I would argue you should never shift focus away from retention, but this is perhaps for another blog post. The reality is that retention has simply not been a priority for most businesses in the past 18 months and that needs to change.

An extraordinary legacy of the recent economic downturn is its creation of a new kind of employee; one who has seen, felt and experienced first-hand the trauma of working inside an organization when the economic world outside is crumbling. These employees are the witnesses. The survivors. And while they’ve been seriously disgruntled for months now (Great Recessions will do that), they’ve stuck around because of limited options elsewhere.

That’s changing.

Now, as the economic storm is ending, companies are hiring again. And so the fear of unemployment which held your workforce together is fading (it may be already gone). Your employees are polishing their resumes, getting in touch with contacts, sharpening their interview skills, and emotionally have one foot out the door. They’ve just been waiting for the skies to clear and for the storm to pass.

And – of the utmost importance to understand — they’re not doing this out of disloyalty. They’re doing this because they aren’t happy (to put it mildly) with what they saw, or how they were treated.

That means, frankly, that some of your best performers – the ones you kept — are poised to walk out the door, take their knowledge capital with them, and leave you with the costs of hiring and training new staff.

Your challenge? Stop this scenario before it happens by implementing smart retention strategies that work.

The Retention Strategies

The old “3-R’s” of realistic expectations, rewards and recognition all still matter, and not even a Great Recession can shake that.

Yet in addition to these staples of retention wisdom, you need to modify your approach in light of what has transpired in the workforce; both in your unique workplace, and in the overall sector/market.

Below are four best practices that can shape and direct your retention efforts.

• Communicate effectively and honestly. Times have been tough and stress has influenced your’s and your colleagues’ behaviour in a lot of undesirable (okay, ugly) ways. Now that things are calmer and cooler, don’t behave as if “nothing happened.” Talk about decisions with your employees; explain some of the reasons behind them, and be open about where the company is and where it’s going.

• Accept responsibility (or at least take ownership) of regrettable actions. If your employees respond to your authentic communication efforts with sadness or anger, take it – own up to it. Your goal is to leave as little room for rumour and fear as possible.  If you — or your company, of which you were the unlucky representative — made decisions which weren’t “employee friendly” (you know the ones we’re talking about), the blunt fact is you can’t do much to make up for that. The wound is there; it can’t be undone. However, you can and should own up to the actions and be prepared to accept some unhappy, hurt, and angry responses.

• Focus on supervisor-employee relationships.  Broad retention strategies have their place, but the relationship between an employee and his/her boss is what really counts. One of the cruelest consequences of the economic turmoil has been an erosion of personal relationships and trust. By fostering supervisor-employee relationships, you help restore this bond – and keep a valued employee from leaving for greener pastures.

• Focus on compensation.  Many non-financial factors influence retention and you should focus on those. However, don’t delude yourself into thinking they replace compensation. They merely enhance it. In short: compensation matters. If it’s time for you to give employees a bump or a bonus, now is the time to do it.

Context is Everything

In closing, remember: while these practices are all good ideas under any circumstances, your challenge is to apply them in context of what has transpired over the past months. So in other words, if after reading the best practices above you figure that you’re “doing all of this stuff already and have been for years,” then re-visit this belief and ask yourself: am I modifying these to reflect the new, post-recession labour market reality?

Chances are, you aren’t.

However, that’s no cause for alarm – not yet. Because you’ve identified a critical retention issue in your company before it becomes an expensive, time consuming and possibly un-solvable problem. That’s something to feel good about.

Your clear top priority now is to implement retention strategies that work and make sense in the new “recession aftermath” world. Be assured: it can be done, and the sooner you start, the safer, stronger, and more successful your company will be.

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Have we become the do it yourself (DIY) generation? Have we been sold on a philosophy that I can do pretty much anything as good as the experts?

Just look at the growth in DIY retailing….. home furnishings and hardware stores that have sprung up in the last decade:  Home Depot, Lowes; the increase in DIY instructional magazines and videos; and the new DIY Network cable channel.

What has driven this phenomenon?  Where did it come from? Likely it originates out of the sense of accomplishment to be derived from ‘doing it yourself.’ It’s about taking ownership. It is about self-reliance. It’s also likely a bit ego driven.

For most people it is also about cost.

There is a belief that there are significant cost savings in doing things yourself.  However, I would wager that for every person that was able to pull off redoing their washroom at home there are far more who failed or ended up spending more personal time and money than anticipated.

