Recruiting and Retaining the Best Employees

Paul McDonald Executive Director RHI Management Resources

Recruiting Techniques Know your market –Stay informed about local hiring trends Refer to the business section in your newspaper Glance through classifieds –Network with others in your field Participate in business organizations and professional associations –Ask others about their recruiting experiences

Recruiting Techniques “Sell” your company –When giving a tour of your firm, highlight attractive features: Awards your company has received Benefits of joining your team Have top candidates meet with prospective peers

Compensation and Benefits Research salary trends –Bureau of Labor Statistics ( –Internet and other resources ( ( –Salary guides (

Compensation and Benefits Review salaries regularly –Set clear guidelines for raises –Tie wage increases to targets or goals that you can quantify –Reward performance –Don’t set unrealistic qualifications/goals –Don’t make promises you can’t keep

Compensation and Benefits Consider bonus options –Signing bonuses –Performance-based bonuses Spot bonuses –Cash –Alternatives Year-end/mid-year bonuses

Compensation and Benefits Consider equity incentives –Stock options Allow employees to purchase shares in the company at a set price Make options one component of a balanced compensation and benefits package

Compensation and Benefits Consider equity incentives –Employee Stock Ownership Plans (ESOPs) Provided as deferred compensation –Profit-sharing plans Cash plans –Payments distributed quarterly or annually Deferred plans –Payments made after employees retire or leave the company

Source: Robert Half International survey of 1,400 CFOs “Other than base salary and bonuses, which one of the following do most applicants ask about during job interviews today?” Corporate Culture

Source: Robert Half International survey of 1,400 CFOs Executives were asked: “Which one of the following factors do you think is most important in keeping an employee satisfied?” Corporate Culture

What is corporate culture? –The business environment in which employees spend their time –Defined by your company’s values

Corporate Culture Recognize employee achievements –Formal programs Consider your target audience Include everyone Reward teamwork Set attainable goals Be consistent Give meaningful rewards

Corporate Culture Recognize employee achievements –Informal programs Give day-to-day praise and recognition Don’t forget the little courtesies

Corporate Culture Make time for fun –Hold a monthly TGIF celebration –Bring refreshments into the office –Consider different meeting locations –Celebrate success –Get to know your employees

Corporate Culture Promote work/life balance –Telecommuting –Flextime –Concierge services –Child- and elder-care assistance –Resource and referral services –Relocation assistance

Management Practices Use a team approach Be receptive to suggestions Keep the lines of communication open Reward risk as well as results

Management Practices Provide challenge Don’t hesitate to promote your firm’s successes Be an enthusiastic coach

Management Practices Promote from within Help employees achieve their career goals — Create a career plan — Prepare a list of action items — Emphasize skills enhancement

Professional Development Develop employee training programs –Support employee interest in opportunities to learn and grow –Help maintain a competitive edge by having skilled staff –Seek the right program for your company In-house classroom training Off-the-shelf non-classroom training such as videos Self-paced online programs

Professional Development Support external education –Encourage employees to attend professional seminars, courses, workshops –Offer tuition reimbursement

Professional Development Develop mentoring programs –Benefits to: Less experienced employees –Learn office protocol and build skills –Reduce learning curve Mentors –Receive recognition for their expertise –Enhance leadership skills Organization –Build employee knowledge –Increase loyalty

Professional Development Develop mentoring programs –Goals Assess your firm’s specific needs –Structure Formal –Can be more efficient, enhance relationship-building Informal –Can provide more flexibility to participants –Measuring results Conduct a mid-point survey

Retention Issues Recognize when employees are unhappy –Look for a noticeable change in attitude Less communication with management Longer lunch hours Frequent absences Sharp increase in personal phone calls

Retention Issues Recognize signs an employee plans to quit –Noticeable improvement in attire –Altered appearance of workspace –Changed vacation pattern –No longer takes work home

Retention Issues Saying goodbye to top performers –Conduct an exit interview Uncover real reason for employee’s departure Act on information gathered –Leave the door open –Use as a learning experience Analyze firm’s policies and procedures Evaluate management style

Recruiting and Retaining the Best Employees