Retaining your talent
Tools and tactics for keeping the
best
Jim Cannon, PhD, FCIPD, FCMI
C.A.N.N.O.N A s s o c i a t e s
The War for Talent
Why?
C.A.N.N.O.N A s s o c i a t e s
The higher price for top talent –
‘the winner takes all’ economy
Competence
‘New’ relationship
Traditional relationship
Reward
C.A.N.N.O.N
Associates
Source: Wall street Journal, 2002
Do you ever get fed up with
your job?
C.A.N.N.O.N A s s o c i a t e s
Why do people stay?
Why do people leave?
C.A.N.N.O.N A s s o c i a t e s
The organisation
Great Company
Great vision/mission
Achievement ethic
Market/product leader
Great brand image
Strong values
The people
Identification
Affiliation
Loyalty
Commitment
Involvement
Adapted from The War for Talent by Michael Williams
Great Job
Challenge
Opportunity
Wealth Creation
Team synergy
Expanding
Add value
Move forward
Adrenaline flow
Fulfilment
Satisfaction
C.A.N.N.O.N A s s o c i a t e s
Great Talent Management
Coaching/feedback
Mentoring
Early promotion
Great boss
Empowered
Contribution
Competence
Personal Growth
Interdependence
Sunday Times (UK) 100 Best
companies to work for
• Engagement is affected by:
– Leadership behaviour and values – ‘can I follow this
person?’
– Well-being – stress, pressure and work life balance
– My manager – ‘support, trust and care of my
immediate manager’
– My team – relationships with colleagues and cultural
norms
– My company – ‘how do I feel about this organisation?’
– Personal growth – Challenge, skills development and
opportunities for advancement and / or variety
C.A.N.N.O.N A s s o c i a t e s
• Giving something back – how their
companies help their society and
community in particular
• Fair compensation (relation to organisation
peers, personal peers and perception of
their psychological contract
C.A.N.N.O.N A s s o c i a t e s
Key reasons for voluntary
employee turnover (source: CIPD UK survey 2007)
•
•
•
•
•
•
•
•
Promotion outside organisation
Change of career
Lack of development
Relationship with manager
Stress
Ill health (other than stress)
Reward
Family responsibilities
C.A.N.N.O.N A s s o c i a t e s
Some factors affecting
the decision to leave
Reason for
joining
Individual
joins
Undecided
lifestage
Responsibilities
Decision
to leave
External
labour
market
Temporarily
committed
Needs and satisfaction = Need
contribution balance
Age,
grade,
length of
service,
skill type;
level
More
permanent
committed
Critical factor
‘Last Straw’
C.A.N.N.O.N A s s o c i a t e s
Reference group
behaviour.
Value system.
Performance
feedback.
Pay structure.
Expectations
about promotion.
Knowledge of
other
opportunities.
Termination
Ill health & death
retirement
financial inducement
Employer influence on
labour turnover
- Where?
Internal labour
market causes
most firms are
Employer
influence
External labour
market causes
C.A.N.N.O.N A s s o c i a t e s
Bevan (1988)
Employer influence on
labour turnover
high
Internal labour
market causes
most firms are
actually
here
Employer
influence
low
but….
External labour
market causes
C.A.N.N.O.N A s s o c i a t e s
think
they are here
Bevan (1988)
Exit interview – a case study
(a survey of 177 people who left an organisation over a period of a year)
Reason given
at termination interview
Pregnancy
4
Marriage
1
More money
17
Better job
23
Promotion
5
Leaving the area
7
Change of career
4
Wanted a change
8
Did not get on with boss
2
Working conditions
4
Domestic reasons
15
Dissatisfied
12
Training
8
Other
18
Total
128
C.A.N.N.O.N A s s o c i a t e s
Exit interview – a case study
(a survey of 177 people who left an organisation over a period of a year)
Reason given
at termination interview
Pregnancy
Marriage
More money
Better job
Promotion
Leaving the area
Change of career
Wanted a change
Did not get on with boss
Working conditions
Domestic reasons
Dissatisfied
Training
Other
Total
4
1
17
23
5
7
4
8
2
4
15
12
8
18
128
Reason given six
months after leaving
4
0
12
28
2
7
3
18
11
10
3
3
5
22
128
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=
+
=
++
++
++
--+
Conventional wisdom about
labour turnover
Wastage:
Turnover:

decreases as age increases

decreases as skill increases

decreases as service increases
(How does this compare with your
organisation?)
C.A.N.N.O.N A s s o c i a t e s
Generations X and Y
• X
• Y (The’ Millenials’)
•
•
•
•
•
• Born 1981-2003
• ‘born with computers at
their fingertips
• Technically savvy
• Decisive and career
driven
• Socially conscious
• Individualistic
• Fond of social networking
Born 1961 – 1981
Culturally progressive
Technically savvy
‘Latchkey kids’
Sceptical, non
committal about
careers
These characteristics are derived from studies in the US and Europe.
C.A.N.N.O.N A s s o c i a t e s
Do they apply in Australia?
Controlling labour turnover

expect labour wastage - consider the pattern

reduce its impact through planned handover

be competitive in the labour market – not just money

emphasise areas of satisfaction

reduce areas of dissatisfaction

analyse reasons for turnover

use feedback to change management systems /
practices
And above all treat people as individuals
C.A.N.N.O.N A s s o c i a t e s
Wastage curve
- historically true, but what about the future?
Numbers of leavers
100
‘Induction crisis’
80
60
‘Differential
transit’
‘Settled connection’
40
20
0
(Tavistock Institute)
C.A.N.N.O.N A s s o c i a t e s
Service (years)
Think retention. It is worth doing
because….

