HRINTERACTIVE

HR must shed image of its gate keeper and administrator image and evolve into an innovator that can continually create & add value to the organization it serves.

As per Jim Pepitone , MD of Dallas based management consulting form , Pepitone worldwide , “ HR is well positioned to create substantial value because HR influences or controls most of the managerial systems that impact workforce performance , productivity and employee satisfaction .

According to Pepitone , HR can create value in two ways :

1) By having a substantial positive impact on performance
2) By reducing the resources consumed in meeting enterprise workforce needs .

This value creation formula can be written as

$ Impact on performance – $ Consumption of resources = $ Value added

The monetary impact of performance is the market value of the results created by an initiative . The dollar consumption of resources amounts to the resources consumed by the initiative . For HR such initiative could be any effort to improve the workforce performance , productivity or employee satisfaction : the key figure are the financial improvement to operations and the cost to create this improvement .

Defining & measuring value

Value is a finance term , a projection of worth of something and should not be confused with accounting terms such as profit , margin or ROI . value is an estimate of future benefits , where as accounting is concerned with what happened in the past . Furthermore , value is determined by potential buyers i.e. the market and often includes subjective factors that can not be accounted for based simply on costs .

One example of value creation we can relate to is real estate development or packaged tour organizers . For example , a developer buys land , adds infrastructure like roads and landscaping and then sells you an individual lot at a higher price than the cost of the bare land and proportionate expenses . The buyer sees value added in the lot when he thinks of how well a house on it suits his lifestyle . Likewise HR can create value for an organization by finding ways to improve workforce performance , productivity or employee satisfaction by creating a positive financial impact on operation .

For HR , management is the customer , so the value of initiative equals its worth to management . To estimate the value of any service or initiative , HR needs to ask management , What is it worth ? then proceed accordingly . If management does not see much value , then HR needs to refocus on initiatives in which management will .”

Trying to estimate management’s perception of value is a good place to begin . HR should calculate the value added of every existing HR programe or service by taking the following steps :

1. Calculate an estimate of the existing of the financial impact on operation

2. Considering the casual relationship and roughly guessing what percent of the impact management would say is attributable to HR .

3. Calculating the “Present value “ of HR’s percent of the impact using a time period management is likely to use ( 6 months / 24 months / 60 months )

4. Getting management ‘s buy-in by sharing your figures with them , yet accepting any changes they propose .

Once in a company , one GM expressed his concerned that operation was not getting enough qualified applicants applying for the jobs resulting in substantial increase in training cost and turnover , reduced product and service quality , reduced repeat business and probably damaged the company’s market image .

What is the financial consequences of this ?? He explains that it is costing the company $ 250K per month in training & recruitment cost , $ 1- 2 M a month in lost business and possibly ir-repairable damage to the company’s image . After working out other losses , the total comes to $ 45 - $ 50 M .

Now with the customers perception of value clearly in mind , HR could design an initiative to solve this problem and realize the potential value added .

Once management sees the value , attention shifts to concern as :

How quickly can we get started ??

What will you do ??

What evident do we have that it will work ??

Is there something which our competitors are doing or know about ??

That is the beginning of a true business partnership . Now HR should keep the management in loop during the design & delivery process .

HR takes the lead

Now management is looking forward to HR to lead initiatives that can add value.

1. Development :- Aggressive goals , improve innovation productivity , better ideas .
2. Production :- Higher standards , increased productivity , better quality products , more throughput , fewer disputes .
3. Marketing :- Steep objectives , higher productivity , more customers , more profitable sales , fewer customer complain etc.
4. Distribution :- Reduced service cycle time , Reliable on time delivery , Better image .

HR should initiate process to encourage the above .

These efforts create financial value through improved customer satisfaction , competitive advantage , higher unit sales , greater profit , bigger market share and faster company growth .

The value based initiative proposal and monthly reports

Since HR’s worth to management is the sum of the value of its services , value added should be a key measure in HR’s monthly report . “ If all that HR reports is activity and expenses , it is easy to understand why HR often is not given the respect it deserves .”

As a value creation centre , HR should report on all of its work in terms of the value being created . So an important part of this value based initiative process is a written one page note for each initiative summerizing

1) The business unit , Dept , section & manager in charge
2) Explanation of the project i.e Description of current situation , the initiative objective and the current gap , Description of entire initiative & the desired outcome in terms of activity , timing , cycle time & facilities , Projected value addition i.e. impact on performance , investment , pay back period etc..

Creating such report begins with the calculation of value of existing services and listing them in declining value order ( Highest value adding services at the top ) . The total value of all these services equals to HR’s value contribution to the organization .

When HR prepares its first monthly value based report , it may find that some of its services are not creating value . If that is the case , He should talk to management about dropping these services and replacing them with initiatives that do . The opportunity for HR to ad value in this way is tremendous .

There has been a shift in the make up of the workforce from the machine worker of 100 years ago to knowledge & service workers of today . So it is a great opportunity for HR to tap the human capital & unleash its inherent greater value .

Most organisations today realise that a ‘satisfied’ employee is not necessarily the ‘best’ employee in terms of loyalty and productivity. It is only an ‘engaged employee’ who is intellectually and emotionally bound with the organisation, feels passionately about its goals and is committed towards its values who can be termed thus. He goes the extra mile beyond the basic job responsibility and is associated with the actions that drive the business. Moreover, in times of diminishing loyalty, employee engagement is a powerful retention strategy. The fact that it has a strong impact on the bottomline adds to its significance.

Engagement is about motivating employees to do their best. An engaged employee gives his company his 100 percent. This is what makes the difference in an industry where the most valuable resource of a company walks out of the door every evening. This is of particular importance in a knowledge industry. The quality of output and competitive advantage of a company depend on the quality of its people . As per Mr Sunil Kumar , VP – HR , Vertex “It has been proved that there is an intrinsic link between employee engagement, customer loyalty, and profitability.”  “When employees are effectively and positively engaged with their organisation, they form an emotional connection with the company. This impacts their attitude towards the company’s clients, and thereby improves customer satisfaction and service levels.” Kumar points out that a successful employee engagement helps create a community at the workplace and not just a workforce.

