Welcome Back Employee Engagement Specialist Endorsement Day 4 Action Plan for Day 4 – Complete the Motivation Team assessment on at least 5 people. For each person identify the primary and at least one secondary motivator. – Have those 5 people complete their own assessment and compare your answers to theirs • Did you identify their motivators correctly? • Did it help you to determine how to provide additional motivation? – Use the HIT process with a small group to help determine the best solution for a problem Agenda Time Topic 7:30 – 8:00 Networking and Breakfast 8:00 – 8:10 Welcome and announcements 8:10 – 8:40 Discussion and review of assignments 8:40 – 9:45 Designing and Implementing a Balanced Scorecard 9:45 – 10:00 Break 10:00 – 12:00 Effective Reward and Compensation Programs 12:00 – 12:30 Lunch 12:30 – 2:15 Recruiting and Hiring Engaged Employees 2:15 – 2:30 Break 2:30 – 4:00 Recruiting and Hiring Engaged Employees 4:00 – 4:30 Review of day and assignments Developing a Balanced Scorecard What is a Balanced Scorecard? Page 4 A Balanced Scorecard: – Is a concept and tools by Robert Kaplan and David Norton – debuted in Harvard Business Review in 1992 "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events…. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation." – Allows managers to view critical operational factors and their inter-relationships with current and future performance in mind – Provides focus on organizational vision and long-term success What is a Balanced Scorecard? Adapted from Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January-February 1996): 76. What is a Balanced Scorecard? “Balance” comes from the ‘cause and effect’ nature of the tool Adapted from Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January-February 1996): 76. Why Implement a Balanced Scorecard? – Link’s Company’s Vision, Strategy, and Results – Align organization strategy with the work people do on a day-to-day basis – Line of Sight – Prioritize projects / initiatives Balanced Scorecard Institute Case Study - Why to Implement a Balanced Scorecard? Employee survey results showed: – The Company does not have: • easily accessible data • communicate monthly progress to all • a culture of “stretch” goals – Employees not aware of: • • • • • Company’s performance against Business Plan their own department or business’ performance to Plan their own performance against goals and objectives definition of “average” performance the metrics of “high performers” Adapted from ENSR balanced scorecard discussion Exercise: What’s Your Reason? Discuss why your company is interested in creating and using a balanced scorecard. The Evolution of a Balanced Scorecard Final tweaks to system Mgmt. review and approval 2 3 4 5 6 7 8 9 2/10 8/10 Idea for aligned metrics Team consensus on metrics Mgmt. accepts BSC 10 11 12 1 2 3 4 4/10 6-month IT build out Roll out to company Multiple iterations for readability and printability “Balanced scorecard structure may take 5-6 months to develop, with total completion in about 1 year” Balanced Scorecard Basics on Implementation, Valerie Pike The Development Process – Get enthusiastic support and commitment from top management – Carefully select the design team • Cross-representation • Get your IT support on board early – Determine what the true drivers of performance are • Enlightening process • Defines the “heart” of the organization • Focus in on ‘cause and effect’ relationships – Determining how to measure (would you like that in pounds, inches, pieces or adjectives?) – What are the design and functionality criteria? – Create consistent definitions Exercise: What are you measuring? – What are you currently measuring at your organization? – Should you be measuring other metrics? What are they? © The Employee Engagement Group All Rights Reserved Balanced Scorecard Data Breakdown Example Balanced Scorecard Overall Data Example © The Employee Engagement Group All Rights Reserved Balanced Scorecard Graphic Display Example #1 © The Employee Engagement Group All Rights Reserved Balanced Scorecard Graphic Display Example #2 Balanced Scorecard Example (Individual) Scorecard for: Bob Johnson Balanced Scorecard Definitions Example © The Employee Engagement Group All Rights Reserved Balanced Scorecard Example Balanced Scorecard Example © The Employee Engagement Group All Rights Reserved Balanced Scorecard Example © The Employee Engagement Group All Rights Reserved Balanced Scorecard Example © The Employee Engagement Group All Rights Reserved Exercise: What does your scorecard look like?? In your groups, design your scorecard: – What does it look like on the screen? – What graphics are used? – How is it made to be user friendly? Report back and begin to determine what your scorecard looks like To Buy or Build Buying – Pros • Off the shelf ready • Professional look and feel • May include design support – Cons • Maintenance comes from outside • Difficult to customize • Programming changes can be expensive • Needs tied to costs Building – Pros • Design and customize to your specific needs • Tie easily to your data • Changes done quickly at minim cost – Cons • Significant investment of IT resource(s) • May not have the ‘professional’ look and feel • Longer development time The Roll Out – Communication Plan (consider linking with our Communication Protocol) – Hold line managers accountable – Avoid over-engineering – Include training sessions The Maintenance – Yes, There are Costs – On-going investment will be different in every organization – In case study company’s case: • Manual HR and H&S input each month (sometimes a bottleneck) • Delays from chasing and “normalizing” international data • Data still requires QA by knowledgeable person to ground-truth – Constant communication and integration with internal processes – Ongoing IT support and maintenance to keep it fresh But ideally, the benefits greatly outweigh the costs Keeping it Vibrant – Reference in CEO communication (part of your Communication Protocol) – Use in quarterly operations review – Prominent place on intranet – Point employees there to answer their questions – Communicate positive trends visible on scorecard (and negative trends as an “early warning system”) Page 8 - 22 Recommendations – Before anything else, seek management buy-in! – Make sure someone owns it – Keep it simple and focused • One screen / one page / graphics – Make it relevant and understandable to all employees – Treat it as a learning tool – not a control tool! “Organizations that have not involved employees have not achieved desired results” - Valerie Pike Effective Reward and Compensation Programs Exercise – Team up with someone who you have never teamed up with before – Describe an example when you were recognized professionally that had great impact with you, even today. Total Rewards – Compensation (including Bonuses, and Incentive Plans) – Benefits – Work- Life – Recognition – Training and Development Reward vs. Recognition Difference between Reward and Recognition Reward – Significant • Year end or quarterly bonus • Promotion – Includes some sort of monetary increase – Usually recognizes long term Page 9 Difference between Reward and Recognition Page 9 Recognition • Reserved to highlight an event, episode, and/or going above and beyond • Often includes something of value (money, time, etc.) • ‘Thank you’ is recognition but recognizes a job well done (not necessarily above and beyond) Compensation (including Bonuses) Case Study Team up in groups of 3 – 4 and answer these questions about the case study 1. Come up with a plan to divide both your salary pool and bonus pool. How do you base your decisions? 2. What additional decisions would you make as department manager Page 10 Compensation – – – – Base Pay Variable Pay(ie commissions, tips) Short term incentives (bonus plans) Long term incentives (stock, Compensation Golden Rule Fairness rules! it’s about fair pay, not high pay Fairness rules (it’s about fair pay, not high pay) Children and monkeys recognize when things are unfair Your employees recognize unfairness as well How do you think they respond? What ‘cucumbers’ are they throwing? Today’s Business Environment – Pay increases have been small – Promotions have been few (slow growth and low turnover is perfect storm for status quo) – Hiring is just now picking up (we’ve been doing more with less) – Bonuses have returned but smaller – Layoffs have slowed – Survivor anxiety/burnout Some Compensation Principles – Compensation communicates – Compensation is emotional – Compensation should drive the behavior you’re looking to drive – Compensation should reward achievement Compensation 10 Commandments Complete the evaluation assessment Page 11 Compensation 10 Commandments 1. Communication must be frequent and transparent 2. You must PAY for performance 3. You need a balance of qualitative and quantitative metrics 4. The peanut butter approach must be avoided 5. Avoid greasing the squeaky wheel 6. Do not over pay base compensation 7. Hot markets and sectors should be rewarded with variable pay whenever possible 8. Do not confuse Rewards and Recognition 9. Always emphasize achievement 