© 2002 hr strategies providing superior return on human capital investments robert ebers, president...
TRANSCRIPT
© 2002
HR Strategies ProvidingSuperior Return on Human
Capital Investments
Robert Ebers, PresidentAlyse Parise, Vice PresidentPresented to LISTnet HR SIG
January 9, 2002
© 2002
If you want 1 year of prosperity,
grow grain.
If you want 10 years of prosperity,
grow trees.
If you want 100 years of prosperity,
grow people.
- old Chinese proverb
© 2002
PurposePurpose
Provide strategic context about how to use “Smart HR” practices to build value in your organization.
© 2002
ProcessProcess
10 minutes - Introductions and Overview
15 minutes - “Dumb” HR Practices
20 minutes - Strategic Employee Engagement
10 minutes - Strategic HR Context
25 minutes - "Smart HR" Practices
10 minutes - Summary and Close
© 2002
PayoffPayoff
Information about how “Smart HR” practices can reduce costs, improve quality and increase value.
© 2002
We Help Leadership...We Help Leadership...
Align people with business strategies.
Deal with the "soft" factors driving human performance.
We help managers deal with the toughest issue: their people.
© 2002
Our ExpertiseOur Expertise
Surveys and Assessments
Training and Development
Strategic Planning
Culture Change
Team Building
Coaching
© 2002
NOT ENGAGED ENGAGED
ACTIVELY DISENGAGED
Who Needs Motivation?Who Needs Motivation?
Employees not engaged in their jobs.
Source: Gallup Management Journal, 2001
Employees actively disengaged in their jobs.
Employees engaged in their jobs.
© 2002
Do I know what is expected of me at work?
Do I have the materials and equipment that I need in order to do my work right?
At work, do I have the opportunity to do what I do best every day?
In the past seven days, have I received recognition or praise for doing good work?
Does my supervisor, or someone at work, seem to care about me as a person?
Is there someone at work who encourages my development?
12 Simple Questions12 Simple Questions
© 2002
12 Simple Questions 12 Simple Questions (continued)(continued)
At work, do my opinions seem to count?
Does the mission or purpose of my company make me feel that my job is important?
Are my coworkers committed to doing quality work?
Do I have a best friend at work?
In the past six months, has someone at work talked to me about my progress?
This past year, have I had opportunities at work to learn and grow?
© 2002
Iceberg of IgnoranceIceberg of Ignorance
Ad
ap
ted
Fro
m:
Syd
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y Y
osh
ida
on
Qu
alit
y
© 2002
Employee transactions involve a million
moments of truth where the firm creates
an impression that is favorable or
unfavorable...
Moments of TruthMoments of Truth
© 2002
Costs of Low Employee Costs of Low Employee SatisfactionSatisfaction
Direct cost
Indirect costs much greater, for example,
Loss of discretionary behaviors:Insight
Originality
Intuition
Judgment
Humor
Inspiration
Leadership
Friendship
“Silent Majority”
Cost of new employees and customers
© 2002
Why Bother with Satisfaction?Why Bother with Satisfaction?
New employees are very expensive
Current employees are very valuable
Satisfied employees are very forgiving
Employees respond more strongly to how you treat them than anything else
© 2002
“Smart HR” Practices
More Productive and Engaged Workforce
Loyal Customers
Improved Business Performance...
Service - Profit ChainService - Profit Chain
© 2002
Sustainable Competitive Sustainable Competitive AdvantageAdvantage
“The ability to learn faster than your competitors may be the only sustainable competitive advantage.”
Arie De Geus
People are the key to maximizing
shareholder value and increasing profits
in today’s economy.
© 2002
Why EmployeesWhy Employees
Top Three Non-Compensation-Related Programs High
Performers Say Attract & Retain
Top Three Reasons High Performers Say They Resign
Opportunities for Advancement
Job Redesign
Learning New Skills in Current Job
Dissatisfaction with Company Management
Inadequate Opportunities for Promotion
Dissatisfaction with Pay
STAY LEAVE
Source: 1999 Strategic Rewards, Watson Wyatt
79%
69%
65%
56%
56%
50%
LeaveLeave or Stayor Stay
© 2002
““Smart HR” PracticesSmart HR” PracticesStrongest Links to Financial SuccessStrongest Links to Financial Success
Collegial, Flexible Workplace
Communications
Prudent Use of Resources
Rewards and Accountability
Recruiting
Source: 1999 HCI, Watson Wyatt
© 2002
““Smart HR”: Smart HR”: Collegial, Flexible Collegial, Flexible WorkplaceWorkplace
Flexible work arrangements
Encourage teamwork and cooperation
Perks do not vary with position
High employee satisfaction
All employees on first-name basis
Low emphasis on titles
Source: 1999 HCI, Watson Wyatt
© 2002
"Smart HR": "Smart HR": CommunicationsCommunications
Easy access to communication technologiesAmple opportunity to give ideas and suggestionsFinancial information is sharedInput into how work gets done Business plans and goals are shared
Source: 1999 HCI, Watson Wyatt
© 2002
"Smart HR": "Smart HR": Prudent Use of Prudent Use of ResourcesResources
Profit-sharing based on business unit’s success
Training even during unfavorable times
Training for advancement
Input into peer evaluation
Input into evaluating managers
Source: 1999 HCI, Watson Wyatt
© 2002
"Smart HR": "Smart HR": Rewards and Rewards and AccountabilityAccountability
Stock plan optionsTermination of unacceptable employeesHelp poor performers improve Top performers are significantly paid morePositions paid above market Link pay to business strategy Link performance appraisals to payProfit-sharing linked to firm’s overall success
Source: 1999 HCI, Watson Wyatt
© 2002
"Smart HR": "Smart HR": RecruitingRecruiting
Hire well-equipped professionalsLink recruiting to business plan Reputation as a desirable place to workHire well-equipped hourly new employeesEmployee input on hiring decisions Recruiting strategy for hiring critical positions
Source: 1999 HCI, Watson Wyatt
© 2002
3 Most Important People 3 Most Important People Issues?Issues?
Leadership development
Motivational pay
Training and development of their workforce
Source: Competing in a Global Economy 2001, Watson Wyatt
© 2002
Employee Commitment and Employee Commitment and the Bottom Linethe Bottom Line
Implementing “"Smart HR"” practices will create an energized, enthusiastic, educated workforce.
These practices provide difference between retaining a highly qualified workforce or searching needlessly and expensively for new talent.
© 2002
“Knowledge is the only
instrument of production
that is not subject to
diminishing returns.”
- J.M. Clark
© 2002
Peer Coaching: “Smart HR”Peer Coaching: “Smart HR”
What “Smart HR” Goals would you like to set for yourself?
What would it look like if you accomplished those goals?
What next steps must you take to accomplish your goals?
© 2002
Copyright InfoCopyright Info
The contents, or parts thereof, of “Smart HR Practices,” are provided for review
purposes only and may not be reproduced in any form or by any means without written
permission from Impletec.
88 Old Post RoadMount Sinai, NY 11766Voice: (516) 921-2200Voice: (631) 928-5333Fax: (631) [email protected]
© 2002
[email protected] [email protected]
Dear All, Good afternoon, Some of the slides here would be of interest to you! Have a nice day,
Rajesh