Retaining IT employees by being the "Employer of Choice” Andrew Strathdee - Director, Corporate HR Partners Ltd.
Jan 20, 2016
Retaining IT employees by being the "Employer of Choice”
Andrew Strathdee - Director,
Corporate HR Partners Ltd.
Home Truths
• Retention is a voluntary act - employees stay because they want to
• People will leave…..the questions are when and why
Key Questions
• What makes us attractive as an employer?
• What are we doing which makes employees dissatisfied?
• How are other organisations dealing with the problem?
• How do we hang on to our employees ……and longer?
Competitor Information
• Competitor Strategies - Towers Perrin Survey of over 300 European Co's - Spring 1997– Reward and Retain Best Performers
– Link Pay to Organisations Key Success factors
– Achieve/Maintain Market Competitiveness
– Pay for Competence
– Reward High Productivity, Quality and Customer Satisfaction
What was being done?
• Introduction of variable pay• Reviewing Performance assessment and appraisal
and linking to pay and Career/skills development • Reviewing pay and grading structures• Extending Job/Role Evaluation• Reviewing benefits, Terms and conditions/Perks as
part of Total Compensation• Introduction of Share Schemes
Why the Change?
• Business Model is changing– Globalisation of markets and technology
– Move to Customer and Quality Focus
– Address Performance Linkeage
– linking pay to business performance
– Competition for Staff
– The demographic time bomb is still ticking.…
– Need for Flexibility
– Improve Competitiveness
Why the Change?
– Perceived Need for Better Pay differentiation based on performance
– Reflect flatter organisation structures
– Respond more rapidly to organisational change
– Reflect broader employee roles
– Enhance ability to value individual skills and competencies
– Increase flexibility of base pay
Employer of Choice• However, whilst.....…
– Employee Commitment was seen as vital
– People were seen as the differentiating factor
– Winning Employee Commitment was the major reason for introducing changes to reward
• There was– Little consequent improvement reported in employee
commitment and morale
– Hardly any changes introduced with the benefit of employee consultation - only 12% reported doing this...........
Are we surprised?
Being the Employer of Choice........
• Employees need to be part of solution– We need to listen to them
– We need the data - look at Opinion Survey Results as well as
• Focus Groups
• Manager Reports
• HR Statistics
– They tell you the hot issues - we all need to address them.
Employee's perceptions at Lotus• Growing Up Lotus... learn to be a big corporation without losing sight of the core
values that make Lotus unique.
• Effective Management... ensure that managers are as skilled in managing people as they are in developing software.
• Customer Connection... bridge the gap between what employees know about satisfying customers and what Lotus does to effectively deliver that expertise to those customers.
• Market Attention... stay ahead of competitors through smart investments, aggressive marketing, and wise use of resources.
• Valuing the Individual... provide fair reviews and reward programs, alternative career development options, inclusive communication, and consistent administration of policies and programs.
Source - Towers Perrin Lotus Opinion Survey
Employee's perceptions - why choose Lotus?
• Lotus... Keep "being Lotus" without losing sight of the core values that make Lotus unique , ie. not bureaucratic, delegates decision -making.
• Effective Management... Develop Managers who have time to consult, coach, listen and lead - management is a skill which needs time and training.
• Winning Team... stay ahead of competitors and building public image that makes you proud to work for Lotus.
• Valuing the Individual...Offer training and career development options, inclusive communication, consistent administration of policies and programs and facilitate the integration of work and family.
• Pay and Benefits...Not generally an issue
Source - Towers Perrin Lotus Opinion Survey
Employer of Choice - Employee's perceptions
Q? What would most likely help to retain good performers?
% selectedBetter career advancement opportunities 27%More effective management of people 20%Better pay and benefits 15%Less work pressure and stress 10%Access to the latest technology Technical
Source - Towers Perrin Lotus Opinion Survey
Which one item would most likely result in retaining good performers at your company? (Result in Percentages)
13
10
7
3
11
36
6
2
12
More effective management of people
Better pay and benefits
Less work pressure and stress
More interesting work
Better career advancement opportunities
More confidence in company’s plans / uppermanagement
More resources and budget to do your job
More role models for you
Share schemes
Employee’s Perceptions
Source: CHRP/Hayward Survey - 1999
Employee’s perceptions
Compensation and benefits
Access to best technologies
Recognition and respect
Advancement opportunities
Quality of co-workers
Nature of the work
0 5 10 15 20 25 30
Percentages
% in Range
The following six items could motivate you to do your best work.
