| Kuwait HR Magazine January - March 2002 Back Issues
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Our Second issue of Kuwait HR Magazine is now on the air . The aim is to present useful material to our local and regional specialists and keep them up to date with the latest developments in the field. We try to select articles that cover most of the HR Functions e.g. Recruitment , Compensation & Benefits , Performance management , Training & Development , Manpower Planning as well as HR Information Systems .
The Magazine For Middle East
Human Resources Professionals
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1. Moving Kuwaiti manpower to the Private Sector ..
Employers vs job Seekers expectations gap
By : Redha Tawakkuli - Human Resources Consultant
January 2002 - Kuwait City
The new Kuwaiti manpower encouragement law is in effect starting May 2001. The Social Allowance , The Training Cost Coverage , The Unemployment Support and the Advertisement for job openings guidelines have been in action. The last policies and guidelines related to setting quotas per sector is in the process and expected to be approved by the council of ministers very soon ( early 2002).
Feed back received from people engaged in the implementation indicate Limited Success mainly in the area of moving Kuwaitis to the private sector , which is the main principle of this law. As a specialist in this field having links with both parties ( Government bodies and the Private sector ) we can see the following Gap between the two sides ( Job Seekers and Employers):
Employers Concerns :
Employees Concerns :
Government (Civil Service) Employment Policies that would make the difference:
What is adding to these concerns, are civil service employment policies in the government sector. The long lists of Kuwaiti nominees announced in the local papers will give no motive to even interested job seekers to try the private sector. personally i had the opportunity to talk to many of them . They all wish to accept the government offer even though it does not fulfill their needs . Even the recent Decision by the council of ministers ( to move the applied technology diploma holders to the military and private sectors ) have been violated by some ministries for political reasons.
The recent decision by civil service commission which allows registered job seekers to try the private sectors for 3 months without loosing their rights and turn in the government , might provide marginal solution to this situation.
Personally , we do not forecast any major break through in the move of Kuwaitis to the private sector without a clear and firm policy of not hiring Kuwaitis by the government if the skills are demanded by the private sector. It is the role of "Manpower Restructuring Program" to trace these needs and regulate policies forcing Kuwaitis to try the private sector or stay without government job.
The urgent need for labor protection regulations :
The current labor law is tailored to suite the needs of non Kuwaiti staff employment in the private sector. It does not provide any conditions for terminating employee services . No guidelines are in place to govern the conditions and reasons for staff termination or service ending. In most of the cases the reason is personal or a small dispute between the employee and his boss.
So far the Arbitration process does not exist in Kuwait. There are limited legal channels to use in major labor dispute cases only. The "thank you and good bye" cases with maximum 15 days notice is still dominating in the market.
If the government would like to create a positive transition to the private sector , then the firing decision should be made with rationale . Eliminating personal reasons with solid work and organizational reasons. I came across the recent Draft law recommended by MP Abdul Aziz Al-Mutawa in December 2001 . Parliament should give priority to this law to be thoroughly studied and implemented as it could really lead to major break through in the labor relationship in the private sector. The content of the Proposed law provides an excellent balance between employee and employer rights and interests.
If you have any comments about the article please feel free to send an email to the Author
2. Cost of Turnover
The following is a comprehensive checklist of items to
include when calculating the cost of turnover in any organization. To determine
the costs, have the hourly and weekly cost of fully loaded payroll costs (i.e.
salary plus benefits) of the vacant position, the management staff, the
recruitment staff and others as outlined below.
It should be noted that the costs of time and lost productivity are no less important or real than the costs associated with paying cash to vendors for services such as advertising or temporary staff. These are all very real costs to the employer.
These calculations will easily reach 150 percent of the employees annual compensation figure. The cost will be significantly higher (200 to 250 percent of annual compensation) for managerial and sales positions.
To put this into perspective, let`s assume the average salary of employees in a given company is $50,000 per year. Taking the cost of turnover at 150 percent of salary, the cost of turnover is then $75,000 per employee who leaves the company. For the mid-sized company of 1,000 employees who has a 10 percent annual rate of turnover, the annual cost of turnover is $7.5 million!
Do you know any CEO who would not want to add $7.5 million to their revenue? And, by the way, most of that figure would be carried over to the profit line as well. What about the company with 10,000 employees? The cost of turnover equals $75 million!
Here is the list:
Costs Due to a Person Leaving
1. Calculate the cost of the person(s) who fills in while the position is vacant. This can be either the cost of a temporary or the cost of existing employees performing the vacant job as well as their own. Include the cost at overtime rates.
2. Calculate the cost of lost productivity at a minimum of 50 percent of the person`s compensation and benefits cost for each week the position is vacant, even if there are people performing the work. Calculate the lost productivity at 100 percent if the position is completely vacant for any period of time.
3. Calculate the cost of conducting an exit interview to include the time of the person conducting the interview, the time of the person leaving, the administrative costs of stopping payroll, benefit deductions, benefit enrollments, COBRA notification and administration, and the cost of the various forms needed to process a resigning employee.
4. Calculate the cost of the manager who has to understand what work remains, and how to cover that work until a replacement is found. Calculate the cost of the manager who conducts their own version of the employee exit interview.
5. Calculate the cost of training your company has invested in this employee who is leaving. Include internal training, external programs and external academic education. Include licenses or certifications the company has helped the employee obtain to do their job effectively.
6. Calculate the impact on departmental productivity because the person is leaving. Who will pick up the work, whose work will suffer, what departmental deadlines will not be met or delivered late. Calculate the cost of department staff discussing their reactions to the vacancy.
7. Calculate the cost of severance and benefits continuation provided to employees who are leaving that are eligible for coverage under these programs.
8. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving is taking with them out of your door. Use a formula of 50 percent of the person`s annual salary for one year of service, increasing each year of service by 10 percent.
9. Calculate the cost impact of unemployment insurance premiums as well as the time spent to prepare for an unemployment hearing, or the cost paid to a third party to handle the unemployment claim process on your behalf.
10. Calculate the cost of loosing customers that the employee is going to take with them, or the amount it will cost you to retain the customers of the sales person, or customer service representative who leaves.
11. Subtract the cost of the person who is leaving for the amount of time the position is vacant.
Recruitment Costs
1. The cost of advertisements (from a $200.00 classified to a $5,000.00 or more display advertisement); agency costs at 20 to 30 percent of annual compensation; employee referral costs of $500.00 - $2,000.00 or more; internet posting costs of $300.00 - $500.00 per listing.
2. The cost of the internal recruiter`s time to understand the position requirements, develop and implement a sourcing strategy, review candidates backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates. This can range from a minimum of 30 hours to over 100 hours per position.
3. Calculate the cost of a recruiter`s assistant who will spend 20 or more hours in basic level review of resumes, developing candidate interview schedules and making any travel arrangements for out of town candidates.
4. The cost of the hiring department (immediate supervisor, next level manager, peers and other people on the selection list) time to review and explain position requirements, review candidates background, conduct interviews, discuss their assessments and select a finalist. Also include their time to do their own sourcing of candidates from networks, contacts and other referrals. This can take upwards of 100 hours of total time.
5. Calculate the administrative cost of handling, processing and responding to the average number of resumes considered for each opening at $1.50 per resume.
6. Calculate the number of hours spend by the internal recruiter interviewing internal candidates along with the cost of those internal candidates to be away from their jobs while interviewing.
7. Calculate the cost of drug screens, educational and criminal background checks and other reference checks, especially if these tasks are outsourced. Don`t forget to calculate the number of times these are done per open position as some companies conduct this process for the final two or three candidates.
8. Calculate the cost of the various candidate pre-employment tests to help assess a candidates skills, abilities, aptitude, attitude, values and behaviors.
Training Costs
1. Calculate the cost of orientation in terms of the new person s salary and the cost of the person who conducts the orientation. Also include the cost of orientation materials.
2. Calculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. Note that the cost will be significantly higher for some positions such as sales representatives and call center agents who require four to six weeks or more of classroom training.
3. Calculate the cost of the person (s) who conduct the training.
4. Calculate the cost of various training materials needed including company or product manuals, computer or other technology equipment used in the delivery of training.
5. Calculate the cost of supervisory time spent in assigning, explaining and reviewing work assignments and output. This represents lost productivity of the supervisor. Consider the amount of time spent at seven hours per week for at least eight weeks.
Lost Productivity Costs
As the new employee is learning the new job, the company policies and practices, etc. they are not fully productive. Use the following guidelines to calculate the cost of this lost productivity:
1. Upon completion of whatever training is provided, the employee is contributing at a 25 percent productivity level for the first two to four weeks. The cost therefore is 75 percent of the new employees full salary during that time period.
2. During weeks five to 12, the employee is contributing at a 50 percent productivity level. The cost is therefore 50 percent of full salary during that time period.
3. During weeks 13 to 20, the employee is contributing at a 75 percent productivity level. The cost is therefore 25 percent of full salary during that time period.
4. Calculate the cost of coworkers and supervisory lost productivity due to their time spent on bringing the new employee "up to speed."
