3. what business ? most compelling investment? one effective way to lead in the mid market
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3
What business ?
Most Compelling Investment?
One Effective Wayto Lead in the Mid Market
What business ?
Recruit and Retain EmployeesRecruit and Retain Employees
“An organization’s ability to execute its strategy effectively is directly related to its ability to:
AttractAttract, RetainRetain, and Develop Talent”
Source: MetLife 7th Annual Benefits Trends Survey
Recruit and Retain EmployeesRecruit and Retain EmployeesSource: MetLife 7th Annual Benefits Trends Survey
Recruit and Retain EmployeesRecruit and Retain EmployeesSource: MetLife 7th Annual Benefits Trends Survey
Sorry
Benefits Retention
When employees believe that their Benefits Communications did NOT educate effectivelySource: MetLife’s 6th Annual Benefits Trends Study
Percentage of Employees Who Strongly Agree With The Following Statements
Benefits Retention + Benefits Communications
That effectively educate
When employees believe that their Benefits Communications DID EDUCATE EFFECTIVELYSource: MetLife’s 6th Annual Benefits Trends Study
Percentage of Employees Who Strongly Agree With The Following Statements
Source: MetLife’s 6th Annual Benefits Trends Study
What business ?
o What HR wants
o What the CFO wants
o What the CEO wants
They are lucky to have jobs.
Employee Engagement Dropped– Employee engagement determines profits.
19% Higher Profits
Organizations with highly engaged employees earned shareholder returns 19% higher than average
40% Lower Profits
Organizations with low engagement earned shareholder returns 44% lower than average
Source: Hewitt Associates employee engagement research 6/30/2010
Recruit and Retain EmployeesRecruit and Retain Employees
Employee Engagement Dropped
– the largest decline since research began 15 years ago
15% of employers normally experience a decline
Vs.
46% of Employers saw a significant drop in employee engagement levels
Source: Hewitt Associates employee engagement research 6/30/2010
Recruit and Retain EmployeesRecruit and Retain Employees
Employee Engagement Dropped
34% of employees plan to look for a new job when the economy gets better
48% said it was because they lost trust in their employer
46% said it was because of lack of communication from their company’s leadership
Source: Deloitte’s fourth annual Ethics & Workplace Survey
Recruit and Retain EmployeesRecruit and Retain Employees
1,600,000 1,650,000 1,700,000 1,750,000 1,800,000 1,850,000 1,900,000 1,950,000 2,000,000 2,050,000
Feb Mar Apr
Voluntary Quits
Layoffs & discharges
1,600,000 1,650,000 1,700,000 1,750,000 1,800,000 1,850,000 1,900,000 1,950,000 2,000,000 2,050,000
Feb Mar Apr
Voluntary Quits
Layoffs & discharges
Voluntary Resignations Top Layoffs
Voluntary quits are already increasing.
Recruit and Retain EmployeesRecruit and Retain Employees
1,600,000 1,650,000 1,700,000 1,750,000 1,800,000 1,850,000 1,900,000 1,950,000 2,000,000 2,050,000
Feb Mar Apr
Voluntary Quits
Layoffs & discharges
1,600,000 1,650,000 1,700,000 1,750,000 1,800,000 1,850,000 1,900,000 1,950,000 2,000,000 2,050,000
Feb Mar Apr
Voluntary Quits
Layoffs & discharges
Voluntary Resignations Top Layoffs
Voluntary quits are already increasing.Source: U.S. Bureau of Labor Statistics
0 1 2 3
Manager
Executive
Replacement Costs
Times Salary
0 1 2 3
Manager
Executive
Replacement Costs
Times Salary
Recruit and Retain EmployeesRecruit and Retain Employees
Steps must be taken to retain good talent.
Turnover is Reeeealy Expensive!Turnover is Reeeealy Expensive!
Benefits can make a difference – But only if you communicate!But only if you communicate!
