The Perfect Fit

Employees Are Like Lightbulbs, They Burn Out And Are Then Discarded!

There was a terrific copywrited article in Sunday's Post-Dispatch, writted by a Post business columnist, Jim Gallagher "Burnt-out Workers Biding Time".  The article was detailing how, as the economy improves, workers who have been waiting for the opportunity to leave their present employer will do exactly that . . . and as soon as possible.  I've talked about the need for retention and succession planning many times in this blog, most recently "Separating Executive Role 'Engagement' From Job 'Satisfaction'".  Employers simply do not take enough of a proactive role to insure their best performing employees are trained or retained.

Mr. Gallagher's thoughts are supported with a survey conducted by Dr. Ronald Leopole, VP of U.S. Business for MetLife, the conclusion of which was overwhelmingly reached, that American employees "are ticked off and hoping to bail out". The study also identified that "40% of the surveyed workers feel like they're working harder, while 25% felt less secure in their jobs".  That mix is not sustainable in the long term.

You can look around your "open" office and likely figure out which of your colleagues are among those ready to bolt.  Employers have been taking advantage of employees, asking them for increased hours and in some cases reduced wages during the recession.  Employees understood the need, and basically had to comply, or lose their job.  There were no other job options.  Employees don't forget. Now that the economy is improving, employers better get with it.  Retain the train the employees you have . . . find ways to give back to them.

The issue is not just money.  I often talk about employers needing to respect their employees, stop taking them for granted and do something for them.  A raise would be wonderful, but it's more than that.  How about some training. How about helping your employees learn more about the realities of how the world of commerce is changing around us.  Bring in a speaker for a "Lunch and Learn", or send your more senior top performers to conferences or other specialized training.  Let them know you care and you want to help them grow!  Find ways to support their professional growth . . .it doesn't have to be expensive.

With the environment as volatile as it is, and with the market opening up with more frequent "better" career opportunities, be sure your resume is current and your LinkedIn Profile is complete.  Be ready to respond quickly when you identify a position that intrigues you.  Enlist your co-workers to identify topics of mutual professional interest, and ask your manager for programs that can help you learn more about that topic.  If necessary, explain to the manager how a program will help you do your job better.  You shouldn't have to explain that professional training will contribute to making you a more engaged employee.  That will make you, your clients and your manager happy too!

 

Separating Executive Role 'Engagement' From Job 'Satisfaction'

In a recent article in the ExecuNet Newsletter ("Market intelligence and insight for maximizing executive talent management") written by Joe McCool, I was struck by how important the difference between "engagement" and "satisfaction" is.  I was also struck by how significant that difference is to every kind of organization, and for every level of employee in the organization.

Here's what Joe wrote:

"The second annual Executive Retention Report by ExecuNet and Finnegan Mackenzie found that over 90 percent of U.S. CEOs and other management leaders believe an executive can be engaged in their work and with their employer but still open to considering new career opportunities. This was reflected in their attitudes about their own sense of engagement and job satisfaction.

Exactly 93 percent of CEOs, presidents and top business executives report they're engaged in their current role, but only 75 percent say they're actually satisfied with it. Also, roughly 7-in-10 other 'C-Suite' executives and others at the vice president, director and manager levels are likewise engaged in their day-to-day work, but only 5-in-10 say they feel a sense of overall job satisfaction.

"Companies should take the time now to consider how their potential failure to retain their best management executives will weigh on corporate productivity, financial results and succession plans in the coming year," says ExecuNet's Mark Anderson. "Even before this recovery takes full effect, it's clear that surprisingly high numbers of executives are restless and eager to explore what a more growth-oriented economy has in store for them."

Further, Anderson commented, "If companies can't retain their executive leaders and don't have the right teams in place, they simply won't reach their business objectives for the coming year. For that reason, retention risk should be on the corporate agenda now."

To stave off key executive defections, says Richard Finnegan, principal of Finnegan Mackenzie - The Retention Firm, and author of Rethinking Retention In Good Times And Bad, companies should consider conducting 'stay interviews' to rebuild trust with key business leaders, get them re-engaged and explore what the company could do to increase their job satisfaction, and get them focused on the potential upside of staying."

