Retention Engagement Version 4 1209333909855133 8

Human Capital – Performance & Rewards
Ernst & Young Romania
1 December 7, 202
1
Employee Engagement
2
Retaining Employees – Business Impact
• Taco Bell – Top 20% employee-retention stores had

double the sales and were 55% more profitable than
bottom 20% employee-retention stores.
• Marriott -10% reduction in turnover leads to $50-$100
million increase in revenue.
• 1 % reduction in attrition for IBM global services India
resulted in a saving of 1 mil $ per annum.
3
Key Principles of Retention
Retention is fundamentally linked to engagement

A few leaders/managers drive most of attrition
Its important to focus on Stars & Solid Contributors
4
Employee Engagement & Retention are directly related to
each other – IT Company
tion
st ra
Illu
Employee Satisfaction Attrition %age

35%
80%
70% 30%
78% 32,81%
60% 25%
50% 20%
40% 19,91%
45% 15%
30%
10%
20%
5%
10%
0% 0%
2005-06 2006-07 2005-06 2006-07
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A few Leaders/Managers drive most of Attrition
 “People leave managers, not companies . . . If you have a turnover problem,

look first to your managers.”
First, Break All The Rules, By Marcus Buckingham & Curt Coffman
 “When job opportunities are plentiful, people with crummy bosses leave.”
From Hidden Value: How Great Companies Achieve Extraordinary
Results With Ordinary People by Charles O’Reilly III
 80% of employees view their company and their supervisor the same way.
University of Michigan
6
Talent Watch Survey Data Indicates:
• Join companies for: • Leave Companies for:

– Organization Factors: pay, – Leader factors: Trustworthy,
benefits, reputation Coach, Flexible
– Job factors: Schedule, – Job factors: Schedule,
Challenge, Learning Challenge, Learning
– Leader factors: Trustworthy, – Organization factors: Pay,
Coach, Flexible Benefits, Reputation
7
Important to focus on Stars & Solid Contributors
 Invest heavily in the stars (top 20-25 %)

 Identify the brightest talents over a period of time
 Give them higher responsibilities and higher variable paybacks
 Be conscious of not disturbing the solid contributors
 Grow the solidly contributing players ( 70% of the organization)

 They are the operational arms of the organization and its conscience in times of change
 Recognize and consult them
 Coach them on their development areas.
 Pay them well for their contributions
 Act decisively on the “disaffected marginal performers” ( bottom 5-10%)

 They make bad bosses & poor role models and tend to attract other sub standard
performers
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What can we do about Engagement & Retention
• Engagement & Retention Diagnostics

• Action Steps to improve Engagement & Retention
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Engagement Diagnostics
• Engaged employees will :

– Communicate: Consistently speak positively about the organization
– Consult & Coach: Look at solutions & work with others to tackle it
– Commit: Make extra effort and have an intense desire to stay
• Typical Surveys focus on Leadership & People Policies
• Types of Engagement Analysis based on Employee Satisfaction
Survey:
– Overall Satisfaction & Correlation with past data
– Analysis by Experience, Level, Education, Age, Sex
– Analysis by Function/Department; Supervisor/Leader
10
Retention Diagnostics
• Institutionalizing Attrition Analysis - Tools Used

– Exit analysis for all associates
– Attrition Analysis Framework for Organization Data
• Types of data analysis

– Voluntary/Managed Attrition
– Skill Wise Attrition
– Experience wise, Level wise attrition
– Band and gender analysis
– Root cause analysis
11
Actions to improve Engagement & Retention
• Communicate business direction & leadership expectations to employees regularly

& ask for feedback
• Market driven Compensation revisions targeted at employee groups with high
attrition levels (example employees with 2-6 years experience)
• Innovative long term incentives & retention programs
• Focus on career programs, job rotations & secondments
• Transparent, business driven & consistent implementation of perf. appraisal &
annual awards linked to the appraisal programme
• Attrition & employee satisfaction figures indexed to leaders & retention
/engagement of employees given 20-30% of weightage in their performance
appraisal
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Actions to improve Engagement & Retention (Contd.)
• Personnel policies simplified & communicated to all employees specially new

employees;
• Improve induction/orientation programme for new hires
• Improve flexible working and mobility specially for working mothers
• Organize and track focus groups, 1-1 meetings and informal get-togethers
• Restructuring of the HR function to focus and measure responsiveness to
resourcing, retention/engagement and transaction needs of the organization
13
Human Capital Services
• HR Infrastructure for Start-up Companies – Quick & effective start of

business (Compensation, Recruitment, Labor compliance, Establishing the HR
Function/HR Outsourcing)
• HR Due Diligence & Merger Integration – Managing Human Capital
integration Risks (Due Diligence, Day 1 Readiness, Post Merger Integration)
• Total Rewards – Designing & Implementing Reward Prog. (Comp. Surveys,
Performance Mgmt., Variable Pay Design & Implementation)
• Talent Management – Attracting, engaging and retaining talent (Diagnostics &
Action Plans for Attracting, Engaging & Retaining Talent)
• Aligning People Strategy to Business – Improving focus & effectiveness of
HR (HR Diagnostics & Restructuring/Enablement of HR)
• HR Outsourcing – Building scale & reducing costs in HR administration
14
Thank You
15

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Human Capital – Performance & Rewards

Ernst & Young Romania

• Taco Bell – Top 20% employee-retention stores had

Retention is fundamentally linked to engagement

Employee Satisfaction Attrition %age

 “People leave managers, not companies . . . If you have a turnover problem,

• Join companies for: • Leave Companies for:

 Invest heavily in the stars (top 20-25 %)

 Grow the solidly contributing players ( 70% of the organization)

 Act decisively on the “disaffected marginal performers” ( bottom 5-10%)

• Engagement & Retention Diagnostics

• Engaged employees will :

• Institutionalizing Attrition Analysis - Tools Used

• Types of data analysis

• Communicate business direction & leadership expectations to employees regularly

• Personnel policies simplified & communicated to all employees specially new

• HR Infrastructure for Start-up Companies – Quick & effective start of

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