TalentPeak ™

1. TalentPeak™ Employee Retention It’s Not About Pay

2. Employee Retention Hay Group, the big HR consulting firm, recently released the results of a survey of half a million employees from more than 300 companies. The study compared the satisfaction of “committed” employees– those who said they would stay with their organization for more than five years – with the attitudes of employees who planned to leave within a year. Of the 50- plus factors analyzed, pay was the least important reason for staying or for leaving. This finding is important because the common belief is that signing bonuses, big raises, and equity foster employee loyalty. There’s a place for all of that … but when the environment’s good people will work for less pay while being more engaged and productive. Pay – The Least Important Factor

3. Employee Retention Two – thirds of the managers and workers surveyed by Kepner-Tregoe said their organizations had boosted salaries and other financial rewards to try to stem turnover. But most didn’t think money was among the top reasons for the departure of high-performing employees. Based on exit surveys and one on one interviews money for the vast majority of exiting employees was not the primary motivator for leaving. SAS Institute, a software company, has a legendarily low turnover rate – less than 5% a year over a 30 year history – in an industry that averages a 20% turnover rate. The company pays competitive salaries but eschews whopper bonuses believing that although money is important, what people really want is recognition and a place they’re proud to work. If the work environment is toxic, then pay holds people’s feet to the fire for only so long. Pay – The Least Important Factor

4. Skills Development Employee dissatisfaction with career advancement opportunities within the company was listed as a threat to retention by 85% of the SHRM survey respondents. People want to grow professionally in their career and they are prepared to trade their loyalty to the company that gives back in the form of skills development. Texas Instruments (TI) made improving individual development one of its top three business priorities for the second year in a row. Accordingly, everyone of the company’s 40,000 workers must have a personal development plan in place for the coming year. The push is for every employee to be focused on being the best they can be. Why PDP’s Are Important People are happy, more productive and loyal when they are growing their skills. Being The Best They Can Be

5. Feedback - Coaching - Recognition Ask a manager “What is your Job”? Most managers see their job as being the technical expert on their team having responsibility for delivering a set of high quality outputs ahead of schedule and under budget. Great managers on the other hand recognize that their primary job is nurturing and developing the members of their team. The team’s job is to be the technical experts and deliver the outputs, the leader’s role is to set the vision, remove the barriers, and focus on the needs of each team member. Great managers are out front with the machete clearing the path, pointing out the hazards, suggesting alternate routes, offering encouragement, providing recognition and empathetic coaching. Thought Starter: Give managers the know how to become leaders and use compensation or recognition to reward behavior change. All of Us Are Better Than One of Us

6. Bad Bosses People don’t leave companies, they usually leave bosses. This is where the compact between employee and company breaks down. You might have a good tuition reimbursement program and skills development program, but if a manager doesn’t treat his or her direct reports with respect and dignity then none of the other stuff matters. In the Kepner-Tregoe survey, 16% of respondents identified conflict with the boss as one of the three most common reasons for the departure of top-performing employees; and those who don’t leave are disengaged and unproductive biding their time until the job market gets better or the head hunter calls. The value in a company increasingly is people. In the past money and resources were scarce, but today they have become readily available to companies. It’s all about people today. People Leave Bad Bosses Not Companies

7. The Currency of Leadership • What to do about bad bosses? • Offer alternate avenues that allow employees to circumvent their immediate supervisor, if necessary, and get their problems resolved. Motorola and Steelcase, for example, allow workers to take grievances all the way up to senior executives. • Conduct multiple 360 feedbacks over time. Sometimes a bad boss needs a wake-up call to get in touch with their inner guidance system. • Provide leadership training. Most managers have superior technical skills that got them into their management role in the first place. However they may be short on the skills needed in their current role – skills that motivate, coach, and empower people - the currency of leadership. From Management to Leadership

8. Retention Solutions People Are Your Competitive Advantage

9. Insights For Performance LLC & TalentPeak ™ Division of IFP Toll Free 1- 866-900-5172 Email info@talent-peak.com 6000 Fairview RoadSouthPark TowersCharlotte NC 28210 | 9