Attraction & Retention

Report
1
H.R. and Remuneration Strategy
Benchmarking
And Surveys
Reward
Online
Payscales
Total
Package
& Audits
Role Profiles and Job
Evaluation
Performance
Management
S.T.I.
L.T.I.
Talent &
Career
Management
Workflow
Employee Value Proposition / Retention
2
ttracting and Retaining Top Talent
3
Sources

Reuters

Department of Home Affairs

Business Report

Goldfields

Wits Business School
4
5
Globally, the average time
that CEO’s remain with
one company for
6
7
The number of Gold
Mining firms in South
Africa, compared to the
1,600 in China
8
9
% of global leaders
eligible for retirement
within the next 5 years
10
11
The number of Engineers
and Artisans that Eskom
lost last year
12
13
The predicted
shortfall of qualified
artisans in South
Africa by 2010.
14
15
The number of South
Africans who attended this
years Australian emigration
expo.
16
17
The number of positions
which cannot be filled from
within the country because
of the current skills
shortage.
18
19
The number of people working
in the Financial Sector in South
Africa. At any one time there
are more financial sector job
vacancies worldwide than this.
20
21
Shortfall of qualified
medical practitioners
worldwide
22
23
Value of active
construction projects in
the Gulf Co-Operation
Council Countries
24
Effective Individuals
Great Organisations
•Sustain performance
•Are focused and
disciplined
•Engage employees
•Are trustworthy
Define themselves in the
market
•Possess judgement
•Are proactive
Inspired Leaders
•Engender trust
Clarify purpose
Unleash talent
Strategy &
Policy
Attraction
and
Incentives
Retention
25
efinition and
ontext
“Retain” has two meanings: “to hold or keep in possession”
and “to engage the services of”
The traditional focus in many HR practices has been to hold or
keep rather than to engage a service. High-value employees
and hot skills want to be “engaged” and not “kept”.
26
urrent
rends
Turnover increasing exponentially (as high as 23% in some
industry sectors)
Retention focus shifting from guaranteed remuneration
and short term incentives to training and development,
recognition and long term incentives
Targeted approach still the norm
Majority of organisations target the median overall and
upper quartile for Hot Skills and High Fliers
Performance linked remuneration becoming more
popular/increase in formal performance management
systems (defensible differentiation)
27
An increasing number of organisations are offering Long
Term Incentives to employees below middle
management in an attempt to attract or retain them
A large number of organisations are paying premiums to
various skill categories/job families. Ranges btw 7.5 –
40% (usually dependant on scarcity of skill)
Remuneration more effective at retaining Top to Senior
Management. Below senior mgmt, recognition and
personal development are becoming increasingly
important
28
Yet . . . . . . .
Only 28% of organisations in a recent
survey including some of the top
organisations in SA have a formal retention
policy/ strategy in place, the majority of
which have only implemented this since
2005
29
HE EFFECTIVENESS OF PAY IN
RETAINING TALENT
•
•
The majority of organisations still use pay as their primary retention
vehicle
The number one reason in Exit Interviews for employees leaving
organisations is “for more money”
FLAWED LOGIC
30
etention
hallenges
1. Offering individualised retention deals to some while
still recognising the “B players”
2. Managers not being able to manage staff (usually due to
lack of people skills training)
3. Work-Life-Balance options not always practicable
4. Volatility of employment market (scarce skills)
5. Affordability
31
ew
1.
2.
3.
4.
5.
6.
7.
rends
Informal reward and recognition
Flexible benefits where appropriate
Talent management strategies
Sign-on bonuses/loans
Work from home policies
Succession planning and knowledge sharing policies
Tailoring retention options to the employee profiles of the
organisation (profile-fit reward models)
8. Above average voluntary benefits to create niche
environment
32
ey success factors
1. Involve employees – survey/focus groups
2. Communication, Communication, Communication
3. Holistic approach but focus on “burning platforms” and
“quick wins”
4. Identification of Hot Skills needs to be signed off at
executive level. Foolproof process
5. Create higher level of understanding w.r.t. value
employees receive
6. Detailed Implementation Plan
7. Be seen to be doing something
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ho should qualify?
Attraction and retention strategies often target specific roles
within an organisation. This enables organisations to attract and
retain key talent critical to the organisational competency.
• “Hot skill” positions in the
market
• Turnover – staff attrition
• Hiring Cycle
34
ritical
Critical for an organisation to
sustain business objectives
Essential for business
continuity
kills
35
carce
Supply and demand of
skill
Changes over time
kills
36
igh
Identifying consistently
outstanding performers
Respect of peers in their field
liers
37
•
•
•
•
In identifying needs, the following questions could serve as a
template:
What are the hot skills that are critical to the organisation?
Who possesses those skills?
What is important to the people who have those skills?
What is needed to continuously develop and transfer
those skills?
38
urnover
• Southern Africa norm is around 13% (UK -18% / US – 11%)
• Engineering 23%
• Professional Services 18%
• High turnover – usually a targeted approach
39
urnover
• High turnover – usually a targeted approach
2%
40
iring
ycle
Good indicator of attraction and retention requirements
72 to 87 days for hot skills
Remove roadblocks if longer
41
ompetitive
•
•
•
•
emuneration
Ticket to the game and to get on the playing field
Remuneration policy quartile?
Must be market-related to prevent it from becoming a
dissatisfier
Anecdotal remarks like “better pay elsewhere” can be
factually dealt with
REMEMBER
Obviously, paying competitive rates is critical, but simply
throwing money at the problem will not make it go away in the
long term.
42
lexibility
Ranking by age group
18 – 29
30 – 44
45 – 54 55 or older
Base salary
1
2
1
2
Variable pay
2
4
4
6
Shares
3
5
6
5
Medical aid
5
1
5
3
Retirement funding
6
6
3
1
Deferred compensation
4
3
2
4
43
emuneration











ptions
Market Stance
Hot skills treatment
Restraint of trade payments
Sign-on bonuses/Retention bonuses
Sign-on loans
Extended pension arrangements
Flexibility
Short-term incentives
Long-term incentives
Deferred compensation
Rolling or banking of incentives earned
44
lternatives to cash
•
Alternative (flexible) working arrangements
Compressed work week
Flexi-time
Job sharing
Part-time work
Flexi-place
•
Sabbatical Leave
•
Voluntary benefits
•
Psychological Contracts
45
sychological
From
ontract
To
46
Managers Role in Engagement
© The Corporate Executive Board Company
47
The EVP—A Key to Attraction and Commitment
The EVP drives attraction and commitment in the labour market
Attraction Benefits
EVP Attributes
Commitment Benefits
Increased Access to Talent
Organisations with competitive
EVPs are able to increase their
access to candidates on the
labour market by 50%
Lower New-Hire Compensation
Premiums
Improving EVP attractiveness
reduces new-hire compensation
premiums by up to 50%
Increased Employee
Commitment
Organisations with competitive
EVPs are able to improve newhire commitment (performance
and retention) by up to 29%
EVP Defined
The set of attributes that the labour market and employees perceive as
the value they gain through employment in the organisation
Three Organisational Barriers to a Competitive EVP
1
2
Most EVPs are not aligned with
candidate and employee
preferences
© The Corporate Executive Board Company
3
EVPs are not differentiated
from labour market
competitors
Employees do not find the EVP
delivered effectively
48
The focus in retention strategies has shifted
from a one-size-fits-all to customisation.
Each employee is motivated by different
factors. Therefore, retention strategies must
be targeted to individual employees or
groups of employees
49
THANK YOU
for this opportunity
to be with you

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