Employer Branding and Retention Strategies

1. Employer Branding and Retention Strategies • Paige Wolf • This module will cover two main topics: employer branding, and retention strategies. This module will cover two main topics: employer branding, and retention strategies.

2. 2 Learning Objectives Business case: Setting the stage for effective recruitment and retention. What attracts employees? Attractiveness dimensions. Employment branding at PacifiCare. Employment branding activity. What makes employees stay? Retention factors at Google (video). Generational differences. Targeted retention at Deloitte. Innovative retention at Best Buy. Wrap-up Business case: Setting the stage for effective recruitment and retention. What attracts employees? Attractiveness dimensions. Employment branding at PacifiCare. Employment branding activity. What makes employees stay? Retention factors at Google (video). Generational differences. Targeted retention at Deloitte. Innovative retention at Best Buy. Wrap-up Business case: Setting the stage for effective recruitment and retention. What attracts employees? Attractiveness dimensions. Employment branding at PacifiCare. Employment branding activity. What makes employees stay? Retention factors at Google (video). Generational differences. Targeted retention at Deloitte. Innovative retention at Best Buy. Wrap-up

3. 3 Business Problem Scenario The organization: Needs a qualified, talented person for a position. Advertises and recruits for the position. Hires someone for the position. The employee: Is trained and socialized. Experiences a learning curve. Becomes productive. Leaves the organization. Use this scenario to get a discussion going about the costs of turnover to an organization (refer to the discussion questions on the next slide).Use this scenario to get a discussion going about the costs of turnover to an organization (refer to the discussion questions on the next slide).

4. 4 Business Problem Discussion Questions What are the business concerns related to this scenario? What are the implications of these costs to employers in terms of recruiting and retaining employees? 1. What are the business concerns related to this scenario? Students should mention: Recruiting costs. Selection costs (testing if applicable, interviewing, background checks). Onboarding costs (training, socialization/orientation). Costs of lower-than-expected productivity as employees get acquainted with the new company and/or industry (learning curve times will vary). Costs associated with disruption of a workgroup when employee leaves; threat of others leaving as well. Significant losses in productivity until position is filled again. 2. What are the implications of these costs to employers in terms of recruiting and retaining employees? Students should generate ideas about how to make this process better. List their suggestions and organize them by categories (e.g., branding/organizational reputation, selections tools, better recruitment sources, fair compensation and management practices, opportunities to develop and grow, collegial environment). 1. What are the business concerns related to this scenario? Students should mention: Recruiting costs. Selection costs (testing if applicable, interviewing, background checks). Onboarding costs (training, socialization/orientation). Costs of lower-than-expected productivity as employees get acquainted with the new company and/or industry (learning curve times will vary). Costs associated with disruption of a workgroup when employee leaves; threat of others leaving as well. Significant losses in productivity until position is filled again. 2. What are the implications of these costs to employers in terms of recruiting and retaining employees? Students should generate ideas about how to make this process better. List their suggestions and organize them by categories (e.g., branding/organizational reputation, selections tools, better recruitment sources, fair compensation and management practices, opportunities to develop and grow, collegial environment).

5. 5 Turnover Not all turnover is bad… Dysfunctional turnover: When talented, experienced, knowledgeable, productive, well-networked, high-potential employees leave the organization. Functional turnover: When disruptive or poor-performing employees leave the organization. Not all turnover is bad… Dysfunctional turnover is when talented, experienced, knowledgeable, productive, well-networked, high-potential employees leave the organization. Functional turnover is when disruptive or poor-performing employees leave the organization. Organizations want to decrease dysfunctional turnover whenever possible. This takes a partnership between HR and line management.Not all turnover is bad… Dysfunctional turnover is when talented, experienced, knowledgeable, productive, well-networked, high-potential employees leave the organization. Functional turnover is when disruptive or poor-performing employees leave the organization. Organizations want to decrease dysfunctional turnover whenever possible. This takes a partnership between HR and line management.

6. 6 Psychological Contract HR and managers must partner to prevent dysfunctional turnover. This requires understanding the “psychological contract”: The unwritten understanding regarding what both the employee and employer want from the employment relationship. What is your psychological contract? How does it differ from your parents’ and grandparents’ psychological contracts? What other factors affect psychological contracts? HR and managers need to partner to prevent dysfunctional turnover. Need to understand the “psychological contract”: The unwritten understanding regarding what both the employee and employer want from the employment relationship. The concept of a psychological contract is important to set the stage for recruitment and retention, because what an employee expects from the employment relationship in terms of goals, desires, aspirations, lifestyle fit, etc., will factor heavily in whether they accept a job and stay with an organization. Discussion Questions 1. What is your psychological contract? Students’ answers will vary. Look for trends that are aligned with generational tendencies (e.g., regular feedback, interesting work, autonomy). 2. How does it differ from your parents’ and grandparents’ psychological contracts? Use this question to discuss how the employment relationship has changed over time with new generations entering the workforce. Begin to set the stage for generational diversity as an issue facing many organizations today. In the 60s and 70s, the typical psychological contract was that an employee would bring and apply their abilities to the job, and in exchange, the organization would provide security, raises, good benefits, and career progression. For members of the “mature” generation, the idea of organizational loyalty is important; they believed the employment relationship was like a marriage, and neither party would end it unless there was a serious problem. Now, employers and employees expect more from each other: Employees work hard and devote extra time when needed; continue to learn, grow, and innovate; stay a reasonable period of time (not forever, like in the past). Employers provide competitive compensation and benefits; offer continuous skill development and growth opportunities; allow flexibility in working arrangements. 3. What other factors affect the psychological contract? The economic situation has an effect on the psychological contract; if jobs are scarce, it may affect employee’s expectations. For example, in the late 90s, many individuals with technology backgrounds came to expect and demand high starting salaries, hiring bonuses, stock options, etc. When the economy took a downturn, these same individuals faced a different job market, with employers offering different rewards and job environments. HR and managers need to partner to prevent dysfunctional turnover. Need to understand the “psychological contract”: The unwritten understanding regarding what both the employee and employer want from the employment relationship. The concept of a psychological contract is important to set the stage for recruitment and retention, because what an employee expects from the employment relationship in terms of goals, desires, aspirations, lifestyle fit, etc., will factor heavily in whether they accept a job and stay with an organization. Discussion Questions 1. What is your psychological contract? Students’ answers will vary. Look for trends that are aligned with generational tendencies (e.g., regular feedback, interesting work, autonomy). 2. How does it differ from your parents’ and grandparents’ psychological contracts? Use this question to discuss how the employment relationship has changed over time with new generations entering the workforce. Begin to set the stage for generational diversity as an issue facing many organizations today. In the 60s and 70s, the typical psychological contract was that an employee would bring and apply their abilities to the job, and in exchange, the organization would provide security, raises, good benefits, and career progression. For members of the “mature” generation, the idea of organizational loyalty is important; they believed the employment relationship was like a marriage, and neither party would end it unless there was a serious problem. Now, employers and employees expect more from each other: Employees work hard and devote extra time when needed; continue to learn, grow, and innovate; stay a reasonable period of time (not forever, like in the past). Employers provide competitive compensation and benefits; offer continuous skill development and growth opportunities; allow flexibility in working arrangements. 3. What other factors affect the psychological contract? The economic situation has an effect on the psychological contract; if jobs are scarce, it may affect employee’s expectations. For example, in the late 90s, many individuals with technology backgrounds came to expect and demand high starting salaries, hiring bonuses, stock options, etc. When the economy took a downturn, these same individuals faced a different job market, with employers offering different rewards and job environments.

7. 7 Recruitment: What Attracts Employees? Let’s discuss the attributes of an attractive employer.Let’s discuss the attributes of an attractive employer.

