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Chap 4. - ATTRACT AND KEEP THE RIGHT PEOPLE

Treat People Right!

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Treat People Right!

Treat People Right Principle #1

• Treat People Right Principle #1– “Organizations must create a value proposition

that defines the type of workplace they want to be so that they can attract and retain the right people.”

• The competition to hire and keep the best people is intense and fierce.

• ‘Keeping talent’ is becoming an expensive and time-consuming process.

• Hiring and retaining high-performing individuals needs to be based on intelligent strategies and implemented through effective practices.

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Treat People Right! Creating a Value Proposition

• An effective strategy for finding and keeping talent begins with creating a value proposition.

• Value proposition– a corollary of the mission statement– Supporting mission statement by focusing on

what the organization offers in order to attract and retain the right people.

• 7 Guidelines & Suggestions for effective value proposition

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Treat People Right!

• Align the Value Proposition to Your Strategy

– The value proposition must be designed to fit tightly with your business strategy.

– It needs to focus on enticing people who have the skills, knowledge, competencies, and personality to perform well and who can be motivated by the practices and programs your organization offers.

– In terms of Diamond Model, the value proposiotion must take into account the organizational factors and design elements.

– Ex) SWA, Intel, MS, Cisco, Sun Microsystems

Creating a Value Proposition

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Treat People Right!

• Design Rewards to Attract and Retain Employees

– The value proposition should include a reward system that attract and keeps the right people.

– The reward system must contain a mix of rewards that the workforce will value and respond to.

– The importance is that the rewards your organization offers is tailored to the people you need.

– loyalty contract :Traditional approach to keeping people for the right period

• Unproducive, making change difficult, not motivating employees to improve

Creating a Value Proposition

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Treat People Right! Creating a Value Proposition

• Design Multiple Value Proposition

– Organizations may need several value propositions in order to attract and retain individuals whose interests and needs vary greatly.

– For Core Employees• Value proposition with rewards building employees’ co

mmitment to the organization• Too much focusing on core employees can create a dy

sfunctional caste system → mobility between core and noncore

– For Short-term Employees• Ex) flexibility in work hours, assistance in job hunting an

d writing resume, cash compensation

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Treat People Right!

• Weigh Costs and Benefits

– Weighing the cost of rewards against the benefits in motivation and retention.

– Answers to the cost-benefit dilemma• Making some of rewards contingent on individual perfor

mance and organizational success financially.• Building a reward system including significant nonfinan

cial rewards whose costs are minimal but benefits are potentially high.

Creating a Value Proposition

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Treat People Right!

• Avoid Copying

– The most important measure of your proposition’s success is that it fulfills your organization’s specific business strategy, not that it resembles of imitates others.

– Ex) CEO workshop in the Silicon Valley, SAS Institute

• Be Sure You Can Deliver

– Whatever value proposition you create, you must be able to deliver on it.

– Failure to deliver on promises will result in high level of dissatisfaction, adversarial union relationship, and a host of other dysfunctional outcomes.

– Ex) dot-comes

Creating a Value Proposition

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Treat People Right!

• Assess Your Value Proposition Regularly

– Focusing on 4 groups of people

• Potential job applicants– By phone surveys to future employees

• Actual job applicants– Where they heard about company, which reward

attracted them..

• Current employees– By checking job satisfaction (through intranet)

• Former employees– Allowing to evaluate the organization with a

different perspective.

Creating a Value Proposition

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Treat People Right!

Best Practices to Attract and Retain

BestPractices

EmployeeReferrals

IndividualDeals

Realistic JobPreviews

Rerecruitingthe best

Scouting Talent

Holding ManagersAccountable

Turning the ValueProposition into

a Brand

Signature Extras

Using Technologyto Cast a WideRecruiting Net

Employmentcontracts

Moving the WorkTo the Workforce

Acquiring Companiesand Human Capital

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Treat People Right!

Turning the Value Proposition into a Brand

• Branding intentionally aim to create a strong, unique image that distinguishes your organization from others

Ex) Cisco systems : It emphasizes their leading-edge commitment to technology by requiring that all job candidates apply via its Web site

• How to develop a strong brand ?– Create a clear, positive image of your organization– Design an effective publicity and advertising program– Maintain a clear and consistent message during all recruiting

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Treat People Right! “Signature Extras”

• Signature Extras They can distinguish your company in the marketplace of employers

Ex) season tickets to sports events, sabbaticals, flexible work schedules..

• The smartest extras are those that not only give people something they value but also help them improve their knowledge and skills

Ex) a technology company in Silicon Valley gave stock options to its employees’ spouses

• Signature Extras..– can attract employees– establish organizations as desirable employers– if chosen well, they can add an aura to your company as

an exciting company to work for.

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Treat People Right!

Using Technology to Cast a Wide Recruiting Net

• Internet based systems, video conferencing, and advertising on national TV become popular recruiting methods for many organizations

• Web-based recruitment systems offer many advantages over traditional recruiting :– Help applicants self-asses whether they are right for the job– Help inform potential applicants about your value proposition– Make it especially easy for the internal movements of

employees to be dynamic and interactive– Meet the staffing challenges of managers who fill open jobs

• What requires to create a valid database?

The characteristicsof individuals

The characteristicsof jobs

Who have certain skills, knowledge, competencies

Identifying the skills, knowledge, competencies needed to do the job

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Treat People Right! Scouting Talent

• Human capital often makes the difference between success and failure in many businesses

• Many organizations need to aggressively pursue human capitals– Compiling their lists from talking to university researchers– Checking patents– Checking employment rolls of other companies– Attending professional meetings to see who is presenting

papers

• After this search, the companies develop a “hot list” of individuals

• The firms begin a selective recruitment process targeting the individuals

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Treat People Right! Employment Contracts

• Until the 1980s, most large companies used tacit or explicit loyalty contract it become much less common today

• Organizations will need to have several contract to handle the diversity of its employment relationships– One for managerial and professional employees– Other for nonexempt or hourly employees

• So, what replaces the loyalty contract? A written formal employment contracts including

- What they offer as an employer- What they expect from their employees

Be sure that the language of each contract is absolutely clear

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Treat People Right! Implication for Individuals

• Increasing focus of organizations on acquiring and retaining human capital can have significant benefits for individuals– Better position yourself– creating own value proposition

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Treat People Right! Implication for Individuals

• Better position Individual can better position yourself as an employee by learning about the value propositions organizations offer

• If organization’s value proposition is attractive to you– Visit an Internet chat room– Check to see the corporation is listed on any of the lists of

best places to work– meet existing employee : interview

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Treat People Right! Implication for Individuals

• If organization’s value proposition is attractive to you– Ask results of any attitude surveys Organization have

done– Ask ethical condition of a potential employer– Checking on the financial condition of prospective

employers • Job candidate needs to understand the economics of the

organization’s business and the direction that it may take with respect to both its business strategy and its technology

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Treat People Right!

Creating your own value proposition

• Creating own value proposition– Who you are? What you are seeking in an employment

situation?– Write out your personal Diamond Model– Take psychological tests or engage in objective

assessment activities – constructive feedback about your skill and knowledge

– Better understand the rewards that motivate you– Internship or temporary assignment – more choice

before selecting a single organization

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Treat People Right! Changing Jobs

• The end of loyalty contract– Don’t decrease your performance– Research your potential employer carefully

• Be sure to carefully manage your exit from your existing organization

• Talk about the positive things that have attracted you to another employer rather than to be negative about your current situation

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Thank you