JDA Professional Services, Inc. HR Houston 10 Ways to Keep Your Key Employees by James Del Monte, JDA Professional Services, Inc. January 13, 2005

JDA Professional Services, Inc. What JDA Does... full complement of information technology professionals. JDA provides clients with a full complement of information technology professionals. Our services are designed to meet the unique and changing requirements of our clients. Full-Time Staffing Contract / Temporary Staffing Special Projects Staffing JDA

Professional Services, Inc. Most Requested Information How to write a resignation letter articleHow to write a resignation letter article High cost of turnover articleHigh cost of turnover article

JDA Professional Services, Inc. Economic Trends According to the HR professionals surveyed, the most important economic trends that will impact the workplace are (in order of importance): Rise in health care costsRise in health care costs Greater demand for high-skilled workers compared with low-skilled workersGreater demand for high-skilled workers compared with low-skilled workers Labor shortageLabor shortage SHRM Workplace Forecast: A Strategic Outlook

JDA Professional Services, Inc. Top Reward Challenges Facing HR Attract/retain the “right” talent Control the increasing cost of benefits Differentiate high performers Ensure pay-for-performance Develop/implement a cohesive reward strategy Communicate value of reward program to employees Increase effectiveness of annual incentive plans Gather relevant market comp data Source: 2004 SnapShot Survey “Measuring Return on Total Reward Investments,” Mercer Human Resource Consulting Percentage of Companies Rating Issue as “Highly Important”

JDA Professional Services, Inc. Law of Supply and Demand The demand for skilled professionals peaked 4Q99 and has decreased, bottoming out 3Q03. The current cycle indicates that once again there are more positions than skilled professionals, and this is projected to continue past Labor Surplus vs Skill Shortage Q01 4Q04 Demand Bottomed 4Q99 Demand Peaked Demand Bottomed Supply Demand Q03

JDA Professional Services, Inc. Employer’s MarketJob Seeker’s Market Combination Market The job market has shifted from an Employer’s Market to a Job Seeker’s Market - to a Combination Market. Candidate Position Candidate Market Shift

JDA Professional Services, Inc. Position Demand... %Skills Yrs. Exp. 10 Mgmt./Conslt. 8+ Yrs. 30 Sr. Tech/ 4 – 8 Yrs 1 st Line Mgmt 60 Staff/Tech 0 – 5 Yrs

JDA Professional Services, Inc. Talent Pool %Skills Yrs. Exp. 60 Mgmt./Conslt. 8+ Yrs. 30 Sr. Tech/ 4 – 8 Yrs 1 st Line Mgmt 10 Staff/Tech 0 – 5 Yrs

JDA Professional Services, Inc. Position Demand... Talent Pool... % Skills Yrs. Exp. 10 Mgmt./Conslt. 8+ Yrs Yrs 30 Sr. Tech/ 4 – 8 Yrs 30 1 st Line Mgmt 4 – 8 Yrs 60 Staff/Tech 0 – 4 Yrs 10 0 – 4 Yrs

JDA Professional Services, Inc. Candidate Population 25% A Players25% A Players 50% B Players50% B Players 25% C Players25% C Players

JDA Professional Services, Inc. Why People Stay Like the people they work withLike the people they work with Control and independence over workControl and independence over work Flexible work schedulesFlexible work schedules Decision makingDecision making Increased levels of responsibilityIncreased levels of responsibility Reward and recognitionReward and recognition A sense of belongingA sense of belonging FunFun

JDA Professional Services, Inc. Why People Leave Bad management Lack of recognition or reward Too much travel Bad work environment Lack of job security Lack of training Long commute Pay/benefits Uncertainty about future Lack of career advancement

JDA Professional Services, Inc. 10 Ways to Keep Them! 1.Hire the right type of person: A or B 2.Have people grow into the position vs. out of the position 3.Rotate responsibilities and cross-train, offering a variety of functions and responsibilities 4.Pay above-market cash or bonuses 5.Use non-cash rewards and recognition for results/ efforts

JDA Professional Services, Inc. 10 Ways to Keep Them! 6.Create a team environment / team building 7.Use temps or contractors for more routine work 8.Encourage communication with manager 9.Make proactive counteroffers when you have someone you want to keep 10.Set clear expectations and give feedback on how they are doing

JDA Professional Services, Inc. Bad Seeds Get rid of bad seeds and people who don’t want to be there – the dominant attitude will proliferate through the group and pollute the team

JDA Professional Services, Inc. A faithful employee is as refreshing as a cool day in the hot summertime. Proverbs 26:13

JDA Professional Services, Inc. 701 North Post Oak Road Suite 610 Houston, Texas Phone: 713/ Fax: 713/ Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects