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Presented by Kevie Mikus, SPHR, SHRM‐SCPArea Vice President, HR & Compensation Consulting

April 14, 2016

1. Holistic Total Rewards Approach Becomes a Talent Management Imperative

2. Engagement, Retention, Culture, and Inclusion Have Become Front Burner Issues

3. A Redesign of Performance Management Will Likely Continue

4. Supporting the increasing population of Overwhelmed Employees is a Must

5. Invest, Refocus, and Redesign Talent Acquisition –Leveraging Brand Reach and New Technologies

6. Training & Development Takes on Increasing Importance

7. Take the Plunge – Invest in Talent Analytics & Workforce Planning – This Area is Now an Imperative for Competitive Advantage

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Re-Skilling HR - Transform your Team’s Mindset; You are an HR Professional vs. You Work in HR

– Know when to use email and when NOT to use email

– When using email, don’t talk in slang or be cute

– Always picture your email on company letterhead

– Think before you give your opinion; remember you speak

for the organization. (Let the process, facts, past

experience, etc. drive your response and credibility.)

– Stop and think. Become less reactionary.

– Are you asking enough questions? Are you asking the

right questions?

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$11k

Employers spent an average of $11k per worker for health benefits in 2015

2x as Fast

Voluntary turnover is growing at a faster rate (9.8%) compared to 

involuntary turnover (4.7%).

2.8% vs. 2.9%

2015 salary increases are at 2.8%, and 2016 is 

projected at 2.9%

3 months

Within 3 months of being hired, 65% of people look at 

new jobs.  

The Organizational Fingerprint

© 2015 GALLAGHER BENEFIT SERVICES, INC.  ARTHUR J. GALLAGHER & CO. │ BUSINESS WITHOUT BARRIERS TM

The Organizational Fingerprint

Everything an employee values in the employment relationship.

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Self Actualization (Reaching

full potential)Aesthetic Needs

(Order and beauty)

Cognitive Needs

(knowledge and understanding)

Esteem Needs

(Positive self-image)

Belonging and love

(Affection, identification with a group)

Safety and Security Needs

(long-term survival)

Physiological Needs

(Short-term survival)

Advancement, professional growth, work‐life

Interesting, challenging work

Learning & development

Recognition, promotion, performance feedback

Affiliation & coworkers

Other compensation, health & retirement

Base salary

Emerging Trends

Emerging Trends

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Emerging Trends

Student loan repayment programs

Unlimited vacation

Marketplace delivery of benefit selections with decision support tools

Retirement assistance 

Child care supportMedical benefits that help care for aging parents

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Employee EngagementWe are only as good as our people! We believe involved, inspired and energized employees are the hands, heart and soul of the company, enabling us to grow and thrive while meeting constant challenges in the marketplace.

We believe in connecting with our customers, our communities and the environment. We believe by sharing and by teaching, we learn. This helps us create a better product — for our customers now and in the future.

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• Actively disengaged employees can reduce revenues by up to 22%

• Highly engaged employees can drive profits UP by as           much as 189%

Source:  Gallup  

Compared with low performing companies, high performing companies….1. Build stronger people leaders2. Do more to attract and retain talented people3. Treat and track performance with transparency

• Built to last… strong sense of identity – BRAND – a core ideology: They are VERY clear about who they are and who they are not

• Greater tightness of fit: Employees either buy-in or get out

• Self selection process… “This is just not for me”

• Show evidence of elitism, a sense of belonging – internally and superiority – externally

• Southwest Airlines

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Action Items to spark inter-generational culture innovations: • Write a Listicle that is short & includes shout

outs (engaging & concise)• Make a short video (less than 30 seconds) in

which at least 20 community members get some face time

• Empower & encourage employee diplomats• Share the career stories of your leaders• Use offensive idea generation (big & bold) to

upend the status quo – spark innovation –brainstorm 20 offensive ideas & select 3 to refine for action exploration = community engagement

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• An influx of younger workers and tightened demand for skills have made it increasingly important to focus on coaching & development, not just competitive evaluation.

• New research on the neurology and psychology of work shows that numeric ratings, rankings, and formal evaluations without positive feedback actually reduce performance, despite the hope to create a more competitive workplace.

• Concept of the “bell curve” to understand performance is not truly representative of employee value. Neuroleadership.com

• Companies should revisit the “why” of their performance management process, to make sure that they know what business, talent, and cultural outcomes they are trying to achieve.

• Performance coaching & development are among the most important parts of the process. Develop a culture of frequent conversations.

• The numeric rating should play a much lesser role than it previously has. Movement toward values-based scales and other methods to give employees feedback is gaining traction.

• Equipping managers to have critical conversations is key. Make the process simpler, identify accountability measures for managers and encourage “employee ownership” of their careers.

Neuroleadership.com

Effective Communication Recognition & Growth

Total Rewards Culture & Supportive Work Environment

Alignment with Organizational Goals

Organizational success is a function of the people you employ and how engaged they are with your mission. An integrated

approach is key to driving employee engagement and business outcomes.

32% of U.S. employees are

engaged at work

17.2% are actively disengaged,

indicating they are unhappy and

unproductive at work and are liable to spread negativity

Source:  Gallup  

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• Address Technology-Dependence Issues and other Workplace Distractions. – 65% of executives in Deloitte’s 2014 Global Human

Capital Trends survey rated the “overwhelmed employee” an “urgent” or “important” trend.

– An HCI Research Study found that 45% of employees say they can work for only 15 minutes at a time or less without being interrupted.

– Though minor distractions and breaks from work may seem harmless, they can cost businesses over$10,000 per employee per year.

– Top rated distractions: too many meetings, role ambiguity, performing tasks unrelated to position goals, and internal email.

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• Address Technology-Dependence Issues and other Workplace Distractions (cont.).

– Responses include:• Re-examine workload, build better accountability

frameworks collaboratively developed and enforced by managers, with clarity and specificity around duties, deadlines, consequences of underperformance and progress reporting mechanisms.

• Intentional or mandatory technology breaks. Some companies are instituting “no email Fridays” or “no tech vacations.”

• Software industry has been revolutionized by the “agile” model: teams are broken up into smaller groups that hold regular short, face-to-face stand up meetings that last no longer than 15 minutes.

• Simplifying business and HR systems makes it easier to use and impacts productivity.

• Learning, development and supportive tools should be introduced by HR and Operations to help employees manage priorities and expectations. Tools like Eisenhower’s Productivity Matrix, Apps, etc.

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• Who is going to be a good fit?

• Have you asked your top employees that you know are a good fit what they think?

• Have you defined your values in behavioral terms?

• Have you built the values into the annual performance review process?

• Have you embedded your values into the talent acquisition process?

Organizational Values

Personal Values

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• Think holistically about people development:– Only 10% of someone’s on-the-job behavior

change comes from training– 20% comes from assessment/feedback– 70% comes from on the job experience

• Cross functional teams• Cross group teams• Ad Hoc committees, special projects, etc.

• Informal methods of development/information sharing become ever important in today’s workplace (blogs/wikis/on-line forums/internal expert directories)

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It can cost up to

3xthe annual salary to replace an employee

Best‐in‐class organizations are 

twice as likely to have a process in place for 

identifying and retaining high potential talent

91%of high performing 

companies rigorously assess the ROI of initiatives and 

programs using data

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Turnover is just a number. Understand why and how you can change the number (if necessary).

The greatest danger in times of turbulence is not the turbulence. It is

to act with yesterday’s logic.

‐ Peter Drucker

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Kevie Mikus, SPHR, SHRM-SCPArea Vice President, HR & Compensation Consulting Arthur J. Gallagher615/324-1142 kevie_mikus@ajg.com