9/2/2015. Welcome Back. Day 5. Review of Day 4. Action Plan for Day 4

Transcription

1 Welcome Back Day 5 Review of Day 4 Action Plan for Day 4 Create a plan for attracting the different generations to your workplace. What are you already doing How could you improve what you do now? What are some new ideas you have? Network with the other participants ask them for their ideas, share, brainstorm, and collaborate! Create a draft Communication Protocol document starting with the CEO and cascading at least 3 levels Share the document with your leadership team and discuss 1

2 Effective Reward and Compensation Programs Exercise Team up with someone who you have never teamed up with before Describe an example when you were recognized professionally that had great impact with you, even today. Total Rewards Compensation (including Bonuses, and Incentive Plans) Benefits Work- Life Recognition Training and Development 2

3 Reward vs. Recognition Difference between Reward and Recognition Reward Significant Year end or quarterly bonus Promotion Includes some sort of monetary increase Usually recognizes long term Page 5 Difference between Reward and Recognition Page 5 Recognition Reserved to highlight an event, episode, and/or going above and beyond Often includes something of value (money, time, etc.) Thank you is recognition but recognizes a job well done (not necessarily above and beyond) 3

4 Both Might Include Qualitative and Quantitative Measurements Quantitative Measurements (THE WHAT) Employee Engagement Turnover Performance review % completion Survey results % of recognition budget spent Cost Management Working capital management Non-labor cost management Health and Safety OSHA recordables Lost time Near miss reports Page 5 Quality Net promoter score % of repeat business Client satisfaction scores Profitability Utilization Budget management Days sales outstanding Overruns and write-offs Revenue Growth Opportunity backlog Proposal backlog Lead generation Gross sales Net sales Qualitative Measurements (THE HOW) Teamwork Health & Safety Awareness Self Starter Solution Driven Support of Company's Strategic Initiatives Attitude Efficiency Cost Considerations Work Life Balance Quality Client Service Innovative 4

5 Compensation (including Bonuses) Case Study Page 6 Team up in groups of 3 4 and answer these questions about the case study in your manual 1. Come up with a plan to divide both your salary pool (4%) and bonus pool ($50K). How do you base your decisions? 2. What additional decisions would you make as department manager Case Study - Debrief 1. Come up with a plan to divide both your salary pool (4%) and bonus pool ($50K). How do you base your decisions? 2. What additional decisions would you make as department manager Key Katie six months as the new department manager Frank 15 years, exceptional, highly paid, huge ego Donna junior employee, outstanding attitude, a keeper Aaron new to the team, slightly higher paid than peers Connor great upside, work-life balance concerns, no overtime Ashley quality issues but produces lots with a great attitude Jacob sacred cow with friends in high places Heather a mistake, should be on a corrective action plan but received fully satisfactory on past reviews 5

6 Compensation Base Pay Variable Pay (i.e., commissions, tips) Short term incentives (bonus plans) Long term incentives (stock, etc.) Compensation Golden Rule Fairness rules! it s about fair pay, not high pay 6

7 Fairness rules (it s about fair pay, not high pay) 7

8 Children and monkeys recognize when things are unfair Your employees recognize unfairness as well How do you think they respond? What cucumbers are they throwing? Today s Business Environment Pay increases have been small Promotions have been few (slow growth and low turnover is perfect storm for status quo) Hiring is just now picking up (we ve been doing more with less) Bonuses have returned but smaller Layoffs have slowed Survivor anxiety/burnout Page 7 8

9 Some Compensation Principles Compensation communicates Compensation is emotional Compensation should drive the behavior you re looking to drive Compensation should reward achievement Page 7 Compensation 10 Commandments Complete the evaluation assessment Page 8 Compensation 10 Commandments 1. Communication must be frequent and transparent 2. You must PAY for performance 3. You need a balance of qualitative and quantitative metrics 4. The peanut butter approach must be avoided 5. Avoid greasing the squeaky wheel 6. Do not over pay base compensation 7. Hot markets and sectors should be rewarded with variable pay whenever possible 8. Do not confuse Rewards and Recognition 9. Always emphasize achievement 10. Must always be fair 9

