Retaining and Engaging Talent a Competitive Difference No Matter What the Economic Climate

Hire Minds Summit 2010JoAnn McMillan, Ph.D.

Who We Are

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•Innovative software and I/O psychology consulting firm

•Focus on Talent Selection & People Development

•Off-the-shelf and fully customized assessment solutions

•Clients across industries, from start-ups to Fortune 500

•SnagAJob assessment partner

Some Sobering Statistics

Bureau of Labor Statistics• National unemployment rate is

9.5%

Job Openings and Labor Turnover Report – June 2010

• The job openings rate was 2.2 percent.

• Employers made 3.8 million hires in June—about a third less than in July 2006.

• The quit rate—a sign of workers' "willingness or ability to change jobs"—remained very low at 1.4 percent.

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Some Glimmers of Hope on the Horizon

In H1 2010 Hires did Exceed Separations

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Impact of Slow Churn on HR

With few openings you need to make every new hire count • Poor hires hurt your business results• Good hires outperform even in tough times• Turnover is costly no matter what the economic climate

Just because they are staying doesn’t mean they haven’t mentally “quit”• What is the difference in productivity of your most engaged employee compared

with your least engaged employee?• How many of your current employees have “quit and stayed?”

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“Your hiring process should not only focus on avoiding bad hires but seeking those true top performers”

The Value of A Good Hire

Putting the right person in the right job makes business sense

• Higher performance• From start

• Continues over time

• Shorter ramp-up time• Easier to manage• Increased customer satisfaction• More likely to stay

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The What, How & Why of Talent

What are the desired outcomes for this role?• Customer• Process • Productivity/Financial• People

How do your best people achieve these results?

• Define the behaviors and competencies that lead to success in your environment

Why are some people more successful than others?

• Possess the right combination of innate and learned capabilities for the role

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Retail ROI: Better Business Results

Managers who are the best fit for the role create positive business results:

Team LeadershipGood JudgmentPersuasivenessPositive Sales AttitudeEnergyOrganization /Attention to DetailFrustration Tolerance

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-5

0

5

10

15

20

Avoid

Okay

Good

Better

Store ManagersStore Performance: Percent Store Goal

Achieved

Retail ROI: Improved SalesBusiness Impact Continues Over Time

Month after month, retail sales associates who had the right talent (shown in green) outperformed those who lacked the “right stuff” (shown in red)

Positive Sales AttitudePersuasivenessEnergyInitiativeGood JudgmentFrustration Tolerance

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C-store ROI: Better Customer ExperienceC-store associates with service personalities create more positive customer experiences

EnergyFrustration ToleranceAccommodation to OthersAcceptance of DiversityPositive Service AttitudeSelf Control

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3.30

3.40

3.50

3.60

3.70

3.80

3.90

4.00

4.10

4.20

4.30

Customer Service Overall Performance

3.79

3.62

4.22

4.02

Avoid

OK

Best

**All cut levels were statistically significant at p.<01

Customer Service EmployeesPerformance Ratings

Hospitality ROI – Increase Quality of Hire

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

80%

27%

20%

73%

Avoid

Best

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Assessment identified 80% of Poor performers as “Avoid” and 73% of Star performers as “Best”

Poor Hires Star Hires

C-Store Retention – Decreased Turnover Those that fit the role stay longer

• In a five year study (pre-recession) of c-store associates, new hires (who fit the job better) stayed longer

• Selection process evaluated both natural fit with the role andwillingness to do common job tasks

• Make change & handle money

• Serve food

• Stock merchandise

• Mop & sweep inside

• Pick up trash outside

• Clean the restroom

Best Practices In Selection

Each voice in the selection process should evaluate the candidate’s “fit” with the job.

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Hiring DecisionHiring Decision

Dynamic InterviewDynamic Interview

Application & Pre-ScreenApplication & Pre-Screen

Recruitment MessageRecruitment Message

AssessmentAssessment

But The Work Doesn’t Stop When The Hiring Decision Is Made

That’s when the real work begins

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On-boarding and Engagement

On-boarding and Engagement

Hiring Decision

Dynamic Interview

Application & Pre-Screen

Recruitment Message

Assessment

On-boarding Three Strikes and They are Out (of There)

Job Orientation – Be prepared. Clearly state expectations about the job, and provide the “tools” needed to succeed.

Follow Through on Commitments – Ensure that you “walk the talk” and do what you say you are going to do .

Socialization – Help new employees get to know other people and the company.

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Questions to Ask New Employees*

• How well do we compare to what we said we would be like?

• Tell me what you like. What is going well?

• What employees have been helpful to you in your first 30 days?

• I noticed you came to us from ____. Are there things you did there that might be helpful to us?

• (Is there anyone you know who might be a valuable addition to our team?”

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*From “The Honeymoon Quiz: Five Questions to Ask New Hires in the First 90 days.” 2010 The Studer Group

Poll – Employee Engagement

What percentage of your employees, new and tenured, do you feel are giving 100% of their talent, passion and commitment to the job?

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Attitudes About Engagement

Do you view the employee as an expense or the employee as an asset?

From Franklin Covey: “Leadership in the 21st Century”

Covey’s Levels of Engagement

Today’s Worker has the “Power to Choose”

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From Franklin Covey: “Leadership in the 21st Century”

Zenger-Folkman’s Sweet Spot

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Organizational Needs:

The activities you need the person to do

that support the organization’s success

Competence: What the person does well

Passion:

What the person likes to do

CompetenceCompetence

OrganizationalNeeds

OrganizationalNeeds

PassionPassion

From “The Extraordinary Leader: Turning Good Managers Into Great Leaders”by John H. Zenger and Joseph Folkman, published by the McGraw-Hill Companies

The Employee Sweet Spot

The motivational “sweet spot” is achieved when you can help an individual to align their passion and their competence with the requirements of the job.

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From “The Extraordinary Leader: Turning Good Managers Into Great Leaders”by John H. Zenger and Joseph Folkman, published by the McGraw-Hill Companies

Convergence

Finding Their Sweet Spot: Organizational Needs

Understanding of how personal job role

helps fulfill company mission, vision

and business objectives

Orientation or tour of the overall operation

(not just their piece)

Clear expectations regarding the job - what

“good” looks like

If they have a back room role have them

job shadow a customer interaction

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Finding Their Sweet Spot: Competence

Increasing job autonomy

New projects and responsibilities; on-the-job learning opportunities

Providing the proper tools to effectively do their jobs

Involvement in decision making and access to sharing ideas with management(e.g. Joint Leadership Teams)

Supervisor and team support for job success (acknowledge achievements)

Shadowing and mentoring opportunities

Educational assistance and other training support

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Finding Their Sweet Spot: Passion

Appreciation and support for outside

talents

Or, bring their talent into the

workplace

Flexible work approaches to support

outside needs

Volunteer opportunities through the

organization

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Additional Thoughts for Engaging the Hourly Workforce

A work-life culture that is more supportive of personal and family life

GovBenefits.gov – extensive resources for citizens to locate public-sector benefits

Reduce barriers between corporate and the field

Make the workplace “fun”

Career navigation and job search skills assistance

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The Engaged Employee

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From “The Extraordinary Leader: Turning Good Managers Into Great Leaders”by John H. Zenger and Joseph Folkman, published by the McGraw-Hill Companies

Achieving Success Through Others

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Great Companies ….

•Attract and Select Top Talent

•On-board effectively

•Engage employees through flexibility, empowerment, respect and appreciation