Need to connect                              

Virtual work practices being the order of the day, one of the greatest challenges for global organisations has been engaging a dispersed workforce. Hemant Sharma, Head HR, Sun Microsystems India, focusses on the significance: “As organisations globalise and become more dependent on technology in a virtual working environment, there is a greater need to connect and engage with employees to provide them with an organisational ‘identity.’ Especially in Indian culture, this becomes more relevant given the community feeling which organisations provide in our society.”

All companies are aware that they need to do a better job of managing their people. Burke Inc research shows that engaged employees are more likely to stay, and be an advocate of the company, its products or services. They contribute to the overall success of the organisation. A greater number of loyal employees ensure low recruitment and training costs, in effect enhancing the productivity of the organisation. They are also more willing to put in extra effort when the organisation needs it . Their impact on the working environment is also significant as they are more focussed on organisational benefit than personal goals. This consequently reduces feelings of acrimony and internal rivalries. They also project a positive image to new recruits and this motivates the latter to perform better and assimilate themselves in the office culture. Research also shows that engaged employees in customer-facing roles are more likely to treat customers in ways that positively influence customer satisfaction’

Organisation initiatives

Engagement initiatives followed at HCL :

• Choosing the right fit and giving a realistic job preview
• Strong induction and orientation programme
• Rigorous training and development, from technical to soft skills to leadership development programmes. Apart from this, there are other forums like enable@HCL which has regular technical/soft-skill updates. HCL also has a certification programme for freshers which empowers young engineers
• To keep up the morale of people and drive them towards excellent performance, HCL has various incentives such as recognition letters, profit sharing schemes, long performance awards, ESOPS, building assets like own home
• Regular feedback to all people
• Communication forums like the in-house magazine Intouch, innovate@HCL (an e-forum to develop entrepreneurship), and regular surveys and conferences
• To maintain the quality of work-life and a balance between personal/professional lives, there are recreational activities like festivities@HCL, get-togethers@HCL, sports@HCL, etc
• An open and transparent culture to empower its people and develop entrepreneurs.

“The result of these practices is evident through the regular feedback from our employees collected through conferences and surveys, apart from the employee engagement survey conducted every second year. The proof is the latest increase in employee engagement from 54 percent to 64 percent

Engagement initiatives at SUN MICROSYSTEMS

1.     Flexible working arrangement  . However, flexibility comes with a trade-off—the isolation of distance. This isolation, especially when paired with the demands of work in an increasingly competitive environment, can wear down a worker’s sense of connection, commitment and excitement about the job. Keeping remote employees engaged is a critical challenge for managers.

2.      Communication : Scott McNealy  CEO and other senior management team interacts with our employees through WSUN, a forum on Sun’s intranet where he engages in active dialogue once a month on corporate goals and directions, and also solicits their feedback, opinions and pet peeves.  Many seniors engage with employees on technology directions through his personal blog. Our business unit Heads and Executive Vice-presidents have a target of holding six ‘townhalls’ with employees every year across the globe. We also reach out to the employees’ families by inviting and involving them in some events. The internal website of Sun is updated daily, thus keeping employees abreast of the happenings and developments in their organisation.

A matter of partnership

Global studies suggest that there are three basic aspects of employee engagement:

• The employees and their own unique psychological make up and experience
• The employers and their ability to create the conditions that promote employee engagement
• Interaction between employees at all levels.

Employee engagement is a partnership between a company and its employees where everyone works together to achieve the business objectives of the company and the personal aspirations of the employees. It is therefore largely the organisation’s responsibility to create an environment and culture conducive to this partnership, and a win-win equation. Employee engagement is a barometer that determines the association of a person with the organisation. An associated or engaged employee is, after all, a productive employee. However, in practice, engagement transcends this. It is about creating the passion among associates to do things beyond what is expected of them. A highly engaged employee will consistently deliver beyond expectations. A productive employee who has a sense of belonging and a strong bond with the company and its brand will create a ripple effect that results in a positively charged atmosphere in the organisation.

Research and personal experience point to the fact that most employees want something more than engagement. “Pioneering work from Gallup Research suggests that engaged employees are more likely to trust their companies and promote their business agenda. Beyond the common sense from Gallup is the bigger picture, that of developing the leadership mass and core of the organisation through and beyond engagement .

The loyalty factor

The key to employee engagement is creating greater motivation for their work and commitment to their organisation. It is not possible to retain professionals only by paying high salaries and offering attractive benefits. We need to create enthusiasm for their roles, their work and the organisation, and ensure they are well integrated. Employee engagement relates to the employee’s commitment to the organisation’s success. Engaged employees who are inspired and guided by the leadership, equipped with the right tools and managed by the right systems and processes deliver superior performance.

Employee engagement today encompasses training, development, work environment, leadership, performance management, work/life balance, communication, compensation, benefits, commitment, fun and social activities. This, enhances the bonding between employees and commitment to the company.

Employee engagement is a psychological association. When one company did research on employee engagement in Britain it found that certain factors made a difference.

Employees want to work for an organisation that:

• Is successful
• Is legal
• Provides opportunities to grow
• Has managers who help employees
• Is socially responsible.

Benefits to the organization

• Employee engagement builds passion, commitment and alignment with the organisation’s strategies and goals
• Attracts more people like existing employees Increases employees’ trust in the organisation
• Creates a sense of loyalty in a competitive environment
• Lowers attrition rate
• Increases productivity and improves morale
• Provides a high-energy working environment
• Improves overall organisational effectiveness
• Boosts business growth
•  Makes the employees effective brand ambassadors for the company.