8. ASA Model (Schneider, 1987, 1995) The composition of organizations is determined by Attraction: People are attracted to organizations whose attributes are congruent with their own personal characteristics (e.g., values, personality). Selection: Organizations select applicants with attributes it desires (influenced by organizational founders). Attrition: People will leave organization if they don’t fit. ©SHRM 2008 8 The composition of organizations is determined by Attraction: People are attracted to organizations whose attributes are congruent with their own personal characteristics (e.g., values, personality). Selection: Organizations select applicants with attributes it desires (influenced by organizational founders). Attrition: People will leave organization if they don’t fit. So, one of the key goals of recruitment is to find people who will best fit the organization. This requires an understanding about what the organization is and its distinctive characteristics, so they can be used to attract the right people. Let’s look at some factors of employer attractiveness from the marketing literature. Sources: Schneider, B. (1987). The people make the place. Personnel Psychology, 40, 437-454. Schneider, B., Goldstein, H. W., & Brent, D. (1995). The ASA framework: An update. Personnel Psychology, 48 (4), 747-773. The composition of organizations is determined by Attraction: People are attracted to organizations whose attributes are congruent with their own personal characteristics (e.g., values, personality). Selection: Organizations select applicants with attributes it desires (influenced by organizational founders). Attrition: People will leave organization if they don’t fit. So, one of the key goals of recruitment is to find people who will best fit the organization. This requires an understanding about what the organization is and its distinctive characteristics, so they can be used to attract the right people. Let’s look at some factors of employer attractiveness from the marketing literature. Sources: Schneider, B. (1987). The people make the place. Personnel Psychology, 40, 437-454. Schneider, B., Goldstein, H. W., & Brent, D. (1995). The ASA framework: An update. Personnel Psychology, 48 (4), 747-773.

9. 9 Employer Attractiveness Dimensions Interest Value: The extent to which an individual is attracted to an employer because of the excitement and creativity of the work environment. Social Value: Attraction based on a collegial work environment with good team atmosphere. Economic Value: Attraction based on salary and benefits. Development Value: Based on recognition of work and career-enhancing opportunities. Application Value: The employee’s ability to apply what they have learned to teach others and interact with customers in a way that is positive and humanitarian. Many researchers have studied the factors that attract people to organizations. Marketing researchers Berthon, Ewing and Hah have focused their research on marketing strategies that are effective in creating an employer brand. In one study, they asked employees a series of questions about different aspects of the working environment, opportunities, salary, etc. Through statistical analysis, five factors of employer attractiveness emerged: 1. Interest value measures the extent to which an individual is attracted to an employer because of the excitement and creativity of the work environment. 2. Social value measures attraction based on a collegial work environment with a good team atmosphere. 3. Economic value measures attraction based on salary and benefits. 4. Development value measures attraction based on recognition of work and career-enhancing opportunities. Discuss the fact that some organizations resist developing employees for fear that they will take that training and leave. What if you don’t train them and they stay? This could be an indication that one of the other factors is lacking and thereby causing turnover. 5. Application value measures attraction due to employees’ abilities to apply what they have learned to teach others and interact with customers in a way that is positive and humanitarian. This seems to be really two things: applying education and teaching others, and a sense that the work is giving back or that the organization is humanitarian (does some social good). The authors conclude that these factors can be used by organizations to effectively assess different dimensions of employer attractiveness and to create strategies that will improve their employer brand. So if these are the five areas that drive employee attraction and retention, how would you go about building an employer brand? (Go to the next slide.) Source: Berthon, P., Ewing, M., and Hah, L. L. (2005). Captivating company: dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), 151–172. Many researchers have studied the factors that attract people to organizations. Marketing researchers Berthon, Ewing and Hah have focused their research on marketing strategies that are effective in creating an employer brand. In one study, they asked employees a series of questions about different aspects of the working environment, opportunities, salary, etc. Through statistical analysis, five factors of employer attractiveness emerged: 1. Interest value measures the extent to which an individual is attracted to an employer because of the excitement and creativity of the work environment. 2. Social value measures attraction based on a collegial work environment with a good team atmosphere. 3. Economic value measures attraction based on salary and benefits. 4. Development value measures attraction based on recognition of work and career-enhancing opportunities. Discuss the fact that some organizations resist developing employees for fear that they will take that training and leave. What if you don’t train them and they stay? This could be an indication that one of the other factors is lacking and thereby causing turnover. 5. Application value measures attraction due to employees’ abilities to apply what they have learned to teach others and interact with customers in a way that is positive and humanitarian. This seems to be really two things: applying education and teaching others, and a sense that the work is giving back or that the organization is humanitarian (does some social good). The authors conclude that these factors can be used by organizations to effectively assess different dimensions of employer attractiveness and to create strategies that will improve their employer brand. So if these are the five areas that drive employee attraction and retention, how would you go about building an employer brand? (Go to the next slide.) Source: Berthon, P., Ewing, M., and Hah, L. L. (2005). Captivating company: dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), 151–172.

10. 10 DaimlerChrysler Advertisement in The Economist This advertisement from DaimlerChrysler took up two pages in The Economist and is specifically designed to entice potential employees with the perk of a company car. This is a good example of aligning the employer brand with the consumer brand--a promise of quality. Now let’s discuss the Lievens article, which further describes how an employer brand helps recruitment and retention needs. Source: Berthon, P., Ewing, M., and Hah, L. L. (2005). Captivating company: dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), pp. 151–172. This advertisement from DaimlerChrysler took up two pages in The Economist and is specifically designed to entice potential employees with the perk of a company car. This is a good example of aligning the employer brand with the consumer brand--a promise of quality. Now let’s discuss the Lievens article, which further describes how an employer brand helps recruitment and retention needs. Source: Berthon, P., Ewing, M., and Hah, L. L. (2005). Captivating company: dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), pp. 151–172.

11. Employer Branding: What is It? Why Do We Need to Do It? Employment branding is “internally and externally promoting a clear view of what makes a firm different and desirable as an employer.” (Lievens, 2007) A consumer branding goal asks a person to buy a product or service. An employment branding goal asks a person to change their life. Why Do It? By 2010, there will be 5-10 million fewer workers than jobs in the U.S. Generation X’s workforce is half the size of the about-to-retire baby boomers. ©SHRM 2008 11 Employment Branding is defined by Lievens (2007) as internally and externally promoting a clear view of what makes an organization different and desirable as an employer. It is essentially the process of placing an image of being a great place to work in the minds of a targeted candidate pool. A consumer branding goal asks a person to buy a product or service. An employment branding goal asks a person to change their life. An employment brand goal is to actually have someone make a significant change in their life by changing employment (and possibly residence). Sources: Estis, R. (2008). Employment Branding: Attracting and Retaining Generation NEXT. SHRM 60th Annual Conference and Exposition, Chicago, IL. Lievens, F. (2007). Employer branding in the Belgian Army: The importance of instrumental and symbolic beliefs for potential applicants, actual applicants, and military employees. Human Resource Management, 46 (1), 51-69. Employment Branding is defined by Lievens (2007) as internally and externally promoting a clear view of what makes an organization different and desirable as an employer. It is essentially the process of placing an image of being a great place to work in the minds of a targeted candidate pool. A consumer branding goal asks a person to buy a product or service. An employment branding goal asks a person to change their life. An employment brand goal is to actually have someone make a significant change in their life by changing employment (and possibly residence). Sources: Estis, R. (2008). Employment Branding: Attracting and Retaining Generation NEXT. SHRM 60th Annual Conference and Exposition, Chicago, IL. Lievens, F. (2007). Employer branding in the Belgian Army: The importance of instrumental and symbolic beliefs for potential applicants, actual applicants, and military employees. Human Resource Management, 46 (1), 51-69.

12. Employer Branding Research A strong employer brand is related to: Pride of individuals expected from being organizational members (Cable & Turban, 2003). Applicant pool quantity and quality (Collins & Han, 2004). Stable and positive workforce attitudes and organizational performance compared to broader market (Fulmer, Gerhart, & Scott, 2003). ©SHRM 2008 12 The study of the effect of employer branding is relatively new. However, there have been some empirical studies linking branding efforts to objective metrics. Strong employer brand was related to: Pride of individuals expected from being organizational members (Cable & Turban, 2003). Applicant pool quantity and quality (Collins & Han, 2004). Stable and positive workforce attitudes and organizational performance compared to broader market (Fulmer, Gerhart, & Scott, 2003). (The full citations for these references are in the reference list accompanying this learning module.)The study of the effect of employer branding is relatively new. However, there have been some empirical studies linking branding efforts to objective metrics. Strong employer brand was related to: Pride of individuals expected from being organizational members (Cable & Turban, 2003). Applicant pool quantity and quality (Collins & Han, 2004). Stable and positive workforce attitudes and organizational performance compared to broader market (Fulmer, Gerhart, & Scott, 2003). (The full citations for these references are in the reference list accompanying this learning module.)

