witt/kieffer the people first approach a guide to recruiting, developing and retaining the right...
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WITT/KIEFFER
The People First Approach
A guide to recruiting, developing and retaining
the right people
Women In Development
Dana-Farber Cancer InstituteMarch 8, 2011
Jon Derek Croteau, Ed.D.
WITT/KIEFFER
The presentation
• Results! ROI! Why should I adopt The People First Approach?
• The problem: human capital management in advancement programs in colleges, universities and other nonprofits
• The solution: adopting The People First Approach
• The book and your questions
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The impact of adopting The People First Approach
• If you truly adopt this approach, you will see results!
Decreases in turnover and the debilitating costs associated with it
Increases in professional development achievements Higher employee satisfaction, increased loyaltyElevated performance expectations and standardsMore learning opportunities and cross-departmental collaboration
Increases in moraleIncreases in productivityDecreases in hiring errorsEarned reputation as a professional destination of choiceDecreases in recruitment costs and unfilled positionsIncreases in retention
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The impact of adopting The People First Approach
• Forbes Fortune 500 companies that engaged in what they called “progressive” human resource practices exceeded their counterparts’ growth in sales by $190 billion and their profits by $56 billion (Raelin, 2003)
• You’ll have a more efficient, more effective, more engaged workforce
• 80% of the progressiveness factors involved no cost at all: rather, they just entailed a focus on people-oriented leadership (Raelin, 2003)
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The impact of adopting The People First Approach
• “I have seen tremendous improvements in the recruitment process and the training/orientation process for new employees, as well as the professional development of current staff members. The people department has created a safe place for staff to discuss possible growth opportunities, and management training. All of these factors have helped us reach a new level of cross-unity and a greater sense of accomplishment within the division.”
Vice President
• “Our division is rapidly growing and is in a hurry to reach its fund-raising goals. The people department stepped in to fill many gaps that are normally neglected: training needs, coaching for new and current managers, and an ear for the vice president to know about staff morale.”
Director of Major Gifts55
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The problem in higher education, healthcare and other nonprofits
• Decades of human capital research and practice in corporations; creatively “invest” in your people and your organization will reap the rewards
• Little to no research on human capital investment in institutions of higher education and other nonprofits; we’re way behind and it is showing
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The problem in the advancement profession
• Average tenure of entry level advancement officer is 18 months
• Average length of employment for seasoned advancement staff is 2.5 years
• 41% of advancement staff has fewer than five years of experience
• 70% of gift officers interviewed spent fewer than five years fundraising for that institution
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• Increase in the number of nonprofits; 300,000 in the last decade
• 50% of the baby boomers eligible to retire in the next decade
• The number of jobs versus the number of qualified people; supply and demand
• In this economy turnover has slowed, but not that much; people are just a tad more cautious to jump as quickly; the same problems exist
•Will you be ready when the economy improves again?88
The problem in the advancement profession
WITT/KIEFFER
The problem in the advancement profession
• Randy Helm “…turnover…among [advancement] staff can set back fundraising progress months or even years.”
• The Cost of Turnover =
1.5 times annual compensation for employees 2.5 times annual compensation for managers or sales (fundraising) positions
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The problem in the advancement profession
• The Cost of Turnover (Bliss, 2006) Recruitment costs Training costs Lost productivity costs New hire costs Lost [fundraising] costs
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• Edward G. Thomas (1995) 50% of turnovers were in position for less than 5 years 48% left to achieve higher rank, opportunity for advancement, and salary
• This was 16 years ago: what have you done to make changes?
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The problem in the advancement profession
WITT/KIEFFER
• 2007 Eduventures Study 600 advancement officers at 30 different institutions 40% said that they would leave their current position for greater opportunity
49% of the highest performing group said the same thing
•I guess we have not done enough…
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The problem in the advancement profession
WITT/KIEFFER
Change your way of thinking; lead the way
• With return on investment and turnover being scrutinized more than ever, advancement programs must, and can lead the way
• Stimulate further research in best practice human capital management as a measure of organizational effectiveness in higher education institutions
• Alter the way administrators think about their people—adopt The People First Approach
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Change your way of thinking; lead the way
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• “Today, your most critical assets are [your] people, not [your] property. Outstanding people give you and your organization a competitive advantage.”
-Beverly Kaye & Sharon Jordan-Evans (2005)
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What is human capital management in higher education & nonprofits?
• On feeling “valued”
Organizational commitment to its people Upholding the institution’s mission and values Community of the institution; working on a common goal Nurturance of the community Collaboration and collegiality Metaphors of love and family
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What is human capital management in higher education & nonprofits?
