Optimizing Employee Retention in Non-profits.ppt · Optimizing Employee Retention in NonOptimizing...

Optimizing Employee Retention in Non-profitsOptimizing Employee Retention in Non-profits

©2008 Protegra Inc. All rights reserved.

Topics covered in the presentation

• Engagement and retention• Innovative and engaging people practices and processes• Non-profit organizations• Non-profit organizations• Sound people practices• Deep employee involvement in creating high performance

organizationorganization• Teamwork, quality, leadership• The Protegra Way: culture, fit, empowerment, continuous

improvementp• Service excellence, high performing teams

©2009 Protegra Inc. All rights reserved. 2

Outline

• Introduction• Setting the stage: about people and behaviour• Why people join an organization; why they stay• Why people join an organization; why they stay• Long-term organizational strategy for performance• A system for achieving alignment and performance• Focus on the employee• Focus on the employee• Employee engagement• Managing behaviour


Introduction

• Non-profit organizations are businesses too!• Compete for ever-shrinking resources, funds and budgets.• Must build competitive organizations• Must build competitive organizations.• The theme of today’s presentation, from a participant’s perspective

is really on competing for employees… and winning ☺


Main premise

• You need to pay people fairly for what they do• However, the key to attracting, engaging and retaining is not

money In fact once you get over the barrier of entry moneymoney. In fact, once you get over the barrier of entry, money takes a back seat to most other work “environment” factors

• Salary and benefits are only two elements in an organization’s employee value propositionorganization’s employee value proposition

• Key:- Clear sense of purpose for their work- Pride in the organization (high performance on all facets), and- An environment where individuals can thrive and satisfy their

needs


Non-profit sector statistics

• The voluntary and non-profit sector includes some 161,000 organizations

- more than half (56%) are registered charitable organizations( ) g g• Almost half of Canada's voluntary and non-profit organizations,

nearly 69,000 of them, have paid employees (1.2 million employees). The others rely solely on volunteers.

• Representing 7.2% of the country's total paid workforce, the collective salaries of employees in the voluntary and non-profit sector add up to an annual payroll of $22 billionT t thi i ti id l i th t• To put things in perspective, paid employees in the sector outnumber the total combined workforces of New Brunswick, Nova Scotia and Newfoundland and Labrador. They also outnumber employees in the country's entire construction and hospitality p y y p yindustries combined.

Website of the HR Council for Voluntary & Non-profit Sectorhttp://www hrvs rhsbc ca/about the sector/stats sector cfm


http://www.hrvs-rhsbc.ca/about-the-sector/stats-sector.cfm

Profile of non-profit sector employees

• 74% of employees in the sector are women; more than for-profit organizations (47.5%)

• 39% of employees are over the age of 45 years; the workforce in39% of employees are over the age of 45 years; the workforce in non-profit organizations is older than in for-profit organizations

• One-third of employees are in professional occupations• Approximately 15% of employees are immigrantspp y p y g• Nearly 40% of the sector's paid employees are union members or

covered by collective agreements.

Website of the HR Council for Voluntary & Non-profit Sectorhttp://www.hrvs-rhsbc.ca/about-the-sector/stats-sector.cfm


Profile of non-profit sector employer

• Most are very small organizations• Most are very small organizations• Well over half of the sector's employers have fewer than five

employees and three-quarters of them have fewer than 10 employeesp y

• Only 3% of employers have 100 or more paid employees - but this small number of employers accounts for more than half of all the employees in the sector.


Challenging times ahead

• Project and short-term funding make it difficult to engage employees on a permanent basis

• Subsidies that are available for internships and work placementsSubsidies that are available for internships and work placements encourage organizations to hire workers for shorter and fixed duration (youth internships, etc.)

• Survey of non-profit organizations in Greater Sudbury, all of whom reported using wage subsidy programs, showed that:

- At least 6 in 10 employees classified themselves as part-time or contract workerscontract workers

- Agency managers reported a 66% decrease in full time staff and an 83% increase in part time staff over the previous five years.

Report from the Canadian Council on Social Development, Katherine Scott (2003)Report of Human Resource Needs in the Non-Profit Sector produced by the Social


Planning Council of Sudbury, Ontario (2001).

What do people want from their jobs?

