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Report Out of Human Capital Research: Rewarding, Engaging, and Retaining Key TalentRetaining Key Talent
Rachele Williams program manager Research ServicesRachele Williams, program manager, Research Services APQC Member MeetingNovember 4, 2010,
APQC’s Human Capital Research Open Standards Research—global metric research and benchmarking
based on open standards Detailed, complimentary benchmarking surveys across the human capital life
/cycle available at www.apqc.org/hcm• HR planning, policy, and strategy–www.apqc.org/hcm/cm
• Recruiting–www.apqc.org/hcm/srs
• Employee training and development–www.apqc.org/hcm/dc
/ /• Rewards and retention–www.apqc.org/hcm/rr
• Payroll–www.apqc.org/hcm/payroll
• Redeployment and retirement–www.apqc.org/hcm/rdr
• Managing employee information/Communications (HRIS)–www.apqc.org/hcm/mei
C ll b ti R h lti l i ti b t ti Collaborative Research—multiple‐organization best practices collaboration on common sets of issues or processes One to two collaborative research studies planned per year in human capital
Collaborative research agenda can be found atCollaborative research agenda can be found at http://www.apqc.org/PDF/bestpractices/studies/2009/APQC_2009_Research_Agenda.pdf
Next collaborative research study (topic TBD) kicks off 3Q of 2010
Custom Research—Customized benchmarking for individual
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Custom Research—Customized benchmarking for individual organizations
Human Capital Resources on the Knowledge BaseKnowledge Base The Knowledge Base (KB) has a wealth of
information on metrics measures and bestinformation on metrics, measures, and best practices in human capital for members in the following topics:
R iti Recruiting Employee training and development Leadership development Talent management Succession planning Work force planning Work force planning
To register for the KB, go to www.apqc.org and follow the prompts under “Free Registration” on the upper right
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upper right.
Scope of the ResearchpDuring this collaborative research study, we examined four areas:examined four areas:
Employee rewards, engagement, and retention strategystrategy
Processes for rewarding, engaging, and retaining key talentkey talent
Employee rewards, engagement, and retention practicespractices
Outcomes and measurement
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Collaborative Research Methodologygy
C ll ti Ad t/R t•Identify potential best‐practice partners•Invite them to participate in the study•Hold kickoff call
•Identify potential best‐practice partners•Invite them to participate in the study•Hold kickoff call
•Participate in virtual site visits with best‐practice partners•Collect information
•Participate in virtual site visits with best‐practice partners•Collect information
Collection
•Analyze data•Identify key findings, critical success factors, and enablers
•Analyze data•Identify key findings, critical success factors, and enablers
•Hold virtual knowledge transfer session
•Hold virtual knowledge transfer session
Adapt/Report
Hold kickoff call•Finalize data collection tools
Hold kickoff call•Finalize data collection tools
Planning
•Collect information from the best‐practice partners using the data collection tool(s)•Write case studies
•Collect information from the best‐practice partners using the data collection tool(s)•Write case studies
and enablersand enablers
Analysis
•Discuss key findings, critical success factors, and enablers•Share sponsor key findings
•Discuss key findings, critical success factors, and enablers•Share sponsor key findings
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Study Participantsy p 3M AARP AARP ConocoPhillips Co. D & C Deere & Co. Infosys Technologies Ltd. J h & J h Johnson & Johnson Occidental Petroleum Corp. hl b d Schlumberger Ltd. U.S. Army ARDEC
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Engagement Defined
Engagement is an ongoing process to enhance the
g g
g g g g punderstanding of employee perspectives and organizational practices in an effort to recruit, retrain, reward, and retain talent —Employee Hold’emtalent. —Employee Hold em
An individual’s sense of purpose and focused energy, evident to others in the display of personal initiative, effort, and persistence directed toward organizational goals.—3M
Possessing passion for work he/she performs at the organization Infosysorganization.—Infosys
Motivation of its employees is a core value, along with a commitment to technology and a determination to produce
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superior profits.—Schlumberger
Responsible for Employee Engagement
Best‐practice organizations partner with line managers and the
p p y g g
p g p gbusiness on employee engagement, with championship from senior leadership.
Senior leadership backing and support is critical to employee engagement efforts within an organization.g g g
HR is a key facilitator of engagement and provides tools, templates, and processes to the organization.
Ultimate responsibility for employee engagement rests with front‐line supervisors and managers.
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Integration in Overarching Talent ManagementManagementBest‐practice organizations integrate employee engagement with the recruiting and employment branding
Recruiting/
engagement with the recruiting and employment branding strategy.
