Employee Retention
Employee Retention
Employee Retention
Succession Management
and Employee Retention
Questions To Consider...
Creating an organization of
which people want to be a part.
Retention:
What keeps employees
happy?
Current Retention Trends
Speak positively Have an intense desire to be Exert extra effort & are
about the organization a member of the dedicated to doing the very
to co-workers, organization. best job possible to
potential employees contribute to the
and customers. organization’s business
success.
Engagement
Calculating Employee
Engagement
Scores from the following six questions are used to
calculate the engagement score:
Say
I would, without hesitation, highly recommend this organization
to a friend seeking employment.
Given the opportunity, I tell others great things about working
here. Stay
Who has:
No succession planning in place?
Succession planning in place, but not sure it
is, or will be, successful?
A successful succession planning initiative?
The Traditional Approach to
Succession Planning
Often highly political
Little thought given to what kind
of leaders required in the future
Done secretly
Focus on putting names in boxes
(“replacement”)
Few conversations held
Results of This Approach to
Succession Planning
Strategies become academic and
administrative exercises. Change happens
and rigid plans are not applicable – a
waste of time and money
Little focus spent on the development
of individuals
A Different Way to Think
About Succession Planning
Succession management is a process of
ensuring there are leaders and talent that
can implement the organizational vision
It requires the systematic identification of
those individuals who have the potential
to turn the vision of the organization into
reality
Elements of an Effective
Succession Management
Process*
1.
3.
Individual Career
Group Discussion
Planning and
and Review
Development
2.
Succession
Planning
Analyses
Outplacem
ent
0 3. 5.
6
Performan 0
ce
Identifying High
Potentials
1. 3.6 5.0
High0
Our leadership
J J J J “Talent Pool”
J J
J
Potential
J JJ
J J
J The “bar” is a rating
J
J J J
J J J of 3.6 or above on
potential
J J JJ J
3.6
JJ J J J J J J
J
J
J JJ JJ J Must be at least
competent in each
of the Standards of
J
J J
J J J J JJ 1.0
Leadership
Low High
Performance
Folio Map
President/Sr. VP
Review functional plans & Develops Company level plan
Functional Area/Company Managers
Identifies high potentials across area
Drafts succession plan
Manager
Discussion with employee & functional manager re. development/succession
Employee
Create Development Plans & Performs Leadership Assessment
Succession
Manageme
nt
??
Retention
File it away…
Start having conversations!
Great Leaders
Make A
Great Difference
Leadership Effectiveness
and Turnover
22
20 19
Turnover Percent
18
16
14
14
12
10 9
8
Bottom 10% Middle 80% Top 10%
Leadership Effectiveness
Leadership Effectiveness
and Retention
90
79
Intention to Stay with
80
70
Company (% )
60 51
50
40
30
19
20
10
0
Bottom 10% Middle 80% Top 10%
Leadership Effectiveness
Leadership Effectiveness
and Customer Satisfaction
100
82
Ratings of Customer
80
Satisfaction (%)
60 50
40
21
20
0
Bottom 10% Middle 80% Top 10%
Leadership Effectiveness
Making Leadership
Development Work
Identify, inform and invest heavily in talent
Use 360s to build on strengths
Set extremely high expectations for your
leaders – and measure their results
Make leadership development a long term
process and not an event
Use the succession process as an
opportunity to develop and measure the
leadership potential
Senior Management Role
Responsible for succession process
Approve high potentials, individual
development, leadership development
Determine success measures, next
steps and time frames
Determine management
accountability
Follow-up on actions
Measures
Define up front what you want to
achieve in the broader scope
Then…once succession data gathered,
define specific measures, timing and
accountability. Measure regularly.
Track development of talent, and their
progress, regularly over the long term.
Assign accountability to managers for
progress, assign mentors, reward
Possible Succession
Measures
By ___ 90% of development actions complete
Increase movement of high potentials to other
areas of workplace
Increase employee engagement/satisfaction
By year 20xx, increase high potential leaders by
x%
Over x years, increase high potential retention by
x%
External measures - attract high potentials
Employee Conversations
Actions
Goals and measures
Follow-up, follow-up, follow-up
More Best Practices
(Hewitt)
Senior management lead the charge
Maniacal focus on the best talent
High potentials are carefully identified
Compensation is highly differentiated
Assignments drive high potentials’ growth
Tracking progress is critical
Challenges
Time
Buy-in
Lose sight of big picture –
administrative nightmare
Employee/manager conversations
Cultural biases
Resource issues that arise
Results of
Implementing
Succession
Management
A high-performance culture that
continuously attracts and retains the right
people
Strong leaders who can develop others
Mentors that can provide a legacy
A culture of openness and focus
Results of
Implementing
Succession
Management
No “unspoken agenda” concerning
individuals’ aspirations and potential
Investor confidence – Hay (1988) and
McKinsey (1999) studies link effective SM
to increased ROI and annual return to
shareholders
Keys to Success
Top management must buy-in and be
active participants
Link succession efforts to needs and
strategic objectives of the business
Minimize paperwork and bureaucracy
Make succession and leadership
development a constant preoccupation
Keys to Success
Where should we
start?