high impact hr in partnership with...

SO-002

High Impact HR StrategiesHigh Impact HR High Impact HR StrategiesStrategies

Vancouver Vancouver –– May 25, 2005May 25, 2005Ottawa Ottawa –– May 31, 2005May 31, 2005Toronto Toronto –– June 2, 2005June 2, 2005

In partnership with

SO-002

High Impact HR StrategiesHigh Impact HR High Impact HR StrategiesStrategies

Dr. Shawna ODr. Shawna O’’GradyGradyQueenQueen’’s School of Businesss School of Business

© Shawna O’Grady, 2005

OverviewOverview

Selecting and retaining the best Selecting and retaining the best

Succession planning and talent managementSuccession planning and talent management

Coaching through segmentation Coaching through segmentation

Unleashing the passion and spirit of your Unleashing the passion and spirit of your peoplepeople

SO-002©Shawna O’Grady, 2005

SO-002

Selection and Retention

©Shawna O’Grady, 2005

War For TalentWar For Talent

Economy growthEconomy growth

Massive retirements in the next five yearsMassive retirements in the next five years

Demographic changes Demographic changes

By 2016, annual growth in the labour force will By 2016, annual growth in the labour force will be near zerobe near zero

58% of Canadian employees are open to move 58% of Canadian employees are open to move to other organizations (Conference Board of to other organizations (Conference Board of Canada 2005)Canada 2005)


Do you have an integrated Do you have an integrated strategy for selecting, strategy for selecting,

retaining, and managing retaining, and managing talent within your talent within your

organization?organization?


Why Is Selection Important?Why Is Selection Important?

Select the best, and you will Select the best, and you will eliminate ninety percent of eliminate ninety percent of your performance problemsyour performance problems


Why Is Selection Important?Why Is Selection Important?

High performing organizations use selectivity in High performing organizations use selectivity in recruitment and selectionrecruitment and selection

An organization can train for skills and An organization can train for skills and knowledge, but it should select for core traits knowledge, but it should select for core traits and attitudesand attitudes

TwentyTwenty--five years of research and experience five years of research and experience have proven that there are significant differences have proven that there are significant differences between superior and average performersbetween superior and average performers


Productivity differences between average performers andProductivity differences between average performers andtop 1% of all performers in the same organizationtop 1% of all performers in the same organization

For low complexity jobs (front line workers in a fast-food restaurant)

Top-level performer 50% more productive than average workers

For medium complexity jobs (production workers in a high-tech factory)


For high complexity jobs (an associate in an investment bank)


SO-002

Source: Journal of Applied Psychology


SO-002

Productivity differences between average performers andProductivity differences between average performers andtop 1% of all performers in the same organizationtop 1% of all performers in the same organization

For low complexity jobs (front line workers in a fast-food restaurant)


For medium complexity jobs (production workers in a high-tech factory)


For high complexity jobs (an associate in an investment bank)

Top-level performer 125% more productive than average workersSource: Journal of Applied Psychology


Gap between top 1% and Gap between top 1% and bottom 1%bottom 1%

For low complexity jobsFor low complexity jobs

For medium complexity jobsFor medium complexity jobs

For high complexity jobsFor high complexity jobs

SO-002

Gap between top 1% and Gap between top 1% and bottom 1%bottom 1%

For low complexity jobsFor low complexity jobs 300%300%

For medium complexity jobs 1,200%For medium complexity jobs 1,200%

For high complexity jobs unFor high complexity jobs un--measurably highmeasurably high


Predictive Validity of Main Predictive Validity of Main Selection MethodsSelection MethodsSelection MethodSelection Method Validity Coefficient (r)Validity Coefficient (r)

Assessment centresAssessment centres .65.65

Interviews (behavioural)Interviews (behavioural) .48 .48 -- .61.61

Work sample testsWork sample tests .54.54

Ability testsAbility tests .53.53

““ModernModern”” personality testspersonality tests .39.39

BiodataBiodata .38.38

ReferencesReferences .23.23

Interviews (nonInterviews (non--behavioural)behavioural) .05 .05 -- .19.19


Improving SelectionImproving SelectionUse a combination of selection techniques to increase Use a combination of selection techniques to increase effectiveness beyond the intervieweffectiveness beyond the interview

Ensure those using the techniques are trained Ensure those using the techniques are trained appropriately in specifics appropriately in specifics

WhatWhat’’s your Employer Value Proposition (EVP)? s your Employer Value Proposition (EVP)?