13. Goals for Employer Branding Establish an image of the employment experience. Create synergy with consumer brand: Align promise to customer with promise to employees. Clearly state “what’s in it for me” to potential applicants. Entice the right candidates to apply for the job. ©SHRM 2008 13 Establish an image of the employment experience. Create synergy with consumer brand: Align promise to customer with promise to employees. Clearly state “what’s in it for me” to potential applicants. Entice the right candidates to apply for the job. Now that we’ve talked about what an employer brand is and how it relates to recruiting and retaining talent, let’s discuss how to build one. Source: Adapted from: Estis, R. (2008). Employment Branding: Attracting and Retaining Generation NEXT, 60th Annual Conference and Exposition, Chicago, IL. Establish an image of the employment experience. Create synergy with consumer brand: Align promise to customer with promise to employees. Clearly state “what’s in it for me” to potential applicants. Entice the right candidates to apply for the job. Now that we’ve talked about what an employer brand is and how it relates to recruiting and retaining talent, let’s discuss how to build one. Source: Adapted from: Estis, R. (2008). Employment Branding: Attracting and Retaining Generation NEXT, 60th Annual Conference and Exposition, Chicago, IL.

14. 14 Building an Employer Brand Discussion Questions How is employer branding different from recruiting? How do you start a branding effort? What should your branding message include? What is your value proposition? How should the level of branding efforts vary based on the economy? Based on your understanding of this article, let’s answer these questions. Branding is a long-term, constant process, whereas recruiting starts and stops. Branding is not about describing job vacancies but about describing what it’s like to work with the organization – how they treat people, learning opportunities, career growth, etc. Know your unique selling position. How is your organization distinct from others? Be honest. Don’t promise what you can’t deliver or state aspirations instead of reality. Focus on the key selling points of your organization and work to improve those conditions to build an even stronger brand in the future. Leverage your organization’s unique position to differentiate from other advertisements. Paint a picture of what it’s like to work at your organization day-to-day; explain your organization’s value proposition for employees. Maintain a branding effort even in a soft economy when candidates are more plentiful. This is important because: - You want to attract the best candidates. - Takes time to develop and establish a branding identity, and you want to be ready for the next growth cycle. Now let’s discuss the ultimate goals of an employer brand. Source: Joinson, C. (2002). Building and Boosting the Employer Brand, Employment Management Today, 7 (3). Based on your understanding of this article, let’s answer these questions. Branding is a long-term, constant process, whereas recruiting starts and stops. Branding is not about describing job vacancies but about describing what it’s like to work with the organization – how they treat people, learning opportunities, career growth, etc. Know your unique selling position. How is your organization distinct from others? Be honest. Don’t promise what you can’t deliver or state aspirations instead of reality. Focus on the key selling points of your organization and work to improve those conditions to build an even stronger brand in the future. Leverage your organization’s unique position to differentiate from other advertisements. Paint a picture of what it’s like to work at your organization day-to-day; explain your organization’s value proposition for employees. Maintain a branding effort even in a soft economy when candidates are more plentiful. This is important because: - You want to attract the best candidates. - Takes time to develop and establish a branding identity, and you want to be ready for the next growth cycle. Now let’s discuss the ultimate goals of an employer brand. Source: Joinson, C. (2002). Building and Boosting the Employer Brand, Employment Management Today, 7 (3).

15. 15 Five Steps to Building an Employer Brand Understand your organization. Create a compelling brand promise that mirrors your customer brand promise. Articulate your value proposition for employees. Develop standards to measure the fulfillment of the brand promise. Align all people practices to support and reinforce the brand promise. Execute and measure. According to HR consultants Hewitt Associates, there are five steps to developing a strong employer brand: 1) understand your organization; 2) create a compelling brand promise for employees that mirrors the brand promise for customers; 3) develop standards to measure the fulfillment of the brand promise; 4) “ruthlessly align” all people practices to support and reinforce the brand promise; and 5) execute and measure. 1. Understand your organization. If you say you have an entrepreneurial environment because you think it will appeal to applicants, it will fall flat if it doesn’t truly reflect your organization. Discover what it is really like to work at the organization and what kind of people will like the organization’s environment. 2. Create a compelling brand promise that mirrors your customer brand promise. Articulate your value proposition for employees. The brand promise should be aligned with promises to customers and should be extended to include the realities that exist for the organization’s workers. You have to sell your brand to your employees to have any hope that you can sell it to consumers. 3. Develop standards to measure the fulfillment of the brand promise. Such standards could include turnover and exit interview data, attitude/culture survey metrics, 360-degree feedback results on managers. 4. Align all people practices to support and reinforce the brand promise. The author talks about “ruthlessly aligning”. This means making very clear distinctions between behaviors that support the employer’s brand and those that don’t; not allowing actions or decisions to erode the brand; and holding everyone accountable for aligning with the brand. For example, consider Deloitte’s Women’s Initiative (WIN): The CEO of Deloitte realized it was a business imperative to keep women, and that Deloitte was not a great place for women to work. He created the Women's Initiative and made it a top priority. People were held accountable to follow through on it. He aligned it with the line management--not HR--because it needed to be owned and managed by business leaders. It also had to benefit everyone, not just women. It included professional development and leadership programs, and opportunities for marketplace eminence (recognition, rewards, speaking engagements, professional associations, etc.). They built a community through blogs and meetings and implemented innovative programs like flexible work arrangements and personal pursuits programs. 5. Execute and measure Measure based on the standards set. One of the metrics you might measure is recruitment. As your brand improves, your recruiting metrics should improve, too. Let’s look at an organization who has had tremendous success with their employment branding efforts. Source: http://www.hewittasia.com/hewitt/ap/australia/index.htm. According to HR consultants Hewitt Associates, there are five steps to developing a strong employer brand: 1) understand your organization; 2) create a compelling brand promise for employees that mirrors the brand promise for customers; 3) develop standards to measure the fulfillment of the brand promise; 4) “ruthlessly align” all people practices to support and reinforce the brand promise; and 5) execute and measure. 1. Understand your organization. If you say you have an entrepreneurial environment because you think it will appeal to applicants, it will fall flat if it doesn’t truly reflect your organization. Discover what it is really like to work at the organization and what kind of people will like the organization’s environment. 2. Create a compelling brand promise that mirrors your customer brand promise. Articulate your value proposition for employees. The brand promise should be aligned with promises to customers and should be extended to include the realities that exist for the organization’s workers. You have to sell your brand to your employees to have any hope that you can sell it to consumers. 3. Develop standards to measure the fulfillment of the brand promise. Such standards could include turnover and exit interview data, attitude/culture survey metrics, 360-degree feedback results on managers. 4. Align all people practices to support and reinforce the brand promise. The author talks about “ruthlessly aligning”. This means making very clear distinctions between behaviors that support the employer’s brand and those that don’t; not allowing actions or decisions to erode the brand; and holding everyone accountable for aligning with the brand. For example, consider Deloitte’s Women’s Initiative (WIN): The CEO of Deloitte realized it was a business imperative to keep women, and that Deloitte was not a great place for women to work. He created the Women's Initiative and made it a top priority. People were held accountable to follow through on it. He aligned it with the line management--not HR--because it needed to be owned and managed by business leaders. It also had to benefit everyone, not just women. It included professional development and leadership programs, and opportunities for marketplace eminence (recognition, rewards, speaking engagements, professional associations, etc.). They built a community through blogs and meetings and implemented innovative programs like flexible work arrangements and personal pursuits programs. 5. Execute and measure Measure based on the standards set. One of the metrics you might measure is recruitment. As your brand improves, your recruiting metrics should improve, too. Let’s look at an organization who has had tremendous success with their employment branding efforts. Source: http://www.hewittasia.com/hewitt/ap/australia/index.htm.