5. Calculate the cost of mistakes the new employee makes during this elongated indoctrination period.
6. Calculate the cost of lost department productivity caused by a departing member of management who is no longer available to guide and direct the remaining staff.
7. Calculate the impact cost on the completion or delivery of a critical project where the departing employee is a key participant.
8. Calculate the cost of reduced productivity of a manager or director who looses a key staff member, such as an assistant, who handled a great deal of routine, administrative tasks that the manager will now have to handle.
New Hire Costs
1. Calculate the cost of bring the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, business cards, internal and external publicity announcements, telephone hookups, cost of establishing e-mail accounts, costs of establishing credit card accounts, or leasing other equipment such as cell phones, automobiles, pagers.
2. Calculate the cost of a manager`s time spent developing trust and building confidence in the new employee s work.
Lost Sales Costs
1. For sales staff, divide the budgeted revenue per sales territory into weekly amounts and multiply that amount for each week the territory is vacant, including training time. Also use the lost productivity calculations above to calculate the lost sales until the sales representative is fully productive. Can also be used for telemarketing and inside sales representatives.
2. For non-sales staff, calculate the revenue per employee by dividing total company revenue by the average number of employees in a given year. Whether an employee contributes directly or indirectly to the generation of revenue, their purpose is to provide some defined set of responsibilities that are necessary to the generation of revenue. Calculate the lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee.
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3. Jumping Around in Your Career If
the corporate marketplace is a jungle, then you can consider yourself Tarzan.
With job transitions and new career prospects, it can become easy to feel like
you are haphazardly swinging from tree to tree. Like any other endeavor, your
job search remains successful as long as you make it from tree-top to tree-top
without any falls. So, what happens when you realize that somewhere in all of
your acrobatics that you have spent a little too much time on the jungle floor
and not enough time in the trees? In almost every person`s life there will come
a time when there are a few missing links in their career. Whether the reason
lies in the desire to travel or the need to take care of a sick child or parent,
potential employers are going to notice a sizable gap in your resume. While some
reasons for an absence from the workforce are more legitimate than others, such
as pregnancy versus hiking the Appalachian Trail, employers will be looking for
an explanation. Use what you learned during your absence to show that you are an
even more valuable employee than you were before your time off. Employers can be
real bears when it comes to gaps in your experience, but with a fool proof
resume and a solid explanation, you can regain your place swinging among the
trees as king of the corporate jungle. Using a Different Kind of Tool. Since you are
reentering the workforce after a leave of absence, rather than just switching
jobs, your resume will need a little fine-tuning. Your battle cry should start
at the top of your resume with a Summary of Qualifications. While this should be
about 5 or 6 sentences, it should be packed full of your skills. It should also
give a quick overview of your skills. The importance of this section is that no
matter how long you have been out of the work force, your skills never go away.
They are a foundation for you to always build upon. The next part of your resume
should be titled Career Highlights. Use keywords related to your profession to
demonstrate personal successes in the field. Your next section should be
Professional Experience. Although you may find it sneaky to de-emphasize dates
in this section, what you are really doing is prompting future employers to ask
you precisely when your last job ended. Resist the urge to leave out dates
completely! If you want to be a real sly jungle cat, be vague. There is a huge
difference between your last job being in December of 1988 and January of 1988.
A year makes a big difference in the eyes of an employer. Usually, providing
years is specific enough-no need to lose 11 months! Focus on skills and
experience, not dates. You should also have an Additional Experience section. No
matter how big or small the experience was, it counts in your favor. If you
chaired a committee at your church or held office in your child`s PTA, both
exude leadership skills. Remember, you do not always have to be at the top of
the tree. You just have to prove that you are willing to climb to get there. Cover Yourself. If you feel that you have not
been able to explain yourself thoroughly in your resume, or that you have a
special situation that needs to be explained, use your cover letter. Your resume
includes your experience and qualifications, so let your cover letter exude
personality and interest. While it should not be a journal of your daily routine
during your time off, it could include a sentence such as, "While caring
for my sick mother, I used this time to take classes in Advertising and
Marketing at XYZ College. I also gained experience by handling all of the
promotions for my daughter's play at her high school." Your cover letter
will be your first impression on a prospective employer, so use it to your
advantage. Be very positive, and sound eager to apply your new skills to a
future position. Your cover letter is a great entrance piece into an interview,
where you can go further in depth as to how your time off was spent. Consider
your cover letter not only as a shield, but also as a tool to secure an
interview. Where Have You Been? Chances are, even the
most seasoned veterans of the marketplace are going to have to answer this
question if there is a time gap in their resume. Keep in mind that you really
are not going to be able to explain much in your resume, given the space
constraints and formal writing style. What you can do is prepare to answer some
key questions in an interview. Always avoid negative comments about past
employers, or discussions of how you spent your time off of work. If you are
asked about your career gap, discuss it openly, but stress the positives of your
time away. If you were caring for a sick relative or raising a family of your
own, stress the work you did do during your time off. If you were a consultant
for anyone, or if you may have written for a publication on the side, mention
what you gained from each experience. Also, make sure to include any education
you might have gained. Whether you took night classes as the community college
or got your MBA, both are vital information to share with a prospective
employee. Most of all, it is important to portray that you did not merely rest
on your laurels during your absence. Present your time off as a period in which you're
grouped and learned in order to become the best tree swinger possible upon
your reemergence into the jungle. Getting back into the swing of things can be
tough after an extended period of absence; however, like swinging on a vine,
once you learn the skills of a profession, you never forget how to use them.
With a highly functional resume prefaced by a skillfully crafted cover letter,
any employer will be able to see your agility as an employee. If you are willing
to put a little effort into getting back on top of the corporate jungle, it is
almost a guarantee that you will secure a position that would make even Tarzan
want to beat his chest.
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4. Women Who Ride the T-Rex :
Much has been written about the high numbers
of women-some 30 percent-who drop out of the corporate game, selecting themselves
out of the management track and choosing part-time or entrepreneurial work. This
book is for the other 70 percent of women managers who want to win, who love the
power and complexity of big business, and who dream about finding and climbing
through the windows in the glass ceiling. It is also for the millions of women
who want to make the next strategic move in their career or who simply want to
know what it takes to make it to the highest corporate levels-so they can
evaluate whether they have the desire and the personal and professional
skills to make it.
No book could present the ideal formula, the
perfect combination of abilities, behaviors, and decisions that will guarantee
your advancement to the top executive tier. Every individual, every company is
different. What this book will do is point out the commonalities that 200 of America's
highest-level executive women share and the advice they want to impart
to those coming up behind them. You will be able to use their insights to plan
your ideal career at whatever level is right for you.
Who Are T-Rex Women?
The women in this book are courageous,
adventurous, and strong. They are able to stay atop some of the most powerful
corporations in the world. They are among the pioneers. They are part of the
first significant wave of professional women to take their place in the executive
suites of major corporations. With an average of twenty years` experience behind
them, this small vanguard, now mainly in their mid-forties to mid-fifties, are
in many cases the first and only women who have ever reached the senior levels of
their corporations.
They are women like Carlene Ellis, a Vice
President at Intel Corporation. In her early fifties, Carlene is decisive,
direct, and candid. When I first met her, she was dressed casually in slacks and
a tailored cotton blouse, her graying blond hair carefully coiffed, a navy blazer
draped neatly over the back of her chair. Seated behind the desk in a minimalist
ten-by-fifteen cubicle (all Intel employees, even executives, have cubicles),
decorated only with a laptop and table and chair for visitors, she seemed bright,
challenging-a forward thinker. At any given moment during our conversation, she
was two thoughts ahead of me.
The desire to win motivates Ellis every day.
"I want to be the person making the decisions," she told me
matter-of-factly, "and I love the challenge of meeting seemingly impossible
goals. Running this organization," she added, "is not at all like
riding a tiger. It`s more like riding a T-Rex. You can`t control it, but you try
to stay on top of it and guide it in the right direction. The thrill for me is to
try to keep the organization disciplined, creative, and ahead of the curve."
I like that analogy. Corporations, like the
Tyrannosaurus rex, can be fierce, unpredictable, unwieldy, lumbering, archaic,
commanding, and not easily understood. They are often difficult to get one's arms
around-and it's a tough climb to the top. Like never before, some of the largest
corporations are even faced with extinction-through acquisition, deregulation, or
changing technological, economic, or consumer trends. Yet the women who have made
it into the highest executive ranks seek out and relish the challenge. They even
revel in it.
Liz Fetter, former senior executive at
Pacific Telesis, SBC, and US West Communications, and now President and Chief
Operating Officer of North Point Communications, is such a woman. In her late
thirties, Liz sat in a beautiful corner office, chicly dressed in a designer suit
and scarf when I first met her, and she exuded femininity. But she was also
direct, thoughtful, assertive. I could sense that she valued protocol and enjoyed
the power and prestige of her position. Liz has been motivated by her desire to
influence results on a large scale. "I love to lead," she
declared, "and I love to win. I work like a dog. I am very clear about what
I want to do, and I do what it takes to fulfill my ambitions. To make it, you
really have to know yourself, the system, and the game you`re playing."