Identify the characteristics of star performersIdentify the characteristics of star performers

Only allow your top talent to attract talentOnly allow your top talent to attract talent

Craft your capture strategyCraft your capture strategy

Follow up & close the loop Follow up & close the loop –– measure your successmeasure your success


SO-002

HI POHI PO’’ssoror

PO POPO PO’’ss

Do You Have:Do You Have:


SO-001

What are you doing to talent proof your organization?


Performance Level Percentage Increase

Average PerformersTop Performers

3%5.1%

What message does this send?

Pay Increases For Canadian Pay Increases For Canadian EmployeesEmployees

SO-002

Source: Conference Board of Canada, 2005

Differential Prevalence

Nil.25% to 1.00%

1.10% to 3.00%Over 3.00%

30%19%37%14%

Median Differential = 1.25%

Compensation Increase Differential Between Compensation Increase Differential Between Outstanding and Satisfactory PerformersOutstanding and Satisfactory Performers

Source: Hay Management Consultants

SO-002

Retention Strategies

SO-002SO-002©Shawna O’Grady, 2005

Why Do Employees Leave?Why Do Employees Leave?

They have a poor relationship with their bossThey have a poor relationship with their boss

TheyThey’’re dissatisfied with their current jobre dissatisfied with their current job

They have a better alternativeThey have a better alternative

Why Do Employees Stay?Why Do Employees Stay?


Staying is not the obverse of leaving

SO-002SO-002©Shawna O’Grady, 2005

Why do People Stay?Why do People Stay?

ItIt’’s not whether people are satisfied or s not whether people are satisfied or dissatisfied thatdissatisfied that’’s the issue, its the issue, it’’s how s how integrated people are in their jobs that integrated people are in their jobs that often prevents them from leaving.often prevents them from leaving.


The Best Retention Strategies The Best Retention Strategies Focus on:Focus on:1)1) LinksLinks to othersto others