Measuring employee engagement

Employee engagement can be revealed in several ways, including ‘pulse’ to annual surveys, tracking changes in the attrition rate, increase in the number of employee referrals, and growth in productivity and business.

In many organisations, the age-old Employee Satisfaction Surveys were considered the most popular method for measuring how happy an employee was in the organisation. This is slowly being replaced by surveys that can effectively measure employee engagement. For example, Vertex conducts the annual Employee Opinion Survey across the organisation. This survey is designed and analysed by an independent body. “The analysed results help us gauge the level of employee engagement within the company. It also helps identify weak areas. After each annual survey an Action Planning Group is formed within the organisation that comprises a cross-section of people from across the company; all departments and all levels are fairly represented. This group then works on different projects leveraging the strengths identified by the survey,” informs Kumar.

Paradox Studios measures employee engagement from two dimensions: how employees feel (their emotions toward the company, the leadership, the work environment, etc) and/or how they intend to act in the future (will they stay, give extra effort, etc.) This is conducted regularly through a questionnaire and is measured on various parameters pre-defined by the HR team. Employee engagement needs to be measured at regular intervals in order to track its contribution to the success of the organisation.

eFunds measures employee engagement by conducting an Employee Engagement Survey (EES) once every two years in association with a leading global consultant. The survey is conducted at the same time across all eFunds sites worldwide. “This exercise is also supplemented by conducting dipsticks on several issues concerning employee engagement and morale,”

At Flextronics, EES is an annual feature. “It measures employee behaviour on important engagement parameters. The questions are hosted on the organisation’s Web site. There are over a hundred statements and people rate them from ‘strongly agree’ to ‘strongly disagree. The findings of the survey are analysed and the points that need to be addressed are acted upon accordingly.

Conducting a survey without planning how to handle the result can lead employees to disengage. It is therefore not enough to feel the pulse—the action plan is just as essential.

PERFORMANCE APPRAISAL OR PERFORMANCE MANAGEMENT  ??

Organizations exist to perform. If people do not perform organizations don’t survive. If people perform at their peak level organization can compete and create waves. Performance management system (PMS) is the heart of any ” people management ” process in organization.

Performance management systems if properly designed and implemented can change the course of growth and pace of impact of organizations. In the past organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management.

Performance management involves - enhancing performance of:

Individual

Dyads

Teams & SBUs

Organisations

Performance Management means

Identifying the parameters of performance and stating them very clearly

Setting performance standards

Identifying competencies and competency gaps that contribute/hinder to performance

Planning performance development activities

Creating ownership

Recognizing & promoting performance culture

Performance management is a continuous process for competence building , commitment building and culture building process rather than limiting it to appraisal.

Performance appraisals, performance reviews, appraisal forms, whatever you want to call them, let’s call them gone. As a stand-alone, annual assault, a  performance appraisal  is universally disliked and avoided. After all, how many people in your organization want to hear that they were less than perfect last year? How many managers want to face the arguments and diminished morale that can result from the performance appraisal process?

How many supervisors feel their time is well-spent professionally to document and provide proof to support their feedback - all year long? Plus, the most important outputs for the performance appraisal, from each person’s job, may not be defined or measurable in your current work system. Make the appraisal system one step harder to manage and tie the employee’s salary increase to their  numeric rating  .

If the true goal of the performance appraisal is employee development  and organizational improvement, consider moving to a performance management system. Place the focus on what you really want to create in your organization - performance management and development.

Second only to firing an employee, managers cite performance appraisal as the task they dislike the most. This is understandable given that the process of performance appraisal, as traditionally practiced, is fundamentally flawed. It is incongruent with the values-based, vision-driven, mission-oriented, participative work environments favored by forward thinking organizations today. It smacks of an old fashioned, paternalistic, top down, autocratic mode of management which treats employees as possessions of the company.

The Traditional Performance Appraisal Process

In the conventional performance appraisal or review process, the manager annually writes his opinions of the performance of a reporting staff member on a document supplied by the HR department. In some organizations, the staff member is asked to fill out a self-review to share with the supervisor.

Most of the time, the appraisal reflects what the manager can remember; this is usually the most recent events. Almost always, the appraisal is based on opinions as real performance measurement takes time and follow-up to do well. The documents in use in many organizations also ask the supervisor to make judgments based on concepts and words such as excellent performance (what’s that?), exhibits enthusiasm (hmmm, laughs a lot?) and achievement oriented (likes to score?).

Many managers are uncomfortable in the role of judge, so uncomfortable, in fact, that performance appraisals are often months overdue. The HR professional, who manages the appraisal system, finds his most important roles are to develop the form and maintain an employee official file, notify supervisors of due dates, and then nag, nag, nag when the review is long overdue.

Despite the fact that annual raises are often tied to the performance evaluation, managers avoid doing them as long as possible. This results in an unmotivated employee who feels his manager doesn’t care about him enough to facilitate his annual raise.

Employee Performance Appraisal is Painful and It Doesn’t Work

Why is this established process so painful for all participants? The manager is uncomfortable in the judgment seat. He knows he may have to justify his opinions with specific examples when the staff member asks. He lacks skill in providing feedback and often provokes a defensive response from the employee, who may justifiably feel he is under attack. Consequently, managers avoid giving honest feedback which defeats the purpose of the performance appraisal.

In turn, the staff member whose performance is under review often becomes defensive. Whenever his performance is rated as less than the best, or less than the level at which he personally perceives his contribution, the manager is viewed as punitive.

Disagreement about contribution and performance ratings can create a conflict ridden situation that festers for months. Most managers avoid conflict that will undermine work place harmony. In today’s team-oriented work environment, it is also difficult to ask people who work as colleagues, and sometimes even friends, to take on the role of judge and defendant.

Further compromising the situation, with salary increases frequently tied to the numerical rating or ranking, the manager knows he is limiting the staff member’s increase if he rates his performance less than “outstanding”. No wonder managers waffle, and in one organization with whom I worked, ninety-six percent of all employees were rated “one”.

