1MaRS 2013

Attracting & Retaining the BEST Maintenance and Reliability

Professionals

Carol Wenom, CPC/CTSWhitaker Technical

Current Trends• According to BLS, employment of mechanical engineers is

expected to grow 9 % from 2010 to 2020, which is slower than the average for all occupations.

• The present and future are bright for energy jobs.• A major factor impacting the energy industry is that about 1/3

of the U.S. workforce is comprised of baby boomers who are poised to retire to retire in great numbers by the end of this decade.

• Moreover, there are too few younger workers in the pipeline to replace them.

Current Trends• Increase in employees giving notice is a product of two forces:

1. Natural turnover of employees leaving to advance their careers didn’t occur during the recession because jobs were so scarce.

2. The effect of heavy cost-cutting and downsizing during the downturn on workers’ morale.

• Drivers of the drop in job fulfillment include:– Less satisfaction with wages – Less interest in work

Current Trends• Shortage of engineers and other professionals to meet the

demand of updating, retrofitting, and expanding the country’s existing infrastructure.

• Reasons for the shortage of engineers:1. 15% of today’s workforce is composed of Baby Boomers

who now feel more comfortable about retirement. 2. Effect of “brain drain” – the loss of talent and expertise

that occurs when experienced workers leave one industry for another.

• Results: – Number of projects reduced– Projects take longer to complete

Solution• Treat every employee as a critical resource. • An increase in turnover can be costly for companies and

convincing employees to stay might not be cheap either. • Now more than ever, we need to look at how to retain the

employees you already have, and how to find and hire the best talent in today’s marketplace.

Retention

Work IS About Money• Money provides housing, gives children food, sends kids to

college and eventually allows retirement. • Fair benefits and pay are cornerstones of any successful company.• Recent research recommends that to attract the BEST employees

you need to pay MORE than your average-paying counterparts in the marketplace.

• Foster a work environment in which employees feel comfortable asking for a raise.

• Link pay to performance and recognize excellent performance. • Base the upside of bonus potential on the success of both the

employee and the company, and make it limitless within company parameters.

Additional Motivating Factors

• Study by the American Psychological Assn showed that people want more from work than money.

• Additional factors:– Control of their work– Sense of belonging– Growth and development– Leadership– Recognition for performance– Manageable workload– Employee equality– Communication

Control of Work• The ability to impact decisions, setting clear and measurable

goals, clear responsibility for a defined task, job enrichment, tasks performed in the work itself, and recognition for achievement.

• Involve employees in decisions that affect their jobs and the overall direction of the company when possible.

• Involve employees in the discussion about company vision, mission, values, and goals.

• Workplaces that foster employee empowerment, employee enablement, and broader spans of control by managers (in other words, less “micromanaging”) see fewer complaints.

Sense of Belonging• Receiving timely information and communication,

understanding how management makes decisions, opportunities for participation, and some visual demonstration of work progress and accomplishments.

• Managers need to communicate goals, roles and responsibilities so people know what is expected and feel like they’re part of the in-crowd.

Growth and Development• Including education and training, career paths, team

participation, cross-training, and an understanding of managements vision of a successful workplace.

• Provide opportunities within the company for cross-training and career progression.

• Provide the opportunity for career and personal growth through training and education, challenging assignments and more responsibility.

• Provide your employees with the necessary tools and equipment they need to perform their jobs well.

Leadership• People want clear expectations that provide a picture of the

outcomes desired with goal setting and feedback and an appropriate structure or framework.

• Managers who retain staff start by communicating clear expectations to the employee.

• Managers share their picture of what constitutes success for the employee in both the expected deliverables from and the performance of their job.

• Managers provide frequent feedback and make the employee feel valued.

Recognition for Performance

• People need recognition for their individual performance with pay tied to that performance.

• Failure to discipline and fire non-performers is one of the most demotivating actions an organization can take – or fail to take.

• Employees are concerned particularly with pay compression – the differential in pay between new and longer term employees.

