Stay Interviews_A Critical Element of Engagement and Retention_Webinar

Stay Interviews A Critical Element of Every Organization’s Engagement and Retention Strategy PRESENTED BY DANNY A NELMS The Work Institute MEET YOUR SESSION LEADER Mr Danny A Nelms, MBA SVP & Managing Director The Work Institute Co-author of The Why Factor: Winning With Workforce Intelligence Agent of change, thought leader, and expert in helping companies forge new directions with 20 years of experience and insight into human capital dynamics Bachelor of Business Administration from Georgia State University Masters of Business Administration from the Massey School at Belmont University Adjunct faculty member at Lipscomb University in Nashville, Tennessee KEY TOPICS FOR DISCUSSION Overview of Talent Management Impact of Stay Interviews Monetizing Intent to Stay We Believe Every Word Counts Overview of Talent Management “Talent Intelligence could be a key lever in today’s hyper-competitive world As ‘business intelligence’ captures, extracts and analyzes key data on an organization’s traditional hard assets, ‘talent intelligence’ centers on key data on its people assets to generate insights that can drive improved decision-making and performance.” - Human Capital Institute DEFINING TALENT MANAGEMENT Talent Management is the science of using strategic HR to improve business value and make it possible for companies and organizations to reach their goals KEY TALENT MANAGEMENT COMPONENTS TIMING IS EVERYTHING Employees’ views change during the employment lifecycle, so it’s important to collect valuable intelligence from employees at varying times throughout the employment experience The Impact of Stay Interviews “The robustness of any talent management process should be periodically measured to ensure that it continues to be effective Monitoring enables an organization to fine-tune its talent management system on an ongoing basis in accordance with its creed and talent management strategy ” - Lance and Dorothy Berger, The Talent Management Handbook STAY INTERVIEW AND TALENT MANAGEMENT Performance reviews are not creating the right discussions Must understand risk related to retention and engagement Provides a pulse mechanism Creates qualitative data that surveys typically not Organizations must use multiple forms of employee feed back SERVICE - PROFIT CHAIN COLLECTING THE DATA Start by asking “WHY?” Use mixed methodology techniques for a stronger foundation Gather actionable employee feedback Understanding employees’ preferences, expectations, and intents is essential to eliminating the high cost of turnover, the expensive process of recruiting new hires, and the major issues that lead to dissatisfaction in the workplace REPORTING THE DATA Data accessibility when and where you need it Information that goes beyond ratings and indexes Simple yet powerful analysis capabilities Ability to correlate research to support decision-making STAY INTERVIEWS: WHEN AND HOW As an engagement assessment Supplement engagement research High turnover areas Pulsing tool YOU CAN CALL A STAY INTERVIEW ANYTHING YOU WANT STAY INTERVIEW AND TALENT MANAGEMENT Evidence based management Data is the critical element of evidence based decisions Talent management is fluid therefore must have ongoing feedback Managing controllable human capital costs WHAT STAY INTERVIEWS ARE NOT Do not replace the need for exit interviews If done externally, they are not a replacement for frequent manager/employee discussion VALUE OF STAY INTERVIEWS Recruit, retain, reward and develop are key to high level of employee engagement Organization should consider the importance of talent management CEOs are talking/focusing on talent management Keys to the stay interview Inside vs outside Part of talent management strategy Monetizing Intent to Stay “By creating a clear ‘line of sight’ between HR activity and your organization’s bottom-line profitability, HR analytics can provide a tangible link between your people strategy and your organization’s performance.” - Economist Intelligence Unit Study by KPMG WHY FOCUS ON INTENT TO STAY? Retention drivers and engagement drivers are the same Proactive approach to retention AND engagement Retention can be measured both in turnover and costs FINANCIAL CASE FOR IMPROVING INTENT TO STAY Elements of Turnover Costs: Lost productivity Temporary replacement Hiring costs Training costs Administrative costs INTENT TO STAY HOW TO INTERPRET Typical Intent to Stay Ratings Within months (Poor) 4-12 months (Fair) 12-24 months (Good) 24-36 months (Very Good) Not for a Long Time (Excellent) COST IMPACT FOR A SMALL COMPANY Typical Company 500 employees 12% Indicate Intent to Stay less than Year 60 Potential Terms in Next 12 months Average salary = $50,000 Risk of Turnover Costs $50,000 * 33% = $16,500 per employee $990,000 Potential Direct Cost $990,000 * 1/3 = $330,000 $16,500 * 60 = Q&A “Judge a man by his questions rather than by his answers.” - Voltaire We Believe Every Word Counts “While quantitative surveys may provide you a compass to understand direction, The Work Institute methodology is a GPS! We can hone in on the key actionable information so you drive your organization and achieve your goals with confidence.” - Danny Nelms, The Why Factor: Winning With Workforce Intelligence ABOUT THE WORK INSTITUTE Discover a better approach to gathering and understanding workforce intelligence, and get results that give you a competitive advantage proprietary, customized solutions to get to the root of how people respond to your organization emphasis on mixed method research – we get the best information, so we can give you the best information a commitment to meeting clients where they are, matching research and analysis to the client’s needs, and asking the right questions The Work Institute gives your organization the power to improve overall satisfaction, reduce cost, and promote growth Leading national and international organizations rely on The Work Institute to gather actionable data to help manage talent, improve performance and mitigate risk Stop wondering Start knowing Start winning! UNDERSTAND YOUR EMPLOYEES MANAGE MORE EFFECTIVELY COMPETE AT THE HIGHEST LEVEL The Work Institute | 1620 Westgate Circle, Suite 100 | Brentwood, TN 37027 Toll Free: 1-888-750-9008 | Phone: 615-777-6400 www.WorkInstitute.com ... PROFIT CHAIN ENGAGEMENT MODEL INTRODUCTION OF THE STAY INTERVIEW Earliest article found in 2008 Around 2010-2011 The Power of Stay Interviews, Dick Finnegan KEY ELEMENTS OF THE STAY INTERVIEW STAY. .. INTERVIEWS: WHEN AND HOW As an engagement assessment Supplement engagement research High turnover areas Pulsing tool YOU CAN CALL A STAY INTERVIEW ANYTHING YOU WANT STAY INTERVIEW AND TALENT MANAGEMENT... manager/employee discussion VALUE OF STAY INTERVIEWS Recruit, retain, reward and develop are key to high level of employee engagement Organization should consider the importance of talent management CEOs