Performance Management System Defined

Performance management begins when a job is defined. Performance management ends when an employee leaves the company. Between these points, the following must occur for a working performance management system.

·         Develop clear job descriptions. Job description  is the first step in selecting the right person for the job, and setting that person up to succeed. I do not mean traditional job descriptions that ended with “and whatever else you are assigned by the manager.” I believe job descriptions provide a framework so the applicants and new employees understand the expectations for the position. I much prefer to see these expressed as outcomes.

·         Select appropriate people with an appropriate selection process. People have different skills and interests. Jobs have different requirements. Selection is the process of matching the skills and interests of a person to the requirements of a job. Finding a good job “fit” is exceptionally important. Use a selection process that maximizes input from potential coworkers and the person to whom the position will report.

·         Negotiate requirements and accomplishment-based performance standards, outcomes, and measures. Ferdinand F. Fournies, in his long-lasting book, Why Employees Don’t Do What They’re Supposed to Do and What to Do About It, clearly states the first reason why people sometimes fail to meet your expectations. He says employees don’t know what they’re supposed to do.

·         Provide effective orientation , education, and training. Before a person can do the best job, he or she must have the information necessary to perform. This includes job-related, position-related, and company-related information; an excellent understanding of product and process use and requirements; and complete knowledge about customer needs and requirements.

·         Provide on-going coaching and feedback. People need ongoing, consistent feedback that addresses both their strengths and the weaker areas of their performance. Effective feedback focuses more intensely on helping people build on their strengths. Feedback is a two-way process that encourages the employee to seek help. Feedback is usually more effective when requested. Create a work environment in which people feel comfortable asking, “How do you think I’m doing?”

·         Conduct quarterly performance development discussions. If supervisors are giving employees frequent feedback and coaching, performance reviews can change from negative, evaluative, one-sided presentations to positive, planning meetings. Held quarterly, employees always know how they are performing and their next goals and challenges.

·         Design effective compensation and recognition systems that reward people for their contributions. The power of an effective compensation system is frequently overlooked and downplayed in some employee motivation-related literature. I think this is a mistake. It is often not so much about the money as it is about the message any reward or recognition sends to an individual about their value. Money has become a metaphor for value.

·         Provide promotional/career development opportunities for staff. The supervisor plays a key role in helping staff develop their potential. Growth goals, changing and challenging job assignments and responsibilities, and cross-training contribute to the development of a more effective staff member. Help to create an environment in which people feel comfortable to experiment and make mistakes.

·         Assist with exit interviews to understand WHY valued employees leave the organization. When a valued person leaves the company, it is necessary to understand why the person is leaving. This feedback will help the company improve its work environment for people. An improved work environment for people results in the retention of valued staff. If your environment truly encourages discussion and feedback, you will learn nothing new in an exit interview .

The impact of the Human Resources professional on this performance management system is powerful.

·         You can encourage managers and supervisors to take responsibility for managing performance in their work area and cooperating for performance improvement across the organization.

·         You can promote the understanding that even if one individual’s work area, shift, or department is successful, this will not result in a well-served customer. Because all components of your organization are part of a system that creates value for your customer, all components must be successful.

So, too, in your performance management system, all components must be present and working to create value for each employee and the organization.

Am I completely against performance appraisals? Yes, if the approach taken is the traditional one I have described in this article. It is harmful to performance development; damages work place trust, undermines harmony and fails to encourage personal best performance. Furthermore, it underutilizes the talents of HR professionals and managers and forever limits their ability to contribute to true performance improvement within your organization.

A performance management system, which I would propose to replace the old approach, is a completely different discussion. And, I don’t mean renaming performance appraisal as “performance management” because the words are currently in vogue. Performance management starts with how a position is defined and ends when you have determined why an excellent employee left your organization for another opportunity.

Within such a system, feedback to each staff member occurs regularly. Individual performance objectives are measurable and based on prioritized goals that support the accomplishment of the overall goals of the total organization. The vibrancy and performance of your organization is ensured because you focus on developmental plans and opportunities for each staff member.

Performance Feedback

In a performance management system, feedback remains integral to successful practice. The feedback, however, is a discussion. Both the staff person and his manager have an equivalent opportunity to bring information to the dialogue. Feedback is often obtained from peers, direct reporting staff, and customers to enhance mutual understanding of an individual’s contribution and developmental needs. (This is commonly known as 360 degree feedback.) The developmental plan establishes the organization’s commitment to help each person continue to expand his knowledge and skills. This is the foundation upon which a continuously improving organization builds.

The HR Challenge

Leading the adoption and implementation of a performance management system is a wonderful opportunity for the HR professional. It challenges your creativity, improves your ability to influence, allows you to foster real change in your organization, and it sure beats the heck out of “nag, nag, nag”.

What Do You Think?

Is your organization ready to toss out the traditional performance appraisal?

Employee engagement (or disengagement) has become one of the hottest issues in the workplace today. But with recent research highlighting the fact that employee disengagement is a global epidemic, organisations still clearly have much work to do to ensure that their workforce can be properly inspired and motivated.

More managers and leaders ask me “how to engage” and, “how to innovate” than any other question. As well they might, given that so many of us have to disengage just to survive their endless ill-conceived meetings, badly-laid plans, and the waste, day by day, minute by minute, of our lives.

The many faces of employee engagement

A study of workers in 22 countries by HR consultancy Mercer has found sharp differences around the world in what makes workers tick.

For Britons and Americans it is all about respect. For workers in France and India it is the type of work they are doing. For Germans it is who they work with. And for the Japanese, it is pay. Employee engagement, it is clear, takes many different forms around the world.

Workers around the world are fired up by completely different things, according to new research, meaning that a global, one-size-fits-all approach to employee engagement will almost inevitably be doomed to failure.

Employees were asked which of 12 factors most influenced their engagement at work, with surprisingly varied results.

