Manufacturing CFOs: Strategies to attract and retain high-performing talent

Transcription

1 Manufacturing CFOs: Strategies to attract and retain high-performing talent Eric Gonzaga Partner, Human Capital Services Jeff French (moderator) National Managing Partner, Manufacturing practice leader Thursday, Sep. 21, 2017

2 Agenda The importance of Employee Engagement and Performance Management in retaining talented accountants, analysts controllers and other finance specialists in manufacturing Strategies for Millennials Career ladders and incentives: Using the total rewards strategy as the lynchpin How has this been applied to finance and accounting talent?

3 Importance of engagement

4 Improving engagement is an opportunity Increase in productivity and profitability Lower absenteeism Improve retention rates Better communication Increase collaboration Increase recruitment success rates Grant Thornton LLP. All rights reserved. 4

5 Millennials Millennials currently make up 1/3 of the workforce and will account for over half the workforce by Millennials want flexibility in their jobs, frequent feedback, and a higher sense of purpose. Some questions that are particularly good for the Millennial demographic are the following: Does your supervisor seem to care about you as a person? (this is important because it has been found that 75% of people don t quit their job, they quit their boss) Is there someone at work who encourages your development? Do you feel your work is important?

6 Why is feedback important? Leaders who give more feedback are 3X more likely to have highly engaged employees. The benefits of feedback: It gives a feeling of belonging and purpose It increases growth for both the giver and receiver It unlocks change and innovation Prevents us from getting "stuck"

7 When to focus on formal feedback? Performance Management Coaching Performance Management Coaching Feedback Steps: Performance coaching is an ongoing process which helps build and maintain effective employee and supervisory relationships. Supervisors and employees can work collaboratively on creating action plans that might include training, new assignments, job enrichment, self-study, or work details. Build trust between coach and coachee Define the issues to be improved upon Create a plan of action Deliver frequent feedback Grant Thornton LLP. All rights reserved. 7

8 When to focus on formal feedback? Accelerating High Performers High performers can deliver 400% more productivity than the average employee¹ 50% of high performers expect a monthly sit-down with their managers Only 53% actually receive the monthly feedback Steps for Feedback to High Performers: Tip: Let them steer the focus of feedback session Ask what they think they can do better or differently Let them have a say in their stretch goals Take the time to learn from them if possible Don't discontinue positive feedback always commend on jobs well done Make sure that feedback is specific² ¹ ² Grant Thornton LLP. All rights reserved. 8

9 Importance of Total Rewards

10 Total Rewards A True Differentiator of Engagement Surveys have shown time and time again that a well thought-out total rewards strategy differentiates organizations from their peer organizations, attracts higher talent levels, improves retention and engagement and ultimately, improves employee productivity Look at all elements of the rewards program Integrate with career development Use of variable pay Recognition Clearly communicate objectives and align Grant Thornton LLP. All rights reserved. 10

11 Total Rewards Evolution "Old School" Used to support traditional organizational structure Focuses on duties and tasks Training provided only when needed Very formalized structure limited flexibility Limited communication to employees Work-Life balance (what is that?) "Meat and Potatoes" Rewards and Recognition Bonus, merit increase "New School" Programs are aligned with organizational goals and strategies operationalized by linking to company values Focuses on employee contributions; used to motivate Flexible Transparent Training and Development - implicit in employee value proposition Work-Life balance (flexible time-off, telecommuting, etc.) Creative, brand-based Rewards and Recognition Grant Thornton LLP. All rights reserved. 11

12 Branding Total Rewards Just like top-performing organizations have a strong brand, best-in-class reward programs are branded for communication and alignment purposes Clear, concise and formally documented total rewards philosophy Communicated throughout the organization "tone at the top" Aligned with organizational culture, mission, vision and values Operationalized by connecting values to behaviors to outcomes

13 Grant Thornton perspective for best practices Total Rewards Model Illustration Pay & Benefits PROSPER ACHIEVE Recognition & Engagement Base Pay (Tied to Performance) Competitive Healthcare Plan Wellness & Preventive Care Retirement Plan Competitive Paid Time Off Engagement Action Planning Focus on innovation Individual Recognition High Performance Team Clear Two-Way Communication GROW Learning & Development Local & National Opportunities Learning Framework Performance Development Review Tuition Reimbursement Numerous Development Tools Work Environment CONNECT Work/Life Flexibility Team Concept Mission & Values Culture Challenging Work Meaningful Impact Grant Thornton LLP. All rights reserved. 13

14 Contemporary Strategies for Finance and Accounting Professionals

15 Creativity being exercised to motivate talent Some examples about engagement... Defined skill and competency-based career ladders, a flexible road-map linked to broad salary range Financial Analyst: Support; Entry-Level Financial Analyst 2: Support; Certification Financial Analyst 3: Support; Certification; Evidence of expertise in two or more finance disciplines Financial Analyst 4: Lead finance function for Division FP&A or Product Line FP&A Grant Thornton LLP. All rights reserved. 15

16 Creativity being exercised to motivate talent Some examples about engagement... Flexible rotation On-boarding plan allows rotation through internal audit, finance, accounting, FP&A, treasury every 3 to 6 month period from date of hire Customized per each hire, balanced with organizational needs Grant Thornton LLP. All rights reserved. 16

17 Don't Forget the Traditional Tools Money still matters... Clear pay for performance differentiation Competitive annual incentives, with a significant portion linked to individual performance outcomes Provide grants of restricted stock, phantom stock, stock options, stock appreciation rights, and retention-based cash plans to key performers, particularly future leaders of the organization Target higher market pay levels for "hot jobs" Use signing and stay bonuses for "hot jobs" Grant Thornton LLP. All rights reserved. 17

18 Questions? Additional manufacturing resources Winning manufacturers of the future will be bold enough to question and reimagine their core business model. Failure to employ a supply chain optimization strategy will cost companies in the long run. Gain a competitive edge. Will the trump administration help or hurt the manufacturing industry?

19 Speakers Eric Gonzaga Partner, Human Capital Services T E eric.gonzaga@us.gt.com Jeff French National Managing Partner, Consumer and Industrial Products T E Jeff.French@us.gt.com Grant Thornton LLP. All rights reserved. 19

20 Disclaimer This Grant Thornton LLP presentation is not a comprehensive analysis of the subject matters covered and may include proposed guidance that is subject to change before it is issued in final form. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this presentation. The views and interpretations expressed in the presentation are those of the presenters and the presentation is not intended to provide accounting or other advice or guidance with respect to the matters covered For additional information on matters covered in this presentation, contact your Grant Thornton, LLP adviser Grant Thornton LLP. All rights reserved. 20