techalliance - finance peer to peer hr presentation

TechAlliance Finance Group

Peer to Peer MeetingThe Financial Impact of People

January 21, 2016Anthony Folan

Integral HR Solutions Inc.www.integralhrsolutions.ca

http://www.integralhrsolutions.ca/

Session Objectives

Discuss the importance of Employee Engagement

Address the importance of employee retention and the (significant) costs associated with employee turnover

Presenting a business argument for hiring on a full-time, part-time, or contract basis

The rising cost of employee benefits and insurance programs

Legislative Updates

Hiring/Job Creation Strategies

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WWW.INTEGRALHRSOLUTIONS.CA

A Recent (US) Gallup Survey

Confirmed

www.integralhrsolutions.ca

Actively

Disengaged

15%

Not Engaged

60%

Engaged

25%

Towers Perrin Global Study of

over 90,000 Employees

Study establishes a definitive link between

levels of engagement and financial

performance.

It also demonstrates that when companies are

searching for competitive advantages, the

workforce itself represents the largest reservoir

of untapped potential……….



over 90,000 EmployeesThe most striking data about the linkage between

employee engagement and financial performance

comes from a study of 40 global companies that

compared financial results against engagement

data.

The study confirmed that firms with the highest

percentage of engaged employees collectively

increased operating income by 19% and earnings

per share by 28% year over year.




Those companies with the lowest percentage of engaged

employees showed year-to-year declines of 33% in operating

income and 11% drop in earnings per share.




The Towers Perrin study also debunks a widely held

view that engagement is an innate trait. Rather, it

is the organization itself and most particularly its

senior leadership that has the greatest impact on

Employee engagement.




Engaged employees also are more likely to see a direct

connection between what they do and company results,

according to the study more than 80% of engaged

employees believe they can and do contribute to the

quality of products and services, and to customer

satisfaction.

Only half as many of the disengaged share this view.


Employee Retention

A number of studies relating to the cost of

turnover have been conducted. Projections

relating to costs associated with replacing a

manager earning an annual salary of $80,000

are as follows.


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Employee Retention

Society for Human Resource Management:

$70,000 or 87.5% of annual salary

Coca-Cola Retailing Research Council:

$72,740 or 91% of annual salary

Hay Group:


Six Independent Studies (average)



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Employee Retention

Hay Group Study provides some simple calculations as follows:

The number cited is 1.5 times the salary for a manager or professional

Half the salary for an hourly paid worker

When a senior-level person occupying a crucial role or a high performing sales person leaves, the costs can be as much as twice the salary


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Employee Retention

Costs associated with turnover:

Recruitment, Selection, Training, Onboarding, Lost

Productivity (prior to departure & during transition),

Disengaged Colleagues, Management Commitment

to Process, Customer Retention, etc.


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Employee Retention

Costs associated with turnover:

Cost of hiring a new person (advertising, interviewing, screening, hiring, Search Fees)

Cost of onboarding a new person (training, management time)

Lost productivity (a new person may take 1-2 years to reach the productivity of an existing person)

Lost engagement (other employees who see high turnover disengage and lose productivity)

Customer service and errors (new employees take longer and are often less adept at solving problems

Training cost (over 2-3 years you likely invest 10-20% of an employee's salary or more in training, that is gone)

Cultural impact (whenever someone leaves others take time to ask "why?").


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Full-Time vs. Part-Time vs. Contract

When deciding whether or not to hire FT, PT or on a Contract basis,

establish as to what makes most sense for the business.

When deciding whether or not to hire FT, PT or on a Contract basis,

establish as to what makes most sense for the individual you are about

to hire.

Factor in business forecasts, projections, budgets, business plans. Does

it make sense to hire on a full-time, part-time or contract basis.


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Full-Time vs. Part-Time vs. Contract

If considering hiring on a part-time of contract basis be cognizant

of the fact that part-time and contract employees are more likely

to move on for full-time opportunities elsewhere (certainly the

talented ones).

Give consideration to (longer term) Retention Strategies


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Pros & Cons – Full-time

Full-time employees are typically more committed

Long term return on investment (training & development)

Generates more cohesion & teamwork

Retention of knowledge, systems

Full-time employee are more costly (benefit & insurance programs)

Lose flexibility (set 40 hour schedules/work week)

Full-time employees can become comfortable, resistant to change

Lengthy working notice, termination provisions at time of restructuring.


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Employee Benefits

Here are four big changes that have already affected group benefits in a big way—and will have an even greater impact in the future.

1) Personalized Perks

At one end of the continuum boomers still value prescription drug coverage, disability and long-term care. At the other end, their children are young and not so focused on ailments. Perks that assist a healthy and active lifestyle—alternative therapies, gym memberships, wellness programs or paramedicals, excite them more.

2) Communication

Clearly illustrating the monetary rewards of benefits really resonates with younger employees. So more and more companies are embracing infographics and have started including total rewards statements with employment offers. It makes the offer more dynamic.”