16. PacifiCare Launched a comprehensive employer branding campaign, including Employee value proposition: Envision. Innovate. Accomplish. Consumer message: Caring is good. Doing something is better. To what extent are these aligned? Employee referral program (ERP): ERPs are one of the best recruiting tools in terms of performance and retention. Particularly effective when the referrals are coming from committed and productive employees. ©SHRM 2008 16 PacifiCare Health Systems is a leading consumer health organization with 10,000 employees. PacifiCare needed to improve their hiring. To do so, they developed a strategic recruitment and branding program. Employee value proposition: Envision. Innovate. Accomplish. They used this theme in all of their communication related to working at PacifiCare (webpages, direct mail, employee referral marketing). Their consumer message is: Caring is good, doing something is better. To what extent do you think these are aligned? Employee referral program (ERP): - ERPs are one of the best recruiting tools in terms of performance and retention. - Particularly effective when the referrals are coming from committed and productive employees. Source: NAS Recruitment Communications, Employment Branding: PacifiCare. Accessed September 24, 2008 at http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf. PacifiCare Health Systems is a leading consumer health organization with 10,000 employees. PacifiCare needed to improve their hiring. To do so, they developed a strategic recruitment and branding program. Employee value proposition: Envision. Innovate. Accomplish. They used this theme in all of their communication related to working at PacifiCare (webpages, direct mail, employee referral marketing). Their consumer message is: Caring is good, doing something is better. To what extent do you think these are aligned? Employee referral program (ERP): - ERPs are one of the best recruiting tools in terms of performance and retention. - Particularly effective when the referrals are coming from committed and productive employees. Source: NAS Recruitment Communications, Employment Branding: PacifiCare. Accessed September 24, 2008 at http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf.

17. Employer Branding: Recruiting Advertisement ©SHRM 2008 17

18. Employee Referral Flyer ©SHRM 2008 18 This marketing flyer was designed to motivate current employees to refer qualified friends and family members to job openings at PacifiCare.This marketing flyer was designed to motivate current employees to refer qualified friends and family members to job openings at PacifiCare.

19. PacifiCare PacifiCare’s employer branding efforts have been recognized by the following awards: Best Employer Brand: 2006 Electronic Recruiting Exchange Best in Class Employee Referral Web Site: VirtualEdge West Coast User Group Top 50 Employer for Minorities and Women: Fortune Magazine ©SHRM 2008 19

20. PacifiCare’s Results Branding results: 85% of interviewed candidates agreed with the statement, “PacifiCare is a good place to work.” This was a 25% increase. 81% rated PacificCare either “one of the best” or “above average” as compared to other companies. Employee referral results: ERP participation increased by 31%. Referral hires increased by 15%. Conversion rate of referrals to hires: 85%. Hiring manager satisfaction: 84.82%. ©SHRM 2008 20 PacifiCare has enjoyed an increase in positive perceptions about the company since the branding campaign was initiated. The emphasis on employee referrals had a tremendous effect on the number of offers they convert to hires, and has improved the hiring manager’s satisfaction level with the quality of new hires. While the company is investing in rewards for their employee referral program, they are expected to pay off significantly given the improved performance and retention of hires. Now let’s turn to a discussion of factors that motivate employees to stay once they’ve been hired. Source: NAS Recruitment Communications, Employment Branding: PacifiCare. Accessed September 24, 2008 at http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf. PacifiCare has enjoyed an increase in positive perceptions about the company since the branding campaign was initiated. The emphasis on employee referrals had a tremendous effect on the number of offers they convert to hires, and has improved the hiring manager’s satisfaction level with the quality of new hires. While the company is investing in rewards for their employee referral program, they are expected to pay off significantly given the improved performance and retention of hires. Now let’s turn to a discussion of factors that motivate employees to stay once they’ve been hired. Source: NAS Recruitment Communications, Employment Branding: PacifiCare. Accessed September 24, 2008 at http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf.

21. Employment Branding Activity Take out the recruiting advertisement/job announcement you found. Share your advertisement or job announcement with a partner and answer the questions on the next slide. Be prepared to discuss your answers with the entire class. ©SHRM 2008 21 Ask students to take out their advertisements or job announcements as assigned previously. Ask them to find a partner and share their advertisement or job announcement with each other. Working in pairs, students should use their advertisements to answer the discussion questions on the following slides. Ask students to be prepared to review their answers with the entire class. Ask students to take out their advertisements or job announcements as assigned previously. Ask them to find a partner and share their advertisement or job announcement with each other. Working in pairs, students should use their advertisements to answer the discussion questions on the following slides. Ask students to be prepared to review their answers with the entire class.

22. Discussion Questions What are the key messages expressed in the advertisement or job announcement? Are aspects of the consumer brand mentioned or conveyed? If so, how? How does the advertisement communicate what it is like to work at that organization? Would this job announcement appeal to the types of employees the organization is seeking? Why or why not? What recommendations would you have to improve the appeal to qualified candidates? ©SHRM 2008 22

23. 23 Retention: What Makes Employees Stay?

24. Google #1 on Fortune’s 100 Best Places to Work in 2007 and 2008. Known for little bureaucracy. Hire smarts; less emphasis on experience. Good ideas are implemented, regardless of who they came from. What is it like to work at Google? ©SHRM 2008 24 Use Google as an example of an organization that attracts thousands of applicants a day because of its culture and focus on branding itself in a way that appeals to the smart, entrepreneurial people it wants to attract. Google: Is recognized as one of the best places to work by Fortune magazine. Is known for little bureaucracy and a flat organizational structure. Hires smart people and places less emphasis on experience. Google values intelligence and motivation when hiring, and is less impressed with years of engineering experience. Implements good ideas regardless of who they’re from. There is little focus on one’s status when offering ideas; if your idea has credibility, you’ll get the chance to try it out. Follow the URL (below) to show students a 7-minute video on what it’s like to work at Google. (To have the closed-captioning display, press the “CC” box on the bottom right of the screen.) http://video.google.com/videoplay?docid=-8618166999532839788 After watching the video, discuss how Google retains their best employees: Mentoring program. 20% rule: Spend 20% of their time on something they are interested in. Free food. Exercise facilities. On-site child care center. Fellow employees who are smart and passionate about what they do. These perks are great, but not all organizations can afford them. In fact, in July 2008, Google announced that it would have to reduce the size of the subsidy it provides Google employees for their daycare. It is always harder on employees to have something taken away, so the costs of perks over the long term should be considered. Use Google as an example of an organization that attracts thousands of applicants a day because of its culture and focus on branding itself in a way that appeals to the smart, entrepreneurial people it wants to attract. Google: Is recognized as one of the best places to work by Fortune magazine. Is known for little bureaucracy and a flat organizational structure. Hires smart people and places less emphasis on experience. Google values intelligence and motivation when hiring, and is less impressed with years of engineering experience. Implements good ideas regardless of who they’re from. There is little focus on one’s status when offering ideas; if your idea has credibility, you’ll get the chance to try it out. Follow the URL (below) to show students a 7-minute video on what it’s like to work at Google. (To have the closed-captioning display, press the “CC” box on the bottom right of the screen.) http://video.google.com/videoplay?docid=-8618166999532839788 After watching the video, discuss how Google retains their best employees: Mentoring program. 20% rule: Spend 20% of their time on something they are interested in. Free food. Exercise facilities. On-site child care center. Fellow employees who are smart and passionate about what they do. These perks are great, but not all organizations can afford them. In fact, in July 2008, Google announced that it would have to reduce the size of the subsidy it provides Google employees for their daycare. It is always harder on employees to have something taken away, so the costs of perks over the long term should be considered.

