingo

Slide 18: Targeting: Identify and Attract • Who is your Talent? : A Talent for others does not mean a Talent for you

Slide 19: CNI’s Talent Profile • Unwanted by big MNCs • Small companies • Boring Environment • No Growth/Learning • No MBA • Passion, Values, IQ (streetsmart) • Appreciate Chaos • Multitask • Passion to Learn

Slide 20: Targeting: Identify and Attract • Identify POTENTIAL 2 3 4 5 PERFORMANCE Group I 5 (Talent Pool) 4 3 2

Slide 21: Targeting: Identify and Attract • Identify POTENTIAL 2 3 4 5 PERFORMANCE Group II Group I 5 ( Potential) (Talent Pool) 4 Group IV Group III 3 (Counseling) ( Performance) 2

Slide 22: **Additional Categories Definition of ‘Premium’ staff Definition of ‘Specialist’ Staff 2. Specially selected from the 2. Has competencies (skills & TP. knowledge) in a particular 3. They have in addition, the professional field of work. following attributes: 3. A staff is deemed to be a a. High-profile in the field or Specialist when all the industry following occurs: b. Loyalty proven c. Proven high work-rate and a. The particular Competency great attitude (Skills or Knowledge or d. Undeniable contribution both) is highly required by and efforts CNI e. Highly looked upon and b. Supply for the competency respected by most staff in the market is low but f. Ability to multi-task and demand is high assist in various areas c. The competency is difficult g. Key people in CNI’s to learn, transfer and/or Succession Plans duplicate

Slide 23: Targeting: Identify and Attract Retention Experience Swing Ex Oppose

Slide 24: Attract “You don’t attract who you want. You attract who you are” John Maxwell

Slide 25: Attract 1. What’s your main Differentiator? – Money? Opportunity? Big Projects? Big Clients? Career Growth? Environment? Love and Fresh Air? 2. Fish where the Fish are… i.e. Jobstreet 3. Hire Strict. Refuse if possible. 4. Look for Passion, IQ, and the “Unwanted” 5. Who you retire determines who you attract

Slide 26: Attract: HR and Marketing 1. Who designs your Job Ads? 1. It better be Marketing 2. Understand the psychology of a Talent Job Seeker when reading Job Ads 3. Not sure? Consult Jobstreet 4. Use Marketing weapons for Job Ads: brand logos, slogans, newspaper clips, awards, customer profile, video clips, web, banners etc.

Slide 27: Retention 1: Experience Loyalty = Experience vs. Expectations Solution Strategy: Talent Management Plan

Slide 28: Loyalty 1: Experience • What “Expectations”? Refer Q12 1. Clear expectations 1. Expression 2. Resources 2. Company Mission 3. Maximize talents 3. Co-workers** 4. Recognition 4. Friends 5. Caring Boss 5. Progress updates 6. Encourage 6. Learn and Grow development*

Slide 29: Loyalty 2: Swing Loyalty = Best alternative at the current moment until I find another alternative Solution Strategy: Improve your Q12, or Try Your Best, or Live with It

Slide 30: Loyalty 1: Experience • Talent P/P Grid, SP Table, Management Plan PDP, Premium, Selection P/P Grid, Q12, PA, SDP, SP Evaluation Philosophy Development OJT, Mentoring, Big-5, LP, PDP, Motivation SDP, Projects, Q12, C&B, ACDP, SCL, Transfers, Events, Recognition

Slide 31: Strategy: C&B 1. Eliminate Staff Awards 1. Additional Profit Sharing 2. Eliminate Staff Trips points for TP 3. Eliminate HOD trips 2. ↑ Pay for Performers, ↓ pay for Non-Performers 4. Remove Salary structure limitations for TP 3. Additional % during 5. Premium Group Pay annual increments 6. Year-round 4. Special Allowances promotions/increment 5. SCL Allowances 7. Spot Bonus Pool 6. Flexitime

Slide 32: Loyalty 2: Swing Swing Talents are “loyal” because: • Individual Relationships • Convenience (at that point in time) • Contractually tied-up • Direct Incentives* • No better alternative • Subordinates • No known alternative • CV friendly

Slide 33: Dangers of Direct Incentives 1. lessen internal motivation, 2. switch to mercenary mode, 3. do something and do not do something else, 4. bribe and fraud culture, 5. easier for competitors to recruit, 6. lessen teamwork & helpful culture, 7. less and less impact for same value, 8. mockery of base salary and employment contract, 9. rebellion from non-incentivised staff, 10. end up incentivising everyone for everything?,

Slide 34: Try Your Best… 1. Over Promote 1. “Position” the 2. Loans competition 3. Spot Bonuses 2. Sell the Dream 4. Block recruiters 3. Give them a Best Friend 5. The Spouse 6. Toys 4. Internal Trainer 7. Glorified Titles 8. Forced Ambassador

Slide 35: Issues, Mistakes, and Lessons If at first you don’t succeed, don’t try skydiving

Slide 36: Issues and Challenges 1. HODs unclear 2. HODs disagree/unsupportive of TM 3. HODs not committed to developing staff 4. Functional silos 5. HODs not willing to openly differentiate staff 6. Incompetent superiors/HODs to TP staff 7. Succession plan for specific positions is a moving target

Slide 37: Issues and Challenges 1. Difficult to evaluate Performance 2. Difficult to evaluate Potential 3. Aligning TM and SP with Business Goals 4. To the Talent Pool, it is more work, no reward 5. Unsynchronized and unmonitored training and development 6. Difficult for TP staff to allocate time for training and development 7. “Once in, always in” predicament

Slide 38: Mistakes and Lessons 1. Succession Planning = business directions 2. CEO’s role 3. Separate HRM and TND departments 4. Measuring Potential is really difficult. 5. Two types of Talent: Leaders and Specialists 6. Openly announcing the Talent Pool - painful! 7. PDP group of rough diamonds 8. Split Leadership Development 9. Official annual ‘Event’ 10. TM = Annual Performance Appraisal Discussions

Slide 39: Mistakes and Lessons 1. Quarterly Performance Appraisals 2. Change attitude and become arrogant. 3. Create a ‘Premium Group’ 4. Projects and OJT assignments 5. HODs = TP caretakers 6. HODs can get isolated and jealous. 7. Under-performing HODs. 8. Rewards 9. Sell and allocate their TP candidates 10. TM = HRM

Slide 40: More problems we faced 1. Criticism of TP selection 2. Limited Funds 3. ‘Silo’ mentality 4. Competitor recruitment target! 5. Removal of Talent Pool members

Slide 41: Start Up & Summary The end of the Beginning

Slide 42: For Starting Up… 1. Get the Business Strategy right 2. Link HR’s role to Strategy (e.g. BSC) 3. Clarify the HR Philosophy 4. Strengthen Performance Management System 5. Tackle the Learning Culture 6. Redirect Funds ($$) 7. Design simple Selection process 8. Develop and Reward focused on Talent Pool 9. Communicate throughout 10. Attend more Jobstreet conferences

Slide 43: Summary 1. Big matters/Small 1. Flat Structure? Matters 2. The Jerk Boss 2. Differentiate of Die 3. All aspects 3. Define “Talent” 4. Hire Strict 4. No “Jerk” rule

Slide 44: Summary Segmented & Targeted Attraction, Retention and Succession STARS ™

Slide 45: Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.b logspot.com/