Having 50% of your organizations' leadership with their job obviously means that 50% are not satisfied.  That will affect productivity, morale and the company culture in a negative way.  It's easy to understand how improving  satisfaction on the job (at every level) will increase productivity, morale and culture.

I've previously written about the "restlessness" of employees at the moment (resulting from their feelings of overwork and undervalue)

Separating Executive Role 'Engagement' From Job 'Satisfaction'

In a recent article in the ExecuNet Newsletter ("Market intelligence and insight for maximizing executive talent management") written by Joe McCool, I was struck by how important the difference between "engagement" and "satisfaction" is.  I was also struck by how significant that difference is to every kind of organization, and for every level of employee in that organization.

Here's what Joe wrote:

"The second annual Executive Retention Report by ExecuNet and Finnegan Mackenzie found that over 90 percent of U.S. CEOs and other management leaders believe an executive can be engaged in their work and with their employer but still open to considering new career opportunities. This was reflected in their attitudes about their own sense of engagement and job satisfaction.

Exactly 93 percent of CEOs, presidents and top business executives report they're engaged in their current role, but only 75 percent say they're actually satisfied with it. Also, roughly 7-in-10 other 'C-Suite' executives and others at the vice president, director and manager levels are likewise engaged in their day-to-day work, but only 5-in-10 say they feel a sense of overall job satisfaction.

"Companies should take the time now to consider how their potential failure to retain their best management executives will weigh on corporate productivity, financial results and succession plans in the coming year," says ExecuNet's Mark Anderson. "Even before this recovery takes full effect, it's clear that surprisingly high numbers of executives are restless and eager to explore what a more growth-oriented economy has in store for them."

Further, Anderson commented, "If companies can't retain their executive leaders and don't have the right teams in place, they simply won't reach their business objectives for the coming year. For that reason, retention risk should be on the corporate agenda now."

To stave off key executive defections, says Richard Finnegan, principal of Finnegan Mackenzie - The Retention Firm, and author of Rethinking Retention In Good Times And Bad, companies should consider conducting 'stay interviews' to rebuild trust with key business leaders, get them re-engaged and explore what the company could do to increase their job satisfaction, and get them focused on the potential upside of staying."

Having 50% of your organizations' leadership satisfied with their job obviously means that 50% are not satisfied.  That will affect productivity, morale and the company culture in a negative way.  It's easy to understand how improving  satisfaction on the job (at every level) will increase productivity, morale and culture.  It will also make the employee happier and much more likely to stay for the longer term.

The idea of "stay interviews" is so simple . . . and so powerful.  Why are employers so afraid of actually spending some time intereacting and getting to know their employees?  The result o that interview doesn't necessarily have to mean additional 'expense' for the employer.  My bet is that employees would be thrilled to have a "real" conversation about their professional goals with their boss.  I think the idea behind having the conversation would have significant value in itself.

I've previously written about the "restlessness" of employees at the moment (resulting from their feelings of overwork and undervalue).  I've written about how important succession planning is, at every level of the organization.  The ExecuNet article is just more evidence of how consistently proactive organizations must be to maintain (or create) a healthy culture.

Are you engaged or satisfied?  If you had the opportunity to sit down with your boss for some personal career planning, would you know what you'd like to ask for (beyond more money and/or time off)?

Four Ways To Retain Your Best Employees

As you know, I continually encourage our clients to think about the best ways to retain their existing premier employees.  It's not always about the money (but of course, money does matter!)!  There are other, sometimes simple (and free) things employers and/or executives can do to support their employees.  Why hire a recruiter to find the very best personnel, when you discourage them and don't provide a path to career growth?  I thought this following article by Amanda Stillwagon of the "Small Business CEO" blog was succinct and helpful.  Some of this seems so obvious . . . believe me when I tell you it isn't.  So, here's a little reminder!

