Retaining Top Talent in Tough Economic Times

1. Retaining Top Talent in Tough Economic Times Susan R. Vroman

2. “ ‘Everybody is nervous. They're all talking about what's going to happen and whether it's going to affect us.’ The financial crisis is testing many managers' abilities to maintain productivity and morale.” Source: Wall Street Journal, October 6, 2008

3. Agenda • Exercise: Who’s On Your Bus? • Employee Engagement • Management Mistakes • Retention Strategies

4. Exercise: Who’s on Your Bus?

5. General Electric’s 4-Block Performance Reward/promote Best leaders Great GE futures Restart Second opportunity to deliver results Values Remove Removals reinforce importance of values dimension Remove Easy call removals

6. 9 7 4 8 6 2 5 3 1 Performance 9-Block Values 10 Performance * Source Benchmark Assisted Living, 2007

7. So: Who’s on Your Bus?

8. Destructive Disengagement 28% 55% 17% Engaged Not Engaged Actively Disengaged These employees are loyal and psychologically committed to the organization. They are more productive and more likely to stay with their company for at least a year. These employees may be productive, but they are not psychologically connected to their company. They are more likely to miss workdays and more likely to leave. • These employees are physically present but psychologically absent. They are unhappy with their work situation and insist on sharing this unhappiness with their colleagues. • Source: Gallup Organization

9. Why Engage in Hard Times? “It helps people be resilient. Businesses right now, when the economy's bad like this, they're trying to survive. And to survive you've got to have some psychological resilience. You've got to have employees who are positive despite the negative situations around them.” Source: http://online.wsj.com/article/SB122531548636981645.html

10. Talent Management Matters • 87% of employees say that working with a low performer has made them want to change jobs. • 93% of employees say that working with a low performer has decreased their productivity. • Only 14% of senior executives say their company effectively manages low performers. • Only 17% of middle managers say they feel comfortable improving or removing low performers. • Source: Leadership IQ

11. Manager vs. Associates:What’s Wanted? * Source Jackson Lewis, 2006

12. Management Mistakes 101 • Individuals are lost in the Group • Expectations are known, but not clear • Performance is expected, but not rewarded

13. Today’s Action = Tomorrow’s Retention Communication Personalization Motivation • Be candid with associates • Set clear expectations, particularly when trying to do more with less • Avoid conflicting messages • Provide Stability: you can count on… • Balance the negative messages with positive ones • Create Hope: Help employees understand what they can count on • Connect with employees: show that you care • Focus on and leverage their strengths • Learning and Development / Potential Career Growth • Meaningful Work: Making a Difference • Let employees know there are things they can do to help • Provide Opportunities: Challenging and Exciting Work • Recognition and Rewards: Say “Thank You” • Fair Pay and Benefits • Connect back to mission Partial Source: http://online.wsj.com/article/SB123005914650730721.html

14. Q/A