Employee Turnover and How to Win The War

According to a recent Forbes report the labor market is shrinking. There is already competition for top talent, and it appears this economic cycle will be here for a while:

“The headline report adds new jobs and subtracts quits, layoffs, retirements and other separations. The gross rate at which people are quitting is now three million people per month, twice what it was in the recession. And companies are trying to hire, both to replace quits and retirements and also to expand. Six million open positions show up in the official reports, and businesses would certainly hire even more if people were available. But this recent economic growth is not the whole story. The tight job market will continue for a decade or more.”

The impact is crippling for many employers. Josh Bersin estimates the total cost of losing an employee – which includes such factors as lost productivity, knowledge drain, and company morale – at a stunning 1.5 to 2.0 times the employee’s annual salary.

In addition, there is a longer hiring cycle.  At an average 27.6 business days per position, the lag time between posting new jobs and getting them filled is already well above pre-recession levels and approaching its highest mark since the turn of the century.

This new trend in unemployment will necessitate some new strategies including: 

Reassess your total compensation package — but not all compensation comes in the form of cash. Employee discount programs and other perks like flexible work hours can be inexpensive, and retooled recognition programs are yet effective ways to boost your overall benefits package.

Invest in people -- Job skills training, for example, not only pays off in overall productivity – lessening the need for additional FTEs – but individuals with career development opportunities report higher levels of overall job satisfaction. Supervisory training is a similarly critical piece of the puzzle, as more than half of U.S. workers have reported quitting a job to escape a bad manager.

Leverage technology to expand productivity -  computing power and technical innovation has led to an explosion of targeted, low-cost productivity apps for virtually every department within an organization.

Tap into global sources of labor - reach out to staffing organizations that specialize in international outsourcing. You may discover opportunities to test (even temporarily) the skills and quality of global talent for various positions at a relatively low cost.

Tap the power of your own employees – now is the time to implement an employee referral program that awards your employees for introducing a family member, friend or acquaintance to work for your company. 

For more information on Ultimate Choice Inc.’s products or services or other white papers please contact us at Ultimatechoiceinfo@cox.net

Best Companies See More Value in Incentives

The 2017 Incentive Buyers Conference took a look at a research study of how much attention the best performing companies pay to their incentive, recognition and reward programs.

The research - "Things Top Performing 10 Businesses Do Differently in Recognition and Reward Programs" - showed quite clearly that the most successful firms view incentive programs as a strategic business advantage over average firms.

The IRF set out to look at what top performing companies do differently when it comes to their sales, channel, and employee reward and recognition programs. Instead of using a pre-set list like the Fortune 500, the IRF surveyed 400 companies and found 177 that met its definition of top performers: at least 5 percent annual growth in either revenue or stock price as well as 90 percent customer and employee satisfaction scores.

What the study found is that when it comes to non-cash reward and recognition programs, top performing companies do a lot of things differently, starting with how likely they are to use these incentive programs, and how important they feel those programs are to their success. Compared to average firms, top performing companies:

·       Use non-cash rewards and recognition in 90 percent of their sales programs compared to 75 percent of average firms

·       81 percent vs. 59 percent in channel sales

·       88 percent vs. 77 percent in employee loyalty and engagement programs

Highly successful companies are far more likely to have all of their programs organized under a single umbrella than average performers -- 350 percent more likely when it comes to sales incentives and 250 percent more for employee recognition programs. In addition they are substantially less likely to use service anniversary programs, with only 39 percent celebrating years of service, compared to 51 percent of average performing firms.

Another strategic difference is that the best companies are twice as likely to design their reward and recognition programs to have the broadest reach possible, with over half aiming to include as many employees as possible, not just the top performers. That's a tactic used by less than a third of average performing firms.

Clickhere for a copy of a whitepaper on this research.

For more information on Ultimate Choice Inc.’s products or services or other white papers please contact us at Ultimatechoiceinfo@cox.net

What is the Most Powerful Workplace Motivator

Is this a rhetorical question? Is there really a definitive answer to the most powerful motivator for workers?  Thousands of employee satisfaction surveys have been conducted partly to uncover the answer.  Some lists derived from these surveys rank what employees want, but none have been definitive.

A while back, Ian Larkin, Assistant Professor UCLA Anderson School of Management, said that most powerful workplace motivator is our natural tendency to measure our own performance against the performance of others.  He does seem to have some credibility in this belief based on the work of David Rock and his book “Your Brain at Work”

In which he explains that the balance of how we feel amongst others is actually dictated by our perception of status.  Your brain maintains and continuously updates complex maps of the "Pecking Order" of the people around you.

Any parent can tell you that a surefire way to start a fight among siblings is to major fight is to offer one child a treat and offer another child an even bigger one.  Suddenly, a special treat turns into a great injustice.

In the workplace it is an employee’s natural tendency to measure their performance against the performance of others.  Traditional economics has held the very

rational view that simply having financial incentives causes people to work harder. 

But Larkin’s research suggests that in deciding how hard we work and how well we think we're performing, social comparisons matter just as much.

The sales incentive industry has known for years the value of peer recognition. Salespeople often forego the opportunity of large future commissions to achieve the status as member of a special sales club. At some point, incremental commissions are outweighed by the desire to be the best.  Research also showed that salespeople who are right on the margin of club induction are actually willing to pay to get over the margin and into the club.  In these instances the status of club membership is a very powerful motivator.

So, what is the best motivator in the workplace?  We don’t think the work by these behavioral completely answer the question, but they certainly give us room for thought when we plan our next incentive or recognition program. 

For more information on Ultimate Choice Inc.’s products or services or other white papers please contact us at Ultimatechoiceinfo@cox.net

Do You Measure the Effectiveness of Your Recognition Program?

It still amazes us that many companies invest millions on employee recognition programs, yet a huge percentage fail to measure the effectiveness of these programs. 

With the added emphasis lately on importance of employee recognition in an overall employee engagement effort, analysis and measurement should be a given…but it isn’t.

When you effectively measure the outcomes of your recognition programs you stand to benefit tremendously, as recognition efforts are increasingly being viewed as a powerful strategy to boost employee morale and productivity levels.  Higher engaged employees have higher productivity and lower turnover. 

If you are not measuring your recognition efforts, here are five basic to start with:

1. Determine the Metrics of Recognition Success - The success of any program requires a clear understanding of what defines success prior to program launch.

2. Establish a Performance Baseline for Recognition - Once the metrics for success have been established, the next critical step is to determine a baseline of current performance.

3. Measure Regularly and Consistently - After the baseline has been established, the program should be measured regularly and consistently to ensure the effort stays on target.

4. Analyze Results and Look for Trends - When recognition outcomes are available through the program itself and from employee surveys, the results need to be compared and analyzed to uncover important trends. 

5. Report Results Back to Employees, Managers and Executives in a Meaningful Way - Significant results should be reported back to key audiences, including employees, managers and executives with outcomes that are most meaningful to each audience.

For more information on Ultimate Choice Inc.’s products or services or other white papers please contact us at Ultimatechoiceinfo@cox.net