"There are two main problems concerning human resources today. The first one is the unemployment rate which causes grossly underqualified people to apply to your company and the second is employee retention. For business owners, retaining your best employees may pose a challenge.

Entrepreneurs know how competitive hiring is in the business sector and the fear of employees jumping the fence to join a competitor is more palpable now more than ever. It is hard to find good employees but it is even harder to promote company loyalty. Once you find top quality people to work for you, you have to ensure that you can keep them because retaining quality employees is one of the keys to ensure the growth of your business.

Here are some tips on what you can do to keep the best employees under your wing:

1. Give compensation where it is due. Not all employees are all about the money. You have to be fair in giving out compensation but you also need to ensure that you are within your budget. If your employee deserves a raise because of their performance and you can see that you are well within budget even after you’ve given the raise, then do so. Giving your employees fair pay makes them feel that their contributions to the company are being appreciated which in turn would make them more committed to the company.

2. Enforce an open desk policy. You need to make your employees feel that what they have to say is important because it really is. Whether they need to air a grudge or would offer you some suggestions for the betterment of the company, you need to hear them out. Some of the best ideas come from employees themselves since they are already familiar with the ropes of the business.

3. Provide growth opportunities. The most common reason for employees leaving jobs they have had for the longest time is because of dissatisfaction when it comes to growth opportunities. Do not impede the growth of your employees just because they’re already doing a great job where they are. You need to implement seminars and conferences which would promote self-development. You also need to constantly give challenges to your employees by way of giving them new responsibilities every now and then. This would help your employees acquire new skill sets, make them feel good about themselves and eliminate boredom and monotony in the workplace.

4. Be a flexible and transparent employer. You have to realize the importance of having a work-life balance. You might be a workaholic who needs to work 24 hours a day, 7 days a week for you to be productive, leaving little time for your personal life. While that might work for you, you cannot expect the same from your employees. If needed, you have to let them take some time off for a well-deserved vacation or other situations which needs a little understanding on your part. Do not begrudge your best employees of the time they need for themselves. This would help solve unease and stress in the workplace.

These tips are only meant to be a guide of what you can do to help foster loyalty. Whichever method or tactic you may take you need to remember one very important aspect: always lead with your heart."

Do the right thing . . . respect your employees.  Mutual respect creates a happy and productive workforce!

Executive Recruiters and Unemployment

I'm going to share some thoughts from a retained recruiter and colleague of mine from the International Retained Search Associates, Ted Konnerth.  Along with his superb golf game, Ted is a thoughtful guy and the leading recruiter in the electrical manufacturing and distribution industries.  You can learn more about his company Egret Consulting here.  I've done a bit of editing to apply these thoughts to the marketing/advertising industry.

Most people assume that with high unemployment, the availability of quality talent is as easy as posting an opening and waiting for the flow of hundreds of well-qualified applicants. Let’s disabuse you of that notion and begin by using facts:

1. Unemployment is 9.5% of the working population

2. Unemployment for those with a college degree is 4.8%

3. Baby boomers have begun to retire, with estimates of that pace predicted to quicken as the stock market and therefore retirement accounts return to levels prior to the Great Recession.

4. Emerging markets in the marketing industry are attracting experienced talent away from traditional employers, thereby depleting the available pool.

5. Levels of employee engagement are at record low levels, which will drive employers demand for more replacement talent*.

The majority of the unemployed are laborers; skilled or unskilled. Their plight is unlikely to dramatically improve going forward as many of their jobs have been shipped offshore. Additionally, the talent skills that the emerging companies need today require far more education than traditional laborers. College or technical school diploma-level attributes in IT, computer sciences, electronics and semi-conductors are in high demand.

The US already has a shortage of technology professionals, and the same is true as technology relates to the changing marketing methodology and expanding channels.   We’ve seen the demand and wages increasing dramatically for online, mobile and social media marketing even in the past two years.  Those who are expert in those new media areas, those who are leaders and/or innovators are scarce and not easily hired away from existing employers: relocation, signing bonuses, vacations, etc. are being offered to the premier players to try to attract them.

