High Impact HR Strategies

Vancouver May 25, 2005 Ottawa May 31, 2005 Toronto June 2, 2005

In partnership with

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High Impact HR Strategies

Dr. Shawna OGrady Queens School of Business

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

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Selection and Retention

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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)
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Do you have an integrated strategy for selecting, retaining, and managing talent within your organization?
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Why Is Selection Important?

Select the best, and you will eliminate ninety percent of your performance problems

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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

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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
Source: Journal of Applied Psychology

125%

more productive than average workers

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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
Source: Journal of Applied Psychology

125%

more productive than average workers

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Gap between top 1% and bottom 1%

For low complexity jobs For medium complexity jobs For high complexity jobs

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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

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Predictive Validity of Main Selection Methods

Selection Method Assessment centres Interviews (behavioural) Work sample tests Ability tests Modern personality tests Biodata References Interviews (non-behavioural) Validity Coefficient (r) .65 .48 - .61 .54 .53 .39 .38 .23 .05 - .19
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Improving Selection

Use a combination of selection techniques to increase effectiveness beyond the interview Ensure those using the techniques are trained appropriately in specifics Whats 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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Do You Have:

HI POs
or

PO POs

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What are you doing to talent proof your organization?

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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

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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

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Retention Strategies

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Why Do Employees Leave?

They have a poor relationship with their boss Theyre dissatisfied with their current job They have a better alternative

Why Do Employees Stay?

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Staying is not the obverse of leaving

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Why do People Stay?

Its not whether people are satisfied or dissatisfied thats the issue, its how integrated people are in their jobs that often prevents them from leaving.

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The Best Retention Strategies Focus on:

1) Links to others 2) Fit with the job & community 3) Sacrifices theyd have to make

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COACHES COACHES

TEAM TEAM BUILDING BUILDING

MENTOR MENTOR SYSTEMS SYSTEMS

DESIGNATED DESIGNATED ROLE MODELS ROLE MODELS

CREATE LINKS CREATE LINKS

CHOOSE CHOOSE CLIENTS CLIENTS TIME OFF TO TIME OFF TO VOLUNTEER VOLUNTEER IN IN COMMUNITY COMMUNITY PROVIDE INFO PROVIDE INFO ON ON COMMUNITY COMMUNITY RESOURCES/ RESOURCES/ ACTIVITIES ACTIVITIES DISCOUNT ON DISCOUNT ON HOMES HOMES PURCHASED PURCHASED IN NEARBY IN NEARBY COMMUNITY COMMUNITY

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JOB JOB SCULPTING SCULPTING REALISTIC JOB REALISTIC JOB PREVIEWS PREVIEWS

FLEXIBLE FLEXIBLE SCHEDULES SCHEDULES

ENSURE FIT ENSURE FIT

PERSONALITY PERSONALITY TESTS TESTS 35-HOUR 35-HOUR WORK WEEK WORK WEEK

CAFETERIA CAFETERIA STYLE BENEFITS STYLE BENEFITS

TELECOMMUTING TELECOMMUTING

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MINIMINISABBATICALS SABBATICALS EVENT EVENT TICKETS TICKETS

MASSAGES MASSAGES CONCIERGE CONCIERGE

EXERCISE EXERCISE FACILITIES FACILITIES

INCREASE THE INCREASE THE SACRIFICE SACRIFICE

TRAINING AND TRAINING AND DEVELOPMENT DEVELOPMENT

COMPANY COMPANY VEHICLES VEHICLES

CHILDCARE CHILDCARE

OFFICE OFFICE DECORATED DECORATED

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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-board raises) may do as much to promote the retention of poor performers as they do to promote the retention of high performers
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Coaching for Success

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Coaching
75% of performance comes from what happens after the goals are set Should be a day-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
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Distinguishing Characteristics of a Coaching Style

A strong developmental bias Extensive personal contact Caring

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Coaching
Coach
Kn ow

Kn

ow

Maintain Focus
Next step Next step

End Goal

Current Performance

Next step Next step

Next Next step step

ls oa g ce an rm fo r Pe

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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?

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Segmenting
Productivity

50 45 40 35 30 25 20 15 10 5 DEADWOOD TRAINEE PROBLEM CHILD 10 15 Potential 20 25 MARGINAL WORKHORSE STAR

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

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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

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Segmenting at Campbell Soup Company Ltd.

High potential Promotable Expandable Valued professional Suitably placed Find a more suitable assignment Outplace Too soon to evaluate
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Segmenting by Performance and Attitude

Hi

S.O.B.s

Performance
Drones
Lo Lo

Honey Bees

Bumble Bees
Hi

Attitude
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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 organizations investment in future capital

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HRs Role in Succession Planning

HR helps build systems to support succession planning HR initiates; executives/managers provide content Collect information verbally and face-to-face Ask questions directly and challenge executive responses Watch for leaders who Eat their young Simplify the process for executives/managers
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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
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Unleash The Passion And Spirit Of Your People

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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 worlds 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
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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

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Thank you!
Dr. Shawna OGrady Associate Professor School of Business, Queens University Kingston, Ontario Phone: 613-533-2328 Email: sogrady@business.queensu.ca

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