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CANDIDATE SELECTION
TRAINING
MOTIVATION
TALENT DEVELOPMENT
RETENTION
CHANGE
CANDIDATE SELECTION
Lower Risks
Less Time to Fill
Lower Costs
Internal Competition
Faster Integrating
Development Opportunities
New Perspectives/Ideas
Lower Training Costs
Competitor Insights
More Options
Less Options
Higher Training Costs
Conflict Amongst Managers
Higher Costs
More Integration Efforts
Higher Recruiting Risks
Higher Turnover
Internal Hiring External Hiring
False
Negative
Right
Negative
Right
Positive
False
Positive
Actual
Performance
High
LowPredicted
PerformanceHighLow
RECRUITING RISK
Position Job
Responsibilities
e.g. teacher, butcher,
manager, sales
representative
Employee
Job Family
JOB – POSITION - EMPLOYEE
CRITICAL INCIDENT TECHNIQUEExample : Waiter in a Restaurant
Critical Incidents Requirements
Restaurant is crowded and
guests become impatient
Guests complain about inedible
dishes
A drunken group of guests with
no money in their pockets
A guest wants to learn more
about minor details of a specific
wine
The cook is sick and his deputy
is out of his depth
Friendliness
Speed
Resilience
Knowledge
Direction
Coolness
Diplomacy
Empathy
Why is not
recommended to
remind people about
their job description
after they are hired?
Talents
Competence
MotivationInterests
Expectations
Attitudes
Knowledge Personality
Age, Gender,
Look?Contacts
RELEVANT CANDIDATE DIMENSIONS
... and how they might be judged
Former
Development
CV
Motivation
LetterInterview
Reason to
Apply
Private
Engagement
Education Appearance
Photo,
AppearanceReferences
Candidate 1
Engineer
Intelligent
Teamplayer
Confident
Result-oriented
Ambitious
Creative
Candidate 2
Engineer
Intelligent
Teamplayer
Confident
Result-oriented
Ambitious
Creative
Social Judgement Biases
First Impression
The tendency for a perceiver to rely on early cues or first impressions.
Recency Effect
The tendency for a perceiver to rely on recent cues or last impressions.
Projection
The tendency for perceivers to attribute their own thoughts, priorities and feelings to others
Stereotyping
The tendency to generalize about people in a social category
Contrast-Effect
The tendency to judge upward or downward because of a comparison with another candidate who was recently judged
Halo-Effect
The tendency to provide similar ratings across different dimensions based on an overall judgement
Recruiting-Funnel
Pre-Selection
Telephone-
Interview/
Test
Personal
Interview
Assessment
Center
Accepted
Job-offer
HiringApplication 10:1 2:1 5:1 2:1 3:2
Myers-Briggs Type Indicator (MBTI)
Extraversion Introversion
Sensing INtuition
Thinking Feeling
Judging Perceiving
Favorite World
Information
Decision
Structure
Interview Structure
Time
Tension
Informal
Talk
Company/Job
Presentation
Questions
about the
applicant
Open
Questions
Next Steps
What both sides want to know in an Interview
Why am I invited?
What can your company
offer me?
What kind of employer are
you?
What distinguishes your
company from others?
Can I afford to work at your
company?
Why are you here?
What can you do for us?
What kind of person are
you?
What distinguishes you from
others who have the same
skills?
Can we afford you?
Applicant Employer
INTERNAL & EXTERNAL HIRING
Steps in a Successful Internal Recruitment
Process
Internal Recruitment Policy
Job Posting
Internal vs External Comparison
Screening Employees
Interviews
Feedback
LEARNING
On boarding
Orientation
Skills development
Career Advancement
Cross Functional
Mandatory Requirements
MOTIVATION
Intrinsic motivation
Extrinsic Motivation
How to Motivate and Discipline Employees
Identify Employee Expectations
(Meet Brand /Company goal, Arriving to work on time, Properly clocking in and out of
a shift, Exhibiting proper cash handling practices, Performing daily cleaning tasks,
Implementing customer service techniques)
Guidelines for Rewarding Employees
(Reward specific achievements, Make all employees eligible,
Reward in a timely manner, Do not over do it, Appropriately reward the team)
Reward Ideas
(Give praise publicly, Make other managers aware, Schedule special events,
Create a rewarding environment, Yes you can reward coupon )
Guidelines to Creating a Discipline System
(Create a written policy, Inform employees of their duties, Document problem
behavior, Be consistent in judgment, Consider a flexible policy)
Types of Discipline Policies and Procedures
(Counseling and coaching, Progressive discipline policies: Verbal warnings,
Written warnings, Suspensions, Demotions, Termination)
Provide Employees what he/she is promised for
(Salary, Transportation, Insurance, Reward on time, Promotion Etc.)
