Workplace Strategies For The Economy Recovery1

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Workplace Strategies for the Economic Recovery:Solving the Retention Riddle

Presented By:

Roy G. KrausePresident & CEOSFN Group

Brendan A. J. CourtneyPresident The Mergis Group & Todays Office Professionals

March 24, 2010

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1997 1999 2003 2005 2007 2009

TheEmerging Workforce®

12 Years of Research

12 years of groundbreaking research & reporting on workforce

More than 190,000 workers surveyed since 1997

Nationally representative sample of employees & employers, conducted & certified by Harris Interactive (margin of error: 1.8%)

Provides unique perspective & insight into attracting, cultivating & retaining talent

Economic Meltdown Had Broad Impact

Vast changes in economic climate, labor supply & worker confidence

New Study, New Realities

IndicatorsSpring 2007

Spring 2009

March 2010

Unemployment Rate 4.4% 8.5% 10%

Dow Jones Index (monthly average) ~12,300 ~7,300 ~10,785

Consumer Confidence Index 108.2 26.0 46.0

SFN Group Confidence Index 57.1 41.4 48.9

Harris Poll - % of country on wrong track 62% 68% 63%

1997 Benchmark Study

Revolutionary Way of Tracking Worker Attitudes

VALUESTRADITIONAL

WorkerEMERGENT

Worker

Career ManagementCompany’s

ResponsibilityEmployee’s

Responsibility

Promotion Tenure Merit

Retention Security Growth

Management Style Paternalistic Peer

Organization Chart Respect Ignore

Changing Jobs Fear Advancement

Emerging Workforce Study

Tracking Different Types of Workers Over Time

Emerging Workforce Study

Type of Worker 1997 1999 2003 2007 2009 A/F

Emergent 20% 22% 31% 27% 22% 31%

Traditional 34% 29% 21% 25% 28% 19%

Migrating 46% 49% 48% 48% 50% 50%

Tracking Types of Workers Over TimeEmerging Workforce Study

What accounts for fluctuations?

> Economic health, consumer

confidence levels

> Changes in attitude about loyalty &

stability based on global trends

Emergent Employers

TIME &FLEXIBILITY

CAREER &EARNINGS GROWTH

BONUSES &REWARDS

WORKFORCEPLANNING

FLEXIBLEWORKERS

Tracking Highly Adaptive Companies – Emergent Employers

Traditional EmployersVALUESRanked HIGH as away to retain

Expected as part ofcompany culture

Based on performance & contribution

Integrated with strategic planning

Vital part ofintegrated workforce

Ranked LOW as away to retain

Reserved forselect performers

Applied ad hoc,tenure-based

Tactical & sporadic

Minimal,non-strategic use

Emerging Workforce Survey

Percentages 2007

Percentages 2009

13% 48%

14% 41%

Workplace Strategies for a New Time

New Study, New Realities

The unprecedented recession has not only affected housing & financial markets, it has altered the labor market as well

In an “employers’ market,” many companies focusing on cost savings, rather than retention, staff development or innovation in the workplace—Bad Idea!

While the basic need to attract, cultivate & retain talent remains, the “strategies” of how best to do it have once again changed dramatically

How companies leverage two cultural shifts—employees’ adoption of social media & renewed desire to feel connected—will determine their success in attracting, cultivating & retaining talent

Key Workplace Strategies that Will Help Employers Prepare for the

Turnaround

Addressing Attraction, Cultivation & Retention of Workers Today & in the Future

WORKPLACE STRATEGY 1

DEFINE

ATTRACT CULTIVATE RETAIN

UNDERSTAND

DEVELOP

BALANCE

TAILOR

Understand What It Takes to Retain Your Top AthletesWorkplace Strategy Five:

Moving from work done with hands to work done with the mind

> By 2015, the BLS estimates that 76% of U.S. jobs will demand highly skilled employees

Rebound success will depend on ability to keep star talent in place to drive renewal & growth

Emergent workers represent some of the most educated, most driven & successful workers the labor market has to offer

Understand What It Takes to Retain Your Top Athletes

Workplace Strategy Five:

Emergent workers are today’s “top athletes”EMERGENT MIGRATING TRADITIONAL

EducationHighly educated: 45% have college/grad degree

Educated: 28% have college degree

Less educated: 47% received their high school education or less

Gender M: 57% vs. F: 43% M: 57% vs. F: 43% M: 54% vs. F: 46%Average Age 44.0 40.5 42.4

