strategies for retaining it staff in a highly competitive environment
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Strategies for Retaining IT Staff in a Highly Competitive Environment. CUMREC 2001 Jim Standen Phoenix, Arizona Manager May 14, 2001 Information Technologies - PowerPoint PPT PresentationTRANSCRIPT
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Strategies for Retaining IT Staff in a Highly Competitive Environment
CUMREC 2001 Jim StandenPhoenix, Arizona ManagerMay 14, 2001 Information Technologies University of Calgary
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Alternate Title
Strategies for Retaining IT Staff in a Highly Competitive, Restrictive, Challenging and Sometimes Frustrating Environment.
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Flow Chart
DefineDefine““Challenging Environment”Challenging Environment”
BackgroundBackground
Prove we HaveProve we HaveGood Staff RetentionGood Staff Retention
Why ?Why ?
10 Strategies10 Strategies
IndustryIndustry StatisticsStatistics
QuestionnairesQuestionnairesIndustry and LocalIndustry and Local
Follow up ResourcesFollow up Resources&&
Q & AQ & A
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Background This initiative of mine started as a
suspicion we were doing well in the IT staff retention arena. Industry was (and is) offering tremendous financial rewards and we could not compete, but our retention rate seemed good. I wanted to look “under the hood.”
Find proof of what we were doing and “grow the program.”
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Background One of my motivations came from
“fear”. A very large loss of staff in one year in 70s. I understand the costs of staff replacement.
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Flow Chart
DefineDefine““Challenging EnvironmentChallenging Environment””
BackgroundBackground
Prove we HaveProve we HaveGood Staff RetentionGood Staff Retention
Why ?Why ?
10 Strategies10 Strategies
IndustryIndustry StatisticsStatistics
QuestionnairesQuestionnairesIndustry and LocalIndustry and Local
Follow up ResourcesFollow up Resources&&
Q & AQ & A
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Where is Calgary ?Alberta
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The City of Calgary
Population 900,000
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Calgary, Alberta, Canada Overview
home of the Calgary Stampede host of 1988 Winter Olympics low cost of living no sales tax (equiv. State tax)
Environment nestled in foothills, close to mountains
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Calgary, Canada (con’t) Industry (Prosperity)
Agriculture Oil/Natural Gas based industry
Texas North vibrant today (Oil - $27, Gas - $5)
Late 80’s, diversification to high tech and manufacturing
boom (silicon Valley North) THE BOTTOM LINE
In IT, low unemployment/high salaries (except public sector)
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And us ...
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The University of Calgary
25,000 full & part-time students20,000 Con’t Ed1,700 Faculty
2,100 Support Staff
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The University of Calgary
16 faculties 11 undergraduate
LawMedicineEnvironmental DesignGraduate StudiesContinuing Education
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The University of Calgary (1966)
Canadian Social Model - Dependent on Government Funding
Province had enormous debt Government Fiscal Agenda - 90’s
eliminate “deficit financing” (by law) eliminate “debt” (high priority) translated to belt-tightening (reduced
fund transfers) to Education and Health care
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The University of Calgary
challenging environment for U. Salary Restrictions (frozen). Base budget reduced over time (as
was health care and K-12 education) No other sources of funding “Fun” projects like converting dozens
of business systems for Y2K (cobol)
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And … It Worked ! Province (oil factor)
No deficits for a decade Huge annual surplus’s, debt almost retired provincial tax dropping Calgary is booming !!!
Business likes “stable environment” IT staff in high demand
University of Calgary Budget dollars returning, but not base
(salary) budget (vote based priorities).
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Summary of the Challenge
University restricted low salaries
City vibrant and expanding high salaries
Little flexibility
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Flow Chart
DefineDefine““Challenging Environment”Challenging Environment”
BackgroundBackground
Prove we HaveProve we HaveGood Staff RetentionGood Staff Retention
Why ?Why ?
10 Strategies10 Strategies
IndustryIndustry StatisticsStatistics
QuestionnairesQuestionnairesIndustry and LocalIndustry and Local
Follow up ResourcesFollow up Resources&&
Q & AQ & A
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IT Staff Retention Rate
How to measure ? Select an appropriate group IT Department Only
“Admin” staff - like down town 56 staff
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Measuring Success
Statistics derived from our Human Resources data bases Normalized
subtracted Natural Retirees accommodate those who left and
returned contracts summer students internal transfers
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Measuring Success Of those staff that were here 10 years
ago: we retained 80%
not coasters
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Measuring Success
During those 10 years We have hired 34 people We retained 27 or 79%.