10 Base Pay Base Pay Year end merit pool (change it to salary adjustment program) Have been averaging 2-4% for many years Very difficult to pay for performance with merit pools being so small the past 20 years Promotional budgets can be.5-2% Cash Bonuses 10

11 From Your Pre-work What percentage of your population is eligible for bonuses? What percentage of the bonus is based on qualitative results? What are examples of your qualitative measurements? What percentage of the bonus is based on quantitative results? What are examples of your quantitative measurements? Bonus Programs Page 9 Profit Sharing Gain Sharing bonus programs are most common in manufacturing and are designed to reward productivity and improved product quality Spot Bonus Awards reward employees on the spot for achievements that deserve special recognition. Spot bonus awards are typically $50 and up Sign-On Bonuses are commonly used for new employees Mission, Task or Milestone Bonus are given as a reward for special achievements and are usually offered sparingly. Bonus Programs (continued) Page 9 Referral Bonuses are paid to employees who refer friends Retention Bonuses are given to employees in circumstances, such as a merger or acquisition, to provide continuity through a certain time period when there is potential uncertainty about an employee s continued employment at the company. Holiday Bonuses Sales Commissions 11

12 Bonus / Pay Matrix High X% Performer 2X% Star Performance Low Low 0% Transition Potential X% Investment High Exercise: Bonus / Pay Matrix Page 10 Think about 10 people in your organization. If you were going to assign bonuses to those 10 people, in what quadrant would you put them? Incentive Plans 12

13 The more GENEROUS and FORMULATIC you make your incentive plans, the greater the probability your employees will CHEAT!! Dr. Dean Spitzer, author of "Transforming Performance Measurement" Incentive Plans Page 11 Eligibility can vary usually mid to senior level Can be designed as formulaic or discretionary Best plans incentivize high performance Best plans differentiate high and low performance Best senior leadership plans link metrics with company wide results (to reduce silo behavior) Best mid level plans tie payout window (timing) as close to behavior as possible Best plans also have both quantitative and qualitative metrics 13

14 Quantitative Measurements (THE WHAT) Employee Engagement Turnover Performance review % completion Survey results % of recognition budget spent Cost Management Working capital management Non-labor cost management Health and Safety OSHA recordables Lost time Near miss reports Quality Net promoter score % of repeat business Client satisfaction scores Profitability Utilization Budget management Days sales outstanding Overruns and write-offs Revenue Growth Opportunity backlog Proposal backlog Lead generation Gross sales Net sales Qualitative Measurements (THE HOW) Teamwork Health & Safety Awareness Self Starter Solution Driven Support of Company's Strategic Initiatives Attitude Efficiency Cost Considerations Work Life Balance Quality Client Service Innovative The Law of Unintended Consequences & Long Term Incentives Programs 14

15 Work / Life Blending Work Life Blending Page 12 Flexible Work Hours Telecommuting Emergence of unlimited vacation time Job sharing Sabbaticals Part time benefit packages Community Involvement How does your organization do with Work / Life Blending? Rate your organization in each area based on if you offer work / life options and determine if you need to make changes. Page 13 Recognition Programs 15

16 Difference between Reward and Recognition Page 9-2 Recognition Reserved to highlight an event, episode, and/or going above and beyond Often includes something of value (money, time, etc.) Thank you is recognition but recognizes a job well done (not necessarily above and beyond) Your Pre-work What are some examples of ongoing recognition programs you have in your organization? What problem are you attempting to solve? What specifically are you recognizing? What other types of recognition programs have you seen? Recognition challenges (SHRM G2012 Global Survey) 16

