Posts belonging to Category retention

Giving Workers a Reason to Quit at Amazon

Years ago, we reported on Zappos’ decision to offer employees a $1,500 bonus to quit during its intensive, four-week training period. The thinking being, if they’re not happy in their jobs 480491805at that point, why prolong the inevitable and suffer the consequences in the process.

Well, in case  you haven’t already heard, earlier this week, Amazon CEO Jeff Bezos reported in his letter to shareholders that the online retailing behemoth has established a program called “Pay to Quit” that pays warehouse employees up to $5,000 to leave.

Bezos spells out “Pay to Quit” this way in his letter to shareholders

It was invented by the clever people at Zappos, and the Amazon fulfillment centers have been iterating on it. Pay to Quit is pretty simple. Once a year, we offer to pay our associates to quit. The first year the offer is made, it’s for $2,000. Then it goes up one thousand dollars a year until it reaches $5,000. The headline on the offer is ‘Please Don’t Take This Offer.’  We hope they don’t take the offer; we want them to stay. Why do we make this offer? The goal is to encourage folks to take a moment and think about what they really want. In the long-run, an employee staying somewhere they don’t want to be isn’t healthy for the employee or the company.”

In a story in The Tennessean, an Amazon spokeswoman says only workers in the fulfillment centers, where customer orders are packed and shipped, are eligible for the program and that only a small percentage of employees take the company up on the offer. (Back in 2008, when we first wrote about the Zappos program, we were told only 2 percent of the trainees took the online shoe-and-clothing retailer up on its offer.)

Hearing about Amazon’s decision to follow in Zappos’ footsteps (excuse the pun), I tried to find other attempts at this, at decent-size organizations anyway, but came up empty handed. (If you’re aware of any, let us know.)

But with Amazon’s program getting the press attention it has, could that change?

I asked that question this afternoon to Joel Garfinkle, founder of Garfinkle Executive Coaching in Oakland, Calif., and author of Getting Ahead: Three Steps to Take Your Career to the Next Level.

That’s certainly possible, Garfinkle told me. “ We live in a copycat world” and “a lot of people look to Jeff [Bezos] as the new Steve Jobs — someone who leads from the front and is willing to take risks,” he said.

Garfinkle believes the approach might have some merit. “If you’re neutral or positive about your job, you’re not going to take [the offer to leave],” he says. “But if you’re really on the fence or negative, it might be enough that you just might take it.”

Much still needs to be measured, he adds, but at the end of the day it could very well lead to higher overall productivity.

Looking for the Exit Signs

Looking for signs some of your top talent is about to head out the door for good?

According to a recent study conducted by researchers at Utah State University that recently crossed my desk, the signals are often more subtle than 77870591blatant. Generally speaking, says Utah State Associate Professor Tim Gardner (one of the study’s authors), the one thing most employees had in common before they left was that they began to “disengage” in the workplace. How so? Gardner’s research found those who were about to leave …

  • Offered fewer constructive contributions in meetings;
  • Were more reluctant to commit to long-term projects;
  • Became more reserved and quiet;
  • Became less interested in advancing in the organization;
  • Were less interested in pleasing their boss than before;
  • Avoided social interactions with their boss and other members of management; and
  • Began doing the minimum amount of work needed and no longer went beyond the call of duty.

In other words, their lack of engagement began to show up in here and there in their performance a few months before they actually quit. (Gardner, who did the study with Utah State Professor Steve Hanks and Florida State University Professor Chad H. Van Iddekinge, says the statistical formula they used could predict with 80 percent accuracy that employees demonstrating at least six of these behaviors were about to leave.)

It’s no surprise, of course, that signs like those listed above would make the researchers’ list. Those looking to exit are inevitably going to mentally check out some time before they actually give their notice. But what was somewhat surprising about the findings, Gardner points out, is that things like taking more vacation time, punching out at 5 p.m. every day and looking at outside openings on company time were not on the list.

“You might think that someone who starts showing up to work late, failing to return phone calls and emails, and taking lots of sick days might be about to leave, but those weren’t unique behaviors that applied only to the quitters,” he says.

Plus, just maybe, these latter individuals are savvy enough to avoid the obvious.

Disabled Americans Want Jobs, Not Benefits

Linking a Jan. 8 release with Jan. 7 news that the Social Security disability system may have been bilked out of hundreds of millions of dollars by 9/11 responders and others 183174586 -- disabled at workfaking disabilities, RespectAbilityUSA made a special plea to employers to turn some numbers around and get more disabled Americans into the workforce.

