1. McLean & Company1 1 McLean & Company is a research and advisory firm that provides practical solutions to human resources challenges with executable research, tools, and advice that will have a clear and measurable impact on your business. © 1997-2014 McLean & Company. McLean & Company is a division of Info-Tech Research Group Inc. Implement a Job Rotation Program to Engage and Develop the Workforce Job rotation is not just a tool for employee development, but a tool for increasing organizational performance through innovation and collaboration. McLean & Company is a research and advisory firm providing practical solutions to human resources challenges via executable research, tools and advice that have a clear and measurable impact on your business. © 1997 - 2014 McLean & Company. McLean & Company is a division of Info-Tech Research Group

2. McLean & Company2 2 Table of Contents 1. Implement a Job Rotation Program to Engage and Develop your Workforce 2. Introduction 3. Project/DIY Guide 4. Project 4.1. Assess if Job Rotation is Right for Your Organization 4.2. Develop the Job Rotation Strategy 4.3. Design the Job Rotation Program to Support the Strategy 4.4. Communicate the Job Rotation Program 4.5. Operationalize the Job Rotation Program 4.6. Follow Up and Measure Success 5. Summary 4. Appendix 5. Workshop Deck

3. McLean & Company3 3 This Research is Designed For:This Research Will Help You: This Research Will Also Assist:This Research Will Help Them: Our Understanding of the Problem Head of Human Resources Get Stakeholder buy-in for a Job Rotation Program. Assess your organizations’ suitability to determine if now is the right time for a Job Rotation Program. Develop your Job Rotation strategy and program guidelines to meet your organizations’ goals. Managers Understand the importance of developing their people. Learn the benefits of Job Rotation. Understand how to operationalize the program. Learn how Job Rotation can improve their team performance through innovation and collaboration.

4. McLean & Company4 4 Resolution Situation ! Complication ? McLean & Co. Insight Executive Summary Employees are telling us they want more development or they will leave. This is especially true for Gen Ys. They are expecting growth and development, however, you can’t always promote them. Job rotation programs can be difficult to develop and administer. Most HR departments are too busy with the day-to-day operations and they do not have time to develop a program. In addition, it can be difficult to get managers’ buy in and support. Use McLean & Company’s blueprint – it will walk you through all the necessary steps to develop a job rotation program that meets the needs and objectives of your organization. This storyboard will help you: Make a compelling case for job rotation and get stakeholder support Design a program using McLean & Company’s Six-Step Process. Implement the program with easy-to-use tools and templates. Use job rotation to develop and grow your talent, and keep them in your organization! Job rotation can positively impact retention rates. Organizations who had a high development score in their engagement surveys were 1.5 times more likely to retain their employees than ones with low development scores. Job rotation increases organizational performance through innovation and collaboration. Job rotation can address skill gaps. Planning to address looming skill gaps was one of the top two emerging HR trends for 2014 by HR and the Business.

5. McLean & Company5 5 Section 2: Review your stakeholder presentation Get off to a productive start: Discuss who key stakeholders are. Develop an action plan to present to stakeholders. Review tips and tricks to get them onboard. Section 3: Review your program strategy and design Reviewing program strategy and design: Review strategy and the formulation process. Validate program guidelines based on strategy. Discuss other methods to meet program strategy. Section 5: Discuss the progress of operationalization Operationalization review: Discuss updates and feedback from the program implementation thus far. Develop solutions and action plans to address issues that may have arisen. Section 6: Share results with a McLean & Company advisor and discuss where to make program adjustments Follow up and measure results: Discuss positive and negative feedback once the first rotation has been completed, and interpret changes in KPI. Develop program adjustments. McLean & Company is ready to assist. Book a free guided implementation today! Book a Guided Implementation Today: McLean & Company is just a phone call away and can assist you with your project. Our expert Analysts can guide you to successful project completion. For most members, this service is available at no additional cost.* * Guided Implementations are included in most advisory membership seats. Here are the suggested Guided Implementation points in the Implement a Job Rotation project:

