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Professional Way Limited

Retention and Corporate Image


Having trouble keeping employees

In Hong Kong from


1997 to the present
annual turn over
doubled from 5% at
one time even
peaking at 20%
Is it just because of
the economy?
Or is there
something more?
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Traditionally Certain areas were
examined (Western)
After 30 years of research Gallup
devised a model of improved performance
focused on:
“right fit”
great managers
and engaged employees.
According to Gallup 70 percent of employees
quit their jobs because of bad management
styles of immediate supervisor

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The Concept of “忍”

Recent data from Mainland China and


Hong Kong flies in the face of Gallup’s
research.
Employees who indicate they will
change jobs in two years or less say:
On average less than 15% would leave
because of their supervisor!

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The Concept of “忍”
Face-to-face interviews and focus
groups indicate cultural norms maybe
the root:
Traditional Chinese culture teaches of the
concept of “忍” or tolerance
If a job is seen as conveying other
benefits often employees will suffer
through a poor supervisor

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Our research indicates the
following important influences
It’s all about “Great Corporate Image”
Image
Employees who are proud of company’s
“Great Corporate Image”
Image are less likely
to want to leave company
“Right Fit” and ability to grow and
develop also cited as important factors

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Case Study: French Clothier

In spite of increased
overtime, without
benefit increase,
increase
French Clothier was
able to retain
employees. How?

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Case Study: French Clothier

High “Mission” scores!


Employees are engaged and
understand personal goals beyond
receiving a paycheck.
French Clothier’s “Great Corporate
Image” helps company retain
employees

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Proud About French Clothier

Other
Not Proud! 2%
11%

Fulfilling Work
11%

Meaningful Role
2% Great Corporate
Image
Special Work 54%
Environment
4%
Great Manager
4%
Quality Products
12%

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Case Study: French Clothier

French Clothier
4 Average

1
M1 M2 M3 M4

M1 We have an exciting vision for our future


M2 We have a clear strategic direction and understand the meaning of our
organization’s existence
M3 We have ambitious but attainable goals
M4 Our leaders have long-term, clearly enunciated strategies for our development

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Case Study: French Clothier
I plan to stay another two years

Disagree
15%

Strongly Agree
36%

Agree
49%

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Case Study: Middle Kingdom
Stationary
Employee Satisfaction
significantly higher in
less developed areas
Mission and
Consistency are
especially high in rural
areas

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Middle Kingdom Stationery –
Mission
7
5.7 5.8 5.7
6 5.5
4.9
5 4.6 4.4 4.5
Rural
4 Urban
3
2
1
M1 M2 M3 M4

M1 We have an exciting vision for our future


M2 We have a clear strategic direction and understand the meaning of our
organization’s existence
M3 We have ambitious but attainable goals
M4 Our leaders have long-term, clearly enunciated strategies for our development

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Middle Kingdom Stationery –
Consistency
7
6
4.9 4.9 4.7
5 4.6

3.7 3.9 Rural


4 3.4 Urban
3.1
3
2
1
C1 C2 C3 C4

C1 Different units in our company have a common perspective


C2 We have the same organizational values in all business units
C3 Our leaders “walk the talk”
C4 Our organization reaches consensus easily

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Case Study: Middle Kingdom
Stationary
Staff in countryside
had far more
positive outlook than
Management.
Staff showed far
greater pride in
working for company

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Why Proud about Middle Kingdom
Stationery? Urban

Not Great Great


Proud! Not
Image Image
8% Proud!
14% 13%
19%

Quality
Products Quality
Fulfilling 19% Products
Work 24%
Fulfilling
40%
Work Great
26% Manager
Work
Environ 1%
Role Role
Society 14% Work
Society
5% 9% Environ
8%

37 Managers 193 Respondents

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Why Proud about Middle Kingdom
Stationery? Rural

Not Great
Not
Proud! Image
Proud!
6% 11%
11%
Quality
Products
Fulfilling
6%
Work
Great
19%
Image
Fulfilling Great Role 48%
Work Manager Society
44% 22% 5%
Work
Environ
6%
Work
Quality
Environ Great
Products
11% Manager
8%
3%