25. 25 What makes employees STAY? Advancement opportunities.* Constituent attachment (co-workers, boss, employees). Extrinsic rewards (pay, bonus). Flexible work arrangements. Investment in the organization. Job satisfaction. Lack of alternatives. Location. Non-work influences. Organizational commitment. Organizational justice. Organizational prestige.* A recent study by Hausknecht et al. explored the reasons people stay in their jobs and examined whether there were differences in the reasons given by high versus low performers and by hourly workers versus higher-level employees. The retention factors considered were: Advancement opportunities: The potential for movement to higher levels within the organization. Constituent attachment: The degree of attachment to individuals associated with the organization, such as supervisor, co-workers or customers. Extrinsic rewards: The amount of pay, benefits, or equivalents distributed in return for service. Flexible work arrangements: The nature of the work schedule or hours. Investment in the company: The perceptions about the length of service to the organization. Job satisfaction: The degree to which individuals like their jobs. Lack of alternatives: Beliefs about the unavailability of jobs outside of the organization. Location: The proximity of the workplace relative to one’s home. Non-work influences: The existence of responsibilities and commitments outside of the organization. Organizational commitment: The degree to which individuals identify with and are involved in the organization. Organizational justice: Perceptions about the fairness of reward allocations, policies and procedures, and personal treatment. Organizational prestige: The extent to which the organization is perceived to be reputable and well-regarded. While previous research identified many of these as key retention factors, this study looked at differences in the employee population with regard to drivers of retention. The authors found that advancement opportunities, perceived investments, job satisfaction and organizational prestige were stated as reasons to stay significantly more often by high-performing employees (versus low-performing employees). Moreover, they found differences in the reasons to stay cited by employees at various levels of the organization. For example, hourly workers tended to cite extrinsic rewards as a reason to stay significantly more often than higher-level employees, perhaps due to the more transactional nature of the employment relationship. Higher-level employees cited organizational prestige and advancement opportunities significantly more than did employees at lower organizational levels. Source: Hausknecht, J. P., Rodda, J. M., Howard, M. J. (2008). Targeted Employee Retention: Performance-Based and Job-Related Differences in Reported reasons for Staying. Center for Advanced Human Resource Studies (CAHRS), http://digitalcommons.ilr.cornell.edu/cahrswp/484. Preprint of article accepted in Human Resource Management. A recent study by Hausknecht et al. explored the reasons people stay in their jobs and examined whether there were differences in the reasons given by high versus low performers and by hourly workers versus higher-level employees. The retention factors considered were: Advancement opportunities: The potential for movement to higher levels within the organization. Constituent attachment: The degree of attachment to individuals associated with the organization, such as supervisor, co-workers or customers. Extrinsic rewards: The amount of pay, benefits, or equivalents distributed in return for service. Flexible work arrangements: The nature of the work schedule or hours. Investment in the company: The perceptions about the length of service to the organization. Job satisfaction: The degree to which individuals like their jobs. Lack of alternatives: Beliefs about the unavailability of jobs outside of the organization. Location: The proximity of the workplace relative to one’s home. Non-work influences: The existence of responsibilities and commitments outside of the organization. Organizational commitment: The degree to which individuals identify with and are involved in the organization. Organizational justice: Perceptions about the fairness of reward allocations, policies and procedures, and personal treatment. Organizational prestige: The extent to which the organization is perceived to be reputable and well-regarded. While previous research identified many of these as key retention factors, this study looked at differences in the employee population with regard to drivers of retention. The authors found that advancement opportunities, perceived investments, job satisfaction and organizational prestige were stated as reasons to stay significantly more often by high-performing employees (versus low-performing employees). Moreover, they found differences in the reasons to stay cited by employees at various levels of the organization. For example, hourly workers tended to cite extrinsic rewards as a reason to stay significantly more often than higher-level employees, perhaps due to the more transactional nature of the employment relationship. Higher-level employees cited organizational prestige and advancement opportunities significantly more than did employees at lower organizational levels. Source: Hausknecht, J. P., Rodda, J. M., Howard, M. J. (2008). Targeted Employee Retention: Performance-Based and Job-Related Differences in Reported reasons for Staying. Center for Advanced Human Resource Studies (CAHRS), http://digitalcommons.ilr.cornell.edu/cahrswp/484. Preprint of article accepted in Human Resource Management.

26. Embeddedness Theory of Retention Premise: The more embedded an employee is in the organization, the less likely they will actually leave. Embeddedness factors include: Fit: With organization--working conditions, culture. With community--affordable housing, commute, pace, etc. Links (connections): To people and projects in organization. With the community. Sacrifice: What would I have to give up? From organization (benefits, flexibility, tuition, perks). Community (schools, neighborhoods, friends). ©SHRM 2008 26 Holtom et al. provided a theory regarding what factors cause an employee to decide to stay with an organization. The premise of the theory is that the more embedded a person is in the organization, the less likely they will leave. Holtom and his cohorts conceptualized job embeddedness as being composed of three types of connections: fit, links and sacrifices. They have found that job embeddedness predicts retention better than job satisfaction and organizational commitment measures. People are reluctant to leave jobs to the extent that they feel connected with their work, people, communities, the lifestyle afforded by the job, and sacrifices they’d make if they left. The study showed that it is often shocks (an argument with a co-worker or boss; an organizational restructure; pay cuts; an unsolicited job offer) rather than job dissatisfaction or lack of organizational commitment that cause employees to begin the process of leaving. Those who were more embedded were able to stay through it. Fit in the organization: Measured by pre-employment surveys to assess personality, honesty and motivation. Organizational fit requires extensive training and socialization for employees to understand the culture and philosophy to make decisions easier. Fit in the community: Recruiting in nearby neighborhoods; encouraging community activities like parades and festivals; consider location and proximity to affordable housing or easy commuting. Links in the organization: Connections to people and projects throughout organization, social events, establishing personal relationships with co-workers. Links in community: Time off to volunteer; Patagonia, for example, offers a paid sabbatical of two months to work for a nonprofit environmental organization. Sacrifice in leaving organization: Great benefits, health, retirement, flexible to meet individual’s needs, tuition, wages help but aren’t enough to prevent turnover; perks like onsite services, fitness centers, day cares, vacation, flexible work arrangements. Sacrifice in leaving the community: Preventing people from taking jobs requiring relocation; incentives to buy a home and tied to staying for some number of years; setting up locations in pleasant communities people won’t want to leave. Source: Holtom, B.C., Mitchell, T. R., and Lee, T.W. (2006). Increasing human and social capital by applying job embeddedness theory. Organizational Dynamics, 35 (4), 316-331. Holtom et al. provided a theory regarding what factors cause an employee to decide to stay with an organization. The premise of the theory is that the more embedded a person is in the organization, the less likely they will leave. Holtom and his cohorts conceptualized job embeddedness as being composed of three types of connections: fit, links and sacrifices. They have found that job embeddedness predicts retention better than job satisfaction and organizational commitment measures. People are reluctant to leave jobs to the extent that they feel connected with their work, people, communities, the lifestyle afforded by the job, and sacrifices they’d make if they left. The study showed that it is often shocks (an argument with a co-worker or boss; an organizational restructure; pay cuts; an unsolicited job offer) rather than job dissatisfaction or lack of organizational commitment that cause employees to begin the process of leaving. Those who were more embedded were able to stay through it. Fit in the organization: Measured by pre-employment surveys to assess personality, honesty and motivation. Organizational fit requires extensive training and socialization for employees to understand the culture and philosophy to make decisions easier. Fit in the community: Recruiting in nearby neighborhoods; encouraging community activities like parades and festivals; consider location and proximity to affordable housing or easy commuting. Links in the organization: Connections to people and projects throughout organization, social events, establishing personal relationships with co-workers. Links in community: Time off to volunteer; Patagonia, for example, offers a paid sabbatical of two months to work for a nonprofit environmental organization. Sacrifice in leaving organization: Great benefits, health, retirement, flexible to meet individual’s needs, tuition, wages help but aren’t enough to prevent turnover; perks like onsite services, fitness centers, day cares, vacation, flexible work arrangements. Sacrifice in leaving the community: Preventing people from taking jobs requiring relocation; incentives to buy a home and tied to staying for some number of years; setting up locations in pleasant communities people won’t want to leave. Source: Holtom, B.C., Mitchell, T. R., and Lee, T.W. (2006). Increasing human and social capital by applying job embeddedness theory. Organizational Dynamics, 35 (4), 316-331.

