winning the talent war: recruitment, retention and rewards
TRANSCRIPT
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Winning the Talent War
Recruitment, Retention and Rewards
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Recruiting
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• Social networking – LinkedIn, Twitter, Facebook – Aggregators / consolidators
Recruiting in a modern world
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• Nonline networking – Build and maintain talent pipeline – Recruit top performers from competitors – Monitor employment brand and reputation – Utilize partners, board and staff referrals
Recruiting in a modern world
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• Associations
Recruiting in a modern world
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• Search-firm dynamics – Transparency (sharing of databases) – Milestones – Good candidates, fast – Recruitment process outsourcing (RPO) – Candidate-identification firms / name-generation firms – Offshoring
Recruiting in a modern world
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Retention
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• Common perception, supported by monthly reports from the U.S. Bureau of Labor Statistics
Unemployment in an improving economy
5.7%
January 2015 U.S. Department of Labor
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• In reality, an interesting correlation exists between unemployment percentage and education
Unemployment in an improving economy
October 2014 U.S. Department of Labor
Bachelor’s degree or above 3.1% Some college or an associate’s degree 4.8% High school graduate 5.7% Less than high school diploma 7.9%
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• More than half of employees intend to leave their current jobs as the economy improves:
Projected turnover as the economy improves
2014 2009 Yes, I intend to leave 86% 60%
Maybe, so I’m networking 8% 21%
Not likely, but I’ve updated my resume 1% 6%
No, I intend to stay in my current position 5% 13%
Right Management Group: http://www.right.com/news-and-events/press-releases/2014-press-releases/item26654.aspx
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• A majority of employers are convinced that other organizations are actively seeking their top performers (senior leaders and high potentials) – Agree: 43% – Strongly agree: 13% – Disagree: 11% – Strongly disagree: 4% – No opinion: 29%
• How will you combat this?
Projected turnover as the economy improves
World At Work: www.worldatwork.org/waw/adimComment?id=35633
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• Rule of Thumb: 33% to 150% percent of the annual salary – Salary costs – Recruiting expenses – Downtime and training time
• If true: – Cost to replace $100K position ranges from $33K to $150K
Hidden costs of losing tenured employees
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Employee engagement
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“A heightened emotional or intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work.” - The Conference Board
Employee engagement
Engaged employees = 70% less turnover
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• Highly engaged workplaces score high on all six.
• Highly engaged workplaces have “signature” drivers.
Employee engagement
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Employee-engagement tactics
• Base Pay
• Bonus
• Health Benefits
Tangibles
Intangibles
Short term Long term • Retirement
• Deferred Comp
• Job Security
• Work/Life Benefits
• Hiring Practices
• New-Hire Coaching
• Work Climate/Vision
• Supervisor Behavior
• Trust in Leaders
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• Hot topics – Title enhancement – Flexible scheduling – Telecommuting
Employee-engagement tactics
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Rewards
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• Average salary increases – 3.0% in 2013 – 3.0% in 2014 – 3.1% in 2015 (projected)
• Incentive payout trends – Nonexempt: 5% – Exempt: 10-12% – Executive: 35-40%
• Top performers vs. average workers – 144% more in 2012 – 152% more in 2013
Compensation trends
World At Work: http://www.worldatwork.org/waw/adimLink?id=75547
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• Money talks – Communicate total benefits effectively – Pay winners like winners
Rewards help retention (and recruiting)
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Compensation strategies
Best Practice
Matrix
Performance 1 2 3 4Exceptional 6.5% 5.5% 5.0% 4.0%
Exceeds Expectation 6.0% 5.0% 4.0% 3.0%Effective 5.0% 4.0% 3.0% 2.0%
Development Needed 2.0% 1.0% 0.0% 0.0%Critical Need for Improvement 0.0% 0.0% 0.0% 0.0%
Quartile in Range
Typical
Matrix
Performance 1 2 3 4Exceptional 3.5% 3.5% 3.0% 3.0%
Exceeds Expectation 3.0% 3.0% 3.0% 3.0%Effective 2.5% 2.5% 2.5% 2.0%
Development Needed 2.5% 2.5% 2.0% 2.0%Critical Need for Improvement 2.5% 2.0% 2.0% 2.0%
Quartile in Range
CBIZ Compensation Consulting
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• Recruiting – Attract individuals who will help move your organization forward
• Angie Salmon, CBIZ & EFL Associates
• Retention – Create an environment of employee engagement
• CBIZ Employee Benefits
• Rewards – Pay your winners like winners
• CBIZ Compensation Consulting
Win the talent war with CBIZ
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Questions
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• EFL Associates / CBIZ Human Capital Services – Top 2% retainer-based search firm – Searches conducted in 48 states and six foreign countries – Search practice complemented by compensation consulting
services
• Angie Salmon – Senior Vice President, EFL Associates – Leads Nonprofit Practice – Co-leads Board of Directors Practice – Completed over 130 search engagements
Win the talent war with CBIZ
[email protected] 913.234.1576 @SalmonSearch