1. The global financial crisis has led many organizations to downsize staff and contractors while rethinking pay structures and bonuses. 2. Retaining key staff is a top concern as surveys show managers believe it is more difficult to retain good employees and do not understand who may leave. 3. In response, organizations are managing recruitment internally, focusing on local hiring, referrals, and cutting costs like travel, entertainment, and training. Lessons include right-sizing sensitively, retaining key staff, encouraging participation, and sharing the pain of cuts. Succession planning, diversity, work-life balance, and training remain important issues.

1. Attraction and Retention in the GFC
and what this means to
practice-based professions
Irena Morris
Director, Paradigma Solutions
Oct 2009

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3. Terminology
• Attraction
• Retention
2

4. Managing each stage of the
Employee Life Cycle -> Good Retention
- Employee Referrals - Training & Dev Performance - Fair Remuneration - Work with staff to
- Employer of Choice Programs Management & Reward based achieve goals
- Graduate Programs - Mentoring/ on performance - Succession Planning
- Orientation Programs Coaching - Engagement Programs
- Buddy System -Certifications, - Ongoing Feedback from
Accreditations Managers
- Work Life Balance
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5. …but its got to make sense for your
business!
S
Business Strategy Area T
Business plans and business strategies R
are determined based on your vision, Business A
values, and goals. Strategy T
E
G
‘People’ / Talent Strategy Area Y
People policies and strategies that drive Talent
business, and attract, motivate and retain key Management A
Workforce
talent are determined. Talent Management is theRemuneration Strategy L
key strategy in this area. Strategy
I
G
N
‘People’ Program Area Compensation Career M
Tools that facilitate and support the & Development E
policies and strategies set in the Talent Benefits N
Performance Recruitment Management
Management strategy area are Training T
Management &
determined.
Retention
© Paradigma Solutions 2007
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6. So what does
attraction and
retention look like
post October 2008
and as we continue
into the Global
Financial Crisis?
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7. Snap Survey
1. How many of you, in your organisations,
have downsized or are planning to
downsize (either staff or contractors)?
2. How many of you, in your organisations,
have had to rethink pay
structures, bonuses or
other ways of
paying staff?
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8. Some statistics and facts to consider…
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9. Organisations are downsizing, despite
cautious optimism
• 20% of CEOs and senior
executives in a survey
of 528 Australian
business leaders
have said they WILL
downsize
(AIM 2009 Survey)
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10. How to keep key staff is a primary
concern
• 60% of 300 companies surveyed in This was listed as the
an Asia-wide survey were concerned #1 priority of
about retention of key staff Australian CEOs and
(Towers Perrin, 2009) executives in the AIM
Survey
• 70% of Australian managers agree
that it is more difficult to keep good
people today than 1 year ago
(MGSM Inst of Sustainable leadership, 2009)
• While 65% of managers said that their
organisations did not understand
who was at risk of leaving
(MGSM Inst of Sustainable leadership, 2009)
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11. Other cost cutting measures are being put
in place…
• 75% of organisations in the Asian survey said
that they would be cutting back on travel and
entertainment (Towers Perrin,2009)
• 46% confirm they
will be cutting training
in their organisation
(Towers Perrin, 2009)
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12. Recruitment practices are changing
• Organisations managing own recruitment more
and more
• Looking to fill any vacancies with local staff
– P457s decreased dramatically
• Referral-based recruitment
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13. What lessons can
be learnt for
organisations as
they navigate the
GFC?
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14. This is the time to….
• Right-size…get rid of ‘bloat’ but do it sensitively!!
• Get your key staff ‘locked in’ as much as you can
• Create a culture of hope and positivity
• Encourage participation about how your
company can survive
• Share the pain
– Eg cut costs fairly
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15. And don’t forget to continue working on the issues
that remain for practice-based professions…
• Succession planning
– how to fill senior positions as partners and senior executives start
to retire
• EEO
– how to attract women back into the workforce, particularly true in
Medicine, Law, Accounting
• Work/life balance
– how to ensure that a healthy worklife balance is available to staff
• And for many practices
– How to attract young practitioners
• And DON’T forget training!!!
– Keep upskilling those key staff and people in key
roles
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16. Questions?
irena@paradigma.com.au
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