17 Recognition via Gamification Definition: Gamification is the use of game elements in any context that is non-game related, usually by providing rewards and by fostering user interaction with the learning material. The form of rewards can vary, but the more common ones include: Points Badges Levels Leaderboards Challenges By 2014, 70% of global businesses will be using some form of gamification Gartner Research Nissan created a way to engage customers to provide info about their Nissan Leaf (100% electric car) Compare performance of your vehicle Communicate with your car through your cell phone Earn points for performance, maintenance, and entering information 17

18 Recyclebank rewards users for doing everyday things that are good for the environment. Earn points by pledging to follow green living techniques Trade points for discounts from vendors Compare your rank against others (leaderboard) Gamification as Recognition What examples of gamification can you think of or have you used? Evaluating your Recognition Programs Has value to who it is given to on all levels All employees have the opportunity to achieve Everyone receives in a fair and ongoing process Related directly to a known goal or specific outcome 18

19 Evaluate your Rewards and Recognition Using the reward and recognition form, evaluate two of your programs to be sure it is: Available to everyone Tied to a specific outcome Delivered consistently Valued by the employees Page 14 Exercise What is the best example of recognition? In your assigned groups, come up with a list of recognition program examples that you have seen. Then, vote and present back one recognition example that is the best of your list Recognition Ideas and Best Practices Schedule reminders Have valuable items on hand to hand out Hats, shirts Movie tickets Gift cards Establish a formal award given to an employee as a culmination of the year (but don t overdo) Let other recognize it s not just you that can recognize Write a note! 19

20 Engagement Action Plan Page 35 Action Plan for Day 5 Evaluate your organization on it s work life blending processes Evaluate several recognition processes being sure they are Available to everyone Tied to an outcome Delivered consistently Valued by employees Lunch 20

21 Recruiting and Hiring Engaged Employees Selecting the Wrong Person Can Be Terrifying! I don t worry about hiring a great employee and having him leave in three months, I worry about hiring a bad employee and having him stay for three years! -- Anonymous What s your hiring horror story? In your groups: Share a hiring horror story Select the best story to share with the rest of the workshop. When called upon, share the story your group selected Recruiting Partnership HR First line leaders High Quality Candidates 21

22 Suggested Roles and Responsibilities Role/Responsibility HR Mgr Conduct analysis (consider your succession plan and HIPOs) Create a job requisition Share opportunities with other offices, areas, and company Post all positions internally Encourage employee referrals Initiate social media recruiting Ongoing proactive structured recruiting Manage on-line postings (e.g., Monster, Craig s List, etc) Manage recruiting firms (e.g., headhunters) Page 19 Recruiting Modes Crisis Recruiting When you need people yesterday When should you be recruiting new employees? ALWAYS! Proactive Recruiting Recruiting even when you don t have a position to fill Page 20 Hire Hard, Live Easy, Hire Easy, Live Hard Bob Kelleher Right Candidate Types Page 20 Active Needs a job Aggressively looking Passive No desire for new job Don t call Wants a better job Looking sometimes Semi- Active Semi- Passive Wants a better job Waiting for your call 22

23 Skills/Tenure or Accomplishments Skills/Tenure Accomplishments Have 10 years experience Increased client x account by 15% in one year Have good planning skills Good problem solver Submitted strategic plan in 90 days and hired 3 people Worked with dept. x to eliminate processing bottleneck See additional examples in your workbook Know Your Needs Using the B.E.S.T. Concept Page 21 Behavior How one acts or reacts to specific circumstances Education The knowledge one carries with him/her Skills The ability to put knowledge into action Traits Characteristics that define someone s personal nature Demonstrated through performance, actions, and conduct Examples: Expressing one self clearly Meeting project deadlines Calm under pressure Demonstrated through diplomas and certificates Examples: Master of Science in Hydrology HazMat Certificate Demonstrated through activities and assignments Examples: Technical writing Accurately interprets lab results Proficient in Excel and Access Demonstrated through presentation and actions Examples: Accountability Integrity Enthusiasm Optimism Collaborative Exercise Behaviors and Traits List the behaviors/traits that you would like to see in an employee as assigned below: Case A Project Manager Case B Department Manager Case C Sales Manager Part 2 What behaviors/traits do you think are unique to your industry or company? How can this exercise help you with selecting people for open positions? 23

