Peter Watson's Presentation on Talent Retention at the 2011 HR Summit

Preserving Key Employees and Avoiding Talent Drain to Win the Human Capital Fight

Peter WatsonHR Director - AstraZeneca

5 March 2011HR Summit – Gold Coast Australia

Topics

• Framework for the Talent Retention Challenge

• What drives retention

• The role of the Manager

• Case Studies:

• AZ Managers’ Program

• Flexibility with Accountability

• Targeted Retention

| Title of presentation | 00 Month Year (Go Header & Footer to edit this text)2

3

What Drives Retention?

Quality of Manager

Work Challenge

Career Development

Work/Life Flexibility

Remuneration

Talents

Source: CLC April 2004| Title of presentation | 00 Month Year (Go Header & Footer to edit this text)

Driver impact on employee performance

50.0

25.0

0.0

Driver impact on employee intent to stay

50.0

25.0

0.0

Managers Control a Majority of the Most Effective Drivers of Employee Performance & Retention

Impact of top performance drivers Impact of top retention drivers

Manager activitiesNon-manager activities

Line managers directly influence a disproportionate share of the most effective drivers of performance. The two strongest manager-influenced drivers, for example, are:• Providing fair and accurate informal

feedback: 39% impact on performance• Clarifying employee performance

expectations: 36% impact on performance

Line managers also control a majority of the most powerful drivers of employee intent to stay with the organization. The two strongest manager-influenced drivers, for instance, are:• Facilitating internal communication:38% impact on intent to stay• Advising on career development:37% impact on intent to stay

Source: Corporate Leadership Council research.

The Role of a Manager as a “Connector”

Two commitment types Four points of commitment

The results of commitment:Discretionary Effort & Intent to Leave

Rational Commitment

Emotional Commitment

While employees can rationally and emotionally commit to 4 different points of the organisation…

1. Day to day work2. Teams

3. Line manager4. The organisation

…the unique role as ‘connector’ enables managers to strengthen employee commitment in all 4 directions.

JobJobTeamTeam

EmployeeEmployee

OrgOrgMgrMgr

Discretionary EffortAn employee’s willingness to go ‘above & beyond’ the call of duty

Intent to StayAn employee’s desire to stay with the organisation

PerformancePerformance

RetentionRetention

Source: Corporate Leadership Council research.

The 5 Top Retention Levers in the Hands of a Manager

Role 2Managing the employee’s relationship / engagement with the organisation

1. Amplify the good, filter the bad

2. Connect employees with the organisation and its success

3. Instill a performance culture

4. Connect employees with talented co-workers

5. Demonstrate a ‘credible commitment’ to employee development

Source: CLC


Case Study 1

AZ Managers’ Programme

Managers’ Programme Overview

How to help managers’ reframe their role?

How to help managers see both formal and informal opportunities to engage their employees?

Move beyond theoretical concepts?

The answer….


Raw unedited anecdotes from employees describing good, great and poor experiences of work life with AZ

Anecdotes – an example of the impact a manager can have

“at around nine months of being in and I got the conversation with my

manager where she said, now where do you want to go. And I said, hey, are

you trying to chuck me out already. I’d rather like to keep this job if you don’t

mind. But the conversation was tuned to the fact of, okay, well you are

getting close to the first year. Where do you see yourself being? Where do

you want to develop to? How can I help you develop that?” Well, it was an

amazing vote of confidence because it was, okay now I feel like I’m part of

this and I can develop. And she said, okay, whatever you want to do, I’ll

help you in any way I could possibly help you to get to that goal. And that’s

was an amazing statement; particularly so early on and that was a real

endorsement.”

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Feedback from Managers after the Programme

Anecdotes had strong impact on managers, and gave them insight into the power of everyday interactions

Anecdotes / real stories not ‘case studies’ – added realism to course and allowed group members to easily relate and take home learnings

Every interaction with an employee is either a chance to motivate or de-motivate

Quote from a participant, “The most ‘real’ management training course I have been on”


11 | Title of presentation | 00 Month Year (Go Header & Footer to edit this text)

Case Study 2

Flexibility with Accountability

The Challenge & The Opportunity

Uncompetitive in the external

market

Inconsistency of flexibility across

the business

Feedback from employees that we’re

“inflexible”

Clear need to change how flexibility is managed at

AZA

Flexibility with Accountability

Principles of Flexibility

Employees are not entitled to flexibility*

Equity does not guarantee

employees the same outcome

Flexibility is a two-way street

Employee – manager

collaboration is critical

Performance matters

Meeting business goals is the company’s top priority

Performance is not defined by physical

presence

Flexible Working Arrangements

You daysWorking From Home – Ad hoc

Flexible start Finish timesWorking outside business hours

Lifestyle Friendly Leave

Toolkit

* Legal requirements exist to provide flexibility

Key challenge: balance flexibility with accountability

Principles

• Performance matters

• Meeting business goals is AZA’s top priority

• Performance is not defined by physical presence

• Equity does not guarantee employees the same outcome

• Flexibility must be a two-way street

• Employees are not entitled to flexibility*

• Employee-manager collaboration is critical

* Exceptions apply in case of legal requirements

Description

• Only employees with “meets expectations” performance reviews may request flexible scheduling