In the release, RespectAbility — a Washington-based nonprofit focused on empowering people with disabilities — included results from its latest poll showing three out of four people with disabilities surveyed value a job and independence over government benefits. (Here is a link to the final poll announcement made on Friday, with slides.)

“Too many people with disabilities are prevented from having a real job at a real wage because of employer misconceptions and because the structure of the benefit system prevents people from working more,” says Jennifer Laszlo Mizrahi, the company’s president. “Republican, Democrat, Independent — what comes across clearly in the poll is that people with disabilities want to work, pay taxes and be full members of our society.”

Addressing the 9/11 scandal — involving New York cops and firefighters allegedly making fraudulent claims of depression and anxiety to their doctors for lucrative awards — Mizrahi says her organization is “disgusted by the actions of individuals [that make] the rest of us with real disabilities and those who care about them look guilty, and it makes it more difficult to have important conversations about our hopes, aspirations and dreams of entering the workforce and being active, contributing members of society.”

The release cites findings that 70 percent of working-age Americans with disabilities are outside the workforce, compared to 28 percent of people with disabilities. It also includes data showing the disability community gives President Obama, Congress and their governors failing grades in how much they trust them to increase their employment opportunities.

This certainly isn’t the first time we at HRE have covered the merits of attracting, hiring and retaining people with disabilities. Three of my recent favorites are this recent blog post by Senior Editor Andrew R. McIlvaine about a disability summit co-hosted by the U.S. Chamber of Commerce highlighting companies that are doing those things right, our December benefits column by Carol Harnett about disability’s power to instruct and how she learned early on that everyone deserves a fair chance, and this November feature by Julie Cook Ramirez about a company — Innotrac — going the distance to give disabled workers just such a chance.

I like the numbers RespectAbility provides though, even though they sadly underscore a huge discrepancy between what disabled Americans want and what they’re currently getting.

Boasting About Benefits

boasting about benefitsHere are a few statistics to digest as you think about how to attract and hang on to top talent in 2014.

In its six-part State of Employee Benefits in the Workplace survey of 440 randomly selected HR professionals, the Alexandria, Va.-based Society for Human Resource Management asked respondents about how (or if) they use their workplace benefits programs to help recruit employees. Only 25 percent of organizations indicated they use their workplace benefits to help recruit employees.

In addition, just 30 percent said they’re leveraging their benefits programs specifically to recruit in-demand workers, despite half of the participants in SHRM’s poll reporting difficulty in recruiting highly-skilled employees. Even fewer employers—less than one in five—report touting the value of their benefits programs to retain current employees.

Among those that do promote their benefits packages as part of their recruitment and retention strategies, healthcare and retirement savings are the most talked-about benefits, followed by leave benefits and professional- and career-development benefits.

Employers may be wise to spend a bit more time talking up these types of benefits, especially at a time when companies can’t necessarily offer top-dollar salaries as a way to reel in and retain top-dollar talent, says Joseph Coombs, SHRM’s senior analyst for workforce trends.

“Considering that wage growth has been very weak in the post-recession economy, HR professionals frequently cannot use higher salaries as a draw for attracting and keeping talent,” said Coombs, in a statement. “Many recruiters now advocate using a ‘total rewards’ approach to recruitment and retention, leveraging an employer’s benefit package as part of that strategy.”

Yahoo Cracks the List of Top 25 Companies for Work/Life Balance

worklifeYahoo CEO Marissa Mayer took plenty of heat for her decision earlier this year to revoke that company’s telecommuting policy. So it must be sweet justice indeed for her that Yahoo has just made its first-ever appearance on Glassdoor’s Top 25 Companies for Work-Life Balance 2013. Ranked at #16 on this year’s list, employees commended Yahoo for “great for work/life balance,” “flexible working hours” and “free food that’s better than Google’s!” (Mayer joined Yahoo from Google, where she’d been the 20th person hired, its first female engineer and helped create the firm’s search service and its famous white-background home page, among other things.) Yahoo’s work-life balance rating was a 4.0 out of a possible 5, with 5 being the best and 1 .0 “very dissatisfied.” Other companies making their first appearance on the list were MasterCard and NetApp.

No. 1 on the list is Cary, N.C.-based SAS Institute (with a 4.5 rating), a software firm that’s been winning kudos for its employee-friendly policies since well before “work/life balance” became the buzzword it is today. SAS was followed on the list by National Instruments, Slalom Consulting, MITRE and Orbitz Worldwide. Seven companies have made the last for the past three years, including SAS, MITRE and Agilent Technologies. In order to qualify for the list, companies must have at least 50 work-life balance ratings on Glassdoor within the past year and at least 10 the year prior.

