Turnover

Yesterday's ERE article by Kevin Wheeler of Global Learning Resources highlighted organizational turnover and how employers can develop a few targeted programs to help keep employees happy and with the company. I thought Kevin was right on target with his assessment and thought it prudent to share his article with all of you.

I hope you enjoy today's posting and enjoy your weekend -


Money Won't Hold Them: 6 ways to reduce turnover
8/16/2007 by Kevin Wheeler
about the author
Kevin Wheeler
President
Global Learning Resources, Inc.
email bio

Turnover at one mature organization I have spoken with recently has reached close to 100% for its key engineering talent. This is not because the company is a poor performer or because it doesn't pay well. In fact, it is doing very well and pays above the average.

The reason they are losing people is because they are well-paid, have made significant income, and have built up large 401(k) accounts. They are leaving because they are successful and able to pursue other interests.

The causes of turnover are changing and wise organizations are looking deeply at those causes and learning new ways to respond.

I often hear managers, CEOs, and supervisors promising this and that and making speeches about how committed they are to their workers.

When it comes time to allow workers some say in their work, or the opportunity to transfer to another department, or the chance to try something new, they just as often hesitate. Words can take on many meanings and can be twisted to fit any occasion. Deeds speak for themselves.
Back in the "good old days," turnover levels were very low in most organizations, often approaching less than 2% in firms such as Hewlett-Packard and IBM. Employees expected to be retained until retirement and to receive a living retirement income after 25 or 30 years of service. There was loyalty and commitment to the firm and frequently in the best of these companies, strong cultures matured. These cultures provided an unwritten behavioral guide and a sense of pride and friendship. People were proud to be knows as an IBMer, for example, because it was like being admitted to an exclusive club. Their friends who were not IBMers were jealous.

But somewhere in the early 1980s, things began to change. The first crack came with the advent of the 401(k) and (b) plans that freed employees from the corporate retirement programs. The 401 programs are, in effect, portable pensions. In effect, you take your accumulated savings and add to them somewhere else.

Silicon Valley companies had never set up pension programs because the young companies there, with young non-union workers, did not feel any need to establish retirement programs. So they were the first to feel the impact of 401 programs as workers started understanding what they were all about.

Later the downsizing and re-engineering movements began reducing the workforce and began to crack the idea that a company would take care of you until you were ready to retire. Thousands found themselves on the street with no jobs and no retirement benefits. Loyalty crumbled and the idea of staying with an employer for decades became less attractive.
In fact, for many young people the idea of working for a single employer for some long period of time is frightening and is seen as career limiting. How times change!

Now as we enter a couple of decades where it will be very hard to find good people and even harder to keep them, we have corporations interested in preventing both their baby boomer experts and their newly recruited Gen Y superstars from leaving. It is tough to convince them to stay.

Most organizations find themselves with benefits packages that are increasingly the same: portable pension plans, good cafeterias, and lots of other perks. Nothing really differentiates them in material aspects from the competition.

From an employee's perspective, there is almost no negative stigma to having frequently changed jobs. In fact, changes that make sense are considered a plus as they mean the employee has added experience and competitive knowledge.

So how do you make it more attractive to keep employees? Here are a few ideas:

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  Make it easy for people to move around in your organization. Do not limit transfers. Let people try out areas where they have little experience. Encourage cross-fertilization and give people the support and development they need to succeed in the new position. Never tell an employee they are not ready, too junior, not educated enough, or haven't worked at the firm long enough to do whatever it is they want to do. To tell them any of those things is a guarantee that they will leave you soon.
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  Provide lots of free development and training. Encourage employees to get more education by offering to pay for 100% of college tuition or for 100% of a certification program. Pick key employees and offer them the chance to participate in longer-term development programs. Make a big deal out of development and then pay the employee more money when they complete the program. Gen Y, in particular, is attracted to any company that helps them gain more skills.
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  Allow employees to volunteer time outside the organization. For example, Google allows employees to donate time to charities while still being paid. Letting employees participate in community, social and charitable activities not only improve your organization's reputation, but acts as a retention tool.
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  Pay at market rates or more. Don't think that your benefits or loyalty will keep employees happy. Err on the side of generosity when you offer pay increases and never let pay be an excuse for an employee leaving. Pay is never the real reason people leave a firm, but it sure makes a great excuse for employees. Most organizations can't defend themselves on this issue because they don't pay that well.
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  Manage the performance of your managers. Track the turnover of employees for every manager. Managers who have any significant turnover need to be educated and mentored and, if things don't improve, removed from managing people. Every survey shows that one of the major reasons people leave a firm is because of mistrust, dislike, or incompatibility with the immediate manager. While these suggestions are in no particular order, if asked I would put this one first. Poor managers are the worst enemy of retention that an organization can have. Reputations spread and can infect many people and can start a negative buzz about working for the company in the marketplace.

Remember that we have entered a time when the employees are in charge. They can cripple your success and they know exactly how. They own the tools of production, and management needs to understand that the best companies, those that are most financially successful, have employees who enjoy "just enough" management and a lot of freedom. Today's employees are better educated, more independent, less afraid, more secure, and far more entrepreneurial than those of even 10 years ago. This means that HR policies and management styles have to radically change.

