Springfield Chamber Membership Breakfast Spring 2011

• 1. Workplace Culture andProductivityITS YOUR BOTTOM LINE SPRINGFIELD AREA CHAMBER OF COMMERCE MEMBERSHIP BREAKFASTPresented byT HE J USTIS G ROUP

2. Harvard Business Review Study Service-ProfitChain Premise: When service companies put employees and customers first, a radical shift occurs in the way they manage and measure success. Putting the Service-Profit Chain to WorkThe Justis GroupHarvard Business Review 3. Employee Productivity Drives Profitability and Growth LeadershipProfitability & GrowthPutting the Service-Profit Chain to WorkThe Justis Group Harvard Business Review 4. Employee Productivity Drives Profitability and Growth LeadershipInternal QualityEmployee SatisfactionEmployee LoyaltyEmployee ProductivityExternal Service Value Customer SatisfactionCustomer LoyaltyProfitability & Growth Putting the Service-Profit Chain to WorkThe Justis GroupHarvard Business Review 5. Work Place Culture and ProductivityThe Bad News: Employee Retention Ranges from 44% to 60% (Surveys: Manpower, Monster & Career Builder) Cost of Turnover ranges from 25% to 250% of the annual salary per exiting employee 45% of employees plan to look for a job in 2011 (Blessingwhite Research)The Justis Group 6. Work Place Culture and ProductivityCost Associated with Turnover:- Exit Costs: HR, Managerial Handoff, Lost Customer/Contacts, Lost Knowledge- Absence Costs: Coverage, Productivity, Disruption- Recruitment Costs: Advertising, Internal/External Recruitment, Hiring Manager, Screening- Onboarding Costs: Onboarding, Training, and Productivity Ramp-upThe Justis Group 7. Work Place Culture and Productivity According to the US Bureau of Labor Statistics, the average non- farm turnover rate is 3.3%How does your companys turnover rate compare?The Justis Group 8. Top Reasons Why People Leave My career 26% - I dont have opportunities to grow/advance. My work 15% - I dont like what I do or it doesnt make the most of my talents. My finances 15% - I want to earn more money. My desire for change 12% - I want to try something new. My manager 10% - I dont like working for him or her. Other 18% - (economy, job conditions, company mission)The Justis Group Blessingwhite Research 9. Work Place Culture and ProductivityBlessingwhite Research: Employer caution: compared to 2008, more employees who can be considered highperformers are planning to exit.The Justis Group 10. Work Place Culture and ProductivityJust working on retainingemployees is not enough.You want engaged employees!The Justis Group 11. Work Place Culture and Productivity Once we get past the issue ofcompensation, people want to contribute and see their contributionmake a difference. They want opportunities for learning,development, promotions and to feel asif they are part of the success.The Justis Group Blessingwhite Research 12. Work Place Culture and ProductivityEngagement Defined: Contribution to the companys success Personal satisfaction in their role 33% Engaged 24% Almost Engaged 15% Crash & Burners 10% Honeymooners & Hamsters 18% Fully DisengagedThe Justis GroupBlessingwhite Research 13. Work Place Culture and Productivity So, what can we do to keep ourbest people and keep themengaged in the work we do?The Justis Group 14. Work Place Culture and Productivity Coaching, relationships and dialogue:- Managers must understand each persons talents,interests and needs and match those with thecompanys objectives.- Tie employee goals to the companys objectives.- They also need to build personal, trustingrelationships with employees.- And they need open and frequent dialog withemployees to head off problems that can lead todisengagement.The Justis Group Blessingwhite Research 15. Work Place Culture and Productivity Trust, communication and culture:- At the top level, a business owner must earntrust by being consistent in words and deeds.- Its also important to communicate frequently.- Finally, create a culture where your companysvalues are truly reflected in day-to-daybusiness practices. In other words, walk thewalk, dont just talk the talk.The Justis Group Blessingwhite Research 16. 7 Keys to Increasing Productivity Hire right the first time Terminate non-engaged employees Give 80% of your management time to coaching,relationship building and dialoguing with the Engagedand the Almost Engaged Train managers to lead proactively Develop and maintain a goal setting culture Celebrate achievements Establish realistic work/life balance expectations foreveryone Be consistent in all things create trust, opencommunication and honestyThe Justis Group 17. Work Place Culture and ProductivityQuestions?The Justis Group 18. Work Place Culture and ProductivityInsights andActions (Card on table)The Justis Group 19. Work Place Culture and ProductivityThank YouThe Justis Group