WORK
What Do Employees Need To Know
Policies
Procedures
Set Clear Expectations
Give Constant Feedback (Positive/Constructive)
76% of all good Ideas are generated outside the
original Workspace
Vacation, Travel
13%
Misc. 1%
At
Workplace 4%
In interesting
Meetings 6%
In boring
Meetings 10%
Breaks 3%
Using creativity
techniques 1%
Business travel/
Way to office 11%
Spare time,
Sport 9%
Nature,
hiking 28%
At home,
watching TV,
Hobby, etc. 14%
Source: Füglistaller, KMU-Magazin Nr.7/2005
Survey Feedback & Organization Development
Survey
Feedback
Action
Planning
Implementation
Planning
Analysis
Conduct of a traditional Employee Survey
Survey Follow-Up
Survey
Administration
Analysis &
Reporting
Feedback/Commun
ication
Action Planning
Implementation
Evaluation
Preparation
Project Planning &
Setup
Prestudy
Survey
Development
Prior
Communication
Survey Development
Topics
Indicator
Questions
Pretest
Operation & Evaluation
Adjustment
Q12 (Gallup)
1. I know what is expected of me at work
2. I have the materials and equipment I need to do my work right
3. At work, I have the opportunity to do what I do best every day
4. In the last seven days, I have received recognition and praise for doing good work
5. My supervisor, or someone at work, seems to care about me as a person
6. There is someone at work who encourages my development
7. At work, my opinions seem to count
8. The mission/purpose of my company makes me feel my job is important
9. My associates (fellow employees) are committed to doing quality work
10. I have a best friend at work
11. In the last six months, someone at work has talked to me about my progress
12.This last year, I have had opportunities at work to learn and grow
Follow-up Process
All employees get all results of the survey even
when results are negative
Feedback of results follows a top-down approach
from to top-management to every single team
All teams get their own results compared to the
results of the superior organisational units
All units on all levels are encouraged to work with
their results and come up with related action plans
Issues which lay beyond an organizational unit‘s
responsibility will be passed on to the unit on the
next level
Relevance of Results depend on Targets
Survey Potential Target
SurveyPotential Target
TALENT DEVELOPMENT
Classic Approach of Talent Development
Performance
Management
Talent Review
Potential
Assessment
Training
Off-the-Job
Stretch Role
Assignment
Succession
Planning
Competency
Model
Source: Trost, A. & Jenewein, T.
(Hrsg., 2011). Personalentwicklung
2.0. Köln: Wolters Kluwer.
Competence
Experience
Knowledge
Predisposition
Personality
Competence
Action-related knowledge acquired
through repeated solution of practical
problems
Cognitive understanding of aspects
and how they relate to each other
Cognitive and physical abilities
determined through genetiv
predispositions (DNA)
Stable predisposition to demonstrate
similar behavioral patterns in similar
situations
Learned ability to successfully solve
problems or cope with given
challenges
Development Needs Identification
1 2 3 4 5
JobSenior Specialist
1 2 3 4 5
Position
Senior Specialist CRM
1 2 3 4 5
Employee
Garth McGrath
Development Needs
Creativity
Teamwork
Presentation
Project Mgmt
Mobility
Creativity
Teamwork
Presentation
Project Mgmt
Mobility
SAP R/3
English
Creativity
Teamwork
Presentation
Project Mgmt
Mobility
SAP R/3
English
Performance Management Cycle
Objective
Setting
Performance
Appraisal
Superior Objectives In an annual cycle employee and
their immediate supervisor agree
on objectives both in terms of
performance and development
Individual objectives derive from
superior objectives
In a backwards perspective
achievements/performance of the
employee will be reviewed
The annual meeting between
employee and supervisor is called
„appraisal interview“
Mid-Year Review
Purpose of Performance Management
Cascading strategic objectives from upper
hierarchical level to the bottom line
Alignment and focus of individual and team
performance with overall target
Clarity about mutual expectations within an employee-
manager relationship
Continuous learning and constant improvement of
performance through feedback and target-oriented
people development
Foundation for numerous key processes in human
resource management such as compensation, people
development, succession planning (horizontal
integration)
What if ...