Anne McNamara, General Counsel of American
Airlines; Karen Elliott House, President of International for Dow Jones/Wall
Street Journal; Linda Keene, Vice President of Market Development at American
Express; Ellen Gordon, President of Tootsie Roll Industries; Terri Dial,
President of Wells Fargo Bank-these are all women who have found a way to achieve
the highest levels of success. Their successes have been celebrated and studied.
They have been singled out as curiosities, and praised and criticized for
storming the barricades of a man`s world. And standing right behind them,
emerging from their shadow, is the next generation: thousands, perhaps
millions of women just like you who are crowding the mid-management ranks of
corporations and thinking about their next move.
In the 1960s, fewer than 30 percent of
college women believed that they would be working at age thirty. Perhaps this is
partially attributable to the fact that women were denied access to the nation`s
most prestigious undergraduate programs-Harvard did not admit female students
until 1963, Yale until 1969, and Columbia until 1983.(Although it`s true that
women`s colleges developed many professional pioneers, their alumni networks were
not as powerful as those emanating from the men`s colleges because they had few
graduates in the upper echelons of business.) But today, women earn more than35
percent of MBAs and more than 42 percent of law degrees (that`s up from 3.6 and
5.4percent, respectively, in 1970), many from Ivy League institutions that were
closed to them as recently as thirty or forty years ago. Their overwhelming
numbers are dramatically changing the face of corporations. Women now make up
48.9 percent of all managerial and professional jobs-fully double the percentage
they held two decades ago.
Common sense dictates that, in time, many
women should make it to the top of the corporate pyramid-the prized corner
offices of CEO, chairman, president, and other top executives. The plain fact is,
however, that only a handful has leaped from mid-management to the highest
corporate levels. In 1997, merely 3 percent of top executives in America`s 500
largest companies were women.
Does this mean that there is still a glass
ceiling? Many mid-level women believe that it exists because they feel they`ve
hit it, and they`re struggling to get through. However, most of the senior
executive women with whom I`ve spoken don`t believe there is a glass ceiling
because they never encountered it! That`s not to say that there weren`t obstacles
in their way or behaviors they had to learn. Although progress for women at the
upper echelons of the corporate world is still slow, I too am beginning to see
that today the glass ceiling is no longer the impenetrable barrier it once was-abarrier
that had to be shattered by law or custom. In reality, it has a few windows
through which an increasing number of female executives like Carlene
Ellis and Liz Fette rare making their way to the top.
In this book you will learn about the common
characteristics, behaviors, and experiences of these outstanding women. In their
own words, they will tell you what helped them succeed and which pitfalls you
would be wise to avoid. They will provide you with a composite role model and a
road map for your own corporate climb.
The top executive women whom you will meet in
these pages are all enthusiastic about sharing their insights and experiences.
All of them know from personal experience how very difficult it is for women to
make their way through the corporate labyrinth. Now they want to share their
knowledge with those coming up behind them. Most agree with Gale Duff-Bloom,
President of Company Communications and Corporate Image at J.C. Penney, who told
me, "Women need courage and support to go for the top jobs. We need to help
empower other corporate women-to influence their success and give them the
confidence and tools it will take for them to be leaders."
5. Build a Better Relationship with Your Manager
"The quality of the manager-employee
relationship is a critical feature of the workplace environment for an employee.
The lack of trust was an issue with almost every person who had left an
organization."
Managers are the pivotal factor that
determines whether people stay in organization or leave, according to a recent
survey by Mastery Works, Inc. (Annandale, Va.). The survey of 500 professionals
found that while pay and benefits sometimes surface during exit interviews as
the reason for leaving an organization, these were not the primary motivation
for over 95 percent of those questioned. The key issue was whether or not they
were able to develop a trusting relationship with their manager.
This is not to say that if this relationship
is not a good one, or not as good as you would like, moving on is the only
choice. Employees can do a lot to help build a strong and trusting relationship
with their manager.
Take the Initiative. Employees should not
wait for their manager to take responsibility for building the relationship -
they must take it themselves. They need to be clear about what they are looking
for, and communicate that to their manager. Whether it`s a problem with the job
or with the relationship, employees have to be proactive.
Know Your Boss. Employees must get to know
and understand their manager at a deep level. They need to know what`s important
to them and what motivates them. And, employees must know how to make their
managers look good - not in a brown-nosing way, but by understanding their most
cherished goals and helping to achieve them.
Keep Commitments. Most managers are under the
gun to deliver, and they need to know that employees are going to carry their
load - they may not be too trusting until they are convinced. Keeping one`s
commitments, therefore, is essential to building a better relationship with your
manager.
Take Care of Business. Employees need to take
care of themselves, but they also need to take care of business. They must know
the company`s mission and strategies. They need to talk to their manger and find
out how they can contribute more.
Know When to Fold and When to Hold. If
employees do their best, make recommendations, make offers, and still get no
hearing over time, then it`s not going to work. Everyone knows in their gut if
someone is disrespecting them, doesn`t care, or is out to get them. Eventually,
we must pay attention to these feelings, and move on.
Still, most of the time, the relationship is
salvageable, and employees can continue to grow with their current organization
rather than start over someplace else.
6. Coaching the
Under-Performing Manager
While businesses contend with scarcer resources, tighter deadlines, smarter
competitors and more demanding stakeholders, managers are responsible for
more work and people than ever. They are also expected to be goal setters,
strategists, tacticians, team builders, organizational cheerleaders, diplomats,
exemplars and more. To be effective, today's managers must be much more skilled
than their predecessors.
Unfortunately, many who were viewed as successful in the past, may not possess
the competencies necessary to make it in today's complex work environment. Some
of these individuals are made of "good stuff," despite specific--often
serious--performance shortfalls. Though they may not be functioning as well as
they should, they could be hard workers and longtime employees, who possess not
only tremendous industry expertise but a wealth of knowledge about their
organization,
its people and its culture. They are often employees who "grew up"
under one set of expectations; but when the rules changed, they found themselves
in trouble.
A second group of under-performers is composed of newcomers to the role of
manager. These are individuals who may have made their mark with excellent
technical skills or who may have risen up through the supervisory ranks. Now,
they are struggling with an entirely new set of pressures, personalities and
expectations.
With some timely and skillful coaching, individuals in both these groups can
grow into top-notch organizational performers. Done well, coaching can
raise the competency levels of almost any manager.
When coaching for performance, following are some important points to consider:
The goal of coaching is to increase skill and modify behavior, not transform
personality. Coaching is not psychotherapy, so don't expect a miraculous shift
in a manager's basic character or you will set yourself up for disappointment.
Your concern should be the behaviors in the workplace that impede the
individual's ability to do the job effectively. Serious personal problems (e.g.,
depression, substance abuse, etc.) are outside the scope of coaching and require
appropriate professional assistance.
Unless someone really wants to change, no amount of coaching will be able to
make a difference in their performance. You can only show the way and offer the
resources. The commitment and motivation to change are the responsibility of the
manager.
No one likes to hear their performance is below par, so always afford the
coaching candidate support and respect. Under-performing managers can be
difficult, defensive, controlling or abrasive - which may be what got them into
trouble in the first place. The coach's job is to identify these behaviors in a
firm, matter-of-fact way, and offer alternatives. Become defensive or negative
in return, and you lose all credibility. Being supportive, but confrontative, is
what it takes.
Make sure the problem is really the manager, not his boss or a dysfunctional
system. You won't understand the problem unless you understand the work context.
Unreasonable bosses or impossible working conditions are situations coaching
will not alter. Make sure you are aware of them before trying to "fix"
a manager who may be reacting to an untenable environment.
Get as clear a picture as possible of the manager's performance problems,
ideally using 360 Degree feedback data from peers, superiors, direct reports,
etc. Information from past performance reviews may be helpful, if they have been
candid and accurate. Anecdotal information from key people in the workplace,
while difficult to objectify, can offer concrete examples of problem behaviors
and the situations in which they may be triggered.
Be certain that both manager and sponsor (usually the boss) understand the
results of your findings and help design an action plan. This plan should
specify what must change, how it is to be accomplished and measured, what will
constitute success, and within what time frame change must occur. This is also
the time to consider available alternatives if coaching does not produce the
desired result.
Understand the individual's shortcomings and strengths, then mobilize the
strengths to overcome the
shortfalls. A high energy level, good organizational skills, or a gifted
imagination are examples of positive qualities a manager can emphasize. As an
agent of change, you should adapt your coaching techniques to focus on tactics
and assignments that use the individual's strengths to facilitate learning.
Denial is often the first line of defense when an individual's weaknesses are
pointed out. Don't back off if the manager downplays a problem when you have
good evidence of its seriousness. Remember, one definition of change is that
which occurs when all other options are foreclosed.
Discipline and consistency are paramount to success. Coaching often involves
making specific assignments (readings, exercises, etc.) which should be taken
seriously and completed on time. Anything less will undermine the likelihood of
success. Both manager and boss need to understand that maintaining standards,
focus and discipline, despite competing pressures for the manager's attention
and time, is critical.
