Winning the Talent WarThe Three R’s of Talent Management

Angie Salmon, Senior Vice President

CBIZ Human Capital Services & EFL Associates, Inc.

March, 2014

Recruiting

Retention

Rewards

Winning the Talent War – The 3 R’s

Recruiting

Post and Pray:

– Classified advertisements

– Traditional job boards: Monster.com,

Career Builder

Agencies

– Temporary help

– Employment agencies/Headhunters

One intro approach

Recruiting: The Past

Social Networking

– LinkedIn (e.g., “Groups” feature)

– Aggregators/Consolidators (Simply Hired, Indeed,

Flipdog)

– Facebook, Twitter (need to be perceived progressively)

Recruiting in a Modern World

Non-Line Networking

– Build/Maintain your talent pipeline

– Recruit your competitors’ top performers

– Pay attention to your employment brand/reputation

– Utilize competitors and vendors as referral sources

Associations

Recruiting in a Modern World

Search Firm Dynamics– Transparency (sharing of databases)– Milestones– Good candidates, fast– Recruitment Process Outsourcing (RPO)– Candidate Identification Firms / Name Generation

Firms– Off-shoring

Recruiting in a Modern World

Retention

Common perception, supported by monthly reports

from the U.S. Bureau of Labor Statistics

7.3% unemployment In reality, an interesting correlation exists between

unemployment percentage and education

Unemployment in an Improving Economy

Bureau of Labor Statistics Table A4: Employment status of the civilian population 25 years and over by educational attainment (seasonally adjusted) 2012

Bachelor’s degree or above 4.5%

Some college or an Associate’s degree 6.2%

High school graduate 8.3%

Less than high school diploma 12.4%

Right Management survey, more than half of

employees intend to leave their current job as the

economy improves:

Projected Turnover as the Economy Improves

http://www.right.com/news-and-events/press-releases/2012-press-releases/item24318.aspx

2012 2009

Yes , I intend to leave 86% 60%

Maybe, so I’m networking 8% 21%

Not likely, but I’ve updated my resume

1% 6%

No, I intend to stay in my current position

5% 13%

A majority of employers are convinced that other

organizations are actively seeking their top people

– Agree: 43%

– Strongly agree: 13%

– Disagree: 11%

– Strongly disagree: 4%

– No opinion: 29%

Projected Turnover as the Economy Improves

www.worldatwork.org/waw/adimComment?id=35633

Difficult to measure . . . soft versus hard dollars

Rule of Thumb: 33% to 150% percent of the annual

salary

• Salary costs

• Recruiting expenses

• Downtime and training time

If true: The cost to replace a $100,000 position

ranges from $33,000 to $150,000, depending on the

complexity of the position

Hidden Costs of Losing Tenured Employees

Management Teams need to play defense as their

offense is gearing up

Be warned: Talented employees have more options

– Why?

Top performers are being courted

– Talented executives are now susceptible to calls

from your competitors or executive recruiters

– Strengthen your firewalls, forewarn your admins

– Check LinkedIn profiles

Retaining Top Employees

Employee Engagement

Employee Engagement

“A heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work.”

--The Conference Board

Engaged employees = 70% less turnover

Employee Engagement

Highly engaged workplaces score high on all six.

Highly-engaged workplaces have

“signature” drivers.

Employee Engagement

Work/Life benefits, (flextime, etc.) Hiring practices New hire coaching

Work climate/vision

Supervisor behavior

Trust in senior leaders

Base pay

Bonus

Health Benefits

Tangibles

Intangibles

Short term Long term RetirementRetirement

Deferred CompDeferred Comp

““Job Security”Job Security”

Management/Supervisor training

Appropriate & timely recognition

Inform, and genuinely listen

Empowerment

Appropriate tools/resources

Address underperformers

Sufficient/Fair pay

Skill/Career Development & Enhancement

Improving Employee Engagement

Title enhancement (low cost but valued)

Flexible scheduling/Telecommuting

Executive coaching, employee concierge

Continuing education, tuition reimbursement

(grad school, certifications, special training such

as CCL, etc.)

Conferences (tangible, fun)

Team-building sessions (clears the air, brings frustrations into the

open)

Vacation, personal time, flex time

Pizza & Puppies

Engagement/Indulgence

Rewards

How are you paying vis-à-vis the market?

– Now is not the time to take things for granted

What tools are/should be at your disposal?

– Internet surveys

– Industry surveys (check sample size)

– Compensation consulting firms

Do you use a holistic performance management

system?

Rewards

Average salary increases– 2.8% in 2012– 3.0% in 2013– 3.1% in 2014 (expected)

Incentive Payout Trends– Non exempt: 5%– Exempt: 10-12%– Executive: 35-40%

Top Performers vs. Average Workers– 144% more in 2012– 152% more in 2013

Compensation Trends

WorldatWork 2013-2014 Salary Budget Survey

Money talks

– Pay winners like winners

– Raises, including backdating previous cuts

– Overdue bonuses or spot bonuses

– Reinstituting employer retirement contributions

– Communicate total benefits effectively

Rewards to Help Retention (and Recruiting)

Compensation Strategies

Best Practice

Matrix

Performance 1 2 3 4Exceptional 6.5% 5.5% 5.0% 4.0%

Exceeds Expectation 6.0% 5.0% 4.0% 3.0%Effective 5.0% 4.0% 3.0% 2.0%

Development Needed 2.0% 1.0% 0.0% 0.0%Critical Need for Improvement 0.0% 0.0% 0.0% 0.0%

Quartile in Range

Typical

Matrix

Performance 1 2 3 4Exceptional 3.5% 3.5% 3.0% 3.0%

Exceeds Expectation 3.0% 3.0% 3.0% 3.0%Effective 2.5% 2.5% 2.5% 2.0%

Development Needed 2.5% 2.5% 2.0% 2.0%Critical Need for Improvement 2.5% 2.0% 2.0% 2.0%

Quartile in Range

Rewards

HR executives should sound the warning signals

– As economy turns around, top performers may be the first to leave – don’t take people for granted

– Act proactively to ensure retention of key talent

For answers to detailed questions on compensation topics, please contact:

CBIZ Compensation Consulting800-844-4510 alduncan@cbiz.com

Recruiting

– Attract individuals who will help move your

organization forward

Retention

– Create an environment of employee engagement

Rewards

– Pay your winners like winners

The Goal: Win the Talent War

Questions?

About Your Facilitator

EFL Associates/CBIZ Human Capital Services

- Top 2% retainer-based search firm

- Searches conducted in 47 states and six foreign countries

- Search practice complemented by compensation consulting services

Angie Salmon

- Senior Vice President, EFL Associates

- Co-leads the Board of Directors Practice

- Completed over 100 search engagements

asalmon@eflassociates.com 913.234.1576 @SalmonSearch