How Do We Retain Employees Without Busting The Budget?

WE DON’T HAVE THE BUDGET TO BOOST SALARIES, SO HOW DO WE STILL RETAIN TOP EMPLOYEES?

Money is a convenient and overused excuse for turnover. It is rare that money alone causes the typical employee to leave. Most employees would willingly take a little less money than they could make somewhere else if they find other things they value more in their work environment—challenge, developmental opportunities, friendships with peers and supervisors, flexibility, appreciation and other real benefits.

Even in cases where employees are happy with the job, knowing that they are paid significantly below market can cause hard feelings and lead to turnover. Money is a natural and fundamental concern. As such, it often deserves serious, albeit painful, consideration and action by even the most cash-strapped organization.

Before you spend a penny on additional salary, benefits or other programs, it is important to find out specifically what is broken in your relationship with employees. If you don’t do this, you risk fixing the wrong things and wasting precious money, time, effort and good will. Here are a few data-gathering techniques that have worked well for me over the years:

Exit Interviews:
Identify what leads your employees to read want ads or accept a call from a recruiter in the first place.

There are a number of good questions you can use to get the information you need. One of my favorites is “Tell me about the three things you’d change tomorrow if you owned the company.” Another is “What things, if changed, would have prevented you from considering another job?”

An active and patient listener will glean a lot of good information from these questions.

Focus Groups and Surveys;
There are a number of decent employee-opinion survey products commercially available. Learning to do a focus group is easily within the grasp of most HR professionals.

Even so, I prefer using objective, experienced third parties to do this kind of work. Employees often feel that outsiders will keep their input more confidential and are less likely to have their feelings hurt by the results of focus groups than will company personnel. Focus groups and surveys done by outside personnel tend to get more forthright answers than those done by in-house personnel.

Retention Interviews;
Identify the employees you really, really need to keep. Sit down with them and discuss the company, their personal satisfaction, ideas to make their job even better than it is, and related topics.

Showing your interest is often rewarded with additional commitment and longevity.

One word of caution for all of these techniques: Don’t use them if you aren’t willing to listen to what people think. More important, if you are not willing to consider making changes, you are well advised not to ask. The “sugar high” of raised expectations quickly diminishes into all-time lows of employee morale if people think you aren’t listening.

You will find that the answers to turnover are not as elusive as you may think. They are, in reality, fairly basic. The suggestions you harvest from employees will help you design the practical solutions you need and can afford.

Regards,

George F. Mancuso, CPC CEO
Client Growth Consultants, Inc.

Why You Must Build Management Capability - Continued

This is part 2 of 2 of the article I posted on October 14, 2012

Actions to take
    Doing the bare minimum of training and development—just enough to keep your organization within the law, and to keep from being sued—can easily lead to behaviors that damage companies’ reputations. Once damaged, a reputation takes significant time and money to restore. Some companies never really recover. Before find yourself in a position of losing top talent or dealing with a weakened organizational reputation, you can invest in processes to improve the management capability in your organization.

    Human resource leaders are in an ideal position to influence all the elements needed to change the role of managers and to help their organizations build management capability. Many elements are needed, of course, but the first is the sponsorship of the most senior leaders to ensure buy-in and demonstrable support for the process. The rest of the elements involve your organization’s beliefs, values and culture. All of these are levers for change and are necessary to reinforce norms and expectations.

    Building management capability goes beyond training. It includes transforming the organization’s culture so that it values the role that management plays in attracting and retaining top talent and setting forth clear expectations for the manager’s role. As this model indicates, all organizations have an underlying set of beliefs about the importance of the manager. Organizations that have strong management capabilities believe that managers are critical for their ability to attract, retain and motivate employees. Strong beliefs influence the values of an organization, and consequently, culture.

    Each of the levers of change in the model represents an area that organizations must consider if they want to build strong management capability. Just focusing on one lever of change will not bring about lasting change in management capability; the current culture will overwhelm small changes. By focusing on numerous change levers, organizations can modify the culture and create long-term change. Briefly, the levers represent the following considerations:

·         Leadership: An organization’s leadership must both believe in the value of the role that managers play and must lead by example.

·         Communication: The leadership team must consistently communicate the importance of the role of the manager to the organization and its ability to achieve high performance, attract talent and retain it.

·         Competencies: Management competencies must be assessed and developed. Entry into a management role must be predicated on an appropriate, although not necessarily perfect, set of skills.

·         Measurement and rewards: Any effective strategy must be integrated into the scorecard. It must be measured and rewarded.

