Shrm

1. Becoming an
Employer of Choice
Sandra Hofmann
SVP & COO
Turknett Leadership Group
Atlanta
Practical Insights into
Building a Culture of Retention

2. What keeps you around?
1. Continuous employment
2. Feeling that my real skills and capabilities are being put to use
3. Real esprit de corps in the group
4. Strong program of employee benefits
5. Real rewards that are inherent in the work
6. Pay, better than average
7. Able to explore new areas and to grow as much as I can
8. Fairness in promotion, based on performance with promotion
from within
9. Good working conditions, accommodations consistent with
level of position
10. Knowing what is going on in the organization
11. Strong pressure to accomplish task, a challenge
12. Mistakes are permitted and there is little chance of being
released
13. Feeling my job is important
14. Company policies that are known and fair
15. Knowing what is expected of me
16. Being told how well I am doing
17. Sufficient responsibility and authority
18. High standards of accomplishment that I must "reach "
19. Opportunity to use initiative, no direct or close supervision
20. Having a manager whom I respect

3. When you are an employer of choice, then
everybody knows your name!
 "Best lists" appearances.
 Positive name recognition
 Often cited in key publications
 CEO has wide name recognition.
 Your current CEO has a positive name
recognition when professionals in your
industry are asked in surveys or focus groups
75% of the time.
 There is a published book written about your
firm or CEO within the last five years.
 Giveaway/takeaway ratio.
 Talent competitors talk positively about you
25% of the time.
 Recruiters list you in top employers.
 In top three choices of top performers over
50% of the time.

4. When you are an employer of choice, then
everyone wants to be with you!
 Employee Referral rate >50%.
 Former employees do/would return.
 Over 10% of employees that voluntarily quit in
the past three years have returned. Over 50%
express an interest in returning when
surveyed.
 Employees send the "same" message.
 When your employees are asked what they tell
strangers about "why the firm is a great place
to work" over 50% of their answers include
your top selling point.
 Turnover rate of top performers.
 The turnover rate of your top 25% rated
employees is below 5%.
 CEO mentions people practices.
 Your current CEO mentions specific HR or
people practices by name in 25% of their
external and 50% of their internal speeches.

5. Are you writing your story?
HR Promotes “Thought Leadership”
 Outsource/web-based HR
 Presented at SHRM SE
Conference on “HR as a
Strategic Partner”
 Participated on expert panel &
webinar for Employease
 Participated on Employease
Customer Advisory Council
 Teleworking
 Selected for Georgia Clean Air
Campaign case study on
teleworking
 Participated in Gov. Perdue’s
Teleworking Press Conference
 Diversity/Change
Management
 Included in numerous
publications (CIO, CIO
Insights, HR Executive, etc.)
 Requested for speaking
engagements on topic
Enhance Community Relations
 Atlanta Business Chronicle’s “A+
Employers” – placed 6th in finals
 TAG Women in Technology’s “Best
Employer in Georgia” – winner of
Work/Life Balance
 Society for Human Resource
Management’s “Professional
Excellence” – winner of Mid-size
company & Grand Prize
 Fortune’s “Best Small & Mid-size
Companies to Work For” – finalist

6. Make it real or you’ll be left
hanging!

7. Why does retention matter?
 Loss of key players affects corporate
productivity
 Replacement cost high
 Cost of vacancy can impact shareholder value
 Losing talent to competitors erodes
competitive advantage
 High attrition affects the morale
 Inexperienced employees decrease customer
satisfaction
Retention is a strategic imperative
for the enterprise!
Source: Retaining talent: Retention & Succession in the Corporate workforce, Aberdeen Group,
2005

8. Why is retention is a hot topic now?
 70% of HR managers believe
retention is primary concern
 55% of HR managers expect retention
to be significant challenge within next
5 years
 40% of HR managers have seen
increase in turnover
 Demographics are changing –
generational diversity drivers
Source: Atlanta Business Chronicle February 2006
Headhunter.net:
“where employees with good jobs go
when they are having a bad day”

9. How battle ready are you?
1. Do I understand the difference
between voluntary & involuntary
turnover in my company?
2. What level of voluntary turnover is
acceptable?
3. How much does attrition cost my
company?
4. What themes are at the root cause
for turnover?
5. What is being done to solve the root
cause?