2)2) FitFit with the job & communitywith the job & community

3)3) SacrificesSacrifices theythey’’d have to maked have to make


CREATE LINKSCREATE LINKSCREATE LINKS

COACHESCOACHESCOACHES TEAM BUILDING

TEAM TEAM BUILDINGBUILDING

MENTOR SYSTEMS

MENTOR MENTOR SYSTEMSSYSTEMS

TIME OFF TO VOLUNTEER

IN COMMUNITY

TIME OFF TO TIME OFF TO VOLUNTEER VOLUNTEER

IN IN COMMUNITYCOMMUNITY

DESIGNATED ROLE MODELSDESIGNATED DESIGNATED ROLE MODELSROLE MODELS

CHOOSE CLIENTS

CHOOSE CHOOSE CLIENTSCLIENTS

PROVIDE INFO ON

COMMUNITY RESOURCES/ACTIVITIES

PROVIDE INFO PROVIDE INFO ON ON

COMMUNITY COMMUNITY RESOURCES/RESOURCES/ACTIVITIESACTIVITIES

DISCOUNT ON HOMES

PURCHASED IN NEARBY

COMMUNITY

DISCOUNT ON DISCOUNT ON HOMES HOMES

PURCHASED PURCHASED IN NEARBY IN NEARBY

COMMUNITYCOMMUNITY


ENSURE FITENSURE FITENSURE FIT

PERSONALITY TESTS

PERSONALITY PERSONALITY TESTSTESTS

FLEXIBLE SCHEDULESFLEXIBLE FLEXIBLE

SCHEDULESSCHEDULES

JOB SCULPTING

JOB JOB SCULPTINGSCULPTING

35-HOURWORK WEEK3535--HOURHOUR

WORK WEEKWORK WEEK

TELECOMMUTINGTELECOMMUTINGTELECOMMUTING

CAFETERIA STYLE BENEFITS

CAFETERIA CAFETERIA STYLE BENEFITSSTYLE BENEFITS

REALISTIC JOB PREVIEWS

REALISTIC JOB REALISTIC JOB PREVIEWSPREVIEWS


INCREASE THESACRIFICE

INCREASE THEINCREASE THESACRIFICESACRIFICE

MINI-SABBATICALS

MINIMINI--SABBATICALSSABBATICALS MASSAGESMASSAGESMASSAGES

EVENT TICKETSEVENT EVENT

TICKETSTICKETS

COMPANY VEHICLES

COMPANY COMPANY VEHICLESVEHICLES

CONCIERGECONCIERGECONCIERGE

EXERCISE FACILITIESEXERCISE EXERCISE

FACILITIESFACILITIES

CHILDCARECHILDCARECHILDCARE

TRAINING AND DEVELOPMENT

TRAINING AND TRAINING AND DEVELOPMENTDEVELOPMENT

OFFICEDECORATED

OFFICEOFFICEDECORATEDDECORATED


You Need To Know:You Need To Know:Who quits and why?Who quits and why?

Industry quit rates?Industry quit rates?

Who stays?Who stays?

Data segmented by employee group so you can Data segmented by employee group so you can develop focused strategies that respond to the develop focused strategies that respond to the unique concerns of targeted employee groupsunique concerns of targeted employee groups

Because poorly focused retention strategies (i.e. Because poorly focused retention strategies (i.e. acrossacross--thethe--board raises) may do as much to board raises) may do as much to promote the retention of poor performers as they promote the retention of poor performers as they do to promote the retention of high performersdo to promote the retention of high performers


Coaching for Success


CoachingCoaching

75% of performance comes from what 75% of performance comes from what happens after the goals are sethappens after the goals are set

Should be a dayShould be a day--toto--day activityday activity

Employees accept suggestions for improvement if they Employees accept suggestions for improvement if they are given in less concentrated formare given in less concentrated form

Employees want feedback that is simpler and given more Employees want feedback that is simpler and given more oftenoften

Studies of the learning process show that feedback is less Studies of the learning process show that feedback is less effective as more time is allowed to elapse between the effective as more time is allowed to elapse between the performance and the feedbackperformance and the feedback


Distinguishing Characteristics Distinguishing Characteristics of a Coaching Styleof a Coaching Style

A strong developmental biasA strong developmental bias

Extensive personal contactExtensive personal contact

CaringCaring

SO-002

CoachingCoaching

CurrentPerformance

Coach

Nextstep

Nextstep

Nextstep

Nextstep

Nextstep

Nextstep

EndGoal

MaintainFocus

Know

Perform

ance goals

Know

SO-002

How many organizations How many organizations ““segmentsegment”” your workforce so your workforce so that you can focus investment that you can focus investment

on motivating the kinds of on motivating the kinds of behaviour changes that will yield behaviour changes that will yield

the highest returns?the highest returns?

SegmentingSegmenting



TRAINEE

MARGINAL

STAR

50

45

40

35

30

25

20

15

10

5

5 10 15 20 25

Potential

Prod

uctiv

ity

DEAD-WOOD

SO-002

WORKHORSE

PROBLEMCHILD


Where do you spend your time?Where do you spend your time?

Where should you spend your time?Where should you spend your time?

Segmentation helps you decide where Segmentation helps you decide where time should be spenttime should be spent


Spending Time on DeadwoodSpending Time on Deadwood

Is analogous to a game of golf when you Is analogous to a game of golf when you are asked, are asked, ““How was it?How was it?”” and you answer, and you answer, ““Good, except after the third hole when Good, except after the third hole when

Joe was struck by lightning Joe was struck by lightning -- then it was then it was --hit the ball ... drag Joe, hit the ball ... drag hit the ball ... drag Joe, hit the ball ... drag

Joe Joe …”…”


Segmenting at Campbell Segmenting at Campbell Soup Company Ltd.Soup Company Ltd.

