HARNESS YOUR PEOPLE POTENTIAL DUBLIN CHAMBER OF COMMERCE PRESENTATION KEITH MCCARTHY, HR&OD CONSULTING DIRECTOR 30 September 2015

AGENDA 1.Be more aware of the most challenging people issues facing business leaders and owners in Ireland today: how might this impact your business/organisation? 2.Understand the influence/impact on people of you and your leadership teams’ management style: how might this be impacting on people retention in your business/organisation? 3.Know some of the practical people solutions to enhance retention and productivity for your business: is your business/organisation and management team focusing on doing the right things? 2

THE MORNING’S VIEW 3 Perspective

WHAT WE ARE HEARING… 4

LOOK AT WHAT WE KNOW Companies planning people growth Skills Shortages Competition for talent Employees expectations Reward and Recognition expectations are changing 5

EMPLOYEE MOTIVATION IN IRELAND TODAY 6 86% of respondents are either motivated or very motivated in their work 14% of respondents are either demotivated or very demotivated in their work Mazars Annual Motivation Survey 2015

MAIN MOTIVATING FACTORS 7

THE WORLD OF WORK: RESEARCH 64% of respondents believe that their management team / leadership team is NOT doing enough to motivate them. 8 Mazars Annual Motivation Survey May 2015

MOTIVATION: THE DELIVERABLES 9 Productive employees Meet your customers’ needs Achieve business goals Stable workforce Improved engagement

MAIN DEMOTIVATING FACTORS 10

KEY REASONS FOR STAYING IN CURRENT JOB 11 Challenging / Interesting Work ranked highest in 2015 (48%) and second highest in 2014 (40%) – an increase of 8% Financial Benefits climbed to second place in 2015 (35%) from third place in 2014 (32%) Job Security ranked third in 2015 (34%) compared to first in 2014 (43%) – a decrease of 9% Senior Managers and Directors identified Challenging / Interesting Work and Financial Benefits as the top reasons for staying in their job, while Staff Members suggested Job Security and Nice Colleagues are priorities Other Reasons identified include: Future Prospects Future Salary Expectations Clients Ownership Work-Life Balance

WHAT DO THE RESULTS MEAN FOR EMPLOYERS? 12 Employers must carefully consider the following factors: Challenging & Interesting Work is a key reason for employees staying in their current job, ranking highest in 2015 and second highest in 2014 Importance of Financial Benefits on motivation is increasing Job Security is no longer considered the top priority, falling to third place in 2015, and this is reinforced by the drop in Lack of Alternative Options as a reason for staying in ones’ current job. Employers need to recognise the link between their Management Style and key motivating / demotivating factors – the top three demotivating factors identified reflect leadership / management style Personal Satisfaction was rated as the main motivating factor – therefore employers must understand the factors that contribute to this for their employees Motivating employees doesn’t have to be costly, e.g. challenging employees, recognising their contribution, providing feedback, involving them in decision-making, communicating business goals, empowering them Are employers focusing Motivating efforts on the areas that employees actually consider important, rather than what they think employees consider important? Motivated employees are more likely to recommend their organisation to others as a great place to work

YOUR TEAM Willing Unwilling Able Unable 13

THREE PEOPLE CHALLENGES FACING BUSINESS Identifying and attracting the right people Challenge # 1: Recruitment Getting the most from your people (maximising their potential) Challenge # 2: Potential Retaining the people that you have and managing the risk Challenge # 3: Retention 14

OPPORTUNITY # 1: PEOPLE MANAGEMENT ARCHITECTURE 15 Recruitment & Selection How we identify what we need How we plan & execute our recruitment How we select the right people with potential Probation & Performance Management How we performance manage our people (the system) How we execute the process - how well equipped are our managers How we monitor application and compliance Talent Management/ Retention How talent is identified How talent is managed How talent is retained Reward & Recognition How we reward: Financial & Non-Financial Rewards How we align reward with Strategic Priorities How we monitor and review Learning & Development How we identify development priorities How we align our individual, team & organisation management and employee development needs How we deliver our L&D and get ROI Succession Planning How we plan for succession How we manage our corporate memory We we link with development & talent management

EMPLOYERS….. 16 Recruitment & Selection Be clear on the proposition Be ready to sell Probation & Performance Management Set the tone early – use probation Clarity, vision, expectations, deliverables, development Reward & Recognition Recognise early & often Don’t underestimate the small things Learning & Development Support development but bring it back to the business Recognise with flexibility Succession Planning Develop your replacement Give them the opportunity

OPPORTUNITY # 2: PRIORITISING LEADERSHIP AND MANAGEMENT DEVELOPMENT The secret of effective leadership is to create more leaders This means giving the people in your organisation the opportunity to develop, grow, learn and make mistakes while on the job. The CIPD 2014 Employee Outlook report identifies that line managers are far more positive about their own behaviours than the employees about their managers. A blind spot? A consequence of often poor or inconsistent investment in leadership and management development? What is often forgot is that once people are hired, the majority of the responsibility for talent retention shifts to the manager. What employees want: Trust in the leadership team (98%) Confidence in your manager (99%)

OPPORTUNITY # 3: RETENTION - RECOGNISING POTENTIAL Moving beyond looking at past performance and focusing on an individual’s potential to deliver. In a 2014 Harvard Business Review article a leading expert outlined five indicators of potential: Motivation: A fierce commitment to excel in the pursuit of unselfish goals Curiosity: A penchant for seeking out new experiences, knowledge, and candid feedback and an openness to learning and change Insight: The ability to gather and make sense of information that suggests new possibilities Engagement: A knack for using emotion and logic to communicate a persuasive vision and connect with people Determination: The wherewithal to fight for difficult goals despite challenges to bounce back from adversity Fernández- Aráoz C., 2014, 21 st Century Talent Spotting, Harvard Business Review 18

RETENTION: CONSIDER THE LOSS Many employees, even top performers, do not contemplate career planning or moving roles until they are dissatisfied with their current job situation. That dissatisfaction can lead to resignations if the employee has had no access to information about ongoing career paths within the organisation. It is very difficult for an employee to come back from being dissatisfied. Counter offers work in the short term They were dissatisfied – it is unlikely that anything changed by way of the counter offer – it’s too late. Contemplate the loss of a number of top performers in your business - RISK: R – Reality: How likely are they to leave? I – Impact: What would the impact be? S – Succession: How easily can they be replaced (internally or externally)? K - Knowledge: How accessible is the knowledge that they have? 19

INTERESTING LESSONS 20

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