High Impact HR. Strategies. Vancouver May 25, 2005 Ottawa May 31, 2005 Toronto June 2, In partnership with SO-002

Transcription

1 High Impact HR In partnership with Strategies Vancouver May 25, 2005 Ottawa May 31, 2005 Toronto June 2, 2005

2 High Impact HR Strategies Dr. Shawna O GradyO Queen s s School of Business Shawna O Grady, 2005

3 Overview Selecting and retaining the best Succession planning and talent management Coaching through segmentation Unleashing the passion and spirit of your people

4 Selection and Retention

5 War For Talent Economy growth Massive retirements in the next five years Demographic changes By 2016, annual growth in the labour force will be near zero 58% of Canadian employees are open to move to other organizations (Conference Board of Canada 2005)

6 Do you have an integrated strategy for selecting, retaining, and managing talent within your organization?

7 Why Is Selection Important? Select the best, and you will eliminate ninety percent of your performance problems

8 Why Is Selection Important? High performing organizations use selectivity in recruitment and selection An organization can train for skills and knowledge, but it should select for core traits and attitudes Twenty-five years of research and experience have proven that there are significant differences between superior and average performers

9 Productivity differences between average performers and top 1% of all performers in the same organization For low complexity jobs (front line workers in a fast-food restaurant) Top-level performer 50% more productive than average workers For medium complexity jobs (production workers in a high-tech factory) Top-level performer 85% more productive than average workers For high complexity jobs (an associate in an investment bank) Top-level performer 125% more productive than average workers Source: Journal of Applied Psychology

10 Productivity differences between average performers and top 1% of all performers in the same organization For low complexity jobs (front line workers in a fast-food restaurant) Top-level performer 50% more productive than average workers For medium complexity jobs (production workers in a high-tech factory) Top-level performer 85% more productive than average workers For high complexity jobs (an associate in an investment bank) Top-level performer 125% more productive than average workers Source: Journal of Applied Psychology

11 Gap between top 1% and bottom 1% For low complexity jobs For medium complexity jobs For high complexity jobs

12 Gap between top 1% and bottom 1% For low complexity jobs 300% For medium complexity jobs 1,200% For high complexity jobs un-measurably high

13 Predictive Validity of Main Selection Methods Selection Method Validity Coefficient (r) Assessment centres.65 Interviews (behavioural) Work sample tests.54 Ability tests.53 Modern personality tests.39 Biodata.38 References.23 Interviews (non-behavioural)

14 Improving Selection Use a combination of selection techniques to increase effectiveness beyond the interview Ensure those using the techniques are trained appropriately in specifics What s s your Employer Value Proposition (EVP)? Identify the characteristics of star performers Only allow your top talent to attract talent Craft your capture strategy Follow up & close the loop measure your success

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16 Do You Have: HI PO s or PO PO s

17 What are you doing to talent proof your organization? SO-001

18 Pay Increases For Canadian Employees Performance Level Average Performers Top Performers Percentage Increase 3% 5.1% What message does this send? Source: Conference Board of Canada, 2005

19 Compensation Increase Differential Between Outstanding and Satisfactory Performers Differential Nil.25% to 1.00% 1.10% to 3.00% Over 3.00% Prevalence 30% 19% 37% 14% Median Differential = 1.25% Source: Hay Management Consultants

20 Retention Strategies

21 Why Do Employees Leave? They have a poor relationship with their boss They re dissatisfied with their current job They have a better alternative Why Do Employees Stay?

22 Staying is not the obverse of leaving

23 Why do People Stay? It s s not whether people are satisfied or dissatisfied that s s the issue, it s s how integrated people are in their jobs that often prevents them from leaving.

24 The Best Retention Strategies Focus on: 1) Links to others 2) Fit with the job & community 3) Sacrifices they d d have to make

25 COACHES COACHES TEAM TEAM BUILDING BUILDING MENTOR MENTOR SYSTEMS SYSTEMS DESIGNATED DESIGNATED ROLE ROLE MODELS MODELS CREATE CREATE LINKS LINKS CHOOSE CHOOSE CLIENTS CLIENTS TIME TIME OFF OFF TO TO VOLUNTEER VOLUNTEER IN IN COMMUNITY COMMUNITY PROVIDE PROVIDE INFO INFO ON ON COMMUNITY COMMUNITY RESOURCES/ RESOURCES/ ACTIVITIES ACTIVITIES DISCOUNT DISCOUNT ON ON HOMES HOMES PURCHASED PURCHASED IN IN NEARBY NEARBY COMMUNITY COMMUNITY

