Showing posts with label performance pay. Show all posts
Showing posts with label performance pay. Show all posts

Monday, January 26, 2009

Attracting Top Talent: Do You Have What It Takes?

Today's employees are attracted by a hiring package with both extrinsic (pay and benefits) and intrinsic (motivation, training opportunities, etc.) elements. But does your organization have the right mix?

There's really only one way to find out: Ask them. Hold focus groups or distribute questionnaires to your employees with the purpose of determining what they think of your present pay and benefits program and also the work environment. Which benefits do they rate the highest? Which are least important to them? What do they find most and least desirable about their jobs and the workplace?

Studies have been done by numerous compensation organizations and they have identified the following as the most important benefits:
  • RRSP or other matched employee retirement plans
  • Dental plan
  • Pension plan
  • Pay for performance compensation
  • Flexible working hours
  • Childcare
  • Tuition reimbursement

Ideally, say the experts, you should be offering each of these. But if you can't offer them all, determine which you should be offering based upon your employee focus groups and survey findings.

Likewise, examine employees' opinions about their jobs and the workplace. The ideal company offers:

  • Job security
  • Employee participation in decision-making
  • Work/family balance
  • Increased employability through training and development opportunities

Of the elements above, which are missing in your organization? If they aren't there, they should be. Whereas the elements in your benefits package most important to your workforce will vary with the nature of the group (e.g., younger employees will be interested in childcare or tuition reimbursement, or funds to finance a new home), all, regardless of their place in their careers, want job security, involvement in decision-making, training opportunities, and time to enjoy their families along with their jobs.

Once you have retooled your package to attract those employees your firm needs, your next step is to determine how to market your revised package. If you have a website, and you are looking for technical people, make sure that you advertise on it. Visit the websites of competitive firms to determine how they use their site to prospect for job candidates. Job search sites should be part of your marketing plans, of course. But you shouldn't limit yourself to them. Don't forget newspaper classifieds.

Classifieds aren't as effective as they once were, especially if you are recruiting from among those who are still employed. But you can increase their usefulness if you highlight in the ad what candidates would find most attractive about the job (e.g., good pay, great benefits, childcare, and employability). Actually, you should do this in all ads you run.

Here's another avenue for marketing your job openings: direct mail.

Send out mailings to those individuals who match the profile of recruits you want. Associations or magazines targeted to your industry or the necessary discipline can provide the mailing list and names of candidates with the general background you want.This provides a new avenue for the top talent you want.

Ref: http://www.hr.com

One-in-Five Workers Plan to Change Jobs in 2009

Even with slower hiring predicted for 2009, 19 percent of workers say finding a new job is on their list and the same amount say they actually plan to leave their current job before the end of the year, according to CareerBuilder.com's latest survey. The survey, titled "2009 Job Forecast," was conducted from November 12 through December 1, 2008, and included more than 8,800 workers. Additionally, six-in-ten workers say the economy and the tightening job market are not making them hold off on their plans to change jobs.

Workers cited a variety of reasons for wanting to leave their jobs in the new year, with the most workers, 49 percent, reporting that better pay and/or career advancement opportunities are the primary reasons they plan to leave their current positions. Fourteen percent are looking for an environment where they feel more appreciated and 10 percent want to work for a company that is making a difference. Seven percent of workers are electing to change careers entirely, while 3 percent say they are leaving their jobs because they want more flexibility or plan to go back to school.

Looking at key factors that influence job satisfaction and company loyalty, workers reported the following:

Pay – A quarter of workers are dissatisfied or very dissatisfied with their pay. Thirty-five percent of workers did not receive a raise in 2008. Of those that did receive one, 25 percent were given an increase of 2 percent or less. Sixty-three percent of workers did not receive a bonus.
Career Advancement – Twenty-six percent of workers are dissatisfied or very dissatisfied with the career advancement opportunities provided by their current employers. Eighty percent did not ask for or receive a promotion in 2008 and 20 percent felt they were overlooked.
Work/Life Balance – Eighteen percent of workers are dissatisfied with work/life balance and 54 percent report their workloads have increased over the last six months.
Training/Learning – Twenty-three percent of workers are dissatisfied or very dissatisfied with training and learning opportunities provided by their current employers.

