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Engaging your
Sales People
PRESENTATION FOR
Sales Institute of Ireland
PREPARED BY
Garry Goldsmith
Head of Talent Management
Hudson Talent Management
Perspectives on Talent Management

“ Talent consists of those individuals who can make
a difference to organisational performance, either
through their immediate contribution or in the longer
term by demonstrating the highest levels of potential”


“The systematic attraction, identification, development,
engagement / retention, and deployment of those
individuals with high potential who are of particular
value to the organisation.”

Source CIPD Research Insights 2006
We Use a Lot of Technology
High Performance Aspiration


                    Characterized by:
 A winning attitude,
  where every employee
  is inspired to move us
  forward


 The right people, in the
  right roles, performing at
  the right levels, now and in
  the future
“Economic Battle Fatigue”©


o 1 out of 3 key performers is considering leaving their employer in
  2010. (Source : The Grapevine, Feb 2010)

o 1 out of 4 high potentials is considering leaving their employer. (Source :
  HBR, May 2010)



o This year staff attrition could cost the UK economy in excess of £1
  billion. (Source : The Grapevine, Feb 2010)

o The Hudson Talent Engagement Survey Results indicate an average
  of ‘weak’ contracts between 30 & 50% in Europe in H1 2010. (Source :
  Hudson)



o Multiple external surveys in Europe indicate that there could be an
  employee turnover as high as between 40-60% in 2010 as
  economies slowly recover.




                                                                                Copyright of Marc Timmerman, 2010
Your Talent     You         Your Competition




              Our Problem
A Tsunami of people leaving ?
Ever bought a second hand car?
You do everything to prevent this: NCT / Test drive / AA
inspection…..
gather evidence that it will perform the job its supposed to..
The Case for Using Tools for Talent
                                                                          Reliability


                                     0.7

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                                                                            Assessment Method


     Professionally designed and executed assessments deliver a more
      accurate prediction of actual performance.
     Reduce risk of failure
The biggest injustice is the equal treatment
of people who are not the same
The biggest injustice is the equal treatment
of people who are not the same
Should I Stay or Should I Go ?
(The Clash, 1982)




                           Employer

                    Make        vs          Buy



                           Psychological
                             Contract



                    Stay        vs         Change


                           Employee
DIMENSIONS MEASURED


EMPLOYERS              EMPLOYEES
 EXPECT                 EXPECT

• Performance          • Training

• Collaboration        • Job Content

• Flexibility          • Security

• Loyalty              • Social
                         Atmosphere
• Employability
                       • Financial
• Ethical                Rewards
  Behaviour
                       • Work-Life
PSYCHOLOGICAL CONTRACT TYPES
                       HIGH




                               FIRM                               STRONG
                              • Employee expects a lot but don’t give everything
                                                                 • Employee promises a lot & expects a lot in return
EMPLOYER COMMITTMENT




                              • Will meet expectations but not  Contract type works once expectations are met
                                                                 go the extra mile
                                        FIRM                          STRONG
                              • Often relates to those in a role  Oftenextended time
                                                                  for an ‘Engaged’ and/or ‘Ambitious’ employees
                              • Often high-performers without  Positiveseffort include high commitment & loyalty
                                                                 significant often
                              • Can be under-utilised and/or stagnating in role likely if high expectations not met
                                                                  Dissatisfaction
                              • Often appropriate for vocational Ideal for sales, management, & innovative roles
                                                                  or structured roles

                               WEAK                             LOOSE
                              • Employees neither promise nor Substantial effort with low long-term expectations
                                                               • expect a lot
                              • Only the formal legal contract creates a connection
                                                               • Challenge & job content are key drivers
                                       WEAK                             LOOSE
                              • These people will do what they• have to but no more or new-starters
                                                                 Often deep specialists
                              • Performance is often below employer expectations
                                                               • Maybe the “new generation” of contract
                              • Turnover tends to be higher than normalto retain once the challenge is gone
                                                               • Difficult
                       LOW