Recruiting/
Selection
Employee Engagement
Training and Development
Performance Evaluation/
Management
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Rewards and Retention
3M Example: Integrated Employment Brand ModelBrand Model
External•External Web sites•Events•Multimedia exposure•Corporate recognition
l•External metrics•Community activities
Internal•International Branding tool kit•Traveling booth•Internal Web sites•Video contest•DVD
l l
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•Internal commercials
Employee Feedback Mechanismsp yBest‐practice organizations gather employee feedback from multiple listening posts.
Infosys examples: LITMUS survey–Let’s Interact on Themes
that Matter to Us (LITMUS), an online ( ),employee engagement survey of issues that matter to its employees.
Managers Portal–a comprehensive Web site that serves as a communication platform for Infosys managers worldwide to share, assimilate, and analyze relevant business information
HRD Blog–a platform via which g pemployees communicate with the HR head on various issues concerning them
My Voice @ Infosys–a communication platform for employees to share their
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p p yinputs and suggestions on various policies affecting them on an ongoing basis
Feedback is ACTED uponTop categories of actions
Each regional group and g g ptechnology center forms an action plan to address feedback from the surveyfeedback from the survey.
Total Actions in Scorecard
Number Complete
Percent Complete
332 299 90.1%
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Opportunities for Personal and Professional DevelopmentProfessional DevelopmentBest‐practice organizations provide meaningful and p g p gchallenging work to all employees.
The fundamental tenets of what comprise an engaged l th d it d iti iemployee are the same despite age, gender, position in
the company, region, or culture.
The work provides them an opportunity to develop both p pp y ppersonally and professionally.
“The desire for meaning and purpose in the workplace k b d ” Vi id f l l iknows no borders.” —Vice president of talent solutions, 3M
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Tenets of Employee Engagement at 3M
Treat people fairly, through accountability and
p y g g
Treat people fairly, through accountability and rewards, respect and warmth, and procedural fairness (by keeping promises, involving people in decision making, creating an operational rhythm, and distributing work equitably).
Pay attention to the seemingly mundane, such as technology, support, and internal battles.
d l b l Recognize and celebrate employee successes.
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Employee Development at Infosys
Entry‐level training
» 14‐26 weeks comprehensive finishing school» Part‐time and distance
education programs
Continued Higher
» Benchmarked against U.S. standards
education programs
educationeducation
» Three‐tiered program focused on strategic business and
ILITE dL d hi
» Certification programs aligned with career streams
» STAR role‐based training for competency building
on strategic, business, and operational leadership roles
» Competency enabling for better management for self, teams, clients, and business
ILITE ande‐learning
Leadership development
» Web‐based integrated training management system
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system
» 25 percent of training through e‐learning modules
Customized Engagement Tactics
Best‐practice organizations customize key talent management practices, where appropriate, to maximize engagement and retention.
“Employees are sophisticated consumers. A one‐size‐fits‐all approach does not work.” ─Senior vice president and head of HR, Infosys
SLB example: Career Orientation Reviews: SLB example: Career Orientation Reviews: One‐on‐one review of employee career objectives Every five years for all high‐value employees Ad hoc for other employees Thorough debrief of employee career so far Thorough debrief of employee career so far Search for overlaps between employee expectations and company requirements Five‐year and ten‐year perspectives Results consigned to the HR database
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3M Retention Study
Tailor employee messages, programs, and policies to meet the needs of specific groups:to meet the needs of specific groups: “In it to win it” – Want career advancement, pay, and
stock options
“In it for their family” – Want good benefits, 3M reputation and stability is important, flexible schedule
“I it t i it” W t ti i “In it to experience it” – Want supportive supervisors who teach, international travel, and a breadth of opportunity across functions
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Social Media to Engage EmployeesBest‐practice organizations use virtual collaboration and social media to create a sense of community between
Each best‐practice partner uses social media to create a sense
employees and the employer.
Each best‐practice partner uses social media to create a sense of community among its employees around the world.
Schlumberger—BlueTube
Infosys—Infosys YouTube
3M—Ideadirect
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Engagement and Training and Development: OnboardingDevelopment: OnboardingBest‐practice organizations train employees in order to increase their engagement and magnify engagement efforts.
The best‐practice partners have created extensive, formal new‐hire onboarding and entry‐level training. Schlumberger places new hires from universities into a three‐year technical or sales training program.
Infosys enrolls new hires in a three‐ to six‐month Infosys enrolls new hires in a three to six month finishing school.
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Engagement and Training and Development: Supervisors/ManagersDevelopment: Supervisors/Managers
Supervisors and managers are engagement agents, the vital lynchpin between policies and execution of those policies.
3M—use of short, targeted training videos
Schlumberger—offers different training depending on the experience level of the supervisor
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Engagement and High‐Potential/Leadership TrainingPotential/Leadership Training
E d l d h l f i fEngaged leaders are themselves an area of continuous focus for training and development Leaders engage employees as a key leadership competency.
