Attracting, Motivating and Retaining Talent

21st Nov 2007 Bobby Ang Corporate Manager LKT Industrial Berhad

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ATTRACTING TALENT

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Understanding of the business model

Developing hiring policies, the need to understand the business model. The term business model describes a broad range of informal and formal models that are used by enterprises to represent various aspects of business, such as operational processes, organizational structures, and financial forecasts. A business model is a conceptual tool that contains a big set of elements and their relationships and allows expressing the business logic of a specific firm. It is a description of the value a company offers to one or several segments of customers and of the architecture of the firm and its network of partners for creating, marketing, and delivering this value and relationship capital, to generate profitable and sustainable revenue streams. Ostenwalder, Pigneur and Tucci (2005)

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Understanding the Corporate Culture

Corporate culture refers to the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization's goals, strategies, structure, and approaches to hiring policies. "It is an unwritten value-set that management communicates directly or indirectly that all employees know and work under," stated John O'Malley in Birmingham Business Journal. "It is the underlying soul and guiding force within an organization that creates attitude alliance, or employee loyalty. A winning corporate culture is the environmental keystone for maintaining the highest levels of employee satisfaction, customer loyalty, and profitability."

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Choose the right person for the right job EVERY TIME
Your hiring decisions will either make or break your company Need to sell the company business model and culture Interviewing Process (applicability differ for different job) Traditional Situational Behavior-based Six companies has been successful using Behavior based interview Golden Corral How to choose Ranstad North America the RIGHT Inter-Continental Hotels PERSON for TD Madison & Associates the RIGHT JOB Hallmark Cards EVERY TIME GE - Lori Davila & Louise Kursmark
2007 LKT Strictly Private & Confidential

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Training them right

Develop a comprehensive training policy Stages of training Orientation Probation Period On the job training Organization Excellence training Re-fresher / retraining Training is expensive, Training Need Analysis is crucial to get the right training to train the right people

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MOTIVATING TALENT

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Motivating the Employee

A simple definition of motivation is the ability to change behavior. It is a drive that compels one to act because human behavior is directed toward some goal. Intrinsic (internal) Motivation; it comes from within based on personal interests, desires, and need for fulfillment. Extrinsic (external) Motivation factors such as rewards, praise, and promotions also influence motivation. People who are committed to achieving organizational objectives generally outperform those who are not committed. Those who are intrinsically rewarded by accomplishments in the workplace are satisfied with their jobs and are individuals with high self-esteem. Therefore, an important part of management is to help make work more satisfying and rewarding for employees and to keep employee motivation consistent with organizational objectives. With the diversity of contemporary workplaces, this is a complex task. Many factors, including the influences of different cultures, affect what people value and what is rewarding to them.

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Motivating the Employee

Quick (1985) presented these four underlying principles that are important to understanding motivation: People have reasons for everything they do. Whatever people choose as a goal is something they believe is good for them. The goal people choose must be seen as attainable. The conditions under which the work is done can affect its value to the employee and his or her perceptions of attainability or success.

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Motivating the Employee

Hierarchy of Needs Maslow 1943

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Motivation-Hygiene Theory
Motivation-Hygiene Theory Frederick Herzberg Motivation is based on the positive satisfaction that psychological growth provides. The presence of factors such as responsibility, achievement, recognition, and possibility for growth or advancement will motivate and satisfy people. The absence of these factors will not necessarily demotivate or cause dissatisfaction. Hygiene is based on an individual's desire to avoid deprivation and the resulting physical and emotional discomfort. Hygiene factors include willingness to supervise; positive working conditions; interpersonal relations with peers, subordinates, and superiors; status; job security; and salary. These factors do not motivate, nor will their presence cause job satisfaction. Their absense, however, will cause dissatisfaction.

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Theory X and Theory Y

Theory X and Theory Y Douglas McGregor, a professor at the Massachusetts Institute of Technology The assumptions of Theory X are that most people will avoid work because they don't like it and must be threatened or persuaded to put forth adequate effort. People have little ambition and don't want responsibility. They want to be directed and are most interested in job security. The assumptions of Theory Y are that work is very natural to people and that most people are selfdirected to achieve objectives to which they are committed. People are ambitious and creative. They desire responsibility and derive a sense of satisfaction from the work itself.

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Motivating the Employee

The application of motivation theories can help managers to create work situations and employee recognition systems that help workers fulfill their needs. Some aspects of all jobs may be routine or mundane, but other aspects can be developed to promote job satisfaction and increased productivity. The sharing of responsibility can provide opportunities for growth, renewal, and achievement. This empowerment of workers can heighten employee motivation and improve morale. Both long-term and short-term incentive programs are needed for the employee commitment and effectiveness necessary to achieve organizational objectives. And in all instances, workers must be treated fairly and equitably.

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Performance Scorecard
Measurement of employee work effectiveness using objective criteria. Performance appraisal systems hope to achieve higher productivity outcomes by delineating how employees meet job specifications. A major challenge for performance appraisal systems is to define performance standards while maintaining objectivity. Methods Traditional Performance Appraisal Balance Scorecard 360 Degree Peer to peer Key Performance Indicator (KPI)

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RETAINING TALENT

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Retention of Employee
Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. A rather obvious way for a company to better retain their employees is by offering competitive salaries and bonuses. Everyone likes to be recognized for a job well done, and nothing makes someone feel more appreciated than cold hard cash. In many instances, employee retention starts just as soon as an employee is hired.

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Benefits of retention
The retention of existing employees saves companies money. There are advertising and recruiting expenses, orientation and training of the new employee, decreased productivity until the new employee is up to speed, and loss of customers who were loyal to the departing employee. When an employee leaves a company for a direct competitor, there is always a chance that they will take important business strategies and secrets with them to be exploited by the competition.

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Retention of Employee
Company policies and practices has to be in place The Compensation and Benefits package has to be tailored for different job categories with understanding of the job market factors, requirement, social and economic environment Creating retention program right from the beginning when an employee joined the company

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Rewards appropriately
Methods Individual Normally on a annual basis Time to time on achievement/accomplishment Departmental Annually and usually at the end of physical year (profit driven) Time to time on achievement/accomplishment Company Contractual/Obligation Profit Driven (discretionary) Events and Celebration One time off Time to time productivity, efficiency, reach goals Types of Rewards Money In kinds Gifts/Certificates Simple Thank you Note

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Have a system

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Put your system in place

Competency Modeling Date less quickly then job descriptions Are focused on results, not work activities Include focus on the intangible-but-increasingly important soft skills associated with successful performance Include a focus on interpersonal relationships Focus on the people who do the work, not the work they do Employee Profiling Profiling the traits and characteristics shared by the best people already working for you can dramatically increase your ratio of successful hires. Employee profiling is a process that moves beyond the resume and assesses less visible indicators for potential success. These indicators can include such things as how well potential employees will interact with co-workers and clients, or the number of projects they will be able to manage simultaneously and well.
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Put your system in place

Background Check Secrets reveal A background check is the process of looking up official and commercial records about a person. Background checks are important because they allow better informed and less-subjective evaluations to be made about a person but also pose risks. Employee Assessment A mix of methods for different job categories Training Program Covers organization requirement, personal development and skills development Company Business Model, Policy & Procedures, KSF & KPI The soul of a successful company

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Thank you

Bobby Ang Email : bobby.ang@lkt.com.my Mobile : +6012 4091288

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