The Leading from the Heart Workshop ®

4.5 percent

warning: ON MARCH 31, 2007, THE JOB OPENINGS RATE WAS 2.9 PERCENT, OR 4.2 MILLION JOB OPENINGS Source: Bureau of Labor Statistics

Fact In the war for talent, everyone is fighting over your best employees.

What talent war? 17-21= -4

WAKE UP T h i s i s y o u r c a l l

Professional and business services will grow twice as fast as the overall economy. Source: Bureau of Labor Statistics

About half of Human Resource professionals say they are seeing new workers entering the workforce lacking overall professionalism, written communication skills, analytical skills, or business knowledge. SHRM: 2005 Future of the U.S. Labor Pool Survey Report

By 2012, one out of five workers will be fifty-five years old or older. Source: Bureau of Labor Statistics

“The Baby Boom is de-booming and soon there will be many more jobs than people available to fill them.” “Why Retention Should Become a Core Strategy Now” Harvard Management Update, October 2003

“It may be time to reconsider the ‘they have no place else to go’ strategy of employee retention.” “Why Retention Should Become a Core Strategy Now” Harvard Management Update, October 2003

People join an organization. They leave a manager.

Old Interview Interviewer: “Tell me why I should hire you.” New Interview Candidate: “Tell me why I should come work for your company.”

Basic Worker Benefits (negotiable)  Salary plus Incentive Pay  Paid Holidays and Vacations  Long-Term Retirement Savings Plan  Employee Educational Assistance  Medical and Hospitalization Insurance with Dental and Vision options  Salary Continuation Plan (Sick Leave, Long-Term Disability Insurance)

Premium Worker Benefits (old tie- breakers)  Fitness Center  Cafés with Healthful Meals  Take-home Catering  In-house Day Care  Scholarships for Family Members  Adoption Expense Assistance  On-site Dry Cleaning, Shoe Repair, Photo Processing, Libraries

Values-Based Worker Benefits (new tie- breakers)  Cultural Diversity  Shared Authority and Self-Managed Work Teams  Paid Time Off for Volunteerism  Flex Time or Job Sharing for Work / Life Balance  Maternity, Paternity, and Adoption Leave of Absence  Career Planning and Job Coaching

generations all When selecting employers, job candidates from are focusing less on the financial rewards and more on the values rewards.

1. Make love, not war.Done. 2. Make more money than Done. our parents did. 3. Make a difference In progress. (make amends for #2). The Boomer Agenda

Whereas the Industrial Revolution drew fathers outside the home to work, Gen Xers probably grew up in households in which both parents held jobs. HOME ALON e

“The money’s good. But won’t you just downsize me, too?” HOME ALON e 2 The Netter Paradox

Employees connect with leaders whose stated values are in alignment with the organization’s and, thus, their own.

Consistency between an organization’s stated values and its leaders’ actual behavior is critical to credibility.

When there is between what leaders say and what they do, employees immediately and rightly recognize those leaders as frauds. discrepancy

“You will be confronted with questions every day that test your morals. Think carefully, and for your sake, do the right thing, not the easy thing.” - Commencement Speaker to the St. Anselm College Class of 2002

“Ex-Tyco Chief Executive Kozlowski Sentenced to 8 to 25 Years” Headline / Bloomberg.com /

Strong Fundamental Values “We must demand of ourselves and of each other the highest standards of individual and corporate integrity. We safeguard company assets. We comply with all company policies and laws.” Source: The Tyco Guide to Ethical Conduct

“We safeguard company assets.” Regency mahogany bookcase, c. 1810, $105,000 George I walnut arabesque tallcase clock, $113,750 Custom queen bed skirt, $4,995 Custom pillow, $2,665 Ascherberg grand piano, c. 1895, $77,000 Chandelier, Painted Iron, c. 1930, $32,500 Pair of Italian armchairs, c. 1780, $64,278 Persian rug, 20 feet by 14 feet, $191,250

“In corporate America, crime pays. Handsomely. Grotesquely, even.” Arianna Huffington Pigs at the Trough

“Ebbers’ luck runs out in sweeping victory for feds” Headline / USA TODAY / March 16, 2005

I said, “Ship the documents to the feds.” She heard, “Rip the documents to shreds.”

Enron Who? Most recent business scandals involved CEOs that you had never heard of, at companies that you had barely heard of.

“Dunn and Four Others Named in Criminal Complaint in HP Spy Scandal” Headline / PC World /

“Apple CEO Steve Jobs drawn into stock options scandal” Headline / MacDailyNews / August 15, 2006

ONLY HALF, ONE OUT OF TWO, U.S. EMPLOYEES TRUST THEIR SENIOR LEADERS. DO YOURS TRUST YOU? Source: Watson Wyatt’s WorkUSA 2006/2007 Survey 49%

“With fewer than half of employees expressing confidence in senior management, no company has been left untouched by the fallout from recent turmoil in the business environment.” -Ilene Gochman, Ph.D., Watson Wyatt

Used-car salesperson… slick Politician… dishonest Personal injury lawyer… greedy Insurance agent… pesky Postal worker… postal

Business leader… justice-obstructing, debt-hiding, earnings-overstating thief who uses company funds to purchase personal artwork and to put on lavish birthday parties for family members

But, I’m not the CEO.

“Ethics is never a business issue or a social issue or a political issue. It is always John C. Maxwell, There’s No Such Thing as “Business” Ethics a personal issue.”

“We believe that our organization’s greatest asset is its staff. We encourage and support professional development activities that meet the goals of the organization. We take personal responsibility, are accountable, and embrace a set of values that guide our daily actions.”

OBSERVINGANDINTERPRETING Soon after they are hired, employees start looking for mutual expectations—which of their own interests are consistent with the values of the organization.

a l i g n m e n t Once they feel aligned, individuals can start envisioning their place in supporting the organization’s success.

But if they sense they’ve been duped, employees withdraw, become defensive and cynical, start gossiping, and begin causing trouble.

The mission statement is “not a trophy that decorates office walls, but an organic body of beliefs and a foundation of guiding principles we hold in common.” Howard Schultz, founder of Starbucks

“Employees are assets with feet. They’re the only resource companies have that make a conscious decision to return the next day.” Press Release, Walker Information

Source: Walker Information - Commitment In The Workplace: The 2003 National Employee Benchmark Study Workers who believe their organizations act with integrity are nine times more likely to stay in their current jobs.

Source: Walker Information - Commitment In The Workplace: The 2003 National Employee Benchmark Study But when they mistrust their bosses, or are ashamed of their organization’s conduct, workers say they are likely to leave their jobs soon. 4 out of 5

Eighty-two percent of workers would rather earn less money at an organization with ethical business practices than receive higher pay at a company with questionable ethics. WHY BOTHER? LRN Ethics Study 2006

“Our findings confirm that companies with a commitment to ethical conduct enjoy distinct advantages in the marketplace, including attracting and retaining talent.” Dov Seidman, LRN CEO

RETENTIONMATTERS (Period.)

Employees are searching for leaders with integrity who prove their credibility continuously.

Prove yours!

The Leading from the Heart Workshop ®