Making Retention Making Retention A Long-Term Objective…A Long-Term Objective…

Not A Short-Term ReactionNot A Short-Term Reaction

Mike TemkinMike Temkin

Vice President-Strategic Planning & DevelopmentVice President-Strategic Planning & Development

Shaker Recruitment Advertising & CommunicationsShaker Recruitment Advertising & Communications

Job Satisfaction Job Satisfaction 45%45%

Lowest Level Recorded in 22 Lowest Level Recorded in 22 yearsyears

The Conference BoardThe Conference Board

46% of companies reported 46% of companies reported falling engagement levelsfalling engagement levels

30% improved30% improved

Largest decline seen in 15 yearsLargest decline seen in 15 years

Employee EngagementEmployee EngagementEnd of 2Q – 2010End of 2Q – 2010Hewitt AssociatesHewitt Associates

62% of companies believe voluntary 62% of companies believe voluntary turnover will increase as the economy and turnover will increase as the economy and

job markets improve.job markets improve.

Mercer ConsultingMercer Consulting

28% of all executives concerned 28% of all executives concerned about losing top performers.about losing top performers.

41% of executives at firms of 41% of executives at firms of 1,000 or more employees say 1,000 or more employees say they are somewhat or very they are somewhat or very

concernedconcerned

Robert Half Professional Employment ReportRobert Half Professional Employment Report

Survey of 4,000+ CompaniesSurvey of 4,000+ Companies

2Q – 20102Q – 2010More employees quit their jobs More employees quit their jobs

than were terminatedthan were terminated

U. S. Bureau Of Labor StatisticsU. S. Bureau Of Labor Statistics

12% of high potential employees 12% of high potential employees were already searching were already searching

for a new jobfor a new job

Harvard Business Review, May 2010Harvard Business Review, May 2010

33% of American workers say will 33% of American workers say will look for new jobs once look for new jobs once

the economy gets betterthe economy gets better

Harris InteractiveHarris Interactive

Of those who plan to job hunt 48% are Of those who plan to job hunt 48% are mainly motivated by a loss of trust in mainly motivated by a loss of trust in

their employerstheir employers

Harris InteractiveHarris Interactive

41% of U.S. workers surveyed 41% of U.S. workers surveyed said the recession has made said the recession has made

them more inclined to look for them more inclined to look for new opportunities outside their new opportunities outside their

firms.firms.

Robert HalfRobert Half

Survey of 1,000+ WorkersSurvey of 1,000+ Workers

Estimates the cost of replacing Estimates the cost of replacing an employee at up to 250% of an employee at up to 250% of their annual salary. And that their annual salary. And that doesn’t include the value of doesn’t include the value of

institutional knowledge leaving institutional knowledge leaving the workplace.the workplace.

Harvard Business ReviewHarvard Business Review

From a overall corporate From a overall corporate perspective…. turnover costs perspective…. turnover costs

organizations more than 12% of organizations more than 12% of pretax income, all the way up to pretax income, all the way up to

40% for some.40% for some.

PriceWaterhouseCoopers’ Saratoga InstitutePriceWaterhouseCoopers’ Saratoga Institute

37% less absenteeism 37% less absenteeism

25% less turnover in high-turnover organizations25% less turnover in high-turnover organizations

49% less turnover in low-turnover organizations49% less turnover in low-turnover organizations

27% less shrinkage 27% less shrinkage

49% fewer safety incidents 49% fewer safety incidents

60% fewer product defects60% fewer product defects

Gallup Gallup

Top Quartile of Gallup's Engagement DatabaseTop Quartile of Gallup's Engagement Database

When Compared To Business Units In The Bottom Quartile. When Compared To Business Units In The Bottom Quartile.

Top Three Reasons Employees Are LeavingTop Three Reasons Employees Are Leaving

1) Lack of faith in the leadership or vision of the 1) Lack of faith in the leadership or vision of the companycompany

2) Concerns with the way employer/management are 2) Concerns with the way employer/management are treating peopletreating people

3) Lack of employer/management support in areas of 3) Lack of employer/management support in areas of performance review and employee developmentperformance review and employee development

Gallup OrganizationGallup Organization

30% of respondents are engaged.30% of respondents are engaged.52% are not engaged.52% are not engaged.