·         Structure and symbols: The role of a manager must be structured so that the manager can spend sufficient time with direct reports. The term "manager" must mean something in terms of role expectations.

    By focusing on these levers of change, the organization will develop new norms and expectations for behavior. The organizational beliefs regarding the management role will actually conform to what the levers of change are encouraging: a belief that managers’ roles do make a difference.

Leadership first: showing the way
    Levers for change begin with leadership. Leadership sets the tone and shows the way. How your leaders think will cast the mold for the rest of the organization.

    It must be clear to others that your organization’s leaders believe that management capability is an asset worth time and resources. Where leaders demonstrate this through their own behaviors, the organizations will have corresponding success. Having leaders publicly recognize individuals for outstanding team management (as opposed to personally exceeding business goals) will set the tone for the importance the organization places on the role of the manager in delivering results.

    When leaders spend time with their direct reports, setting clear goals and expectations, providing feedback and actively working to build bench strength in the organization, they are setting expectations for how others will act. Take Jack Welch during his GE days. He spent a great deal of his personal time both developing his own successor (I’ve preached for years that you should always be training your replacement) and developing leadership capability throughout the organization by participating the GE’s management development programs. As a consequence, GE is constantly cited as having one of the best leadership development programs in the world. This happened because the senior leadership believed in the value of its leaders and made investments to insure they could deliver their maximum capability.

    Also, leaders are the ones who primarily create an organization’s fundamental beliefs, values and culture. Where leaders go astray, organizations often follow. Creating a powerful culture takes time. But leaders can play a powerful role in establishing the outward signs of culture and behaviors that they both embody and endorse.

Communication: keeping everyone on the same page
    Organizations tend to undervalue communication. But communication plays a powerful role as the vehicle through which leaders demonstrate and publicly recognize the desired behaviors in the organization. How leaders talk about managers sets a clear message for what is expected in the organization. Strong communication systems can help organizations build strong cultures and enhance performance.

Competencies: The essential building blocks
    Identifying the critical competencies that make managers successful in your organization is the first step in creating the new manager role. New managers who are hired and current employees who are promoted into management roles must be selected because they have the capability to deliver on key functions of this role. These competencies include such skills as setting goals that fit the business strategy, providing coaching and feedback to others and helping employees understand how they fit into the big picture.

    Often promotions are given because someone is a good individual contributor. Good technical skills are a far cry from good management skills. We need alternative career structures if the only way to move up in the organization is to become a manager. Not all great individual contributors make great managers. By having management competencies defined within an organization we can also coach and develop individuals on how to improve in these specific areas.

Measuring, rewarding and reinforcing
    It’s a cliché, but it’s true: That which gets measured and rewarded gets done. If you don’t include management competencies and results for such areas as reduction in turnover or developing staff to improve organizational bench strength in performance appraisal systems, managers will not focus on these issues. Organizations that reward their managers for being good managers will stand the greatest chance of building strong management capability over time. Rewards do not need to take the form of money. In fact, simple public recognition of strong management skills sends a message to the rest of the organization: Managers are important to us.

Organization structure: the key symbol
    When organizations design jobs so that managers must spend 90 percent of their time doing non-management work, we send a very clear message about how we view the management aspects of a manager’s role: They are not important. We need to redesign organizational structures to support managers so they can truly manage the talent within the organization.

    By involving your leaders, crafting key messages, developing managers and examining the current messages managers receive about their role in managing others, HR leaders can change how managers are viewed, and how they view themselves.

    The process of building better managers is not fast or cheap. But the rewards can be substantial and well worth the effort.

Regards,

George F. Mancuso

George F. Mancuso, CPC 

Why You Must Build Management Capability

(part 1 of 2)

In the past, organizations have clung to the belief that as long as they had competitive products and services, they could enhance their performance by hiring strong leadership and top talent. While this focus has worked in some cases, in today’s highly competitive labor market—and yes, it is going to get much worse—organizations competing for top talent may be missing the essential managerial skills and processes needed to succeed over the long term.

    Today’s Generation X employees have much higher expectations of what managers should do to support them compared with the prior generation. Furthermore, the new entrants into the workforce, known variously as Generation Y, Millennial or Generation Next, have still greater needs for immediate feedback and development. These young workers are accustomed to praise, reinforcement and time to develop their interests and skills. How can organizations capture and retain this new talent, as well as slightly older up-and-coming leaders?