(Divide 100 points between the six elements, giving the most points to the items that motivate you the most, and the least points to those that do not. You may put all your points on one item, but your total must = 100.)
Source: CHRP/Hayward Survey - 1999
How do you rate your pay compared to what you believe other companies offer for similar work?
Mu
ch
Lo
we
r
Sm
wh
t L
ow
e
Ab
ou
t S
am
e
Sm
wh
at
Hig
h
Mu
ch
Hig
he
rRating
0
10
20
30
40
50
60
Pe
rce
nta
ge
% in range
Your Pay vs Other Companies
Employee’s Perceptions
Source: CHRP/Hayward Survey - 1999
How would you rate your pay compared to what others in your location doing similar work receive?
Mu
ch
Lo
we
r
Sm
wh
t L
ow
e
Ab
ou
t S
am
e
Sm
wh
at
Hig
h
Mu
ch
Hig
he
rRating
0
10
20
30
40
50
60
Pe
rce
nta
ge
% in range
Your Pay vs Others in your company
Employee’s Perceptions
Source: CHRP/Hayward Survey - 1999
How would you rate your benefits package compared to what you believe other companies offer?
Mu
ch
Wo
rse
Sm
wh
t W
ors
Ab
ou
t S
am
e
Sm
wh
t B
ett
e
Mu
ch
Be
tte
r
Rating
0
10
20
30
40
Pe
rce
nta
ge
% in Range
Benefits Package vs Other Companies
Employee’s Perceptions
Source: CHRP/Hayward Survey - 1999
To what extent is your company successful in attracting and retaining the people it needs with its current pay and benefits package?
V U
ns
uc
ce
ss
Sm
wh
t U
ns
u
No
Dif
fere
nt
Mo
re S
uc
ce
s
V S
uc
ce
ss
ful
Rating
0
10
20
30
40
50
Pe
rce
nta
ge
% in Range
Attraction and retention by package
Employee’s Perceptions
Source: CHRP/Hayward Survey - 1999
Employee’s PerceptionsTo what extent do you agree that compared to other companies of the same size, your company will provide good opportunities for you to advance your career and develop your potential?
Source: CHRP/Hayward Survey - 1999
1 2 3 4 5
1 = Strongly Agree, 5 = Strongly Disagree
0
5
10
15
20
25
30
35
Pe
rce
nta
ge
% in range
Employee Perceptions
1 2 3 4 5
1 = One of the worst, 5 = One of the best
0
10
20
30
40
Pe
rce
nta
ge
% in range
In general, compared to other companies in your industry, how would you rate your company as an employer?
Source: CHRP/Hayward Survey - 1999
Employee Perceptions
1 2 3 4 5
1 = Very unlikely, 5 = Very likely
0
10
20
30
40
50
60
Pe
rce
nta
ge
% in range
Is it likely that you would look for a job outside your current employer in the next six months?
Source: CHRP/Hayward Survey - 1999
Employee Perceptions
1 2 3 4 5
Clearly changing 1 = for the worst, 5 = for the better
0
5
10
15
20
25
30
Pe
rce
nta
ge
% in range
Your Company is clearly changing for the worse or better?
Source: CHRP/Hayward Survey - 1999
Aligning a New Reward Strategy ......The Deal
The Deal
Business - The Strategic perspectiveWhat the business requires to succeed
Culture -The EmployeeperspectiveWhat employees need and perceive
Organisation - TheSystems PerspectiveHow the organisationoperates, implementsand manages
Source - Towers Perrin European Survey 1997
Building "line of sight" from business strategy to the deal
Define Business Strategies
Define Business
Objectives
Align HR Policies and
practicesThe Deal
Linking employee to the business.....
