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Table of contents
1.Improving effectiveness and efficiency of HR Services 2.Leadership and Talent Development 3.Capability Building 4.Employee Engagement 5.Employee Retention

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Best Practices in Leadership Development

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Best Practice Organizations. Five organizations that are popularly recognized for their leadership development practices: General Electric, Motorola, PepsiCo, Federal Express, Johnson & Johnson & PepsiCo: General Electric: 1.In terms of fostering a positive culture for leadership, there is little denying that GE is in a class of its own. The focus on leadership development is system-wide at GE, and not just at the top. All managers are required to participate in leadership training at each career stage. Different skills and competencies are emphasized at different levels, which translates into level-specific course content. Development is targeted specifically at career transition points to help managers better learn from experiences at their present level while preparing them for expected leadership demands at the new level. 2.Another corporate value that is transmitted to employees by means of leadership development programs is to “think small and act small.” As a result, the company will grow. This translates into the maxim that the best way to lead is through managing change. In accordance with this maxim, GE is ridding itself of most of its centralized planning. 3.A take-away principle from the GE approach to leadership development can be stated succinctly as implementation. There is a broad range of best practices to choose from, including those adopted by GE such as 360-degree feedback, coaching, and action learning. However, it is mostly about doing the best practice consistently and with excellence every time. Much of what GE does with regard to leadership development they acknowledge is not new. But aligning the initiatives with their core values and overall strategy pushes people to implement change with a passion. Motorola. 4.A distinctive feature of Motorola’s approach to leadership development is the Motorola University. Originally called the Motorola Training and Education Center (MTEC), it was founded in 1980 with an original investment of $40 million. This investment was made despite financial hardships created by a deep recession that year. The original mission of MTEC was to design and deliver training services that support Motorola’s business objectives. Since 1990, Motorola University has diversified its mission by establishing partnerships with institutions around the world. It is now considered to be the strategic learning arm of the corporation, complementing the training that takes place in Motorola’s business groups. 5.Although it is billed primarily as a quality initiative, Six Sigma is inherently about leadership development. In addition to transmitting the cultural values behind Six Sigma, some companies like GE use their own managers to impart the philosophy and techniques of the process to others in the organization. These individuals have achieved “Master Black Belt” or “Black Belt” status through training and successful completion of a number of Six Sigma projects. At present, GE has 4,000 fully trained Black Belts and Master Black Belts, and 60,000 Green Belt part-time project leaders who have completed at least one Six Sigma project. Some of the most sought-after candidates for senior leadership jobs are those who have finished Six Sigma assignments. At places like Motorola and GE, Six Sigma is becoming part of the “genetic code” of future leadership.

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6.Besides the Six Sigma initiative, Motorola has other important leadership development initiatives. The company spends more than $150 million annually on corporate education and development. At present, Motorola requires a minimum of 40 hours a year on job-relevant training and education for every employee. The leadership curriculum at Motorola varies by level (supervisors, first-time managers, executives), but each leadership development program uses the same general framework with different curricula (Whitmire & Nienstedt, 1991). Much of the program content for lower level managers is based on Hersey and Blanchard’s Situational Leadership Theory. 7.At the senior executive level, Motorola offers the Vice President Institute (VPI) to foster leadership development in new vice presidents. The biggest issue that the VPI addresses is how to sustain growth in a corporation that already grows by more than 15% annually. The overall goals in establishing VPI were to teach about the company’s unique heritage as a second-generation, familyowned business. VPI was also designed to help the vice presidents explore ways to invent new technologies and new businesses (not just new products), with a focus on innovation, globalization, and communications. As such, leadership development is tied directly to a key business imperative. In this particular case, the imperative is one of sustaining growth. 8.Another important aspect of the continued success of Motorola’s leadership development system is the active involvement of those at the top of the Motorola hierarchy. The corporation’s chairman, Bob Galvin as well as many of the rest of the senior team members attend development programs. Some of the top leaders, including Galvin, serve as instructors and facilitators at executive development programs. Top-level leaders also serve on the advisory board for Motorola University and on the corporate policy committee that determines the level of funding for development. This type of high-level support is critical to the success of systemic leadership development in any company. PepsiCo 9.PepsiCo. Chairman and CEO Roger Enrico is personally committed to leadership development in both spirit and action. Even as the top honcho of a $22 billion corporation with over 150,000 employees, Enrico spends more than 100 days a year personally conducting leadership workshops for senior executives. A number of other leadership development programs involve top-level executives as guest speakers (most often on videotape). However, Pepsi’s “Building the Business” program is different in that Enrico is the full-time lead instructor, supported by several other executive teachers. Pepsi’s central program philosophy is simple but powerful: The most important responsibility of a leader is to personally develop other leaders. This is especially important in an organization in which 86 percent of executive vacancies are filled from within. 10.PepsiCo’s efforts began with a challenge from then-CEO Wayne Calloway to develop the world’s leading executive development program. The company believes it has succeeded by making Building the Business an effective model for effective senior leadership development. The approach is grounded in the straightforward notion that the most important job of a leader is to make new leaders. These new leaders are prepared to translate corporate strategy into local initiatives, while also creating new leaders. Simultaneously running a business and developing new leaders is an immense task. But the top executives at PepsiCo believe that the risks of not doing so far outweigh the additional demands. Unless they personally invest in developing the next generation of leaders, growth will be limited and corporate survival uncertain.

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1999). The message is clear: As a manager you are expected to do extra work without receiving extra pay. those members of the organization who are widely known and admired for their leadership skills). a candidate must have demonstrated excellence along all nine of the LEAP competencies.11. The mission of the Leadership Institute has evolved to focus on developing leaders throughout FedEx by applying principles of successful leadership. Following the one-day introductory course. These two theories are used as foundations in a number of other leadership development programs in other organizations. where Chairman and CEO Roger Enrico spends more than 100 days a year personally conducting workshops for senior executives. PepsiCo’s “Building the Business” program is modeled on Enrico’s personal leadership philosophy. 13. judgment. flexibility.Custom programs may be designed and delivered “in house. or PSP). The FedEx version of transformational leadership is based on three specific behavioral dimensions: charisma. These dimensions are combined with six other leadership competencies: courage.. This written statement is termed a “leadership 6 . and intellectual stimulation. system-wide leadership development initiatives that socialize managers to the PSP philosophy. individualized consideration. It heavily emphasizes feedback and personal coaching for the nine participants included in each workshop. and profits will follow (People-Service-Profits.e. FedEx claims that this portion of the LEAP process has resulted in over 60 percent attrition of the course participants (Conger & Benjamin. The message is seen as especially relevant if delivered by someone inside the company with a world-class reputation for success. and respect for others.An integral piece to effective leadership development at FedEx is the Leadership Institute. and motivate performance beyond expectations. as compared with an external person (often a business school professor).” or developed in conjunction with an external partner such as a university or a consulting firm. dependability.LEAP is a thorough individual evaluation process that links leader selection with development. Programs tend to be favorably received if delivered by local heroes (i.The guiding philosophy at FedEx is that when people are prioritized first. Some of these principles are based on well-known models such as Hersey and Blanchard’s Situational Leadership Theory and Greenleaf’s servant leadership model. but fell short in preparing them for leadership. candidates must complete a written statement demonstrating evidence of successful performance on all nine leadership dimensions. Transformational leaders are thought to arouse higher-order needs in followers. Distinctive features of the FedEx approach include comprehensive. The process begins with a fullday course titled “Is management for me?” This one-day program provides a realistic job preview of the responsibilities of a front-line manager and is usually held on a weekend on the participant’s own time.A somewhat unusual theoretical underpinning is FedEx’s use of the transformational leadership model most recently advanced by Bernard Bass (1985). Before being given the opportunity to apply for managerial positions. 14. 15. Leaders at all levels are expected to nurture a people-first culture at FedEx. Together these nine dimensions form the backbone of the Leadership Evaluation and Awareness Process (LEAP). The Institute was founded in 1984 when several senior-level managers concluded that the organization was effective at preparing people for traditional management functions. Federal Express (FedEx) 12. Those individuals who continue with the program are more likely to stick with the job as a result of receiving a clear set of expectations of what a management position will be like. integrity. they will provide the highest possible service. This approach is epitomized at PepsiCo. and processes that link selection with development.

The topics covered in this session include Risk Taking. which address topics such as Exploring Teamwork (a wilderness-based learning course). 20. There are additional “elective” courses open to any member of management. and discuss business ideas in-depth with members of senior management. 19. 1993).Management Principles II is aimed at helping senior managers link the dimensions of leadership with current business imperatives. Diversity.e. philosophy.. This dynamic format allows participants to define a vision for their own business units. instructors). classroom lectures). increase their knowledge of global economics.At Federal Express (FedEx). and how important front-line people are to the success of FedEx and its basic philosophy of People-Service-Profit (PSP).g. 17. reflective observation (e.CEO Ted Weise spends several hours with every supervisory class discussing the strategic objectives of FedEx.g.g. 18. including group discussions and working sessions with officers and directors of the company. The content is divided into four primary areas: Transition. his definition of leadership. A primary responsibility of a management Preceptor is to develop. Diversity. and the Global Economy..g. including a rating in the top 20 percent of all managers on the Leadership Index of the annual employee satisfaction survey. application of learned principles to real-world business problems). his own personal leadership philosophy. and The Big Picture. Corporate Expectations... 7 . and Participative Leadership. Situational Leadership. and active experimentation (e. journaling).Another interesting aspect of the FedEx approach to leadership development is the use of management Preceptors (i. abstract conceptualization (e. business simulations). design. He discusses the company’s strategic objectives. An important component of system-wide leadership development is integrating the curriculum across organizational levels. Corporate Culture.The Leadership Institute curriculum is grounded in action learning with a combination of concrete experiences (e. and facilitate courses at the Leadership Institute. 21. and the importance of front-line managers to the PSP philosophy. and design strategies for communicating this vision to involve others in achieving organizational goals. CEO Ted Weise spends two to three hours with participants in every supervisory leadership course. Preceptors are carefully chosen from among the ranks of the senior managers and managing directors who are nominated by someone at the vice president (or above) level. There are additional educational and experience requirements for Preceptor eligibility.Management Principles III helps managing directors evaluate their leadership approach. Much of the second session is based on experiential activity. which are required for the members of the first three management levels (Murrell & Walsh.” 16..The basic FedEx values. Teamwork. 22. and culture are incorporated into the “core management principles” courses.profile. Management Principles I is designed for first-level managers to create an awareness of the behaviors that managers must model to be successful in leading work groups.

28. 24.J&J is a prime example of how to use a leadership development system to socialize managers in key corporate values and future visions. and Teamwork. and stockholders. These characteristics are important components to leadership development in any company.In 1995. The Credo was. unified fashion. Preceptors undergo intensive training.Johnson & Johnson. Organizational leadership uses action learning projects as a catalyst for applying the leadership lessons to a particular business imperative. 29. and the impact of the Credo on leadership development. including pre-work assignments. 27. employees. the community. as well as into more long-term strategic actions. Johnson & Johnson.” consisting of a set of leadership recommendations set forth by the FrameworkS group for executive. Credo leadership uses J&J senior executives to facilitate discussions of the values embodied in the Credo and how to incorporate them into daily business activities. It is no surprise that the Credo played a central role in the revised leadership development process.23.what is this Credo? It is a one-page document written originally by General Robert Wood Johnson in 1943 outlining the corporation’s responsibility to customers. The entire program runs for approximately four months. and 90 days of post-program project work.FedEx also uses what they call “Management Preceptors” to teach their courses. seen as visionary in terms of putting customers first and stockholders last. previous Credo Survey results) as well as new surveys of the executive-level team.A noteworthy aspect of the new development process is the “Standards of Leadership.Personal leadership includes a 360-degree assessment on previously identified core competencies. primarily in the areas of teaching and facilitation prior to entering the classroom. Indeed. including a plan for a review/feedback session with the sponsor. the FrameworkS taskforce proposed a set of recommendations regarding the content and process of leadership development across first-. middle-. The focus of the case was on how J&J puts their Credo into action. Credo . and for promoting the concept of fair return rather than maximum profitability. 25. J&J began remaking its leadership development approach. 26.. and still is. 360-degree surveys. which provides for a continual rotation of new instructors and introduces fresh viewpoints and ideas into the curriculum. and urged J&J managers to apply it as part of their everyday business philosophy. They serve a term limited to 24-30 months. There are three components of the standards-based leadership development process.g. Leaders need to send a consistent message to move organizations forward in a coherent. Johnson saw to it that the Credo was internalized by the company.” Despite – or maybe because of – its business success and expected growth. and executive-level positions. These are senior managers and managing directors who are recognized as outstanding leaders and are nominated by a vice president. By timing specific programs at career 8 . the Credo is an integrating mechanism in developing leadership throughout J&J.Using data from existing sources (e. People. the week-long off-site formal program. the J&J Executive Committee used an existing internal process called “FrameworkS” to examine the topic of “Leadership.and middle-level managers. The Harvard Business School used the Credo as the centerpiece to one of its acclaimed case studies. The standards were crafted subsequently into a customized 360-degree feedback instrument that has been incorporated into the performance evaluation process.