Overall, respect was identified as having the strongest impact on engagement globally, and was the top factor noted in the UK and U.S.

But it was notable that in Japan – where respect is much more of a “given” in society and culture in general – it was considered a much less significant driver of employee engagement.

Similarly, workers in France and India cited the type of work they were doing as the strongest driver of engagement for them.

In Japan, employees rated base pay as their most important factor, while in China, benefits topped of the list.

German workers, meanwhile, cited the people they worked with as their strongest factor, said Mercer.

While employees across the world considered a healthy work-life balance to be an important driver of engagement, this was also less of a factor for workers in China and India.

Being able to provide good customer service was also a strong driver globally, especially in the UK, yet was rated by Japanese workers as the least important of their 12 factors.

“Even when workplace characteristics are shared – such as English as a first language – differences in national culture, the state of economic development and market conditions can have a significant influence on employee expectations and perceptions of the workplace and, subsequently, on employee engagement,” said Dr Patrick Gilbert, a principal and employee research expert at Mercer.

“In the absence of any other information, focusing on the popular engagement factors would allow a multinational company to address areas that could raise levels of employee engagement,” he added.

“However, because context is so critical, it is more powerful to look at country-specific and organisation-specific data to raise levels of engagement.

“That includes conducting your own employee research and comparing the findings to normative data, analysing the results to identify the strongest drivers, and then developing a comprehensive action plan to produce the desired changes,” he recommended.

It was also clear that surveys on employee engagement had to be interpreted with caution, and very much located within their cultural and geographical context.

For example, employees responding to the study gave an overall favourable rating of 57 per cent to the 130-plus study questions.

Yet countries such as India, Mexico and China had much higher overall favourable ratings, while countries such as Japan, Korea and Portugal had much lower overall favourable ratings.

“Employee research has long documented consistent cultural differences across countries,” said Gilbert.

“When an organisation looks at its own employee survey data, it needs to take these differences into account,” he added.

“Without the benefit of this perspective, it could reach an incorrect interpretation – perhaps assuming that there are significant issues among its Japanese workforce and few issues with its Mexican workforce when, in fact, employee survey scores simply tend to be lower in Japan and higher in Mexico,” he concluded.

TEN STEPS TOEARDS ENGAGMENT

It can be a tall order trying to keep your employees interested and engaged in their work. According to the business consulting organization SCORE, there are 10 things you can do that will help. Keeping these things in mind can help you manage better and keep your office productive.

1. Throw out any pre-conceived notions you may have about employees in general.
2. Try to approach your people with fresh eyes and take into account their unique perspective.
3. Make sure all of your people are equipped with what they need to do their job.
4. When you manage your employees make sure they understand exactly what is expected of them in their respective jobs.
5. Take time to get to know your employees and what their career goals are.
6. Pay the money needed and take the time to make sure your workers are properly trained.
7. Ask your direct-reports to evaluate you. Find out how they perceive you and your work and adjust accordingly.
8. Pay attention to the office rituals and what’s going on around you.
9. Recognize and reward employees who have done their job well and do a good job of this so others will want to do the same.
10. Be consistent. Don’t start programs and then drop them after a few weeks. So stick with it.

Whatever you do, taking the old adage of the manager who hides in his office is exactly the wrong way to go. Talk to your people, get to know them, and treat them like human beings and you’ll get a response in return.

Keeping good employees requires careful planning.  

HR executives observe that the two most challenging groups of workers to retain are those at the beginning and those at the end of their careers. Each group requires a unique set of strategies to get them to stay put, according to MRINetwork, the world’s largest search and recruitment organization.

“Some HR managers refer to younger workers as ‘hummingbirds,” says Michael Jalbert, president of MRINetwork, “because they so often flit from job to job. At the other end of the spectrum are the ‘golden agers,” people whose years of experience and institutional knowledge are valuable assets to their companies.”

Jalbert says that companies have to do a better job of understanding the needs and motivations of each group in order to retain them. The hummingbirds, for example, respond best when their managers:

* Initiate face-to-face interaction. Gen Xer’s want one-on-one feedback about their performance. Although they’re very comfortable with technology, they highly value face time with their bosses.

 * Provide short-term incentives. Flexible work schedules, performance-based bonuses and other programs that reward them immediately earn high marks with the younger generation. Long-term benefits, like 401(k) plans, aren’t as effective in either recruiting or retaining younger workers.

* Ask for their opinions. Surveys of younger workers indicate that they place a premium on management that ‘listens.’ They’re more likely to stay in positions where they feel their opinions are valued.

* Give them some autonomy. Effective managers help them establish their goals and time frames, and then allow them to reach those goals according to their own individual styles.

Those workers nearing retirement require a different set of incentives, says Jalbert:

* Throw stereotypes out. Treat them with the same respect that should be accorded to all employees. Don’t assume they know nothing about technology or that you have to speak in a louder voice to them.

* Consider their Social Security situation. Workers under 67 could have their benefits reduced if they earn too much money. Management can help them adhere to the rules so they don’t get penalized.

* Don’t stop training them. Most older employees still enjoy the challenge of learning something new. They should get the same training opportunities offered to anyone else in the organization.

* Factor in their families. This group has often spent their whole careers working 50 or even 60 hours a week. They might want to continue working if flexible schedules or part-time options are available to them. It’s also a great way to attract experienced people to a company.

Jalbert says that any organization’s workforce is stronger when it embraces generational diversity. “Each group brings its own set of benefits to the table,” he says. “The hummingbirds gain mentors who can be invaluable in fostering career development, and the golden agers are stimulated by the enthusiasm and energy of their younger co-workers.”

