M E M O
From: David E. Edell, President
Date: September 18, 2002
Re: It's the 20% of employees who do 80% of the work that bosses should worry about.
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Becoming a Talent Magnet: How to Attract and Retain Great Employees
By David Lee
Reprinted with permission.
Although most business owners and CEOs say they realize the critical role attracting and retaining high quality employees plays in their company’s success, a recent survey by Kepner-Tregoe of Princeton, New Jersey, seems to demonstrate what many employees experience firsthand - many don’t “walk the talk.” In their survey of 1,290 employees, Kepner-Tregoe found that 64% of workers stated that top management doesn’t initiate programs to reduce turnover.
When management does address this issue, they often focus their attraction and retention efforts on financial factors - competitive pay and a good benefits package. Although important, these are not enough to attract and retain the best of the best. In fact, the Kepner-Tregoe study revealed that 40% of employees felt that increased salaries and financial rewards were ineffective in reducing turnover. In Fortune magazine’s “100 Best Companies to Work For” survey, not a single employee mentioned money as a reason why they loved the place they worked. If competitive salary and a generous compensation package aren’t enough, what does make a company the kind of place that draws great people to it, and makes them want to stay? In short, what makes a company a Talent Magnet.
Talent Magnet organizations attract and retain great employees because they satisfy the key human needs that influence performance and loyalty. They satisfy these needs by the way they are lead and managed. In this article, we will identify several core human needs which affect how people feel about a company, and how Talent Magnet organizations address these. The following list is not meant to be exhaustive, but rather a place for HR managers to begin the conversation with their fellow managers about how they can co-create a Talent Magnet Organization.
WHAT ARE PEOPLE LOOKING FOR?
Pride In Where They Work and What They Do
The type of person employers want most - those who do an outstanding job and take pride in their work - want to be proud of the company they work for. Companies that produce mediocre products or provide poor service have difficulty attracting and retaining excellent workers - regardless of how generous their benefits and compensation package. Conversely, companies that offer the highest quality products and service are far more likely to attract and retain the “best of the best.” Employee pride also comes from observing management making decisions that show a clear understanding of what is going on “in the trenches.” When management tolerates shoddy decision-making and mediocre management, pride is damaged. When an organization embodies excellence, it creates a self-reinforcing, winning success cycle - a great company that attracts great people who make it possible for the company to remain great.
Meaning and Purpose
Meaningful work brings workers alive in a way a generous benefits package cannot. In the words of Studs Terkel, author of Working, employees “search, too, for daily meaning as well as daily bread, for recognition as well as cash, for astonishment rather than torpor; in short, for a sort of life rather than a Monday through Friday sort of dying.”
How do Talent Magnet organizations address this issue? First, they have, and embody, a mission and a vision that captures the hearts and souls of their workforce. Second, they continuously communicate their mission and vision to their people. Third, they communicate the important role each employee has in making the vision a reality. Fourth, they give employees the tools and freedom to make a difference in the company. Fifth, they let employees hear “the voice of the customer,” to help them stay connected to the bigger picture. Medtronics, a medical products company from Minneapolis, helps their employees hear the voice of the customer and stay connected to the big picture by flying in patients whose lives were saved by Medtronics products, along with their families and doctors, to the company’s annual holiday party, and letting employees hear their stories.
Appreciation
Showing genuine appreciation is simple, inexpensive, and tremendously effective. Research shows that appreciation is one of the strongest, if not the strongest, employee motivator. How do you show appreciation? It can be as simple as saying "Thanks for doing a great job," when handing out paychecks, as does Meredith Burgess of Burgess Advertising, a Portland, Maine firm known for having far greater employee and client retention than is typical for an industry characterized by rapid turnover and fickle relationships.
Doug Levin, CEO of Fresh Samantha, the natural fruit juice phenomenon from Maine, solicits information from managers every week, about who has done a great job, gone the extra mile, or has done some other outstanding “Juicehead” action, and sends them “Thank you” notes. At Oakhurst Dairy, of Portland, Maine, co-owners Bill and Stan Bennett are always on the lookout for employees going the extra mile, and then making sure they get a gift certificate to dinner, the movies, or some other small token of appreciation. It’s not the “prize” that matters as much as the underlying message - “We don’t take you for granted; we notice the good things you do.” In fact, management at Talent Magnet companies are careful not to confuse prizes, awards, and Employee Appreciation Days with genuine, ongoing, person-to-person displays of appreciation. The former can create cynicism and decrease motivation; the latter taps into one of the most powerful human needs and motivators.
