Presentation on theme: "1 Total Package & Audits Benchmarking And Surveys Reward Online Payscales Role Profiles and Job Evaluation Performance Management Workflow Talent & Career."— Presentation transcript:
1 Total Package & Audits Benchmarking And Surveys Reward Online Payscales Role Profiles and Job Evaluation Performance Management Workflow Talent & Career Management L.T.I. S.T.I. H.R. and Remuneration Strategy Employee Value Proposition / Retention
23 Value of active construction projects in the Gulf Co-Operation Council Countries
24 Incentives Attraction and Retention Strategy & Policy Strategy & Policy Great Organisations Sustain performance Engage employees Define themselves in the market Effective Individuals Are focused and disciplined Are trustworthy Possess judgement Are proactive Inspired Leaders Engender trust Clarify purpose Unleash talent
25 efinition and ontext “Retain” has two meanings: “to hold or keep in possession” and “to engage the services of” The traditional focus in many HR practices has been to hold or keep rather than to engage a service. High-value employees and hot skills want to be “engaged” and not “kept”.
26 urrent rends urrent rends Turnover increasing exponentially (as high as 23% in some industry sectors) Retention focus shifting from guaranteed remuneration and short term incentives to training and development, recognition and long term incentives Targeted approach still the norm Majority of organisations target the median overall and upper quartile for Hot Skills and High Fliers Performance linked remuneration becoming more popular/increase in formal performance management systems (defensible differentiation)
27 An increasing number of organisations are offering Long Term Incentives to employees below middle management in an attempt to attract or retain them A large number of organisations are paying premiums to various skill categories/job families. Ranges btw 7.5 – 40% (usually dependant on scarcity of skill) Remuneration more effective at retaining Top to Senior Management. Below senior mgmt, recognition and personal development are becoming increasingly important
28 Yet....... Only 28% of organisations in a recent survey including some of the top organisations in SA have a formal retention policy/ strategy in place, the majority of which have only implemented this since 2005
29 HE EFFECTIVENESS OF PAY IN RETAINING TALENT The majority of organisations still use pay as their primary retention vehicle The number one reason in Exit Interviews for employees leaving organisations is “for more money” FLAWED LOGIC
30 etention hallenges etention hallenges 1.Offering individualised retention deals to some while still recognising the “B players” 2.Managers not being able to manage staff (usually due to lack of people skills training) 3.Work-Life-Balance options not always practicable 4.Volatility of employment market (scarce skills) 5.Affordability
31 ew rends ew rends 1.Informal reward and recognition 2.Flexible benefits where appropriate 3.Talent management strategies 4.Sign-on bonuses/loans 5.Work from home policies 6.Succession planning and knowledge sharing policies 7.Tailoring retention options to the employee profiles of the organisation (profile-fit reward models) 8.Above average voluntary benefits to create niche environment
32 ey success factors 1.Involve employees – survey/focus groups 2.Communication, Communication, Communication 3.Holistic approach but focus on “burning platforms” and “quick wins” 4.Identification of Hot Skills needs to be signed off at executive level. Foolproof process 5.Create higher level of understanding w.r.t. value employees receive 6.Detailed Implementation Plan 7.Be seen to be doing something
33 ho should qualify? “Hot skill” positions in the market Turnover – staff attrition Hiring Cycle Attraction and retention strategies often target specific roles within an organisation. This enables organisations to attract and retain key talent critical to the organisational competency.
34 ritical kills ritical kills Critical for an organisation to sustain business objectives Essential for business continuity
35 carce kills carce kills Supply and demand of skill Changes over time
36 igh liers igh liers Identifying consistently outstanding performers Respect of peers in their field
37 In identifying needs, the following questions could serve as a template: What are the hot skills that are critical to the organisation? Who possesses those skills? What is important to the people who have those skills? What is needed to continuously develop and transfer those skills?
38urnover Southern Africa norm is around 13% (UK -18% / US – 11%) Engineering 23% Professional Services 18% High turnover – usually a targeted approach
39urnover High turnover – usually a targeted approach 2%
40 iring ycle iring ycle Good indicator of attraction and retention requirements 72 to 87 days for hot skills Remove roadblocks if longer
41 ompetitive emuneration ompetitive emuneration Ticket to the game and to get on the playing field Remuneration policy quartile? Must be market-related to prevent it from becoming a dissatisfier Anecdotal remarks like “better pay elsewhere” can be factually dealt with REMEMBER Obviously, paying competitive rates is critical, but simply throwing money at the problem will not make it go away in the long term.
42lexibility Ranking by age group 18 – 2930 – 4445 – 5455 or older Base salary1212 Variable pay2446 Shares3565 Medical aid5153 Retirement funding6631 Deferred compensation4324
43 emuneration ptions emuneration ptions Market Stance Hot skills treatment Restraint of trade payments Sign-on bonuses/Retention bonuses Sign-on loans Extended pension arrangements Flexibility Short-term incentives Long-term incentives Deferred compensation Rolling or banking of incentives earned
44 lternatives to cash Alternative (flexible) working arrangements Compressed work week Flexi-time Job sharing Part-time work Flexi-place Sabbatical Leave Voluntary benefits Psychological Contracts
48 The focus in retention strategies has shifted from a one-size-fits-all to customisation. Each employee is motivated by different factors. Therefore, retention strategies must be targeted to individual employees or groups of employees
49 THANK YOU THANK YOU for this opportunity to be with you