’ 33.Siemens wants all of its employees to be truly involved in the business and to feel part of its success. Cults are based upon hierarchical structures wherein the people at the top are considered better than those at the other levels. leadership development needs to be viewed as a process not an event. our teams and the total organisation’. This is referred to as the Performance Management Process. 35. Targets for individuals are related to targets for the whole business. The quality of our people and of our teams is our most valuable resource.Siemens’ operations are based on a teamwork culture. particularly in today’s changing world where knowledge flows round the globe with lightning speed and is easily available. The process creates a direct link between the strategy of the whole organisation and plans for each individual. 34. mentoring.Leadership-Infosys way . Given the difficulty in successfully developing new leadership habits. A high performance team is one in which all members of the team work towards shared targets and have a sense of shared responsibility for the results the team achieves. Siemens states that ‘our business success depends on the performance of each individual. but also to add value to the ‘Infosys Culture’. With this in mind Siemens establishes clear expectations. This initiative seeks to increase and facilitate leadership skills among its employees. Creating a high performance culture 32. Klaus Kleinfeld: ‘Many times in my life I have seen how one individual can make a big difference. individual goal setting and development planning. Throughout this period leaders engage in an integrated set of learning experiences such as 360 degree assessment.To prepare the leaders of the future.Siemens has created a standard process for managing the performance and development of all employees. It is through meeting personal targets that the individual is best able to help the organisation to achieve its targets. The leader’s interests are of prime importance as they transcend the organisational welfare and mission. professional reading and reflective conversations. The course not only aims to improve leadership skills. This emphasis on the team is set out clearly in a quote from the global Chief Executive Officer of Siemens. it is important to focus on those aspects of leadership where behavioural change would have the highest amount of impact. Within this lifelong process. Employees therefore need to know how they fit into the business. 31. 30. experiential skill development programs. At an individual 9 . This is achieved by combining classroom and actionoriented practical learning. the Infosys Leadership Institute (ILI) aims at leadership development programmes designed across the organisation— from the lower to higher levels of management.transition points.Leadership development should be needs not wants driven. intensive periods of time (typically 6-12 months) are devoted to improving specific leadership behaviours. Everyone plays their part in achieving great results.Like the training schedule of an elite athlete. reflective journaling. particularly when working in a great team. on-the-job learning projects. These guidelines synthesise existing best practices in leadership development design. J&J provides a good example of how a development system may work as a catalyst for engaging leaders in a process that prepares them for a significant change in the content and scope of role responsibilities. Every individual is given targets based on their role and responsibility within the organisation.

bring forth lessons from the past when considering options with existing dilemmas and to form new. leaders should make the time to see them in action on several different occasions. To be most effective there must be a real risk of the project being a failure. leaders engage in reflective learning practices.level this involves some form of assessment to identify leadership strengths and developmental needs. These programs may provide the time and space for leaders to digest their assessment results. coupled with a strategic needs analysis can be used to identify key common needs. evidence based and practical leadership skill models along with opportunities to practice these new skills within simulated environments. At a group and organisational level. 39.Mentoring can also play an important supporting role over a leader’s 6-12 month learning journey. We suggest starting with 3 months of small projects that act as a practice field before starting on the more challenging project. noting patterns and subtle nuances. 38. Other unexpected opportunities may also present themselves along the way. Rather than seeking out a mentor based on seniority or overall leadership prowess. the participant must be the one responsible for the project’s success or failure and it must be clear whether the project has succeeded or failed.Each participant should be engaged in goal specific on-the-job learning projects. stable neural circuits that underpin the formation of new leadership habits.Sustained behavioural change is far more likely if. leaders should find mentors who are effective within their specific goal area. If the mentor has a natural ability in the goal area. 40. The initial program may engage participants in practising foundational skills that were identified as key areas of need at a collective level. 36. Such reflective practices help leaders to draw out lessons from their on-the-job experiences. Further. Such accountability helps to motivate and challenge leaders to go the distance. This helps to align individual leadership efforts and builds in continuity when any individual leader moves on. collective assessment results. These are real workplace projects which require the person to effectively use goal related behaviours for the project to succeed. and negotiated with the leader’s supervisor. Subsequent skill development programs may cater for sub-groups of participants within their areas of need. along with a qualitative learning story synthesised from reflective journal entries. 37.A common and effective way to kick start the subsequent learning journey is through an experiential learning program or a set of experiential skill development programs. throughout the 6-12 month learning journey. 10 . Once a mentor has been found.Develop leadership teams at a collective level. It includes quantitative measures such as the ALDC’s Development Impact 360 degree assessment. it is likely that he or she will not be consciously aware of what they do that is effective. set their development goals and develop their learning plan.Leaders should be held accountable for achieving their goals and making behavioural changes within their workplace. These include reflective journaling and reflective coaching conversations. Hence the onus is on the learner to observe closely. This process culminates in the setting of 1-3 developmental goals that the individual leader seeks to achieve within a 6-12 month period. Some projects should be pre-planned. building on the point above. 41. and then comparing these developmental needs to the leadership behaviours that are most important to achieving results within that leader’s context. They should also include opportunities for participants to be presented with goal relevant.

45. either the financial muscle or the size of an organisation do not bind leadership. assessing personal factors such as locus of control. Vice President. it is best to invest in those most likely to actually develop as a result of the program. HP. Yet the management firmly believes that the methods and processes have little meaning without effective leadership. This strategy is integrated with all HR practices at Airbus. He studied the existing skills and talent within the company and determined the missing links. 11 . Crook emphasises that to get people in flow. Existing supervisor ratings have been shown to not be an effective way of selecting leaders to participate in a development program.The number is not important it’s the relevance of the metrics that counts. openness to experience. It thus initiated the “growing together” strategy to analyse the impact of leadership on business performance. HP.When planning organisation-wide or centrally sponsored development opportunities. 43. Crook thus accomplished the most challenging job posed to his leadership abilities. his first priority was to get the right mix of skills required to excel in business. His philosophy of leadership is inspired by nature and he believes that as nature maintains a balance between life and death. 44.leadership teams can examine how they can use each other’s strengths to offset each others’ weaker areas. He formed a team that consisted of both new hires and old timers who had been with Patagonia for almost two decades. Thereafter. conscientiousness and self-monitoring. Being an integral part of the performance and reward system it helps determine the most effective leadership style. When Crook took over Patagonia’s reigns. 42. he brought in seven people with completely new and different skills.Patagonia’s Crook too has his own version of leadership. Airbus has a well aligned.According to Michael Crook. leadership is all about maintaining a balance within the “organisational ecosystem”.It is about Airbus and its tryst with leadership development. for instance. leadership at Patagonia lays great stress on metrics. Airbus relies heavily on its World Class leaders Programme. It’s important to develop valid and reliable metrics and stay focused on them . This made a good blend of experience and talent that created a positive. At a macro level. This strategy is a micro level leadership initiative largely confined to the human resources function. organisations need to institute methods that connect their people with the metrics. In addition. systematic and integrated set of processes and methods that have created a winning culture in the organisation. follows a four-component leadership framework.Leadership development at Airbus -. performance-driven and strong organisational culture. leaders need to integrate individual goals with the overall corporate objectives. achievement drive. According to Crook. have leaders self-nominate and then carefully select from this group those leaders that show the highest level of aptitude for development. CEO Patagonia and Ann Livermore. Then. so does a leader. Such individual factors have a large impact on subsequent developmental success and if interest exceeds the available funds. The components central to this are: • • • • Strategy (deployment of people and resources) Structure and processes (delivering strategy) Metrics and reward (support systems) Values and behaviour required for success. further developing the effectiveness of the leadership team as a whole.

cross-cultural business experience needed to develop a global mind-set. 48. Beginning early also signals to people that they are viewed as high-potential.Second. 49. while also relying on new research developments on global leadership. The strategic linkage between competitiveness and global leadership is crystal clear. Top management should be involved in developing these criteria. 47. The senior executives choose mentors whom they admire in the same subfunctional area from another company. enables the company to identify whether a particular manager has been exposed to both the automotive and aerospace businesses.. international assignments may be easier when employees’ children are younger and more readily moved and before elderly parents require personal care. The Management Resource Review process at TRW. The promise of stock options from the company that has no immediate plans to go public.. says. Instill Corp. successful programs have top management support from the very beginning and are viewed as a top priority within the company. Without the buy-in of senior management. for example. 12 . One company retained only one of the 24 Chinese managers who had been sent on an expensive training course just two years before.. 46. the firm’s global leadership competencies have to be clearly identified and agreed upon. Once the Instill board approves the mentors chosen. regardless of the industry or the specific competencies involved. often under diverse and challenging circumstances”. these programs fail. the global leadership development process should begin early in a candidate’s career. few firms reward or even measure leaders on their capacity to develop other leaders -. “Mentors help you see things in a way that you might not have thought about. a B2B technology company for the food-service industry. about two and a-half years back started a innovative mentorship programme as a part of their leadership development plan.Successful global leadership development processes have the following characteristics. The mentors meet their mentee at least once in every quarter and get stock options as remuneration for their commitment.Third. though a significant factor is not why the mentors are signing on. Yet. perhaps increasing retention which is even more challenging in a global labor market. Simply adding an international flavor to a domestic leadership program seldom works. Redwood City. in a study of 3.First.000 executives. Mack tilling. CEO of Instill Corp.Instill Corp’s innovative plan for leadership development At Instill Corp. The participation of senior managers in the first delivery of a firm’s Global Leadership Program is a crucial signal that they take this activity seriously. they sign an agreement of confidentiality and no-conflict. Global leader development requires significant amounts of top management time to identify good candidates. executives have never faced rejection from any of the mentors they approached. The mentors are usually the top executives from other organisations.even though the company gives lip service to the importance of developing global leadership talent. or how well the manager has handled the cultural differences among the various countries in which TRW operates. In addition. They’ve all been there many times before. to plan their development and track their progress. Beginning early ensures the broad-based.

Individual coaching for attaining professional expertise . The flying machine giant knew that it wanted a programme that would meet its future leadership demands.Providing effective adult learning experiences that cater to the intellectual and emotional development of employees. designed a framework that made it easier for future leaders to relate theory with practice. Designing modules .Providing employees with an environment that gives them an insight to real life leadership challenges through exercises that focus on experimental learning. 13 . Simulated learning sets . It therefore.Aligning personal development goals with that of overall organisational development through training and coaching of employees. The World Class Leaders programme at Airbus aims to achieve sustainable change through effective leadership development. Airbus adopted the following methods to achieve the objectives : • Business transfers .Imparting leadership development training through structured modules that cater to transformational leadership and strategy formulation techniques.50. • • • While designing the leadership programme Airbus was clear about its objective.

Best Practices in Improving effectiveness and efficiency of HR Services 14 .

the firm prevailed upon the management to invest heavily in recruiting. with employment branding. 2. as it were. which is world class in employment branding and in rapid internal redeployment of current employees.S. using basic statistical regression model. Apart from other firms. Starbucks Recruiting managers are perplexed at the relationship between the unemployed and the turnover rates. Though the concept is simple it is effective. The U. the CEO announced that talent management. Booz Allen. 5. afforded wide publicity to the instances of its excellent management practices. found that there existed a gap between what the business would need to continue operations and the talent they can attract by continuing the existing model. as the cost of the shortfall was immense. the company conveyed the message that it was an equalopportunity employer. complimenting publicly and promoting those whose performance was excellent. including quantifying the organizations promotion rates. However. 3. Army The U. “the comeback kids”. Army stands above the rest when it comes to recruiting by using video games.BEST RECRUITING PRACTICES 1. MGM Grand’s employment branding What with the CEO’s obsession. and not just HR. and by writing blogs to keep employees informed about the ‘best practices’ in the company. It demonstrates that the fewer the unemployed. the less is the competition in job market and hence higher attrition rates. It is amazing that Deloitte has produced world-class results. and publicizing internal contests for chefs and bar tenders so as to extend the visibility of performance irrespective of job titles. It is the best and largest organization that employs simulations to both recruits and trainees. 15 .Valero’s business-case model Valero’s recruiting function. recruits this type of top talent. Booz Allen’s boomerang recruiting effort Boomerangs are those who quit employment in a firm and later return to it. As many potential recruits are avid gamers. With the help of convergent analysis Jason Warner of Starbucks sought to establish relationship between the two. This concept can be made use of by recruiting organizations in workforce planning. Boomerang recruitment effort is one of the largest quality sources of hires. the company’s Director of Branding. was the firm’s top priority. She exhorted the executives to become brand ambassadors by speaking about the same at conferences and universities. recruiting one-third of all new hires from boomerangs. As a result of the business case. In view of the tremendous positive impact. Powerhouse Google also made similar business case with excellent results. As a result of adopting a comprehensive approach.S. the management had to double its recruiting cost. not once but twice. 4. the US Army lures them by providing exciting job preview or simulation and by incorporating “virtual recruiting station” within the game. Aside from earning awards as ‘best employer’. MGM Grand has acquired world-class status.

7. Cisco Cisco’s former director of staffing Michael McNeal opined that technology no doubt accelerates the recruitment process when there are more candidates available but it can’t remedy flawed recruitment practices. are benefited by the formers’ track record of performing under intense competition. Depending upon their requirement organization should invest in recruitment technology. 8.800 to 30. Google. or whether he has the required technical and leadership qualifications (role fit). distributes pizza (and even cookies) to lure current students during final exams. rewards and 16 . Though the company’s workforce grew from 4. While great vision was required to measure the effectiveness of outsourcing. which is close second to Valero’s efforts in campus recruitment. therefore. This is evident from the large number of new hires who become top performers within 12 to 18 months of hiring them. management practices. starts its process a month ahead of its competitors by transporting potential recruits to corporate headquarters during the academic year and identifying top talent without having to visit campuses.were included in focus groups to evaluate the outcome of an earlier study on impediments faced by employees in the work environment. it had an attrition rate of less than 7% as an amalgam of good technology and best hiring practices resulted in its high growth rate. 9. Dell’s measurement dashboard and superior measure of quality of hire. it took even greater courage to decide against the practice when it was neither cost-effective nor focused on quality. Catholic Healthcare West and Cisco too successfully adopted similar recruiting approaches. What mattered most was quality rather than efficiency. but they also discretely avoid athletes little realizing that athletic competitions include discipline and willingness to work hard to succeed. Great metrics is not about hiring a large number of people cheaply. adopting appropriate best recruitment practices and finally investing in technology. While Dell is known for employing world-class supply chain analytics. the technology they used was designed to hire problem solvers. Very few organizations use a superior quality-of-hire measure. 10. Bank of America has discontinued the practice after realizing that it can adversely affect the organizational performance. Companies such as J P Morgan Athletes Alliance. which hire athletes rather than people with soaring GPA with school name. 12. 11. Companies should. Know what you want! While the retail store. first define the profile of the potential recruit: whether the company needs customer service experts or problem-solvers (company fit). JP Morgan and the Athlete’s Most of the college recruitment programmers not only prefer hiring candidates from top schools with very high grade point averages (GPA).6. recently it has come to light that it adopts great metrics even in recruiting. McNeal underscored understanding hiring objectives. MGM shows the way-MGM Grand Under the “employee involvement” strategy.000. Valero’s college recruiting Valero’s college recruitment programme. but it’s about recruiting individuals who become top performers and stay with the organization. wanted customer-obsessed entrepreneurial leaders. Bank of America While consulting firms all over the world are opting for recruitment outsourcing. Home Depot. whether the potential recruit possesses the right qualities and personality (team fit). which adopts numerous practices to achieve best results. the employees of MGM Grand – the leading hotel/casino in the world .