    Research suggests that most organizations neglect the role of managers, undervalue it and therefore suffer from a lack of strong management capability.  Many valid surveys’ indicates that employees who plan to stay with their current companies are twice as likely as employees who say they might or might not stay to report that their managers recognize their talents and encourage them to use those talents to the fullest extent.

    I would say that the trend that is emerging is not pretty. Today’s managers are also individual co se today’s employees want more from their managers and workplaces, not less. And they are willing to walk out of your workplace if they don’t get it.

    While employees are hungry for praise and eager to get help expanding their capabilities, there is, unfortunately, a corresponding capability gap among managers to give them what they need. This deficit exists for many reasons, including:

Years of downsizing means companies expect more from fewer employees. There simply is not enough time for managers to devote to mentorship and employee development.

·         Insufficient skills. Managers don’t know how to provide feedback and develop people.

·         A dearth of rewards. Managers are rewarded based upon individual contributions and achievements, not their management skills.

·         The mistaken belief that "one size fits all." The same rewards approach won’t motivate everyone.

·         Organizations do not place a high enough value on the role of the manager.

Employees don’t leave companies; they leave their managers (I’ve said this time and time again)
    Employees want managers who will provide goals and direction, feedback and coaching—and who recognize and reward them for good performance. Yet research indicates that managers are not delivering on these expectations. One possible reason is that managers’ roles are not designed to focus on managing people. Most managers spend 90 percent of their time on technical and administrative tasks and only 10 percent of their time on activities related to managing and developing the people who report to them.

    There is a wealth of research indicating that management behavior is a key factor in retention. This is nothing new. Recent research has consistently shown that dissatisfaction with one’s manager is a top reason for leaving the organization.

    More recently, three different research studies—in 1999,. in 2000 and in 2003—examined the factors that predicted whether employees would stay with or leave their current organizations. Some of the most commonly found items predicting intention to leave were:

·         Insufficient feedback and coaching.

·         Insufficient learning and development opportunities.

·         Insufficient reward and recognition for their work.

·         Insufficient sense that their organization values them.

    Management is responsible for delivering on each of these job factors. No one else can affect how an employee feels as dramatically and tangibly as an employee’s immediate manager. The most effective managers are those who know their employees’ strengths and development needs so well that they know which assignments to give based on balancing both organizational needs and those of the employees.

    Coaching and feedback make up one area that is receiving the most attention in organizations today. Employee survey results in company after company are showing that employees want and expect feedback. Research conducted with Gen Xers tells us that this age group not only expects feedback from their managers, but demands it. The Millennial Generation is even more voracious in its need for coaching and input.

    Finally, people want to know that they are appreciated when they do a good job or put in extra effort. Good managers praise employees in ways that raise self-esteem and commitment to the organization. Poor managers just expect it all, and, as a consequence, praise nothing. What they really get is turnover, and lots of it. And then they get less productivity out of the people who do stay.

What actions to take?  Watch your Sunday (October 21, 2012) email for some of the answers

Regards,

George F. Mancuso

George F. Mancuso, CPC

Talent Asset vs. Tenure Asset - A Lesson In Employee Retention

Talent Asset vs. Tenure Asset – A Lesson in Employee Retention

“…the only thing worse than an employee who quits is an employee who quits and stays!”

Talent and Tenure are not necessarily two assets that go hand in glove.  Tenure many times is associated with loyalty and Talent many times is associated with achievement, maybe even over achievement.

Which would you rather have in your organization?  A long time employee who is an under achiever or a less tenured employee who always goes the extra mile to exceed goals and expectations?  Under achievers wear different looks, and they include complacency, lack of performance, pot stirrer, a thorn to everybody around him/her.

When it comes to retention, please allow me to make this bold statement that I hope you will digest as it pertains to yourself and/or your organization;

“IF YOUR ORGANIZATION MISINTERPRETS OR COMPLICATES TALENT ASSETS AND TENURE ASSETS AS ONE, YOU ARE PROBABLY ON A TROUBLED PATH IF YOU HAVEN’T ALREADY TRAVELED IT.”

Valuing achievement, dedication and contribution over just valuing tenure is the message I’m trying to instill in you today.  And please understand that I’m not against Tenure Asset employees as long as their contributory factors remain as high as those of Talent Asset employees.