The DIY retailers sell you the raw materials, the instructions and the tools to undertake a project but they are missing the most important ingredients of planning, experience and expertise.

Not everything can be DIY.

For example, you require an electrician to certify the work you have done or your home insurance may be null in void in the event of an electrical fire.

Similarly why put your organization at risk thinking that you can handle very technical components of your business, like HR. Anyone can handle the transactional aspect of HR such as benefit administration but it requires true experience and skill to handle a mass layoff or prevent a union drive from succeeding. HR is not a DIY.

TouchBase by Rypple – This comes from a Toronto-based company that is all about making feedback really simple and fluid in the workplace.  They took their Rypple feedback tool, applied the redeeming values of ‘performance reviews’ and created TouchBase.  Its basically a one page worksheet a manager and employee spend 15 minutes filling in with 2-3 short-term tactical goals.  Then the employee works towards its completion, and of course uses Rypple to solicit feedback from their peers.  Then at set intervals, which might be weekly, monthly or quarterly, they discuss results and set new tactical goals for the period.

This way everyone has a nice database essentially of a person’s achievements throughout the year.  Then you can just review the TouchBase worksheets for a year, and cut your annual ‘discussion’ down to 10 minutes.

Quarterly chats – The worst mistake a manager can make it not providing negative or positive feedback to employees throughout the year.  Though I certainly recommend sharing your feedback right away, having a brief 15-30 minute conversation on a quarterly basis is a good way to provide timely feedback and have more meaningful conversation.  This idea has also been called the ‘puppy theory.’

Break it down to a 1-page form of the essentials – There is nothing worse (for everyone involved really), than filling out pages and pages of questions, goal statements, and scores for how well you applied the company mission statement to your work.  Ick!  Decide what is really important to your company and focus on those key elements and how they play into each employee’s role.  “Keep it real” and genuine and the process will be a positive experience for all.

1. Paper trail = Safety Net. When it comes time to dealing with a performance issue or a termination, good documentation is vital to substantiating a case. Without good, current documentation you are exposing the organization to the possibility of legal action by the employee, in the case of termination and/or undermining of the integrity of your performance management system, which will be perceived as arbitrary and unfair. Particularly in Canada, companies need proof to back up any actions.
2. Be honest with people. If you have something difficult to say, say it.  Its way more important you tell employees the truth than lie to them about performance.  Remember that paper trial?  Failure to address performance issues is unfair to the employee, the employee’s co-workers and the organization. It also leaves the manager having to spend more time on continually addressing the aftermath of a poor performer. Employees need to know (and I would wager…want to know) how they are performing.  It is a key component to becoming a better employee.
3. Provide feedback year round, don’t save up. If you have a folder of documents you’re saving up for the annual review and the employee doesn’t know about any of it – shame on you.  You’re doing a great disservice to your company and the employee.  Plus, younger employees tend to really appreciate regular, short feedback.
4. Talk about the positive too. Annual Reviews are not just about problems or complaints, so make sure you talk about what is working.  If you only discuss negative issues with an employee you intend to keep, its going to be tremendously de-motivating.
5. Don’t compare employees. For example, “If only you did reports like Jim does.”  The performance review is for the benefit of the employee and not anyone else.  There should be no comparisons or discussions about other employee’s performance. This is one of the fastest ways for a manager to lose the trust and support of the employee. The employee can justifiably assume that the manager has breached confidentiality.

Next up in for our series of annual review posts, we’ll discuss alternatives to the whole annual review process.

1. Make sure its relevant to the company’s goals: And make sure you’ve communicated those goals to your employees.  Like Nathaniel at Rypple says, “How can an employee be productive if she doesn’t know where to focus her efforts? Clearly defined company goals increases motivation and engagement.“
2. Keep it Simple Silly: I don’t know how many annual review worksheets I’ve filled out that seemingly went on and on and kept asking slight variations of the same questions.  Its poorly executed performance reviews that have dragged the whole process down, and resulted in books like “Perfect Phrases for Performance Reviews“  (Please don’t purchase it)
3. Go all electronic on the cheap; use Google Docs, Wufoo, Survey Monkey to collect data.  Save yourself a papercut or two and put your worksheets online.  You can use a number of online tools for free or cheap and the tools are pretty easy to work with.
4. Train the managers so they understand why its important, and be consistent with ratings. Nothing kills the process faster than a manager who doesn’t provide good feedback – like using that book I won’t mention again.  Talk to your managers, and make sure to discuss scoring so everyone is consistent.
5. Consider a platform provider: Companies like Halogen have put together very dynamic performance review platforms so you can build all the forms online, do the review process, and run all the calculations in a streamlined process.  Its not right for every company, but might be a good fit for you.
6. Set achievable goals: too often we set “wishful thinking” goals for staff during the performance review – use real numbers and metrics and only set goals for things an employee can positively impact without tripping over 10 stumbling blocks along the way.  Don’t leave the door open for excuses by setting a goal around a business activity that is fraught with broken systems and processes – it is not only a waste of time but incredibly de-motivating for your employee.