10. Battle for talent heating up
 80% of employees
hunting or open
 Global struggle to
hire talent: 40%
worldwide
 44% US
 78% Mexico
 66% Canada
 58% Japan
 13% India
Source: Manpower survey February 2006
1. Sales Rep
2. Engineers
3. Nurses
4. Technicians
 production /operations
 engineering
 maintenance
Accountants
5. Accountants
6. Administrative Assistants
7. Drivers
8. Call Center Operators
9. Machinists
10. Management /Executives
Top 10 jobs most difficult
to fill

11. Why employee retention fails
 Too much emphasis on pay, benefits, perks
 88% leave for reasons other than pay
 but – work IS about the money! The best do
typically offer better than competition
 Blindly following other companies’ best practices
 Match culture, benefits, practices to needs & desires
of employees
 Worthless if paper based & haphazard
 Failure to train managers & hold them
accountable
 Monitor voluntary turnover, new-hire retention
rates, employee-engagement survey scores &
reward the best
 No one can afford the luxury of another bad
manager
Retention is a process – not a program

12. Who has the edge?
(when it comes to recruiting & developing talent)
 Procter &
Gamble
 General Electric
 Google
 UnitedHealth
Group
 UPS
 Exelon
 Starbucks
 FedEx
 Anheuser-Busch
 Nordstrom
 FMC
Technologies
 Walgreen
 PepsiCo
 Nestle
 BP
Source: Fortune February 2006:
America’s Most Admired Companies

13. How do the best companies retain?
 Provide open & frequent
communication
 Top management more accessible
 Employees engaged at all levels
 Expect excellence from everyone
 Challenge employees often
 Move employees to new jobs
 Offer broad based & on-going
development
 Not focused just on high potentials
 Promote from within
Source: Fortune February 2006:
America’s Most Admired Companies

14. A framework for retention
Training
Recognition
&
Feedback
Orientation
Career
Development
Advance-
ment
Work/Life Balance
Team
Cohesion Open
Communication
Lack of
Stress
Emphasis
on Quality
Benefits
Autonomy | Challenge
Resources | Pay Satisfaction
Job Satisfaction
Role Ambiguity
InterGroup
Cooperation
Participation
Employee
Relations
Customer
Focus
Leadership
Capability
Lack of
Bureaucracy
Innovation
Equity/Fair
Treatment
Strength of
Culture
Meaningful
Work
Department
Manager
Organization
Structure
Immediate
Manager

15. Training
Recognition
&
Feedback
Orientation
Career
Development
Advance-
ment
Work/Life Balance
Team
Cohesion Open
Communication
Lack of
Stress
Emphasis
on Quality
Benefits
Autonomy | Challenge
Resources | Pay Satisfaction
Job Satisfaction
Role Ambiguity
Inter-group
Cooperation
Participation
Employee
Relations
Customer
Focus
Leadership
Capability
Lack of
Bureaucracy
Innovation
Equity/Fair
Treatment
Strength of
Culture
Meaningful
Work
Department
Manager
Organization
Structure
Immediate
Manager

16. Participation
Employee
Relations
Customer
Focus
Leadership
Capability
Lack of
Bureaucracy
Innovation
Equity/Fair
Treatment
Strength of
Culture
Meaningful
Work
Department
Manager
Organization
Structure
Immediate
Manager

17. Retention & Leadership
Job Level
 Participation in Decision Making
 Desire decision latitude to help influence
direction of their team
 Biggest Influence: employee’s immediate
manager
 Especially important for younger employees
 Identified by Gallup to retain top talent: do my
opinions seem to count?
 Meaningful Work
 Core dimension of job satisfaction
 Want to feel that their work is making
contribution toward the good of the company
 Foster a sense of purpose: working for a cause as
well as a company
 Engaging company vision that shows clear
connection to employee’s effort

18. Retention & Leadership:
Team Level
 Employee Relations: Defined as the process of
maintaining a positive and cooperative workforce via fair
& considerate treatment
 Identified by Gallup to retain top
talent: Does my supervisor seem to care
about me as a person?
 Direct relationship with boss more
important than pay/perks
 Important for both young & older
employees
 Positive supervisor/employee relations
inspire commitment
 One of the top 5 reasons employees
stay in a firm

19. Retention & Leadership:
Organization Level
 Quality of Management
 Direction of organization key driver of
commitment
 Trust in senior leadership key driver of
commitment & 3 year return to shareholders
 Bureaucracy
 One of the hallmarks of “average” companies
 Minimize the management burden by keeping
hierarchies in check
 Innovation
 Companies viewed as innovative create energy
& pride throughout organization

20. Retention & Leadership:
Organization Level
 Equity/Fair Treatment
 Doesn’t mean overpay, just pay fairly
according to internal & external market
 Must embrace diversity & treat all employees
fairly
 Strength of Culture
 Reputation or branding as an “exclusive”
organization & market leader creates pride in
organization
 Helps people feel they are a part of something
important
 Customer Focus
 One of the five most powerful drivers of
workforce commitment
 One of the key priorities of most admired
companies

21. Work/Life Balance
Team
Cohesion Open
Communication
Lack of
Stress
Emphasis
on Quality
Benefits
Autonomy | Challenge
Resources | Pay Satisfaction
Job Satisfaction
Role Ambiguity
Inter-group
Cooperation

22. Retention & Work Design:
Job Level
 Autonomy
 Talented employees want independence &
ability to make decisions without going
through bureaucratic channels
 Creates sense of control over environment &
increased responsibility
 Challenging work
 Talented employees want a job that is
challenging & has a large scope of
responsibility
 One of top 5 reasons employees stay
 Create great jobs by letting people stretch
their skills
 Adequate Resources
 Identified by Gallup to retain top talent: Do I
have the materials & equipment I need to do my
work right?