Every employee is valuable and plays an important role in helping the organization fulfill the mission. So the goal is to retain the employees the organization has and encourage them to develop the organization , both personally and professionally, while providing them with the tools to do so. And since each employee is different, organization uses number of methods available to accomplish this.
Perhaps the best place to start is by asking your employees directly how they would like to be recognized and rewarded. The insights they provide may open your eyes to the variety of opportunities available and enable you to more effectively demonstrate that you appreciate their contributions to the work place. The following presents some popular ways to recognize and reward your employees.
Autonomy
Give employees the freedom to move around within their position, without sacrificing job performance. Employees who feel some ownership over their positions care more about what they do and feel more responsible for its success. This translates into benefits for the department in the way of new ideas, increased efficiency and more interested employees. (D. Adkerson, 2000)
• Allow for freedom to work independently (not micromanaged)
• Allow for flexibility in work hours (where position allows)
• Allow individuals to develop/improve processes for accomplishing tasks (where appropriate)
Development/Advancement
Having knowledgeable and competent employees is a key to our success. Providing them with the tools and opportunities to increase and hone their skills gives you a more qualified staff to work with.
• Allow staff to take advantage of formal training opportunities, especially those brought to the Tacoma campus. (Also, e-Learning and Training and Development courses)
• Allow staff to utilize the new skills they learn as soon as possible.
• Give employees the opportunity to brief you or others in the department on what they learned in training.
• Provide in-house training and cross-training opportunities.
• Talk to staff about their career goals and try to incorporate some into the job as appropriate and relevant.
• Empower staff to make decisions about their jobs to enhance the position

• Reclassify positions as appropriate

Fun! :-Doing something fun once in a while allows employees to let go of the stresses of the day (week or month) and re-energize themselves to be more productive! This can also create better relationships within the office if employees are allowed to “goof around” a little with their work mates.
• Write positive comments on Post-It® notes and leave them for your employees to find unexpectedly. (M. Gregory, 2001)
• Give your team members Silly String® to let off a little steam during high stress times. (M. Gregory, 2001)
• Provide staff with kazoos to “voice” frustration. (M. Gregory, 2001)
• Provide opportunities to laugh and socialize.
• Throw lunch parties to celebrate special events.
Meaningful Work
There are tasks to everyone’s job that are less enjoyable than others, but there may be opportunities to assign work that is challenging, fun and/or meaningful to the employee and that furthers the department in reaching their goals. Of course, the less enjoyable tasks must still be done, but providing opportunities for a variety of tasks may enhance the job enough to make those duties less tedious.
• Recognize individual talents and interests when assigning work projects
• Let staff cross train on other functions
• Allow for some expansion/variety of job duties which may break up the monotony of a position (but not necessarily an increase in complexity – which could lead to a reclass)
• Rotate interesting projects among employees
• Allow employees to participate in campus committees (Staff Association, Diversity Task Force, Combined Fund Drive Committee, etc.)

Money
Even within tight budgets, this may be a possibility within your department because the amount of money involved is usually small in comparison to the positive effects it can have on your employees.
• Reclass or promote where appropriate
• Give raises (for equity, retention, reflection of work performed)
• Approve requests for CEGP increases for contract-classified staff
• Give bonuses as part of an established departmental award program—up to $200 in state unds per employee per year can be awarded for recognition purposes.
Piece of the Action
Give your employees a piece of the action. Employees don’t necessarily want to run the department, but they may like to contribute to bettering the department. This makes them feel a part of something and that their opinions matter. You as the supervisor will still make the final decision, but their insights may help broaden your perspective and help you make an even better decision.
• Ask staff directly for their opinions and ideas—individually and in meetings
• Encourage them to provide you feedback at any time
• Have staff participate on committees and in meetings
• Recommend your employees to others as a resource or subject matter expert
• Assign staff projects which draw on their ideas and creativity
Prizes
Just like money, little prizes can go a long way in saying ‘thanks’ even if the monetary value is not high. Be creative and customize the prizes that you are giving to the employee that you are giving it to. This lets your employee know that you recognize and appreciate their work and that you are interested in them as individuals. Prizes can be given for completing special projects, making significant departmental improvements/contributions, reaching goals and other noteworthy accomplishments.
• Gift certificates (cannot be redeemable for cash)
• Flowers
• Chocolate!
• Lunch with you
• Various little prizes promoting teamwork and excellence that they can use at work.

Recognition
Employees should know how much their work is being valued – by their supervisor, by their department and by the campus. While recognition need not be done by means of a lavish ceremony, it should be done quickly and clearly. Employees should know what they are being recognized for and be encouraged to continue contributing in a positive way.
• Extend a personal congratulations for a job well done
• Write a personal note or letter of thanks (especially from department directors)
• Recognize individuals and teams at staff meetings
• Hold special meetings to celebrate successes and special events (Service Awards, special accomplishment/awards, goodbyes, etc.)
• Create a “Good Tries” booklet to recognize those whose innovations didn’t achieve their full potential (B. Nelson, 1996)
• Name a space in your department after an employee and put up a sign (B. Nelson, 1996)
• Develop a departmental award program and create a certificate
• Nominate employees for campus-wide awards (Distinguished Staff Award)
Time Off
Recognize that your employees have a life beyond work. Allow them reasonable flexibility within the scope of departmental needs to establish a balance between work and their personal lives. This may result in them working better when they are here.
• Allow for flex-time, if appropriate for position.
• Consider alternative work schedules.
• Allow them to temporarily decrease FTE during your department’s slow months.
• Professional staff can be given up to 6 days of discretionary leave each year for exceptional performance.

For all the hype and  Hoopla about the Internet, what after all is this e-Recruiting? Simply stated, it is leveraging the Web’s unique properties to achieve your hiring goals.

With the advent of the World Wide Web, there has been a paradigm shift in the ways companies recruit the world over. According to IDC Research, 96% of all companies will use the Internet for their recruitment needs. Forrester Research Institute also estimates , expenditure on Internet-based recruiting will be $ 7 billion. In the U.S., some companies claim 40% of new hires are from the Internet and 77% of Internet users who are seeking a change, use the Net to do so. As e-Recruiting has come up a long way India, but hardly any statistics are available. However even the most casual observer will concur that it is spreading very very fast. 