The information-sharing will result in identifying high potential candidate. Reducing lead time for recruitment With a view to reducing lead time. Though Continental Airlines adopted people-centric policies. High levels of customer loyalty and operational excellence can be achieved through enlightened leadership. Most of the issues identified by the survey results and focus groups were solved during the ‘brainstorming’ process itself. one will be able to attract targeted candidates. 17. Lack of clarity about what a job truly requires may result in quick turnover. the skill set and the type of person you are looking for are vital. Even while interviewing. Clarity While vetting resumes. Though it is in financial crisis.. 18. 13. recognition of employees performance by way of rewards. and career path. entrepreneurial management structure and quality customer service.recognition. consistent communication regarding hiring needs. The employees could express their views on the roadblocks in the company becoming the best employer in Las Vegas. 15. Wipro Infotech has adopted a just-in-time approach. however. Let us consider the employee-centric policies two……. right from the time the recruit will be working with to the recruiter and the candidate. it’s highly centralized and high-fixed-cost business. Start at the top It is vital that the key characteristics of top performers are keenly observed. inculcating a sense of esprit de corps and improving quality of work life. The other issues that need to be taken into account include (i) the goals to be met by the person to be considered successful. The participatory approach proved so effective that MGM Grand decided to make the process an annual event. (ii) the role the key stakeholders will play in his career at the company. empowerment of frontline supervisors. These traits must be discussed with recruiters and incorporated in job description. Look ahead: While hiring for a position. one must ponder over as to what success will look like for the prospective recruit from a year hence. it continued to align itself with employees to get over the problem. as also optimizing resourcing cost of recruitment. a successful organization. be clear and candid about all aspects of the job profile. Business strategies of most of the successful organizations are employee-centric in the form of wellplanned recruitment and retention programmers for sales staff. This will help him understand the long-term requirements of the job and judge whether it’s the right fit or not. By narrating the requirements of the position. 16. and (iii) how the potential recruit will culturally fit with them and their core team. The remaining ones needed the involvement of top management as they required longer-term planning and capital investment. have a clearly defined job description instead of a sketchy one. This is achieved by keeping in touch with qualified potential recruits needed for future projects. 17 . 14. One must communicate about all aspects of the job and what success will look like to the prospective recruit. look for those qualities in potential recruits during interviews. Communication In the recruitment process. Also. Sysco. the other firm which also maintained focus on people but with decentralized set-up and low fixed costs. is.

Evaluate total work experience Experience at a foreign firm does not mean that a candidate has a thorough knowledge of daily business operations. A potential hire should be evaluated by the quality of his total work experience. companies with exciting new fields such as high tech. Use global resources Drawing upon the company’s global resources and participation of employees in training seminars in foreign countries promote advancement opportunities. 25. SPECIFIC STRATEGIES FOR RETENTION INCLUDE THE FOLLOWING: 28. Higher salary and more career opportunities elsewhere are cited as reasons for leaving a company. RECRUITMENT 22. Advertising for jobs. companies should look for sets of skills than nationality of the candidates. 24. companies should seek the views of employees as well. classes can be held in-house. 18 . Assess your brand reputation Chinese college graduates and younger employees prefer Fortune 500 companies with brand reputation. fraud prevention and intellectual property protection is imperative while recruiting for a senior position. Companies with successful retention programmes focus on expanding training opportunities in-house. the impact of word of mouth on workforce is tremendous. However. recent surveys reveal that a better work environment or career prospects are considered by the Chinese employees while switching jobs. tying the same to compensation. Focus on skills While searching for recruits for managerial and technical positions. as you put in your best efforts. Consider third. 26.19. Internet start-ups and private equity firms attract young employees. especially in view of the shrinking of cost differences between the natives and expatriates. In China awarding certificates and holding acknowledgement ceremonies are important recognition tools. Furthermore. the candidate may turn out to be your customer or business partner in future. For employers devoid of these opportunities. 27. Recruiting is marketing Recruiting is a sort of employer branding. Verify employment history Due diligence in background checks. though not all the candidates wish to move.and fourth-tier cities Companies can consider recruiting qualified personnel from third. While devising career development and training programmes. Also. Also. interviewing the candidates and introducing them to your company help build company’s image. Ask candidates about goals While recruiting. Companies without brand recognition adopt attractive retention and training programmes.and fourth-tier cities for positions in first-tier cities. 23. assess the extent to which a candidate’s goals align with those of your company. It is also important to verify the hire’s links to competitors and his job-hopping history.

Offer job rotation One way to “re-recruit” employees is job rotation to keep them interested in their work and expose them to all aspects of company’s operations. it may offer to bear the cost of education in exchange for agreeing to work for the company for a certain number of years following graduation (“Golden Handcuffs”). building company’s brand and reputation by participating in community service programme help in strengthening employee loyalty towards and pride in the organization. serve as important retention tools. Keep HR communication channels open In the context of the tradition of discouraging employees from speaking up in China. 35. 36. 31. In the event of the breach of the agreement by the employee who joins another company. Establish community service programmes In China. Also. Be aware of reluctance to relocate As Chinese employees have close ties to their home towns. 34. Link career and promotion Establish a career development path that is linked to merit-based promotion. Similarly. The worsening traffic conditions each year. locations away from city centre may not find favour with them. they may be unwilling to move to another city within China for long durations. Consider your office space and location Companies in China should be careful while selecting locations for office space. Use non-compete agreements Non-compete agreements (enforceable in China) and confidentiality agreements. which protect a company’s trade secrets and competitive position. 33. whether for expansion of operations or new facilities. Plan social gatherings In China social gatherings. If candidates want to work for a year with the company prior to attending MBA or other degree programme overseas. it is small consolation that it can sue the former employee in China to reimburse the expenses. Invest in working conditions Investments made in providing facilities to employees like keeping air-conditioners in good working order or providing showers help in maintaining employee satisfaction. company trips and other similar events deemed important prove useful in retaining local hires. For these reasons some companies provide even hardship allowance to Chinese employees who are relocated from major cities to smaller ones. 19 . the Chinese residents of first-tier cities like Beijing and Shanghai may be reluctant to move to smaller and remote locations. 30. the length and the difficulty of commuting daily in major cities of the country may not be liked by the employees. while locations of office in prestigious buildings or commercial district attract employees. sports competition outings. 37. 32.29. it is vital to establish channels of communication on HR issues between the employer and employee.

which benefited from this facet of forced ranking. The results of the annual survey made at American Express Financial Advisors raised many eyebrows when the company’s career management initiatives received low scores. The shortfalls. Employee surveys Structured employee surveys. if any. an engineering major. The company appraises employees in relation to listed competencies. Hughes Escorts In the competency-based performance-enhancement model adopted at Hughes Escorts. Its potential is tapped by implementing it at the right time for the right company. capability of managers to motivate employees to achieve common goal. especially when the company was going through significant changes. each with associated knowledge skills and attributes. As the matrix is linked to both business strategy and training needs. The competencies are used to measure shortfalls in the performance and relevant training inputs are provided to enhance productivity. 20 . BEST PRACTICES IN EMPLOYEE PERFORMANCE APPRAISAL 40. KRAs are then used to monitor the employee’s progress. GE. The company emphasizes the process of re-skilling its employees rather than opt for expensive mid-career hires. The approach has a staunch supporter in Jack Welch. which involve collecting employee feedback. provided there is no time gap between data collection and the analysis. and value-based. Employees felt that this important activity was relegated to background. and behavioural gaps and provides customized reinforcement. 41. Consequently. the critics maintain that it works best only when it is tailor-made to the specific requirements of a company. developed a competency matrix listing 73 competencies. functional and behavioural goals set jointly by the employee and his manager at the beginning of each year. managerial. in the performance are sought to be overcome with help of relevant training inputs. winning edge through effective decision-making. However. National Panasonic The company’s performance assessment system is driven by Key Result Areas (KRAs) that define business. knowledgedriven. making the process of re-learning and re-skilling easier. each position is defined in terms of 23 key competencies categorized into four groups: attitude-based. 39. Larsen & Toubro In its quest of measuring its employees performance and assessing their developmental needs. identifies the functional. when efforts were made by the management to focus on career management.38. afford management an overview of the issues faced by the organisation. across various managerial levels. as also to make employees aware of their professional standing. Forced ranking system Forced ranking system of evaluation advocates rewarding the performance and firing the underperformer. Larsen & Toubro. and the ability to execute the decisions. 42. strategic needs dictate the developmental polices. justified its business case and identified four parameters for employee performance and for business success: energy levels of employees. the scores improved in the subsequent surveys. skill-centered. and more focused.

the employees of FedEx responded by evincing exemplary commitment towards work. It believed that in a competitive marketplace. in turn.43. serves the general business. 45. while building core competencies. The company also recognized the need to provide continuous training to achieve high-performance levels. it believed that success depended on its employees. This was in evidence when the employees were prepared to sell their personal belongings and use their own credit cards to buy fuel to deliver the packages to the customers at a time when the company was in financial straits during the first couple of years. to achieve its corporate vision and growth-related goals. With a view to developing and infusing new corporate culture with latest management and leadership concepts and practices. The company developed and implemented FedEx’s ‘People-Service-Profit’ (PSP) philosophy according which if the company took proper care of its employees. employee loyalty tends to be low and dissatisfied employees can find a new job easily. Reynolds and Reynolds Company Reynolds and Reynolds. Aside from improving productivity. the new corporate culture attracts employee loyalty. would benefit the company by generating more profits. Hence. 21 . FedEx devised another programme. its utility was limited. which provided opportunities to non-managerial cadre employees to move up the managerial ladder within the organization. it outsourced its training function. For realizing the benefits of faster recruitment process. the latter would render efficient service to customers. Its expansion created the need to develop employees ability to work in a team environment. They continued working with FedEx even when they did not receive salary on time. This.Best Practices at the FedEx Corporation As the management focused on providing suitable work environment to employees and reposed faith in them. FedEx devised mechanism to redress grievances of employees. ‘Leadership Evaluation and Awareness Process’ (LEAP). as also compliance with relevant circulars. managers and recruiters placing vacancy advertisements should ensure high standards of timeliness. Minimizing the time taken to advertise vacancies has been an important issue for recruitment. As a result of providing training on a continuous basis. Guaranteed Fair Treatment Procedure (GFTP) and Open Door Policy(ODP). the employees were free to speak up about managements policies and the major events taking place in the company. Employee retention was also a significant aspect of the company’s HR policy. significant savings in terms of time as a result of improved employee knowledge and skills have been reported by employees. Furthermore. Human Resource Management . CONTINUOUS TRAINING – PUT TO USE 47. 44. accuracy. if would have to impart training to develop problem-solving approaches of employees. As its SFA programme assisted the company’s management in evaluating the performance of managerial cadre employees only. Aside from implementing communication programmes like SFA programme. 46. a leading information company. automotive and healthcare markets. Employees Communication and Performance Appraisal As two-way communication between management and employees was encouraged at FedEx. Since FedEx was a service organization. Growth Opportunities – FedEx The company believed in promoting people from within the organization to the management cadre. Reducing Lead time for Recruitment. elsewhere.

or the outcome of implementing existing quality programmes.48. The occurrence of the following events may trigger establishment of a performance measurement system within an organization a newfound leadership commitment to performance measurement. 49. maintain the policies. motivates their alignment and commitment. Keep management aware of any changes in the alignment and commitment of the critical asset – its people. 22 . Executive involvement In most of the organizations. • programmes. which may put in jeopardy the organization’s survival in the marketplace. Sense of urgency The impetus to implement a new or enhanced performance measurement and performance management system is generally preceded by a dramatic development. Fulfilling this mission requires the HR function to: • Take an active role in developing the philosophies and strategies that define the working environment. 50. and inspire them to excel. the desire of a high-performance organization to maintain its competitive edge. The HR function' ststed s mission is to contribute to the company' succcess by fostering a world-class working environment that s attracts and retains excellent people. • Be the keeper of the strategy for maintaining employee alignment and commitment. Aligning HR Function to business Apple has made extraordinary efforts to align HR function with its business. performance measurement is continually advocated and promoted by the top executives. It is observed that their commitment was important for a successful performance management systems. and processes that support employee alignment and commitment. a compulsion to link organizational strategy and objectives with actions.

Best Practices Employee Engagement 23 .

a newsletter article. Hemant Sharma. get-togethers@HCL. Head HR. Organisation initiatives . just a plaque or trophy. Says Wayne Balta. Recognize Winners . one of the greatest challenges for global organisations has been engaging a dispersed workforce. Xerox Corp. or a simple thank-you. HCL also has a certification programme for freshers which empowers young engineers To keep up the morale of people and drive them towards excellent performance. Sun Microsystems India. there are other forums like enable@HCL which has regular technical/soft-skill updates. Associate Vice-president. from technical to soft skills to leadership development programmes. HCL has various incentives such as recognition letters. it’s enough to be recognized with a plaque. Vivek Punekar.” 4. There is no prize. corporate environmental affairs: "In the eight years we’ve been running this program and of the several hundred employees who have won this award. there are recreational activities like festivities@HCL. Regular feedback to all people .000 cash prize.Virtual work practices being the order of the day." many companies lose sight of what they’re trying to accomplish -. 24 . there is a greater need to connect and engage with employees to provide them with an organisational ‘identity. and so on. It doesn’t need to be vast sums of cash. Need to connect . sports@HCL. focusses on the significance: “As organisations globalise and become more dependent on technology in a virtual working environment. ESOPS. building assets like own home 5. On the other hand. "It is very important to have specific problems in mind" when educating employees." says Patricia Calkins. Xerox’s manager of environmental market leadership. etc An open and transparent culture to empower its people and develop entrepreneurs. each of which submits innovative programs they created to help the environment.specifically. create new business opportunities. long performance awards.1. Apart from this.Communication forums like the in-house magazine Intouch. this becomes more relevant given the community feeling which organisations provide in our society.People love to win. HCL Infosystems. lists the initiatives made by the organisation. profit sharing schemes. Sometimes. which start right at the selection stage: Choosing the right fit and giving a realistic job preview Strong induction and orientation programme Rigorous training and development.Most organisations have a range of programmes to improve the engagement level of their employees. IBM’s director. Have Clear Goals . expand into new markets. only 1 percent or 2 percent are people with environmental jobs.’s Earth Award program garners participation from scores of employee teams around the world. innovate@HCL (an e-forum to develop entrepreneurship)." 2. and regular surveys and conferences To maintain the quality of work-life and a balance between personal/professional lives. grow market share. 3.In their efforts to educate employees about "the environment. environmental communications manager at 3M. there’s IBM. HRD. says Rick Renner. get closer to the customer. though money definitely talks. how environmental learnings will further the company’s strategic business goals.’ Especially in Indian culture. "The glory is mostly just the recognition of work well done. whose environmental awards carry a $50. Consider your own organization’s current mission: to reduce costs. Its high visibility has helped lure the involvement of those not normally involved with the environment.

communication. In fact. thus keeping employees abreast of the happenings and developments in their organisation. internal communications and earned and paid media. Engaging virtual teams at Sun Microsystems India : The concept of employee engagement starts right from the top with Scott McNealy our CEO and the senior management team. enhances the bonding between employees and commitment to the company. and to attract and retain the Shell workforce in this region. It was important that the program be seen as a comprehensive community and employee engagement initiative and not as yet another disaster response effort. performance management. “We need to create enthusiasm for their roles. the CHC team relied on events. Our business unit Heads and Executive Vicepresidents have a target of holding six ‘townhalls’ with employees every year across the globe. Talent Enhancement Group. The team worked with partners to carry out key messages of the program. their work and the organisation. and also solicits their feedback. a forum on Sun’s intranet where he engages in active dialogue once a month on corporate goals and directions. Shell’s three-pronged mission of efficient business recovery: immediate recovery to employee needs. opinions and pet peeves.The key to employee engagement is creating greater motivation for their work and commitment to their organisation. COO. commitment. work environment. fun and social activities. expertise and capabilities. work and operate. Shell Uses Employee Engagement and Outreach to Rebuild a Community: Shell launched its "Coming Home Campaign" (CHC). Employee engagement today encompasses training. senior management is constantly engaging employees through various forums and interactions to build excitement and passion through various communication channels and events. This. Other senior management members like Jonathan Schwartz. To foster community and employee goodwill. we also reach out to the employees’ families by inviting and involving them in some events. Assistant Vice-president. benefits. The loyalty factor . development. the s company expanded upon existing relationships or developed new private-pact partnerships. Sudhalini Madhusudan. engages with employees on technology directions through his personal blog. a community relations and employment engagement program whose goal was twofold: to provide immediate assistance for both the hurricaneaffected communities and the employees who work in these areas. 9. community recovery to support the community where employees live. At the country level in India. Scott interacts with our employees through WSUN. work/life balance. and investment in the future to retain and attract workforce and support workforce development. 25 . and * Public-Private Partnerships: For those projects that did not touch Shell' core competencies. OfficeTiger. The strategizing focused on two main areas: * Employee Engagement: In those areas in which Shell excels. compensation. 8.6. The internal website of Sun is updated daily. the company engaged its personnel for projects that leveraged their knowledge. asserts Madhusudan. concedes that it is not possible to retain professionals only by paying high salaries and offering attractive benefits. and ensure they are well integrated. leadership.

When you help someone else. as soon as they know it. People know when they see passion based on words. I am passionate about sharing my perspective with others. 16. Build a Culture of Success: Organizational culture consists of values and beliefs that underlie processes and systems. Attainable. actions. Stretch Comfort Zones: Those who never stretch their comfort zone live in a world of mediocrity. only that the rationale behind that strategy is shared with the wider organizational team. If employees don’t have buy in and ownership of initiatives. Begin with SMART Objectives. 15. failure will occur. family and the media to fill the void.Companies should tell employees as much as they know. Lead with Passion: I believe that Employee Engagement Initiatives (EEIs) will create Cultures of Excellence. Today’s competitive market requires a strong focus on accomplishing results. Transparency does not mean all employees have a role in determining business strategy. When organizational values are aligned with individual values. wants and problems. which are Specific. If decisions have not been made or investigations are still underway. Taking on new challenges and demonstrating initiative goes a long way towards achieving goals. They are ok with being average. 95% of the ideas might fail but the ones that work will be huge! 13. 26 . Values are assessed during recruitment. Uncover the important stuff and leave the rest behind. they will be grateful and want to help you. Measurable. 12. Suggestions for more effectively communicating sensitive news to employees: 17. they talk and seek out information about things that concern them. it creates an atmosphere of excitement when there is genuine recognition that the team is driving towards a goal.What are the Top Best Practices of Employee Engagement? 10. It’s all about partnerships. Employees are consumers like the rest of us.One of the biggest mistakes companies make is assuming that if they say nothing or very little about a looming issue. Involve Employees: Give people the opportunity to share their opinion and get out of the way. at least let employees know when further updates will be given. employees will turn to colleagues. Encourage Innovation: To be the best you cannot be the same as the rest. non-verbals and results. Relevant and Time Sensitive. Drive Results: If you settle for anything less than OUTSTANDING. Actively Listen: Spend more time listening than talking. friends. then you’re wasting your time. When people share their perspective with others. Ask questions to determine needs. evaluate ideas and put ideas into action. 11. nurtured during orientation and maximized throughout development. 18. Keep you eyes on the prize and strive for excellence. no one will talk about it. Being innovative requires the discipline to systematically capture ideas. Don’t give power to the grapevine . great things happen. Absent credible information from the company. behaviors. Transparency is the key to credibility . 14.

Make it clear to these audiences what can and cannot be communicated to what external groups. but they need information that helps them speak knowledgably to their teams. including receptionists. Anticipate and respond to employee concerns . 23. Give managers and supervisors the resources they need .19. a manager-only town hall meeting is a viable alternative to an all-employee meeting. I found out about it in the paper. Managers can be provided with "tool kits" to communicate information to staff and time can be set aside afterward for department-level discussions. Use a variety of existing communications channels .Few things damage morale more than when employees learn of major news from external sources. 24.This ensures that information will reach a broad base of employees quickly and accounts for both an unwired or mobile workforce. This strategy also builds in an element of repetition and consistency to the communication. security officers. consider developing information specifically aimed at former workers. and sales force staff. Not only can this lead to disengaged employees. negative media coverage can result when workers who are ambushed by reporters offer comments along the lines of "They don’t tell us anything.While communication with external audiences will likely focus on the financial strength of the company. Retirees are an important audience to keep in mind . By educating these employees and encouraging them to share some level of information. Make customer-contact employees a priority audience . 25. 26. or coordinating with financial relations staff are ways to provide more time to notify internal audiences.Depending on how mature an organization is. a sizeable (and usually highly vocal) group of retirees may exist who will shape community opinion about a negative crisis or issue." Issuing press releases after the stock market closes. 27 . Develop leak scenarios and dark communication tools . some slips may be inevitable. 22.Special attention should be given to internal audiences that are most likely to get inquiries or comments from customers or the general public. Web sites or blogs that can be activated at a moment’s notice are effective tools to respond before inaccurate information spreads. When dealing with large numbers. however. Furthermore. If communications vehicles do not exist to engage retirees alongside active employee audiences. Limit the Wall Street speak . ask yourself. what questions will this raise among employees? Consider publishing a question and answer document along with information from executives.All communications must be understandable to a person of reasonable intelligence.Direct reports play a critical role in the communications landscape. you combat a feeling of helplessness and engender trust from workers and customers. Often. which will aid comprehension. benefits adjustments and day-to-day operations. Before communicating. internal communications must also address more personal and specific issues such as job security.Having a plan to communicate sensitive material to employees will help reduce leaks and rumors. Ensure internal audiences are informed before (or at least at the same time) as external audiences . consider drawing comparisons to the amount of products or services sold that would equal that total. call center employees. 20. "Dark" communication tools such as memos. employees should know who to turn to for reliable information and who is empowered to speak publicly. 21.

the CEO. it is never achieved or finished—only improved. use accountability and incentive systems that more precisely tell employees what is expected of them . Fourth. While flexible working arrangements are a plus for many employees and reduces facility costs for the organisation. loneliness and an increase in personal distractions • Isolation. the COO. isolation. if not impossible. can wear down the sense of connection. a forum on Sun’s intranet. and without the proper care and feeding. communication media and events to build excitement and passion including some that also reach out to the employees’ families. Engagement is not a short-term initiative. An engaged workforce is your only true competitive advantage. He uses this to sustain an active an ongoing dialogue on the corporate goals and direction. Third. execution of most corporate initiatives becomes difficult. At Sun Microsystems. Second. 31. these gains can wither and fall away surprisingly quickly. 30.Engagement is the primary enabler of successful execution of any business strategy.Employee engagement in action: Sun Microsystems Employee engagement becomes that much more critical in such a virtual or global environment.There are four alternate ways to create the indicators of employee engagement. 29. that flexibility comes with some downsides like. implement performance appraisals that better measure expected results and improvement. It is almost impossible to copy and.and then reward when that expectation is met. many of which were formed by our more than three decades of research and experience. especially when paired with the demands of work in an increasingly competitive environment. Through this interactive on-line resource he also solicits their feedback and opinions • Other senior management members like Jonathan Schwartz.27. It might take years of steady progress to build high levels of employee engagement. commitment and excitement about any job. improve the placement and use of talent in specific jobs (including skills and knowledge training to further develop those talents) through the use of competency assessments with greater validity of measurement. interacts with Sun employees through WSUN. build teams based on the right mix of talent. engages with employees on technology directions through his personal blog • Business Unit Heads and Executive Vicepresidents have a target of holding six ‘town halls’ with employees every year across the globe • At the country level. Thus a critical challenge for managers of virtual teams is how to keep remote employees engaged. 28. 28 . Keys for Educating and Engaging Employees: DDI’S BELIEFS ABOUT EMPLOYEE ENGAGEMENT DDI’s approach to building higher levels of engagement is based on a number of fundamental beliefs. Because engagement is simple in concept but difficult in execution. Employee engagement is imperative for an organisation like Sun as they operate in virtual teams across the world: • At Sun the virtual nature is partly due to flexible working practises. without it. the concept of employee engagement starts right from the top: • Scott McNealy. • • • • First. Senior Management is tasked with constantly engaging employees through various forums.

33. setting clear goals. A vice president for customer service at Progress Energy. The recognition of the “whole person” sends a powerful message to employees that the organization understands and appreciates that they have a life outside work. People are more likely to be engaged if their jobs and the culture of the organization match both their abilities and skills.Engagement means reaching the heart. they care because they feel someone is caring for them. While this might be a slight exaggeration. and there’s a strong likelihood we can show you a leader who is coaching for success. only one in four senior leaders—and only one in six frontline leaders—is highly engaged. empowering others. ignoring the motivation and value match. they leave their bosses. not an HR initiative. Instead. And. 35. Measuring engagement and demonstrating its business impact is crucial. 34. He wants to know about their aspirations. and making the winners feel valued. and families. Employee engagement 38. Support from the top also means senior leaders must be highly engaged themselves. Companies should pay close attention to these characteristics in their hiring process. No one impacts the state of engagement more than an employee’s immediate leader. providing open and honest feedback. It’s hard to imagine highly engaged employees without highly engaged leaders. we believe most people do not leave their jobs. not just employees. One of the best ways to have highly engaged employees is to hire them! Certain people have a set of characteristics or attributes that increase their propensity for engagement (for example. but it’s only a small part of winning the battle. A matter of partnership . Most organizations hire or promote only for the ability and skill match. •The •The 29 . Highly engaged employees give that extra effort because inside they care. some employees are more likely to have higher levels of engagement than others. and their motivation and values. insists that his managers really get to know the individuals on their teams as people. Engagement is all about fit. Keep your engagement measures simple and cost effective. though HR should be a key player in driving higher levels of engagement. 36.32. Show us a highly engaged team.Global studies suggest that there are three basic aspects of employee engagement: employees and their own unique psychological make up and experience employers and their ability to create the conditions that promote employee engagement •Interaction between employees at all levels. Believe it or not. leaving little energy or budget for actually improving engagement levels. for example. Engagement is a business imperative. spend your resources and energy moving the needle in the right direction! 37. regardless of the jobs they choose or assignments they receive). interests. Engagement must be driven from the top. Far too many organizations pour hundreds of thousands of dollars into measuring and remeasuring engagement.