Coaching is a subtractive and an additive process, discarding undesirable
behaviors and learning more effective ones. It's not enough to ask people to
stop negative behaviors without pointing out adaptive alternatives. Coaching
must help the manager expand his or her behavioral repertoire. Having the
individual observe, understand and copy the behavior of others is an example of
one way to do this.
Positive reinforcement is a powerful spur to learning. Encourage and reward even
modest gains - especially in the beginning--and they'll lead to larger ones.
Consider what constitutes positive reinforcement for your manager. Thinking
about that person's values often provides clues; but when in doubt, ask. The
important thing is spotting and reinforcing change.
When a manager makes positive changes, expect co-workers to be skeptical. Their
old perceptions have not shifted yet. Credibility takes time, but will usually
follow if new behaviors are consistent. It may even be constructive for managers
to discuss their efforts to improve with their direct reports. Where trust is
reasonably high, subordinates can sometimes offer support and ongoing feedback.
This can be tricky, however, in situations where the manager has alienated
subordinates, so careful judgement is important.
Once change occurs, expect lapses or temporary reversions to old behavior
patterns, particularly under stress. But if the manager is committed to change,
these lapses will decrease in frequency if you reinforce consistency and
encourage the individual to maintain forward momentum.
In coaching, there are few quick miracles. The longer the history of the
performance problem, the more time and effort the solution requires. Behavioral
change is a complicated process that demands a strong personal commitment and a
willingness to get beyond ego issues. It requires rigorous introspection, a
generous helping of persistence and a skilled guide to show the way. Given
these circumstances, coaching can be of tremendous value to manager and
organization.
Steps to Maximize Appraisal Consistency
Consistency in the appraisal process is essential. Here are three simple steps
employers can take that will improve consistency throughout the organization.
Perform evaluations on a calendar basis, not on anniversaries. If all
evaluations are done at the same time, it is more likely that the necessary
comparisons between employees will be made. When evaluations are done on each
employee's anniversary date throughout the year, it is all but inevitable that
these important comparisons will not be made.
Establish a management committee to review all evaluations. Among other
responsibilities, this committee should have the authority to speak with
individual supervisors to determine if an employee has performance deficiencies
that are not reflected on an evaluation. If an evaluation is too negative, the
committee should also have the authority to explore whether the supervisor
harbors a hidden or impermissible motive against the employee.
Hold regular supervisory meetings to discuss problem situations. Such meetings
will serve four purposes: They will reinforce what should be obvious but often
isn't--that supervisors are paid to supervise. Sharing war stories will help
supervisors improve their own performance. They will benefit from the group's
collective experience in resolving what often appear to be insuperable problems.
Supervisors will be prompted to focus on performance issues on an ongoing basis,
not just before evaluations come due. These meetings will provide HR with
information about performance deficiencies that exist throughout the year, but
may not necessarily be reflected on a final performance appraisal.
BREAK THE BAD ATTITUDE HABIT
You probably know of at least one habitual complainer on
staff: an employee who loves to squawk about how bonuses aren't as big and the
parties aren't as much fun as they used to be.
Be careful how you deal with that worker because, according to management
experts, the old saying about one bad apple is true: Complainers can spread
negativity through the workplace like a contagious disease and infect even the
most optimistic and productive employees. The ultimate result: dropping
productivity along with the slow erosion of corporate culture, even in offices
that recently had good morale.
"A company culture can go from being very optimistic (‘Oh, we love our
work, we do great things') to the reverse (‘It will never get better') in the
space of six months," says Jenifer Callaway, senior instructional designer
for CareerTrack and designer of the seminar "How To Overcome Negativity in
the Workplace."
The root of the problem
What causes workplace negativity? "Uncertainty," says Randolph
Harrison, Coopers & Lybrand's principal and national leader for organization
effectiveness & development in Chicago. "People do not have a negative
reaction to change," he says. "They have a negative reaction to the
punishing effect of change, which is uncertainty."
A case in point: layoffs. Lower employee morale is the most common result of
restructuring and layoffs, according to the 1996 Job Security and Layoff Survey
conducted by the Society for Human Resource Management. Of all the respondents,
62 percent said morale at their organizations decreased because of layoffs.
"In many organizations, people don't know what's coming down the pike, they
don't know if or how long they will have a job when restructuring occurs, which
certainly breeds bad feelings," says Callaway. Once employees start
discussing how they are getting "the shaft," the notion rubs off,
explains Callaway. "The people who are naturally optimistic start thinking,
‘Hey, is it really worth it? Maybe those people are right.'"
Homing in on communication
The best tool to curb negativity and low morale is in-depth, straightforward
communication, says Harrison. "Employers need to be truthful about how
changes will affect employees. When communicating with employees, they need to
clearly define the areas where certainty exists and discuss the areas of
uncertainty rather than brushing the issue under the carpet."
North Central Door Co. in Bemidji, Minn., had morale problems when Michelle
Lasha was hired less than a year ago as its first HR director. Part of the
problem was that company policies and procedures were not always followed,
causing many employees to feel that work and rewards were unfairly distributed.
"Employees felt that work standards were not being met by everyone,"
says Lasha. "Performance reviews had never been conducted, and people
really wanted to know where they stood." What's more, she notes,
management's focus was on production, so there was a general lack of
communication—even when there was good news to be shared.
Now, communication is a cornerstone of North Central Door's workplace. When
management calls a meeting about an issue that will affect employees, the entire
plant attends. Employees at all levels participate in committees to discuss
improvements, bottlenecks, safety and other workplace issues.
One of Lasha's biggest accomplishments has been to work on the negative
attitudes among long-time employees. That is especially critical, she notes,
"because long-time employees are the ones that are going to communicate to
new employees. If the communication is negative, the cycle of poor morale
continues."
Lasha succeeded in altering the tenor of the workplace by "involving
employees in the decision-making process, allowing them to come up with
solutions," she says. That curbs "the tendency for low morale and
negativity because the employees feel empowered. They feel they can make a
difference and make valuable contributions," she says.
Currently, a number of North Central Door employees—chosen by their
peers—are working with management to revamp the company's compensation system.
Other employee committees work to solve more everyday, production-oriented
issues.
Lasha admits she couldn't have done it alone; she needed management support.
"Management was first to admit there were morale problems, and I had their
complete support from the beginning," she says. "The CEO and
management really care about employees and wanted to hire an HR person who could
work on business areas that were more people-oriented vs. production-oriented.
They
knew that improving morale, ultimately improves production," she says.
Deal with the complainers
Employees as well as managers can take incremental steps to avoid widespread
negativity, says Bobbi Summers, a Career Track trainer and author of Pyscho
Cybernetics 2000 (Prentice Hall). In her seminars, Summers teaches people
how to suppress the negative tendencies of colleagues.
Albert Bernstein, a clinical psychologist turned business consultant and author
of Dinosaur Brains: Dealing with All Those Impossible People at Work (Random
House), offers these additional tips on dealing with complainers.
Practice creative ignoring. When you're surrounded by people screaming, yelling
and demanding somebody's head, do nothing. That response is much more
thought-out and creative than agreeing with them.
Answer bad with good. When an employee makes a complaint, counter with a
positive observation. That might cause the complainer to stop and think.
Answering good with bad is also a good way to "cover yourself,"
Bernstein explains: "People who remember the situation later might see you
as the only one who didn't lose his head. You might be considered the leader
when everybody calms down."
Ask the magic question. When people expect you to agree with them or rescue
them, ask: "What are you going to do about it?" If they expected you
to take on their problem, this response will stop them dead in their tracks,
says Bernstein. They will have to think about the situation and what they
expect.
Control your own negative feelings
What do you do if you start feeling negative? Bernstein gives the following
advice for individuals who, from time to time, sense their own negative
tendencies.
Question your own motive. When you start looking for someone to blame, ask
yourself: Once I find out who's to blame, what will I do next? What will I gain
by punishing someone for this? Is thinking this way to my advantage? If you
aren't satisfied with your answers, ask: How else could I look at this
situation? What can I learn here?
Check your goals. When you hear yourself complaining or blaming, ask: Why am I
saying this? What is my goal here? What effect will this comment have on the
people listening to me? What kind of reaction do I expect? Do I want them to
agree with me or rescue me? What am I trying to accomplish?
Decide what action you could take to make the situation better, says Bernstein.
"Then," he recommends, "put up or shut up."
Work through the negativity
At Johnsonville Foods in Sheboygan, Wisc., practicing optimism is a key to
employee goal setting. Crawford says the company places its biggest gripers on a
task force, such as one focusing on quality of work life. "Getting them
involved where they can make a difference really works," says Crawford. The
gripers often turn into real champions.
At a Minneapolis-based engineering firm, employees in the communications
department try to create something constructive out of the act of complaining.
Whenever employees complain, they toss a quarter in the "Complaint
Jar." At the end of the month, the department goes out to lunch for a
complaint-free, fun social experience. The complaint jar picks up the check.
