HR Strategies Providing
Superior Return on Human
Capital Investments
Robert Ebers, President
Alyse Parise, Vice President
Presented to LISTnet HR SIG
January 9, 2002
© 2002
If you want 1 year of prosperity,
grow grain.
If you want 10 years of prosperity,
grow trees.
If you want 100 years of prosperity,
grow people.
- old Chinese proverb
© 2002
Purpose
Provide strategic context about how to
use “Smart HR” practices to build value
in your organization.
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Process
10 minutes
15 minutes
20 minutes
10 minutes
25 minutes
10 minutes
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Introductions and Overview
“Dumb” HR Practices
Strategic Employee Engagement
Strategic HR Context
"Smart HR" Practices
Summary and Close
Payoff
Information about how “Smart HR”
practices can reduce costs, improve
quality and increase value.
© 2002
We Help Leadership...
Align people with business strategies.
Deal with the "soft" factors driving
human performance.
We help managers deal with the toughest issue: their people.
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Our Expertise
Surveys and Assessments
Training and Development
Strategic Planning
Culture Change
Team Building
Coaching
© 2002
Who Needs Motivation?
NOT ENGAGED
ENGAGED
ACTIVELY DISENGAGED
Employees not engaged in their jobs.
Employees actively disengaged in their jobs.
Employees engaged in their jobs.
Source: Gallup Management Journal, 2001
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12 Simple Questions
Do I know what is expected of me at work?
Do I have the materials and equipment that I need in order to do
my work right?
At work, do I have the opportunity to do what I do best every
day?
In the past seven days, have I received recognition or praise for
doing good work?
Does my supervisor, or someone at work, seem to care about
me as a person?
Is there someone at work who encourages my development?
© 2002
12 Simple Questions (continued)
At work, do my opinions seem to count?
Does the mission or purpose of my company make me feel
that my job is important?
Are my coworkers committed to doing quality work?
Do I have a best friend at work?
In the past six months, has someone at work talked to me
about my progress?
This past year, have I had opportunities at work to learn and
grow?
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Adapted From: Sydney Yoshida on Quality
Iceberg of Ignorance
© 2002
Moments of Truth
Employee transactions involve a million
moments of truth where the firm creates
an impression that is favorable or
unfavorable...
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Costs of Low Employee
Satisfaction
Direct cost
Indirect costs much greater, for example,
Loss of discretionary behaviors:
Insight
Originality
Intuition
Judgment
Humor
Inspiration
Leadership
Friendship
“Silent Majority”
Cost of new employees and customers
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Why Bother with Satisfaction?
New employees are very expensive
Current employees are very valuable
Satisfied employees are very forgiving
Employees respond more strongly to how
you treat them than anything else
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Service - Profit Chain
“Smart HR” Practices
More Productive and Engaged
Workforce
Loyal Customers
Improved Business Performance...
© 2002
Sustainable Competitive
Advantage
“The ability to learn faster than your competitors may be the
only sustainable competitive advantage.”
Arie De Geus
People are the key to maximizing
shareholder value and increasing profits
in today’s economy.
© 2002
Why Employees
Leave or Stay
STAY
LEAVE
Top Three Non-CompensationRelated Programs High
Performers Say Attract & Retain
Top Three Reasons High
Performers Say They Resign
Opportunities for Advancement
79%
Job Redesign
69%
Learning New Skills in Current Job
65%
Dissatisfaction with Company
Management
Inadequate Opportunities for
Promotion
Dissatisfaction with Pay
Source: 1999 Strategic Rewards, Watson Wyatt
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56%
56%
50%
“Smart HR” Practices
Strongest Links to Financial Success
Collegial, Flexible Workplace
Communications
Prudent Use of Resources
Rewards and Accountability
Recruiting
Source: 1999 HCI, Watson Wyatt
© 2002
“Smart HR”: Collegial, Flexible
Workplace
Flexible work arrangements
Encourage teamwork and cooperation
Perks do not vary with position
High employee satisfaction
All employees on first-name basis
Low emphasis on titles
Source: 1999 HCI, Watson Wyatt
© 2002
"Smart HR": Communications
Easy access to communication technologies
Ample opportunity to give ideas and suggestions
Financial information is shared
Input into how work gets done
Business plans and goals are shared
Source: 1999 HCI, Watson Wyatt
© 2002
"Smart HR": Prudent Use of
Resources
Profit-sharing based on business unit’s success
Training even during unfavorable times
Training for advancement
Input into peer evaluation
Input into evaluating managers
Source: 1999 HCI, Watson Wyatt
© 2002
"Smart HR": Rewards and
Accountability
Stock plan options
Termination of unacceptable employees
Help poor performers improve
Top performers are significantly paid more
Positions paid above market
Link pay to business strategy
Link performance appraisals to pay
Profit-sharing linked to firm’s overall success
Source: 1999 HCI, Watson Wyatt
© 2002
"Smart HR": Recruiting
Hire well-equipped professionals
Link recruiting to business plan
Reputation as a desirable place to work
Hire well-equipped hourly new employees
Employee input on hiring decisions
Recruiting strategy for hiring critical positions
Source: 1999 HCI, Watson Wyatt
© 2002
3 Most Important People
Issues?
Leadership development
Motivational pay
Training and development of their
workforce
Source: Competing in a Global Economy 2001, Watson Wyatt
© 2002
Employee Commitment and
the Bottom Line
Implementing “"Smart HR"” practices
will create an energized, enthusiastic,
educated workforce.
These practices provide difference
between retaining a highly qualified
workforce or searching needlessly and
expensively for new talent.
© 2002
“Knowledge is the only
instrument of production
that is not subject to
diminishing returns.”
- J.M. Clark
© 2002
Peer Coaching: “Smart HR”
What “Smart HR” Goals would you like
to set for yourself?
What would it look like if you
accomplished those goals?
What next steps must you take to
accomplish your goals?
© 2002
Copyright Info
The contents, or parts thereof, of “Smart HR Practices,” are provided for review
purposes only and may not be reproduced in any form or by any means without written
permission from Impletec.
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© 2002
Dear All, Good afternoon, Some
of the slides here would be of
interest to you! Have a nice day,
Rajesh
kamath.rajesh@mahindra.com
© 2002