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Business case: Setting the stage for effective recruitment and retention. What attracts employees?
> Attractiveness dimensions. > Employment branding at PacifiCare. > Employment branding activity.
What makes employees stay?
> Retention factors at Google (video). > Generational differences. > Targeted retention at Deloitte. > Innovative retention at Best Buy.
Scenario The organization:
> Needs a qualified, talented person for a
position. > Advertises and recruits for the position. > Hires someone for the position.
> Is trained and socialized. > Experiences a learning curve. > Becomes productive. > Leaves the organization.
Discussion Questions 1. What are the business concerns related to this scenario? 2. What are the implications of these costs to employers in terms of recruiting and retaining employees?
Functional turnover: When disruptive or poor-performing employees leave the organization. wellnetworked. 5 . knowledgeable.Turnover Not all turnover is bad« Dysfunctional turnover: When talented. productive. experienced. high-potential employees leave the organization.
This requires understanding the ³psychological contract´: The unwritten understanding regarding what both the employee and employer want from the employment relationship. 1.Psychological Contract HR and managers must partner to prevent dysfunctional turnover. What other factors affect psychological contracts? 6 . What is your psychological contract? 2. How does it differ from your parents¶ and grandparents¶ psychological contracts? 3.
Recruitment: What Attracts Employees? 7 .
ASA Model (Schneider. values. Attrition: > People will leave organization if they don¶t fit. personality). Selection: > Organizations select applicants with attributes it desires (influenced by organizational founders)..g. ©SHRM 2008 8 . 1995) The composition of organizations is determined by Attraction: > People are attracted to organizations whose attributes are congruent with their own personal characteristics (e. 1987.
Social Value: Attraction based on a collegial work environment with good team atmosphere..Employer Attractiveness Dimensions Interest Value: The extent to which an individual is attracted to an employer because of the excitement and creativity of the work environment.. 24(2). 9 . International Journal of Advertising. Captivating company: dimensions of attractiveness in employer branding. Development Value: Based on recognition of work and career-enhancing opportunities. Economic Value: Attraction based on salary and benefits. Source: Berthon. L. P. Ewing. (2005). M. and Hah. 151±172. L. Application Value: The employee¶s ability to apply what they have learned to teach others and interact with customers in a way that is positive and humanitarian.
DaimlerChrysler Advertisement in The Economist 10 .
Why Do It? > By 2010. Adapted from: Estis. > An employment branding goal asks a person to change their life. ©SHRM 2008 11 . there will be 5-10 million fewer workers than jobs in the U. IL. SHRM 60th Annual conference and Exposition.Employer Branding: What is It? Why Do We Need to Do It? Employment branding is ³internally and externally promoting a clear view of what makes a firm different and desirable as an employer.´ (Lievens. Employment Branding: Attracting and Retaining Generation NEXT. > Generation X¶s workforce is half the size of the about-to-retire baby boomers. 2007) > A consumer branding goal asks a person to buy a product or service. Chicago.S. R. (2008).
2003). ©SHRM 2008 12 . 2004).Employer Branding Research A strong employer brand is related to: > Pride of individuals expected from being organizational members (Cable & Turban. > Applicant pool quantity and quality (Collins & Han. 2003). Gerhart. > Stable and positive workforce attitudes and organizational performance compared to broader market (Fulmer. & Scott.
Entice the right candidates to apply for the job. 60th Annual Conference and Exposition.Goals for Employer Branding Establish an image of the employment experience. Chicago. Employment Branding: Attracting and Retaining Generation NEXT. IL. ©SHRM 2008 13 . Create synergy with consumer brand: > Align promise to customer with promise to employees. Clearly state ³what¶s in it for me´ to potential applicants. (2008). R. Adapted from: Estis.
Employment Management Today. . How should the level of branding efforts vary based on the economy? 14 Source: Joinson.Building an Employer Brand Discussion Questions 1. How do you start a branding effort? 3. What should your branding message include? What is your value proposition? 4. (2002). 7 (3). C. Building and Boosting the Employer Brand. How is employer branding different from recruiting? 2.
Execute and measure. 3. Articulate your value proposition for employees.hewittasia.htm 15 .com/hewitt/ap/australia/index. Source: http://www. Understand your organization. Create a compelling brand promise that mirrors your customer brand promise.anon1 Five Steps to Building an Employer Brand 1. 5. Align all people practices to support and reinforce the brand promise. 4. Develop standards to measure the fulfillment of the brand promise. 2.
and direct URL for this source. date.Slide 15 anon1 Nancy: This URL defaults to a main page which does not reference branding. I found a possible study on that website but I'm not 100% sure it's the source the author referenced. 9/24/2008 . We will need a title. author. SL Sharon H Leonard.