6. McLean & Company6 6 What’s in this Section:Sections: Assess if Job Rotation is Right for Your Organization Assess if Job Rotation is Right for You Develop the Job Rotation Strategy Design the Job Rotation Program Communicate the Job Rotation Program Operationalize the Job Rotation Program Follow Up and Review Results Appendix Workshop Definition of job rotation Case Study: Franklin Templeton Investments Pains that job rotation addresses and its opportunities Roadblocks to implementation Job Rotation Suitability Assessment Job Rotation Program Framework Case Study: Large telecommunications company

7. McLean & Company7 7 Job rotation is the planned placement of employees across various roles in an organization for a set period of time By offering employees the opportunity to gain new skills and work experiences on an ongoing basis, everyone comes out ahead. – Mike Campion, Professor of Management, Purdue University, The Right Spin on Job Rotations A job rotation program is a development tool that can take many different forms. Skill Based: Employees are moved through positions in the same job family and business unit in order to build skills, knowledge, and capabilities. An HR employee rotating from compensation, to recruitment, to training functions allows for cross training and reduces exposure if someone leaves. Used for succession planning and developing future leaders. Skill Based: Employees are moved through positions in the same job family and business unit in order to build skills, knowledge, and capabilities. An HR employee rotating from compensation, to recruitment, to training functions allows for cross training and reduces exposure if someone leaves. Used for succession planning and developing future leaders. Leadership development: High potential employees are rotated through jobs in different functions or business units to build their business knowledge and decision-making and leadership skills. These rotations should tie with succession planning. Leadership development: High potential employees are rotated through jobs in different functions or business units to build their business knowledge and decision-making and leadership skills. These rotations should tie with succession planning. Cross Functional: Short to medium term rotations where employees move between departments. An employee from finance moves to another business unit. Gives individual more rounded understanding of the business. Can result in innovative idea generation. Cross Functional: Short to medium term rotations where employees move between departments. An employee from finance moves to another business unit. Gives individual more rounded understanding of the business. Can result in innovative idea generation. This blueprint does not cover job rotation that is: For ergonomic and muscoskeletal reasons. Global in nature (see McLean & Company’s Optimize the Global Talent Mobility Program blueprint ).Optimize the Global Talent Mobility Program This blueprint does not cover job rotation that is: For ergonomic and muscoskeletal reasons. Global in nature (see McLean & Company’s Optimize the Global Talent Mobility Program blueprint ).Optimize the Global Talent Mobility Program

8. McLean & Company8 8 The business units put in requests for associates that are a part of the program. The positions get posted and follow the typical recruitment process, with the use of a panel to make selection decisions. Minimum requirements include: a four-year degree, a GPA of 3.0 or higher, and a strong passion for the industry. Associates rotate to a new business unit (i.e. Finance, HR, Marketing, etc.) every three months, for a period up to two years. At the end of the program associates have a high probability of a placement within the organization. Action Case Study: A financial firm’s “Futures Program” rotates new grads for cross-functional development A financial firm wanted to create a program that would develop new talent coming into the organization and take advantage of new graduates’ potential. The program aligns with the firm’s development approach of providing employees with experience and exposure. A dedicated coordinator was selected to run the day-to- day process of the program. Situation The program has been running for a number of years due to its successful development of the new grads. Business units have come to rely on associates being a part of their program. A large number of senior leaders in the organization today started off in the Futures Program. Results The business units have really begun to rely on the talent that the Futures Program brings to their teams – it’s become table stakes. – Senior HR Consultant, Financial Firm Company: Industry: Source: Financial Firm Financial Services Senior HR Consultant

9. McLean & Company9 9 Organizations implement job rotation programs to achieve strategic objectives that benefit the business Strategic objectives:Your peers are doing it! According to McLean & Company’s 2014 HR Trends and Priorities Survey: 44% of respondents listed internal talent mobility as a top priority. Within the next two years, 55% will have a program in place within their organization. To build leadership capabilities through experience and organization-wide exposure. To identify high potential employees through their performance in different rotations. Employee Development To onboard new employees with experience throughout the organization. To attract and retain Gen Ys with opportunities to grow and move within the company. To improve employee performance with right-fit placements and job excitement. To meet organizational demand through the movement of employees. To close employee skill gaps by providing them with opportunities to learn and improve. To increase retention of good employees through improved engagement. Leadership Development Source: McLean & Company, 2013; N=469