Employees who receive training and development are more engaged.
Leaders who receive training and development in order to engageLeaders who receive training and development in order to engage others stay actively engaged as well.
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Rewards and Recognitiong
Best‐practice organizations create a rewards and recognition culture
The best‐practice partners have moved beyond the typical d
culture.
rewards strategy.
Different rewards appeal to different types of employees.employees.
The partners use training and career opportunities (career ladders and career lattices), discretion over work,
h d fl b l k/l f b lenhanced flexibility in work/life balance, etc.
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Tangible Rewardsg
“We think in terms of total compensation—for example, p pbase pay, variable pay, stock options, and restricted stock units. Fair total compensation is a key foundation for all employees Without it learning growth and developmentemployees. Without it, learning, growth, and development are irrelevant.” – 3M
“Having the right salary for retention is fundamental. People won’t leave the organization because of their salary; but if they are unhappy with their salary, it is the last straw. When the employee is dissatisfied and the salary is not right, theythe employee is dissatisfied and the salary is not right, they start to think about moving elsewhere.” – Schlumberger
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Creating a Reward and Recognition Culture Through Performance Based PayCulture Through Performance‐Based PayBest‐practice organizations reward employees based on performance not tenure
60%
Percentage of Salary that is Performance‐Related Pay (Median)
performance, not tenure.
50%
40%
50%
28%
15%
30%
20%20%
30%
7%
0
10%
Senior management/ E ti
Middle management/ S i li t
Operational workers/Office t ff
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Executive Specialist staff
All Participants Top Performers
Creating a Reward and Recognition Culture Through Work/Life BalanceCulture Through Work/Life BalanceBest‐practice organizations take a comprehensive view of work/life balance
Work/life balance: Beyond flex time
work/life balance.
Beyond flex time
Beyond work‐from‐home policies
The best practices cover: Health and safety
Fitness
Family‐friendly benefits Family friendly benefits
Support for dual‐career families
And the pursuit of dreams
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3M Healthy Living ResourcesA diversified, four‐part program designed to:
Lower our long‐term health care costs and enhanceLower our long term health care costs and enhance employee productivity
Reduce the demand for costly medical interventions and minimize employee productivity loss
Help employees better manage their lives physically, socially, and emotionallyemotionally
Other employee objectives:
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Engagement Recruitment Enhance organizational commitment
Engagement During Times of Changeg g g g
The best‐practice organizations are aggressive in their p g ggefforts to retain talent during economic downturns and organizational changes.
Role of the Schlumberger integration manager during an acquisition: I i l f th l t d ti f th i t ti Is in place for the complete duration of the integration
process
Is an essential component of the management team but p gdoes not replace the current HR manager
Is focused solely on employee integration
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Retention of Key Talent at SchlumbergerIdentification of at‐risk populations:
y g
By the HR function
Cross referenced by business segments and geographies Cross‐referenced by business segments and geographies
Continuous monitoring
Immediately brought to the attention of executive Immediately brought to the attention of executive management, for preventive action
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Engagement and Performance ManagementManagementBest‐practice organizations hold leaders responsible for p g pemployee measures.
The responsibility for employee engagement is placed at the feet of supervisors and managers, with executive championship provided by senior executives and support, p p p y pp ,tools, templates, and guidance from corporate HR. Build responsibility for engagement into leadership competencies.
B ild ibilit f t th h th i ti ’ Build responsibility for engagement through the organization’s performance management practices.
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3M Leadership Competencies
Thinks from outside in Thinks from outside in
Drives innovation and growth
D l t h d th Develops, teaches, and engages others
Makes courteous decisions
d i h i d Leads with energy, passion, and urgency
Lives 3M values
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Engagement and Business Outcomesg g
Best‐practice organizations link employee engagement with p g p y g gbusiness outcomes.
H d th d il i t ti l h ith th i How do the daily interactions employees have with their organization affect their attitudes, behaviors, actions, and the organization’s success?
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Building a Stronger Brand
Employee Engagement
Start Here!
Employee Engagement
Customer Engagement
Share of Customer
Sales Revenue
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Model of Employee EngagementPositive business outcomesPositive business outcomes
Outcomes of an engaged work force:
stay longery g
work harder
recommend the organization
Desired state: engaged work force
Attraction Motivation Retention
Components:
Performance management
Components:
Reputation management
Work force selection
Organizational orientation
Rewards and recognition
Work/Life balance
Stakeholder input
Opportunities for advancement
T i i d d l t
Components:
Daily satisfaction
Effective senior leadership
Ethics, diversity, and safety
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Training and development
Tools and technology