> Consumer message: Caring is good. Doing something is better. including > Employee value proposition: Envision. Innovate. Particularly effective when the referrals are coming from committed and productive © 16 employees.PacifiCare Launched a comprehensive employer branding campaign.SHRM 2008 . Accomplish. To what extent are these aligned? > Employee referral program (ERP): ERPs are one of the best recruiting tools in terms of performance and retention.
com/TalentTips/Archives/PacifiCare_white.Employer Branding: Recruiting Advertisement ©SHRM 2008 Source: http://nasrecruitment.pdf 17 .
pdf ©SHRM 2008 18 .com/TalentTips/Archives/PacifiCare_white.Employee Referral Flyer http://nasrecruitment.
pdf ©SHRM 2008 19 .com/TalentTips/Archives/PacifiCare_white.PacifiCare PacifiCare¶s employer branding efforts have been recognized by the following awards: > Best Employer Brand: 2006 Electronic Recruiting Exchange > Best in Class Employee Referral Web Site: VirtualEdge West Coast User Group > Top 50 Employer for Minorities and Women: Fortune Magazine http://nasrecruitment.
82%. Employee referral results: > ERP participation increased by 31%.PacifiCare¶s Results Branding results: > 85% of interviewed candidates agreed with the statement. > 81% rated PacificCare either ³one of the best´ or ³above average´ as compared to other companies. > Hiring manager satisfaction: 84. > Referral hires increased by 15%. ³PacifiCare is a good place to work.pdf ©SHRM 2008 20 . > Conversion rate of referrals to hires: 85%. http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.´ This was a 25% increase.
Share your advertisement or job announcement with a partner and answer the questions on the next slide. Be prepared to discuss your answers with the entire class.Employment Branding Activity Take out the recruiting advertisement/job announcement you found. ©SHRM 2008 21 .
3. 5. advertisement or job announcement? Are aspects of the consumer brand mentioned or conveyed? If so. how? How does the advertisement communicate what it is like to work at that organization? Would this job announcement appeal to the types of employees the organization is seeking? Why or why not? What recommendations would you have to improve the appeal to qualified candidates? ©SHRM 2008 22 . 4.Discussion Questions 1. What are the key messages expressed in the 2.
Retention: What Makes Employees Stay? 23 .
Known for little bureaucracy. What is it like to work at Google? ©SHRM 2008 24 . less emphasis on experience. Good ideas are implemented. regardless of who they came from.Google #1 on Fortune¶s 100 Best Places to Work in 2007 and 2008. Hire smarts.
Extrinsic rewards (pay. employees Organizational justice. * .cited Location. more by high Investment in the organization. more by higher-level Organizational commitment.What makes employees STAY? Advancement opportunities. employees). performers than low Job satisfaction. Organizational prestige. than hourly.* 25 . boss.* Constituent attachment (co-workers. performers. Lack of alternatives. significantly Non-work influences. bonus). Green ± cited significantly Flexible work arrangements.
friends). pace. ©SHRM 2008 26 .Embeddedness Theory of Retention Premise: The more embedded an employee is in the organization. > Links (connections): To people and projects in organization. commute. With the community. Embeddedness factors include: > Fit: With organization--working conditions. neighborhoods. the less likely they will actually leave. tuition. perks). flexibility. > Sacrifice: What would I have to give up? From organization (benefits. etc. With community--affordable housing. Community (schools. culture.
M.Discussion Questions What are the practical implications of this study? Which retention factors relate directly to employment branding efforts? What do the study¶s findings suggest about the utility of employer branding? How could generational differences affect reasons for retention? 27 Source: Hausknecht. Howard. (2008 . Rodda... J. J. M. P. J.
> Baby Boomers (born between 19431960). > Gen Y (born between 1980-2000).Generations in the Workplace We have four generations represented in today¶s workforce: > Matures (born between 1901-1943). > Gen X (born between 1960-1980). 28 . View ³The Millennials are Coming´ (60 Minutes video).
29 . > Brings a different perspective to the workplace. > Has different interactional styles and preferences. > May misinterpret words and actions of employees from other generations.Multigenerational Workforce Each generation: > Shares a similar set of experiences and perceptions due to the events of their lifetime.
Multigenerational Workforce Employees across generations need to work together more today: > Flatter organizations. > Growth of performance and meritbased pay and promotion systems. 30 . > Globalization and knowledge-based economy requires collaboration.
How to Get. and Grow all Four Generations. Chicago. 31 . 60th Annual SHRM Conference. G. Keep. > A more competitive position. IL.Multigenerational Workforce Employers who maximize crossgenerational communication improve knowledge transfer. (2008). Source: Kovary. yielding: > A better-developed workforce.