10. McLean & Company10McLean & Company10 Job rotation programs achieve strategic objectives by reducing pains for the employee If employees lack meaningful challenges in their roles and feel that career opportunities are limited, they are organizational flight risks – especially as the economy rebounds. – Set Talent in Motion: Achieving Organizational Success with Talent Mobility Employee Pains Employees get bored or reach a career plateau. Employees are not getting enough development opportunities which drives down employee engagement. This is reflected by low development scores on engagement survey questions such as: 1.I can advance my career in this organization. 2.I am encouraged to pursue career development activities. 3.In the last year, I have received an adequate amount of training. 4.In the last year, the training I have received has helped me do my job better. These issues lead to a: o Decrease in job motivation. o Decrease in innovation. o Increase in turnover. Employee Pains Employees get bored or reach a career plateau. Employees are not getting enough development opportunities which drives down employee engagement. This is reflected by low development scores on engagement survey questions such as: 1.I can advance my career in this organization. 2.I am encouraged to pursue career development activities. 3.In the last year, I have received an adequate amount of training. 4.In the last year, the training I have received has helped me do my job better. These issues lead to a: o Decrease in job motivation. o Decrease in innovation. o Increase in turnover. Pain Reducing Effects of Job Rotation Rotating employees breaks up the monotony they feel in their current roles. It also provides them with additional development that helps them progress across the organization. A study done on pharmaceutical company Eli Lilly's job rotation program within their finance department reported that employees being rotated felt more motivated because: They viewed job rotation as an indication that the organization cares about them. They could tie the results of the program to very clear measureable outcomes, such as a promotion or salary increase. Source: Lisa Cheraskin, Michael A. Campion, Study Clarifies Job- rotation Benefits Mini Case Study: Eli Lilly

11. McLean & Company11McLean & Company11 Job rotation programs achieve strategic objectives by reducing pains for HR and the business HR Pains HR has to address increasing turnover rates with retention programs and initiatives that provide high value and are cost effective. HR has to deal with closing employee skill gaps for current and future business needs. o Planning to address looming skill gaps was one of the top two emerging HR trends for 2014 by HR and the Business. (Source: McLean & Company HR Trends & Priorities Survey 2014, N=502) o A large number of baby boomers will soon be retiring, leaving gaps in leadership and management positions. HR Pains HR has to address increasing turnover rates with retention programs and initiatives that provide high value and are cost effective. HR has to deal with closing employee skill gaps for current and future business needs. o Planning to address looming skill gaps was one of the top two emerging HR trends for 2014 by HR and the Business. (Source: McLean & Company HR Trends & Priorities Survey 2014, N=502) o A large number of baby boomers will soon be retiring, leaving gaps in leadership and management positions. Business/Bottom Line Pains The business is losing their competitive advantage due to employees lack of innovation or drive, which is negatively affecting the organizations placement in the market as result of stagnation. High turnover costs the business more money on recruiting to maintain staffing levels. Business/Bottom Line Pains The business is losing their competitive advantage due to employees lack of innovation or drive, which is negatively affecting the organizations placement in the market as result of stagnation. High turnover costs the business more money on recruiting to maintain staffing levels. Pain Reducing Effect Job rotation allows HR to move employees around to positions that target the skills they need to attain while still providing value to the organization, and minimizes turnover as employees leave their role, but not the organization. Pain Reducing Effect Reduced turnover saves the organization on turnover costs. Employees with more exposure across the organization’s functions can make decisions that incorporate more diverse points of views, leading to creativity in business products and processes. Internal movement is the lowest cost, highest ROI of anything going. – Dr. John Sullivan Development and Retention: Organizations who had a high score on the development driver in their engagement surveys were 1.5 times more likely to retain their employees than organizations with low development scores. Source: McLean & Company, N=13,419

12. McLean & Company12McLean & Company12 McLean & Company Helps HR Professionals To: hr.mcleanco.com Empower management to apply HR best practices Develop effective talent acquisition & retention strategies Build a high performance culture Maintain a progressive set of HR policies & procedures Demonstrate the business impact of HR Stay abreast of HR trends & technologies Sign up for free trial membership to get practical solutions for your HR challenges "McLean & Company provides practical research, tools and advice covering the entire spectrum of HR & Leadership issues to ensure you experience measurable, positive results." - Rob Garmaise, VP of Customer Experience Toll Free: 1-877-281-0480