24 Developing a B.E.S.T. Profile Page 22 Define the job in general terms Create 5 6 accomplishments you want to see in the first 6 12 months List behaviors/traits that are essential for success Exercise - B.E.S.T Profile 1. Break into groups of two or three 2. Select a position for which you are hiring (or could be hiring in the future) 3. Use the B.E.S.T. Profile to prepare to staff for this position. List 6 8 performance objectives Make a list of the behaviors and traits, education, and skills that you will be looking for 4. Be prepared to discuss your B.E.S.T. Profile Exercise - Sources for Candidates To ensure a thorough search, use the Recruiting Sources Planning Guide to stimulate basic and creative recruiting venues. Work with a partner to select a real or hypothetical position to recruit. Using the Recruiting Sources Planning Guide form document as many specific sources for candidates as possible and appropriate Page 26 24

25 Recruiting Your Brand Knowing Your Brand Many companies simply don t know who they are and therefore can t hire the types of people who will be engaged in their culture In other words, You don t have an Engagement problem, you have a Selection problem. Do you know why people work for your company? What is your Employer Value Proposition? Your Employer Value Proposition What you do Why you do it Why do people work for you? 25

26 Brand Who You Are What do these companies have in common? Brand Who You Are Tri-branding EVP (Employment Value Proposition) Third Party Branding (Customers, Vendors, Suppliers) Product or Service Branding Know Who You Are The Holy Grail of Branding Brand Awareness Brand Knowledge Brand Believers Brand Deliverers 26

27 Exercise How can others recruit for you? Employees Clients Page 27 Knowing Your Brand Allows You To Design The Right Recruitment Message Employee Referral Programs 27

28 Employee Referral Program (ERP) 69% of employers say they have a formal employee referral program 26% of external hires are generated from employee referrals 82% of employers rated employee referrals above all other sources for generating the best ROI 88% of employers rated employee referrals above all other sources for generating quality new hires 2010 CareerXRoads Sources of Hire Study Employee Referral Program (ERP) Page 28 Listen to employees Track successes Communicate progress Ongoing Evaluation Employee Involvement Encourage social media Their motivations Improvements Overall program Who s eligible? Generations Keep it simple Demonstrate how Positions available ID who makes a good referral Education Appropriate Incentives Cash Donations Drawings Hardware (i.e., ipad) Time off Oracle White Paper, Shortest Path to Better Hires 2013 JobVite, Optimizing Your ERP, 2012 Employee Referral Programs, Berberich and Trost, 2012 Employee Referral Program (ERP) Page 28 Listen to employees Track successes Communicate progress Ongoing Evaluation Employee Involvement Encourage social media Their motivations Improvements Overall program Who s eligible? Exercise How does your ERP meet these best practices? What do you do well? What could you do better? Generations Keep it simple Demonstrate how Positions available Education Appropriate Incentives Cash Donations Drawings Hardware (i.e., ipad) Time off 28

29 Social Media in Recruiting Social Media and Recruitment Staff.com Recruiting.jobvite.com Business.time.com Careerxroads.com Directemployers.org Based on 2013 stats Social Media and Recruitment Staff.com Recruiting.jobvite.com Business.time.com Careerxroads.com Directemployers.org Based on 2013 stats 29

30 Social Media and Recruitment Staff.com Recruiting.jobvite.com Business.time.com Careerxroads.com Directemployers.org Based on 2013 stats Social Media and Recruitment How to Recruit on Facebook Page 29 For Free Post on your status you re looking for a job Encourage your employees to post (link with your referral program) Utilize the Facebook Directory to search for users, pages, groups and applications Create a Facebook Page Post on Marketplace Pay Create a Facebook Ad Targets specific audience; you pay based on hits 30