60th Annual SHRM Conference. results-driven. work-life balance Unimpressed by authority. challenging. (2008). rapid career growth.Generational Differences: Summary Work Related: Values Matures Loyalty. diversity focused. ambition. How to Get. not title. . compliance Baby Boomers Personal growth. innovative. civic minded. ©SHRM 2008 32 IL. results-focused Maintain independence Behaviors Respectful of authority. Keep. honor. pragmatism. and Grow all Four Generations. Chicago. linear work style Challenge authority. loyal to team Goal Build a legacy Have an effect Source: Kovary. loyal to manager. techno-savvy Continuous change. collaboration Rewards for hard work Gen X Independence. equality. flexibility Gen Y Confident. hard work. sacrifice. focus on change Find work and create a life that has meaning Expectations Stability Continuous learning. personalized experiences Respect for competency. G. dedication. youthfulness. optimistic. loyal to peers.
Millenials: Job changing is part of their daily routine. presented at 2006 SHRM national Conference. Washington. Baby Boomers: Job changing puts you behind.Generational Viewpoints on Job Changing Matures: Job changing carries a stigma. Leign Branham. Gen X-ers: Job changing is necessary. The Seven Reasons Employees Leave. DC . Adapted from: F.
No one really likes change. We all like feedback. Deal. . Everyone likes security and the ability to balance work and life.Generational Similarities How are we similar? People all want to trust their supervisors. (2006). Retiring the generation gap: How employees young and old can find common ground. J.
> Made explicit certain trade-offs between choices. 22nd Annual Conference of the Society of Industrial and Organizational Psychologists. > Increased retention by creating a sense of loyalty and connection. Source: Women Leaders. April. New York. Symposium. NY ©SHRM 2008 35 . Created the Women¶s Initiative program designed to make Deloitte a better place to work. > Focused on adaptability of employee and employer. 2007. especially for women. Developed mass career customization: > Employees needs differ at different life stages. > Increased choices in shaping career paths to fit life choices.Targeted Employee Retention Deloitte Low retention of women threatened their business.
Source: Women Leaders Symposium.g.. > Workload. 22nd Annual Conference of the Society of Industrial and Organizational Psychologists. 2007.Targeted Employee Retention Actions taken to retain and promote women Note: All programs and opportunities developed under WIN were available to both men and women. > Work as independent contractor. Allow choice with regard to: > Pace of career progression. > Location and schedule of work. > Attend Deloitte functions. > Assigned a mentor and career coach. NY . Up to five-year leave of absence while staying connected: > Maintain professional certifications (e. April. New York. CPA).
2007. Source: Women Leaders Symposium. April. > Consistently recognized on Working Mother¶s ³100 Best Companies for Working Mothers´ honor roll. 22nd Annual Conference of the Society of Industrial and Organization Psychologists.Targeted Employee Retention Deloitte¶s results: > 21% of employees at the partner. Deloitte leads Big 4. > Has created or sponsored more than 400 professional development. and director level are women. principal. > 46% of all employees are women. N . New York. networking and mentoring activities.
BusinessWeek. > Work when and where you want ± just get the job done. . 2006.Retention Innovations: Best Buy: Smashing the Clock Best Buy¶s situation: > Burnout among headquarters employees. > Focus on what gets done. Solution: > Results Only Work Environment (ROWE). > No mandatory office time. Smashing the Clock. M. 38 Source: Conlin. > Management emphasis on face time/ > Expectation of 24/7 availability due to technological advances. not physical presence. November.
M. what types of systems need to be in place to sustain ROWE on an ongoing basis? 39 Source: Conlin.Best Buy: Smashing the Clock Results: > Average voluntary turnover has fallen drastically. BusinessWeek. November. . > Productivity is up an average 35%. > Employee engagement has increased. Discussion Question From an HR perspective. 2006. Smashing the Clock.
what could it do to improve the quality of recruits and retain the best talent? ©SHRM 2008 40 .Discussion Question Based on what we¶ve discussed and your anon2 organization¶s mission and purpose.
Is "your organization" referring back to the first exercise where students were told to find a job advertisement? Or are students supposed to reflect on their own organizations--which they probably don't have if they're traditional undergraduates.Slide 40 anon2 Nancy: I'm confused. Sharon H Leonard. 9/25/2008 .
minimize conflicts through training/education. > Determine drivers of retention of your workforce.Conclusion Building an employer brand leads to higherquality and more efficient recruiting. > Consider ways to create more ³glue´ for your high-performing population of employees. 41 . Generational differences are a source of diversity ± use them to your advantage. Create an organizational culture that serves to execute your strategy and retain and attract the best workforce.