Attraction and Retention in the GFC

and what this means topractice-based professions

Irena MorrisDirector, Paradigma Solutions

Oct 2009

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Last Year ….and now this Year!!

Rapid Growth

Capitalising the opportunities

Expansion

Rapid Growth

Easy access to money

Fighting competition for

resources including

people

Very high cost of

staff and contractors

Limited skilled staff

Importing of labour/skilled staff

Rapid Growth

Limited skilled staff

Expansion

Capitalising the opportunities

Rapid Growth

Capitalising the opportunities

Expansion

Rapid Growth

Easy access to money

Very high cost of staff andcontractors

Limited skilled staff

Importing of labour/skilled staff

Rapid Growth

Limited skilled staffExpansion

Rapid Growth

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Terminology

• Attraction

• Retention

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Managing each stage of theEmployee Life Cycle -> Good Retention

- Employee Referrals- Employer of Choice- Graduate Programs- Orientation Programs- Buddy System

- Training & DevPrograms- Mentoring/Coaching-Certifications,Accreditations

PerformanceManagement

- Fair Remuneration& Reward basedon performance- Engagement Programs- Ongoing Feedback fromManagers- Work Life Balance

- Work with staff toachieve goals- Succession Planning

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…but its got to make sense for yourbusiness!

‘People’ / Talent Strategy Area

People policies and strategies that drivebusiness, and attract, motivate and retain keytalent are determined. Talent Management is thekey strategy in this area.

‘People’ Program Area

Tools that facilitate and support thepolicies and strategies set in the TalentManagement strategy area aredetermined.

Business Strategy Area

Business plans and business strategiesare determined based on your vision,values, and goals.

PerformanceManagement

ManagementTraining

WorkforceStrategy

CareerDevelopment

S

T

R

A

T

E

G

Y

A

L

I

G

N

M

E

N

TRecruitment

&Retention

Compensation&

Benefits

RemunerationStrategy

TalentManagement

BusinessStrategy

© Paradigma Solutions 2007

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So what doesattraction andretention look likepost October 2008and as we continueinto the GlobalFinancial Crisis?

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Snap Survey

1. How many of you, in your organisations,have downsized or are planning todownsize (either staff or contractors)?

2. How many of you, in your organisations,have had to rethink paystructures, bonuses orother ways ofpaying staff?

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Some statistics and facts to consider…

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• 20% of CEOs and seniorexecutives in a surveyof 528 Australianbusiness leadershave said they WILLdownsize

(AIM 2009 Survey)

Organisations are downsizing, despitecautious optimism

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How to keep key staff is a primaryconcern

• 60% of 300 companies surveyed inan Asia-wide survey were concernedabout retention of key staff(Towers Perrin, 2009)

• 70% of Australian managers agreethat it is more difficult to keep goodpeople today than 1 year ago(MGSM Inst of Sustainable leadership, 2009)

• While 65% of managers said that theirorganisations did not understandwho was at risk of leaving(MGSM Inst of Sustainable leadership, 2009)

This was listed as the#1 priority of

Australian CEOs andexecutives in the AIM

Survey

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• 75% of organisations in the Asian survey saidthat they would be cutting back on travel andentertainment (Towers Perrin,2009)

• 46% confirm theywill be cutting trainingin their organisation(Towers Perrin, 2009)

Other cost cutting measures are being putin place…

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Recruitment practices are changing

• Organisations managing own recruitment moreand more

• Looking to fill any vacancies with local staff

– P457s decreased dramatically

• Referral-based recruitment

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What lessons canbe learnt fororganisations asthey navigate theGFC?

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This is the time to….

• Right-size…get rid of ‘bloat’ but do it sensitively!!

• Get your key staff ‘locked in’ as much as you can

• Create a culture of hope and positivity

• Encourage participation about how yourcompany can survive

• Share the pain

– Eg cut costs fairly

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And don’t forget to continue working on the issuesthat remain for practice-based professions…• Succession planning

– how to fill senior positions as partners and senior executives startto retire

• EEO– how to attract women back into the workforce, particularly true in

Medicine, Law, Accounting

• Work/life balance– how to ensure that a healthy worklife balance is available to staff

• And for many practices– How to attract young practitioners

• And DON’T forget training!!!– Keep upskilling those key staff and people in key

roles

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Questions?

irena@paradigma.com.au