18% are actively disengaged.18% are actively disengaged.

Gallup OrganizationGallup Organization

Study On EngagementStudy On Engagement

TelecommuteTelecommuteAutonomyAutonomy

ProductivityProductivityAccountabilityAccountability

GuidanceGuidanceTransparencyTransparency

CompensationCompensation

Community OutreachCommunity OutreachTrust and Track Trust and Track

Screening & TrainingScreening & TrainingLearn, Grow and CompensateLearn, Grow and Compensate

Coach In The MomentCoach In The Moment

Making Retention A Long-Term Objective…Not A Short-Term Reaction

Mike Temkin

Vice President-Strategic Planning & Development

Shaker Recruitment Advertising & Communications

““Communicate Hope”Communicate Hope”“Office Communicator”“Office Communicator”

Discretionary ParticipationDiscretionary ParticipationGaming/Social Networking Gaming/Social Networking

Recognition/RewardRecognition/RewardVirtual LettersVirtual Letters

Distressed OrganizationDistressed Organization13,000 employees/6 hospitals13,000 employees/6 hospitals

Organizational OverhaulOrganizational OverhaulCommunication & CollaborationCommunication & Collaboration

Business RealignmentBusiness RealignmentMotivating Ennobling PurposeMotivating Ennobling Purpose

Consolidation/LayoffsConsolidation/Layoffs

““Fanatical Service”Fanatical Service”“Rackers”“Rackers”

Training & DevelopmentTraining & DevelopmentEmpowermentEmpowerment

The Straightjacket AwardThe Straightjacket Award

On-The-Spot-BonusOn-The-Spot-BonusNo Permission RequiredNo Permission Required

Not Just Fun Not Just Fun Not Just SupportiveNot Just Supportive

But Driven And RewardedBut Driven And Rewarded

Annual Snaggies Awards Annual Snaggies Awards Gilligan Snaggy Gilligan Snaggy

Mother Teresa Snaggy Mother Teresa Snaggy Elmer’s Glue Snaggy Elmer’s Glue Snaggy

Chris Farley Memorial Snaggy Chris Farley Memorial Snaggy

Customized Training Programs Tech Productivity Up About 50%Voluntary Attrition Down 50+%

Employee DevelopmentEmployee DevelopmentUp Through The RanksUp Through The Ranks

From Loading To Driving TrucksFrom Loading To Driving Trucks75+% of 44,000 managers 75+% of 44,000 managers

Most Vice-PresidentsMost Vice-Presidents

Community First, Company Community First, Company SecondSecond

Voice of the Village – CEO/MayorVoice of the Village – CEO/MayorTown Hall MeetingsTown Hall Meetings

Open Honest CommunicationOpen Honest CommunicationClarity and FocusClarity and FocusPositive AttitudePositive Attitude

Consistent Employee Consistent Employee RecognitionRecognition

ERE Excellence In RetentionERE Excellence In RetentionNot-For-ProfitNot-For-Profit

2% Turnover vs. 37%2% Turnover vs. 37%Connection - Staff & VolunteersConnection - Staff & Volunteers

$ Cost - $11 million per year$ Cost - $11 million per yearTalent Opportunity ProgramTalent Opportunity Program

3 year / 3 phase Program3 year / 3 phase Program5 point Online & Offline Support5 point Online & Offline Support

Merger with National City Merger with National City 20% Decrease In Requisitions20% Decrease In Requisitions

Repositioned Recruiters Repositioned Recruiters Retention / Internal MobilityRetention / Internal Mobility

Proactive Talent ManagementProactive Talent Management551 People Redeployed551 People Redeployed

Saved $9 MillionSaved $9 Million

New Hire Engagement ProcessNew Hire Engagement Process“Stay Connected” “Stay Connected”

6 Month On-boarding Program6 Month On-boarding Program“REACH”“REACH”

“Reinforcing Employees To “Reinforcing Employees To Achieve Career Heights” Achieve Career Heights”

Consistent Communication Consistent Communication 6, 9, 12 and 18 Months6, 9, 12 and 18 Months

Developmental Discussion Developmental Discussion TopicsTopics

2,500 employees2,500 employees“Star Award” Program“Star Award” Program$1 million - Three Tiers$1 million - Three Tiers