40. Each employee needs a solid job description and a clear set of performance expectations. Organizations can create engagement in their workforce by building a learning culture and creating individual development plans for every employee. Growth and development—Most employees want to keep their jobs fresh and interesting by learning new approaches and building new skills. exciting and rewarding – employees should enjoy being at work. stimulating. Even more critical is their understanding that their individual goals are connected directly to the organization’s goals. create opportunities for flexible working. Positive working environment •To raise levels of job satisfaction and improve retention rates. Teamwork/Collaboration— A key ingredient in developing and maintaining high levels of cooperation and teamwork is a work environment built on trust. that leadership is concerned about their welfare and interests apart from what they can do for the organization. and that each employee uniquely matters in the workplace 44. Empowerment—Organizations build empowerment by choosing employees who take personal pleasure in the work they do and by giving employees the ability to make important decisions about their work. A positive working environment and sound management practice are key to engaging staff and raising performance for everyone. This will also allow employees a degree of choice in terms of how they manage their work-life balance •Think carefully about job content– for many people a job that is meaningful is more worthwhile than a high salary •Foster a climate where bullying is unacceptable. challenging. •Management. Work can be fun. organisations need to focus on key areas: leadership and communication •Keep employees informed about what is going on in the business so they have a clear understanding of what it is trying to achieve •Give employees regular feedback on their performance: they need to know what is expected of them and how they can improve •See that managers are committed to the organisation: this is key to engaging employees •Train your line managers to support their people.To engage their employees. Aligning effort with strategy—Engagement begins with employees’ clear understanding of what they should be doing on the job. and address their training needs •Consult and involve employees in key decisions affecting their work. Trust means employees have confidence that others’ actions are consistent with their words. rather than regarding it as a painful necessity. Employees feel empowered when a task appears to have a specific goal or purpose that is of value to the individual. AN ENGAGING WORK ENVIRONMENT 41. Employees working in health care and nonprofit organizations often point to the rewarding qualities of their work and the alignment between their personal beliefs and the goals of the organization in spite of lower pay or stressful work tasks. 43. that the skills they have developed are respected and valued. 30 .39. 42.

organizations also need to provide meaningful development plans and opportunities that include programs such as training. 48. the more relevant it is. First. Support and recognition—Employees who feel they are listened to. and mentoring. Second. special projects and assignments. Selection: Understanding the psyche and need of the employee is important before the employer decides the reward. Emotional impact: Outline the employee accomplishments being recognised in monetary and nonmonetary terms. Third.e. Employee engagement The changes occurring at levels and workgroups i. 49. Timing: Managers should ensure that employees are provided periodic feedbacks about their performance without any delay. a complimentary e-mail sent by the HR team to both the employee involved and the employee’s boss does wonders to improve employee morale and pride. supported.26 This willingness to grow and learn promotes innovation and creativity in the workforce. It is beneficial if the employer/manager uses quantifiable adjectives to praise the employee instead of using generalised praise such as ‘good job’ or ‘hard work’. 45. 47. and recognized for their contributions are likely to be more engaged. Most employees want to use their best skills and will feel engaged when organizations recognize and capitalize on their unique strengths. succession management. organizations need to select employees who have a willingness to learn and can adapt their behaviors to a changing work environment.Promoting employee growth and development requires focused attention in several areas of the organization. They are awareness of expectations of their work resources employees possess for executing work assigned to them efficiently •Autonomy given to employees to work on what they are best at •Recognition / praise for work done •Employees’ relation with superiors •Superiors’ encouragement •Valuing opinions •Mission/purpose of the company •Commitment to doing quality work •Friends at work •Regular appraisals •Opportunities to learn and grow at work •The •Employee’s 31 . For example. Gallup for instance. The golden rule in HR is that ‘A reward is only a reward if the person receiving it considers it such’. leaders need to work with employees to understand strengths and development needs. People like to be recognized for their unique contributions. uses 12 parameters to measure the success rates of a work group. rather than placing emphasis on fixing weaknesses. and provide opportunities to leverage or build skills and knowledge. The following guidelines may be followed to ensure that managers are more committed to the timely identification and recognition of employees: 46. The more aligned the reward is to the behaviour. at the managerial or the executive levels are indicators of the variance.

Invite feedback from staff instead of laying down the law. Treating employees as allies and creating a sense of teamwork and emotional commitment increases morale and productivity. Direct your employee-engagement efforts at managers and nonmanagers alike. And instead of communicating via memos. The plant’s success is due to a corporate culture that supports individual creativity as well as teamwork. good and bad. productivity and profitability. Make sure the culture at your credit union is one you want. he states that management must cultivate employees’ trust on a daily basis because it can vanish instantaneously through one careless act. (Toyota’s largest U. A company’s culture is made evident by its leaders’ behavior. and heard invoke a culture of trust and credibility. average. valued. They aid in identifying the reasons for differences in performance of different workgroups. If managers aren’t engaged. In addition.. and how you recognize employees’ efforts all define corporate culture. 50. internally distributed messages.S.S. Communication styles. company celebrations. according to Pete Gritton. Gritton says management must support employees and be committed to the success of both the individuals and the company itself. Toyota Motor Toyota Motor Manufacturing in Georgetown. customer engagement. plant) consistently has levels of employee engagement about 10% higher than the U. Ky. Leaders who make their employees feel cared for. Employees want to be informed about everything that affects them.These parameters may be linked to employee retention. Corporate culture is an important component of employee engagement. 32 . it’s unlikely that employees will be responsive to any efforts to engage them. vice president of administration. explain policies and programs in person along with the reasons for why they were developed and implemented.

Best Practices Capability Building 33 .

depending on the organization). ages 18-30). so the rep and his or her supervisor can access them for coaching and feedback. by fall 2007. 2. overall learner satisfaction increased by 21 percent. to understanding his or her needs. 3. Thanks to these innovations. So the company conducted a more detailed analysis based on age.1. Generation X. More than 200 hours of on-the-job training and mentoring by a regional consumer lender follow. Based on its own studies. and changed the focus to improving interactions between sales rep and customer. and content search and research were added. Aetna Inc. Graduates record an average $18 million of new loans monthly. while most new employees were Generation Xers and Generation Yers (together representing 55 to 80 percent of Aetna’s workforce. with a return on investment of 605 percent. CCL consists of six classroom training programs and three online courses.: Generational Diversity After evaluating the results of training. Mystery shoppers now call the Reservation Call Center to give reps an opportunity to ask questions and attempt to tailor the Choice product to the customer’s needs. Choice’s Central Reservation System had handled six $10 million days. Choice Hotels: Sales Training Choice Hotels is committed to providing superior sales training to employees. totaling more than 42 hours of training. realized longer-tenured employees reacted differently to some of its new learning approaches than did shorter-tenured employees. plus knowledge of small business lending practices. and Generation Y. Baby Boomers. and those of other organizations. Participants are certified and granted lending authority after having successfully evaluated. mentoring." as the company calls them—to provide customers with lending expertise and loan approval. the company found each generation has unique cultural and learning preferences based on experiences encountered during formative learning periods. Commerce Bancorp. or declined 25 consumer loans. Aetna Inc. The training improvements resulted in a conversion increase from 36 percent to 43. With Generation X and Y learning styles designed into programs. ages 6277. achievement increased by 12 percent. ages 52-61. and leadership skills. The program gives lenders a broader perspective of loan processing. ages 31-42. increased by 9 percent. To provide coaching on critical sales dialog. This conversion brought an incremental $5. totaling more than 20 hours of training. who are taught to go beyond recording the guest’s order. Late Baby Boomers. 34 . identifying five groups (Silent Generation. tested three months after training was completed. The company decided it needed to develop training more closely aligned to learning styles of Generations X and Y. more e-learning incorporating games. approved. ages 43-51. These calls are posted online. In partnership with Signature Worldwide. Choice redeveloped the monitoring process. At Aetna.6 million in revenue through Choice’s reservations centers in 2007.: Certified Consumer Lender (CCL) and Expert Consumer Lender (ECL) Commerce Bank developed its CCL and ECL regimens to prepare store employees—or "team members. As a result. and two $11 million days of gross revenue. and retention levels. Inc. Program graduates are recertified annually. most training designers were revealed to be Baby Boomers (corresponding to 43 percent of Aetna’s workforce). Choice Hotels now provides new sales and legendary customer service techniques. ECL includes five advanced training courses. simulations.6 percent in the last four years.

includes three-and-a-half days in which participants engage with peers to build execution plans. and their managers receive a comprehensive report of their employees’ test and role-play scores. Students then go back into the field. Another two assessments are delivered to understand the employee's level of engagement.000 times. Survey data show employees feel they have a greater understanding of QUALCOMM's technologies as a result of the Online Employee Tradeshow. For the first eight months of 2007.000 per year in travel costs and improving content retention. students must complete a rigorous prequalification program that includes viewing 36 product computer-based trainings (CBTs) and passing the associated tests with a grade of 80 percent or higher." 6. The multi-rater feedback establishes a baseline for performance. Last year's site was visited more than 11. The Online Employee Tradeshow's launch page includes an interactive map that mirrors the same layout as the live event. It includes three stages. The second stage. All new sales reps are registered for a one-week. AlliedBarton Security Services: AlliedBarton Leadership Boot Camp Launched in spring 2007. students are graded on their role plays throughout the week. "On-the-Job Application. they learned. The recently launched 2007 site already has been visited nearly 2. CA-based QUALCOMM. QUALCOMM: Online Employee Tradeshow Seeking to keep global employees connected to San Diego. Employees can navigate through the various technologies and company divisions represented at the tradeshow. The CBT prerequisites replaced another in-person week of training." is a six-week process that includes a 360-degree leadership analysis. and a virtual reality leadership video in which participants practice principles and skills.000 times. and includes information about a particular technology." occurs over a 16-week period. plus completing a mock proposal using the company’s Oracle-based CRM. the Employee Communications team—a group within QUALCOMM's Learning Center—developed an Online Employee Tradeshow that mimics the live technical learning event held at the corporate campus. Participants meet with direct reports.5. AlliedBarton Leadership Boot Camp signaled a shift in how the company views and leads employees. Classes are run every month for 12 to 15 students. At the one-week. personal coaching. The first. "On-Ramp Preparation. if any. in-person training. instructor-led training program at PAETEC’s corporate facility. deliver a plan to engage employees. saving roughly $350. PAETEC: Sales Training PAETEC VP of Training Dan Reinbold created a sales training program that encompasses all four levels of Kirkpatrick’s evaluation model. Before attending. The final phase. Outstanding Initiatives: 7. Residential. Each virtual booth links to a Webpage that has the look and feel of the original live booth. 35 . Students must complete a course evaluation. or visit the "Information Booth" for more tips. and complete the multi-rater survey. 95 percent of attendees rated this course as "Exceeded Expectations. along with interviews and a video demonstration filmed during the live event. and includes on-the-job implementation of execution plans. including a section on what specific new techniques.

geographically dispersed sales force led by sales managers and executives in 50 regions across the country. such as the Grameen Foundation. Ann Bancroft Foundation. empowering them to reinvent the company for the retailer's female customers and employees through their ideas and experiences. WOLF partners with organizations that impact the lives of women and girls at the local. and a lack of national standards for manager selection and training. was more than $2 million in turnover reduction savings. 9. diverse circle of individuals they trust to help them both professionally and personally. This leadership development program has 52 innovative experiments in progress and currently offers more than 100 give-back event opportunities. building valuable leadership skills. which showed a 46 percent improvement in confidence. and associate retention among externally hired managers. • Networking—employees build a strong. WOLF focuses on a simple objective: "If we want to be a great place for women to shop. WOLF is grounded in three pillars: • Commitment—to the business. ADP: SBS Sales Leadership Academy ADP’s Small Business Services Division has a large." As such. and to each other. • Give back—employees give their time and energy to help and support women and girls in need in their local communities. management tools. from line-level to executives. national. Best Buy: Women’s Leadership Forum (WOLF) Best Buy's Women's Leadership Forum (WOLF) engages female and male employees. and Common Hope. One of the largest improvements was on learning outcomes related to clarity of reducing turnover. and international levels. a high "churn rate" of internally promoted managers. sales results. we have to be a great place for women to work. and best practices. Financial impact as of July 31. The sales organization faced uneven distribution of leadership talent across regions. sales manager and executive retention has improved by 26 percent. customers. 36 .Following Boot Camp. account manager turnover was reduced from 32 percent to 21 percent. The solution to these problems—piloted in 2005 and officially launched in July 2007—was the SBS Sales Leadership Academy. Since the academy's creation. An assessment measuring learning outcomes indicated the improvement in confidence on the learning outcomes ranged between 22 percent and 54 percent. and the number of management vacancies has decreased by 90 percent. 2007. which offers • Blended learning programs • Rigorous national selection processes • Six-month pre-management development plans • A national leadership talent database • A dedicated staff • Online tools for on-demand access to self-development resources. 8. inconsistent success in cultural assimilation.

Points are earned through team meetings. the WOLF leadership development initiative led to a: • 40 percent increase in female general managers • 100 percent increase in female sales managers • 100 percent increase in females in home theater • 200 percent increase in female district managers • 5. ice. • Driver course: Trainees drive a 10-mile prescribed travel path with the delivery information acquisition device (DIAD) capturing the activity of the ride. anonymous observation.7 percent reduction of female turnover 10. all teams receive mid-point luncheons. Through June 2007.000 employees were observed across Aeronautics. and team leaders and coaches receive additional leadership training. From October 2006 to June 2007. Researchers found that all workers.8 million grant from the U. total injuries were down 32 percent year-to-date compared to June 2006. Rolled out in late 2006. UPS sought to learn how to train its next generation of drivers.S. which helps identify and correct workplace hazards through a combination of training. more than 10. SAFTE combines two previous programs' best elements. Halfway through the award period. and more than 500 suggestions were submitted. primarily Gen X and Y workers. coach. and selfstudy—with nearly 85 percent hands-on learning. • Slips and falls simulator: Trainees walk on a track surface treated with varying substances to simulate real-world conditions that would increase the likelihood of a slip and fall (i. rain.In fiscal year 2007. not the person. 37 .245 team members and 100 team leaders and coaches have been trained on this program. 11. Department of Labor. At the kickoff meeting. and rewards. reporting close calls. eliminating workplace hazards and injuries and receiving points for suggestions and activities. and oil). Features include: • Lifting and lowering simulator: Cameras monitor body movement as trainees lift and lower packages to see whether they are moving correctly. To date. and at the end. UPS: UPS Integrad Utilizing the knowledge of experts at universities such as Virginia Tech and MIT. simulations. Lockheed Martin Corporation: Safety Award for Team Excellence To support Lockheed Martin's corporate-wide Target Zero safety initiative. point systems. submitting suggestions and corrective action reports. behavior-based observation. the Aeronautics business area brought together employees with union and company leadership to create the SAFTE (Safety Award for Team Excellence) program.e. Volunteers join a SAFTE team (10 to 30 members. the top four teams receive a SAFTE excellence award. and team name) to make observations and identify fixes. and emphasis on proactive actions ensure the focus is on the process. teams are trained on the observation process and the program. and training others on suggested new procedures via team presentations. Documented rules. Aided by a $1. UPS piloted a driver training program called UPS Integrad that is a mix of computer-based training. performing observations. want hands-on training that relates as directly as possible to their current or anticipated job responsibilities. complete with a team leader. 1..