7. Back to current HR issue
Earlier this year, the board of directors of Telxon, a manufacturer of wireless
communications equipment based in Akron, Ohio, found itself in the midst
of a management nightmare. Over a frustrating seven-year period, three CEOs had
come and gone. Now the fourth was history. And before pulling the cord on his
golden parachute, CEO Frank Brick piloted Telxon into an embarrassing nose-dive,
earning the dubious distinction of being forced to restate and correct the
reported earnings for the publicly traded company for 14 consecutive quarters.
As the Telxon board members began the search for a new CEO, they wondered why
four seemingly well-qualified CEOs had failed to deliver. And they decided to
make a change.
This time around, they included HR in the process. They transformed Meg Pais,
vice president of human resources and administration, from a passive observer
into a key player in selecting and integrating the new hire. For example,
when the board settled on finalist John Paxton, it asked him to meet with Pais
to get an insider’s assessment of the company. Paxton jumped at the chance,
eager to assess whether the company was salvageable before committing himself.
Pais spent two full days briefing him on all aspects of the business. “I
didn’t hold back,” she recalls. “I told him the good, bad and ugly.”
When they were done, Paxton took the job—and elevated HR to direct-report
status. Pais emerged as an influential business partner and coach to the CEO,
guaranteeing that Paxton received essential insights his predecessors chose to
ignore.
While Pais was becoming more involved at Telxon, Laurel Marden was being left in
the dark. Marden, the HR manager at Dynatec International in Salt Lake City, was
caught by surprise when President F. Randy Jack announced that he was leaving
after 17 years with the manufacturer and distributor of telephone accessories
and houseware products. “I have no clue about the change in top management or
the plans to recruit and integrate his replacement,” says Marden. “I’m
unsure what will happen next. But whatever it is, I’m sure to be out of the
loop.”
A Sagging Success Rate
Unfortunately, too many HR pros are -— like Marden -— out of
the loop, working for bosses or boards who don’t appreciate the critical
difference that HR can make. “HR is involved in the selection of top-level
executives only 36 percent of the time,” says Valerie Sessa, research
scientist at the Center for Creative Leadership (CCL) in Greensboro, N.C.
Perhaps it’s no surprise, then, that 40 percent of newly appointed leaders
fail in the first 18 months, according to a recent study by Jacksonville,
Fla.-based Manchester, an executive development and training firm. The study
defined failure in a number of ways. “It could mean they were terminated, or
that they resigned by choice. Or it could mean they are viewed as being
ineffective,” says
Marellen Aherne, executive vice president, in Washington, D.C. “Any way you
look at it, it’s a serious problem.”
And it may be worse than it appears. “Overall failure rates may be even higher
because companies tend to endure poor performance,” says Murray M. Dalziel,
global managing director for organizational effectiveness and management
development services at the Hay Group in Philadelphia. “You just put up with
it because of the expense of trying to get out of some of these deals,” he
says.
Often, executive failures can be traced back to a flawed selection process; in
other cases, new hires are not given adequate coaching and feedback to help them
adapt and succeed.
Both problems fall squarely within the purview of HR, which is why HR needs to
be involved in executive selection and orientation. HR professionals can have a
tremendous impact on the success of new executives—if they are given the
chance and take the proper steps.
Defining Organizational Needs
When selecting new executives, a key first step is to analyze the
needs of the organization. Often, organizations don’t think about the
competencies they really need, thus ignoring the groundwork for the best
decision.
Dalziel shares the following story: “One multinational food industry client of
ours that was hiring presidents based on industry norms lost 12 of 24 hires
within a three-year period. When it switched tactics and hired to fit the unique
competencies of its organization, only two of the next 24 didn’t work out.”
Bill Shupert, senior vice president of HR at The Learning Company in Framingham,
Mass., says good selection starts with an understanding that an ideal manager
should offer a blend of managerial qualities.
“There are three types of managers,” he says. “The start-up manager has
specific skills and gets his jollies out of building the business; the
turnaround manager likes to turn around utter messes; and the maintenance
manager likes to be told, ‘The business is running smoothly, don’t screw it
up.’
“The successful general manager or VP,” says Shupert, “has got to have
skills in all three areas. When I hire a CFO or CEO, I look for all three types
and talk about them in the interview.”
Interviewing
Studies show that executives fare better when peers, subordinates
and bosses participate in their interview process, particularly in a team
setting. “It’s not a democracy, but you want them involved along the way so
executives can decide if they can work with the key stakeholders,” Aherne
says.
Stakeholder participation gives candidates a feel for the people they’ll be
working with, and allows interviewers to take ownership of the process. “When
you involve a group of people who will be working with the candidate in the
selection, they and the candidate have a chance to begin assessing each other
and developing relationships,” Sessa says. “When the decision is made,
they’ve had a chance to compare this person to other candidates. Agree or not,
at least they’ll know the rationale for the choice.”
It’s even good strategy to involve naysayers, Shupert adds. “I pick out the
person who is the biggest pain in the ass and include him in the interviewing
process. When you include known critics in the decision-making, it gets around
the organization in seven nanoseconds. At worst it neutralizes potential
critics; at best it turns them into advocates for the new executive.”
Shupert uses the selection process to pave the way for the new executive. He
consults extensively, asking people in the organization what they’re looking
for in the new executive. “I tell them ‘We’ve got a job opening; the guy
didn’t work out and we don’t want to make the same mistakes. What are your
concerns? How would you define success? What do you think has to be done in the
first 90 days? How will you measure if it’s been done?’”
Info in hand, he folds it into the candidate’s interview. “You get a more
meaningful interview because you understand the business issues that need to be
resolved, and can ask candidates targeted questions. The person should
understand the real issues and challenges. I tell the candidate, ‘I want to
know what you’ll do in 90 days and how your people will know you’re
successful,’” Shupert says.
Rolling Out the Welcome Mat
Once an executive says “yes” to a job offer, HR should oversee
the integration process. This can be a vital element in ensuring executive
success.
The integration process should include fairly standard items, such as briefing
new executives on the company and giving them insights into its culture; but it
also may need to include some surprising elements, such as time spent clarifying
expectations, setting goals and coaching new executives.
It’s wrong to assume that top level executives don’t need the HR care and
support that lower-level personnel receive as a matter of course. For example,
research reveals that—even after extensive interviews and discussions—new
executives often take charge without a clear sense of what’s expected of them.
Somehow they fail to grasp what the boss wants from them.
“There’s an inversely proportional relationship between the amount of
counseling a person gets from his peers and superiors the higher up you go,”
says Dennis Alter, CEO and chairman of Advanta, a financial services companyin
Philadelphia. “Entry-level people have supervisors and HR people. But you
bring in someone as president, tell them you want 20 percent return on equity,
and leave them pretty much on their own.”
HR can help executives increase their chances of success by making sure they
clearly understand the role they’re expected to play, says Aherne. Encourage
them to confirm with their bosses what is expected of them in the first year.
Make sure they understand how their performance will be measured and ascertain
their boss’s preferred method for getting progress reports and feedback.
Clarity is key. Everything should be set out clearly
and unambiguously.
At The Learning Company, Shupert makes certain the message is hammered home by
three influential stakeholders. “They are briefed by their boss, the CEO and
by me from an HR perspective.”
Paint the Big Picture
A briefing by HR can be an essential part of helping incoming executives check
the organization’s pulse. But it should cover more than HR issues.
“Offer the new boss a business briefing where you outline the background on
all the senior executives and map out short-term issues that might bite him,”
Dalziel advises. “Make sure the briefing is very focused on big picture
concerns relating back to the people issues, like the efforts you’re making to
build adequate bench strength. Don’t start with the traditional HR issues.”
Pais at Telxon agrees that the briefing must be broadly based. She points out
that HR professionals have limited effectiveness when they are knowledgeable
only about HR issues. “Whether it’s finance, IS, engineering or
manufacturing, if you don’t understand all of these, you can’t be a
successful business partner.”
In counseling Paxton, Telxon’s new CEO, Pais “spent a lot of time getting
down into the VP and manager level, trying to understand what went wrong.”
With her HR background and solid grounding in the business, Pais has become
Paxton’s right hand, helping him craft Telxon’s comeback strategy. “He’s
told the management team that he’ll be relying on me more than anyone in
getting the organization on the right track,” she says.
With Pais’s help, Paxton was able to hone in on the root causes of Telxon’s
employee morale problem. “The employees were starved for information,” says
Pais. “It had been almost three years since the former CEO had been in front
of people. The new CEO went to every location except our international site
within three days of his appointment. I was there with him introducing him to
people throughout the company.”
Hit the Ground Running
Once new execs are in place, HR should counsel them to move quickly, but
prudently. New execs have to make their “mark and demonstrate change within
the first 90 days,” Dalziel says. Execs should “take some symbolic actions
in the first 30 and 60 days,” he says, but should avoid the temptation to make
radical changes.
Shupert agrees that the first three months of an exec’s term are a
make-or-break period. “There’s no such thing as a honeymoon period
anymore,” he notes. “Executives don’t have a bad year; if they have a bad
quarter, they’ll have one quarter more to fix it at best.”
His advice to a new leader: “You need some quick wins, so do something
that’s simple and that everyone would like to see happen. Don’t over-promise
and underachieve in the first 90 days.”