These are the best ways to reduce turnover and develop a workforce that is energized and productive. It requires a committed management team and a lot of new thinking, but these methods can really work.

Career Accomplishments

Let me start out this morning by saying if you haven't taken an opportunity to go visit TheLadders.com, you definitely need to take a few minutes and check it out. The link to their website is just to the right of this article; and please, let me know what you think.

Today's post comes yet again from TheLadders.com and author Abby Locke. Our topic: Defining Career Success. While a variety of standards or benchmarks exist by which we can evaluate of professional career growth, Abby takes us a step further by making some recommendations on how we can highlight such achievements in our resume and next interview.

I found the article to be insightful and thought-provoking; and it made me reflect on my own career achievements. So take a few minutes and enjoy today's post - and most importantly, reflect on your own career achievements, so you are ready the next time someone asks you what you have accomplished in your career.


How Do You Define Career Success?By Abby Locke

Do any of these situations apply to you?

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  You have enjoyed steady career progression and have been unexpectedly thrust into the job market for the first time in 15 years.
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  A viable opportunity for internal promotion has popped up, but you will be going up against some the company's top employees.
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  You have reached the proverbial "glass ceiling" and want to pursue new executive opportunities.
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  A mentor you admire wants to introduce you to a key decision maker and a preliminary interview is scheduled.

All of these situations have one thing in common: they require you to put your best foot forward and provide proof of performance. Whether you are actively job hunting, preparing for an interview, or about to connect with a new contact, you need to be able to articulate your key strengths and unique value proposition.

If you haven't sat down and evaluated your career success in a long time, now is the time to start! One of the areas where many senior professionals fall short is in capturing strong, quantifiable and qualitative achievements relevant to their industry. For example, the success for a sales executive is going to be defined in terms of sales growth, market share expansion and strategic alliances, whereas a finance executive is going to attract attention if he/she has noteworthy achievements that relate to P&L management, ROI maximization and cost reduction.

So how do you define success in your industry? Here are a few memory-jogging questions to help you identify and chronicle high-impact achievements that can power up your resume and impress any interviewer.

1. Have you recommended a new system or process that improved efficiency or productivity?
Possible answer: Introduced innovative process improvement initiatives that automated 45 processes, shrunk operating costs by $500,000, and eliminated 100% of manual, time-consuming tasks.

2. Did your actions directly save the company money or time?
Possible answer: Identified $13.5 million savings in general and administrative expenses by conducting extensive review of corporate and field sales operations.

3. Were you responsible for reducing costs or trimming operations?
Possible answer: Slashed annual HR expenditures by $18 million by eliminating duplicate costs, creating benefit efficiencies, and reducing employee training costs.

4. Did you initiate a new program that positively impacted the bottom-line?
Possible answer: Increased annual revenues 20% by introducing a "first-of-its-kind" technology program which offered customers a complete suite of IT solutions instead of a-la carte services.

5. Have you ever been involved in a startup or turnaround operation? What was the outcome?
Possible Answer: Conceived and developed a startup technology consulting firm from the ground up to over $3 million in operations in just three years.

6. Did you receive a powerful compliment or testimony from a senior leader in the company?
Possible Answer: "Trip has devised an innovative marketing philosophy that has rebranded ABC Company in the marketplace and positioned us for success. Her contribution to the team has been valuable and her expertise as a marketing guru is evident." Chief Marketing Officer, ABC Company

7. Did you generate reports or data that improved decision making?
Possible Answer: Eliminated over $80,000 in project delay costs by implementing a project monitoring system which helped senior managers make informed business decisions on asset and resource allocation.

Getting prepared to develop your career accomplishments is not always an easy task. Don't overwhelm yourself by trying to capture ten or fifteen years of accomplishments in one day - start by working with one company at a time then pull it all together. Then, you'll be prepared for your next opportunity!

Abby M. Locke is a Certified Executive Resume-Writer and Personal Brand Coach who supports senior-level finance, accounting and technology professionals in career transition. Her resume samples have been published in Nail the Resume! Great Tips for Creating Dynamic Resumes, and Same-Day Resumes.

The Benefits of a Mentor

This morning's post comes yet again from TheLadders.com, so many thanks to them and their talented team. Today's feature article from Randi Bussin, highlights the benefits of a Mentor-Mentee relationship. I have found that a Mentor can be an incredible resource when developing new skills or honing those previously acquired. So enjoy your morning coffee and today's posting, and as always, please let me know your thoughts and comments.

In closing, I would like to take a moment to thank my boss, Joe Woerner, who has been an incredible mentor to me since joining Management Recruiters and one whom I owe a great deal of my success to - Thanks Joe for everything you do.

Ten Tips for Getting the Most Out of Your Mentor
By Randi Bussin

How can a mentor improve your business and career advancement? Many ways: a mentor can guide you, take you under his or her wing, and teach you new skills. Research has shown that mentoring relationships succeed and are satisfying for both parties when both the mentor and mentee take an active role in developing the relationship.