10. Must always be fair Base Pay Base Pay – Year end ‘merit’ pool (change it to salary adjustment program) – Have been averaging 2 - 4% for many years – Very difficult to ‘pay for performance’ with merit pools being so small the past 20 years – Promotional budgets – can be .5 - 2% Cash Bonuses From Your Pre-work – What percentage of your population is eligible for bonuses? – What percentage of the bonus is based on qualitative results? • What are examples of your qualitative measurements? – What percentage of the bonus is based on quantitative results? • What are examples of your quantitative measurements? Bonus Programs Page 12 – Profit Sharing – Gain Sharing bonus programs are most common in manufacturing and are designed to reward productivity and improved product quality – Spot Bonus Awards reward employees on the spot for achievements that deserve special recognition. Spot bonus awards are typically $50 and up – Sign-On Bonuses are commonly used for new employees – Mission, Task or Milestone Bonus are given as a reward for special achievements and are usually offered sparingly. Bonus Programs (continued) Page 12 – Referral Bonuses are paid to employees who refer friends – Retention Bonuses are given to employees in circumstances, such as a merger or acquisition, to provide continuity through a certain time period when there is potential uncertainty about an employee’s continued employment at the company. – Holiday Bonuses – Sales Commissions Incentive Plans “The more GENEROUS and FORMULATIC you make your incentive plans, the greater the probability your employees will CHEAT!!” Dr. Dean Spitzer, author of "Transforming Performance Measurement" Incentive Plans – – – – – Eligibility can vary – usually mid to senior level Can be designed as formulaic or discretionary Best plans incentivize high performance Best plans differentiate high and low performance Best plans also have both quantitative and qualitative metrics – Best senior leadership plans link metrics with company wide results (to reduce silo behavior) – Best mid level plans tie payout window (timing) as close to behavior as possible Quantitative Measurements (THE WHAT) Health & Safety OSHA recordable & lost time case rates Employee Engagement (for line Managers) Turnover of Staff EDP % Completion (Managers) Employee Engagement Survey Results % of Recognition Budget spent % of Learning (% of payroll) Cost Management Working Capital Management Non-Labor Cost Management Client Satisfaction and Quality Net promoter score % Repeat business Overruns and write-offs Quantitative Measurements (THE WHAT) Profitability Budget Management Individual Profit Contribution Utilization Days Sales Outstanding Revenue Growth Opportunity Backlog Proposal Backlog Bookings Account Management Lead Generation Gross Sales Net Sales Qualitative Measurements (THE HOW) Teamwork Health & Safety Awareness Self Starter Solution Driven Support of Company's Strategic Initiatives Attitude Efficiency Cost Considerations Work Life Balance Quality Client Service Innovative Bonus / Pay Matrix High X% Performer 2X% Star Performan ce 0% Transition Investment X% Low Low Potential High Exercise: Bonus / Pay Matrix Page 13 • Think about 10 people in your organization. • If you were going to assign bonuses to those 10 people, in what quadrant would you put them? The Law of Unintended Consequences & Long Term Incentives Programs Work / Life Blending Work Life Blending – – – – – – – Flexible Work Hours Telecommuting Emergence of unlimited vacation time Job sharing Sabbaticals Part time benefit packages Community Involvement Page 14 Recognition Programs Difference between Reward and Recognition Page 9 - 2 Recognition • Reserved to highlight an event, episode, and/or going above and beyond • Often includes something of value (money, time, etc.) • ‘Thank you’ is recognition but recognizes a job well done (not necessarily above and beyond) Your Pre-work… – What are some examples of ongoing recognition programs you have in your organization? • What problem are you attempting to solve? • What specifically are you recognizing? – What other types of recognition programs have you seen? Recognition challenges (SHRM G2012 Global Survey) Recognition via Gamification – Definition: Gamification is the use of game elements in any context that is non-game related, usually by providing rewards and by fostering user interaction with the learning material. • • • • The form of rewards can vary, but the more common ones include: Points Badges Levels – Leaderboards – Challenges By 2014, 70% of global businesses will