employee and manager talk
about relevant aspects on a
daily basis anyhow?
employee and manager don‘t
usually to talk to each other
throughout the year?
problems should have been
adressed once they occurred?
the suppervisor struggles with
giving honest feedback?
superior objectives are not as
clear as they should be?
the benefits of the appraisal
interview are nor seen by
either the employee or the
manager?
the manager primarily acts
like a coach and not like a
judge?
there is already a natural
relationship between manager
and employee built on trust
and respect?
at daily work the manager has
limited insights into
employee‘s performance
The manager has limited
understanding of the
employee‘s professional
work?
objectives dynamically
change in the course of a
yearly period?
the employee doesn‘t fully
trust his/her manager?
Learning-Curve
Age
Performance Level
Potential
Maximum
Potential Criteria
Performance
In the past did the
employee demonstrate an
extraordinary growth in
his/her ability to meet
challenges?
Personality
Based on his/her
character will the
employee have a chance
to be seen as a role
model by others?
Motivation
Is the employee eager
and hungry to take over
more responsibility
relevant to the entire
organization?
What Training To Provide For Each Position
Shift Management - developing trainee managers in the skills and techniques
required to become effective in all aspects of running a shift.
Systems Management - targeting assistant managers and newly promoted
Assistant managers. This program covers all areas and systems, increasing the
manager's business knowledge. It also develops individual techniques.
Restaurant Leadership - introducing managers to the key skills needed to
Become effective restaurant leaders e.g. team-building, communication,
decision-making.
Business Leadership - focusing restaurant/general managers on the need to
Develop a business strategy that encompasses both internal and external factors.
Performance Potential Grid
C1Performance
Improvement
Measures
C2Manage Out
B Keep in Place
A1Plan next move
Provide extra
coaching
A2Apply multiple
development and
retention measures
A3Identify next
development
opportunity
Performance
Potential
High
Low
HighLow
360-Degree-Feedback
A focus person is evaluated
from different perspectives
(outside perception)
A focus person evaluates
him/herself (self perception)
Evaluation happens
anonymously, in written by
using standardized and
structured methods (e.g.
questionnaire)
The focus person gets a
personal report to be
discussed with his/her direct
supervisor or a coach
Purpose is to determine a
focus person‘s development
needs
Focus-
person
Direct
Supervisor
CustomersPeers
Subordinate
People who develop their Talent ...
trully love what they do
know their real potential
have a vision about their
future position
jump into cold water
actively build strong
networks
sell themselves
are disciplined – most of
the time
prefer to work with A-
player
got the opportunity to do
what they can do best
trust in a strong mentor
are lucky
prefer to work with those
who compensate their
weaknesses
get trained
showed early successes
are well known
Talent Development Measures
Through Experience
Challenging
tasks/projects (Stretch
Jobs)
Job Rotation
Internal Talent
Markets
Action Learning
From Others Through Training
Mentoring
Career Coaching
360-Degree-
Feedback
Learn Forums
Action Learning
Off-the-Job-Training
Being a Trainer
Literature
70% 20% 10%
Mentoring
Building future supporter
Learning from the bottom-line
Professional insights across borders
Appreciation
Access to networks and roles
Professional feedback
Confidence
Role Model
Benefits for the Mentor
Benefits for the Mentee
Trust Commitment
Career Coaching
What are your biggest
strengths and
weaknesses?