The Internet is an unique powerful communication medium and, as such, the most powerful recruiting tool available today. Online recruiting comes at an opportune time when new sourcing methods are desperately needed. Let’s examine in detail the significant advantages of Internet Recruiting.

Candidates who frequent the Net are generally of better quality. Those who use the Internet as a job hunting tool tend to be better educated and more computer literate than non-users. 

Cost-per-hire is significantly lower. There are three cost elements a] Direct cost b] Indirect cost  c] Manpower cost.

    Compared to traditional recruiting methods such as newspaper Ads, or career fairs, the cost of advertising on the Net is significantly lower; in fact usually a fraction of the print Ad cost. 

   You save a lot on indirect costs such as courier, phone calls, [specially,long distance calls] and stationery. In most cases, the Internet can effectively substitute costly traditional communication media.

    Savings on Manpower cost of your staff too is significant. Laborious, time-consuming opening of envelopes, manual sorting of resumes, filing, these are all done away with the advent of electronic resumes. 

Telescoping Recruiting Lead Time

Enlarged Candidate Pool

Phenomenal Geographical Reach  

The Web knows no geographical boundaries. The entire globe is your audience. The Internet is specially useful if you are sourcing overseas talent and that too from multiple countries. For a position based  in Malaysia, a candidate was sourced from Saudi Arabia and recruited in less than 2 weeks.

An Unique Communication Medium.

  The expansive nature of the Internet facilitates addressing lengthy communications to the target audience. Really good candidates invariably have a whole lot of questions about the prospective employer, KRAs, portfolio, career prospects, etc. Elaborate information difficult to pack in a print Ad but so easy to upload on the Net.

    Recruiting through the Net enhances a company’s image and gives it a ‘professional’ touch.

 The interactive capability of the Internet facilitates instantaneous two-way communication and  engages a job seeker through the provision of relevant ‘links’. 

 It’s a very convenient 24 x 7 medium that can be used anytime, anywhere. Also adds to efficiency. 

   Enables employees and jobseekers to be more specific about their needs.

Streamlines Hiring Process  

Resumes can be formatted to be received in a standard format. Resume summaries as per the desired fields can be arranged and printed in minutes. Applicant tracking is simple and more efficient.  

To understand the true potential of the Internet and what it has already achieved, we will need to turn our gaze to the land which gave birth to the WWW, the U.S. Developments in the U.S. lend a useful perspective to the evolution of e-Recruiting in India. There are over 500 job-sites in the U.S. Niche-industry sites, national sites, regional sites, and domain sites. By 2002, these are expected to grow to 1,200. The country’s top site (as of December 2000) listed around 5 lakh jobs, housed some 6.5 million resumes and registered 11 million jobseekers  - astronomical figures indeed. Certain sites are multi-posting sites capable of broadcasting a single job post to over 700 sites simultaneously. Yet others are infomediary sites that occupy a different space.  

As per a recent research conducted by a U.S. based company, i

 Multi-language capabilities to accommodate the increasingly diverse and global workforce.  Online interview scheduling.  Ex-employee alumni programs posted on the corporate Website.  Feedback to jobseekers on the status of their application and candidacy throughout the recruiting process.  New interactive multimedia assessment methods including game/role-playing formats. Real-time recruiting functionality extended into wireless devices by Application Service Providers (ASPs).  “CRM (Customer Relationship Management) style” one-to-one recruiting through personalised messaging and communications.  New metrics, analytics and benchmarking tools for management to measure success and align corporate recruiting results with corporate business strategy.

er a recent research conducted by a U.S. based company, i

Multi-language capabilities to accommodate the increasingly diverse and global workforce.  Online interview scheduling.  Ex-employee alumni programs posted on the corporate Website.  Feedback to jobseekers on the status of their application and candidacy throughout the recruiting process.  New interactive multimedia assessment methods including game/role-playing formats. Real-time recruiting functionality extended into wireless devices by Application Service Providers (ASPs).  “CRM (Customer Relationship Management) style” one-to-one recruiting through personalised messaging and communications.  New metrics, analytics and benchmarking tools for management to measure success and align corporate recruiting results with corporate business strategy.

FUTURE TRENDS IN e-RECRUITING
    

A great work place is where each one of us wants to find ourselves in. But which is the right place? Your prospective employee will also have this question in his mind. If you want your company name to pop up in his mind, get ready, you have a great deal of work to do - Build an employment brand for your company.

Employee brand is a relatively new coinage but definitely a critical factor which will help you resolve most of your recruitment hardships. It is all about being a company where people will want to work. And definitely stressing on literally “being a company where people want to work”, because unless you have a great workplace you cannot create such an image.

How can a good employment brand help me as a HR?

You will surely love it if you do not have to struggle in convincing your prospective employees about the positives of joining your company, right? Having a brand image as a good employer will help you:

• Keep ahead in the talent war
• Attract and induce the right kind of people you are looking for
• Enhance your ability to get quality resumes to choose from
• Retain your existing employee pool
• Subsequently see a dip in employee turnover

How can I help in building the company brand?

Being in the HR space, you have the most potential to drive the company towards building its brand. Perhaps you should be the spearhead of this project. Before you start, remember that building a brand cannot happen overnight. It is a long term strategy which needs a complete relook at the way your organization works.

So, where do I start? Once you get your top management convinced about your strategy, go ahead with setting your brand objective. Be clear as to what is the employment brand image that you want to achieve. This is the first step and you proceed with your internal strategies and slowly move into external promotional activities.

Encourage your senior management to support best practices in HR

Value, vision and practice have to start with the key strategy players - the top management. Get their support to implement best HR practices in your organization and you are sure you can head start to create a great work place.

Build a great work place

If salary is not the only measure of good work place anymore, then what are employees looking for?