What the organisation did Developed a new vision: to become a best practice learning organisation that creates a highly competent and agile workforce aligning focused development with customer success. After holding additional sessions. A bigger rollout will result if a significant reduction is seen in first-year driver accidents and injuries. and grows more challenging each day. like many IT organisations. the company is tabulating the data. fully aligned to business goals. The UPS Integrad training class was pilot-tested in September with 24 students and five facilitators. 38 . BT Exact The team: BT Exact Learning and Development Number in team: 12 Number of employees the team is responsible for: 7.000 About the organisation BT is one of the world's leading providers of communications. operating in 170 countries. was seen as critical to this. the ASTD gave the 'Excellence in Practice Award 2003' to Infosys. Praising the training practices at Infosys's Global Business Foundation School. Learning Partners initially introduced focused accreditation routes to address immediate skill gaps.• Integration station: This includes various tasks from each learning station. focus groups and self-study groups. The programme requires participants to integrate technology. including the introduction of a Wiki portal. The one-year programme at the school readies freshers for the challenging software career ahead of them. 12. Employee training . The development and implementation of a learning and development strategy. BT Exact was facing a "capability wall".Infosys The American Society for Training and Development has rated Indian IT major Infosys Technologies Ltd as the world's best in employee training and development. Learning Partners encouraged staff to share their knowledge through a number of initiatives outside formal training structures. methodology. and then moved on to more sophisticated learning programmes. fresh entrants are exposed to courses on communication skills. The Global Business Foundation School is a structured programme to enhance technical and behavioural competencies of fresh engineering graduates. trainees must demonstrate package selection and proper on/off vehicle procedures with multiple packages. In addition to technical courses. Introduced the concept of ’Learning Partners’ to grow the skill capability in areas of known demand. • Package handling: In an actual package car in the training facility. BT Exact needed to transform its IT capabilities and develop an organisation responsive to rapid change. interpersonal skills. people and process elements. 13. The challenge Today's demands have caused the role of IT to evolve exponentially and. To address this. management development and quality systems to absorb the company's corporate culture.

Benefits and achievements the last year more than 500 staff have been through up-skill/re-skill programmes. including text. in partnership with Leeds Metropolitan University and West Nottinghamshire College of Further Education. 3G and WLAN. it had provided more than 100 years of service to its customers. games. In 2004. rather than individual aspirations. •Introduced the first structured." 15. which has helped to win new business in the professional services marketplace. It includes impressive teamwork both internally and with providers. coherent management development programme in the history of NCT business.half the time normally expected for validation by the awarding university. It is the leader in non-voice services. •Delivered a programme that achieves an integrated approach to performance and learning. and became part of the programme faculty. media messaging. and received the national UK Bus Operator of the Year award. •The programme was launched in 10 months . music and video. by ensuring the assignments are focused on real-life work issues that participants need to address. •A number of centres of excellence based around common skill sets have been established. In 2006. The judge says: "One of the very few entries that focused on the bigger picture. marketing and finance modules. •The 39 . Learning Partners allocated to different areas have focused on the needs of professional communities and used a range of on-the-job learning methods. O2 The team: Sales Academy Number in team: 5 Number of employees the team is responsible for: 600 About the organisation O2 is a leading provider of mobile services to consumers and businesses in the UK. The judge says: "This accredited management development programme has particular strengths in its contextualisation into the everyday work of the organisation. •Three NCT directors worked directly with a college faculty member to help develop the HR. with immediate benefits. •During Benefits and achievements first foundation degree in business and management to be validated by Leeds Metropolitan University and to be offered by West Nottinghamshire College of Further Education. •Learning initiatives are tied to business demand." 14. Nottingham City Transport The team: Nottingham City Transport Number in team: 6 Number of employees the team is responsible for: 14 About the organisation Nottingham City Transport (NCT) is the largest provider of public transport in the Greater Nottingham area. NCT carried almost 50 million passengers. The challenge To design and deliver a foundation degree in business management that focused on work-based learning. and encourage effective cross-functional communications and working relationships by establishing mixed-function groups. What the organisation did •Developed a foundation degree in business and management. as well as data connections via GPRS.

What the organisation did a new set of behaviours . •Over the past 18 months. Non-managerial staff attended 'The Heart of Maybourne' workshop. •Fully integrated the programme into critical HR processes.and a four-stage development path. Claridge's and The Connaught." 16. unique customer service. which formed the basis of a £3m investment. •800 employees completed the training programme in just four months. which concentrates on 'cherishing' the personality of every customer by providing intuitive. •Created an opportunity for employees to meet their colleagues from other hotels. •Helped the group to achieve recognition as one of the 100 Best Workplaces in Europe and one of the top 50 companies to work for by the Great Place to Work Institute. •Identified •Set •HR •More •Introduced 40 . The judge says: "Sales training is perhaps the easiest area to show a good return on investment. A four-stage development path is integrated with performance management. which focuses on the key organisational objective to drive business success. •O2 sales staff. A new approach was required. a wide range of learning methodologies are harnessed. Benefits and achievements the standard of service required across the Maybourne Hotel Group.’The O2 Way’ . to network. Maybourned Hotel Group The team: Maybourne Hotel Group Number in team: 10 Number of employees the team is responsible for: 815 About the organisation Maybourne Hotel Group is a luxury hotel group that owns and manages The Berkeley.5% in profit for the group compared with the same quarter in 2006. creating an 02 sales academy for more than 450 sales staff. Benefits and achievements than £60m of revenue can be directly tracked by O2 to the adoption and use of The O2 Way. •All managers attended a workshop called 'Leading the Heart of Maybourne' to give them the tools and techniques to apply what they learned at the training programme. The challenge To implement a customer service training programme designed to communicate and support the development of a new service culture called 'Intuitively Maybourne'.The challenge Recognising that 02 operates in a rapidly maturing market and selling ever more complex solutions. •The training programme consisted of different activities and exercises to encourage employees from all parts and levels of the company to take responsibility for what they did every day. on a quarterly basis. and share best practice. consistently rank the sales academy initiative as one of the top differentiators they have to maximise their success in the marketplace. the challenges employees are facing every day and helped them to think of solutions. including simulations and online coaching. •Saw an increase of 1. but the thoroughness and effectiveness of this sales academy is impressive. and there are clear metrics for skills measurement at each stage. What the organisation did and an external company called The People Skills Business designed a programme called 'The Maybourne Cycle of Service'. the board decided that the capability of the sales force would need to be a key commercial differentiator. corporate customer satisfaction relating to O2 sales and account management has risen from an indexed score of 67 to 73.

a one-day workshop to train employees throughout Somerfield’s head office and 900 stores. 19.The judge says: "This customer service training programme has strengths in every category. Such strategies can include peer coaching. Somerfield The team: People Development Team Number in team: 8 Number of employees the team is responsible for: 43. What the organisation did •Designed ’Passion for Produce’ . emphasising their leadership role. with lots of innovation in visualising the messages. Benefits and achievements support from relevant board directors. in an integrated and innovative model of learning. •Influenced regional directors and allowed time in their busy diaries to deliver Passion for Produce.700 staff attended workshops across the UK between October 2006 and February 2007. The challenge Somerfield’s desire to be the UK’s leading local fresh food and convenience retailer was undermined by consumer research in September 2005." 17. responsible for 15-20 stores. Redefine learning events: Such events must be led by people with the right expertise and incorporate activities reflected in the workplace. •Like-for-like produce sales increased by 5% from March 2006 to March 2007. The People Development Team’s training needs analysis highlighted a gap among store teams in product knowledge and the confidence to talk to customers. It is a concise. and identified produce as a priority. The judge says: "A very well-presented entry of a one-day training course. tremendous support by the leadership. along with presentation skills and understanding of acceptable standards. Employees need learning experiences that give them opportunities to share knowledge and connect their learning to the context of their work. •More than 2. the organization has to: 18. which meant the Passion for Produce workshop had a strong impact and learning was embedded in-store. and effective use of internal trainers. Most impressive of all was the real evidence of success in customer impact. mentoring and networking. •Used regional managers. The cost per delegate was £21 and the increase in sales showed a significant return on investment. Reinvent the way learning takes place: It is necessary to develop innovative and flexible ways to create and manage the learning process. which was creatively designed. •Generated 41 .000 About the organisation Somerfield is a high-street supermarket with stores across the UK. and enabled line managers to deliver it on-site. •The workshop has set new standards and visibility for training and further engaged regional managers in supporting their people’s development." Typically. and fresh food support employees to deliver the training. relevant entry statement. Employees need an operational definition of what expert knowledge looks like and how it works.

A top performer understands the ‘right employee fit’ best. Re-establish the value of on-site learning: This approach embeds learning in the workplace and can be led by respected peers. talented people. knowledge sharing sessions & continuous educational program in reputed institutions based on the type of business the organization is engaged. •Ownership: Employees should be encouraged to identify their own needs to create individual learning plans. Best practice 2-Talent management mindset Hiring talent must be a core competency and a part of the strategic business objectives. The most effective learning and development programs have following features incorporated: •Strategy driven: All training and development programs should align with overall organization strategic goals and yield business results. during and after scheduled learning events also. It must show a return on investment either on short term or long term. as well as an exploration into the near future. Class room training. Management vigilance on the return on investment in learning must be actively supported. Effective Learning and Development Programs – Best Practices 23. ‘We value people. •ROI: The training program should be measured as every other business activity. his boss and the organization. 42 . CBTs. This makes every employee accountable for the training he/she has identified and the responsibility falls on that individual. 22.’ Such a philosophy would help instil the idea that every employee is a recruiter and motivate him to contribute to the process. Remember that it is important to promote and visibly support learning in the workplace: There is little meaningful change in an organisation if learning is not tied directly to the needs of the business. It also allows for input in the learning process so learning is planned and owned by the employees themselves. Refine the learning process: The learning experience must encompass a range of appropriate best practices that extend over a significant period of time. and to seek learning opportunities. the companies should ensure that learning occurs before. Such an approach to developing employee knowledge can be captured in the concept of “Spinnovation”. or speed plus innovation. 21. we value your input.20. Employees need sequences of learning that build one on the other and allow support for on going development over time. we also feel that you can help the organisation make further progress in hiring qualified. •Methodologies: Learning & Development methodology can be identified from amongst eLearning. 24. Formalising the process of referrals and offering incentives can further develop the recruiter mindset. Technology can then be brought in to define and support the processes required to successfully recruit and provide easy-to-adopt technological solutions. the organisation’s recruiting philosophy should read. Hence. •Continuous learning process: The process of learning never ceases.

The term embedded means that learning: • • • • • Is a regular part of the daily work. Organizational Learning The term organizational learning refers to continuous improvement of existing approaches and processes and adaptation to change. The Field e-Learning Connection is a single-online point of entry for all employees spread across the globe. develop and measure their skills and knowledge. Live events can be archived as video-on-demand (VoD) modules for employees who couldn’t watch the live broadcast.Know what you want! Home Depot. 28. research and development (R&D). 26. The new recruit should fall into one of the three levels. best practice sharing and benchmarking. entrepreneurial leaders. The edited versions of these VoDs are also available on demand to any employee. work unit. particularly poor performers Recruit persons with the talent and aptitude for selling Ensure that all the best performing sales personnel become sales managers thus providing scope for vertical growth 27. Is practiced at personal. They aimed to plan. Best practice 3. Organisations should clearly define their ‘recruit’ profile. The site provides links to thousands of web-based learning aids and job specific learning paths. leading to new goals and/or approaches. access to online assessment tools and certification exams along with employees’ history. track. The FeLC offers a wide range of modes of delivering training. E-learning a solution! Cisco launched the Field e-Learning Connection (FeLC) in 1999 for its sales personnel.Sales Training Practices: HR department of an organisation that intends to increase its sales turnover should: • • • • Provide its sales force a better variable compensation and incentives Focus more on training the sales personnel. The Microsoft technology they used was designed to find problem solvers. good-quality streaming media communication. •The company fit: What kind of employees does the organisation need? Customer service experts or problem solvers? •The team fit: Does the new employee possess the right qualities and personality? •The role fit: Does he have the required technical and leadership qualifications? •Having answered these questions the organisation can bring recruiting technology into the picture. With IP/TV. a retail store wanted customer-obsessed. Cisco can conduct a single update training session that can reach 3000 employees simultaneously and globally by relaying it on the company’s intranet. This enables Cisco to deliver a single. One is the Cisco IP/TV Solution that helps in large-scale. Learning needs have to be embedded in the way the organization works. 43 . and organizational levels Results in solving problems at source Is focused on sharing knowledge throughout the organization Is driven by opportunities to affect significant c hange and do better Sources for learning include employee ideas. clear and consistent expert message at a very low cost. customer input.25.