Cost of Turnover
$ 8 Hourly Employee $5,505.80 1
Multiple Turns of a front line employee over 25 years $100,000 1
$50,000 employee $250,000 2
Salesman who leaves with company’s client list ?
1 Turnover Cost Studies compiled at website: http://www.sashacorp.com/turnframe.html
2 Barry Deutsch, Impact Hiring Solutions
Most Compelling Investment?
Among surveyed employees, those who are highly satisfied with their benefits,
85% plan to be working for their current employer 18 months from now.
Among those who are NOT highly satisfied with their benefits,
50% plan to be working for their current employer 18 months from now.
85% Plan to Stay vs. 50% Plan to Stay
Recruit and Retain EmployeesRecruit and Retain EmployeesSource: MetLife’s 6th Annual Benefits Trends Study
Recruit and Retain EmployeesRecruit and Retain Employees
Benefits make a difference – But only if you communicate!But only if you communicate!
Link between effective communications and other positive attributes
Source: MetLife’s 8th Annual Benefits Trends Study
Recruit and Retain EmployeesRecruit and Retain Employees
Benefits make a difference – But only if you communicate!But only if you communicate!
Only 36% of employersthink their company’s benefits communication is effective
- MetLife’s 8th Annual Benefits Trends Survey
Recruit and Retain EmployeesRecruit and Retain Employees
Benefits make a difference – But only if you communicate!But only if you communicate!
Only 33% of employees
think their company’s benefits communication is effective
- MetLife’s 8th Annual Benefits Trends Survey
Recruit and Retain EmployeesRecruit and Retain Employees
Benefits can make a difference – But only if you communicate!But only if you communicate!
The Most Important Investment
Highest ROI
Effective Communications Higher Satisfaction
Higher Satisfaction Lower Turnover
Lower Turnover More Profitable Growth
How to Lead
Shadow EffectShadow Effect
SouthwestSouthwest AirlinesAirlines– On Time Departures
How to Sell!How to Sell!
PositionPosition
““Fringe Benefits” Fringe Benefits” asas
““Your Foundation of Financial Your Foundation of Financial Security”Security”
Emphasize – company’s commitment Emphasize – company’s commitment to employees’ financial safetyto employees’ financial safety
Why the company provides Why the company provides benefits, it’s vision benefits, it’s vision and values and values
SimplifySimplify1.1.Answer “WHY?” Answer “WHY?”
– Give the information – Give the information neededneeded to make a good decision to make a good decision
– Use photos that evoke – Use photos that evoke emotions emotions
– Use story – Use story
SimplifySimplify2.2.Get rid of jargon & Get rid of jargon & explain what terms meanexplain what terms mean
What does the benefit What does the benefit mean to memean to me
SimplifySimplify3.3.Focus on how to access Focus on how to access benefits and use them for benefits and use them for greatest valuegreatest value
PersonalizePersonalize““Dear Laurie,Dear Laurie,
Using reasonable Using reasonable assumptions, your assumptions, your retirement plan balance retirement plan balance could be $1,245,000 just could be $1,245,000 just from company from company contributions.”contributions.”
3 D
Source: Merrill Lynch Affluent Insights
Quarterly 7/28/10
Begin at the BeginningBegin at the Beginning
How to Sell!How to Sell!
“What was your turnover rate last year”
“Under normal business conditions, how many employees do you replace in a year?”
“Who left” - “Why”
“May I have a copy of your open enrollment materials?”
Tools to Effectively Educate:
Employee Satisfaction Survey – Before
Open Enrollment Benefit Books
Hidden Paycheck Benefit Statement
Web – EBCs, BeneShare, Video Library
UBA Plan Evaluator
SIMPLE Communications
Campaigns – TouchPoints
Retirement Readiness
Employee Satisfaction Survey - After
Without Communications that Effectively Educate:
Higher turnover costs
Loss of customers
Loss of critical skills
Opportunity costs
Recruiting failures
Productivity loss
Solutions by:
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