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
• 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

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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
  • Implementing a Talent Retention Strategy

    1. 1. Practical Strategies for Engaging & Retaining Talent Debbie Craig – MD Catalyst Consulting
    2. 2. Catalysts in creating high performance, high engagement organisations through developing leaders, building capacity, and leveraging talent Experienced team CONSULTING SOLUTIONS Partners in customised solutions to people challenges LEARNING SOLUTIONS Break-through learning to build capacity REAL BUSINESS VALUE Thought Leadership Experienced Team Practical Tools Global & Local Track Record
    3. 3. Topics The case for retention strategies Creating the need: burning platform, vision, goals Customising: identifying target audiences Prioritising: choosing focus areas and activities Implementing: planning and gaining buy-in Challenges and lessons learnt www.catalystconsulting.co.za @CatalystSA
    4. 4. The Case for Retention Strategies
    5. 5. The perfect talent storm Option 05 Skills shortage Education & unemployment crisis Aging workforce Generation gap different preferences Making space Need to identify talent Identify & develop talent early Global challenges Africa, ex-pats, culture, new dynamics Manage succession risk Future talent pipelines Retention risk High turnover of key talent Local challenges Education, employment equity, diversity, legislation Need to engage different expectations of talent & millenials, EVP The PERFECT TALENT STORM With organisations today operating under unprecedented conditions of competition and turbulence, it is increasingly difficult to attract and retain talented employees and scarce skills positions. It is therefore imperative that during these times, organisations develop a purposeful process for sourcing, attracting, engaging, managing, developing and retaining key talent. “People have become the key differentiator in today’s knowledge-based economy”. VUCA world Disruptive technologies, economic uncertainty Restructuring, downsizing, LEAN, agile Power shift – customers/partners Access to info (social media) New breed of employee Millennials, hyperlinked, social, visual, self-directed, JIT, multiple roles
    6. 6. The talent landscape is shifting • Traditional career paths • Work to earn a living • Be thankful for a job • Paternalistic career development • Limited access to career opportunities and learning • Previous generations – willing to work hard and make sacrifices • Wait and hope for opportunity • Portfolio lives • Work must be meaningful • Attraction & engagement is king • Individually driven career development • Global access to career opportunities and learning • Gen Y have different work and lifestyle expectations • Empower individuals to drive own career and development Power shift: from company talented individual
    7. 7. South Africa Importance vs readiness – Global 3333 companies Sources: Bersin Delloitte Global H Trends 2015
    8. 8. The Drive Toward High Performance Engagement PerformanceLeadership Culture +70% #1 reason +28% 3 x higher Clear Vision & Strategy Transformational Leadership High Performance Teams Talent Management Right Culture Quality of talent, skills and engagement of talent = directly linked to ability to achieve growth and profitability targets Sources: CLC, Delloittes, Aon-Hewitt, Watson Wyatt, Towers Perrin, Gallup, DDI, Institute of Work Psychology, PWC Highly engaged workforce = >3.5x more profit 2 x more likely to be top performers 87% less staff turnover 43 % less sick days 17% actively disengaged, 63% moderately or passively engaged, 20% highly engaged (Gallup 13%)
    9. 9. 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
    10. 10. 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”
    11. 11. Retention and Engagement: myths • 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 Source: Human Resource Planning: the race for talent: retaining and engaging workers in the 21st century (Talent Keepers)
    12. 12. Retention factors Top causes of disengagement: • Feeling invisible - not measured or recognised • Expectations not met • Little or no feedback or coaching and no access to professional development • Over-worked and stressed out • Lack of trust or confidence in the senior leaders Top reasons employees leave early: • Strategy/vision not clear • Role expectations/contribution not clear • Coaching/support from co- workers/management is lacking • Socialization/integration into the existing culture is difficult • Opportunities for advancement not clear Source: Association for talent Development (ATD) 2015
    13. 13. 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
    14. 14. The truth about extrinsic motivation The Carrot and Stick approach – 7 deadly flaws • extinguish intrinsic motivation • diminish performance • crush creativity • crowd out good behaviour • encourage cheating, short cuts and unethical behaviour • become addictive • 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 Source: Drive – Dan Prink