• Employees often perceive that newcomers are better paid – and unfortunately often they are.

• Offer performance feedback and praise good efforts and results.

Manageable Workload• Departments are understaffed and employees feel as if their

time is spread too thinly.

• This complaint is becoming worse as layoffs, the economy and a company’s ability to hire experienced staff worsens as their business demands grow.

• To combat this, each company should help employees participate in continuous improvement activities.

Employee Equality• Employees need to believe that each employee is treated

equally with other employees and there is no favoritism.

• Employees expect fair and equal treatment:– Policies, behavioral guidelines, methods for requesting

time off, “plum” assignments, opportunities for development, frequent communication, or just about any other work related decision you can think of.

Communication• A disconnect continues to exist between what employers

think people want at work and what people say they want.

• Employees want frequent meetings with their employers so that these issues can be heard and addressed.

• Listen to employees and provide opportunities for them to communicate with company managers.

• Provide frequent feedback about performance to make the employee feel valued.

• Work culture must foster trust for successful two-way communication.

• A manager’s main job is to support the success of all of his reporting employees.

Successful Hiring

In-House Candidates• Look first at In-House candidates.

• Provide promotional and lateral opportunities for current employees.

• Always post positions internally first.

• Give internal candidates the chance to interview to get to know them better and have them learn more about the needs of the organization.

• The more often you can fill an upper level position internally the more you will invest in the positive morale of your company.

Pay Better Than Competition

• You do get what you pay for in the job market.

• Take a hard look at the compensation that attracts top talent in your industry.

• Attempt to pay better than average to attract and keep the best candidates.

• Sometimes you can luck out and attract a person who is motivated by your specific geographic location for personal reasons, but they will resent their pay scale, feel unappreciated, and leave you for the first good job offer.

Use Benefits to Your Advantage

• Keep your benefits at or above industry standard and add new benefits as often as you can afford them.

• Be sure to educate employees about the cost and value of their benefits so they appreciate how well you are looking out for their needs.

• Things like cafeteria-style benefit plans, profit sharing plans and bonuses that pay for achievements and contributions are highly regarded in the marketplace.

Hire the Best Person• Remember people don’t change that much.

• Don’t waste time try to hire someone that you need to train for missing talent.

• Hire for strengths – don’t expect to develop weak areas of performance, habits and talents.

• Build on what is great about your new employee in the first place.

Promote Positive Image

• Use your website and your interview team to promote that you’re a great employer.

• Take a look at the things that employees value: retention, motivation, recognition, flexibility in work-life balance, promotion, etc.

• You want your employees and your website bragging that your organization is a great place to work.

• Remember that people will believe other employees before they believe corporate literature.

• The key is to build your potential candidate pool before you need it.

Check References

• Be sure that someone (either your own in house HR team or an outside recruiter) checks references prior to interviewing or hiring.

• This will go a long way toward keeping you out of trouble with potential hires.

• Pursue every avenue to assure that the people you hire can do the job, contribute to your growth and development, and have no past “skeletons” that might endanger your current workforce.

Your Public Profile

• Enable current staff members to actively participate in industry professional associations and conferences where they are likely to meet candidates you may want to woo in the future.

• Be sure that your organization is prominent in industry groups on LinkedIn or other web-based sites so that you can attract and connect with potential future employees and be found by job seekers who are most comfortable in the virtual job search world.

Build Relationships• Invest the time to develop a relationship with a recruiting and

search firm that specializes in placement of professionals within your niche and who are tapped into your professional network.

• Frequently the best candidates are working for someone else and they may not even be looking for a new position.

• It's important for hiring companies to shop, investigate and qualify recruiting companies who will best meet their needs.

• Cultivate and develop a trusting relationship that will pay dividends for years to come.

Carol Wenom, CPC/CTSVice President, Whitaker Technical

Past Chair, National Association of Personnel ServicesMember, Pinnacle Society

Phone: 828-298-1009

Email: Carol.Wenom@whitcos.com

Web: WhitakerTechnical.com