PA E AK DR CA N FRI 24 S O A TO CU TH 21 FO SOU GES HELPING YOU MEET THE CHALLENGES IN YOUR BUSINESS – RIGHT NOW MAKE YOUR COMPANY MORE EFFECTIVE THROUGH WORKFORCE PLANNING calculating the dollar costs of a weak employee how to become the best leader you can be Nelson Mandela Bridge, Johannesburg, South Africa VOL.6, NO.2 The Intersection of Recognition I t’s not complicated: When we human resource professionals and our companies spend time and money to recruit the best and train them to be even better, we expect them to stay. We need them to stay. High performers with high potential are vital to any organization’s survival and growth. They’re essential for building an engaged workforce that meets individual and group goals and improves customer satisfaction. So why does retention continue to be an issue despite a thorough screening during the recruitment process and exceptional training after an employee gets on the job? Recruitment of top talent leads to retention only when the workplace fosters an environment where employee engagement is understood and appreciated. Employees with lower engagement are four times more likely to leave their jobs than those who are highly engaged, 26 Drake Business Review | according to a report by the Corporate Leadership Council. High-potential associates have the potential, ability, and aspiration for leadership and are valuable assets in our competitive business landscape. Employees with lower engagement are four times more likely to leave their jobs than those who are highly engaged. What’s the cost of not fostering an engaged workforce? According to a report published by the Society for Human Resource Management, direct replacement costs companies 50 to 60% of an employee’s annual salary, and the Vo l u m e 6 , N u m b e r 2 | drakeintl.com total cost of turnover can be as high as 200% of the employee’s annual salary. A PricewaterhouseCoopers study estimated that turnover-related costs represent more than 12% of income for the average company, a number that jumps to 40% for companies in industries with traditionally higher turnover rates (i.e., retail, food service, telemarketing, health, and child care). In today’s workplace, all companies should aim to develop and retain highperforming, high-potential associates who are empowered, enthusiastic, and loyal. This doesn’t just happen; but it’s critical, especially since we know employee disengagement costs companies hundreds of billions of dollars a year. Consider this: If you have high-performing, highpotential associates who are well trained and understand your products, services, and go-to-market strategies but do not the intersection of recognition with recruitment and retention with Recruitment and Retention like or trust you, then they are not likely to be engaged with your business or with your brand. A well-trained associate who understands your market strategy, products and services can help move your company forward. success. You need to listen to and hear your employees. Employee surveys are an excellent tool, but too often companies don’t act on the findings or, worse, refuse to believe them. When this happens, employees lose trust in leadership. In today’s workplace, the goal should be to develop and retain high-performing, highpotential associates who are empowered, enthusiastic, and loyal. How can you nurture your top employees? How do you develop and retain high performers who are empowered, enthusiastic, and loyal? Start by aligning your business goals with your people goals to build an empowered workforce that actively collaborates toward organizational You need to value and reward employees’ input, ideas, and innovation. Most of all, you need to embrace service leadership, where you take into account the needs of the people you lead. This promotes a selfleadership or empowered environment where you’re all working toward the good of the whole. To visualize this, take your organizational chart and turn it upside down: This is a true picture of an organization that embraces service leadership. You also need to help your associates grow and develop, and ensure that they maintain a work–life balance. With today’s multigenerational workforce, you need to appeal to a variety of workplace preferences and understand what motivates people. You must provide a benefits package that is more than medical and compensation. To create an environment that promotes strong engagement and retention, benefits should also include talent management, training, enrichment opportunities, wellness, rewards and recognition elements, career pathing, and social interaction. And last but not least, you need to recognize and applaud achievements — whether it’s performance, tenure, wellness, safety or compliance. Recognition drives engagement. A recent Gallup study revealed organizations with recognition 27 the intersection of recognition with recruitment and retention programs improve employee engagement and have a 31% lower turnover rate than organizations with ineffective or no recognition programs. councils, associate advisory councils, or high-potential associate teams. • Ask employees what motivates them and then act on it. • Offer formal, informal, and spot award opportunities. With today’s multigenerational workforce, you need to appeal to a variety of workplace preferences and understand what motivates people. • Provide training and enrichment opportunities for every associate Never lose focus of your goal — to recruit top talent that will stay with you during and after their development. How do you do this? • Be a good listener: Communicate frequently, about both good and bad. • Create avenues that give people a voice, such as leadership advisory It’s imperative that organizations in the midst of recruitment make recognition meaningful and effective. Track and measure your efforts. Communicate your results. Whether it’s an informal appreciation event or a formal, structured recognition program, never lose focus of W H I T E PA P E R S Exit Interviews - Using Exit Interviews Effectively This Drake White Paper focuses on how you can convert Exit Interviews into a valuable management tool. It will also examine the root causes of staff turnover, how to obtain open, honest and impartial feedback, and how to structure an Exit Interview effectively and evaluate your ROI. Exit Interviews - How Impartial Assessments Can Improve Staff Retention High employee turnover costs these organizations hundreds of thousands of dollars and yet most are completely ignorant of the underlying causes. Read Drake’s White Paper on how a properly implemented Exit Interview solution will allow you to understand the root causes behind staff turnover, identify opportunities for organizational improvement, gather general feedback, and offer recommendations for change. Visit www.drakeintl.com to read these White Papers and others on a variety of Talent Management Solutions. 28 Drake Business Review | Vo l u m e 6 , N u m b e r 2 | drakeintl.com your goal — to recruit top talent that will stay with you during and after their development. When you retain high performers, you get a strong workforce with employees who are empowered, enthusiastic, loyal, and highly engaged. DBR Reprinted with the permission of Tina Weede, CRP, President, USMotivation and the Board Executive Vice President of Recognition Professionals International (www.Recognition.org). RPI is the only industry association dedicated to educating, improving, and advancing employee recognition and rewards in the workplace. To contact Tina Weede or RPI, please email [email protected] Why not manage your turnover in advance? Exit interviews facilitated by an expert third party give you deeper and more accurate information than interviews conducted in-house. They generate the data you need to end unnecessary turnover and improve operations. To learn more, contact the Talent Management Solutions team. 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