                              • Can be appropriate for repetitive & lower level roles
                                                               • Appropriate for challenging & project-based roles
                              LOW                                                       HIGH
                                           EMPLOYEE COMMITTMENT
The Business Case for
  Employee Engagement




EASIER SAID   1. ENGAGED &      2. HIGH
THAN DONE      MOTIVATED     PERFORMANCE
                EMPLOYEES     & RETENTION




               4. POSITIVE    3. POSITIVE
              SHAREHOLER      CUSTOMER
                RETURNS       EXPERIENCE
Organisations are People-Based


                                                                                   A feeling of attachment to
                                            e   ct                                 the company and its values
                                       ff                     Affective
                                e   rE                      Commitment             (belonging, solidarity, and

                           e ad                                                    affiliation)

                    o dL
               Go
 RETENTION




                                                                                   A feeling of obligation to
                                        Normative                                  serve the company and to
                                       Commitment                                  work hard
                                                                              ct
                                                                        E ffe      A feeling of necessity to
                                                                   is
             Continuance                                     C ris                 remain working for the
             Commitment                                                            company as changing jobs
                                                                                   would cost too much
                                                                                   (economic, effort, social)

                                                                                               Meyer & Allen
                                                     PERFORMANCE

                                            ENGAGED EMPLOYEED ARE HIGHER
                                             PERFORMING & LONGER TENURED
What are the New Leadership requirements ?
Leadership old style ?
And what about …
The Leadership Gap
o   On average 28 to 32% of your managers are fully competent in :

          o   leading people

          o   leading a complex and changing business

          o   steering towards the future

o   Some of the leadership gaps that need to be filled:

          o Listen to the voice of your Talent, give them practical growth opportunities,
            take a risk with them.

          o Create an atmosphere at the top that offers protection and allows people to
            make mistakes.

          o Create possibilities for Baby Boomers to understand Generation Y

          o To Walk the Talk !                                      Copyright of Marc Timmerman, 2010
Leaders are made
The Meaning of Leadership


o The Leader has a determining impact on Company Culture

o Leaders serve and sacrifice themselves

o The Best Leaders develop others

o “We all need loving critics”

o Making mistakes is human

o “You can’t plan to be courageous, but you can choose it”


             Management is DOING THINGS RIGHT
            Leadership is DOING THE RIGHT THINGS

                                                             Copyright of Marc Timmerman, 2010
The Monkeys and the Banana Tree
Curtains !
Thank you for your attention




      “The certainty of misery is better
      than the misery of uncertainty”

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Sales insitute of ireland november 2010