“Using the sales pitch as an introduction to their presentation is the surest way to failure!” In a typical sales process. especially when they belong to the executive cadre. Questions could range from a simple. Asking such individual strategic questions related to the organisation’s goals and objectives will help identify the roadblocks that prevent the organisation from reaching them. Then create the tools and processes that a salesperson should use to successfully implement them. Technical as this sounds right now. Now. Questions will have to vary based on audience type. Once this is done. he gets to control the sales.comprehending the actual requirements. “What results are you expecting?” The answers to such questions will help sales professionals tailor their solutions. This means that it makes sense to identify the ‘cause’ for their concern or issue. the minute the customer gets to ask the questions. Then. you need to show them how. Also.29. Despite numerous benefits. Only then will they be able determine and suggest an appropriate solution. Training to ask the “what” question: Most people get into a buying mode more for curative than preventive reasons. E learning was found to be the best way to train their sales force. it is a matter of commonsense and practice! 31.Training to uncover true requirements: It is important for sales professionals to realise the true objective of asking questions. 33. it is important for the sales professionals to keep the audience in mind. as mentioned earlier. that won’t accomplish much by itself. 44 . a demonstration or presentation is followed by a Q and A session where the audience is given the green signal to ask questions. Training to use the sales pitch later: As one sales expert cautions. 32. provide them instruction in how to do them along with opportunities to practice.Training to ask strategic questions: The audience plays a major role in the type of questions asked. These individuals represent the organisation and are responsible for taking decisions. Questions that do not help reveal the customer’s concern/ requirements are unnecessary and detrimental to sales process in the long run. An effective sales training programme should cover the following areas: 30. the presentation can then be tweaked to address best customer requirements. This way the chances of offering a tailor-made solution and closing the deal in turn are high. classroom-training programes are not effective in training sales forces MNCs like Cisco Systems. In that there would be an opportunity to sell a solution. If you want them to do what you want them to. Train and equip the sales force to do what you want them to do. Read through the list of sales practices that follow. pick and choose those that you want to pursue. While it’s a necessary start to create specific expectations for margin growth. The “what” questions are the best when it comes to exposing ‘causes’. “What caused the problem?” to a more strategic “What specific challenges are preventing you from reaching your objectives?” to something as direct as. It is important to train sales professionals to begin their presentations by asking questions to identify requirements. which launch new products and technologies every six months and hence cannot afford to have classroom sales training.

Make the environment conducive for success. Some of the sales managers can be newly promoted star-performers. it might require sophisticated equipment for video-conferencing for two-way activities across different locations through wide area network computing. they may not necessarily possess the managerial qualities required to manage and develop a team of sales personnel. If a trainer lacks a requisite quality pair her up with someone who complements her traits. they manage to give the trainers an overall picture of the course content and activity flow. The most critical training needs that call for immediate actions must be addressed first. it is pointless to buy them. 37. Don’t buy what you don’t need. For this. 36.Providing training to the chosen trainers. Though it might seem very elementary to have a good training-set-up. Though they do not offer practice sessions for each topic or exercise. performance gap analysis and root cause analysis should be conducted. Group discussions and activities get too time-consuming in large groups. This includes supplying sales managers with tools necessary for reiterate the daily application of the critical concepts taught in the training curriculum. however. Sometimes. Effectiveness is guaranteed only when a training programme is based on realistic analysis of performance requirements. 39. a needs assessment comprising job analysis. Include suitable training for sales managers. At the end of each presentation feedback about the participants is solicited and the logic behind pace. tip-sheets for conducting sales meetings. Ensure that the training site matches the programme. sequence and strategy of the course is explained. it is important to ensure that the site is suitable to the training. Asking questions such as ‘to what extent will the technology help the training?’ ‘Are the costs justified?’ ‘Is it possible to convince the top management about the viability’. It could be designed for instructor-led session or have break-out rooms for group activities. Here are suggestions from the best practices in sales training: 40. Have a coaching programme for managers that trains them on the skills taught in the sales training programme. All this equipment needs to be in place before training begins. will greatly help in making the decision on whether to opt for new technology or not. limiting the class-size to 12-18 people ensures better interaction and hence improves the chance of training success. These train-the-trainer sessions serve as dress rehearsals or practise session for the sales training facilitators by providing experience in conducting workshop and meetings. Hi-tech gadgets and equipment might give training the desired sophisticated and attractive look. Provide coaching and mentoring tools to ensure post-training success. 35.A combination of different modes of training is ideal for training sales forces: 34. Avoid over-promising. it sometimes shifts the focus from training to mastering the technology. Prioritise. for instance. To help them in their job. it is important to provide managerial training to them to ensure they extract the best from sales personnel. which defeats the purpose of training while increasing training budgets. 45 . 38. if you don’t need them in your training. Also. This can be imparted by providing mentoring tools such as providing Worksheets for making joint calls with sales representatives.

46. 45. resulting in no new learning. The progammes must include a systematic follow-up plan for successful implementation of the training. 44. Customisation might be cumbersome. A project manager should be assigned to a training programme. the environment in which they will be trained and the performance expectations from them after training. product knowledge. 42. The modifications might be as simple as localising or changing emphasis. Joanne Irish. sales support and sales management. There are other ways to carry out needs assessment analysis too. In more complex sales cycles. Training managers and sales trainers must have a thorough knowledge of the company’s objectives and strategies to ensure that the training programme is in sync with the organisational objectives. These motivational talks must be delivered along with some technical sales training to ensure the training returns to their jobs with some new knowledge to help them in their work. Trainees need continuous support to effectively implement their learning from the training on the job. and c) The entire sales process.The analysis should also deal with issues such as who needs to be trained. 47. Using off-theshelf training programmes should be avoided as far as possible. Outside vendors usually have their own project managers. 41. b) Sales skills such as handling objections and building long-term relationships with customers. Integrate training with the on-the-job selling. Understand that motivation and real training experience are different from each other. Ensure post-training follow-up. Match training delivery with content. 48. Clearly demonstrate how the training can be applied in their sales calls. Checklists of points to cover. the quality is as expected and within the allotted budget. 43. the training module must include organisational knowledge. . Plan training details in advance. their existing level of knowledge and skills. For sales training to have a good impact it must contribute directly to the bottom line of the company. and well-designed product data-sheets are effective tools that ensure success of the training. the New Technologies Training Manager at BMW. Very often sales personnel are subjected to motivational and pep talk in the name of sales training. meets sales personnel to discuss relevant issues like their sales experience in the past and their current sales methodology. a) Reaction to sales training b) Mastery of knowledge and skills c) Transfer of training d) Evaluate ROI on training 46 . though they might at times involve employing a professional instructional designer to create sales training courseware from scratch. Evaluate training effectiveness at multiple levels. The mode of delivery such as CBT. industry awareness. The training content must necessarily include three areas: a) Basic communication skills such as listening and communicating. For instance. classroom training should be selected based on the content. selling strategy skills. Reinforce to the trainees the link between what is being taught and how it is related to their everyday work. Successful training programmes ensure that individual training evaluation is conducted at four levels. Develop training solutions internally specific to organisational requirements. The managers responsibility will be to ensure training deadlines are met. It is advisable to have the training courseware developed by an instructional designer or a subject matter expert. Link sales training with organisational goals.

" instead of discounting. Now. "You’re a point or two too high. if there is absolutely no difference between buying it from you and buying it from the other guy. share with the customer what he/she gets in exchange for that point or two. REBME? That stands for "Reasons to Buy from Me. 47 . 50. turn them into statements of benefit for the customer and memorize the presentation. Then when the customer says. Your job is to identify all the things that are different when the customer buys it from you. Get management support. The trainers and the sales department must make sure that the management knows exactly what the training is about. However. which will ensure that the staff gets adequate support from the management in terms of resources and finance. If there is some valid economic impact. than the customer should go with the lowest price. than you’ve just added a couple points to your margin by giving the customer a reason to buy it from you. Create a REBME presentation. The management must be actively involved in the entire sales training process. Put those things into a list.49. I very rarely have seen there to be absolutely no difference." So many distributor salespeople look on every sales call as purely a discussion of product and price that they fail to consider the totality of the factors that influence the customer to buy.

Best Practices Employee Retention 48 .

Johnson & Johnson •Strong values of trust. transparent and accessible leaders •Competitive rewards •Innovative HR programs and practices 5.Tata Steel •Organization •Job •Freedom philosophy and culture stability to work and innovate 49 .Procter and Gamble India in career •Flexible and transparent organizational culture •Global opportunities through a variety of exposure and diverse experiences •Performance Recognition 2.American Express (India) •Strong •Early responsibilities global brand •Value-based environment •Pioneer in many people practices 3.oriented culture •Competitive 4. and respect within the organization •Freedom to operate at work •Early responsibility in career •Training and learning opportunities •Visible.Employers Key Drives To Attract And Retain Talent 1. caring fairness. learn and implement •Strong social security and employee welfare performance. where performance could lead to very quick progression •Challenging work context •Competitive rewards •Exhaustive induction and orientation program 6.Glaxo Smith Kline Consumer Healthcare •Performance-driven •Its Rewards belief in “Growing our own timber” •Comprehensive development and learning programs •Flat organization.NTPC •Learning and growth opportunities rewards •Opportunity to grow.

TCS •The •Strong group brand equity corporate governance and citizenship •Commitment to learning and development •Best in people practices •Challenging assignments •Opportunity to work with fortune 500 clients Best Practices in Retention and Knowledge Transfer . Innotech Precision. and there is evidence to suggest that benefits are at the top of the list of reasons why employees choose to stay with their employer or to join the company in the first place.Adequate and Flexible Benefits can demonstrate to employees that a company is supportive and fair. there is general agreement that compensation levels do not single-handedly guarantee employee retention. Huronia Precision Plastics Inc. Innotech Precision. Westbridge PET Containers). Canadian General Tower. and caring organization •Management according to the managing with respect to guiding principles •Training ad development programs •Structured career planning process •Global career opportunities 8. Flexibility in benefits packages can enhance retention. Common best practices include the use of industry surveys to benchmark and position wage and salary structures to be fair and competitive.Competitive and Fair Compensation is a fundamental starting point in most strategies to attract and retain employees. IPEX). 12.Indian Oil Corporation image ethics •Learning and growth opportunities •Challenging work assignments •Growing organization •Work •Company brand 10. Canadian General Tower.7.Wipro •Company’s brand as an employer •Early opportunities for growth •High degree of autonomy •Value compatibility •Innovative people program 9. However. as it creates responsiveness to the specific needs and circumstances of individual employees. (examples: Baytech. 50 . IPEX. Many companies are responding to the increasingly diverse needs of their employees by introducing a greater element of choice in the range of benefits from which their workers can choose.Colgate Palmolive India Company brand •Open . ( examples: Baytech.findings from a study report by CPSC and Canadian Labour and Business Centre (CLBC) 11. transparent.

etc. Huronia Precision Plastics Inc. (examples: Baytech. IPEX. and greater competencies and confidence. training encourages workers to make longer term commitments to their workplace: it permits them to see a future with the company. company-sponsored sports teams and social events. financial and nonfinancial. Our own case-based study revealed that employees in some workplaces. Canadian General Tower. the quality of interpersonal relations may contribute significantly to retention in its own right. are rewarded or recognized. Canadian General Tower. groups of employees or to an entire staff.c. Innotech Precision.Training. Recognition and rewards can contribute to a workplace culture of respect and appreciation for employees and work well done. 15.13. IPEX. and motivations of the individuals that exist within it. They include such things as employee of the month awards. Westbridge PET Containers). skill-based pay and various types of bonus plans. do more than merely work together: they often share similar interests and have a very strong interpersonal rapport.Recruitment & Orientation practices can be of crucial importance to keeping workers over the longer term. Innotech Precision. and so on. Canadian General Tower. and any possible problems that may arise. Indeed. Huronia Precision Plastics Inc. IPEX. Pay systems may also affect knowledge sharing and transfer if sharing. suggestions. (examples: Baytech. Innotech Precision.c. Good initial orientation to the newly-hired employee can not only help to effectively integrate that person into the workplace but can also help to make the new person feel welcome and provide him or her information about how to cope with the demands of the workplace. Interquisa Canada s. All of the companies we interviewed were very active in the area of skills training and professional development. Employee retention is enhanced by ensuring a good “fit” between a company’s workplace culture—its way of doing business and the qualities that it espouses as valuable—and the interests. IPEX) 51 . 16. Westbridge PET Containers). Training constitutes a visible investment that the company makes in the worker. particularly the smaller ones. and these in turn help to bind them together as a cohesive whole. teamwork. 14. Innovative compensation systems include gain sharing. Canadian General Tower. ( examples: Baytech. and thereby reinforce employee commitment to the firm. Combined with effective communication about how an employee’s efforts at developing skills will lead him or her to more challenging and meaningful positions within the company.e. clothing.Recognition and Rewards include a diverse range of formal and informal. Interquisa Canada s. character. (examples: Baytech. prizes. providing him or her with new skills. Westbridge PET Containers). and Career Planning are effective ways to enhance employee retention.e. Innotech Precision. Recruitment practices that emphasize not only formal qualifications (job-relevant technical ability) but also more general types of qualifications and dispositions on the part of the recruit can be part of an effective retention strategy. incentives given to individual employees. Many have put in place effective internal promotion programs that allow even their unskilled and semi-skilled workforce to move towards positions of greater responsibility and remuneration within the company. Professional Development.Innovative Compensation Systems and practices can have a positive impact on employee retention by motivating membership-oriented behaviour (commitment). Training often leads to work that is more intrinsically rewarding.