High potentialHigh potentialPromotablePromotableExpandableExpandableValued professionalValued professionalSuitably placedSuitably placedFind a more suitable assignmentFind a more suitable assignmentOutplaceOutplaceToo soon to evaluateToo soon to evaluate

SO-002

Segmenting by Performance Segmenting by Performance and Attitudeand Attitude

PerformancePerformance

LoLo

Hi

HiAttitudeAttitude

Honey Bees

Bumble BeesDrones

S.O.B.s


Organizational Culture and Organizational Culture and DevelopmentDevelopment

Where you spend your time sends a powerful Where you spend your time sends a powerful messagemessage

When people know that their performance will be When people know that their performance will be noticed and rewarded, it is a tremendous motivatornoticed and rewarded, it is a tremendous motivator

What do you need to compete in the future, and What do you need to compete in the future, and does your organization have what it needs?does your organization have what it needs?

Trainees are the organizationTrainees are the organization’’s investment in future s investment in future capitalcapital


HRHR’’s Role in Succession s Role in Succession PlanningPlanning

HR helps build systems to support succession HR helps build systems to support succession planningplanning

HR initiates; executives/managers provide contentHR initiates; executives/managers provide content

Collect information verbally and faceCollect information verbally and face--toto--faceface

Ask questions directly and challenge executive Ask questions directly and challenge executive responsesresponses

Watch for leaders who Watch for leaders who ““Eat their youngEat their young””

Simplify the process for executives/managersSimplify the process for executives/managers


Succession Planning Key Succession Planning Key Success FactorsSuccess Factors

Owned by line management; supported by staffOwned by line management; supported by staff

Treated as part of the process used to run the businessTreated as part of the process used to run the business

Accountability and followAccountability and follow--upup

Understand the Understand the ““deal breakersdeal breakers”” in your organization in your organization ––behaviors every person in the job must display and embrace behaviors every person in the job must display and embrace to move ahead in your company to move ahead in your company –– these can make or break these can make or break someonesomeone

Every high potential person needs a plan of development Every high potential person needs a plan of development ––rotation and exposure rotation and exposure –– a mentor and a coacha mentor and a coach


SO-001

Unleash The Passion And Spirit Of Your People


Keep Your People HealthyKeep Your People Healthy1/3 of Canadians do not take their holidays; they miss an 1/3 of Canadians do not take their holidays; they miss an average of 8 vacation days per year (netting $8B in average of 8 vacation days per year (netting $8B in unused holidays annually) (2005 Expedia.ca/ Ipsosunused holidays annually) (2005 Expedia.ca/ Ipsos--Reid)Reid)

36% of Canadians are in contact with the office while 36% of Canadians are in contact with the office while awayaway

Chronic lack of sleep plagues our nation Chronic lack of sleep plagues our nation –– some of the some of the worldworld’’s most horrific accidents have been attributed to s most horrific accidents have been attributed to sleep debt (i.e. Exxon Valdez, Challenger space shuttle)sleep debt (i.e. Exxon Valdez, Challenger space shuttle)

Eventually, takes its toll in lack of productivity, creativity, Eventually, takes its toll in lack of productivity, creativity, work place accidents, time away due to stress and illness, work place accidents, time away due to stress and illness, and increased risk of deathand increased risk of death


Unleashing Passion and SpiritUnleashing Passion and Spirit

Job Sculpting Job Sculpting -- Assign people to work that Assign people to work that they find motivating they find motivating

Train & develop employees in their Train & develop employees in their strengths to world class performance strengths to world class performance

Promote teamwork and a collaborative Promote teamwork and a collaborative cultureculture


Thank you!Thank you!Dr. Shawna ODr. Shawna O’’GradyGradyAssociate ProfessorAssociate ProfessorSchool of Business, QueenSchool of Business, Queen’’s Universitys UniversityKingston, OntarioKingston, OntarioPhone:Phone: 613613--533533--23282328Email: Email: [email protected]@business.queensu.ca


high impact hr in partnership with...

Documents