• The needs of our customers and teams must be fully addressed when designing flexible work arrangements

• Acknowledges that from time to time, employees can and do perform work activities from remote locations eg. Home

• A flexible scheduling solution need not and will not be the same for all employees

• Established flexible work arrangements must themselves remain flexible

• Flexible scheduling is not appropriate for all employees or positions within the company*

• Open dialogue between managers and employees is crucial

AZA’s Flexible Work Arrangements

Each of the offerings are designed to provide flexibility with accountability consistently across the business

• You Days (Formally RDO’s)• Recognising evening

business activity• Work from home (adhoc) • Flexible start & finish times• Lifestyle Friendly Leave

Flexible Working Arrangements at AZA

Vacation Care Programme

Offered 5 weeks per year

Children aged 4 – 13 yrs

Run by YMCA – qualified staff, excellent programs

On-site – AZ catering

Flexible booking – single days OK

Fantastic Feedback from staff

Flexible Work Proposal Toolkit

The toolkit is designed to help managers discuss and explore flexible work arrangements with their staff. It provides guidelines for managers and staff on:

• how to plan, • implement, and • communicate a flexible work arrangement. The toolkit provides guidance for managers to

assess requests on a case by case basis.

Flexible Working Arrangements on the HR website

FWA Overview

FWA Guide

FWA FAQ

FWA Toolkit

Posters, emails, AZTV, stress puzzle, brochure

5 weeks February to March, 2010

Average Tenure has Increased by 50%

Tenure Profiles(YTD 2007)

Percent

0

20

40

60

80

100

Sales Rep Territories* PCAM Sales Manager

1-2 yrs

3-5 yrs

>5 yrs

2-3 yrs

<1 yr

181 5 29

2.6 12.3

7.3Average Tenure

25

2.2

Note: * Excludes 3 staff with tenure > 20 yrs; ** New roles due to introduction of xxxxxx

<1 yr**

Today average

tenure is 3.9 years

Summing Up

Build a Brand• Alignment with EVP

Create a Supportive Culture• Manager engagement• Principles, Mindset & Behaviours

Get the Mechanics in Place• Policies• Guides• FAQs• Toolkits


Case Study 3

Targeted Retention of Talents

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Determining the Need for a Targetted Retention Plan – Assessing Departure Impact and Risk

Departure Risk*

De

pa

rtu

re I

mp

ac

t

Low High

High

• Possesses highly sought after or scarce skills

• Ready for a job move now – actively seeking

• Impacted by recent organisational change

• Unsuccessful in internal selection process

• Dissatisfied with aspects of employment

• Business critical project or initiative would be negatively impacted

• Business performance would be adversely impacted

• No suitable replacement/succession candidates exist

• Very tight labour market, skills required in short supply – expensive to replace

• Corporate knowledge and experience very difficult to replace

Understand individual’s preferred financial and non-financial incentives and critical employment factors.

Openly engage individual with possible retention actions – create Retention Plan.

Identify potential successors

Understand individual’s preferred non-financial incentives and critical employment factors.

Review questions on Risk Assessment Tool and act to strengthen assessment.

Work to help individual produce greater value e.g. stretch assignments, coaching feedback, performance objectives, learning and development opportunities.

Identify potential successors and make contingency plans to replace if necessary.

Redeploy to position where he/she can have greater impact and add greater value to AZA and decrease probability of departure.

* Refer Talent Risk Assessment Tool

Targeting Retention of Talents

1. Make an assessment of ‘departure risk’

2. Consider individual retention drivers

3. Formalise in a Retention Plan

4. Communicate with the Employee

5. Follow up and ensure action


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Targeted Retention Plan

1. Personal Information

Name Line Manager

Current Role Years in Current Role

Previous Role Years in Company

Date of Assessment

3. Action Plan

Retention Objective Retention Activity Timing Accountable

4. Other Comments

Authorisation Divisional Director Managing Director Date Date

2. Compensation & Bonuses

Salary Actual Increase Q2 Q3

Bonuses

5. Tracking

Name Comments Date

Name Comments Date

Name Comments Date

26 | Introducing AZengage| Octoberl 2010

Peter Watson's Presentation on Talent Retention at the 2011 HR Summit

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Transcript of Peter Watson's Presentation on Talent Retention at the 2011 HR Summit