27. 27 Discussion Questions What are the practical implications of this study? Which retention factors relate directly to employment branding efforts? What do the study’s findings suggest about the utility of employer branding? How could generational differences affect reasons for retention? What are the practical implications of this study? Retention drivers vary across employee segments, suggesting a one-size-fits-all set of policies and practices may not be as effective as a more targeted approach to employee retention. Which retention factors relate directly to employment branding efforts? The most unique aspect of this study was the frequency with which employees noted organizational prestige (defined as the extent to which the organization is perceived to be reputable and well-regarded) as a factor in staying, particularly for high performers and those with more senior positions in the organization. This suggests that having a strong employer brand is not only important to acquire qualified recruits but should also be focused internally, so that the positive aspects of the organization are visible to employees as well. What do the study’s findings suggest about the utility of employer branding? This study seems to support the positive effect of employer branding initiatives; that is, presenting the organization as not only offering a superior product or service but also as a great place to work. This can affect both recruitment and retention of high-performing individuals. How could generational differences affect reasons for retention? This study looked at two differences in employee populations: high versus low performers and organizational level. Employees at different life stages have different reasons for staying with an employer, so consideration should be paid to how the workplace appeals to the generational groups you want to target. Let’s discuss the effect of generational differences on recruitment and retention practices for today’s businesses. Source: Hausknecht, J. P., Rodda, J. M., Howard, M. J. (2008). Targeted Employee Retention: Performance-Based and Job-Related Differences in Reported Reasons for Staying. Center for Advanced Human Resource Studies (CAHRS), http://digitalcommons.ilr.cornell.edu/cahrswp/484. Preprint of article accepted in Human Resource Management. What are the practical implications of this study? Retention drivers vary across employee segments, suggesting a one-size-fits-all set of policies and practices may not be as effective as a more targeted approach to employee retention. Which retention factors relate directly to employment branding efforts? The most unique aspect of this study was the frequency with which employees noted organizational prestige (defined as the extent to which the organization is perceived to be reputable and well-regarded) as a factor in staying, particularly for high performers and those with more senior positions in the organization. This suggests that having a strong employer brand is not only important to acquire qualified recruits but should also be focused internally, so that the positive aspects of the organization are visible to employees as well. What do the study’s findings suggest about the utility of employer branding? This study seems to support the positive effect of employer branding initiatives; that is, presenting the organization as not only offering a superior product or service but also as a great place to work. This can affect both recruitment and retention of high-performing individuals. How could generational differences affect reasons for retention? This study looked at two differences in employee populations: high versus low performers and organizational level. Employees at different life stages have different reasons for staying with an employer, so consideration should be paid to how the workplace appeals to the generational groups you want to target. Let’s discuss the effect of generational differences on recruitment and retention practices for today’s businesses. Source: Hausknecht, J. P., Rodda, J. M., Howard, M. J. (2008). Targeted Employee Retention: Performance-Based and Job-Related Differences in Reported Reasons for Staying. Center for Advanced Human Resource Studies (CAHRS), http://digitalcommons.ilr.cornell.edu/cahrswp/484. Preprint of article accepted in Human Resource Management.

28. 28 Generations in the Workplace We have four generations represented in today’s workforce: Matures (born between 1901-1943). Baby Boomers (born between 1943-1960). Gen X (born between 1960-1980). Gen Y (born between 1980-2000). View “The Millennials are Coming” (60 Minutes video). At the last several Society for Human Resource Management conferences, speakers talked about the trend in today’s workplace of multiple generations working in the same organization. The observation was made that managing and rewarding different generations in ways that meet their respective hopes and expectations has a real bottom-line impact, particularly with recruitment and selection of top talent. The study of generational differences is getting a lot of attention from organizations because there are now four generations in the workplace. This trend will continue because of an influx of younger workers and the prediction that baby boomers will retire later or continue working in more limited capacities such as independent contractors or consultants. The year cutoffs defining generations is arbitrary, so consider them general time periods rather than hard cutoffs. The idea behind looking at generational differences is that people born in different periods of time share certain perspectives because of common experiences they had in their formative years. Let’s look at a segment shown on CBS’s “60 Minutes” about the anticipated effect the Millennial, or Gen Y, group will have in the workplace. Click on “The Millennials are Coming” hyperlink which will take you to this site: http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3486473n Note – there is a 20-second commercial that precedes the video. Use this video to faciltate discussion on the effect a multigenerational workforce will have on organizations striving to attract and retain the best people. At the last several Society for Human Resource Management conferences, speakers talked about the trend in today’s workplace of multiple generations working in the same organization. The observation was made that managing and rewarding different generations in ways that meet their respective hopes and expectations has a real bottom-line impact, particularly with recruitment and selection of top talent. The study of generational differences is getting a lot of attention from organizations because there are now four generations in the workplace. This trend will continue because of an influx of younger workers and the prediction that baby boomers will retire later or continue working in more limited capacities such as independent contractors or consultants. The year cutoffs defining generations is arbitrary, so consider them general time periods rather than hard cutoffs. The idea behind looking at generational differences is that people born in different periods of time share certain perspectives because of common experiences they had in their formative years. Let’s look at a segment shown on CBS’s “60 Minutes” about the anticipated effect the Millennial, or Gen Y, group will have in the workplace. Click on “The Millennials are Coming” hyperlink which will take you to this site: http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3486473n Note – there is a 20-second commercial that precedes the video. Use this video to faciltate discussion on the effect a multigenerational workforce will have on organizations striving to attract and retain the best people.

29. 29 Multigenerational Workforce Each generation: Shares a similar set of experiences and perceptions due to the events of their lifetime. Brings a different perspective to the workplace. Has different interactional styles and preferences. May misinterpret words and actions of employees from other generations. We study generational differences with the idea that people born during different periods of time share certain perspectives because of the experiences they had in their formative years. Each generation: Shares a similar set of experiences and perceptions due to the events of their lifetime. Brings a different perspective to the workplace. Has different interactional styles and preferences. May misinterpret words and actions of employees from other generations. We study generational differences with the idea that people born during different periods of time share certain perspectives because of the experiences they had in their formative years. Each generation: Shares a similar set of experiences and perceptions due to the events of their lifetime. Brings a different perspective to the workplace. Has different interactional styles and preferences. May misinterpret words and actions of employees from other generations.

30. 30 Multigenerational Workforce Employees across generations need to work together more today: Flatter organizations. Growth of performance and merit-based pay and promotion systems. Globalization and knowledge-based economy requires collaboration. The study of and concern about generational differences stems from changes in our economy and technological advances. There are truly new ways to get work done due to advances in technology, causing more salient clashpoints for employees from different generations. The study of and concern about generational differences stems from changes in our economy and technological advances. There are truly new ways to get work done due to advances in technology, causing more salient clashpoints for employees from different generations.

31. 31 Multigenerational Workforce Employers who maximize cross-generational communication improve knowledge transfer, yielding: A better-developed workforce. A more competitive position. Given the increased need for collaboration across organizational levels, locations and functions, employers who can harness the value employees of all ages bring to the workplace will see an improved competitive advantage through increased innovation, speed of decision making and execution, and higher retention of employees who feel they are making valuable contributions. Source: Kovary, G. (2008). How to Get, Keep, and Grow All Four Generations. 60th Annual SHRM Conference, Chicago, IL. Given the increased need for collaboration across organizational levels, locations and functions, employers who can harness the value employees of all ages bring to the workplace will see an improved competitive advantage through increased innovation, speed of decision making and execution, and higher retention of employees who feel they are making valuable contributions. Source: Kovary, G. (2008). How to Get, Keep, and Grow All Four Generations. 60th Annual SHRM Conference, Chicago, IL.

32. Generational Differences: Summary ©SHRM 2008 32 This chart summarizes key differences among the different generations that exist in the workforce today. The largest number of employees fall into the Baby Boomer generation, with roughly 45 percent. The next largest generational group in the workforce is Gen X, at about 40 percent. The fastest growing generational group is Gen Y, which represents about 10 percent of the workforce and is growing every day. Source: Marston (2006) Recruiting and Retention Trends. SHRM Conference, Washington, DC. Gen Y, at nearly 80 million strong, outnumbers the 78.5 million baby boomers and 48 million Gen X-ers. It is to the employer’s benefit, then, to learn how to deal with them. Source: Gurchiek, K. (2008) Survey: Generational Conflicts Aggravate Talent Shortage, SHRM HR News. Slide Source: Kovary, G. (2008). How to Get, Keep, and Grow All Four Generations. 60th Annual SHRM Conference, Chicago, IL. This chart summarizes key differences among the different generations that exist in the workforce today. The largest number of employees fall into the Baby Boomer generation, with roughly 45 percent. The next largest generational group in the workforce is Gen X, at about 40 percent. The fastest growing generational group is Gen Y, which represents about 10 percent of the workforce and is growing every day. Source: Marston (2006) Recruiting and Retention Trends. SHRM Conference, Washington, DC. Gen Y, at nearly 80 million strong, outnumbers the 78.5 million baby boomers and 48 million Gen X-ers. It is to the employer’s benefit, then, to learn how to deal with them. Source: Gurchiek, K. (2008) Survey: Generational Conflicts Aggravate Talent Shortage, SHRM HR News. Slide Source: Kovary, G. (2008). How to Get, Keep, and Grow All Four Generations. 60th Annual SHRM Conference, Chicago, IL.