31 How to Recruit on LinkedIn Page 29 For Free: Build connections to people you already know former co-workers, current clients, local entrepreneurs and even friends and family. Join Groups For example, if you are always looking for Geotechnical Engineer, you can find an affiliated group on LinkedIn Use your network activity box (also known as a status box) to broadcast that you are hiring. "Looking for a Geotechnical Engineer. If you know someone, maybe even you. Contact me." You can find out a lot about a person from their profile before contacting them for an interview. Encourage your employees to post jobs (link with your referral program) How to Recruit on LinkedIn Page 29 Pay: Post jobs you have available for $395 to post a job for 30 days. Buy credits and pay less per job posting discounts for 5- job and 10-job packages Sign up for LinkedIn Talent Finder Social Media and Recruitment Page 29 Top Reasons to Use Twitter in Recruiting Allows you to connect with current and potential employees Lets you send important company or industry messages (with links) You can view what others are saying about your company (both good and bad) Communicate job openings and new hires Twitter will only grow the sooner you take advantage of it s power, the better you will be able to recruit and brand 31

32 How to Recruit on Twitter Page 29 For Free Tweet Your Job Opening Use Hash Tags #MechanicalEngineer Ask your employees to tweet openings (reinforce your employee referral program as an incentive) How to Recruit on Twitter Page 29 Social Media and Recruitment Four billion video views per day Let s look at how others have used YouTube to recruit 32

33 Case Study A Case Study A Case Study B # 44 # 18 33

34 Case Study B Social Media and Recruitment How could you use YouTube for recruiting? Is your EVP video posted yet? Why not? And the Resumes Roll in How do you decide who to interview?

35 Resume Screening Cover letter Content (personalized, well organized, clear, addresses job) Aesthetics (easy to read, visually appealing, professional) Page 30 General qualifiers Content (career objective, accomplishments, dates and sequences match) Match with B.E.S.T. Profile criteria Yellow flags Items that make you ask questions about the person s qualifications / fit Avoid eliminating based solely on yellow flags; view them simply as areas that require further probing Hard-to-fill positions If you re been searching for a while, and/or the position is very difficult to fill, you need to be more flexible in screening criteria Resume Screening Resume Screening What are some other forms of resumes you have seen? Does it change the way you look at the candidate? 35

36 Exercise - Screening Resumes Part 1 In groups or pairs, make a list of what you look for when screening resumes? Part 2 Makes you keep or get rid of quickly? Review the Resume Screening Tips in your workbook Using the resumes you brought, identify: General qualifiers Yellow flags Other information that might impact your opinion Page 30 Discuss your answers with the people in your group and prepare to share with the class Letting a Resume Get Cold Speed is everything in hiring top talent. Within ten days the top 10% of job seekers are gone. - Peter Weddle, Career Fitness Workbook, 2012 One of two things will happen within 10 days; they will either: Find a job Stop looking Sell the company Each candidate will have a different reason for being attracted to your company: Culture and EVP Professional growth Stable Ownership Loyalty and longevity of staff Recognition Exercise What can you sell about your company to candidates? What will interest them? How will you sell different aspects of your company to the different generations? Page 31 36

37 The Interview You Already Know How to Interview so We ve added a variety of interview skills documents on your web site that you are welcome to use: Candidate Evaluation Form Interview Tips and Tricks Legal Question Guidelines Behavioral Question Database Feel free to download and use with our compliments! Engagement Action Plan Page 35 37

38 Action Plan for Day 5 Evaluate your organization on it s work life blending processes Evaluate several recognition processes being sure they are Available to everyone Tied to an outcome Delivered consistently Valued by employees Review your hiring process to determine if the BEST Profile can help make improvements Review of Program Review Xxx 38

39 Next Steps Page 41 Be bold, but understand it s a journey Commit on a few things and execute flawlessly Remember YOU can make a huge difference! Logistics HRCI Credits request a form from your Trainer Must have attended the session Web site will remain on site for 1 month Hang your certificate in a place of honor Reach out with questions Ah ha or Wow or Really Cool Stuff! Graduation 39