Opportunities To Learn and Grow
When work allows employees to use their minds, acquire new skills, and face situations that invite them to grow, they come alive. Talent Magnet organizations address this fundamental need by providing their employees with ongoing learning opportunities. They do this not only through formal training, but through cross-training, and assigning employees projects and responsibilities that cause them to stretch. Even for production work that might not be considered “knowledge work,” innovative companies like Hussey Seating of South Berwick, Maine design jobs so front-line employees get to bring their brains as well as their brawn to work. Using a team model, production workers at Hussey Seating are actively engaged in decision-making and process improvement initiatives.
While management at non-Talent Magnet organizations view training as a luxury they either can’t afford, or don’t have the time for, management at Talent Magnet organizations see it as investment in attracting, retaining, and growing a world class workforce.
Respect
Managers at Talent Magnet organizations realize that every management action, response, or communication conveys a message about how much management respects - or doesn’t respect - its employees. They realize that simple demonstrations of respect, like not requiring employees to ask permission for every minor decision, or saying “Would you...” rather than “You should...” or “You need to...,” when assigning tasks, makes a big difference in how employees feel about their employer. Management shows respect by soliciting input from people on the front-line. When Keane, Inc.’s co-presidents Brian and John, Keane, Jr. go out into the field and ask their people in the trenches “What do you recommend we do about this situation?” they send a clear message of personal and professional respect, and reinforce Keane’s reputation as a great place to work. Asking for employee’s input on how they feel about the organization and the way they are managed - and then responding to the feedback - is another sign of respect.
Respect is also shown by recognizing that employees have a life outside of work. It’s demonstrated by not piling on so much that work employees don’t have a life, and not requiring them to beg for flexible scheduling so they can meet their other life responsibilities. At Tom’s of Maine, employees recently requested that they leave early on Friday for the summer. The fact that they even dared ask for that says something about the company. The fact that management agreed - and that productivity has not decreased - says something even more important about the company and the kind of mutual respect and commitment that comes out of such responsiveness. Tom’s management also responds flexibly to their workers’ child care challenges, resulting in employees who can focus on doing a great job, rather than on how they are going to juggle work and home responsibilities - and feeling resentful.
THIS ISN'T ROCKET SCIENCE...SO HOW COME SO FEW COMPANIES DO THESE THINGS?
These needs are so basic; so obvious; yet so often not met by companies. HR Managers need to be aware of what prevent companies from recognizing and addressing these needs, if they are going to help their organization become a Talent Magnet.
Time Pressure - Managers are often so time pressured and so focused on putting out fires, they incorrectly believe they don’t have time to work on the “soft issues” related to the human side of business. Obviously, a lack of understanding about the impact these “soft issues” have on the bottom line contributes to their being put on the “nice to do if we had more time” list.
Lack of Awareness - When people are promoted to the managerial level because of their technical prowess, but lack effective interpersonal skills or an understanding of human nature, they are more likely to dismiss the human side of attraction and retention as “touchy feely” or just plain irrelevant.
Arrogance - Many companies show the same arrogance toward their employees as they do to their customers. They assume they know better than their customers and their employees about what would satisfy them, and don’t bother to find out if they’re correct. If they do ask, and the feedback isn’t positive, they dismiss it as irrational and impertinent. Even when their workforce is hemorrhaging, they adamantly maintain that employee requests are inappropriate and impossible to satisfy.
“Quick Fixitis” - If managers can order an Employee Appreciation Day or an Employee of the Month award, they can remove “Implement Attraction and Retention Program” from their “to do” list. The feeling of mastery that accompanies the completion of a task is so intrinsically satisfying - especially to a harried manager whose work is never done - that it blinds us to whether the solution is effective or not.
The unfortunate truth is that quick fixes and gimmicky approaches to attraction and retention aren’t effective; they can even have the opposite effect. Because people are very sensitive to insincerity, workers are quick to notice a disconnect between staged events and corporate proclamations, and the day to day treatment they receive by their manager and the company as a whole.