Income33% make above $100K

45% make between $35K & $99.9K annually

36% make less than $49.9K annually

Managers 44% 39% 25%

Career Goals52% have a career goal they are working toward

40% have a career goal they are working toward

30% have a career goal they are working toward

Professional certifications/ additional education

44% have or are pursuing

Satisfaction with career progress

66% are highly satisfied

Defines loyalty as level of contribution 81% agree 66% agree 39% agree

Understand What It Takes to Retain Your Top Athletes

Workplace Strategy Five:

Emergent workers most sought-after, but most difficult to retain

> Majority of emergent workers (74%) believe when they change positions it will be at their own initiative, more so than traditional or migrating workers

Emergent workers are change-ready & have been more likely to have made a job change in the past year

Because these workers have career plans/goals, they require a work environment that helps them achieve those goals or they’ll find it elsewhere

Understand What it Takes to Retain Your Top AthletesWorkplace Strategy Five:

Emergent workers more satisfied overall with retention drivers, except those that are of most important to them

Align Retention Priorities with Employees’Workplace Strategy Six:

HR executives reacting to current

situation & pressures

> Cost control: 52% say maintaining costs is

top priority (+19% from 2005)

> Recruiting: A priority to 55% vs. 68% in 2007

> Retention: Only 23% concerned with

retention (-34% in 2005)

Lack of retention efforts exacerbate disconnect

> Employers & employees continue to have widely different views about

retention drivers

> Employees continue to be highly dissatisfied with key retention drivers

Align Retention Priorities with Employees’Workplace Strategy Six:

Differing ideas on retention

Align Retention Priorities with Employees’

Workplace Strategy Six:

Employees dissatisfied with key retention drivers

Greater Disconnect Among Accounting/Finance Retention Drivers

Accounting/finance workers generally more satisfied with retention drivers compared to overall workforce

Employers retention efforts falling short…

> Only 13% of employees say their employer is putting more effort into

retaining them, showing no change from 2007

> 33% say their employer is doing less now, 28% of Accounting/Finance

workers

Cost containment ineffective if not addressing costly turnover

> Employers believe only 14% of their workforce will leave, yet 26% say

they will look for a new job in the next 12 months, 23% Accounting/Finance

workers

Emergent Companies Have Adapted

70% of Emergent companies survey employees to identify retention drivers & measure satisfaction compared to only 42% of traditional companies

Emergent employers consider all attributes important to retention vs. traditional

Two Significant Cultural Shifts Can Greatly Impact

Ability to Attract, Cultivate, Retain

Key Workplace Strategies, Cultural Shifts

Employees’ Adoption of Social Media

Cultural Shift One

Who is really using social networks?

Cultural Shift One

Employees’ methods & expectations of job searching have evolved alongside social media

> Greater importance placed on the job search experience

> Increased transparency into company’s culture

> Pressing need to control online reputation

> Social media can drive top talent to the organization

Cultural Shift One

Most companies not leveraging social media productively

Does your company have asocial networking strategy?

How successful have your company’s

social media strategies been?

Nearly half (44%) of companies today are using social networking outlets

Cultural Shift

“Get the organization’s name out there” is the top reason why companies use social networking

Emergent Companies Leveraging Social Media

Emergent companies more than twice as likely to utilize LinkedIn, Facebook & viral video marketing

Cultural Shift One

Employees’ Desire to Feel Connected to Employer

Cultural Shift Two

Corporate mission & values have taken on significant role

Employers who have a clear mission & follow through on that mission have:

> Higher levels of satisfied workers

> Better employee retention

> Greater number of employee referrals

Employees’ Desire to Feel Connected to EmployerCultural Shift Two

Employees’ Desire to Feel Connected to Employers

Cultural Shift Two

Your Challenges, Your OpportunitiesForging Ahead

30+ Years of Experience33 Offices NationallyServing Fortune 500, Small & Mid-Sized Companies

Specialized professional placement firm committed to helping companies hire

the best talent for their business

High-Touch Recruiting Services in Accounting & Finance, Engineering & Manufacturing,

Sales & Marketing, Legal and Human Resources

Thank you & Questions

www.mergisgroup.com

Workplace Strategies For The Economy Recovery1

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