1. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 1 Purpose of This Training Presentation Employee development often takes a backseat to improving business results. However, these goals are not mutually exclusive. This presentation and the accompanying PDF guidebook are designed to show managers how they can increase the returns on the time they spend developing hourly employees without increasing the time they dedicate to this activity. Quick Facts About This Training Key Audience(s): Managers of hourly employees Time Requirement: 45 minutes as designed (can be lengthened or shortened as desired) Materials Needed: Slide projector, notepads, pens, whiteboard, or flip-charts with markers Presentation Guide for HR/Training Professionals (Please click on the “View” menu and select “Notes Page” to begin) How to Use This slideshow is intended for presentation by HR professionals to groups of supervisors and line managers who manage hourly employees. Members wishing to offer these findings exclusively for self-study are encouraged to distribute the PDF version of this material directly to line managers. In most organizations, this presentation will enable HR practitioners to introduce managers to the content found in the PDF; in turn, managers can use the PDF version independently as reference material. Also available for follow-up are a couple of self-assessment exercises to the participants, mentioned later in the presentation. The presenter of this content should review the supplemental materials with training participants as part of the session. Before Using This Presentation Before conducting this training for your managers and distributing the associated supplemental materials, please incorporate the following customizations:  Remove this page.  Identify the sections you wish to distribute to your managers and delete the rest (if applicable).  Place your company’s logo on each page in the lower-right corner (or delete the “Insert Organization Logo Here” box).

2. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 2 Developing Hourly Employees 1 Your Role as a Manager CORPORATE LEADERSHIP COUNCIL ® HR LEADERSHIP COUNCIL ® Insert Organization Logo Here 1 Hourly Employee—An employee who is paid by the hour for the work that he or she does

3. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 3 OBJECTIVES FOR TODAY’S SESSION  Understand your role in the development of your direct reports.  Identify critical employee-development activities that most significantly improve the performance of your hourly employees.  Understand how you can become more effective at developing your hourly employees. Insert Organization Logo Here

4. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 4 The Business Case Activities That Improve Performance Increasing Your Effectiveness ROAD MAP FOR THE TRAINING Insert Organization Logo Here Self-Assessment

5. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 5 ARE YOU ACHIEVING A RETURN ON YOUR INVESTMENT IN HOURLY EMPLOYEE DEVELOPMENT? Insert Organization Logo Here Increasing Returns on Time, Not Increasing Time You already devote significant time to developing your hourly employees; you don’t necessarily need to allocate more time to this activity. Instead, you need to use this time more effectively. By doing so, you can significantly improve your direct reports’ performance. Managers invest roughly 20% of their time developing employees, but most struggle to perform well in this role. Average Time Managers Allocate to Employee-Development Activities Hourly Employees’ Ratings of Their Managers’ Development Efforts 1 Roundtable research indicates that the average manager spends 10 minutes per day per employee on employee-development activities; assumes average manager has 10 direct reports. 2 Representative activities include developing individual development plans, providing performance feedback, clearly explaining performance evaluation criteria, etc. Other Managerial Activities Development of Direct Reports 1,2 Neutral to Very Ineffective Somewhat Effective to Very Effective n = 3,078.n = 783. Source: CLC–Learning and Development research; HR Leadership Council research.

6. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 6 THE ONE-WORD ARGUMENT FOR YOUR ROLE IN EMPLOYEE DEVELOPMENT: PERFORMANCE Insert Organization Logo Here Hourly employees of managers who are very effective at development can outperform their peers by up to 29%. Impact of Manager-Led Development on Hourly Employee Performance Indexed Hourly Employees Reporting to Manager A Manager A is very ineffective at developing hourly employees. Hourly Employees Reporting to Manager B Manager B is very effective at developing hourly employees. Performance of Hourly Employees Reporting to Manager A Performance of Hourly Employees Reporting to Manager B Twenty-Nine Percent Performance Improvement Improvement is directly attributable to Manager B’s effectiveness at employee development. 29% 100% 129% Source: CLC–Learning and Development research; HR Leadership Council research.

7. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 7 FOUR MORE REASONS TO ACTIVELY DEVELOP YOUR TEAM Insert Organization Logo Here Managers who are effective at employee development have hourly employees who are more satisfied, more committed to the organization, and more likely to stay. Hourly Employees Reporting to Manager A Manager A is very ineffective at developing hourly employees. Hourly Employees Reporting to Manager B Manager B is very effective at developing hourly employees. Impact of Effective Manager-Led Development on Hourly Employee Attitudes and Behaviors Employee Retention Manager B’s hourly direct reports are 40% more likely to stay with the company than manager A’s hourly direct reports. Hourly Employees Reporting to Manager A Hourly Employees Reporting to Manager B Employee RetentionEmployee Satisfaction Discretionary Effort Organizational Commitment Hourly Employees Reporting to Manager A Hourly Employees Reporting to Manager B Hourly Employees Reporting to Manager A Hourly Employees Reporting to Manager B Hourly Employees Reporting to Manager A Hourly Employees Reporting to Manager B = 41.4% Discretionary Effort Manager B’s hourly direct reports are more likely to put extra effort into their jobs than manager A’s hourly direct reports. = 36.9%= 12.1% = 34.7% Source: CLC–Learning and Development research; HR Leadership Council research.

8. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 8 The Business Case Activities That Improve Performance Increasing Your Effectiveness ROAD MAP FOR THE TRAINING Insert Organization Logo Here Self-Assessment

9. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 9 QUICK QUIZ: WHICH DEVELOPMENT ACTIVITIES MATTER MOST? Insert Organization Logo Here Time-pressed managers lack guidance as to where they should focus their hourly employee development efforts. Seven Key Manager-Led Development Activities Activity and Definition 1.Assess Development Progress: Review where employees stand against their development goals. 2.Create Individual Development Plans (IDPs): Help employees create plans to meet their development goals. 3.Explain Performance Evaluation Standards: Help employees understand their performance review standards. 4.Feedback on Performance Strengths: Give employees feedback during performance reviews about their performance strengths. 5.Feedback on Performance Weaknesses: Give employees feedback during performance reviews about their performance weaknesses. 6.Feedback on Personality Strengths: Give employees feedback during performance reviews about their personality strengths. 7.Model Expected Development: Participate visibly in the types of learning activities in which employees are expected to participate. Which Activities Have the Biggest Impact on Hourly Employee Performance? Rank the activities to the left in the order of their importance. 1. 2. 3. 4. 5. 6. 7. Source: CLC–Learning and Development research; HR Leadership Council research.

10. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 10 FOCUSING ON WHAT MATTERS MOST Insert Organization Logo Here Hourly employees benefit most from managers who clarify performance standards and provide feedback. Impact of Specific Manager-Led Development Activities 1 on Hourly Employee Performance 1 For a complete definition of each activity, please see the previous page. Explain Performance Evaluation Standards Model Expected Development Feedback on Personality Strengths Feedback on Performance Strengths Assess Development Progress Create IDPsFeedback on Performance Weaknesses 19% 15% 13% 12% 11% 28% Source: CLC–Learning and Development research; HR Leadership Council research.

11. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 11 Insert Organization Logo Here THREE LEAD ROLES FOR MANAGERS The manager-led development activities that impact hourly employee performance fall into three roles across the breadth of the development process. Employee Development Process Performance and Development Strategist This role comprises activities that ensure employees know performance evaluation criteria and have development plans. Development Role Model This role consists of managers participating in the types of development activities in which they want their employees to participate. Honest Appraiser Activities falling into this role consist of informing direct reports of their job performance and progress against their development plans. Activity and Impact Explain Performance Evaluation Standards: 28.4% Create Individual Development Plans (IDPs): 11.9% Activity and Impact Model Expected Development: 18.5% Activity and Impact Assess Development Progress: 12.0% Give Effective Feedback on Personality Strengths: 15.4% Give Effective Feedback on Performance Weaknesses: 10.6% Give Effective Feedback on Performance Strengths: 13.0% Source: CLC–Learning and Development research; HR Leadership Council research.

12. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 12 The Business Case Activities That Improve Performance Increasing Your Effectiveness ROAD MAP FOR THE TRAINING Insert Organization Logo Here Self-Assessment

13. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 13 INCREASING YOUR EFFECTIVENESS Insert Organization Logo Here While many factors influence your effectiveness at employee development, your relationship with hourly direct reports is of paramount importance. Impact of Work Environment on Manager Effectiveness at Employee Development Factors Influencing Hourly Employee Development Effectiveness Impact of Factor on Manager Effectiveness at Hourly Employee Development Key Insight Primary Importance Your Relationships with Your Direct ReportsRelationships are the foundation of development. By creating an environment where hourly employees respect your leadership, trust your vision, and are loyal and committed to you, you can significantly improve your effectiveness at employee development. Commitment to DevelopmentBy helping your team see the business case for growth and development, you can substantially improve your effectiveness at development activities. Secondary Importance Your Employee-Development ExperienceManagers with more experience at employee development are slightly more effective in this role than managers with little experience. Although there is little you can do about your experience levels, you can seek out opportunities to gain exposure to development planning, execution, and evaluation activities. Your Organization’s Learning CultureYou are not constrained by culture. Organizational learning culture has relatively little impact on your ability to effectively develop hourly employees. Managers with healthy employee relationships are 27% more effective at employee development than managers with unhealthy employee relationships. 27.1% 15.8% 11.0% 5.1% Source: CLC–Learning and Development research; HR Leadership Council research.

14. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 14 ANATOMY OF A HEALTHY RELATIONSHIP Insert Organization Logo Here The nature and strength of your hourly employee relationships have a significant impact on your ability to develop hourly employees. Impact of Manager–Employee Relationship Attributes on Hourly-Employee Development Effectiveness Attributes of Manager–Employee RelationshipImpact of Attribute on Manager Effectiveness at Hourly Employee Development Key Insight Primary Importance Leadership and VisionYou can most influence your effectiveness at hourly employee development by inspiring your direct reports through consistent leadership and clear articulation of your vision. Relationship HealthBy creating positive employee perceptions about your working relationships, you can increase your effectiveness at hourly employee development by almost 53%. Trust and RespectDemonstrating a willingness to discuss topics of concern with your hourly direct reports and treating employees consistently, fairly, and with respect greatly contributes to your effectiveness at employee development. Loyalty and CommitmentIn contributing to a relationship where your hourly employees are committed and supportive of you and where they have a desire to perform well for you, you can increase the effectiveness of your employee development activities. Secondary Importance Your Interaction with EmployeesThe frequency of your in-person and electronic interaction with your hourly direct reports and the frequency of employee feedback both contribute positively to your development effectiveness. Your Management StyleManagers effective at employee development encourage team decision making and employee creativity and honor others’ boundaries. 57.7%52.9%42.7%37.2% 9.1% 7.7% Source: CLC–Learning and Development research; HR Leadership Council research.

15. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 15 The Business Case Activities That Improve Performance Increasing Your Effectiveness ROAD MAP FOR THE TRAINING Insert Organization Logo Here Self-Assessment

16. Corporate Leadership Council HR Leadership Council © 2010 The Corporate Executive Board Company. All Rights Reserved. HRLC-AD6129510SYN 16 SELF-ASSESSMENT Self-Diagnostic Exercise I—Focusing on the Right Activities Self-Diagnostic Exercise II—Establishing Healthy Relationships Insert Organization Logo Here Source: CLC–Learning and Development research; HR Leadership Council research.

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