• Take 2 minutes to list what you believe are the 5 most important factors to your employees


Setting the stage: about people and behaviour

Ab h M l P id f N d M ti ti Th• Abraham Maslow – Pyramid of Needs, Motivation Theory• Hawthorne Effect (Elton Mayo) – The Experimental Effect• Frederick Herzberg – Two Factor Theory: Motivators and Hygiene

FactorsFactors• Douglas McGregor – Theory X and Theory Y• Edward Deming – Quality Management and Systems Thinking

Peter Senge Th Fifth Di i li Th A t d P ti f L i• Peter Senge – The Fifth Discipline: The Art and Practice of a Learning Organization and Mental Models. Thinking, communicating and collaborating!

• Ken Blanchard – Gung Ho!Ken Blanchard Gung Ho!- The Gung Ho! model contains three central principles, which aim to create

an organization of productive, committed employees who love what they do: • Worthwhile work driven by goals and values (squirrel)

P tti k i t l f hi i th l t ib t (b )• Putting workers in control of achieving the goal; everyone contributes (beaver)• Cheering each other on (goose)

• John Kotter – The Heart of Change


Surprise!

What employees said

• Full Appreciation of Work

What supervisors said…

• High Wages Full Appreciation of Work Being Done

• Feeling of Being In On Things• Help on Personal Problems

High Wages• Job Security• Promotion in the Company• Good Working Conditions Help on Personal Problems

• Job Security• High Wages• Interesting Work

• Good Working Conditions• Interesting Work• Personal Loyalty of Supervisor• Tactful Discipline Interesting Work

• Promotion in the Company• Personal Loyalty of Supervisor• Good Working Conditions

• Tactful Discipline• Full Appreciation of Work

Being Done• Help on Personal Problems Good Working ConditionsHelp on Personal Problems

This survey is based on works by Susan Herrington, North Tennessee Private Industry Council in Clarksville, Tenn. Retrieved from http://www.nwlink.com/~Donclark/leader/want_job.html May 18, 2009.


Wh l j i i i h hWhy people join an organization; why they stay

• How do you attract employees?- Referrals (word of mouth)- Relationships (e.g. educational institutions)- Reputation

• Why people stay- Reality turns out to be equal or better than advertized- They enjoy their work; they fulfill their needs…- They enjoy their coworkers- They are proud of their organization- They are proud of the work they do: they are allowed to serve their clients to the

best of their ability. They make a difference.- They learn and grow as individuals

It’s important to acknowledge that every individual is motivated by different combinations and importance of needs, and that what motivates us changes with time…g

• As leaders/organizations, we need to create and maintain a system that is tuned, and responsive (adaptive), to the needs of our employees

• How do you know how your system is working? ASK THEM!!! Listen…


What Protegra’s employees value• From our most recent employee engagement / satisfaction survey

Employee Value Proposition / Loyalty Drivers 2006 2007 2008Worthwhile work 5 2 1Supports Work / Life Balance 2Belief that Protegra understands what I do and how well 2 4 5Belief that Protegra understands what I do and how well 2 4 5Fair remuneration / Total Compensation 1 8 3Inspired/Effective leadership 4 7 4Control over fixing problems 2 9Co workers (working with people I like and respect) 9 3 6Co-workers (working with people I like and respect) 9 3 6Sense of growth/accomplishment 7 1 7Making a difference 8Opportunities to realize my professional objectives 9O t iti t li l bj ti 10Opportunities to realize my personal objectives 10Job security 12 4 11Opportunities to lead 7 10 12Working with leading edge technology 11 12 13Strong sense of belonging to a team 10 4Low stress 13 10Variety in assignments 5 12Ownership opportunities 14 14 15


i i l fLong-term organizational strategy for performance

• Vision: The organization’s guiding idea around which to rally and that will endure…

• Values- Win-Win-Win- Codified culture: a behaviour “contract”. Respect, teamwork, quality, etc.- Professionals with integrity- Lean thinking: Value for our client, empowered workforce, drive waste out, continuous

improvement• Culture:Culture:

- Organizations with strong cultures tend to have better control of their employees- Without exception, the dominance and coherence of culture proved to be an essential

quality of excellent companies. Moreover, the stronger the culture and the more it was directed toward the marketplace, the less need was there for policy manuals, organization charts, or detailed procedures and rules. In these companies, people way g , p p , p p ydown the line know what they are supposed to do in most situations because the handful of guiding values is crystal clear. - Peters and Waterman

• Shared beliefs, shared norms and values (right/wrong, normal/not normal, good/bad, etc.), shared behaviours

• What is/will be your Employee Value Proposition?What is/will be your Employee Value Proposition?• Strategy• Plan


A f hi i li dA system for achieving alignment and performance

• We call it our Value Management System – it’s our organizational quality assurance system. The term “System” is key!