HR MANAGERS CAN HELP THEIR ORGANIZATION BECOME A TALENT MAGNET BY HELPING MANAGEMENT...
...Recognize the Importance of Listening To The Voice of THEIR Customer - The Employees
Assuming customers are happy without asking them if you’re right, is a surefire way to lose customers - and employees - left and right. Talent Magnet organizations don’t assume that what they are doing is working; they are constantly engaging in conversations with their workforce through employee satisfaction surveys, anonymous suggestion boxes, company-wide meetings, focus groups, and informal conversations. Importantly, they also work at creating a culture where honesty and openness is supported, so employees feel safe enough to voice their concerns.
...Identify From Their Own Experience What Works, And Doesn’t Work
When people compare their own experiences at positive and negative workplaces or with their best and worst boss, they find it difficult to deny the huge impact organizational culture and management practices have on performance and loyalty. HR Managers can help management identify those management practices and organizational qualities that lead to high performance and employee loyalty. They can do this by facilitating discussions among groups of managers, and then using this information, along with an employee survey, to assess what needs to be addressed in the organization.
...Recognize The Importance of Management Development
According to Quinton Studer, president of Baptist Hospital, Inc., of Pensacola, Florida, “the number one things companies just don’t want to spend money on (is) middle-management development.” How employees feel about their organization is profoundly influenced by how they feel about their boss. When they have a boss who is respectful, inspiring, and appreciative, it’s hard not to be loyal. Thus, management development is a wise investment for any organization seeking to maximize their ability to attract and retain the best of the best.
...Ask Themselves Tough Questions
This is perhaps the most difficult step to take. Creating a Talent Magnet Organization requires courageous self-examination by management at all levels about how well they lead and about the kind of company they have created. This process of engaging in self-examination, and engaging employees in honest conversation about how well the company is run, can yield critical information about what steps need to be taken to transform an organization into a Talent Magnet. See the side bar for a few questions to get the process started.
Conclusion
It takes more than a generous benefits package and competitive salaries to attract and retain talented employees. It takes addressing the fundamental need people have for Pride, Meaning and Purpose, Appreciation, Opportunities To Learn and Grow, and Respect. Leaders at Talent Magnet organizations realize this, and continuously strive to address these fundamental human needs. By listening to the voice of their customer - their employees - and honestly engaging in self-examination, they can create an organization that is a magnet for great employees.
Is Your Organization a Talent Magnet?
The following questions can help management begin the process of exploring if they are doing the things that create a Talent Magnet organization. Just as in customer service research, to effectively answer these questions requires management soliciting feedback from its customer - the employee. Without their input, all answers are merely conjecture.
Some Questions to Ask:
1. How do our people feel about being here?
2. Are we the kind of organization that inspires pride?
3. Are the products and/or services that we bring to the marketplace, and the operational decisions we make, worthy of pride?
4. Do we have a compelling mission and vision - and do we “walk our talk”?
5. Do we communicate our mission and vision to employees, and do we communicate how they contribute to it?
6. Do we work with employees to design their jobs so they are as meaningful and intrinsically satisfying as possible?
7. Do our employees feel appreciated?
8. Do we believe that training is important; and are we acting accordingly?
9. Do we provide opportunities for employees to grow by taking on more responsibility and developing new skills on the job, and could we provide more?
10. Do employees feel respected?
11. Are we open to feedback about how we manage, or do we assume that what we’re doing is right, and its their job to adapt to us?
12. If I worked for me, how would I feel about being here?
13. Do we try to get the most work out of each employee, regardless of the toll it takes, both on them, and on the quality of their work?
14. Do we show respect for employees life outside of work?
15. Can employees discuss openly with management their work/life balance needs?
16. Do we have a workplace environment where people generally have fun and enjoy each other’s company?
17. Can people be open and honest about how they feel and what they think?###
David Lee is President of HumanNature@work and has worked with organizations and presented at conferences throughout North America and overseas. He is the author of How to Thrive in a High Stress World, and has lectured on and written about a broad range of topics, including: attracting and retaining employees, creating a customer service culture, reducing the cost of workplace stress; and helping employees thrive in today's changing workplace. To contact David Lee, e-mail him at info@HumanNatureAtWork.com