23. Retention & Work Design:
Job Level
 Role Clarity
 Identified by Gallup to retain top talent: Do I know what
is expected of me at work?
 Unclear expectations & ambiguous demands from boss
lead to turnover
 Compensation & Benefits
 Offer a variety of creative benefits
 Is not a source of satisfaction, but is a driver of
dissatisfaction
 Choice of benefits increasingly important
 Stock, profit sharing & pension plans top 3 benefits
correlated with commitment
 One of the key priorities of most admired companies
 Communication of benefits one of the five most powerful
drivers of workforce commitment
 Many employees don’t have a good understanding of their
entire benefit package
 Job Satisfaction
 Though not always related to productivity, has always
been linked to turnover & intention to quit

24. Retention & Work Design:
Team Level
 Team Cohesion
 Coworker relations top reason to stay
 Best large companies mimic small companies
with smaller autonomous units
 Predominant characteristic of “100 best
companies to work for in America”
 Role Harmony
 Decreasing conflicting demands increases job
satisfaction
 Open Communication
 Information sharing between manager and
team important
 Clear communication systems used by
effective leaders
 Openness in team facilitates overall cohesion
& satisfaction

25. Retention & Work Design:
Organization Level
 Stress
 Free up time for employees to relax & reduce stress
with variety of programs (Work-free weekends,
thinking/meeting-free days, limitations on business
trips, flexible vacation time)
 Conflict & overload common work-related factors to
stress
 Emphasis on Quality
 Quality products/services create pride in
organization, fostering commitment
 Work/Life Balance
 Flexible hours one of top reasons cited
 EAPs, medical/dental care, family time-off
programs, allowance for personal time
 Job sharing & telecommuting
 Recognition of personal/family life-powerful factor
 Especially important for women who do not value
promotion opportunities

26. Training
Recognition
&
Feedback
Orientation
Career
Development
Advance-
ment

27. Retention & Development:
Job Level
 Orientation
 Realistic job preview helps set
expectations
 Orientation critical in the first 3 days
 Training
 Interpersonal & technical training
popular incentive programs
 “Train like crazy” one of
recommendations to retain staff

28. Retention & Development:
Team Level
 Recognition
 Must provide special recognition for top
performers
 Recognition for good work one of most
common reasons for staying
 Recognition doesn’t have to be financial!
 Feedback
 Regular dialogue on performance issues
 Identified by Gallup as important for positive
climate: In the last six months, has someone at
work talked to me about my progress?
 Ongoing feedback by immediate supervisor
critical.
 Use of 360’s very effective tool for giving
insight and focusing development

29. Retention & Development:
Organization Level
 Career Development
 Put people in jobs that challenge them
 One of top 3 reasons for staying
 Educational incentives more effective than
dollar compensation
 One of five most powerful drivers of workforce
commitment
 Identified by Gallup as important for positive
climate: This last year, have I had opportunities at
work to learn and grow? Do I have the opportunity
to do what I do best everyday?
 Opportunities for Advancement
 Must be communicated throughout entire
organization
 One of the factors that inspires commitment

30. Retention through professional excellence
 Children’s Healthcare of
Atlanta
 Great Expectations
 HomeBanc Mortgage
Corporation
 Associate Emergency Fund
 Randstad North America
 On-boarding process
 The Home Depot
 Veterans Recruiting
 Doctors Hospital of
Columbus
 Combined community &
workforce programs
 CARE
 Global Gender Equity &
Diversity initiative
 City of Atlanta
 Growing service during right
sizing

31. Other Important Determinants of
Retention
 Before you hire - Selection
 Hiring the right person both in skills &
fit will save money in long run &
increase retention
 After they leave - Exit Interviews
 Wait 2 weeks to let emotions subside
& find out why people are leaving
 Don’t just file the information. Do
something with it.
 Create an “Alumni” Network
 Stay in touch
 Remember your reputation as an
“employer of choice”

32. Training
Recognition
&
Feedback
Orientation
Career
Development
Advance-
ment
Work/Life Balance
Team
Cohesion Open
Communication
Lack of
Stress
Emphasis
on Quality
Benefits
Autonomy | Challenge
Resources | Pay Satisfaction
Job Satisfaction
Role Ambiguity
Inter-group
Cooperation
Participation
Employee
Relations
Customer
Focus
Leadership
Capability
Lack of
Bureaucracy
Innovation
Equity/Fair
Treatment
Strength of
Culture
Meaningful
Work
Department
Manager
Organization
Structure
Immediate
Manager

33. Questions?

34. Thank you
shofmann@turknett.com
2310 Parklake Drive, Suite 500,
Atlanta, GA 30345
www.turknett.com