1. STRATEGIES FOR ATTRACTING AND RETAINING A SKILLED IT WORKFORCE Albert Wong CTO, JobStreet.com March 2, 2004

2. Cost of turnover Direct cost: Severance cost Recruitment cost
Orientation
Transitioning - Learning up and Training
Easily add up to 3 or more months of staff cost
Indirect cost:
Lost of experience and knowledge
Opportunity cost
Staff morale

3. Contents What employees want? What employers want?
Retention case studies
Attracting new staff
Contracting and Outsourcing

4. What employees want?
Depends on individual, stage of life/career and external conditions
JobStreet Jan 2004 Survey: What non-monetary attraction will best attract you to stay with your current employer?
1. Honest communication/Trust 11.9%
2. More responsibility 4.9%
3. Challenging work 8.2%
4. Career advancement 43.6%
5. Work-life balance 31.4%

5. Retention Factors
Compensation Fair pay equated with performance and effort expended  
Culture & Work Environment Strong workplace communications, trust in employer and work relationships
Training & Development Training, mentoring, education and career development  
Supervisor Role
Overall performance of supervisor, working style and relations with staff  
Growth & Earnings Potential Opportunities for new skill development, promotion and financial reward
From Spherion Study in US

6. What do employer wants? ROI from employees productivity
quality of work
Need to balance between short term and long term

7. Case study – Company A IT organization of a MNC 30 staff
0 turnover in 4 years
Freeze hiring/salary increment last 2 year

8. What is the score for Company A?
Compensation
One of best paying in town. 14 months over 12 months.
Performance based system – perceived to be fair in most instances
Stock options
Culture & Work Environment
Reports directly to US, open communication and feedback, friendly and good work life balance. Minimal politics.
Training & Development
Budgeted 2 external training to be taken
Internal opportunities
Supervisor Role
Not dictatorial style – project timeline from bottom up, informal rewards, open feedback
Growth & Earnings Potential
Headcount growth of 30% for coming year, overseas exposure
A balanced work/life environment

9. Case study 2 - Company B Local company IT department 25 staff
25% turnover in last 2 years mostly in 1-2 years experience range
Hot skills - Web development
Core staff stayed

10. What is the score for Company B?
Compensation
Average compared to direct competitors - MNC
Private stock options
Culture & Work Environment
Flat organization, open, flexible, No politics. Some communication issues
Training & Development
Substantial on the job learning opportunity
Supervisor Role
Mostly less experience supervisors
Growth & Earnings Potential
Career path not well defined, less exposure compare to direct competitors
Less work/life balance

11. What is your company’s score?
Do a informal survey on how employees grade each of the factors on a 1-5 scale.
Get feedback regularly besides from formal reviews on what top employees want

12. Best Practices Don’t plan to retain all Identify stars
Work closely with them, and build up relationships.
Retain them
More demoralizing if stars leave
Be flexible - flexible hours (late hours common), no time clocking, casual dressing, free snacks, red tape/hierarchy
Work scope
Keep open communication and build trust. Make their opinions count. Regular 2 way feedbacks. Stop politics

13. Best Practices
Compensate fairly based on results and competitively vs direct competitors – not general market salary
Rewards
Cash
Training
Time off
Promotion
Stock options
Ask what they want – not what you want

14. Best Practices Set high entry point and expect high standards
Promote from within
Proper process and documentation
Pair staff where possible – back ups
Appreciate supporting staff

15. Best Practices Transitioning stages 3 month acclimatizing barrier
Buddy/mentor
1-2 year expectation leap
3-4 years - how am I doing assessment
Choose your location well if possible
Focus on improving business first

16. Role of Supervisor
Research shows immediate supervisor plays very important in retention
Gallop Survey – Book: First Break The Rules
Logical since supervisor likely has most effect on working “environment” of a staff
Do I know what is expected of me at work?
Do I have the materials and equipment I need to do my work right?
At work, do I have the opportunity to do what I do best every day?
In the last seven days, have I received recognition or praise for doing good work?
Does my supervisor, or someone at work, seem to care about me as a person?
Is there someone at work who encourages my development?

17. What attracts new staff?
Compensation and benefits
Advancement and learning opportunity
Company reputation

18. Attracting Employees Develop a good core team who loves the company
Build a continuous learning environment
Expect high standards and implement best retention practices

19. Build an Employment Brand
Encourage staff to talk about company with friends
Write about your best practices on your career web site
Generate publicity - win awards
Promote on campus – hire top students
Build academia relationships

20. Other Practices Employee Referral Program Cash based on confirmation
Effective for a number of companies
Signing bonus for hot areas
Stock options

21. Candidate Sources
Based on JobStreet Malaysia Customer Survey

22. Other staffing options
Contract staff
Outsourcing
Hiring from overseas

23. Contracting
Good for short term peaks or projects requiring specific experience
Access to skilled staff
Lower overall cost
Flexibility
No severance cost
Disadvantages
Possible integration and morale issue
Higher salary expected – at least 20% more
Direct or indirect through contracting firm
Option to convert to staff
Treat them like employees

24. Outsourcing Why outsource? Tactical Reasons Reduce cost
Reduce initial capital outlay
Lack of internal resources
Problematic functions but..
Strategic reasons
Business focus on core areas
Access to “better” capabilities/standards
Shared risks

25. Outsourcing Disadvantages Losing control
Vendor might not be able to provide desired results
Losing trained staff
Know what you want explicitly – specification, performance levels, internal interfaces
Work closely with outsourcing firm
Outsource development but down in house

26. Hiring Foreign Staff Usually on contracts Immigration Easier to retain
Recruiting process
Use search service as local knowledge needed
Hire from good schools
Culture issues

27. Conclusion There is no magic bullet to attracting and retaining staff
Work on finding and providing what each of your core employees values AND towards long term improved productivity in return
And if you are looking for IT staff in Malaysia, Singapore, India and Philippines, visit or us at

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