    15. 15. 38 Attributes important for attraction and retention Rewards People Work Organisation Opportunity “The Rewards” • Compensation • Health benefits • Retirement benefits • Vacation • Customer reputation • Diversity • Empowerment • Environmental Responsibility • Ethics • “Great Employer” Recognition • Industry “The Opportunity” • Development Opportunities • Future career opportunities • Org. growth rate • Meritocracy • Organisational Stability “The People” • Camaraderie • Collegial work environment • Coworker quality • Manager Quality • People Management • Senior Leadership reputation “The Work” • Business Travel • Innovation • Job impact • Job-interests Alignment • Location • Recognition • Work-Life Balance • Informal Environment • Market position • Product Brand Awareness • Product Quality • Respect • Risk Taking • Organisation Size • Social Responsibility • Tech level “The Organisation” Source: Corporate Leadership Council - Attracting and Retaining Critical Talent Segments
    16. 16. What has to happen to make engagement work – 4 enablers? VISIONARY LEADERSHIP strong strategic narrative - widespread ownership and commitment - all levels. clearly expressed story - purpose of an organisation – why - how to contribute clear line of sight – job to narrative – where I fit in. strong, transparent and explicit organisational culture and way of working – values Culture of stretch, discipline, trust and support - both tough and tender INTEGRITY  Behaviour throughout the organisation is consistent with stated values, leading to trust and a sense of integrity. ENGAGING MANAGERS heart of culture facilitate and empower vs control or restrict offer Clarity, Appreciation, Positive Feedback, Coaching Appreciation, respect, development, reward “The line manager is the lens through which I see the company and the company sees me.” EMPLOYEE VOICE effective and empowered employee voice; views are sought out; listened to - opinions count - make a difference; speak out - challenge when appropriate; strong sense of listening, responsiveness, effective communication. 1 2 3 4 Adapted from Engaging for success: Enhancing performance through employee engagement. UK Government Report, David MacLeod & Nita Clarke, Office of Public Sector Information
    17. 17. Creating the need: Burning Platform, Vision, Goals
    18. 18. Catalyst Talent 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 –balancing demand and supply.
    19. 19. Catalyst Talent Framework Employer of choice Leadership & culture Roles & careers Reward & recognition Alumni catch & release Talent pool management Accelerated programs Deployment/mobility options On-the job learning & resources Coaching/mentoring Strategic sourcing Attraction EVP Talent pipelines Recruitment & on-boarding Levels of work Competency standards Segmentation Identification of potential Talent pools Performance philosophy Performance standards Role profiles Performance contracts Link to reward Strategy, philosophy & principles Business case Process & calendar Workforce planning Succession planning Identify Retain Review Manage Talent reviews Talent decisions Talent reporting Accountability Capability
    20. 20. Engagement and Retention Pillars ENGAGEMENT AND RETENTION STRATEGY “The Pillars” Great Company Great Culture Great Career Great Leaders Great Rewards & Recognition Company Brand and reputation Company Values Culture and behaviours Long term opportunities for development and advancement Inspiring leadership and best people Motivating remuneration, benefits & recognition Engagement, Enablement, Empowerment
    21. 21. Retention business case Manage Risks • Retention risk • Cost of loss of key talent = min 1 x annual salary (>1.5 x at exec level) – recruitment fees, on-boarding, training, alignment, impact on productivity and performance of staff • Succession risk • Cost of vacancy/not ready person filling a MCP (mission critical position) = delayed/wrong decisions, impact on sales/service/profit, impact on engagement, productivity and performance of staff • Transformation risk • Cost of not meeting & BBBEE targets (EE, Skills Development, Management Control) and not transforming Level 2 leadership to align with customer base Realise Benefits • Leadership & decision making • Key talent in high leverage positions = making right decisions • Enhanced leadership capability = >70% impact on culture, 40-60% impact on performance • Engagement & potential • engaged people = >3.5 x more profit, 87% more likely to stay • Unleash hidden potential and creativity • Resource security • pipeline of talent for the future Talent Management = • right people • right roles • right capabilities • right time • right cost Pipeline of future talent To enable the Co to deliver on its’ current and future strategy