PayBase
VariableLong & Short Term
IncentivesRecognition Awards
BenefitsPensions
Health Care and Medical
InsurancesTime Off
TeamsEquity
ManagementCommunication
Home / Work Balance
Environment
Career LaddersTraining
Career Development
Training & Development
The Deal - TheEmployee's Viewis Holistic - the elements must be taken together
Employer of Choice
Where do we go from here?
• It's not Rocket Science - most of us have the right tools already....…– We have the Vision and the Mission, what we lack is
the Delivery!
– Employees are taking the holistic view of Reward, it is not just pay and benefits.
– To be the employer of choice we need to meet those TOTAL reward needs.
So - how do we hang on to them...... and longer?
• Know your Employee Profile - analyse the population, age
• Review Market evidence internal and external
• Identify quickly fixable problems - what are your employees thinking about……...– Pay
– Grading
– Training Commitments?
Performance Management
• Develop effective objective setting process • Performance assessment and appraisal - link to
pay and career/skills development - 6 monthly reviews
• Ensure pay review and appraisal run with the business strategy and corporate objectives
People Development• Develop Career ladders
• Involve Technical Management in the design and completion
• Extend Technical ladders in all job families into dual ladders
• Ensure recognition of technical contribution eg: Appoint Chief Technical Officer
• Introduce a “Fellow Program”
• Complete development plans for individuals
• Improve employability
Training
• Offer training materials as broadly as possible and encourage their use
• Developed Certification programmes either Company eg MCSE or CLE or get external validation of internal programmes
• Develop Learning Resources Centres
• Contract and ensure delivery of agreed training
• Monitor for improved performance after training
• Target training activities
• Identify training styles
• Make learning an approved company activity
Communications
• Make good use of the technology• Develop overall communications
Shotgun mails, Company News Online, Company Meetings via Video and Teleconferencing, etc
• Ensure Technical and other support staff not treated as second class citizens to Sales and Marketing - give them a kick-off meeting too….
Home / Work Balance
• Look at Parenting leave• Introduce Sabbaticals
(eg Extra four weeks after 6 and 15 years service for a useful purpose)
• Take your holidays programme! (New Idea!!!)• Keep an eye on hours worked.…• Monitor Holiday carry-over
Review Contracts
• Look at Family Friendly policies– Flexible Working
– Extend use of Variable/staggered Hours
– Use the technology - remote working
– Develop new contracts
– Develop Home/Flexible working contracts
– Experiment with Weekly/Monthly Hours contracts
– Promote Job sharing
Manage Employees Better
• Employees perceive the need for Managers to take responsibility for managing and communicating, so…– Conduct regular Managing People Training - make an
essential programme
– Increase profile of Managing people effectively• Make a key element of a manager's objectives
• Introduce Good Management Awards - nominated by staff
Managing Better in practice...…
• Better compliance with current procedures
• Get tough about objective setting and appraisals being
completed and appraisals conducted on time
• Salary reviews conducted and paid on time
• Consider 360 degree feedback, employee initiation
• Make sure "Line of sight" with business objectives is
maintained in better written individual objectives
• Ensure Manager is responsible for career development planning
Pay
• Reviews Pay in line with business cycle (?6 monthly in technical areas)
• Reward performance fairly against the criteria• Use Discretionary Bonuses (frequently budget under-
used)• Variable pay - to link to business success• Stock schemes to link reward to Business growth• Incentives Schemes
Recognition
• Develop recognition mechanisms– 100% and Achievers Clubs
– Awards - Wizard etc.
– Team and Individual Recognition
• Use more small awards – Dinner for two etc
– Shopping Vouchers
– Events
– Bottle of champagne
Benefits
• Review against total remuneration model• Allow more flexibility within the model• Give more choice in Pensions - especially
investment choices• Make Car leasing widely available
For the Future?
• What about time management as a motivator?
• Encourage family responsibilities to be considered in objectives - not just "work" based?
• Improve communication and report back and involve at all levels - staff report back sessions
• Publicly recognise good work outside the Company?
Conclusions
• The solutions are not simple or complete - they are a complex mixture of doing many things better
• Reward is much more than pay and benefits• Career development, skills development and
improving employability are crucial• Know your employees and listen• Retention is better than recruitment, even if only an
extension of length of stay• Make sure leavers are friends of the organisation