26 JOB JOB SCULPTING SCULPTING FLEXIBLE FLEXIBLE SCHEDULES SCHEDULES REALISTIC REALISTIC JOB JOB PREVIEWS PREVIEWS ENSURE FIT FIT CAFETERIA CAFETERIA STYLE STYLE BENEFITS BENEFITS PERSONALITY PERSONALITY TESTS TESTS 35-HOUR 35-HOUR WORK WORK WEEK WEEK TELECOMMUTING TELECOMMUTING

27 MINI- MINI- SABBATICALS SABBATICALS MASSAGES MASSAGES EVENT EVENT TICKETS TICKETS CONCIERGE CONCIERGE EXERCISE EXERCISE FACILITIES FACILITIES INCREASE INCREASE THE THE SACRIFICE SACRIFICE TRAINING TRAINING AND AND DEVELOPMENT DEVELOPMENT COMPANY COMPANY VEHICLES VEHICLES CHILDCARE CHILDCARE OFFICE OFFICE DECORATED DECORATED

28 You Need To Know: Who quits and why? Industry quit rates? Who stays? Data segmented by employee group so you can develop focused strategies that respond to the unique concerns of targeted employee groups Because poorly focused retention strategies (i.e. across-the the-board raises) may do as much to promote the retention of poor performers as they do to promote the retention of high performers

29 Coaching for Success

30 Coaching 75% of performance comes from what happens after the goals are set Should be a day-to to-day activity Employees accept suggestions for improvement if they are given in less concentrated form Employees want feedback that is simpler and given more often Studies of the learning process show that feedback is less effective as more time is allowed to elapse between the performance and the feedback

31 Distinguishing Characteristics of a Coaching Style A strong developmental bias Extensive personal contact Caring

32 Coaching Know Coach Know Maintain Focus Next step Next step End Goal Current Performance Next step Next step Next step Next step Performance goals

33 Segmenting How many organizations segment your workforce so that you can focus investment on motivating the kinds of behaviour changes that will yield the highest returns?

34 Segmenting STAR Productivity WORKHORSE MARGINAL 10 5 DEAD- WOOD TRAINEE PROBLEM CHILD Potential

35 Segmenting Where do you spend your time? Where should you spend your time? Segmentation helps you decide where time should be spent

36 Spending Time on Deadwood Is analogous to a game of golf when you are asked, How was it? and you answer, Good, except after the third hole when Joe was struck by lightning - then it was - hit the ball... drag Joe, hit the ball... drag Joe

37 Segmenting at Campbell Soup Company Ltd. High potential Promotable Expandable Valued professional Suitably placed Find a more suitable assignment Outplace Too soon to evaluate

38 Segmenting by Performance and Attitude Hi Performance S.O.B.s Honey Bees Drones Bumble Bees Lo Lo Attitude Hi

39 Organizational Culture and Development Where you spend your time sends a powerful message When people know that their performance will be noticed and rewarded, it is a tremendous motivator What do you need to compete in the future, and does your organization have what it needs? Trainees are the organization s s investment in future capital

40 HR s s Role in Succession Planning HR helps build systems to support succession planning HR initiates; executives/managers provide content Collect information verbally and face-to to-face Ask questions directly and challenge executive responses Watch for leaders who Eat their young Simplify the process for executives/managers

41 Succession Planning Key Success Factors Owned by line management; supported by staff Treated as part of the process used to run the business Accountability and follow-up Understand the deal breakers in your organization behaviors every person in the job must display and embrace to move ahead in your company these can make or break someone Every high potential person needs a plan of development rotation and exposure a mentor and a coach

42 Unleash The Passion And Spirit Of Your People SO-001

43 Keep Your People Healthy 1/3 of Canadians do not take their holidays; they miss an average of 8 vacation days per year (netting $8B in unused holidays annually) (2005 Expedia.ca/ Ipsos-Reid) 36% of Canadians are in contact with the office while away Chronic lack of sleep plagues our nation some of the world s s most horrific accidents have been attributed to sleep debt (i.e. Exxon Valdez, Challenger space shuttle) Eventually, takes its toll in lack of productivity, creativity, work place accidents, time away due to stress and illness, and increased risk of death

44 Unleashing Passion and Spirit Job Sculpting - Assign people to work that they find motivating Train & develop employees in their strengths to world class performance Promote teamwork and a collaborative culture

45 Thank you! Dr. Shawna O GradyO Associate Professor School of Business, Queen s s University Kingston, Ontario Phone: sogrady@business.queensu.ca