33. Generational Viewpoints on Job Changing Matures: Job changing carries a stigma. Baby Boomers: Job changing puts you behind. Gen X-ers: Job changing is necessary. Millenials: Job changing is part of their daily routine. The reason why employees decide to stay or go may be influenced by their attitudes toward job changing in general. Again, this is related to different psychological contracts, as we discussed earlier. In general, Matures resist changing jobs because they adhere to a paternalistic view of organizations: “You take care of me and I’ll take care of you.” To change jobs would be considered almost disloyal. Baby Boomers are also not likely to switch jobs, often because their organizations are very hierarchical. To leave means they may have to start over, or at least fall behind, in the hierarchy at a new organization. Gen X-ers were influenced by watching their parents get laid off during a surge of corporate downsizing. As a result, they don’t necessarily feel loyal to an organization, but more toward a manager they admire. They also tend to feel that if they aren’t continuing to learn and develop, they won’t be marketable; they will leave a job in which they feel their development is stagnant. Millennials don’t expect to stay at one organization for any predetermined length of time. They want to have a sense of job security but realize that they are a valuable resource and will continue to look around and try out different jobs until they find the best fit for them and their lifestyle.The reason why employees decide to stay or go may be influenced by their attitudes toward job changing in general. Again, this is related to different psychological contracts, as we discussed earlier. In general, Matures resist changing jobs because they adhere to a paternalistic view of organizations: “You take care of me and I’ll take care of you.” To change jobs would be considered almost disloyal. Baby Boomers are also not likely to switch jobs, often because their organizations are very hierarchical. To leave means they may have to start over, or at least fall behind, in the hierarchy at a new organization. Gen X-ers were influenced by watching their parents get laid off during a surge of corporate downsizing. As a result, they don’t necessarily feel loyal to an organization, but more toward a manager they admire. They also tend to feel that if they aren’t continuing to learn and develop, they won’t be marketable; they will leave a job in which they feel their development is stagnant. Millennials don’t expect to stay at one organization for any predetermined length of time. They want to have a sense of job security but realize that they are a valuable resource and will continue to look around and try out different jobs until they find the best fit for them and their lifestyle.

34. Generational Similarities How are we similar? People all want to trust their supervisors. No one really likes change. We all like feedback. Everyone likes security and the ability to balance work and life. A seven-year study of more than 3,000 corporate leaders found that when it comes to what type of culture a person wants to work in, it really boils down to the same basic things. All of the corporate leaders in the study found that there were no significant differences across generations when it came to valuing family, respect, and trust. Everyone wanted to be able to trust their supervisors. No one really liked change, and we all like feedback (not just Gen Y). The study also found that the number of hours an employee worked had more to do with the level of their position in the organization than it did with their age. The study found that all generations share a desire to have a balance of work and non-work activities and to have some form of stability. So without conducting a lengthy analysis, you can start to design a retention program that is guided by these principles because they are central to what most employees would find attractive in an employer. That said, employers who have identified particular weaknesses in their recruitment and retention processes and taken steps to correct the problems have improved their competitive advantage. An example of an organization that targeted their practices for a particular employee group is Deloitte… Source: Deal, J. (2006). Retiring the generation gap: How employees young and old can find common ground. A seven-year study of more than 3,000 corporate leaders found that when it comes to what type of culture a person wants to work in, it really boils down to the same basic things. All of the corporate leaders in the study found that there were no significant differences across generations when it came to valuing family, respect, and trust. Everyone wanted to be able to trust their supervisors. No one really liked change, and we all like feedback (not just Gen Y). The study also found that the number of hours an employee worked had more to do with the level of their position in the organization than it did with their age. The study found that all generations share a desire to have a balance of work and non-work activities and to have some form of stability. So without conducting a lengthy analysis, you can start to design a retention program that is guided by these principles because they are central to what most employees would find attractive in an employer. That said, employers who have identified particular weaknesses in their recruitment and retention processes and taken steps to correct the problems have improved their competitive advantage. An example of an organization that targeted their practices for a particular employee group is Deloitte… Source: Deal, J. (2006). Retiring the generation gap: How employees young and old can find common ground.

35. Targeted Employee Retention Deloitte Low retention of women threatened their business. Created the Women’s Initiative program designed to make Deloitte a better place to work, especially for women. Developed mass career customization: Employees needs differ at different life stages. Increased choices in shaping career paths to fit life choices. Focused on adaptability of employee and employer. Made explicit certain trade-offs between choices. Increased retention by creating a sense of loyalty and connection. ©SHRM 2008 35 For a timeline of the Women’s Initiative Program, go to: http://www.deloitte.com/dtt/section_node/0%2C1042%2Csid%25253D105211%2C00.html. Deloitte is an example of an organization that recognized that their retention of their female employees was having a detrimental effect on their business and that it was only going to get worse; women are a growing segment of the labor market and are 58 percent of college degree recipients. Women also have a lot of choices, and could easily go to a competitor whose working environment is more attractive. Deloitte also recognized the fact that their clients were more diverse in terms of gender and expected similar diversity in their consultants. Consequently, Deloitte took a serious look and assessed cultural barriers for women: They assessed their environment by talking to both men and women, those who stayed and some of those who left the firm, to find out what was happening and why women were leaving at higher rates. The reasons fell into three categories: 1. The culture and environment was heavily influenced by male norms and styles of behavior. Stereotypes about women persisted and led to certain decisions. Examples: Pregnant women might not be assigned to an important engagement for fear that she would not return after the birth of her child. Women may not be considered for international assignments because it was assumed they wouldn’t move (but that men would). 2. Their culture was not supporting women to the same extent as men in areas such as mentoring, networking and client assignments. Over time, subtle differences like these, coupled with the lack of female role models in senior and leadership positions, had created a perception in many women’s minds of a lack of career advancement opportunity. 3. At the same time, they found that for both men and women, Deloitte was a difficult place to balance multiple commitments. It was especially tough to balance work and family -- and about 75% of Deloitte’s people are in dual-career couples. And, in most families, women still carry a greater share of responsibility for home life, which makes the balancing act even more difficult. One of the hallmarks of the program was the idea of mass career customization. This is a recognition of the fact that people need different things from a job in different stages of their lives. The program: Increased choices to help employees shape career paths that fit the various stages of their personal lives. Made career building a more explicit shared responsibility between the enterprise and the individual. Made adaptability over time a core competency for individuals and enterprises. Created greater transparency regarding trade-offs and choices. Retains talent by cultivating a new sense of loyalty and connection.For a timeline of the Women’s Initiative Program, go to: http://www.deloitte.com/dtt/section_node/0%2C1042%2Csid%25253D105211%2C00.html. Deloitte is an example of an organization that recognized that their retention of their female employees was having a detrimental effect on their business and that it was only going to get worse; women are a growing segment of the labor market and are 58 percent of college degree recipients. Women also have a lot of choices, and could easily go to a competitor whose working environment is more attractive. Deloitte also recognized the fact that their clients were more diverse in terms of gender and expected similar diversity in their consultants. Consequently, Deloitte took a serious look and assessed cultural barriers for women: They assessed their environment by talking to both men and women, those who stayed and some of those who left the firm, to find out what was happening and why women were leaving at higher rates. The reasons fell into three categories: 1. The culture and environment was heavily influenced by male norms and styles of behavior. Stereotypes about women persisted and led to certain decisions. Examples: Pregnant women might not be assigned to an important engagement for fear that she would not return after the birth of her child. Women may not be considered for international assignments because it was assumed they wouldn’t move (but that men would). 2. Their culture was not supporting women to the same extent as men in areas such as mentoring, networking and client assignments. Over time, subtle differences like these, coupled with the lack of female role models in senior and leadership positions, had created a perception in many women’s minds of a lack of career advancement opportunity. 3. At the same time, they found that for both men and women, Deloitte was a difficult place to balance multiple commitments. It was especially tough to balance work and family -- and about 75% of Deloitte’s people are in dual-career couples. And, in most families, women still carry a greater share of responsibility for home life, which makes the balancing act even more difficult. One of the hallmarks of the program was the idea of mass career customization. This is a recognition of the fact that people need different things from a job in different stages of their lives. The program: Increased choices to help employees shape career paths that fit the various stages of their personal lives. Made career building a more explicit shared responsibility between the enterprise and the individual. Made adaptability over time a core competency for individuals and enterprises. Created greater transparency regarding trade-offs and choices. Retains talent by cultivating a new sense of loyalty and connection.