Keeping promises is crucial, says Aherne. “A major reason executives fail is
they don’t deliver; they’re unable to achieve their two or three most
important objectives, the things for which you will not be forgiven,” Aherne
says.
Savvy leaders, such as David Frisch, don’t miss the point. Frisch recently
took the helm of Condee Cooling and Electric, Inc., a 40-employee, $7 million
electrical construction and cooling company on Marco Island, Fla.
Before he was offered the job, says Frisch, “the owner hired an efficiency
firm to assess the entire operation. He’s made it clear that he expects me to
implement the consulting firm’s recommendations. Based on their report, I knew
I had to fire one guy right off the bat. Everyone knew he was a good talker, but
never followed through. I fired him and everyone respects me for it; to them it
was a major change.”
Avoiding Cultural Dissonance
A serious potential snag for new executives involves adapting to
the style of a new workplace. “We’re finding that executives, especially
from the outside, don’t come in ready to hit the ground running; they need
help familiarizing themselves with the new culture,” Aherne says. As a result,
Shupert advises new execs to “keep your mouth shut as much as possible until
you learn the organization.”
To avoid problems, HR can glean clues about candidates by examining the culture
at their previous jobs—and provide coaching to help new execs get acclimated
more quickly.
“One of our new presidents came from a very large company with a rigid,
hierarchical command and control philosophy,” says Advanta’s Alter.
“We’re a much more informal place, and this individual had a rough first few
months because the directive style and lessons he learned at the other company
did not fit in here.”
Alter brought in an outside coach to help the executive adapt his style to the
company’s. “Now he’s doing well,” Alter says. “Working with us and his
coach, he was able to smooth over some rough spots.”
Coaching on Softer Skills
One of the chief reasons top executives flounder appears to be that they fail to
build good partnerships and teamwork with their peers, subordinates and
superiors. In a survey of 500 top executives by CCL, the respondents estimated
that 27 percent of the executives they hire ultimately fail, leaving voluntarily
or involuntarily, often within two years. In almost all cases, the departing
executives exhibited sound business skills; the difference between winners and
losers was their social skills, the ability to foster good personal relations
with peers and subordinates.
Says Aherne of those who don’t pan out: “They’re
poor team players.”
Dalziel adds that execs who don’t succeed usually “don’t have the softer
skills, competencies that demonstrate emotional intelligence. They may be too
inflexible, set in the way they did things before, especially if they come from
the outside.”
There is hope, however, for those whose social skills aren’t up to snuff. The
study also found that new executives who received coaching and training were
three times more likely to succeed than their counterparts who didn’t.
As a result, organizations that fail to provide adequate coaching are probably
shooting themselves in the foot. All candidates, whether internal or external,
need coaching. “Internal people may know the lay of the land, but may come in
with internal baggage,” says Aherne. “People from the external world may
have a clean slate, but don’t know the internal politics.”
Coaches can come from inside or outside of the company.
Internal coaches should come from HR, not from the executive ranks, advises
Shupert, who serves as internal coach for The Learning Company’s top
executives. “Senior executives are hired to be good leaders, not good coaches,
so HR does the coaching,” he says.
Other HR professionals find it preferable to beef up their internal coaching
efforts with outside experts. Many agree with Advanta CEO Alter that the
investment is worth the results. To Alter, an outside perspective is virtually
essential during the transition phase. “To be in the soup while you’re
cooking is tough,” he observes. “Internal coaches can be helpful, but it’s
a more difficult role.”
Recently, Alter engineered a major reorganization at 3,000-employee Advanta and
sold off the company’s credit card division. Embarking on a search for new
leadership, he decided, with some trepidation, to go outside for six of eight
senior management positions. “We were not in a steady state, so the new people
could have had either a salutary or disruptive effect on the organization. I
wanted to do whatever I could to tilt the scale to the positive side.”
To help, Alter bought into a program offered by Diversified Search, an executive
search firm headquartered in Philadelphia, and leadership training specialists
from Manchester. Diversified found the candidates, then Manchester’s Ph.D.s
took over, providing psychological testing, training and coaching to help the
new hires get acclimated.
Alter worked closely with his outside consultants and new executives. “We get
in a room with you and your coach and ask you to identify the five things that
are most important for success,” he says. “What relationships do you have to
build with your colleagues, key reports, superiors? What obstacles do you
see?”
Alter says his executive team gelled rapidly because it confronted cultural and
interpersonal issues head on. In the one instance where a new executive was
asked to move on, the process brought the issues forward sooner. In a session
with Alter present, the new executive, two months into the job, was asked to
describe what he thought he was supposed to do. “I want the keys to the
car,” he replied.
To Alter, whose father began the business 50 years ago, the comment was
revealing. “I told him, ‘no one has the keys to the car,’” Alter
recalls. “You can drive the car, but I’ll be along for the ride. I want you
to run a part of our business, but I have no intention of giving you control.”
Better Days Ahead?
Overall, experts agree that current executive selection
practices are yielding a torrent of unhappy endings. “Everyone says human
talent is the most important aspect of their business, but they don’t follow
through,” says Judy von Seldeneck, president and CEO of Diversified Search.
“Now it’s coming home to roost as so many managers fail and competition for
replacements heats up.”
As the evidence mounts that so many key appointments are not reaching their
potential, it’s likely that CEOs and boards of directors will look to expand
HR’s role in selecting and developing top talent.
And that’s good news. When HR is involved in the executive search and the
acclimatization period, the outcome can be much more promising. Just ask
Telxon’s new CEO, John Paxton. When he considers where he’d be without Meg
Pais, he knows that keeping HR out of the loop would be pure folly.
8. Competitive Hiring: How To Win :
There`s a war going on. It doesn`t involve
weapons or soldiers but it requires planning, strategy, and precise execution.
It`s the "employment war" and those fighting the battle are
organizations that require high-tech skill sets. Even the smallest companies need
a webmaster and a network administrator. Yet there are few candidates - or at
least not enough for the demand - and companies are fighting to attract, and
keep them.
Consider the statistics. The U.S. Labor
Department estimates that 95,000new technology workers will be needed to fill
job openings and replace current worker seach year until 2005. Yet in 1994, only
24,553 students earned bachelor`s degrees in computer science. While statistics
are unavailable for years since then, growth - if any - has been flat. Since
reaching a high in 1986, the number of computer science degrees awarded in the
U.S. has dropped by almost 29 percent.
The result is an extremely competitive
recruiting environment for companies and a job hunter`s dream for prospective
technical employees. Nearly 85 percent of top executives surveyed said a lack of
available technology professionals was responsible for their hiring shortfalls
this year. And it is likely to get worse. The U.S. census predicts a 15 percent
drop in residents aged 35-44, further precipitating an already bleak situation.
Yet, despite a competitive environment,
companies can attract and retain qualified candidates. Knowing what works and
what doesn`t in today`s business climate is the key.
Recruiting New Talent
Recruiting is as important to a business as
the development of a technology. Companies typically develop business plans but
often fail to develop a staffing plan and strategies to support it. Which
positions are most critical and in what order? Where are the pools of candidates
and what are the strategies to reach them? What qualifications are musts, and
which are wants? These factors are critical to recruiting new talent. The
strategies for recruiting has evolved with technology.
Information technology (IT) professionals
generally use technology in job hunting. Which means they`re not just searching
for listings in the newspaper, but also on the Internet, which is a larger
presence in job searches of all kinds. The Internet is a place where more and
more companies are doing their recruiting. Such standard recruiting methods often
attract a large pool of potential candidates. To find the right employee, it
often means looking at hundreds to hire for one position. It is a sound strategy
if you are selective enough and have the time to sort through the candidates. If
your staffing function is set up correctly and using the technology tools
available it can quickly sort the thousands of resume postings.
But with IT professionals in such high
demand, companies also are recruiting right from other companies. Such
"stealing" is standard practice in an age when company loyalty is
virtually nonexistent. Approaching employees who are not actively looking is
usually done through headhunters and sometimes through personal contacts.
Another method is growing your own talent. This requires the anticipation of
staffing needs years in advance. It may include locating talent on college
campuses or within your own organization. Offering training and placement
programs not only helps build employee loyalty but trains the employees as you
designate, with your corporate culture in mind. At any given time, your company
may use all of these strategies.
At T. Williams, a national management
consulting company specializing in the practice of staffing, we use a number of
recruiting techniques, and grow internal talent that works both for the present
and for the long term. We look at current staffing needs, but also examine them
in the context of projected company sales, industry growth and how skill sets
will change in the near to far future. Essentially, it is looking at your
staffing as you might a business acquisition - an investment helping to grow the
company`s earning potential.
This strategy works. It helps companies to
identify the staff they need and to grow sensibly, even when they need to do so
exponentially within a short timeframe. But it means nothing if the employees you
hire do not stay with your company.
The Corporate Culture
What is the secret to retaining good
employees? The answer is matching employees and corporate culture. Corporate
culture refers to the work atmosphere, which tends to reflect the company`s
values.