“TENURE AS A BUSINESS PRACTICE IS A FLAWED BUSINESS PHILOSOPHY!”

    a.)   Tenure Can Overpower Talent:  As an example, when a company promotes based on tenure instead of merit/performance/achievement etc., the company loses its ability to influence the intrinsic talent within.  Morale is affected, performance is affected and certainly turnover is affected.

    b.)   Tenure Impedes Change and Destroys Innovation:  The concept that “we’ve always done it this way takes over”. Complacency breeds complacency.  Doing it the same old way just because we are comfortable in doing it the same old way is part and parcel the crux of this Flawed Business Philosophy!

    c.)    Tenure Breed Destruction and Complacency:  When I view an employee who has been on the payroll for a very long time and mostly in the same role or capacity, I find that underneath the exterior is an employee who does mediocre work.  Even though their exterior “look” is that of an innovator, change maker, goal achiever, the underlying fact remains that most are just marking time.

So let’s cut to the chase…an employer needs to maintain a defined path or even prejudice towards performance.  Reward talent, initiative, innovation, loyalty, attitude, creatively, work ethic, contribution and leadership ability.  DO NOT reward Mediocrity, Complacency, Lip Service, Lack of Drive or Determination.

As an Employee Retention Specialist, I can help your company get onto the right track.  Employee Retention is all about people and people is what I do best!  Tenure Assets can be rejuvenated and Talent Assets can be directed to achieve even great levels of expectations.

So if you don’t plan to act upon this newsletters message, then kindly ask yourself, what is the real cost to my bottom line?

 Regards,

George F. Mancuso, CPC, CEO

Employee Retention Specialist

Client Growth Consultants

Grinnell, IA

www.ClientGrowthConsultants.com

What Prevents Highly Qualified Candidates From Becoming Gainfully Employed?

Many candidates have complained to me over the years about “bait and switch” tactics to screen them out of an active candidacy because of a disability, minority or seasoned candidate status.

My advice to you is the same as it is to all of my potential candidates.  In order for me to present you as the “most place-able candidate” or better said……in order for YOU to prepare yourself to become the most place-able candidate it all comes down to the following; SKILLS, STABILITY, EXPERIENCE AND ATTITUDE

A.            All companies ask me for the “skill set” first.  If you don’t match the qualifications, why would I try to force a square peg into a round hole?  All it does is offer frustration and a set up for a failure.

B.            Job hopping is a no-no.  A couple of years ago I read an article that says the Generation X & Y employees will change jobs 26 times in their career path.  This is an atrocious goal in life. I hear from hiring managers, “….why doesn’t he/she stay any longer than 2 years at any given job?”  And I rhetorically respond, “Good question, why don’t they?”

C.            You must learn your trade and then relearn your trade every day.  Our world moves fast and change is a common word in most growing business environments.  If you don’t have the skill sets required by an employer it probably won’t be a match, no matter how hard you try. What did you do in the last 12 months to improve yourself?  Remember that YOUR resume is only a job description of who you were.  You must be prepared to demonstrate to a prospective hiring manager what you plan to be and how your presence can impact their company in a positive way!

D.            There are no longer any “GIVE-ME’s” in this world.  Having an attitude that the new employer or current employer “owes you” is a destination to nowhere.  It all begins with you the employee.  Why fall into an impossible stereotype?  Why not demonstrate your qualifications by example?  My grandmother used to tell me, “deeds not words!”

When I speak with employers about employees they have terminated I hear, “they just acted like they didn’t want to be here; or he/she stood around with his/her hands in their pockets waiting for ME to do it; or He/she never contributed to the conversation, never offer good solutions to problems; or when the five o’clock buzzer rang, they were out the door like a shot.” 

All these actions demonstrate why an employer wouldn’t want to keep an employee.  And if you fit into these categories, change or the results will be the same in the future for you.

Now from the management or hiring side of these issues I suggest the following;

1.            Start looking at candidates from what assets and value that they bring to the organization.

2.            Look at candidates with this thought, “if he/she has only five years left to work, how can we empower them to allow us to tap into their knowledge to grow the people in this department or company?”

3.            Become known as a company that is a champion of PEOPLE. This will probably include soul searching and making decisions that you have probably not made in your “job hiring” past.

4.            The results will be that you will have a work place that people will WANT to work and the word will spread and it will positively affect your sales and bottom line.
5.            If one of your friends or parent was noticeably older than you or walked with a disability or had a different color of skin, would you tell him/her not to come to your house because you didn’t want the neighbors to know that you associate with “those types” of HUMAN BEINGS?  I think not, so why does it in happen in business?

6.            QUALIFIED candidates will reward you, the company and their co-workers once given the opportunity to shine.

Go forth and make this a tremendous week for you and everyone around you!

Regards,

George F. Mancuso, CPC, CEOClient Growth Consultants, Inc.