When applying for new positions, workers say the most important attributes they look for in employers are:

  • Company's stability and longevity in the market (32 percent)
  • Good career advancement opportunities (20 percent)
  • Good work culture (14 percent)
  • Ability to offer flexible schedules (12 percent)

"January is typically one of the busiest job search months of the year and this year should be no exception with increased unemployment combined with workers who are putting their New Year's resolutions into action," said Rosemary Haefner, Vice President of Human Resources at CareerBuilder.com. "Although seven-in-ten workers say they are satisfied with their jobs, some are always on the lookout for a greener pastures. In fact, 82 percent of workers said while they are not actively looking for a new position, they would be open to one if they came across the right opportunity."

For those actively searching for new opportunities in the new year, Haefner recommends the following:

1) Be patient – More than one-in-five employers (20 percent) report it typically takes them two months or longer to fill their open positions. In addition, companies are receiving more resumes for each of their open positions, requiring more time to make sure they hire the best candidate for the job. Job seekers need to be aware of these time frames when performing their search.
2) Use the job posting – Job postings clearly spell out what employers are looking for. Update your resume using some of the same key words and phrases directly from the job posting. If the employer is using an automated system to scan resumes, your updated resume will surely stand out.
3) Get online now! – While nearly three-in-ten (28 percent) of employers say their recruitment budgets will decrease for 2009, 19 percent report they plan to spend more of their money looking for talent on online recruitment sites. Explore generalist sites, niche boards and local job boards, and post your resume on as many as you feel could benefit your search. Also, take advantage of the functions on each site to boost your exposure.


Ref: hr.com

Friday, January 23, 2009

Rewards & Recognition: Time to Pay Up...And Fast

Given today's economic and demographic challenges, HR practitioners will be narrowing the focus of recognition while expanding the scope.The nation is in an economic downturn that experts believe will be with us for the next few years, if not longer. No matter the industry or the region of the country, more and more companies are being forced to do more with less.

Consumers are buying fewer products and services and putting off nonessential purchases. Capital expenditures by businesses are being reined in and, in some cases, cut altogether. Every expense is being scrutinized, because savings go right to the bottom line.

Organizations are changing their business strategies to align with the new marketplace realities. In the "old days," when customers requested "better, cheaper, and faster," companies would respond with "pick two." Today, it's a business requirement for these same companies to accomplish all three.

There has been an unexpected positive consequence of this new reality: A greater number of business leaders outside human resources better understand that customers buy products from companies, but form relationships with people.

And it's these same people -- the employees -- who have the ability to create and enhance the kind of customer loyalty and retention required for survival in today's rocky economic times. Most CEOs understand how the Pareto Principal relates to their bottom line -- 80 percent of sales come from 20 percent of the customers.

More of these same senior leaders realize a new truth; that 80 percent of business outcomes can be directly traced to the efforts of 20 percent of the employees. These "A & B players" and "high performers" are being counted on more than ever to meet and exceed customer expectation.

Narrowing the Focus

The ultimate goal of reward-and-recognition approaches is to find, keep and motivate employees through a variety of organizational interventions. These can include tangible and intangible rewards, cash compensation, benefits, recognition approaches and employee-involvement and motivation strategies. But when it comes to allocating resources to fund these rewards programs in 2009, companies will need to narrow the focus while, at the same time, expand the scope of recognition.

All employees want to be rewarded for their performance, no matter how much, or how little, they actually contribute to the success of their organization. But "C" players (who can make up as much as 75 percent of the employee base) often do acceptable -- or minimally expectable -- work and are often happy to have and keep their job, let alone receive additional rewards.

Pay-for-performance requires companies to differentiate between their superstars and their under-performers. And based on recent national research on employee satisfaction, engagement and retention, most companies have a long way to go.

According to the 2008-09 Employee Hold'em National Workforce Engagement Benchmark, 50 percent of self-identified "superstar" employees are fully engaged with their organizations. These hard-working employees are ready, willing and able to go above and beyond customer requirements and plan to stay with the company if they're offered a little more money to go somewhere else.

Why? Because they are more likely to believe they are fairly rewarded and recognized for their contributions to the company's success, feel that excellent performance gets rewarded in their organization and believe their manager ensures the best employees receive the greatest rewards. Another study recently conducted by Leadership IQ indicated that 47 percent of high performers are actively looking for new jobs by posting and submitting their resumes and even going on job interviews. Companies need to "pay up" with alternative forms of rewards and recognition.

Finding Alternatives

Employers cannot afford to lose their best workers, who get the job done on time, on target and on budget. The best workers are given the toughest assignments because they have shown an ability to get the job done. They work on the hardest accounts due to their abilities in handling difficult clients. And they're often asked to "learn on the job" due to their ability to swim while others sink.

How do most companies reward these vital resources, these assets with feet? By giving them a performance increase that is only 2 percent or 3 percent bigger than the marginal employee sitting in the cubicle next to them received. Seniority pay, merit pay, incentive pay, team-based pay, skill-based pay and outcomes-oriented pay just don't cut it, especially when companies can barely afford their cost-of-living increases.

That's why more and more companies are going to be looking at alternatives to compensation and spot bonuses to reward their best and most dependable workers. Providing training and development, work/life balance and opportunities for advancement are three of the effective rewards for today's and tomorrow's hardest-working employees.

Going forward, consider this: You should be training the best employees so they can leave, or else they'll leave. That's right. Train them so they can leave, or else they'll leave. They're going to leave anyway. The average employee has 13 to 15 jobs over the course of his or her career, seven by the time they are 30 years of age.

However, when companies provide training and development opportunities on a consistent basis, these superstars will stay longer, work harder and recommend the organization as a great place to work. And aren't those exactly the kinds of behaviors that a pay-for-performance system is supposed to elicit from top employees?

Whether it's a result of the expectations of their managers or the demands they put on themselves, high performers in an organization know through experience that they won't be working only 40 hours in a week. They show up when they are needed, and stay until the job is completed. They're willing to give up some personal time in order to satisfy the needs of the job. But they expect payback as well.

Managers who want to keep their top performers retained and engaged will need to recognize the importance of their personal and family life and be flexible when the pendulum swings to the family side of the question. Managers will need to ensure that top performers are given the freedom to balance work and family responsibilities without hindering their career progression. And they'll need to be sensitive to the needs and problems of these employees when they arise.

Employees will continue to want the ability to move up and move over or they're going to move out. Many front-line supervisors and managers are reticent to let their best employees transfer to another division or department. The reason is understandable; the supervisor's performance review (and pay) is often based on the productivity or throughput of their direct reports.

More and more companies will be training their supervisors to be "engagement agents" for these top performers, providing career mentors throughout their employment. In the past, companies have pigeon-holed their best employees into the jobs they were "hired to do." When half of these workers are open to job offers from other companies, or are actively looking for them, this practice has to end. It's time to pay up. And fast.

Expanding the Scope

And finally, a few words about expanding the scope of recognition. Believe it or not, many companies still think about recognition in terms of the anniversary card hand-signed and delivered by the senior executive, the "five-year pin" given out at the annual awards luncheon or the gift catalogue the 10-year employee chooses from as acknowledgment of his or her continued tenure. Granted, these are worthwhile endeavors that all employees share in, even the three-quarters who are "C" players in the typical organization.

So, how are the best companies taking this one step further? They're doing it by recognizing the importance of daily satisfaction and ethics, diversity and safety. Companies that understand employees quit a boss and not a company are working hard to ensure that employees have a good relationship with their immediate supervisor. They're attracting talent by making certain there is a good fit between the applicant's skills and interests, and their job. And they are making sure that each job provides a feeling of personal accomplishment.

Today, companies better understand the critical nature of ensuring an ethical environment for their workers. Employees are less willing to cut ethical corners for short-term profits or modest improvements in a company's stock price. They are less willing to look the other way regarding issues of favoritism or unfair treatment of employees.

And today, providing a safe and secure workplace is no longer a "nice to have," but is more like a standard table stake in poker. Employees understand that, although compliance and ethics may lead you to the same place, compliance is based on things you have to do, while ethics are things you want to do. The difference in one verb makes all the difference in the world.

The year 2009 is going to be a difficult one for an increasing number of businesses. Decreasing revenues, shrinking profits, pressure from shareholders and competition from new and emerging markets are going to test the mettle of even the most solid companies.

Companies must continue to narrow the focus of their rewards programs to target the employees they count on most while expanding them beyond the typical merit-pay and spot-bonus programs many used to rely on. And by recognizing the importance of daily satisfaction and ethics to all employees, companies can improve the performance of all employees.

It's the old Fram Oil Filter commercial, with a twist: "Pay me now or pay up later."You make the choice ... or your employees will make it for you.

Ref: Marc Drizin
[About the Author: Marc Drizin is founder and chief instigator of Noblesville, Ind.-based Employee Hold'em, which provides talent-retention solutions and corporate training services. He is the author of Workforce Engagement: Strategies to Attract, Motivate, and Retain Talent, and a second book, Employee Engagement Fundamentals: A Guide for Managers and Supervisors. ]