The survey also suggests that, for employees, maintaining a good work/life balance is becoming increasingly difficult: the average work-life balance rating has dropped over the years, from a 3.5 in 2009 to 3.2 so far this year. That’s not good news for HR, considering that a survey earlier this year found that employees who perceive their companies aren’t interested in helping them balance work and family are more likely to jump ship.

A New Level in ‘Giving’

Leading up to Monday morning’s keynote at the 2013 Society for Human Resource Management Conference and Exposition, I was only slightly familiar with TOMS Shoes’ inspiring story, despite the glowing coverage the company had received in magazines like Time and People.

Just a quick recap for those of you who might be in the same boat: TOMS uses what it calls a “one-for-one” concept, in which it gives away one pair of shoes for every pair that it sells. The idea came to CEO and Founder Blake Mycoskie back in 2006, when he witnessed children in Argentina walking around without any shoes.

imagesCompanies like TOMS are clearly taking corporate giving to a whole new level. During its first year of operation, TOMS sold roughly 10,000 pairs of shoes—and, in turn, gave away 10,000 pairs of shoes. (To staff the start-up, Mycoskie hired interns through Craigslist.) This week, Mycoskie announced in his SHRM keynote address, the company hit a milestone—giving away more than 10 million pairs of shoes.

Two years ago, TOMS also expanded the one-for-one concept into eyewear.

In sharing his story, Mycoskie emphasized the kind of impact giving can have on a business. “Anyone who has given to a charity knows how good it feels to give,” he explained. “But what I’ve come to realize is that giving doesn’t just feel good; it’s also a good business strategy.”

As might be expected, TOMS’ unique approach has created lots of customer “evangelists.”  Mycoskie told the story of one woman he personally encountered at an airport who couldn’t restrain her excitement when asked about the TOMS’ shoes she was wearing. (She was unaware, at the time, he was the company’s founder.)

But Mycoskie also talked about the concept’s huge impact on recruitment and retention. TOMS, he said, has been able to recruit and retain people who are willing to “work harder than anyone else on the planet” because they are “proud” of what they’re doing.

Mycoskie’s concluding message to SHRM attendees was fairly straightforward: Go back to your organizations and “give team members opportunities to serve.”

“Incorporate giving into your organization,” he said, noting that it could take many different forms.

Of course, there’s no way to know how many will end up following his advice. But at the very least, with thousands in the audience, I suspect Mycoskie’s compelling story won over more than a few new customers.

Truth in Interviewing

interviewEven dream jobs aren’t always so dreamy.

New employees generally accept this, and understand they will sometimes have to perform duties that, strictly speaking, weren’t included in the job description.

In fact, a new survey finds a majority of employees indicating as much. The same study, however, also suggests some of those same workers feel they were misled during the interview process, and find various facets of their jobs falling short of expectations.

The Harris Interactive survey, commissioned by Sausalito, Calif.-based job and career site Glassdoor, polled 2,054 employees age 18 and older. (Employees were defined as individuals employed full-time or part-time, and unemployed job seekers who had previously been employed.)

In the survey, 61 percent of respondents said aspects of a new job differed from expectations set during the hiring process. The areas employees said differed most were:

• Employee morale (40 percent),

• Job responsibilities (39 percent),

• Hours expected to work (37 percent), and

• Boss’s personality (36 percent).

Study authors noted the poll doesn’t indicate whether new employees believe interviewers or hiring managers intentionally deceived them in the hiring process, but acknowledge employers’ role in ensuring job candidates’ expectations match the realities of the job.

Amanda Lachapelle, Glassdoor’s HR director, offered a few tips to help hiring managers do just that:

• Ensure every person interviewing a candidate has a clear role.

• Engage with candidates before and after the interview.

• Leverage your own employees.

Finally, Lachapelle urges hiring managers to simply shoot straight with interviewees.

It’s exciting to tell candidates all the great reasons to come and work at your company, but don’t be afraid to share some of the areas the company is trying to work on and improve,” she says. “Candidates will appreciate your honesty. Plus, should they accept a job offer, the excitement that comes with the honeymoon period of a new job will quickly give way to the realities and normalcy that comes with a day-to-day job.”

It’s Not (Just) About the Money

rewardsFrom our neighbors to the north comes some insight into what employees really want when it comes to rewards and recognition. Spoiler alert: it’s not money.