I have personally not lost a staff member since 1994.
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Measuring Success
Industry Statistics - Courtesy CIO Canada
magazine, February, 2000. Page 11. In Canada, current annual IT employee
turnover rate averages 9% Historically, the turnover rate has been
as high as 20%.
(Ours is approximately 2%)
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Summary
In a highly competitive, restrictive and challenging environment, we have high staff retention.
Why ?
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Flow Chart
DefineDefine““Challenging Environment”Challenging Environment”
BackgroundBackground
Prove we HaveProve we HaveGood Staff RetentionGood Staff Retention
Why ?Why ?
10 Strategies10 Strategies
IndustryIndustry StatisticsStatistics
QuestionnairesQuestionnairesIndustry and LocalIndustry and Local
Follow up ResourcesFollow up Resources&&
Q & AQ & A
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Why our success ?
What are our hidden assets ?
How to measure?
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Why
How to get a handle on “Why ?” What is an ideal job ? How good are we at providing it ?
How do you measure how well you are doing? (Unlikely to ask those staff who left).
Needed a “starting point” for understanding why my staff work for me.
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Measuring Success 2000 survey report by
Pricewaterhousecoopers and Computerworld Canada (from newspaper)
rate 0 (low) -10 High) the importance of 37 statements - average calculated. Ranked from most to least importance.
I list the first 9 (most desirable). The others are available from the presentation follow-up resources.
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Across Canada
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How important is it to you that an employer (It is very that my employer ….) Overall Rating
Treat you with respect? 1
Have supportive, effective management? 2
Provide full health benefits (medical, dental) ? 3
Provide full reimbursement for training expenses? 4
Provide opportunities for advancement? 5
Offer access to training specific to InformationTechnology?
6
Allow you to work on assignments you can beproud of?
7
Provide the latest technology to work with? 8
Provide formal training? 9
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Some Observations
Salary is not as important as other job characteristics “Provide a high base salary”
rated # 11 out of 37 traits “Provide pay-for-performance/bonuses?”
rated # 24 “Include stock options as compensation?”
rated # 32
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Some Observations
High Ranking was: Training (#4, #6 and #9) respectful treatment (#1), effectively
managed (#2) and rewarding job role (#7).
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Measuring Success
I initiated my own survey Same questions/same ranking (0-10).
Averages taken and ranked in order from most to least importance.
Added another criteria how well are we doing at achieving
your goals? Ranked from most to least importance.
10 staff
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Measuring Success
Ratings first numeric column has overall
importance second has “how well are we
doing” I list the first 9 (most important).
The others are available from the presentation follow-up resources.
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My Staff
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How important is it to you that an employer (It is very that my employer ….)Have a relaxed workplace Environment? 1 ?
Treat you with Respect? 2 ?
Allow you to work on assignments you are proud of? 3 ?
Provide full health benefits (dental, medical)? 4 ?
Offer access to IT based training? 5 ?
Have supporting, effective management ? 6 ?
Provide employment security? 7 ?
Provide formal Training ? 8 ?
Provide full reimbursement for training expenses ? 9 ?
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Some Observations
On the salary topic, similar results to the national survey “Provide a high base salary”
rated # 22 (11) out of 37 traits (good because salary increments not an option)
“Provide pay-for-performance/bonuses?” rated # 27 (24)
“Include stock options as compensation” rated # 36 (32)
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Some Observations
Other results similar as well. #5, #8 and #9 was Training (#4, #6 and
#9) #2 - respectful treatment (#1) #6 - effectively managed (#2) #3 - rewarding job role (#7) #4 - Health care benefits (#3) #7 - Employment Security (#18) #1 - Relaxed Environment (#12)
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How are we doing at meeting these needs:Have a relaxed workplace Environment? 1 6
Treat you with Respect? 2 14
Allow you to work on assignments you are proud of? 3 12
Provide full health benefits (dental, medical)? 4 16
Offer access to IT based training? 5 26
Have supporting, effective management ? 6 17
Provide employment security? 7 4
Provide formal Training ? 8 33
Provide full reimbursement for training expenses ? 9 23
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Some Observations
ISSUES - TRAINING Although Training is highly desired
(#5, #8 and #9) the employees rated us at delivering (#26, #33 and #23).