Here are 10 tips you can implement to ensure you get what you need out of your mentor-mentee relationship.

1. Be clear on why you want a mentor and why you are meeting. Define what type of help you're looking for in a mentor. Are you looking for someone with similar skills or someone with a very different skill set who can coach you? Are you looking for someone who has gone up the corporate ladder and can advise you on the ins and outs of corporate politics?

2. Establish goals for the relationship. Discuss and agree upon the goals of the relationship and what you, personally, are doing to make it a successful venture. Review these goals from time to time to be sure the relationship is working; if not, adjust and refocus.

3. Network, network, and network to find a suitable mentor. Once you decide on the type of mentor you need, participate in functions and professional associations where you might find this type of person. For example, scour your Chamber of Commerce events, alumni and professional associations, or even your own company. If you do choose someone from your own firm, it's best to select someone other than your direct supervisor.

4. Don't limit yourself to one mentor. You can establish multiple mentoring relationships with individuals who can help you grow in different aspects of your life. Think of it as building your own personal Board of Directors. Also, don't underestimate the value of a "peer mentor" or someone at your level who has complimentary skills and experiences -- even if you think you're on the same level, you can learn a lot from their previous experiences.

5. Establish communication methods and frequency of contact from the beginning.Talk with your mentor to determine the lines of communication that will work for both of you. Will you meet face to face or communicate mainly through e-mail and the telephone? Make sure you meet/talk enough to suit both of you.

6. Manage expectations and build trust. Mentoring takes time and implies sacrifices for both the mentee and the mentor. Be respectful of your mentor's time and the other priorities in their life -- family, travel, and community activities. Avoid any trust-breaking behaviors such as canceling appointments or not following through on leads and contacts given to you by your mentor.

7. Acquire mentoring skills and competencies. Pay attention to great skills that you notice in your mentors; these skills include listening, guidance, recommendations, and wisdom. When you receive corrective feedback from your mentor, don't be defensive. Listen, digest, and take immediate steps to apply what you have learned.

8. Be respectful of your mentor's time.Do not overburden him or her by demanding too much in terms of their time and/or contacts. Understand that when you decide you need information might not be the best time for them, so be patient.

9. Express your gratitude.The mentor may tend to give a lot more than you do in the relationship in terms of time and/or contacts. Be sure to express regularly that you value and appreciate your mentor's guidance.

10. Vary the activities you do together.There are numerous activities you can do with your mentor, including talking about your past experiences, goals, plans, and skill development, and attending meetings, conferences, and other events. You can also shadow your mentor at work or exchange and discuss written materials like your resume or an article one of you has written.

Randi Bussin, founder and president of Aspire!, is a career coach and counselor with 25 years of business, entrepreneurial, and career counseling expertise.

Thank You

Good Morning. I wanted to share an article with you this morning regarding thank you letters that Barbara Safani wrote for TheLadders.com. I found the article informative and refreshing - and most importantly, a reminder that I do not express my thanks nearly as often as I should. So in the spirit of the article, THANK YOU!!!


Five Reasons to Send Thank You LettersBy Barbara Safani

Thank you letters are an excellent self-marketing tool and a critical component of your job search strategy. The time you spend crafting a targeted thank you letter after an interview will be well spent, and it will help you create a credible and efficient search. Here are five reasons why you should incorporate thank you letters into your search strategy.

1. A thank you letter creates an opportunity to reconnect with employers.Chances are you aren't the only candidate being interviewed for an open position. Writing a follow up letter allows you to build a relationship with the interviewer and develop rapport. By expressing your gratitude for the interview and recapping the highlights of the meeting, you revisit the reasons why you are the best fit for the position.

2. Following up keeps your candidacy top of mind.Candidates often make the mistake of putting too much control in the interviewer's hands. They believe that, if they're the best candidate, the interviewer will remember them and keep them in the loop regarding the selection process. Unfortunately, this doesn't often happen. It's critical that candidates remind prospective employers of their interest in a position. The thank you letter is the perfect vehicle for communicating this interest.

3. Written correspondence gives you another chance to sell your strengths.While the thank you letter expresses gratitude for the meeting, it also serves a much more strategic purpose. It provides an opportunity for the candidate to present their skills and accomplishments in another format and market the value they'll add to the employer.

4. The document enables you to address points you neglected to discuss during the interview.Many candidates, after leaving the interview, think of other things they could have said during the meeting. Don't label this a liability; turn it into an asset by discussing these points in the thank you letter. Remind the reader of your ability to produce similar results for their organization.

5. A letter helps develop rapport and increases the employer's comfort level in your candidacy.A good strategy is to recap a part of the conversation where you and the interviewer shared similar views on a job-related topic. The thank you letter can also be a forum for demonstrating your consultative problem solving skills. By addressing current issues the employer is facing and proposing solutions, you are contributing to the company's success even before you are on board!

Thank you letters continue to be an important component of a successful job search campaign. But the focus has shifted from a simple courtesy and show of appreciation to a targeted self-marketing tool. By creating letters that validate your candidacy, build rapport, and remind the reader of your value added, you can significantly influence potential employers and -- most importantly -- increase your chances for subsequent interviews.