The war for talent issue has been moving forward for the past ten years. We were all forewarned this day was coming, but in the teeth of a deep recession it’s difficult to rationally increase hiring to prepare for the imminent shortage. Leading companies are already doing exactly that. Others are making a renewed effort to retain their own top performers and offering them professional training as part of a succession plan.

If there is a call to action, I would suggest three specific actions:

1. Enact retention strategies for your top talent immediately. Losing a key contributor is extremely costly, not just in the replacement costs, but in the lost down time to ramp up the replacement.

2. Implement succession plans for the top talent. A recent study found that less than 50% of corporations have a defined succession plan for their CEO’s (or any of their management team).

3.  Create a recruitment plan that addresses three issues:a. Building a bench. Start a college recruitment program.

a. Building a bench. Start a college recruitment program.

b. Direct recruitment department. Focused on the college recruiting and the lower level positions that experience higher turnover rates, an internal recruitment organization can effectively meet these needs.

c. Sourcing partnership. For critical talent, that can only be identified through direct recruitment processes, identify a third party firm who can partner with your organization, acting as a pure recruitment organization and as a talent scout for opportunistic hires when ‘best athletes’ become available.

The next ten years will be exciting on so many levels: new technologies, new markets of growth and a melding of technology and devices into changing channels. There will be winners and losers in this battle as always, but for those who view the path to winning through attraction of qualified talent, the odds will be significantly higher.

* Global Employee Engagement Declining

Succession Planning Is Serious Business

As I mentioned in a previous post "Succession Planning Is Essential For Growth And Stability", succession planning is not just for the owners and principals of an organization.  It should apply to every position in a company that has direct reports . . . why?  Succession planning is additionally beneficial because it addresses most companies' other major concern, employee retention.

When asking employees what they like most about their jobs, it's surprising how often the answer isn't "money".  In fact, we've all heard it and most of us agree with the statement "it's not all about money".  Well then, what is it about?  It's about professional growth (through mentoring, education and training), being treated with respect, being allowed to contribute and being recognized for that contribution.  Succession planning can (and should) support every one of those activities.

As Guido M.J. de Kong says hin his article "Building Your Bench Strength":

"Selecting and developing future managers is a crucial task -- and a big concern for many companies, particularly for leadership roles. In a study by the Corporate Leadership Council, 72% of companies predict they'll have an increasing number of leadership vacancies over the next three to five years. At the same time, 76% are "less than confident" in their abilities to adequately staff these positions.

Requirements for success:

Companies that create an effective succession management process:

• Quickly anticipate and fill succession gaps

• Identify employees with high management potential and actively plan their careers and development to build "bench strength"

• Align their "people strategy" with their "business strategy." As a company grows and its strategy evolves, its leadership needs can change significantly. To meet needs like these, companies must regularly discuss their talent recruitment and development practices.

• When organizations meet these requirements, they create the kind of leadership and management capacity that delivers sustainable business results. They also reduce the range in performance in key roles, minimize attrition among top performers, and promote a high internal hiring rate."

When a company aligns "business strategy" with "people strategy", both the people and the business win.  It seems like such a simple notion, one has to wonder why companies don't spend more time thinking about succession planning and implementing it in their culture. 

There are many other terms for succession planning, all of which indicate the obvious common sense benefits to the practice.  Phrases like "workforce planning", "leadership development", "leadership training" and "talent management" are all excellent action phrases. 

Companies should be hiring candidates for leadership roles that have the capability and desire to grow, take on additional responsibilities and support the company's growth and success.  Assuming that most employers understand that, why don't they make more of an effort to train and retain star performers?  "It's too expensive" is the most frequent response.

When you compare the cost of conferences, or seminars or graduate level coursework with the cost of hiring new employees, training and education become extremely cost effective.  Existing employees understand their clients' expectations along with their companies.  There is value in cultural knowledge.  There is value in stability and steady growth.  Training leads to retention.

As an executive in your organization, are you doing everything you can to deliver (or at lead be an advocate for) ongoing training and education?  Why not?