Presentation on theme: "Building from Within By"— Presentation transcript:
1Building from Within By Steven Lichtenstein Director, SFRA Cedars Sinai Medical CenterKeith Graff Director of Advisory Services PWC
2Learning Objectives: The learning objectives for this session are to receive methods and practices that can help you at your own organizations to retain staff, motivate them and advance their professional careers in research administration.
3We need to move from a “reactive” to “anticipatory” talent management approach AdaptiveBusiness ImpactThis session will focus on both the “who” and the “how” to take to make this shift and will use the recent efforts of Cedars Sinai Medical as an illustrative exampleNOTE: this is a reproduced version of the graphic shown in the “how leadership must change…” reportReactiveApproach to Talent Management
4Voluntary Separation Rate So that we may reduce Voluntary Separation RatesVoluntary Separation RateIndustryBottom QuartileTop QuartileDifferencePublic Sector4.50%11.70%160%Engineering/ Manufacturing5.70%12.70%123%Services8.40%18.40%119%IT & Electronics7.30%15.00%105%Pharmaceutical6.20%12.60%103%Other Finance10.70%21.40%100%Telecommunications7.60%14.90%96%Utilities3.60%6.70%86%Insurance8.00%13.50%69%Banking16.40%25.50%55%Healthcare9.10%13.60%49%
5This shift requires Leadership engagement to: Disrupt traditional staffing hierarchy if this will improve agilityCommunicate vision and research needs to staff in a consistent mannerAssess current talent management efforts and metrics“Talent can be an organization’s greatest asset or liability. The good news is that whether it is the former or the latter is entirely within management’s control.” From “How Leadership Must Change….” report
6Talent management should be assessed across these 4 areas AcquisitionDevelopmentRewardRetentionAre we hiring the right skill sets for the tasks needed?Where are we hiring from?Are we getting our first choice hires?Are we investing in our top performers?Are we investing in “pivotal” staff that could become top performers?Are we motivating staff by rewarding success?Are we rewarding success in a meaningful and cost-efficient way?Are we retaining our most valuable staff?If not: where are they going and why?NOTE: 4 categories pulled from “Creating an Agile Workforce” report. Questions are derived from all readings provided- the “Pivotal “ language is from the Saratoga “Improving Retention” report
7Potential metrics and US cross-industry benchmarks AcquisitionDevelopmentRewardRetentionRehire %7.7% (3.7% %)Referral hiring %20.4% (11.5% %)Internal management hiring %50.0% (40.7% %)Offer acceptance rate91% (87.6% %)Improved performance rating index21.2% (14.1% %)Executive stability ratio82.2% (65.2% - 90%)Average tenure in current management 4.5 yrs ( yrs)One or more candidate succession planning depth61.3% (45.8% %)Average time to promotion36 mos (21 – 50 mos)Career path ratio52.9% (35.6% %)Variable compensation %15.6% (9% - 22%)One to three years of service voluntary separation rate15.1% (9.9% - 22%)Cost of voluntary turnover$42,830 ($26,290-$58,195)High performer separation rate5.7% (3.7% - 9.4%)NOTE: This may be too detailed- included in case its of use or could serve as an appendix. Indicators and benchmarks are pulled from “Creating an Agile Workforce Report” Searched for more recent benchmarking figures but did not find.Additional details on indicators: For Development: Improved Performance rating index is % of employees who received improved performance ratings compared to the previous year and could be used alongside decreased/consistent rating indexes.Executive Stability ratio is Percent of executives with three or more years of service. One or More Candidate Succession Planning Depth: Percent of key roles that have asuccession pool of one or two unique candidates.For Reward: Career Path Ratio: is the percent of employee movement (transfers and promotions) within an organization that is upward (promotions)Retention: One to three years of service voluntary separation rate- % of headcount with 1-3 years of service that voluntarily left the org. Cost of voluntary turnover: ave cost to the org to replace each employee who voluntarily separates. High performer separation rate: % of high-performer headcount that voluntarily or involuntarily left the organization
8Turnover rate is a key performance indicator According to PwC’s US Human Capital Effectiveness Report:Turnover rates have increased across the US. As unemployment rates decrease, so have voluntary turnover rates, particularly among high performing staffNOTE: Observations from the latest Saratoga report (attached in my ). Two other takeaways are shown on slide 9. I omitted the other two take-aways:Return on Workforce investment has diminished, and babyboomer retirement remains an issue as I didn’t feel they added to this particular presentation- but happy to add those in if you feel it is appropriate to show the entirety of the findings.
9High turnover is damaging and costly due to: Lost productivity during a vacancyDiminished productivity of the team and managers who are covering for a vacant positionDiminished productivity of the team and managers who are training the new hireIncreased labor costs due to overtime or contractors needsHiring and onboarding costsMore difficult to quantify impacts may include- decreased customer satisfaction, increased future turnover and loss of institutional knowledge.NOTES: List and costs stats come from “Improving Retention” Saratoga report- stat is from p1 (2007)Combined, these turnover-related costs can represent % - 40% of pre-tax income
10But there is hopeAccording to PwC’s US Human Capital Effectiveness Report:Quality of new hires has improved over the past five yearsInvestment in Human Resources has increasedIf we hone the acquisition process and invest in employee development and reward programs, this can reduce the money and time lost to turnoverNOTES: see notes for slide 7
11How did this work at Cedars Sinai Medical Center?