Well, it’s not just money.

Ceridian Canada’s Pulse of Talent 2013 survey recently asked more than 800 employees from three generations—baby boomers, Generation X and Generation Y—for their perceptions of job security, technology, performance reviews, job recognition and career satisfaction.

When discussing the rewards they would like to see their companies offer, the majority of respondents in each group said they would prefer non-monetary awards. Seventy-four percent of Generation Y employees indicated as much, with 65 percent of Gen Xers and 56 percent of boomers saying the same.

What specifically would they like to receive for a job well done?

Preferred non-monetary awards included:

• Free personal days off (37 percent)

• Free food/meals (20 percent)

• Event tickets (19 percent)

• Club memberships (17 percent)

• Technology resources (15 percent)

An iPad, the occasional comp day or tickets to the ballgame, however, may not be enough to hang on to your talent. Indeed, 29 percent of surveyed employees who said they expect a salary increase, bonus or promotion within the next year said they would look for other opportunities if they didn’t receive one. And, take special note if your workforce skews younger: That number jumped to 52 percent among Gen Y respondents.

Turnover, Schmurnover

shrugging guyMuch has been made of the mass employee exodus we may start to see as the long-sluggish job market slowly stabilizes, and how companies must work to retain critical talent now if they want to thrive in the near future.

Well, employers don’t seem to be making too much of it.

That’s according to a study from AMA Enterprise, a division of the New York-based American Management Association, which asked nearly 1,000 companies what they think of employees expressing their intentions to seek new positions. Employers answered:

• It’s nothing new for employees to keep an eye out for new opportunities, and I don’t regard the present situation as something unusual (69 percent).

• This is a growing mindset among our employees, and I expect many to seek a new job as soon as they’re able (24 percent).

• This has become a prevalent attitude among our employees and an urgent issue our organization needs to address (7 percent).

So, that’s nearly three-quarters of participating companies shrugging off the notion that their employees could be eyeballing the exits in large numbers. And, when asked how urgent senior management at their organizations regards the potential or actual turnover situation, 39 percent said “not so urgent,” with another 22 percent saying leadership considers the matter “not at all urgent.”

Maybe your organization shouldn’t be more concerned with workers dreaming of greener pastures now than at any other time. Or maybe its ignoring the symptoms of what could prove to be a big problem. Either way, keeping a close watch on the door probably wouldn’t hurt, according to Sandi Edwards, senior vice president of AMA Enterprise.

“The lack of focus on turnover tells me that many top-level executives are not tuned into the widespread worker dissatisfaction found in so much recent research,” said Edwards, in a statement.

Intent to leave is a key indicator of engagement and commitment to the organization. If management wants the best out of its people, they need to be aware of their stress and contribution levels. Management needs to work with them individually to understand what will meet their career goals along with what has to be done to drive the organization forward.”

Rewards, Referrals and Raises

All’s fair in love and recruitment.

Robert Mellwig, SVP, Really Cool People, Destination Hotels & Resorts/Lowe Enterprises, offered no apologies for his company’s “shameless” search function, external referral program and other outreach efforts.

124322561Mellwig was part of a panel that offered a variety of tips to HR professionals at the HR in Hospitality® Conference & Expo in Las Vegas.  Other panel members included Dina Barmasse-Gray, SVP, HR, Cheesecake Factory; Rebecca Henry, VP, People Services, Allegiant Travel Co., and Diane Turek-Pire, SVP, HR, Wyndham Hotel Group. Bruce Tracey, associate professor, school of hotel administration, Cornell University, moderated the panel.

Members had plenty to say about how their HR function operated. Henry explained that HR contacts its alumni group (former employees) several times a year for referrals, connects its HR system with its ticketing system to drive efficiency and spends 80 percent of its efforts on the top 20 percent of the company’s highest performers. Barmasse-Gray discussed the company’s video café, featuring employee videos addressing work tips, and how diversity is never taken for granted but is no longer a “top strategic imperative”. Turek-Pire mentioned a move from individual toward constellation or team awards and that HR was shifting its focus from employee engagement to trust, which builds loyalty.

Surprisingly, no one seemed concerned over Obamacare. Henry said the biggest needle-mover was getting spouses or adult children involved in healthcare. “People have the highest level of dissatisfaction when they don’t understand how it works,” she said.

Mellwig appeared to be the rebel of the group. He said HR awards employees for their contributions, not tenure, and ignores routine raises. “We believe in wild (salary) swings that are performance-driven.  It creates controversy but we get better results.”