Post on 20-Aug-2015
The Post GFC Leader
Aaron McEwan Director, Hudson Talent Management
Dr Ben Palmer CEO, Genos International
Identifying and equipping leaders to engage, motivate and retain talent in the post GFC landscape
Hudson 20:20 Series Whitepaper
“Positioning for Growth – Building a Dynamic Workforce in a New Economic Era”
Assessed the fallout of the downturn in Australia and New Zealand’s businesses and workforces, with specific focus on today’s increasing labour market liquidity
Surveyed: 574 Employers
1633 Employees
Provided recommendations on how to find and retain high performing employees in an increasingly competitive, skills-short market
The GFC: What did employers experience?
37% implemented pay freezes for some/all staff
50% roles were merged or made redundant
43% workloads increased
11% of overall workforce lost
59% say they are now under-resourced
32% market has become more competitive
The GFC: What did employers experience?
50% roles were merged or made redundant
More than 3500 candidates completed Hudson outplacement programs – mostly middle managers
Many outplacement candidates changed careers/industries – not coming back
Retirement plans shelved due to impact on super – ageing workforce issues postponed
Business As Usual?
“WE’RE NOW PLANNING FOR A PERIOD OF GROWTH, THERE’S AN OPTIMISTIC AIR IN THE COMPANY THAT WE’VE MISSED” CMO, Sales, Marketing & Communications
The New Workload Regime
62% of employees believe they are working harder as a result of changes made during the GFC
Employee Loyalty and Motivation Post GFC
“THE DOWNTURN HAS MADE A BAD IMPRESSION ON MY EMPLOYEES AND WE KNOW NOW THAT WE’RE BEING HELD TO THAT IMPRESSION” HR Manager, Office Support
Talent Exodus Arrives
Around 61% of employees plan to be in a new job within the next six months
Reasons For Change
Skills Shortage Returns
Employers Now Focussed On Getting The Right Team
43% do not have the right team in place
84% made too many redundancies
23% of losses were high performers
34% says teams are now weaker
83% are focussed on building the right team for growth
What is a High Performer?
High performers are engaged, they’re inspired and they expend discretionary effort
Employee Engagement and Discretionary Effort
Only 11% of a typical workforce is highly engaged
Engaged employees can yield up to 57% more discretionary effort
This discretionary effort can improve performance by 20%
73% of engagement is explained by actions or behaviours exhibited by leaders
Financial Metric (12 month change)
High Engagement Companies
(%) Low Engagement
Companies (%)
Operating Income + 19.2 - 32.7 Net Income Growth + 13.7 - 3.8 Earnings Per Share + 27.8 - 11.2
Towers Global Workforce Study (2008)
Retention – Keeping high performers engaged
Drivers
• Right People in the Right Jobs
• Leadership Excellence
• Organisational Strategies and Systems
Employees are four times more likely to leave a job with a Manager that has poor Coaching and Interpersonal Skills
(Cherniss & Goleman, 2001)
Environment
• Aligned Effort and Strategy
• Empowerment
• Collaboration
• Growth and Development
• Support and Recognition
The Post GFC Leader has to function in an environment where…
There is very little certainty - world economy is unstable
There is opportunity for growth and market share gain
Business is highly complex with multiple, global and diverse interactions and interconnections
GFC downsizing cut deeply into ‘muscle’
Turnover and workforce fluidity are high
Competition for high performers and ‘talent’ is fast approaching pre-GFC levels
Employee engagement and loyalty is declining yet critical to success
What Makes an Engaging Leader? – Understated Authenticity
Intellectual Agility - Navigates complexity, integrates complex information
Resilience - Copes with ambiguity and continuous change, stress resistant
Self Awareness - Seeks feedback to improve interactions with others, accurately describes how others view his or her capabilities
Relational Transparency - Says exactly what he or she means, is willing to admit mistakes when they are made
Balanced Processing - Solicits views that challenge his or her deeply held positions, listens carefully to different points of view before coming to conclusions
Internalised Moral Perspective - Demonstrates beliefs that are consistent with actions, makes decisions based on his/her core beliefs
Source: Prof Paul Evans Journal of Human Resource Management (2003)
What Drives Leadership Performance?
The traditional method
Employee engagement
Perform
Praise Perfect
Universal drivers of motivation Communication
Decision Making Role-Clarity
Working Conditions Performance Management Strategy Reward & Recognition Learning & Development
Executive Leadership Leadership Career Opportunities
Interdepartmental Cooperation Resources Mission/Vision/Values Change Management
The traditional method
Em
ployee engagement
Perform
Praise Perfect
Universal drivers of
motivation
time
What about individual drivers of motivation?
Employee engagement
Perform
Praise Perfect
Universal drivers of motivation
Employee engagement
Perform
Praise Perfect
Individual drivers of motivation +
Individual motivational drivers
Motivational fit and engagement
53% 45%
27% 21%
0%
20%
40%
60%
80%
100%
Manager Team Organisation Role
Am
ount
of v
aria
nce
in e
ngag
emen
t exp
lain
ed
What happens when you achieve it?
New methods
Individualising employee engagement
Develop managers emotional intelligence
Facilitate individual motivational fit engagement reviews and monitor the impact
Individualise employee engagement
Shared ownership
Employee engagement
Praise Perfect
Individual drivers of motivation =Perform
New methods - develop manager’s emotional intelligence
r = .48
r = .56
r = .52
r = .53
r = .48
r = .58
r = .45
Disengaged
Not Engaged
Nearly Engaged
Engaged
Facilitating individual engagement – five step process
1. Purpose & Outcomes
2. Present your own analysis
3. Individual motivational fit activity
4. SMART Goal action planning
5. Monitor
Summary
1. Individualising employee engagement
2. Develop managers emotional intelligence
3. Facilitate individual motivational fit engagement reviews and monitor the impact