be using some form of gamification Gartner Research Nissan created a way to engage customers to provide info about their Nissan Leaf (100% electric car) • Compare performance of your vehicle • Communicate with your car through your cell phone • Earn points for performance, maintenance, and entering information Recyclebank rewards users for doing everyday things that are good for the environment. • Earn points by pledging to follow green living techniques • Trade points for discounts from vendors • Compare your rank against others (leaderboard) Gamification as Recognition What examples of gamification can you think of or have you used? Evaluating your Recognition Programs Has value to who it is given to on all levels Everyone receives in a fair and ongoing process All employees have the opportunity to achieve Related directly to a known goal or specific outcome Evaluate your Rewards and Recognition Using the reward and recognition form, evaluate two of your programs to be sure it is: • Available to everyone • Tied to a specific outcome • Delivered consistently • Valued by the employees Page 16 Exercise – What is the best example of recognition? In your assigned groups, come up with a list of recognition program examples that you have seen. Then, vote and present back one recognition example that is the best of your list Recognition Ideas and Best Practices • Schedule reminders • Have ‘valuable’ items on hand to hand out • Hats, shirts • Movie tickets • Gift cards • Establish a formal award given to an employee as a culmination of the year (but don’t overdo) • Let other recognize – it’s not just you that can recognize • Write a note! Engagement Action Plan Page 32 Action Plan for Day 5 – Evaluate your organization on it’s work – life blending processes – Evaluate several recognition processes being sure they are • • • • Available to everyone Tied to an outcome Delivered consistently Valued by employees Lunch Recruiting and Hiring Engaged Employees Selecting the Wrong Person Can Be Terrifying! “I don’t worry about hiring a great employee and having him leave in three months, I worry about hiring a bad employee and having him stay for three years!” -- Anonymous What’s your hiring horror story? In your groups: −Share a hiring horror story −Select the best story to share with the rest of the workshop. −When called upon, share the story your group selected © The Employee Engagement Group All Rights Reserved Recruiting Partnership HR High Quality Candidates First line leaders Suggested Roles and Responsibilities Role/Responsibility Conduct analysis (consider your succession plan and HIPOs) Create a job requisition Share opportunities with other offices, areas, and company Post all positions internally Encourage employee referrals Initiate social media recruiting Ongoing proactive structured recruiting Manage on-line postings (e.g., Monster, Craig’s List, etc) Manage recruiting firms (e.g., headhunters) Page 20 HR Mgr Recruiting Modes Page 21 Crisis Recruiting When you need people ‘yesterday’ When should you be recruiting new employees? ALWAYS! Proactive Recruiting Recruiting even when you don’t have a position to fill Hire Hard, Live Easy, Hire Easy, Live Hard Bob Kelleher Right Candidate “Types” Active Needs a job Aggressively looking Passive No desire for new job Don’t call SemiActive Wants a better job Looking sometimes SemiPassive Wants a better job Waiting for your call Page 21 Skills/Tenure or Accomplishments Skills/Tenure Accomplishments Have 10 years experience Increased client x account by 15% in one year Have good planning skills Submitted strategic plan in 90 days and hired 3 people Good problem solver Worked with dept. x to eliminate processing bottleneck See additional examples in your workbook Know Your Needs Using the B.E.S.T. Concept Behavior How one acts or reacts to specific circumstances Demonstrated through performance, actions, and conduct Examples: • Expressing one self clearly • Meeting project deadlines • Calm under pressure Education The knowledge one carries with him/her Demonstrated through diplomas and certificates Examples: • Master of Science in Hydrology • HazMat Certificate Skills The ability to put knowledge into action Demonstrated through activities and assignments Examples: • Technical writing • Accurately interprets lab results • Proficient in Excel and Access Page 10 - 3 Traits Characteristics that define someone’s personal nature Demonstrated through presentation and actions Examples: • Accountability • Integrity • Enthusiasm • Optimism • Collaborative Exercise – Behaviors and Traits – List the behaviors/traits that you would like to see in an employee as assigned below: • Case A – Project Manager • Case B – Department Manager • Case C – Sales Manager – Part 2 • What behaviors/traits do you think are unique to your industry or company? How can this exercise help you with selecting people for open positions? Developing a B.E.S.T. Profile Page 23 Define the job in general terms Create 5 – 6 accomplishments you want to see in the first 6 – 12 months List behaviors/traits that are essential for success Exercise - B.E.S.T Profile 1. Break into groups of two or three 2. Select a position for which you are hiring (or could be hiring in the future) 3. Use the B.E.S.T. Profile to prepare to staff for this position. • • List 6 – 8 performance objectives Make a list of the behaviors and traits, education, and skills that you will be looking for 4. Be prepared to discuss your B.E.S.T. Profile Exercise - Sources for Candidates − To ensure a thorough search, use the Recruiting Sources Planning Guide to stimulate basic and creative recruiting venues. − Work with a partner to select a real or hypothetical position to recruit. − Using the Recruiting Sources Planning Guide form document as many specific sources for candidates as possible and appropriate Page 27 Recruiting Your Brand Knowing Your Brand Many companies simply don’t know who they are and therefore can’t hire the types of people who will be engaged in their culture In other words, “You don’t have an Engagement problem, you have a Selection problem.” Do you know why people work for your company? What is your Employer Value Proposition? Your Employer Value Proposition What you do Why you do it Why do people work for you? Brand Who You Are What do these companies have in common? Brand Who You Are Tri-branding EVP (Employment Value Proposition) Third Party Branding (Customers, Vendors, Suppliers) Product or Service Branding Know Who You Are The Holy Grail of Branding Brand Awarenes s Brand Knowledg e Brand Believers Brand Deliverer s Exercise – How can others recruit for you? Employees Clients Knowing Your Brand Allows You To Design The Right Recruitment Message Employee Referral Programs Employee Referral Program (ERP) 69% of employers say they have a formal employee referral program 26% of external hires are generated from employee referrals 82% of employers rated employee referrals above all other sources for generating the best ROI 88% of employers rated employee referrals above all other sources for generating quality new hires 2010 CareerXRoads Sources of Hire Study Employee Referral Program (ERP) Listen to employees Track successes Communicate progress Generations Keep it simple Demonstrate how Positions available ID who makes a good referral Ongoing Evaluation Education Employee Involvement Appropriate Incentives Oracle White Paper, Shortest Path to Better Hires 2013 JobVite, Optimizing Your ERP, 2012 Page 28 Encourage social media Their motivations Improvements Overall program Who’s eligible? Cash Donations Drawings Hardware (i.e., iPad) Time off Employee Referral Program (ERP) Listen to employees Track successes Communicate progress Ongoing Evaluation Employee Involvement Page 28 Encourage social media Their motivations Improvements Overall program Who’s eligible? Exercise – How does your ERP meet these best practices? What do you do well? What could you do better? Generations Keep it simple Demonstrate how Positions available Education Appropriate Incentives Cash Donations Drawings Hardware (i.e., iPad) Time off Social Media in Recruiting Social Media and Recruitment Staff.com Recruiting.jobvite.com Business.time.com Careerxroads.com Directemployers.org Based on 2013 stats Social Media and Recruitment Staff.com Recruiting.jobvite.com Business.time.com Careerxroads.com Directemployers.org Based on 2013 stats Social Media and Recruitment Staff.com Recruiting.jobvite.com Business.time.com Careerxroads.com Directemployers.org Based on 2013 stats Social Media and Recruitment How to Recruit on Facebook For Free – Post on your status you’re looking for a job – Encourage your employees to post (link with your referral program) – Utilize the Facebook Directory to search for users, pages, groups and applications – Create a Facebook Page – Post on Marketplace Pay – Create a Facebook Ad • Targets specific audience; you pay based on hits How to Recruit on LinkedIn For Free: – Build connections to people you already know • former co-workers, current clients, local entrepreneurs and even friends and family. – Join Groups • For example, if you are always looking