IPEX). phased in retirement.17. two-way communications are vital to good employee retention. (examples: Baytech. many of these practices would be impossible to implement in any effective way. Canadian General Tower. and maintain open-door communication policies. Innotech Precision. responsive. Policies that prove to be effective in helping employees to manage work-life balance in a shift work setting include (i) limiting split shifts. health practices (supporting healthy lifestyles. and flexible working hours allow people to strike a more meaningful and potentially less stressful balance between obligations at the workplace and obligations at home. Huronia Precision Plastics Inc. 19.Healthy Workplace or Wellness Initiatives take on a variety of forms. (iii) permitting employees to trade shifts amongst themselves and. but contribute to business performance objectives including employee retention. and should be considered as the basic building blocks of any effective retention practice. knowledge transfer practices seek to retain skills. 22. making work more fulfilling. challenging. childcare subsidies. Canadian General Tower. Firms that operate on the basis of shift work may have employees who find it particularly difficult to balance family and work obligations. Healthy workplace initiatives not only improve the health and well-being of individual employees.c. safety. Innotech Precision. and cross-training and job rotation.Employee Participation & Communication. Flexibility and responsiveness on the part of employers can go a long way in helping employees to resolve such conflicts and be more productive at work. including those directed at the physical work environment (cleanliness. interesting. if not all. Canadian General Tower.’ and job rotation can not only improve retention but have also been shown to improve a number of other important indicators such as productivity. ergonomics. (ii) providing advanced notice of shift changes. phased-in retirements. Mentoring and coaching. IPEX). etc.). ( examples: Baytech. through both formal and informal exercises in information sharing and the building of collective knowledge. counseling and referral. ‘self-scheduling.Performance Appraisal practices that provide good feedback to employees and give them a view of their longer-WHUP SURJUHVV ZLWKLQ WKH FRPSDQ\ SDUWLFXODUO\ LQ WHUPV RI WUDLQLQJ DQG FDUHHU GHYHORSPHQW RSSRUWXQLWLHV DUH LPSRUWDQW ZD\V RI HQKDQFLQJ HPSOR\HH FRPPLWPHQW (examples: Baytech. through a variety of vehicles including employee surveys. Practices such as dependent care leave. Westbridge PET Containers). Innotech Precision. and stimulating. Canadian General Tower. IPEX). etc. coaching and mentoring.Job Design & Work Teams can enhance the intrinsic rewards of the job. The case studies we conducted revealed considerable efforts to communicate with employees. eldercare programs. Innotech Precision. 20. and social environment and personal resources (organizational culture. regularly scheduled committee meetings. Knowledge transfer also includes the use of 52 . diet. Open. Innotech Precision. IPEX). While employee retention practices seek to retain workers. consulting with employees about their work-life balance needs while planning shifts. of the retention strategies and practices fundamentally depend on a sound approach to communicating with employees. employee assistance programs. 21. etc. Huronia Precision Plastics Inc. Most. Practices such as autonomous or semi-autonomous work teams. are types of knowledge transfer that overlap with training.Work-Life Balance programs recognize that employees have important family and extraprofessional obligations that compete with their workplace commitments. Several companies keep their employees regularly up to date on the company’s financial performance. (examples: Baytech.Knowledge Transfer – cross-training. a sense of control over one’s work. fitness. most importantly. formal postings and newsletters. IPEX. 18. Canadian General Tower. and personal discussions.). accidents and injuries and product quality. ( examples: Baytech.e. Interquisa Canada s.). Without communications.

A first-ever AIMA study reveals the best practices in keeping your human capital.MOVING FROM FAMILY TO PROFESSIONAL MANAGEMENT. Employees like to know how. 29. While organisations that pay best-in-industry salaries may find themselves unable to use that fact to motivate their employees. Interquisa Canada s. companies ignore their internal customers.technology-based tools—databases. Often. those that do not could find their best employees leaving.DESIGNING A COMPETITIVE COMPENSATION PACKAGE. A participative decision-making process is good. By adopting systems that introduce an element of objectivity into its internal operations. Companies now adopt more than one technique to create an internal environment that will retain their employees. and to permanently document and keep knowledge that is vital to business performance. 26. ad-hoc and driven more by personal prejudice rather than professional consideration. intranets. Money isn't a motivator. better.MAKING PERFORMANCE APPRAISALS OBJECTIVE. 30. professional managers leave because they cannot see themselves holding key positions. but do not hold him accountable! 28. the higher the organisation's retention-level. and decisions. and by whom their performance is going to be measured. The best companies achieve a balance between the two. An appraisal process that lists objective and measurable criteria for performance appraisal removes the uncertainty in the minds of employees that their superiors can rate their performance any which way they please. a company can lower its attrition-rate. As per the survey. Canadian General Tower. but it is an effective de-motivator. total empowerment. (examples: Baytech. People like to work in organisations where their opinions count. Obsessed with catering to the demands of their external customers. Employees leave companies where intra-organisational interactions are unstructured.MEASURING EMPLOYEE SATISFACTION. By inducting professionals into senior management positions. a company can create a better workplace. the situation is exacerbated by the fact that they vest another employee with the same authority.ENSURING A MATCH BETWEEN AUTHORITY AND ACCOUNTABILITY. groupware—aimed to support knowledge sharing among individuals.e. Which forces employees to leave. and enable the company to take corrective action. 27. Westbridge PET Containers). the most popular retention-oriented initiatives include: 23. Many companies fall into the trap of expecting their employees to subsume their individual objectives before the organisational one. In most family-managed organisations. Huronia Precision Plastics Inc. Most companies fall into the trap of holding an employee accountable for a specific activity without empowering her with the authority to perform it well.INCREASING THE ORGANISATION’S LEVEL OF PROFESSIONALISM. or functioning with the level of independence that their designations merit.ACHIEVING A MATCH BETWEEN INDIVIDUAL AND ORGANISATIONAL GOALS. IPEX.c. Innotech Precision. 24.INVOLVING EMPLOYEES IN THE DECISION-MAKING PROCESS. Periodic employee satisfaction surveys can highlight the potential flash-points. 53 . The higher an employee's involvement in decision-making. when. 25.

designing competitive compensation-packages. their higher-than-average retention levels can be attributed to the way in which they go about these initiatives rather than the choice of initiatives themselves. Of course. the exact nature of the initiatives to be used is a function of the industry in which the company operates. In addition. 54 . increasing the organisation’s level of professionalism. instituting an objective performance appraisal system. and the growing demand for trained infotech professionals is. So. However. and culture-building and empowerment at the top level. companies may feel the need to hire employees with new skills. and participative decision-making. and is willing to invest in upgrading their skills.THE Retention Action Plan . employee satisfaction. The best companies focus on professionalisation. infotech companies focus their efforts on 3 more techniques: increasing employee satisfaction. Most manufacturing. and the level of management at which the initiative is targeted. However. High potential attrition-rates. 34. and involving employees in decision-making. marketing. and services companies are not able to achieve the desired level of performance along any of the retention techniques they adopted.HELPING EMPLOYEES ACQUIRE NEW SKILLS. 33. They prefer a transparent organisation that is willing to share every aspect of its functioning with its employees. Employees are not just warm bodies. A company that constantly fills vacancies by hiring from outside is certain to face retention problems. the ideal practices remain constant across manufacturing.In these competitive times. 37. promoting from within and training at the middle level. ESOPs are a sign that the organisation recognises the role of the individual in its performance. the best companies set themselves stretch targets on each dimension.FOCUSING ON WELFARE MEASURES. Organisations that recognise this.31. appraisal. and is willing to share the benefits with her. or retrain their existing employees. the specific measures to improve an organisation’s retention record range from career counselling workshops to team-building exercises. marketing. 32. and help employees achieve a better balance between life and work are likely to face fewer problems than those that do not. where information is rationed out on a need-to-know basis. Companies that choose to do the latter will find it easier to retain their people since the training signals that the organisation values their contribution. but infotech and telecom companies exceed the desired level. a motivation enough for companies operating in this sector to focus on retention management. and then. they are individuals with families and lives of their own outside the workplace. and services companies: career-counselling and jobenrichment exercises at the junior level. 38. Employees who realise that they are unlikely to be promoted to fill the vacancies will leave the organisation. 39.PROMOTING EMPLOYEES FROM WITHIN. and ensuring a match between responsibility and authority are the 3 most-used techniques to improve retention. As the job-profiles and desired skills-sets for a particular job change. 35. evidently.INCREASING ORGANISATIONAL TRANSPARENCY. 36.Across industry-types. teambuilding exercises and welfare initiatives at the senior level. try and better them.Hi-tech companies differ from other industries in one other aspect.OFFERING STOCK OPTIONS. People do not like to work in blackbox like organisations. Growing your own is a sound retention strategy.

Jet Blue’s simple but unique approach has proved to be an effective manpower retention strategy. It provides them all requisite information ranging from the company’s balance sheet to how fuel prices affect the company’s bottom line. In other words. hiring employees with positive attitudes and fostering the entrepreneurial spirit in every employee. career-counselling. JetBlue values its employees highly and empowers them.40. Give line managers control of the orientation process. designing better compensation-packages. Assign a departmental mentor to assist new recruits during their first month. Often. promoting from within. These organisations tier their retention strategies to suit their employees at various levels of the organisation.Infotech and telecom companies are. instituting objective appraisal systems. compensation. And the corresponding figure for services and marketing companies is 35 and 17 per cent. the New York-based discount airline has become the top-performing airline. 55 . Only. constant communication. the company integrates its humane side towards its employees with the business angle. and vision-sharing seem to be more critical to the retention plans of hi-tech companies than to those operating in other industries. and the level of management at which they wish to focus their efforts. and team. culture-building. JetBlue focuses on various employee-friendly measures such as profit sharing. 44. different. Ask senior managers to participate in orientations to show new recruits that they are important to the organisation. They use the same techniques as companies operating in other industries do.Dr. Thus. while 77 per cent of infotech and telecom companies believe that sharing the organisation’s vision with their junior-level employees will help them keep their employees. These companies rate team-building efforts. to integrate new employees into their work "family" as quickly as possible. John Sullivan. He claims that most companies need to reconstruct their orientation programmes so that they make more favourable first impressions and "close the sale" on new hires. formal yet friendly work environment.and culture-building at the middle level. 43. 45.Across levels. and empowering employees. Moving apart from its struggling old-line competitors. and designing bestin-industry compensation-packages important at the junior level. especially since a couple of wrong decisions taken in promoting employees with poor leadership knowledge to managerial posts proved temporarily harmful. The company has had its share of ups and downs in manpower management. head of the Human Resource Management Program at San Francisco State University. the number of companies using them is far higher. 41.The best organisations recognise the fact that the retention techniques that will work best for them depend on the dynamics of the industry of which they are a part. Some of his suggestions: Involve the families of new employees in orientation programmes. only 16 per cent of the manufacturing companies do. and sharing the organisational vision with them at the top level. has written extensively on this subject. 42. predictably. recognising the individuality of employees is the best retention strategy.JetBlue is one of the organisations that people eagerly look forward to work with. and helping employees grow into leaders at the senior level. Yet.

Screening for personal values at the recruitment stage .During the induction programme after recruitment. despatch personnel. JetBlue recruits people who are by nature pleasant and courteous. several key managers at Marriott left. Customer service had to be provided on a 24/7/365 basis. To nurture and develop future leaders. an average work week lasted more than 50 hours. The session is attended by about 200 employees from all functions namely mechanics.The company also holds monthly meetings on the last Friday of every month. To ensure a customer-friendly orientation. The meeting includes a two-hour open ended talk with the company’s President on the latest about the company and the industry. he is imparted training and inputs on how to deal better with the situation and avoid such pitfalls in the future. 50. 47.400-2. Those employees who could not attend the session can view it on JetBlue’s intranet. They wanted to devote more time to their personal lives and their jobs 56 • . Marriott operated in an industry where every day counted and weekends and holidays generated more business than weekdays.Best Practices at Marriott International • Employee Retention and Welfare InitiativesRetaining employees in the hospitality industry was vital as the cost of recruiting and training new employees was very high. Skills training focus on both the technical skills and soft skills. in addition to offering a compensation that is approximately the midpoint or slightly above industry norms. and customer service. pilots. 48. integrity. in areas that need a heuristic approach such as customer care. Even if the employee takes a wrong decision. how to ensure that the plane arrives and departs on time and how everything an employee does influences. new recruits are made aware of the company’s formal and informal processes for internal communications. JetBlue managed to keep its employee turnover rate to just 10-12 percent when compared to the industry average of 20-30 percent. followed by a Q&A session. caring.The critical follow-up . The five personal values that are assessed for include safety. the new employees are provided an overview about the brand JetBlue. JetBlue provides health coverage. fun and passion. On the monetary front. profit-sharing and 401(k)s among others. Yet.46. JetBlue allows its employees’ values and instinctive thinking to take the final call rather than stick to the stipulations laid down in a huge procedural rule book on handling customers.500 persons it hires annually. he is not reprimanded for it – rather. Due to a focused recruitment programme. During CRM training. creative and leadership-by-example sessions. The key is that JetBlue employees love their workplace. The implication was that employees had to go through a hectic work schedule. With the increasing work load due to rising customers in the late-1990s. They feel respected and wanted by both the leadership and the organisation. 49.To ensure that only persons with similar personal values as that of the organisation get selected. IT varies from specifics like "cockpit resource management" and "crew resource management" to a more broad-based "company resource management". The candidate is subjected to an interview with not only the recruiter but also a person each from line leadership and the specific functional area. CRM is another key focus of training. JetBlue’s HR department closely assesses the 100.000 plus applications it gets each year before it zeroes on the 2. the company focuses on intensive training programmes that impart value-based.By empowering its employees with the ability to take the right decisions at the right time JetBlue trains and provides them the much needed support. and a brief insight on airline economics besides a presentation on the corporate culture and company values. The emphasis of CRM training is on the mechanisms used for communications with systems operations.

• Grievance Redressal System . depending on whether or not the said employee was happy with the redress response given at each stage. starting with the immediate superior.By the mid-1990s. known as the Guarantee of Fair Treatment (GFT). Marriott had a comprehensive complaint resolution system in place. complaints passed through successive stages in Marriott’s hierarchy. However. given the decentralized nature of Marriott’s operations. resolution of complaints through GFT did not quite produce the desired results 57 . Facing this challenge. and with managers handling several tasks. to ensure that employee grievances were addressed. Under GFT. Marriott launched a new program called Management Flexibility in February 2000 on a pilot basis at three of its hotels.at Marriott were not helping the cause.

travelweekly.uk> <http://retention.com> <http://www.com> <<http://www.mil> <http://www.expresscomputeronline.> <http://ezinearticles.com> <http://www.trainingmag.co.Bibliography: <http://jarvis.typepad.ttgconsultants.com> <http://www.edelman.com> <http://inhome.af.com> <http://www.com> <http://www.cpsc-ccsp.india-today.opcuk.com/> <<http://www.com> <http://www.com> <http://www.au.themanagementor.com> 58 .ca> <http://www.com> <http://www.trainingmag.com> <http://www.rediff.com/> <http://www.com/> <http://www.leadershipdevelopment.reuters.edu.personneltoday.tradingmarkets.org> <http://www.naukrihub.uschina.