    22. 22. The Retention Challenge • Global energy industry trends indicate a growing scarcity of talent • Retirements rising (376 next8 yrs) and fewer young people attracted • Rising demand for experienced skills and industry competition (Africa) but global skills shortage • Engen 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 Engen 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 Engen 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 23
    23. 23. Retention business case (cont..) Monetary Non-Monetary Staff Turnover Cost of lost employee international benchmark = an average of one year’s CTC salary at middle management level (higher at senior and executive level (up to 2 x), lower at junior levels) Cost of loss includes:: • 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 organisational culture Reduced employee engagement levels Impact on team dynamics EE and diversity objectives adversely impacted Undermines TM strategy and achievement of company and Human Capital vision Unstable organisation Impact on corporate reputation
    24. 24. Business Outcomes 25 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 • Optmiised turnover of key segments by x% • Improved engagement survey results • Leadership brand assessment results
    25. 25. Customising: identifying target audience
    26. 26. Diagnostics: Focus group and interview feedback • In total their 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 28 Interviews Focus Groups Org Survey
    27. 27. 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 mechnisms • 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
    28. 28. Current reality: Perceptions of “5 Greats” Great company Great leaders Great careers Great culture Project team – line & HR General managers
    29. 29. 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
    30. 30. 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
    31. 31. EXECUTIVE TALENT (GM+ global talent) EMERGING TALENT (Gen Y) NEXT GENERATION LEADERS (Level 2&3 successors) EXPERTS (MCP | technical specialists) HIGH POTENTIALS Segmentation refinement Criteria for segmentation: • 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?
    32. 32. 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 Differentiated needs per segment
    33. 33. Prioritising: choosing focus areas and activities
    34. 34. 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%
    35. 35. High level recommendations (initiatives) 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 1 2 3
    36. 36. Implementing: planning and gaining buy-in
    37. 37. Retention Strategy High Level Implementation Plan
    38. 38. Retention Strategy Measures (long term) 41 Element Retention - Tracked bi-annually Objectives Indicators Outcome based measures MCP # ready now/later successor <1/2 yr Min 1:1:2 Voluntary turnover % of MCP and HIPOs 2% less than overall turnover 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)
    39. 39. 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
    40. 40. Highlights and Lessons Learnt
    41. 41. • 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 • Launched and implemented EVP • Leadership Brand development and instituted 360 degree feedback – baseline measure • Revitalisation of the Values Programme linked to a broader company recognition programme – values champions • Talent management process reinvigorated and embedded- focus now prioritising mobility to aid capacity building and bench strength depth Progress and Results
    42. 42. Achievement and Lessons Learnt 51 Achievements • Buy in of HC team – integration and collaboration • Classification of talent segments – tested • HC team aligning around a common EVP • Quick wins implemented • Holistic understanding of Retention • Embedded Engen’s talent management philosophy • Aligning project priorities to business priorities (KPIs) • Assisted to crystalise what needed to be done by HC Learnings • Careful selection of Steercom – committed champions who will influence • Disruptions led to delays in the project – back-up plans • Regular engagement with HC head and CEO upfront – project manager and sponsor • Greater role clarification of core team - KPIs • Greater involvement of line to gain buy-in • Important to summarise findings and priorities and not get caught in the detail and data • Careful preparation for presentations to Exco • Don’t assume everyone has the same needs
    43. 43. Critical success factors • Joint design and implementation team (HC and line reps) • Committed Steering Committee (senior execs) • Training of HC and line managers • Strong facilitation skills of decision sessions • HC capacity to coach and influence • Events diarised in corporate calendar • Consequences – no participation, affect performance review • Quarterly Steerco reviews with accountability • Journey map - Project and change management • Transfer of learning – business as usual
    44. 44. Thank You Debbie Craig: Catalyst Consulting (Pty) Ltd Phone +27 82 8725429 Email debbie@catalystconsulting.co.za Web www.catalystconsulting.co.za facebook.com/Catalyst Consulting Pty Ltd twitter.com/@CatalystSA linkedin.com/Catalyst Consulting South Africa Contact Details

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