  • 1. Engaging your Sales People PRESENTATION FOR Sales Institute of Ireland PREPARED BY Garry Goldsmith Head of Talent Management
  • 3. Perspectives on Talent Management “ Talent consists of those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential” “The systematic attraction, identification, development, engagement / retention, and deployment of those individuals with high potential who are of particular value to the organisation.” Source CIPD Research Insights 2006
  • 4. We Use a Lot of Technology
  • 5. High Performance Aspiration Characterized by:  A winning attitude, where every employee is inspired to move us forward  The right people, in the right roles, performing at the right levels, now and in the future
  • 6. “Economic Battle Fatigue”© o 1 out of 3 key performers is considering leaving their employer in 2010. (Source : The Grapevine, Feb 2010) o 1 out of 4 high potentials is considering leaving their employer. (Source : HBR, May 2010) o This year staff attrition could cost the UK economy in excess of £1 billion. (Source : The Grapevine, Feb 2010) o The Hudson Talent Engagement Survey Results indicate an average of ‘weak’ contracts between 30 & 50% in Europe in H1 2010. (Source : Hudson) o Multiple external surveys in Europe indicate that there could be an employee turnover as high as between 40-60% in 2010 as economies slowly recover. Copyright of Marc Timmerman, 2010
  • 7. Your Talent You Your Competition Our Problem
  • 8. A Tsunami of people leaving ?
  • 9. Ever bought a second hand car?
  • 10. You do everything to prevent this: NCT / Test drive / AA inspection….. gather evidence that it will perform the job its supposed to..
  • 11. The Case for Using Tools for Talent Reliability 0.7 0.6 0.5 Reliability 0.4 0.3 0.2 0.1 0 w s es ta s s s w s ie st re st st da nc ie rv te te te t rv en te re o ity te e y Bi in tC fe il it pl l in al Re al m Ab en on ur na sa m rs io itio k ss pe v or ha ad se W n Be er As Tr od M Assessment Method  Professionally designed and executed assessments deliver a more accurate prediction of actual performance.  Reduce risk of failure
  • 12. The biggest injustice is the equal treatment of people who are not the same
  • 13. The biggest injustice is the equal treatment of people who are not the same
  • 14. Should I Stay or Should I Go ? (The Clash, 1982) Employer Make vs Buy Psychological Contract Stay vs Change Employee
  • 15. DIMENSIONS MEASURED EMPLOYERS EMPLOYEES EXPECT EXPECT • Performance • Training • Collaboration • Job Content • Flexibility • Security • Loyalty • Social Atmosphere • Employability • Financial • Ethical Rewards Behaviour • Work-Life
  • 16. PSYCHOLOGICAL CONTRACT TYPES HIGH FIRM STRONG • Employee expects a lot but don’t give everything • Employee promises a lot & expects a lot in return EMPLOYER COMMITTMENT • Will meet expectations but not  Contract type works once expectations are met go the extra mile FIRM STRONG • Often relates to those in a role  Oftenextended time for an ‘Engaged’ and/or ‘Ambitious’ employees • Often high-performers without  Positiveseffort include high commitment & loyalty significant often • Can be under-utilised and/or stagnating in role likely if high expectations not met  Dissatisfaction • Often appropriate for vocational Ideal for sales, management, & innovative roles  or structured roles WEAK LOOSE • Employees neither promise nor Substantial effort with low long-term expectations • expect a lot • Only the formal legal contract creates a connection • Challenge & job content are key drivers WEAK LOOSE • These people will do what they• have to but no more or new-starters Often deep specialists • Performance is often below employer expectations • Maybe the “new generation” of contract • Turnover tends to be higher than normalto retain once the challenge is gone • Difficult LOW • Can be appropriate for repetitive & lower level roles • Appropriate for challenging & project-based roles LOW HIGH EMPLOYEE COMMITTMENT
  • 17. The Business Case for Employee Engagement EASIER SAID 1. ENGAGED & 2. HIGH THAN DONE MOTIVATED PERFORMANCE EMPLOYEES & RETENTION 4. POSITIVE 3. POSITIVE SHAREHOLER CUSTOMER RETURNS EXPERIENCE
  • 18. Organisations are People-Based A feeling of attachment to e ct the company and its values ff Affective e rE Commitment (belonging, solidarity, and e ad affiliation) o dL Go RETENTION A feeling of obligation to Normative serve the company and to Commitment work hard ct E ffe A feeling of necessity to is Continuance C ris remain working for the Commitment company as changing jobs would cost too much (economic, effort, social) Meyer & Allen PERFORMANCE ENGAGED EMPLOYEED ARE HIGHER PERFORMING & LONGER TENURED
  • 19. What are the New Leadership requirements ?
  • 22. The Leadership Gap o On average 28 to 32% of your managers are fully competent in : o leading people o leading a complex and changing business o steering towards the future o Some of the leadership gaps that need to be filled: o Listen to the voice of your Talent, give them practical growth opportunities, take a risk with them. o Create an atmosphere at the top that offers protection and allows people to make mistakes. o Create possibilities for Baby Boomers to understand Generation Y o To Walk the Talk ! Copyright of Marc Timmerman, 2010
  • 24. The Meaning of Leadership o The Leader has a determining impact on Company Culture o Leaders serve and sacrifice themselves o The Best Leaders develop others o “We all need loving critics” o Making mistakes is human o “You can’t plan to be courageous, but you can choose it” Management is DOING THINGS RIGHT Leadership is DOING THE RIGHT THINGS Copyright of Marc Timmerman, 2010
  • 25. The Monkeys and the Banana Tree
  • 26. Curtains ! Thank you for your attention “The certainty of misery is better than the misery of uncertainty”

