Retaining Top Talent Silicon Valley Product Managers Association August 23, 2000 Diana Ross

What does it cost to hire? Company of 100 employees Turnover of 10% Cost of hire $50,000 (advertising, administrative costs, travel, interviewer cost, lost opportunity, training and ramp up, relocation, agency fees, referral bonus, internal recruiter) 10 X $50K = $500,000.

What is different today? Employees are more willing and able to change jobs Career advancement is critical Companies are more aggressive Large pay premiums Signing bonuses Stock Opportunities

What else is different? The Internet

Where do top performers come from? Employee Referrals Web Passive “Events” Conferences

What do employees want? Employees RankManagers Rank 1 Interesting work 5 2Appreciation of work done8 3 Feeling “In on things”10 4 Job Security2 5 Good Wages1

What do employees want? Employees want work that is meaningful and fun Opportunities for learning and advancement Affiliation/Belonging Compensation remains high on list of priorities Direct Financial Indirect Financial

What Factors Attract Great Workers  A “Better” Job  Job Tasks  Quality of team/coworkers  Rapport with manager/supervisor  Opportunity for growth  Friends say it’s a good firm  Opportunity for wealth

The 100 Best Companies Have the best benefits and address work/life issues Haircuts – shoe repair – concierge services – free breakfast – child care – adoption aid – paternity/maternity leave – marriage leave – sabbaticals

The 100 Best Companies Have the best cultures Empowerment – culture of celebration – spot bonuses – recognition – encourage volunteerism – mentor programs

When are employees lost? First six weeks of employment Stay, but are disengaged Assimilation is critical Part of team, both on the job and in a social sense

Exit Interview Data What do they say when they leave? More money More stock What do they say when you ask more questions? No career opportunity Poor management

What can you do? To retain your employees, find out what is happening Focus groups Climate surveys Survey your top employees to find out why they stay Create “More Of” and “Less Of” lists Train your managers Employ job rotation programs