employee communications
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What does CEO stand for? Customers, Employees, Owners...three critical stakeholders for organizational success. Which one is the most important? Think of your employees as your most valuable asset. What are the best techniques to effectively communicate to your employees, raise morale and foster attraction and retention of the best and the brightest?TRANSCRIPT
Kevin BrettJ410
May 9, 2013
Customers: “Customer Satisfaction”
Employees: ?
Owners: Shareholder Value
Wal-Mart: 2.2 million FedEx: 228,866 Starbucks: 160,000 Amazon: 88,400 Whole Foods: 64,127 Nordstrom: 58,140 Microsoft: 55,455 Intel: 48,350 Nike: 44,000 Cisco: 35,336 Google: 34,311 REI: 10,757
High unemployment; High underemployment
Sense that employees are trapped
Fungible commodity
Depreciating asset
Customer satisfaction; Shareholder value are higher priorities
Talent (engineers, architects, auditors, analysts, lawyers, PR/marketing pros…)
Customer/partner/supplier/shareholder relations
Word-of-mouth advertisers
All great organizations have valuable employee contributors
2012 2013 Academic/expert, 68% 69% Tech Expert, 66% 67% Financial/industry analyst, 46% 51%
Person Like Myself, 65% 61% NGO Representative, 50% 51% Regular Employee, 50% 50% CEO, 38% 43%
64% trust companies that treat their employees well
C-Level listening tours, webcast
Two-way corporate Intranets
Employee magazines via Web
Employee videos via Web
Quarterly conference calls
Three Intranet stories per week to inform and build morale
LSI Logic Employee Communications Preferences/Quantitative Survey of 400 Employees
1. Management Town Hall Meetings, 93%2. Company Intranet Portal (Planet LSI), 73%3. Logically Speaking (Qtr. Magazine), 29%4. LSI World (Qtr. Video), 29%
Result: Shut down magazine and video; emphasized management meetings and intranet;saved $250,000 annually
Companies acquire companies to gain new technology and talent
Approximately 70% of deals fail (e.g., Time-Warner/AOL)
Acquiring companies blow integration
Acquired employees head for the exits
Need to welcome acquired employees make them part of the team
Organization’s most valuable asset
Goes home at night; will they return in a.m.?
Retention becoming a big issue
Treating employees well is a winner
Use digital tools to communicate
Rely on credible communicators
Motivate your best and your brightest
Google – Search engine SAS – Privately held software developer CHG HealthCare Services – Healthcare staffing Boston Consulting Group – Management techniques Wegmans – Supermarkets NetApp – Data storage Hilcorp Energy – Energy Provider Edward Jones – Financial services Ultimate Software – Software Provider Camden Property Trust – Apartment developer
The recession/lousy economy will eventually end
The siren call of the “cherry picker” is in the air
“Retention” will become a big issue
High costs of replacing workers (~$60k)
Employees are shareholders too (ESPP, stock options)/Increasing CSR Interest
Why layoffs?• Insufficient revenue to meet payroll
• Need to restructure company – eliminate businesses
• Need to eliminate redundancies after acquisitions or mergers
• Survival
Survivors
Impacted employees
Customers
Media, especially local media
Financial and market analysts