• On feeling “under-valued”
Poor relationship with or lack of respect for manager Lack of professional development opportunities Being paid below market Lack of career growth opportunities Lack of communication—not being informed bred feelings of un-importance
Not thinking that they are making a difference
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Human capital dimensions in higher education & nonprofits
• Dimensions created from research
Recruitment and Retention Communication Rewards—Cash Compensation Rewards—Non-cash Compensation Purpose, Collaboration, Community & Meaning Human Resource Competence
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Dimension 1 in higher education & nonprofits
• Recruitment and Retention
Recruiting and retention strategiesOpportunities for growth and advancement withinOrientation and professional training programsPeripheral rewards as motivators
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Dimension 2 in higher education & nonprofits
• Communication
Effective communicationSharing ideas with supervisors and senior managementSharing financial informationSharing strategic plans and goals
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Dimension 3 in higher education & nonprofits
• Rewards—Cash Compensation
Market pay Pay for performance Deferred compensation/403(b) plan
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Dimension 4 in higher education & nonprofits
• Rewards—Non-Cash Compensation
Paid Time Off (PTO)Tuition remissionFlexibility in hours, schedule, how to do workPersonal satisfaction—intrinsic rewards
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Dimension 5 in higher education & nonprofits
• Purpose, Collaboration, Community & Meaning
Importance of the missionService-oriented work (students, college, and
community)Stake in the success of the students/organizationFostering collegialityTrust in senior managementBelonging to the larger community
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Dimension 6 in higher education & nonprofits
• Human Resources Competence
Human resources’ role and purpose (transactional vs. transformational)Human resources technology
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Human capital management in higher education & nonprofits: conclusions
• Recognition for superior performance• Communication from senior management (honest and effective)• Sharing ideas with senior management• Professional development opportunities• Market pay and pay for performance• Learning and training opportunities• Connection to the mission and making a difference• Being part of a community
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Human capital management in higher education & nonprofits: conclusions
• MANAGEMENT, MANAGEMENT, MANAGEMENT• Poor manager: top reason why people leave their position
• 50% of worker satisfaction comes with immediate supervisor relationship• 25-year long Gallup Organization study found the relationship with supervisor determines length of stay• Train and invest in your managers on how to be effective• Leadership training and management development programs
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It’s not about money, it’s about a mindset and a leadership approach
• It’s about thinking differently about your investment in the right people
• It’s about focusing on the inexpensive practices people crave
•It’s about stewarding your best staff like your best donors
• It’s about saving you and raising A LOT more money in the long run
• It’s about allocating more of the current budget to support your people programs
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Adopting The People-First Approach
• Goal: transformational versus transactional
• Progressive human resources, organizational development/effectiveness, learning and development, recruiting and retention, career coaching and blazing career paths
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The People-First Approach
A guide to recruiting, developing and retaining the right people
Part I: The People First Approach
Part II: Human Capital Toolkit
Have you adopted The People First Approach? See how you are doing with your people management
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Adopting The People-First Approach
• What is human capital?Defining your most valuable asset
• What do your people think? What do they need? Recommendations for sound assessment
• Finding someone to do the workHow to create effective people programs
• Who are you? Who do you want to be? Developing vision, mission, and core values
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Adopting The People-First Approach
• The complicated compensation issue Maybe they don’t come for the money but it still matters
what you pay them
•Find the best and the best fit Critical steps to making the right hires for your culture
• Getting them up and running Simple steps to effective on-boarding and orientation
• After the honeymoon How to steward your staff as you steward your donors
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Adopting The People-First Approach
• Programs that motivate Building competency-based performance management
programs
• Individual performance plans Developing strengths while expanding competencies
• Give them what they want Building workforce muscle with a learning and development
program
• Blazing the trail Developing career paths and succession planning for your staff
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Adopting The People-First Approach
• Effective communication Strategies for an integrated and cohesive workplace
• Leadership inspires Ways to make your leadership more visible,
accessible, and trustworthy
• Measuring the return on your investment How do you know when you have been successful?
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The impact of adopting The People-First Approach
•“I went from managing 2 staff members to 19 in my new role here. I can’t put into words what a relief it is to have a people person staff member to depend on for staff development advice and assistance, and advice on best management practices. I have grown as a professional and I know several examples of staff members in my team that have grown because of the people department’s unique initiatives.”
Director of Alumni Relations
•“The human capital management team is an integral partner with major gifts in the recruitment, education, training and coaching of major gift officers. Through the efforts of the team, major gifts is able to grow its team strategically as well as grow the individuals within the team professionally. Both initiatives work to strengthen the goals of the campaign.”
Campaign Director
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The presenter
Jon Derek Croteau, Ed.D. Witt/Kieffer
Leaders Connecting Leaders585-662-5403
“Like” Dr. Jon Derek Croteau on Facebook
www.wittkieffer.com
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