12Recruiting environment Once you find them how do you keep them BackgroundRecruiting environmentMaking the right hireOnce you find them how do you keep themCareer PathsInvestmentsIncentivesPrograms
13Cedars Sinai Medical Center Research BackgroundResearch has dramatically increased over the past 5 years with resources staying the sameMajor recruiting of new PI and Research areas as targetsDepartment outsources for 5 years from 07 to 12 (BearingPoint/Attain)New management team 1 Director and 5 managersStaff turnover: Of original 40 people only 6 remain from that staff.Employee survey scores (1-5, 5 being best) on how management is doing went from 3.19 to 4.5 in last 4 years
14(Commutes over an 1hr each way) Recruiting EnvironmentLA Traffic(Commutes over an 1hr each way)Small pool of potential candidates (Define locally)(UCLA, USC, John Wayne, Childrens, Loyola Marymount Caltech, City of Hope, Kaiser SC, CS Long Beach)Average time to hire single employee 4-6 monthsCan’t afford mistakesApplicants don’t have all the skill sets of institutionRequire training large investmentThis is why Retention is so important !
16Better assessment of talent Finding a good FitBetter assessment of talentQuestion prepared in advanceTeam interviewing approachTemp to Hire optionsCandidates meet with various teams and levels to derive fit
18Demonstrating career development opportunities is an important way to improve quality while motivating staffA 2008 PwC survey found that lack of career development was a more important factor in turnover among pivotal employees than compensation.When resources are limited, career development initiatives help to groom current staff and can help to offset high external hiring costsNOTES: Source is PricewaterhouseCoopers, Managing Tomorrow’s People,Millennials at work–perspectives from a new generation,future-of-work/millennials-survey.jhtml
19Career Development Established clear job ladders Provide opportunities to develop new skills:PresentationsTrainingProjects( Re-Engineering, Manuals, Automation)System enhancementAnalyticsProgramsHired junior staff in as admin staff then placed them in various rolesGrant OfficerPeopleSoft TrainerPeopleSoft Setup teamLook for self motivated individuals
20Team-Based Learning (TBL) is an invaluable training approach TBL is an efficient, cost-effective learning approach used by leading teaching hospitals as a critical learning tool.70 % of learning occurs in the course of day-to-day work, with the balance achieved through informal learning and coaching (20 %) and formal instruction (10 %).Research supports the power of teams, which can cut staff turnover while enhancing production cycles, quality, individual performance, and attendanceNOTES: From “Point of View: Team Based Learning” ReportTBL facilitates improved collaboration and can replace some individual formal instruction to strengthen training while reducing costs
21Training Investments Systems Career Orientation PeopleSoft (9.1, latest features)Oracle OBIEECareerSupervisor 101Professional seminars (NCURA, SRA)Toastmasters offeredInternal trainingOrientationOnline coursesDetailed training manualsGroup orientationMentor assigned
23Rewards should be customized to your employees To figure out the right mix of incentives, executives need to first determine what motivates their top performers and other key employees.Well-designed employee engagement surveys can help to determine thisNumerous studies have found a correlation between high levels of employee engagement and corporate performance, especially in the area of customer satisfaction.NOTES: language pulled from “Point of View: Keeping your Top Talent”Not all rewards must be monetary in order to be meaningful
24Once you have them treat them with respect Work life balanceFlex ( 9/80)Work from homeManagement PhilosophyOpen doorMentoringTeam BuildingFund raising togetherPick 2 charities a year (Xmas and other to support)RetreatsManager meetingsTeam meetingsPot lucks
25Compensation Incentives We have completed a market assessment on positions to keep jobs in lineUtilize Spot Bonus program up to $1,300 a yearStanding Ovations, President award nominations
26Regional and National Lead Me involvement ProgramsRegional and National Lead Me involvementManagement Supervisor 101 trainingMentoringNew Employee partneringGoal settingThis slide would flow well after the training slide- and the PWC learnings slide that introduces TBL- as there are some good examples of team-based learning through mentoring- and on-the-job training here.
28Employee satisfaction scores show dramatic improvement 3.19 to 4.5 SummaryEmployee satisfaction scores show dramatic improvement 3.19 to 4.5People didn’t want to be hereCost us large investment $Management philosophy needed to changeEmployees have a say in their future and get help getting thereTurnover has become a non- issueMaking better hiring decision matching positions to careersProvide opportunities for everyone to grow and stay fresh
29Final Thoughts Move a way from traditional staffing models Constantly be assessing your current talentInvest in not only your top performers but rising starsAre you motivating and rewarding in a planned wayAre you retaining key players