Editor's Notes

  1. “ A high-performance culture characterized by a winning attitude, where every person in every job is  inspired to move us forward.” This represents the “psychology” of the organization It manifests itself through pride, ownership, passion, desire for excellence, connection to the Wyeth cause, Esprit de corps Where people know the work that is to be done, do it flawlessly, expect it of each other, across organization silos A place where people outside of Wyeth want to become a part of and those here absolutely want to remain Moving Wyeth’s Performance Curve… Superior performance / raising the bar on our ability to perform - at all levels - is critical Every job is absolutely necessary - with the right person, in the right job, performing at the right level, now and in the future Performance expectations are clear, dynamic and continue to evolve as our business evolves Performance shortfalls are business problems that are effectively managed The ultimate goal…is for Wyeth to succeed And if we can address the higher-level inspirational challenge, we will succeed over time in shifting our performance to new levels Every person in every job, raising everyone’s game The challenge…our competition is seeking to do the same That means that in order to be the best, we need to pursue this challenge and do it faster and better High Performance Culture –leads to Organization Performance Growth and Profitability; Productivity; Innovation; Customer Satisfaction; Employee Retention
  2. Segment talent “One size fits all” no longer applies to HR. HR must learn to mould talent management offerings to meet the needs of different employees. The requirements of someone with high potential are not necessarily the same as those of an irreplaceable professional. HR needs to learn from Marketing : “Segmenting Talent pools”. Draw up a special competency profile for identifying your high potentials at an early stage in their career. Pre-selection of High Potentials : clear criteria and processes are crucial. Retain Key Players and put them in Key Roles. Set up specific challenges and engagement-systems for each segment.
  3. Segment talent “One size fits all” no longer applies to HR. HR must learn to mould talent management offerings to meet the needs of different employees. The requirements of someone with high potential are not necessarily the same as those of an irreplaceable professional. HR needs to learn from Marketing : “Segmenting Talent pools”. Draw up a special competency profile for identifying your high potentials at an early stage in their career. Pre-selection of High Potentials : clear criteria and processes are crucial. Retain Key Players and put them in Key Roles. Set up specific challenges and engagement-systems for each segment.
  4. People (brainpower, inspiration, innovation) source of competitive advantage Intangible assets > 50% market capitalisation of US public companies Global economy increasingly service and knowledge based Economic cycle brings different challenges & priorities Likely less short-term need for employee retention efforts Increasing focus on developing internal talent & rebuilding strong foundations
  5. Our perspective: As companies reduce staff, key talent becomes available and sought after. Where they have an opportunity to secure exceptional talent due to market circumstances, we have seen hiring freezes thaw. The depressed market sees organisations preying on competitors’ highly skilled and experienced talent, who are difficult to recruit during better economic times. Companies need to address how to retain and engage this talent once on board. Star performers are, however, often staying put, because they are uncomfortable moving to an organisation that is unknown to them. A-players also prefer a participative leadership style (cfr. “High Potentials : The Competitive Edge in your Organisation”, 2007, Marc Timmerman & Charlotte Sabbe). Most Important Comment : Insecurity of your total remaining workforce will lead to disengagement, anxiety and even anger. Having a plan and communicating this to the workforce will have a securing effect on many of them. Not communicating a plan will have the same effect as having no plan, a possible disconnection of a large part of your workforce, just when you need their engagement most. Organisations have the opportunity to cull less effective employees from their work force while retaining an efficient organisation. A certain level of turnover can be beneficial for companies – the challenge is, of course, finding the correct level. This strategy can easily become counter-productive if handled badly. Other possible comment : Generation Y (young potentials) are finding out for the first time in their life, that the system can be stronger than the individual. They are seeking help and advice from their elders, in order to reduce the feelings of insecurity.