What are your talents?
Which working
conditions are
important to you?
What could be you
next, realistic career-
move?
What is your ultimate
career goal?
To achieve your goals,
which additional
experience could help?
„
„
„
„
„
What do you really
like to do?
„
Who could support your future
career development?
„
RETENTION
Common Views
People who join for money leave for money
People join companies and leave bosses
You don‘t need to care about retention if you do
well with all the rest
Employees are free, which is fine
At the end of the day retention is all about
leadership
Losing an employee leads to costs 1-2 times of
his/her annual salary
The strongest are the first to leave the company
Happy employees prefer to stay
To a certain extent turnover is good
Turnover
Turnover
The process in which
employees leave the
organization and have to be
replaced
Voluntary Turnover
Turnover initiated by
employees against the wish
of the company
Turnover Rate
Involuntary Turnover
Turnover initiated by the
organization (often among
people who would prefer to
stay)
Early Turnover
Voluntary Turnover during
the first few weeks/months
of employment
Number of Employees leaving the Company in a Year
Number of Employees at Midyear 100%
Turnover-Performance-Relation
Performance
Turnover
Low Middle High
Average
Differentiated Turnover Rate
?
Key
Functions
High Performer/
High-Potentials
Others
Non-Key-Functions
Turnover Cost
Learning
Curve of
New Hire
Separation
Lost
Productivity of
Vacant Position
Vacancy
Marketing
Selection
Hiring
Onboarding
Training
Employee Leaves New Employee
Hired
New Employee
Fully Effective
Lost
Productivity of
Other Employees
Lost
Productivity of
Other Employees
Hidden („Indirect“) Cost
Lost
Productivity of
Other Employees
Visible („Direct“) Cost
Lost
Productivity
of Incumbant
Pre-Departure Vacancy Introduction
Fictitious Cost Estimation
Cost per Hire
60.000 AEDAnnual Salary
of an employee
Onboarding (off-the-job)
6.000 AED
12.000 AED
Loss of Motivation
(former employee)7.500 AED
Performance deficit
(new employee)15.000 AED
Opportunity Costs 10.000 AED
Σ 60.500 AED
Productivity Losses
(colleagues)10.000 AED
10% of annual salary
20% of annual salary
50% less performance in the last 3
months of employment
50% less performance in the first 6
months of employment
No value creation for 2 months due to
vacant position
10% less performance of 5 colleagues
(similar salary) during 4 months
Assumptions
Turnover Cost
Entry Level
Service/Production Workers
Skilled Hourly
Clerical/Administrative
Professional
Technical
Engineers
Specialists
Supervisor/Team Leader
Middle Managers
Tunover cost ranges as a percentage of annual salary
0 50 100 150 200 250 300 350 400 450
Range
Individual Risk Analysis
Likelihood
of Turnover
Impact
major
minimal
possible likely
Garth McGrath
Paul Paulson
Russ Rothen
Kelley Clark
Mark Myer John Shark
Paul Cummings
Rock StewartTom Scott
Linda Anderson
Susan Power
Keneth Keith Carlson
Pete Peters
Individual Indicator of Intention to Leave
Sudden performance drop
Frequent short-term absence
Reduced social interaction and isolation
Frequent complaints
Glorify other companies
Reduced willingness to take over responsibility
Pessimism about future perspective
The Psychological Contract
Salary
Benefits
Social contacts
Tasks
Training
Image
Identity
Security
Values
Perspective
Performance
Creativity
Capabilities
Knowledge
Talent
Energy
Time
Health
Social Networks
Customers
Employer provides Employee provides
Relative Job Evaluation
Certaintyof Value of alternative Jobs
Differencealternative Job
compared to
current Job
better
similar/
worse
low high
Relevance
high
middle
low
Peers
Location
Copmany Image
Tasks
Perspective
W-L-B
Security
Salary
Boss
Rational Decison Making
Current
Job
Alternative
Job
Value (V)
Cost of
ChangeIntention
to Leave
Valt
Vchange
Intention to Leave
= Valt – Vact - Vchange
Vact
Turnover Decision Style
Escape
future
Situation
high
low
current
Situation
Solution
Job-Hopping
Strategy
Elaboration
Driver
Exit-Interview
Example: Intel
What was the main reason that you decided
to leave?