People work for a variety of reasons. One is
to pay the bills and collect benefits. Although a primary reason, it`s not why
someone chooses one job over another. That often depends upon the corporate
culture.
Your task is to present and sell your company
to perspective employees. The best matches are those who fit your corporate
culture. That will ensure your company is attractive to them. Before any job
search begins, taking a hard look at your corporate culture and how your company
is presented during the interview process will save you time and money in the
long run.
Determine the type of worker for whom you are
looking. Talk to similar workers at your company to find out what they like about
working there. Decide what perks you could offer that might support your
corporate culture and also attract those workers.
Subsidizing childcare or adoption is a good
way to attract family workers, for example. But be careful not to pigeonhole
single or married workers, male or female, into slots. It`s not true that single
workers tend to work longer hours or mind travel less than married workers do.
And be creative. With the employment wars
pushing the salaries up, you can often compete with smaller, more meaningful
items. Flexibility in work hours, telecommuting, access to a gym, free vending
machines, and cappuccino bars all make a difference. Training is an extremely
valued perk for technology professionals, since technology changes so rapidly and
there is a fear of obsolescence. Just make sure that the perks reflect your
corporate culture, or they won`t work.
If the employee/company match is a good fit,
it will help to keep your workers working for you. Retention is very important.
The cost of replacing an employee can be as much as two to three times his or her
salary in lost work, recruitment, and retraining.
Recruit the best and brightest, they will
grow your company. Prepare a staffing plan and strategy that supports your
business plans objectives. Invest in staffing with the right tools and
professionals. Look for someone interested in being a part of the company fabric
and grow with it. Then offer them the benefits, compensation and perks to help
keep them there. Companies that focus on staffing as key to their business have
the best chance of winning the employment wars.
9. Is Becoming a `Free Agent` for You?
One of the key concepts in this idea of becoming an entrepreneur, a
"free agent" if you will, is how well it mirrors what is happening in
the business world today. As Corporate America continues to down size,
out-source, acquire, and merge, the opportunity for people to start their own
businesses has never been greater. Companies will continue tore-invent
themselves on a regular basis to stay competitive in this warp-speed, technology
driven, "we can no longer guarantee you a job" workplace. They will
continue to figure out how to reduce their cost of doing business and strive to
become a more fluid and flexible business model:
A model that is much more responsive to what is happening in their field. A
model that allows them to change the way they do things on very short notice. A
model that seeks to replace permanent employees with a contracted, short-term,
project-based staff.
Therein lies the opportunity for those of us who choose to go down the
"everyone is a business" path. The New Look of Work (some studies
predict that by 2005 up to 50 percent of the work force will be independent
contractors) will provide the vehicle for people to launch their own businesses;
including becoming an independent consultant, a small-business owner, or a
web-based entrepreneur. And, the benefits can be enormous: more freedom, more
control of your working time, more diverse assignments, telecommuting, and better
work/life balance to name just a few.
So where are the best opportunities to become an independent
contractor/consultant? Here`s a list of a few of my recommendations:
Accounting Market Research Advertising/PR Telemarketing Career
Coaching Office
Productivity (word processing) Editing/Writing Tax Planning Janitorial
Technology
(web-site developers, network engineers)
But maybe the best opportunity to become a "free agent" is with
your current employer. Companies are becoming more and more receptive to
employees, or groups of employees, quitting the firm and being re-hired as
contractors. Oftentimes with contracts, at higher pay, for months or even
multi-year terms. The benefits to the company are: (1) They know your skill
level, (2) They reduce their fixed expenses, and (3) They put themselves in a
position to terminate you on a moments notice.
The benefits to you are: (1) You make more money, (2) You have the
flexibility to change assignments or move on when the work is completed, and (3)
You get the chance to be taken more seriously by the company so as to propose
different, better solutions for the same work.
Should you decide to "go solo," here are a few tips on how to be
most effective:
(a) If you`re working out of your home office, don`t hang around the office
all day. Take some time each day to get out, meet some customers, lunch with
fellow contractors.
(b) Don`t spend too much time on your computer each day. The tendency is to
get lost in some back-water and spend hours watching the alligators (which may
have nothing to do with your biz).
(c) Focus on servicing your customer better, rather than on trying to grow
your business too fast. There is atendency when you first leave Corporate
America to get more customers. That`s somewhat understandable. You no longer
have
the cushion of a regular check. By focusing on giving your current client un-paralled
service, you will quickly build a strong reputation and gain a reference that
will provide plenty of future revenue.
(d) Don`t think in terms of a formal, rigid, business plan. When you`re an
independent consultant or contractor, you have to be extremely flexible to
quickly respond to the market needs. The customer is still king.
(e) Don`t let business run your life. Once you`re clear of the Corporate
Claw, there is sometimes a tendency to letthe responsibility overwhelm you. Stay
focused and remember that the goal of having fun and achieving work/life balance
is doable.
No doubt some of us will have concerns about venturing out on our own. After
all, we probably entered the work force thinking that our education and desire to
succeed would bring us a lifetime of job security, ever-increasing compensation,
and fulfillment of the American Dream of two cars in every garage. But, haven`t
we really been self-employed all this time? Haven`t most of us been independent
contractors performing a defined set of serviceswith no real guarantee of
continued employment? I think so. If you do too, and you`re ready to take the
plunge, goodness is just around the corner.
Most of us have thought about it at one time or another. We
have dreamed of taking control of our careers and heading out on our own.
Occasionally it`s because we don`t like our company, or can`t stand our boss or
co-workers.Some times it`s because we are tired of making all this money for our
company. But more often than not it`s because we have this "fire" in us
that says we want to own our business. We want to pull all of our ideas,
experience, and drive together to prove we can do it better. We want to do it Our
Way!
10. My Unique Career Path
While still quite young, I applied for and won what many people in my field would consider a dream job: general assignment reporter, and later feature writer, at The New York Times. I covered crimes and fires, city politics, and human interest stories. I worked long hours and weekends, but I loved it. Often, before leaving the Times building at the end of the day, I'd take the elevator up to the floor where (in those days) a person could actually watch the presses roll. After midnight, I'd stop by my corner newsstand to buy the first edition, with the ink still damp on the story I filed only hours before. It was my favorite moment in the day.
In the Beginning
I was a small town girl from New Hampshire whose own brilliant and talented mother couldn't get a job, despite her Harvard PhD. A wife of the fifties, she was "unemployable" because her husband had a job, so she sold encyclopedias door-to-door and tutored Latin for a dollar an hour. She raised me to believe that life would be different someday, that I'd have the career she was denied.
For my seventh birthday, my mother gave me a used mimeograph machine to run off copies of the neighborhood newspaper. I served as its editor, publisher, reporter, and advice columnist. Fifteen years later, when I found myself on the Times staff, it was nothing less than a dream. I interviewed Muhammad Ali, shadowed a private investigator, and spent a night listening to the story of a seventeen-year-old prostitute. When I think of that thrilling year, it seems like my heart beat at a perpetually elevated speed.
My career was shaped by the long, complicated, inconvenient, frustrating detour of motherhood--but my children gave me something to say. |
I fell in love at twenty-three. Though successful, I wanted something that I had not known in my own young life: a happy family. Despite the unfashionableness of the notion at that time, I wanted to get married and have children. The demands of my job would leave little time for rocking babies and baking bread. So I quit my job, gave notice on my Gramercy Park apartment, and moved with my husband to a farmhouse in rural New Hampshire.
Sign of the Times
All around me, women were gaining entrance to worlds that had traditionally excluded them. I was part of the first graduating class to include women at my prep school, and the third class of women at Yale. My colleagues were shocked when I left the Times to marry and have babies. How could I turn my back on such opportunities and follow the path that our mothers were forced to take? My choice seemed political, not personal. And from a political standpoint, it couldn't have been more incorrect. Yet having children never seemed to exclude one from a fulfilling work life. In those early days of the feminist movement, we thought women could accomplish everything--career, motherhood, relationship, and success--all in the same twenty-four hour period. With the advent of disposable diapers and day care centers, we could do anything.
It wasn't quite true. My own life experience taught me that every choice brings cost and sacrifice. I could never be the kind of mother, writer, and reporter I wanted to be, if career success and excellence were my only objectives. Not with my husband and, in the years after our divorce, not as a single parent.
In the years since I cleared out my desk and packed away my career-girl suits, I continued to write magazine articles and books--but my objectives were different. I wanted to earn a living, not build a career. The novels and screenplays I burned to write seemed impossible to pursue, with the demands of driving a carpool and making gingerbread houses. I didn't have the single-minded concentration to do that kind of writing.
I chose, instead, to make my children a part of my work. I wrote a syndicated newspaper column about family life. I told simple stories, documenting an aspect of women's experience that hadn't really been examined. I could honor a challenge--the raising of children, the making of a family--that our success-oriented culture tends to overlook.
Mid-Life Freedom
I remember a night, in the early eighties, when my husband and I made a rare trip to Manhattan to attend a wedding. I was the only pregnant woman in the room, physically larger than most, but I felt was invisible. A glazed-over look appeared on the faces of those who met me. It was better to say, back in those days, that you were an exotic dancer or a parolee than presently engaged in raising young children.