18 Managers 897 Respondents

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Compare: “Not Proud!” and “Great Image”
Who will leave job in 2 years

Not
70% Not
Proud!,
60% Proud!,
55%
61%
60% 50%
50%
40%
40%
Company
Average,
30%
30% 26%
Company
Great Great
20% Corporate
Average,
20% Corporate
Image, Image,
15%

11% 11%
10% 10%

0% 0%

Headquarters Countryside
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Case Study:
Yankee Gas: Returns & Trust
Involved a two
month pen and
paper Odyssey
Encountered many
reactions from
employees
This is a tale of
returns and trust

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Case Study:
Yankee Gas: Returns & Trust
Pen & Paper Survey administered in
several locations throughout China
Returns for HQ was 72%
Returns for most rural factories
exceeded 90%
Returns from three rural factories was
100%

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How can you make people Proud?

Improve internal
“Consistency”
“Consistency” of
value alignment
throughout an
organization
Employees are the
“right fit” for the
organization’s
culture
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How can you make people Proud?

Improve clarity of
“Mission”
Inspired by the
meaning and very
existence of the
company
Leaders’ vision
drives the company
in a unified direction

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Case Study: European Fire Safety

European Fire Safety


had 35%-40%
turnover per quarter
Problems stem from
Corrupt leadership,
weak organizational
direction and
consistency

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Organizational Culture Comparison
2003.3 vs. 2003.12 vs. 2004.7

5.5

4.5

4
1st
3.5 2nd
3rd
3

2.5

1.5

1
M1 M2 M3 M4 C1 C2 C3 C4

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Case Study: European Fire Safety

European Fire Safety participated in


Vision, Mission, Values Workshop.
Turnover decreased from 35%-40% to
under 20%
Improvement in retention tied to
culture shift
Employees feel their own values are
aligned for a “right fit”

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Great Corporate Image = Great
Corporate Culture?
Organizations with strong vibrant
cultures seem to have better internal
image and satisfaction
Usually Corporate image is tied to
ratings in Mission and Consistency
Data supports employees NOT willing
to trade pride in corporate image and
“right fit” for fat paychecks

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What makes a great corporate
culture?
Is it VISION! MISSION! VALUES!?
Does a clearly stated VMV make a
difference?
Stating it clearly seems partially effective
Living by those standards seems to be very
important
Certain employees seem better suited
to an organizational “right fit”

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What should a Culture have?

Two Aspects Similar


to Yin and Yang
An unchanging Core
Purpose
Values
A Changing and
Flexible Future
BHAG Goals
Evolutionary Changes

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Case Study: German Machinery

A company with a
long tradition:
Over one hundred
fifty years
In china pre-Maoist
Revolution
Clearly enunciated
vision and values
Employees have a
sense of belonging

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Case Study: German Machinery

Very low response rate to leaving:


0% of managers plan to leave within
two years
Higher than average scores in areas of
Mission and Consistency
Very few people considering leaving for
money as an option

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Why Proud of German Machinery?

Not Proud!
8%
Fulfilling Work
10%
Role Society
4%
Work Environ
2%
Great Manager
3% Great Corporate
Quality Products Image
10% 63%

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German Machinery

German Machinery
4 Average

1
M1 M2 M3 M4 C1 C2 C3 C4

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“Not Proud” employees and why they would
leave German Machinery

Other (Besides
Company)
6% My Supervisor
6%
Lack Respect
6%

Low Job Satisfaction


33%

Better Pay
49%

18 out of 221 Total


Reponses

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In Conclusion

In China’s Century organizations who


wish to keep their talent must look:
Inward to Consistency in values throughout
an organization’s Culture
Inward to compelling “Missions” that
inspire and drive an organizations
Organizations need the “right fit” of
employees aligned to the values and
vision of their culture
Copyright © 2005 by Professional Way Limited.
All rights reserved.
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Copyright © 2005 by Professional Way Limited.
All rights reserved.
版权所有, 翻印必究。