Is your new position in a different line of work
than the one you where in while at Intel?
How would you characterize your new
employer?
Would you say your new employer is better
than Intel, about the same as Intel, or not as
good as Intel in terms of:
How would you descibe your relationship with
your manager while you where at Intel?
How would you describe your experience with
Intel?
If a friend approached you and told you
he/she was looking for a similar position at
Intel, how likely would you be recommend
Intel?
Any other comments about Intel or you new
position?
Pay
Benefits
Location
Working Conditions
Job Security
Career Opportunities
Product Quality
Co-workers
Company Leadership
Company Image
Multiple Regression Analysis
Salary
W/L-Balance
Perspective
Peers
Training
Tasks
Security
X1
X2
X3
X4
X5
X6
X7
YIntention
to Leave
Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7 + ε
Components of a Retention Strategy
Target Group
Problem
Risks
Measures
Causes
What is the relevant internal target group? E.g. particular Units, Jobs, Countries, (Key) Functions,
High-Potentials, Managers
What are related turnover costs?General and differentiated? Which kinds of costs are
generated?
Why do employees leave the company?What are the internal and external factors and reasons for
leaving?
Anticipating turnover and related impactHow big is the likelihood of employees leaving the company
and what are related consequences?
How can employees be retained?Which options are there to effectively retain employees?
Where is the Problem?
Employees with a strong intention to leave
Employees without intention to leave
Levels of a Retention Strategy
Risks MeasuresCauses
Organization
Manager
Employee
Differentiated
Turnover Rate
Improving Employer
AttractivenessE.g. Internal Talent Market,
Flexible Working Hours
Employee Survey
Exit-Interview
Regression Analysis
Current and previous
Turnover Rate
Development,
Selection, Coaching,
Replacement,
Objective Setting
Management
Evaluation
Individual Risk
Analysis, Performance
ManagementIntention to Leave
New projects, new
tasks and colleagues,
salary adjustmenet,
more flexibility
Performance
Management,
Turnover Decision
Styles
CHANGE MANAGEMENT
Two Leadership Cultures
We want our people to behave
like adults. That‘s why we treat
them that way. Each employee is
responsible for what he/she
decides. We believe in our
people‘s own initiative to
contribute to our company‘s
success -- everybody at his/her
place. We do everything to avoid
static structures, order or control.
We simply don‘t need it.
People need structure and
guidance. That‘s why our leaders
will never stop telling our
employees as clearly as possible
what‘s expected from them.
Control is better than trust.
Organizations need rules. And
rules always need somebody
who takes care for them. Nobody
wants to suffer from corporate
chaos.
Human Response to disruptive Changes
Time
passive
active
Immobilization
Denial
Anger
Bargaining
Depression
Testing
Acceptance
Emotional
Response
Stability
Resistance
Resistance is a natural human reaction to
disruptive events (fear of losing control)
Change is seen by different people differently
according to their individual frames of reference
Resistant employees are often seen as non-
rationally thinking troublemakers
Resistance of informal opinion leaders are of
greater power than those of formal leaders
There is always a mixture of overt and hidden
resistance. Overt resistance should be a valuable
aspect of any change process
Active involvement is propably the best way to
deal with resistance
Reactions to positive Changes, for which the
individual is responsible
Time
Pessimism
Uninformed
Optimism (Naivité)
Informed Pessimism
Informed Optimism
Completion
Checking
Out (?)
Hopeful Realism
Level of Tolerance
Why Transformation Efforts Fail
John Kotter, 1995
1. Establishing a Sense
of Urgency
2. Creating the Guiding
Coalition
3. Developing a Vision
and Strategy
4. Communicating the
Change Vision
5. Empowering broad-
based Action
6. Generating
Short-Term Wins
7. Consolidating Gains &
Producing More Change
8. Anchoring New
Approaches in the
Culture