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Employee Benefits

3) Embrace TechnologyTechnology has completely changed over the past few years. Many employees are consummate users of mobile technology. To that end, the insurance industry has developed mobile apps that allow iPhone, Android, BlackBerry and other smartphone users to submit medical and dental claims online; check what they’re covered for; see their HSA balances; and access additional information about their drug plans, including lower-cost alternatives. E-payment services developed by the insurance industry allow plan members to receive benefits claims payment by direct deposit and view claims statements online.

4) Prevention over Cure

Today’s workplace has undergone a cultural overhaul, with both employer and employee focus shifting from cure to prevention. Progressive employers are now thinking of benefits beyond something they offer to fulfill standard expectations. They’re looking at them more as a means to develop a more engaged, healthy and productive workforce.”


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Employee Benefits

Statistics Canada reports that millennials currently make up about a quarter of the workforce—but that will swell to about 40% by 2020, when the majority of boomers will have retired, according to U.S. research. Employers that can cater to the needs and wants of this budding generation will have a competitive edge.

This cohort has grown up during a time when health has evolved from being solely about curing ailments to being more about preventive care and overall wellness.

Recent Sun Life Financial research shows that gen Y values group benefits less than older generations did at a similar life stage. While the importance of core medical and dental benefits remains, the gen Y focus is more on paramedical and lifestyle.

Gen Yers also have a greater attitude of entitlement toward their benefits than older generations, with many gen Y employees making a concerted effort to max out their discretionary paramedical coverage.


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Employee Benefits

Many employees place almost as much value on workplace benefits as

they do on salary. A recent survey asking Canadians if they’d forgo their Benefits for a $20,000 raise, 56% said they’d keep their benefits.

Health, dental and life-insurance coverage are typical core benefits, but

packages could include everything from disability and critical-illness

insurance to employee assistance and wellness programs.

“To attract and retain good employees, organizations must provide

competitive benefits,” Providing a comprehensive employee benefit

and insurance programs simply become a cost of doing business.


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Employee Benefits

Lifestyle accommodation benefits, such as flexible work arrangements,

personal and professional growth opportunities, work/life balance options,

wellness programs, flexible work hours additional vacation and other key

reward elements that support the company culture, such as green benefits

(i.e., benefits that support pro-environmental behaviour, such as transit passes

and increased telecommuting).


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Legislative Update

AODA – Accessibility for Ontarians with Disabilities Act .

Bill 168 Workplace Violence & Anti-Harassment

Bill 132 Independent Investigations for Workplace Violence & Anti-

Harassment

OH&S Worker & Supervisor Awareness Training


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Hiring Incentives

Abilities Connect Fund

If you are hiring postsecondary students or recent graduates with a disability, you may be able to apply for a wage subsidy of up to $20,000 and for training and assistive device subsidies of up to $3,000

Apprenticeship Training Tax Credit

Your Ontario business may be eligible for a tax credit up to $5,000 per year, to hire and train an apprentice in certain skilled trades. The maximum credit amount is $15,000 over a 36-month period.

Co-Operative Education Tax Credit

The Co-operative Education Tax Credit is a refundable tax credit. It is available to employers who hire students enrolled in a co-operative education program at an Ontario university or college.

The tax credit is based on salaries and wages paid to a student in a co-operative education work placement. Corporations can claim 25 per cent of eligible expenditures (30 per cent for small businesses). The maximum credit for each work placement is $3,000. Most work placements are for a minimum employment period of 10 weeks up to a maximum --of four months.


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Hiring Incentives

Youth Job Connection

Youth Job Connection offers intensive, specialized support to youth between 15 and 29 who are not in work, school or training and who face complex and multiple barriers to employment including:

• poverty

• homelessness

• mental health issues

Aboriginal youth, recent immigrants, youth living with disabilities, youth who have limited work experience and youth who have low levels of education or literacy might also benefit from Youth Job Connection.

The program provides:

• at least 60 hours of paid training to prepare youth for the workplace

• jobs for up to six months, with support and funding for employers

• mentorship, coaching and help with school and work transitions after the program ends


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Millennials

Value independence but need some supervision

Look for new challenges

Challenge the status quo

Want the job of their dreams not a good job

Want the opportunity to make an impact

Fear boredom more than anything else

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Strategies for Managing

Millennials

Demonstrate the stability and long-term value of your organization,

and also show how your organization is flexible and filled with

learning opportunities for them

Provide work schedules that help them build careers and families at

the same time

Make groups and teams are part of their job

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Strategies for Managing

Millennials

Demonstrate the stability and long-term value of your organization,

and also show how your organization is flexible and filled with

learning opportunities for them

Provide work schedules that help them build careers and families at

the same time

Make groups and teams part of their job

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Summary of Work Characteristics

Traditionalists Boomers Xers Millennials

Practical

Always at work

Optimistic

Want recognition

Sense of entitlement

Skeptical

Confident and

independent

Hopeful and optimistic

Unwillingness to

commit

Patient, loyal and

hardworking

Difficulty with change

Teamwork and

cooperation

Do not easily accept

change

Objective, sense of

right and wrong

Self-reliant and

techno literate

Adaptable to

change

Immediate

gratification

Meaningful Work

Moral mindset

Social activism

Subjective view of

reality

Respectful of authority Ambitious

Physical health

Risk-taking

Want recognition

Value diversity and

change

Globally connected

Rule followers

Rewards later

Prefer Structure

Workaholic –”Thank

God Its’ Monday”

Balance work

and life

Technology savvy

Immediate

responsibilityWWW.INTEGRALHRSOLUTIONS.CA 28

Managing a Multi-

Generational Workforce

Differences do indeed exist…

We need to …

DEAL WITH THEM!

