2. Learning Objectives
• Business case: Setting the stage for effective
recruitment and retention.
• What attracts employees?
– Attractiveness dimensions.
– Employment branding at PacifiCare.
– Employment branding activity.
• What makes employees stay?
– Retention factors at Google (video).
– Generational differences.
– Targeted retention at Deloitte.
– Innovative retention at Best Buy.
• Wrap-up
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3. Business Problem
Scenario
• The organization:
– Needs a qualified, talented person for a position.
– Advertises and recruits for the position.
– Hires someone for the position.
• The employee:
– Is trained and socialized.
– Experiences a learning curve.
– Becomes productive.
– Leaves the organization.
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4. Turnover
Not all turnover is bad…
• Dysfunctional turnover:
When talented, experienced, knowledgeable,
productive, well-networked, high-potential
employees leave the organization.
• Functional turnover:
When disruptive or poor-performing employees
leave the organization.
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5. Psychological Contract
HR and managers must partner to prevent dysfunctional
turnover.
• This requires understanding the “psychological contract”: The
unwritten understanding regarding what both the
employee and employer want from the employment
relationship.
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8. Employer Attractiveness Dimensions
• Interest Value: The extent to which an individual is attracted to an
employer because of the excitement and creativity of the work
environment.
• Social Value: Attraction based on a collegial work environment with good
team atmosphere.
• Economic Value: Attraction based on salary and benefits.
• Development Value: Based on recognition of work and career-enhancing
opportunities.
• Application Value: The employee’s ability to apply what they have learned
to teach others and interact with customers in a way that is positive and
humanitarian.
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Source: Berthon, P., Ewing, M., and Hah, L. L. (2005). Captivating company: dimensions of
attractiveness in employer branding. International Journal of Advertising, 24(2), 151–172.
12. Five Steps to Building an Employer Brand
1. Understand your organization.
2. Create a compelling brand promise that mirrors your
customer brand promise. Articulate your value proposition
for employees.
3. Develop standards to measure the fulfillment of the brand
promise.
4. Align all people practices to support and reinforce the
brand promise.
5. Execute and measure.
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Source: http://www.hewittasia.com/hewitt/ap/australia/index.htm
23. Generations in the Workplace
We have four generations represented in today’s
workforce:
– Matures (born between 1901-1943).
– Baby Boomers (born between 1943-1960).
– Gen X (born between 1960-1980).
– Gen Y (born between 1980-2000).
View “The Millennials are Coming” (60 Minutes video).
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24. Multigenerational Workforce
• Each generation:
– Shares a similar set of experiences and perceptions due
to the events of their lifetime.
– Brings a different perspective to the workplace.
– Has different interactional styles and preferences.
– May misinterpret words and actions of employees from
other generations.
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25. Multigenerational Workforce
Employees across generations need to work together more today:
– Flatter organizations.
– Growth of performance and merit-based pay and promotion
systems.
– Globalization and knowledge-based economy requires
collaboration.
Employers who maximize cross-generational communication
improve knowledge transfer, yielding:
– A better-developed workforce.
– A more competitive position. 25
27. Generational Viewpoints on Job Changing
• Matures: Job changing carries a stigma.
• Baby Boomers: Job changing puts you
behind.
• Gen X-ers: Job changing is necessary.
• Millenials: Job changing is part of their daily
routine.
Adapted from: F. Leign Branham, The Seven Reasons Employees Leave, presented at 2006 SHRM
national Conference, Washington, DC
28. Generational Similarities
How are we similar?
• People all want to trust their supervisors.
• No one really likes change.
• We all like feedback.
• Everyone likes security and the ability to balance
work and life.
Deal, J. (2006). Retiring the generation gap: How employees young and old can find common ground.
30. Targeted Employee Retention
Actions taken to retain and promote women
Note: All programs and opportunities developed under WIN were available to both men and
women.
• Allow choice with regard to:
– Pace of career progression.
– Workload.
– Location and schedule of work.
• Up to five-year leave of absence while staying connected:
– Maintain professional certifications (e.g., CPA).
– Assigned a mentor and career coach.
– Attend Deloitte functions.
– Work as independent contractor.
Source: Women Leaders Symposium, 22nd Annual Conference of the Society of Industrial and Organizational Psychologists;
April, 2007, New York, NY
31. Targeted Employee Retention
• Deloitte’s results:
– 21% of employees at the partner, principal, and
director level are women; Deloitte leads Big 4.
– 46% of all employees are women.
– Consistently recognized on Working Mother’s “100
Best Companies for Working Mothers” honor roll.
– Has created or sponsored more than 400
professional development, networking and
mentoring activities.
Source: Women Leaders Symposium, 22nd Annual Conference of the Society of Industrial and Organization
Psychologists; April, 2007, New York, N
32. Retention Innovations: Best Buy: Smashing the
Clock
• Best Buy’s situation:
– Burnout among headquarters employees.
– Management emphasis on face time/
– Expectation of 24/7 availability due to technological advances.
• Solution:
– Results Only Work Environment (ROWE).
– Focus on what gets done, not physical presence.
– No mandatory office time.
– Work when and where you want – just get the job done.
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Source: Conlin, M. Smashing the Clock, BusinessWeek, November, 2006,
33. Best Buy: Smashing the Clock
Results:
–Average voluntary turnover has fallen drastically.
–Productivity is up an average 35%.
–Employee engagement has increased.
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Source: Conlin, M. Smashing the Clock, BusinessWeek, November, 2006,
35. Conclusion
• Building an employer brand leads to higher-quality and more
efficient recruiting.
• Generational differences are a source of diversity – use them
to your advantage, minimize conflicts through
training/education.
• Create an organizational culture that serves to execute your
strategy and retain and attract the best workforce.
– Determine drivers of retention of your workforce.
– Consider ways to create more “glue” for your high-
performing population of employees.
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