The son I carried that winter is seventeen now, ready to graduate and leave home. At 47, I will soon have the freedom to pursue work and a career that I haven't known since my early twenties. I can travel freely in pursuit of a story or spend limitless hours at work on a novel. But it's impossible to know what this new freedom will feel like until it happens.
In some ways, I'm a little like Rip Van Winkle, waking from the 20-year career interruption of motherhood. I was never really asleep, of course-only otherwise engaged. And though my children may no longer be under the same roof with me, they're as much a part of who I am as my blood type or ethnic heritage.
The choices I made-to veer off the fast track, down a winding dirt road-may not have been right for everyone. But it was right and necessary for me, at the time. I hope young women feel freer to make such a choice now, that they are more realistically informed than the women of my own, highly politicized, early feminist generation were.
My career path was shaped by the long, complicated, inconvenient, frustrating detour of motherhood--but my children gave me something to say. Maybe you can't fully appreciate the treasure of artistic and creative freedom until you've lived without it for a while. Maybe you have to lose some precious time to learn how precious it truly is.
11. It`s Not the Money that Counts!
We have conducted Talent 2000? Retention Briefings for more than five hundred
professionals in the last four months. Participants come from a variety of
industries - financial services, health care, telecommunications, manufacturing,
consumer products, hospitality, energy, utilities, automotive parts, automotive
manufacturing, etc.
These five hundred professionals said, "they wanted to stay in their
organization." They`d rather not start all over again in another
organization with all it takes to rebuild their reputation, network, comfort
level and confidence. But, if the conditions they think are important aren`t
available in their current organization environment, they`ll move on - whether
they want to or not.
In fact, a January, 1999 study from Linkage HR, consultants found that more
than 40 percent of respondents would consider job-hopping to the same position
elsewhere even for the same pay and benefits if career development and greater
challenges were part of the deal.
In interviews with hundreds of professional, most indicated that they have
both stayed in and left organizations. Their reasons for staying and leaving are
summarized below. As you read the table, put checks on those items that would
motivate you to stay or leave your current organization.
WHY PEOPLE STAY IN ORGANIZATIONS WHY PEOPLE LEAVE ORGANIZATIONS
Balance/Work
and Life Harmony Lack of Balance/ Stress Values Aligned with Leadership Lack of
Values Alignment/No "Fit" Respected by Managers/Trusted Poor Manager
sIntegrity of Managers/Leaders Conflicts/Lack of Integrity of Managers Passion for Mission and
Strategies Incompatible Mission/Strategies Career Opportunities Pigeonholed/Lack of Career
Possibilities Challenging Work Bureaucracy/Organization Politics Flexible
Schedule/Telecommuting Lack of Flexi-schedule/No Telecommuting Mission and Strategies
Communicated Company not "walking the
talk" Autonomy BureaucraticInnovation/Entrepreneurial Mentality "Silo"/hierarchical
mentality Learning Possibilities No learning possibilities Teamwork/collegial
relationship Lack of teamwork Comparable pay to other organizations More money
As we analyzed the answers as to why people "stayed or "left,"
five practices emerged as the hallmarks of organizations with high retention.
When the five practices were in place, people remained and felt like they
contributed to the organization. When they were lacking, people left.
According to our survey, the following specific practices are used by
effective managers in organizations with high retention:
1. Appreciate the unique life needs of employees.
2. Assess and respect the capability of employees.
3. Anticipate and speak about the future of the organization.
4. Align employee aspirations with the mission and strategies of the
business.
5. Accelerate learning and look for learning opportunities.
Appreciate the unique life needs of employees
People`s life circumstances change as they marry, divorce, have children, get
older, have aging parents, have health concerns, or find themselves a
"trailing spouse." Employees who know and can articulate their
changing needs must be met with flexibility and openness on the part of
management. According to a recent study by the Families and Work Institute, 22%
of employees say they are willing to sacrifice some career advancement in order
to enhance their personal lives. But, among workers ages 18-24, that figure
jumps to 34% - and 60% among very young parents.
Tracy has a one year-old and faces a commute of almost three hours daily. She
approached her manager and asked to experiment with telecommuting two days a
week, in order to balance her hectic work schedule with changing family needs.
Her manager said that "telecommuting" was not a policy in the
organization. Tracy researched other similar organizations to see how they were
handling telecommuting, and made a presentation to her manager. The answer was
still, "our organization doesn`t yet have a policy." Tracy is now
job-hunting. She`s sad, because she loves her work and reputation in the
organization. But she can no longer put herself and her family second in
creating a balanced work life.
Joan has four children and a commute of over an hour daily. Her family is her
number one priority and yet, she loves her work as an office manager. She
proposed a four-day work week to her manager and asked that she be able to
connect on the fifth day via phone, fax, and modem. Her manager was open to the
change. Joan is more at peace in both work and home commitments.
Assess and respect the capability of employees
Employees want to work with managers who give them feedback, respect their
competencies, and prior experience, and ask them for input and advice. They
treat employees as valuable colleagues.
A high power sales professional had been working in the home construction
business for twenty years, and "finally couldn`t take it any longer,"
he said. Michael tried for months to work with his new manager, share his
experiences, give feedback from his customers, and his manager wouldn`t listen.
"I felt disrespected and not listened to for months. I had a proven track
record, greater than the new manager, but he acted as if I knew nothing. I
finally decided that I had to leave for my own mental health. I hated to walk
away from that kind of money and customers I`d cultivated for years, but my own
dignity and self-esteem became more important."
Sales in the region have gone down considerably and two other sales managers
are job-hunting on the outside. What will it take for the manager to see the
results he`s creating with his lack of respect, and non-collegial management
style?
Anticipate and speak about the future of the organization
As organizations merge, divest, downsize, and change because of increased
competition or changing technology, employees need to be part of the
conversation about the changes. Employees and their managers can be talking
about the changes in the industry and organization. As changes occur, certain
jobs or professions may become more or less important to the organization.
Employees need to know this, so they can be prepared for the changes.
One government agency saw that technology would be replacing the jobs of
several hundred administrative clerks. Three years before the technology
transfer was to occur, the management team talked about the importance of
reskilling the clerical staff. The employees were invited to attend a career
workshop with the purpose of equipping themselves for another trade or
profession. As a result, over 250 clerks chose professions in computer repair,
graphic design, administrative support, programming, word processing, interior
design, financial analysis, and many other professions and trades. They were not
"out placed," they had full employment and the basic competencies
required for the future because their managers anticipated and talked with them
about the how the changes were going to impact them. They had time to prepare!
Align employee aspirations with the mission and strategies of the
organization
Passion and purpose drive successful organizations. The closer the individual
and the organization are aligned, the more energy and productivity they exhibit.
Managers who know what their employees` goals are, can tap into them to further
the organization, retain employees, and boost organization productivity and
innovation.
A professional, with twenty-five years of leadership in her field, saw the
need for shifting the mission of the organization, based on the changing needs
of the organizations they served. She ran conferences, brought in outside
speakers, researched, and did everything she could to awaken top executives to
the changing business needs. Unfortunately, they were still making money in the
short term, and were unwilling to listen to her message. As a result, she
resigned and left a major vacuum in the company. She is now fully employed in an
organization that "fits" her mission and is moving in the direction
she anticipated. Overtime, both her prior and current organizations will be in
direct competition.
Had the management listened to her information on the trends in the industry,
and tap into her vision, her prior organization wouldn`t face nearly the
competition they will now face.
Accelerate learning and look for learning opportunities
Professionals want to keep learning and developing their "hot
skills" from year to year so that they feel marketable and contribute in a
meaningful way. Managers who succeed at retaining their workers are continuously
looking for development opportunities and projects for their employees. They are
on the lookout for challenges, new assignments, and even willing to let their
employees go to other divisions or business units, in order to keep them for the
company.
Ann worked for a major energy company for eight years. She was a specialist
in human resources with a Ph.D. from a leading school. She was an
extraordinarily gifted systems thinker and organization development consultant.
Unfortunately, her manager was threatened by her systems savvy. The organization
was undergoing a major shift in the industry as well as facing new ownership.
However, Ann`s manager was unwilling to tap into her skill and potential and
kept her doing routine training and personnel management. She went to him
several times with proposals for redesigning human resource services and
consulting to better support the strategic business plan as they looked at the
new ownership. Each time she was rejected. After three years, Ann moved on to a
smaller organization, where she had more responsibility, could work on systems
issues, and was well respected by the executives running the company. Her prior
company is still looking for a replacement, and slowly losing market share.
Managers who pay attention to their employees and talk to them about both the
needs of the business, and their own needs have great power to develop and
retain key employees. Take a close look at the managers in your organization and
develop the habit of "talking straight" with them. Let them know what
you need and want, and see that they are consistently practicing the five
behaviors outlined above. Be true to yourself.
Seasoned professionals want more than money if they are to
stay in an organization. The majority of professionals that leave organizations
do not leave for the money. Money sometimes becomes the justification or what
shows up in exit interviews, but it`s not the primary motivation for 95% of the
people.