High costs of labour turnover

loss of skills / experience – scarcer to find

Myths and conventional wisdom don’t apply

‘The longer serving people will stay regardless’

‘They should be lucky they have a job’

‘We are a great company, why would anyone want to
leave?’

Designing jobs and structures around people isn’t so stupid

Ensure management and supervisors understand the
challenges of the war for talent, especially at induction
C.A.N.N.O.N A s s o c i a t e s
Screen for engagement factors
•
•
•
•
•
•
Adaptability
Passion for the work
Emotional maturity
Positive disposition
Self efficacy
Achievement orientation
C.A.N.N.O.N A s s o c i a t e s
The view of the future from Davos
‘Companies have to treat their employees like
volunteers: every day they have to provide
compelling reasons why their most talented
employees should keep coming to work. This would
not just be about money; chiefly it would be about
building socially valuable corporate communities in
which individuals feel valued. Managers who could
create such communities and inspire their most
creative employees would be like gold dust:
“Finding community-building talent is the single
most precious resource in the modern world”.
Source: FT article ‘The view of the future from Davos’ (February 2006)
C.A.N.N.O.N A s s o c i a t e s
The emerging shape of organisations ?
What is the glue that holds it all together?
Primary
Secondary
Support skills
employees
- key skills
- shared values
- commitment
Employees
Short-term
Temporary employees
Agency
staff
Consultants
Subcontractors
C.A.N.N.O.N A s s o c i a t e s
Bought-in
services
Treating people as valued
individuals
Building strong collaborative
relationships (regardless of
contractual relationship)
C.A.N.N.O.N A s s o c i a t e s
Reconciling individual and
organisational perspectives
Past
Experience,
skills, knowledge
and expertise
Coach
Combined
expertise of
people in the
organisation
Present
Current priorities
for career
Future
Career and
life goals
Career
Management
Current priorities
Determined by
business need
C.A.N.N.O.N A s s o c i a t e s
Talent required to
stay competitive
I WANT
I AM ABLE
REALITY
C.A.N.N.O.N A s s o c i a t e s
New career options
• Lateral moves – increasing your portfolio of
•
•
•
•
marketable skills
Enrichment – making your current job more
interesting / challenging
Advancement – moving up the ladder (when your
abilities and needs coincide with the company’s)
Exploration – seeking other jobs where your skills
might be utilised
Realignment – downshift to work that suits you and
your lifestyle
• Relocate – moving to a new organisation / industry
C.A.N.N.O.N A s s o c i a t e s
Designing a retention strategy
Create flexibility around:
• Timing
• Location
• Work patterns (shifts, variety)
Ease tensions around:
• Relationships
• Stressors
Develop opportunities for:
• Variety
• Future development (Think generation Y)
Use coaching to:
• Enhance individual recognition and performance
C.A.N.N.O.N A s s o c i a t e s
Designing a retention strategy (2)
• Recruit for retention
• Promote work life balance
• Tailor talent management strategies to
meet organisatinal and individual needs
– Development
– Career
• Tailor reward packages to meet
organisational and individual needs
– Cafeteria benefits
C.A.N.N.O.N A s s o c i a t e s
So lets design a retention
strategy...
What can we do / are we doing to
improve retention in our
organisations?
C.A.N.N.O.N A s s o c i a t e s
Thank you
C.A.N.N.O.N A s s o c i a t e s
Perceived Difficulty
PANIC ZONE
EASY ZONE
Perceived Ability
C.A.N.N.O.N A s s o c i a t e s
The Stress Model - Mediation
Significant
Life - events
Early Background
Lifestyle
Personality
Demands
Thoughts and
beliefs
Stress Reaction
C.A.N.N.O.N A s s o c i a t e s
Resources
Demands and Resources –
Pressure and performance
This analysis gives three phases of pressure which can be related to performance.
Phase 1 - Surplus
Phase 2 - Break even
Phase 3 - Deficit
Resources in excess
of demands
Resources and demands
in balance
Demands in excess
of resources
Understress
Eustress
Overstress
3. Optimum
4. Coping
5. Strain
2. Stimulation
6. Burn out
1. Rust-out
Pressure
C.A.N.N.O.N A s s o c i a t e s
The nine commandments of
stress control
• plan your day - get control
• give yourself satisfaction
• be realistic
• know yourself - concentration, energy, limits
• delegate- 360 degrees
• balance - mental and physical
• say no
• look for the positive – the ‘Denisovich’ factor
• laugh at the world and yourself
C.A.N.N.O.N A s s o c i a t e s
The tools
• Understanding people’s attitudes and motivations
– Identify why people join your organsiation
– Identify sources of satisfaction and dissatisfaction
– Identify sources of iriitation leading to labour turnover – the
termination interview
• Factors affecting an individual’s fit to the job and the
organisation
• Checklist for retention tactics
• Checklist of actions taken to improve staff retention
(CIPD, UK survey, 2005)
• Assessing fit to current lifestyle and work-life balance
C.A.N.N.O.N A s s o c i a t e s