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Some Observations
ISSUES - MANAGEMENT “Have supportive, effective
management” (#6) rated 17th. On discussion, I determined this was for
the full organization. I followed up with yet another survey splitting “Management - me” and “management - overall”. This moved me to 12th and the remaining management to 25th.
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Follow up Activities
I also followed up the survey with “are there any other questions we should be asking ?” none were suggested
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Summary of the Survey Results
Staff are unsatisfied with education in General (we are not delivering to their expectations)
Staff unsatisfied with Management
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Flow Chart
DefineDefine““Challenging Environment”Challenging Environment”
BackgroundBackground
Prove we HaveProve we HaveGood Staff RetentionGood Staff Retention
Why ?Why ?
10 Strategies10 Strategies
IndustryIndustry StatisticsStatistics
QuestionnairesQuestionnairesIndustry and LocalIndustry and Local
Follow up resourcesFollow up resources&&
Q & AQ & A
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Guidelines
I created 10 guidelines for myself (Jim’s top 10). Examples from my team (10 staff) connected to survey responses
consider in your own environment. A smorgasbord of options pick examples which work for you.
These are not one size fits all solutions.
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1. Stability
Higher Ed is less likely to Merge, Consolidate, go bankrupt. Less susceptible to market forces (tech falldown)
Example: employee who worked for a high tech firm down town for 30 days before it caved. Came to us for a long term stable environment.
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1. Stability (cont’d)
Employee Rewards: stability. reduced stress.
My Survey - in order of Importance #6 - Provide supportive, effective
Management #7 - Provide Employment Security
Consider: selling your job environment for the stability it provides.
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2. Broad Working Role Higher Ed, due to necessity tends to have
broad based job roles. Example: On a recent project, one of our
employees performed a Cradle to grave project. The project included:
gathering user specifications (with client) software design, hardware configuration, database design coding and testing (with client) implementation met with client for sign off / thank you’s
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2. Broad Working Role (cont’d) Employee Rewards:
Heavy involvement with client (satisfaction). Pride Interest, less likely for boredom to set in Visible Work
My Survey - in order of Importance #19 - Work on a variety of projects
Consider: selling your job position based on broad based, broad experiential roles.
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3. Rewarding Projects Higher Ed tends to do projects that are
important and have a high expectation of completion.
Example: One employee, in a previous job role, worked for two years and never completed a project. They were changed, delayed, or outright cancelled. He took a salary cut to join our department and thrives in our environment.
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3. Rewarding Projects (cont’d) Employee Rewards:
pride closer relationship with institution closure to projects
My Survey - in order of Importance #3 - Assignments you can be proud of #15 - Provide challenging assignments #18 - Encourage creative work solutions # 21 - Emphasize the strategic role of IT
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3. Rewarding Projects (cont’d) Consider: selling your job position
based on the “cool” and “important” projects.
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4. The Good Life Higher Ed can provide normal working
hours. Example: One employee, left a 30 year
downtown career path of 16 hour days and took a significant salary cut. He indicated his spouse was having trouble remembering his name.
Employee Rewards: a “real” life
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4. The Good Life My Survey - in order of Importance
#10 - Not require a lot of overtime hours Consider: selling your job position
based on less stress, regular working hours, and a partnership with a real life.
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5. Flexibility - Time Higher Ed can provide a flexible work
environment in terms of time. Example: One employee, has a viable
Karate career. We do all in our power to ensure the Karate career and the work career do not conflict with each other.
My Survey - in order of Importance #13 - Allow flexible working hours
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5. Flexibility - Time (con’t) Possible Rewards/Other options
3rd Friday off policy, working Monday through Thursday.
“driven” younger staff Consider: selling your job position
based your ability to support flex time.
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6. Flexibility - Location Higher Ed can provide (for certain
employees), a job environment which is flexible in terms of location.
Examples: telecommuting from Victoria. 5 years. Telecommuting (Jim from Salt Spring
Island, BC) Employee Rewards
no commute times quiet environment, variable environment
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6. Flexibility - Location My Survey - in order of Importance
#23 - offer the option to work from home Consider: selling your job position
based on the ability to work from alternative locations
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7. Educational Opportunities Higher Ed can provide funding for
educational opportunities Example: One employee is taking his
masters of software design part time. The University is funding the program costs and work time can be adjusted to attend courses. Others are involved in teaching activities.