36. Actions taken to retain and promote women Note: All programs and opportunities developed under WIN were available to both men and women. Allow choice with regard to: Pace of career progression. Workload. Location and schedule of work. Up to five-year leave of absence while staying connected: Maintain professional certifications (e.g., CPA). Assigned a mentor and career coach. Attend Deloitte functions. Work as independent contractor. Targeted Employee Retention Here are some examples of things Deloitte did to retain and promote women. (It is important to point out that the opportunities and programs created under the WIN initiative were available to all employees, not only women.) They allowed choice with regard to pace of career progression and workload. They recognized that at different times in one’s life, the pace of work and the number of hours that can be spent at work differ for both men and women. Deloitte allowed employees to decide about the quantity of work output and related career progression. The traditional model of up-or-out did not have to pervade the culture. They created flexible options with regard to work location and schedule. They allowed for up to a five-year leave of absence, and created opportunities to remain connected with the company. This has been available for both men and women since 2006. This program helps people maintain professional certifications (e.g., CPA) and assigns mentors and career coaches. Employees can attend Deloitte functions, and can work as independent contractor. The idea behind this program is that they want people who do leave to think of Deloitte first when they decide to re-enter the workforce. Here are some examples of things Deloitte did to retain and promote women. (It is important to point out that the opportunities and programs created under the WIN initiative were available to all employees, not only women.) They allowed choice with regard to pace of career progression and workload. They recognized that at different times in one’s life, the pace of work and the number of hours that can be spent at work differ for both men and women. Deloitte allowed employees to decide about the quantity of work output and related career progression. The traditional model of up-or-out did not have to pervade the culture. They created flexible options with regard to work location and schedule. They allowed for up to a five-year leave of absence, and created opportunities to remain connected with the company. This has been available for both men and women since 2006. This program helps people maintain professional certifications (e.g., CPA) and assigns mentors and career coaches. Employees can attend Deloitte functions, and can work as independent contractor. The idea behind this program is that they want people who do leave to think of Deloitte first when they decide to re-enter the workforce.

37. Deloitte’s results: 21% of employees at the partner, principal, and director level are women; Deloitte leads Big 4. 46% of all employees are women. Consistently recognized on Working Mother’s “100 Best Companies for Working Mothers” honor roll. Has created or sponsored more than 400 professional development, networking and mentoring activities. Targeted Employee Retention As a result, Deloitte has enjoyed an increase in their retention of women, and their women in leadership positions. 21% of employees at the partner, principal, and director level are women; Deloitte leads Big 4. 46% of all employees are women. Consistently recognized on Working Mother’s “100 Best Companies for Working Mothers” honor roll. Has created or sponsored over 400 professional development, networking and mentoring activities. Again, all of the programs put in place under the Women’s Initiative are available to everyone in the organization.As a result, Deloitte has enjoyed an increase in their retention of women, and their women in leadership positions. 21% of employees at the partner, principal, and director level are women; Deloitte leads Big 4. 46% of all employees are women. Consistently recognized on Working Mother’s “100 Best Companies for Working Mothers” honor roll. Has created or sponsored over 400 professional development, networking and mentoring activities. Again, all of the programs put in place under the Women’s Initiative are available to everyone in the organization.

38. 38 Retention Innovations: Best Buy: Smashing the Clock Best Buy’s situation: Burnout among headquarters employees. Management emphasis on face time/ Expectation of 24/7 availability due to technological advances. Solution: Results Only Work Environment (ROWE). Focus on what gets done, not physical presence. No mandatory office time. Work when and where you want – just get the job done. Let’s discuss another organization that has been innovative in trying to retain their best employees and improve productivity. Best Buy’s situation: Drivers included employee burnout and stress; advances in technology that created the ability and expectation that people were available 24/7, coupled with a strong face-time culture (e.g., one manager made MBAs sign in and out; another made a team track their time down to 15 minutes); lack of work/life balance. Solution: They created the Results Only Work Environment (ROWE) program, where employees could work whenever and wherever they want as long as they get their work done. ROWE Commandments: No.1: People at all levels stop doing any activity that is a waste of their time, the customer's time, or the company's money. No.7: Nobody talks about how many hours they work. No.9: It's O.K. to take a nap on a Tuesday afternoon, grocery shop on Wednesday morning, or catch a movie on Thursday afternoon. Reaction against idea that physical presence = productivity. The program’s designers explained how in the world of ROWE, there would be no mandatory meetings and no times when you had to physically be at work. Performance would be based on output, not hours. Managers would base assessments on data and evidence, not feelings and anecdotes. Best Buy’s executives were actually not the creators of this idea – but they liked what they heard from the HR champions and agreed. They started in small pockets of the company; but by the end of 2007, all 4,000 staffers working at corporate were on the ROWE plan. They use ROWE in their recruiting and at orientation for new hires. Source: Conlin, M. (November 2006). Smashing the Clock. BusinessWeek. Let’s discuss another organization that has been innovative in trying to retain their best employees and improve productivity. Best Buy’s situation: Drivers included employee burnout and stress; advances in technology that created the ability and expectation that people were available 24/7, coupled with a strong face-time culture (e.g., one manager made MBAs sign in and out; another made a team track their time down to 15 minutes); lack of work/life balance. Solution: They created the Results Only Work Environment (ROWE) program, where employees could work whenever and wherever they want as long as they get their work done. ROWE Commandments: No.1: People at all levels stop doing any activity that is a waste of their time, the customer's time, or the company's money. No.7: Nobody talks about how many hours they work. No.9: It's O.K. to take a nap on a Tuesday afternoon, grocery shop on Wednesday morning, or catch a movie on Thursday afternoon. Reaction against idea that physical presence = productivity. The program’s designers explained how in the world of ROWE, there would be no mandatory meetings and no times when you had to physically be at work. Performance would be based on output, not hours. Managers would base assessments on data and evidence, not feelings and anecdotes. Best Buy’s executives were actually not the creators of this idea – but they liked what they heard from the HR champions and agreed. They started in small pockets of the company; but by the end of 2007, all 4,000 staffers working at corporate were on the ROWE plan. They use ROWE in their recruiting and at orientation for new hires. Source: Conlin, M. (November 2006). Smashing the Clock. BusinessWeek.

39. 39 Best Buy: Smashing the Clock Results: Average voluntary turnover has fallen drastically. Productivity is up an average 35%. Employee engagement has increased. Discussion Question From an HR perspective, what types of systems need to be in place to sustain ROWE on an ongoing basis? Results: Average voluntary turnover has fallen drastically. Productivity is up an average 35 percent. Employee engagement has increased. From an HR perspective, what types of systems need to be in place to sustain ROWE on an ongoing basis? Must have metrics to monitor employee performance; have strong trust and shared understanding between management and employees; managers have to model the behavior; need to anticipate and address discomfort with this working arrangement from some employees. Results: Average voluntary turnover has fallen drastically. Productivity is up an average 35 percent. Employee engagement has increased. From an HR perspective, what types of systems need to be in place to sustain ROWE on an ongoing basis? Must have metrics to monitor employee performance; have strong trust and shared understanding between management and employees; managers have to model the behavior; need to anticipate and address discomfort with this working arrangement from some employees.

40. Discussion Question Based on what we’ve discussed and your organization’s mission and purpose, what could it do to improve the quality of recruits and retain the best talent? ©SHRM 2008 40 Students answers may vary. Some factors they may suggest include: Flexible work arrangements. Attractive benefits tailored to employee’s needs. Employee referrals. Identifying success factors of employees and selecting recruits on that basis. Aligning training and development to meet workforce and organizational needs.Students answers may vary. Some factors they may suggest include: Flexible work arrangements. Attractive benefits tailored to employee’s needs. Employee referrals. Identifying success factors of employees and selecting recruits on that basis. Aligning training and development to meet workforce and organizational needs.

41. 41 Conclusion Building an employer brand leads to higher-quality and more efficient recruiting. Generational differences are a source of diversity – use them to your advantage, minimize conflicts through training/education. Create an organizational culture that serves to execute your strategy and retain and attract the best workforce. Determine drivers of retention of your workforce. Consider ways to create more “glue” for your high-performing population of employees.