• CLEAR EXPECTATIONS!!!CLEAR EXPECTATIONS!!!• P – D – C – A.• Leadership: Every employee is a leader

- The art of influencing another’s behaviour toward the accomplishment of theThe art of influencing another s behaviour toward the accomplishment of the objective in a manner consistent with the organization’s values

- This is the true test of an organization: do you do what you say you do? Especially in difficult situations. Are leaders true to the organization’s values?values?

• Sound HR Practices and Policies• Teaching and trusting employees to think, solve problems, make

decisionsdecisions• Deploy the elements of effective communication systems


Alignment

• Alignment of the organization- Board alignment: Aligned governance- Management team alignmentManagement team alignment

• Alignment of the teams• Alignment of the individuals


Focus on the employee

• Attracting the right employees: fit, customer focus, a good heart- Employee referrals are gold!

• The key question: “What characteristics, skills and experience are the best predictors of employee success and longevity in your organization?”

- Do you track employee information and conduct correlation analysis?- The Moneyball example- Know your employees; know the traits of successful ones. We all think we know but we

seldom put a lot of rigour in the data gathering and analysis…• The interview processThe interview process

- This is a key process for employee retention• Use of psychometric profiles• The orientation process (the learning curve); Onboarding• A mentor; the buddy system (career leaders, ERFs)• A plan• A process to take stock, reflect, adjust

- High frequency, short-loop feedback system- Use your probationary period for its intended purpose. After all, you can’t test-drive

employees and they can’t test-drive your organizationemployees, and they can t test-drive your organization• Making difficult decisions: not everyone will be a success

- Parting ways with some employees


Engagement

• Engagement is behavioural – you observe engagement…Measurable state of emotional and intellectual involvement and commitment of the workforce to organizational gsuccess.

• There are a number of engagement surveys on the market; however, there are only ten common themes that are found in th bl k t id t (V 2006)these blanket-wide engagement surveys (Vance, 2006):

- Pride in employer - Satisfaction with employer - Job satisfaction

Opportunity to perform well at challenging work- Opportunity to perform well at challenging work - Recognition and positive feedback for one's contributions - Personal support from one's supervisor - Effort above and beyond the minimum - Understanding the link between one's job and the organization's mission g j g- Prospects for future growth with one’s employer - Intention to stay with one's employer


Engagement at Protegra• Protegra’s results in Employee Engagement (central determinant)

d th B t E l i C d A d i 2009 f S ll dearned us the Best Employer in Canada Award in 2009, for Small and Medium businesses.

• Correlations with “Engagement”:- 26% less turnover- 100% more unsolicited employment applications- 20% less absenteeism- 45% less LTA (loss-time accidents)- 5% less sick time- 5% - 15% greater employee productivity- Up to 30% greater customer satisfaction- 28% higher employee morale

• Engaged employees:Engaged employees:- Speak positively about the organization to co-workers, potential employees and

customers- Have an intense desire to be part of the organization- Exert extra effort and are dedicated to doing the very best job possible toExert extra effort and are dedicated to doing the very best job possible to

contribute to the success of the organization• Protegra’s performance: 92% “engaged”, 6% “somewhat engaged”,

and 2% “disengaged


Queen’s School of Business and Hewitt research, 2009.

Managing behaviour• Individuals as “Systems”; each is unique

B d iti i f t• Based on positive reinforcement• Every employee is part of the performance system• Short feedback loops

St tActions/Behaviour

C

StructurePerformance

Consequences

Competencies

Innovative Reward Systems for the Changing Workplace, T. Wilson


y g g p ,

Thank you!

For further information, contact:

________________________________Daniel PerronPractice Leader

Protegra | Business Performance ConsultingBusiness. Technology. Solutions.Business. Technology. Solutions.

Office: 204-487-5678Fax: 204-477-9421www.protegra.comp g


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