We have two more posts coming this week about the annual performance review; including tips for managers, and some smart alternatives to the whole process.

Size Counts

Economies of scale are the primary method an HRO firm can reduce a business’ operational costs.  By pooling several businesses together, HRO firms aggregate needs for benefits, advice and legal expertise.  Additionally, they can manage routine HR tasks more efficiently as the talent and infrastructure is already in place.  When a small business joins the HRO firm, they simply access these existing programs at reduced rates and a minimal investment of time.  They can jump onto the HRO’s programs and platforms with little start-up time or expense, and can hit the ground running.

Other reason to outsource human resources include:

• Access to outside expertise
• Improving service quality
• Ability to focus on core expertise
• High cost of remaining compliant with rapidly changing legislation
• Eliminate high volume of low-value transactional activities
• Reduce management distractions away from core business
• Leverage existing staff to focus on key competencies
• Reduce transaction costs

Expanding into Canada

Outsourcing is also a strategic advantage for foreign companies entering the Canadian market.  An HRO firm can quickly adopt a business’ policies to be compliant with Canadian legislation to on-board staff and efficiently pay their Canadian employees without any headaches.

The H.R.O.I.

Studies show once HR operations are outsourced, many companies show a strong return on investment.  IDC, a global provider of market intelligence, conducted a survey of executives and reported almost 85 percent of respondents saved as much as they spent on outsourcing.  And the savings, according to 95 percent of the respondents, went toward operational performance and innovation.  Check out some of our testimonials.

This new law will give businesses (with more than 5 employees) a few tasks to complete in order to be compliant.  So here are the top 5 things Employers need to know about Bill 168:

1. Definition: with the bill comes formal definition of workplace violence and harassment, which gives the OHSA some teeth on the subject.  Implication: Employers will need OHSA compliant policies, have them posted and formally reviewed at least annually.
2. Assess the Risk: Employers will need to conduct risk assessments for violence and harassment in the workplace, share the results with the Joint H&S committee, and re-assess “as often as is necessary.”  Implication: This is paperwork you definitely want in the office to protect your business in the future.
3. You need a program to measure and control risks, a published process to request immediate assistance, report and investigate incidents or complaints in the workplace.  Implication: Employers need to document how they will monitor and handle risks and incidents, and of course follow the program in the event of violence or harassment.
4. Precautions: Become educated about domestic violence, and able to recognize the signs, and learn appropriate ways to help and respond.  This applies to any place an employee works, except in their personal homes though you probably need to pay attention.  Implication: Employers cannot turn a blind-eye to any warning signs.  Note: this part of the Bill is a little murky, so its an area we’ll be watching closely.
5. Inform:  Employers will need to inform and instruct employees about the policy, program, and provide information related to a risk of violence from a person with a history of violent behaviour.  Implication: Once the policy and program are ready to be implemented, get the staff together to inform and discuss.

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1. Who “owns” the data? Make sure all employees are covered under data ownership agreements, that state all work-related data and applications are the property of the company.  And at the time of termination, etc that transfer and erasure of the data must be witnessed and verified by the internal IT resources.  Update and utilize intellectual property and confidentiality agreements.
2. A Security Blackhole?! Provide all your staff with security and anti-virus programs, and conduct occasional audits to verify proper security measures are in place.  Include a security agreement stating the employee will take all necessary and mandated precautions.
3. Who owns the laptop? Your company puts in a couple grand, but the employee bought it, so then who owns it?  Before the employee gets the money, require a “graduated pay-back” of the funds.  For example, each month represents $200 depreciation of the funds – so if you gave $2000 and the employee leaves 6 months later, they owe back $800.  Check with your accountant for the best way to handle it.  Utilize a waiver to satisfy any employment standards requirements regarding pay deductions.
4. Make it a choice.  Allow employees the option of a company provided computer or participating in a BYOC program.  Some employees may not be interested in purchasing another computer.