for Geotechnical Engineer, you can find an affiliated group on LinkedIn – Use your network activity box (also known as a status box) to broadcast that you are hiring. "Looking for a Geotechnical Engineer. If you know someone, maybe even you. Contact me." – You can find out a lot about a person from their profile before contacting them for an interview. – Encourage your employees to post jobs (link with your referral program) How to Recruit on LinkedIn Pay: – Post jobs you have available for $395 to post a job for 30 days. – Buy credits and pay less per job posting discounts for 5job and 10-job packages – Sign up for LinkedIn Talent Finder Social Media and Recruitment Top Reasons to Use Twitter in Recruiting – Allows you to connect with current and potential employees – Lets you send important company or industry messages (with links) – You can view what others are saying about your company (both good and bad) – Communicate job openings and new hires – Twitter will only grow – the sooner you take advantage of it’s power, the better you will be able to recruit and brand How to Recruit on Twitter For Free – Tweet Your Job Opening – Use Hash Tags #MechanicalEngineer – Ask your employees to tweet openings (reinforce your employee referral program as an incentive) How to Recruit on Twitter Social Media and Recruitment – Four billion video views per day Let’s look at how others have used YouTube to recruit Case Study A Case Study B # # 44 18 Social Media and Recruitment How could you use YouTube for recruiting? And the Resumes Roll in… How do you decide who to interview? 121 Resume Screening − Cover letter Page 29 • Content (personalized, well organized, clear, addresses job) • Aesthetics (easy to read, visually appealing, professional) − General qualifiers • Content (career objective, accomplishments, dates and sequences match) • Match with B.E.S.T. Profile criteria − “Yellow” flags • Items that make you ask questions about the person’s qualifications / fit • Avoid eliminating based solely on yellow flags; view them simply as areas that require further probing − Hard-to-fill positions • If you’re been searching for a while, and/or the position is very difficult to fill, you need to be more flexible in screening criteria Resume Screening Resume Screening What are some other forms of resumes you have seen? Does it change the way you look at the candidate? Exercise - Screening Resumes Part 1 – In groups or pairs, make a list of what you look for when screening resumes? • Makes you keep or get rid of quickly? Part 2 – Review the Resume Screening Tips in your workbook – Using the resumes you brought, identify: Page 10 - 10 • General qualifiers • Yellow flags • Other information that might impact your opinion – Discuss your answers with the people in your group and prepare to share with the class Letting a Resume Get Cold… “Speed is everything in hiring top talent. Within ten days the top 10% of job seekers are gone.” - Peter Weddle, Career Fitness Workbook, 2012 One of two things will happen within 10 days; they will either: • • Find a job Stop looking Sell the company Each candidate will have a different reason for being attracted to your company: – Culture and EVP – Professional growth – Stable Ownership – Loyalty and longevity of staff – Recognition Exercise – What can you sell about your company to candidates? What will interest them? How will you sell different aspects of your company to the different generations? Page 10 - 11 The Interview You Already Know How to Interview so… We’ve added a variety of interview skills documents on your web site that you are welcome to use: – Candidate Evaluation Form – Interview Tips and Tricks – Legal Question Guidelines – Behavioral Question Database Feel free to download and use with our compliments! Engagement Action Plan Page 31 Action Plan for Day 5 – Evaluate your organization on it’s work – life blending processes – Evaluate several recognition processes being sure they are • • • • Available to everyone Tied to an outcome Delivered consistently Valued by employees – Review your hiring process to determine if the BEST Profile can help make improvements Review of Program Review – Xxx Next Steps – Be bold, but understand it’s a journey – Commit on a few things and execute flawlessly – Remember YOU can make a huge difference! Logistics – HRCI Credits – request a form from your Trainer • Must have attended the session – Web site will remain on site for 1 month – Hang your certificate in a place of honor – Reach out with questions “Ah ha” or “Wow” or “Really Cool Stuff!” Graduation