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Top 10 Strategies for Managing

Millennials

10) Increase responsibility. Millennials thrive when given real

responsibility. It gives them a sense of ownership, while making them

feel connected and valued by the organization. Help them see the

big picture, then let them run with it. Talk about the successes your

company has had in this area when interviewing potential

candidates.

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Millennials

9) Be a mentor. Millennials have grown up with an abundance of

role models—from parents who worked full time and still attended

every soccer match and dance recital to the latest batch of reality

stars.

If you want to get the best out of the Millennials, you have to invest

in them. You have to give them a mentor to teach them how to

navigate the adult world.

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Millennials

8) Acknowledge accomplishment. Millennials have been

encouraged by parents, teachers and coaches from an early age.

They grew up on a reward-based system and are used to being

recognized for hard work and achievement. So a little overt

recognition will go a long way. J

Justyna Czubak, author of “Millennial” Learning: On Demand

Strategies for Generation X and Beyond states: “This is truly the on-

demand workforce. They value speed, efficiency, gratification and

results… They want instant feedback and rewards, so be sure to let

them apply new knowledge immediately, and let them know how

well they've performed.”

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Millennials

7) Work together. Millennials love working in teams. Teamwork was

an important element to the Millennials’ upbringing. From preschool

onward Millennials were encouraged to work in groups and as a

result, they have developed strong team building skills and peer

bonds. They prefer groups to individual endeavors. As they enter the

workforce, one of their greatest strengths is the ability to collaborate

and generate a host of new, creative ideas. So, mix them in with

your more seasoned staff—you will likely experience a whole new

energy.

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Millennials

6) Listen to them. Millennials have grown up with loving, attentive

parents who value their opinions and give them a voice. As a result,

they have been encouraged to think differently and bring

confidence and a fresh perspective to the workplace.

Andrew J. Chernin author of Managing and Motivating Millennial

Generation Talent says: “I honestly believe these young 21st century

employees can to take us beyond the deficiencies in our industrial

age carrot-and-stick workplace practices. Leaders can help by

listening more carefully to the values and convictions that motivate

their complaints. But more importantly, leaders must find ways to

show a lot more faith and trust in this next generation of extremely

smart, highly-skilled, thoughtful and kind-hearted young working

men and women.”

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Millennials

5) Life/Work balance. To Millennials, work is only one part of a well-

rounded life. Having the label of the busiest generation ever, they

play sports, volunteer in the community, participate in clubs and

don’t let work take priority over those things. They have seen

generations before make significant family and life sacrifices for work

and don’t want that for themselves. They will put in a 60-hour work

week to get the job done, but not every week.

Sarah Chuchman, head of diversity at PricewaterhouseCoopers

states: “We firmly believe that promoting work-life balance is a

‘business critical’ issue and not simply the right thing to do. Profitable

growth and sustainable business depends on attracting and

retaining top talent and we know, from our own research and

experience, that work-life policies are an essential ingredient of

successful recruitment and retention strategies.”

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Millennials

4) Make use of technology. Millennials have grown up with laptops,

mobile phones, Xbox and iPods. They created an entire language

for texting. They are incredibly tech-savvy and consider

communication through those enablers the norm.

“They’ll program your iPhone for you … they’ve never lived without

the Internet and are quick to adapt to new technology,” says

Stacey Woelfel, author of The Millennials. An employer that allows

employees to leverage technology and provides flexibility via the

option to work remotely, flex time or condensed work weeks will

have a greater likelihood of retaining Millennials.

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Millennials

3) Keep them challenged. Millennials have grown up participating in

multiple sports teams, student activities and social clubs. In her

article, “Managing Millennials,” Susan M. Heathfield says: “Millennial

employees are up for a challenge and change. Boring is bad. They

seek ever-changing tasks within their work. What’s happening next is

their mantra. Don’t bore them, ignore them or trivialize their

contribution.”

Millennials like constant stimulation, new projects and learning

opportunities. They lose interest if they feel their work is falling into a

routine. Millennials don’t complain about challenges, they seek

them.

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Millennials

2) Remember the golden rule. Treat others with respect. Respect is a

two-way street, and Millennials will contribute more time and effort

when they feel they are respected by managers and colleagues.

Even though they have not been in the work force as long, they

want their results to be appreciated and ideas valued … they want

a voice.

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Millennials

1) Have fun. Millennials believe that life is too short to take too much

too seriously. Ms. Heathfield continues: “Provide a fun, employee-

centered workplace. Millennials want to enjoy their work. They want

to enjoy their workplace. They want to make friends in their

workplace. Worry if your millennial employees aren’t laughing, going

out with workplace friends for lunch, and helping plan the next

company event or committee.” Millennials want to take one day at

a time and make the most of it.

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