1) $100 Gifts w/o Mgt Approval1) $100 Gifts w/o Mgt Approval2) $350 - $3,000 w/ Mgt 2) $350 - $3,000 w/ Mgt

ApprovalApproval3) CEO Award – Crystal Trophy 3) CEO Award – Crystal Trophy

No Tracking Of SpendNo Tracking Of SpendEmployee Engagement SurveyEmployee Engagement Survey

Community, CamaraderieCommunity, Camaraderie

““Cheers”Cheers”Tiered Peer-Recognition Tiered Peer-Recognition

ProgramProgram6,500 Employees6,500 Employees

1) Online Peer 1) Online Peer AcknowledgementAcknowledgement

2) Co-Worker Nominated 2) Co-Worker Nominated Co-Worker of the MonthCo-Worker of the Month

3) Collectively Decide 3) Collectively Decide Co-Worker of the YearCo-Worker of the Year

Acquisition Growth 6,500 to Acquisition Growth 6,500 to 14,00014,000

“Applause”“Applause”Recognition Tied To Core ValuesRecognition Tied To Core Values

Trust / Innovation / Action or Trust / Innovation / Action or Customer-Driven InitiativesCustomer-Driven Initiatives

Employment Engagement Up Employment Engagement Up 14%14%

38 employees – 8 managers38 employees – 8 managersEmployee of the MonthEmployee of the Month

Personal AcknowledgementPersonal Acknowledgement

High Employee TurnoverHigh Employee TurnoverDiscounted College DegreesDiscounted College Degrees

Online UniversityOnline University15% Reduction On Tuition15% Reduction On Tuition

FT Employee For A YearFT Employee For A YearPT Employee For 3 YearPT Employee For 3 Year

Only Lost 1 Employee In 2 YearsOnly Lost 1 Employee In 2 YearsAverage Tenure Was 4 MonthsAverage Tenure Was 4 Months

Free Career TrainingFree Career TrainingTurnover ReducedTurnover Reduced

300% in 2007 to 0% in 2009300% in 2007 to 0% in 2009

Relationships & AccomplishmentsRelationships & AccomplishmentsRe-Recruit EverydayRe-Recruit Everyday

Everyone Should Be MarketableEveryone Should Be MarketableDevelopment Is An AdvantageDevelopment Is An Advantage

THE TAKEAWAYTHE TAKEAWAY

NOT Reluctant To Offer NOT Reluctant To Offer RecognitionRecognition

NOT Waiting For Resignations NOT Waiting For Resignations

NOT Waiting For Exit InterviewNOT Waiting For Exit Interview

Set Clear, Compelling VisionSet Clear, Compelling Vision

Consistent CommunicationConsistent Communication

Support Career Growth Support Career Growth

Recognize & Reward Recognize & Reward

Support Employee Well-BeingSupport Employee Well-Being

Focus On The Long Term.

Implement Specific And Measurable Actions And Take

Steps In Areas Where The Organization Will See A Clear

Impact.

Involve All Stakeholders Involve All Stakeholders Including Top Leadership AndAnd

Clearly Communicate Their Roles. Clearly Communicate Their Roles.

Understand and Focus On Key Understand and Focus On Key Employee Segments And Critical Employee Segments And Critical

Talent.Talent.

Strengthen The On-Boarding Strengthen The On-Boarding Process.Process.

Manage The Message. Manage The Message. Contribute To The Dialogue. Contribute To The Dialogue.

Build The Expectations…Build The Expectations…The Momentum and The Morale.The Momentum and The Morale.

RetainRetain

Re-EngageRe-Engage

Re-EmpowerRe-Empower

TrustTrust

ChallengeChallenge

LeadLead

Mike TemkinMike TemkinVice President – Strategic Vice President – Strategic

Planning and DevelopmentPlanning and Development

Shaker Recruitment Advertising Shaker Recruitment Advertising & Communications& Communications

708-358-0308708-358-0308mike.temkin@shaker.com

Mike TemkinMike Temkin

http://www.linkedin.com/in/miketemkin

http://www.facebook.com/mike.temkin

http://twitter.com/MikeTemkin

http://shakerrecruitment.ning.com/profile/MikeTemhttp://shakerrecruitment.ning.com/profile/MikeTemkinkin