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7. Educational Opportunities Employee Rewards:
feel more affinity with the institution My Survey - in order of Importance
#5 - offer access to training specific to IT #8 - provide formal training #9 - provide full reimbursement for
training #16 - Emphasize the importance of
training
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7. Educational Opportunities Consider: selling your job position
based on the opportunities for educational growth. Learning and/or teaching.
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8. Recognition of Achievement Higher Ed can take the time to say “thank
you.” Example: One employee came to the
University from an oppressive working environment. Requests were demands. No gratitude.
Employee Rewards: open (supportive) environment affinity to work environment Another option - team appreciation lunches
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8. Recognition of Achievement My Survey - in order of Importance
#2 - treat you with respect #14 - Provide opportunities for
advancement Consider: selling your job position
based on “we will appreciate what you do.” We will say “thank you.” We will help you grow in your career.
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9. Learning and Mentoring Higher Ed can provide a nurturing
learning and mentoring environment from long term staff.
Example: One employee came to the University from an environment where statements such as “we pay you to know these things - go figure it out” were common. No support provided.
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9. Learning and Mentoring (con’t) Employee Rewards:
a personal investment in the employee is important (caring)
My Survey - in order of Importance #17 - Provide regular feedback on
performance Consider: selling your job position
based on “we will provide a rich and supportive learning environment.” We will provide direction and feedback.
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10. Environment Higher Ed is normally located as an
island or pocket away from the down town or industrial environment. It can have a relaxed working environment.
Example: UofC Center of Learning Libraries, bookstore in Calgary Clean Air See the sky Fitness Facilities (pools, fields, courts, ovals)
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10. Environment (cont’d) Employee Rewards:
too numerous to mention My Survey - in order of Importance
#1 - Relaxed workplace environment #20 - Relaxed dress code
Consider: selling your job position based on working in a park-like setting and a comfortable working environment.
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Top 10 Summary My top 10 - Survey Hits:
#s 1,2,3,5,6,7,8,9,10,13,14,15,16,17,18,19,20,21,23
Misses from the top 20 #4 (Provide full health care benefits) #11 (work in same province) #12 (latest technology to work with)
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Presentation SummaryDoes the process of gathering information from your staff take time ? Yes, but significantly less time than hiring and training new staff. It is well worth it.
I believe it is our employee job satisfaction that keep them from bailing ship for higher salaries.
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Presentation SummaryIt is working for us.
Now hiring internship students at $19,000 US/year.
4 resumes hit my desk during January, 2001.
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Why are our staff staying ? Employment Conditions
flex time flex location broad working roles mentoring/support stable environment educational opportunities
(personal growth) low stress A “real” life
Assignments that are: meaningful interesting innovative challenging visible important “valued” REWARDING
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WRKor
WRK
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So what do I do now ? #1. I will continue to gather input from
my staff. More often and in greater detail. Informal surveys (keep in touch)
3 things we are doing well (and continue to to support them)
3 things we can improve upon (and really try to do them)
informal (coffee room) discussions separate from annual HR formal review
process
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So what do I do now ? #2. I will attempt to correct identified
deficiencies awareness of available educational
opportunities support for participation(I want you to) seek to obtain additional funding for
education determine where my staff think
management is lacking and attempt to resolve the problem
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So what do I do now (con’t) ? #3. I will continue to refine and
create an ideal working environment for my staff. I will concentrate on the top 15
responses to make improvements I will look for opportunities to offer my
staff continuous challenge.
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Flow Chart
DefineDefine““Challenging Environment”Challenging Environment”
BackgroundBackground
Prove we HaveProve we HaveGood Staff RetentionGood Staff Retention
Why ?Why ?
10 Strategies10 Strategies
IndustryIndustry StatisticsStatistics
QuestionnairesQuestionnairesIndustry and LocalIndustry and Local
Follow up resourcesFollow up resources&&
Q & AQ & A
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Follow Up Resources
http://www.ucalgary.ca/~jstanden/cumrec2001
• My paper• My power point presentation• The PricewaterhouseCoopers Survey• My local survey
Questions ?