• Freedom of work
• Good work culture
• Leadership opportunity
• Recognition for good work
• Learning and career growth
• Flexibility of timings
• Challenges and responsibilities
• Job Security
• Good work life and social life balance

In simple terms, be a good employer and give your employees the maximum reasons to reject another job offer and stay on with you.

Most valuable! Make your employees speak good about you

Make them feel good and they’ll speak good. There is nothing like a satisfied employee who spreads the goodwill of the company by word of mouth. He is speaking from his experience and he is the best brand ambassador you can find.

Help your company develop a space in the recruitment industry

While calling for resumes, word your advertisement in such a way that you build your company brand on terms of credibility and employee welfare.

Create a public image through PR

Public relations can help you build a credible brand image through newspapers reports and magazines. Getting listed in those ‘best employers’ surveys will add a lot of value.

Online strategies like press releases, newsletters, articles are also a powerful media for spreading the word of your company. Have you considered writing for blogs? You can yourself take up the PR job by blogging about your company and its HR strategies. Also make the best out your corporate website.

Employee Engagement - Excerpts from the Gallup Survey

According to the Gallup Management Journal’s Employee Engagement Index

29% of employees are actively engaged in their jobs,

54% are not-engaged, and

17% are actively disengaged.

The statistics on workforce engagement are surprising. Almost two third of the workers are either moderately engaged or not engaged, it is hard to ignore this wake up call..

Actively engaged employees: Today, employee engagement has become a growing management concern. Engaged workers make more money for the company. They contribute towards a healthy working environment. They stay with the organization longer and are more committed to quality and growth than are the other two groups of not-engaged and actively disengaged workers. Engaged employees usually need the least amount of attention from managers because they’re doing what they are needed to do. The challenge for managers comes when the signs of disengaging appear from an engaged worker. The symptoms need to be addressed immediately. Great managers spend most of their time with the most productive and talented people because they have the most potential.

Employees are usually hired to do three things:

1. Achieve the business outcomes of their roles
2. Contribute to creating a productive workplace
3. Drive customer engagement

A Manager should spend ample amount of time with his subordinates. He should get the individual to view his or her role from a broader perspective instead of from a narrow task-oriented point of view. They can help employees clarify how they can achieve their outcomes. Measurement of outcomes also becomes crucial. Good measurement includes regular feedback, aligns with outcomes and matches the expectations for the role. An effective leaders help the people to design and own their own goals, targets and milestones. Great managers provide coaching to facilitate progress of their subordinates.

Actively disengaged employees: They act out their discontent and sow seeds of negativity at every opportunity. They are indifferent to company goals and mission. The Gallup Organization estimates that there are 22 million actively disengaged employees that cost the American economy up to $350 billion per year in lost productivity, including absence, illness and other problems that result when workers are unhappy at work. Good managers will identify those who are disengaged and explore the reasons behind the disconnect to determine interventions can be made use of. Those who are actively disengaged may refuse to become part of any solution.

What employees want?

Here is a summary of what workers responding to the a Gallup survey said they what they want from their managers;
• Focus me
• Know me
• Care about me
• Hear me
• Help me feel proud
• Help me review my contributions
• Equip me
• Help me see my value
• Help me grow
• Help me see my importance
• Help me build mutual trust
• Challenge me

And how do you do that?

• Provide feedback and guidance
• Make real time to discuss problems
• Seek ideas and input from everyone
• Provide the resources to solve problems or to do a job well
• Give real recognition and/or reward
• Provide opportunities for people to develop their potential
• Keep the pressure to perform and achieve more with less realistic
• Provide opportunities for social interaction
• Train people how to resolve interpersonal conflicts
• Promote joy and appropriate humor within the office
• Be flexible; help people to actively balance work and home responsibilities

Planning the compensation strategy

Most senior managers wish, at least at times, that they could ignore compensation. No other organisational system is so weighed with values and emotions, so visible to employees or so much the subject of internal dissent. Nearly everyone has opinions—usually strong opinions—about rewards. Any change in compensation usually attracts loud complaints from employees who feel disadvantaged by the change.

The topic of rewards is rife with myths that are widely accepted but contradicted by extensive research. In view of these difficulties, can busy senior managers safely take the easy way out and leave compensation decisions to their compensation specialists? Or should they devote significant personal attention to compensation? Senior managers should be heavily involved in getting the strategic direction for compensation, and there are some fundamental choices senior managers need to make during this process.

Compensation systems demanded less senior management attention only a few years ago. At that time, senior managers generally left the design of employee compensation systems to technical specialists. This was possible partly because professionally managed compensation systems looked very much alike from one company to another.

For most firms, the goal of compensation design was simply to avoid a competitive disadvantage by keeping labour costs in line with those of competitors, and the goal of compensation administration was to keep employee noise down.

The picture has changed greatly during the past decade, as companies throughout the economy have begun to rethink their compensation systems in search for competitive advantage.

Base pay, incentives, benefits and pay for corporate performance all have changed dramatically. Studies of Fortune 1000 firms (Lawler, Mohrman and Ledford) from 1986 to 1997 show large increases in the percentage of Fortune 1000 using a variety of compensation innovations.

For example, there has been a 50 percent increase in companies using pay for skills, knowledge and competencies. A 50 percent increase in companies using work group or team incentives; and a 100 percent increase in firms using flexible benefit systems.

The strategic demands of new competitive forces, new organisational forms, and increase in knowledge work and recognition of the importance of compensation to organisational effectiveness have largely driven these changes. Top managers can no longer afford to leave compensation solely in the hands of compensation professionals.

There are some basic principles of compensation strategy senior managers need to understand. The alignment of compensation with business needs, the goals of the compensation system, reward system levers and basic choice managers need to make are among these principles. A foundation of knowledge will help senior managers use compensation as an important tool for managing the business.

Myths about rewards that never die #1:

Money doesn’t motivate, it’s only a hygiene factor

Bad ideas about compensation never die, they just recirculate.

The idea that money doesn’t motivate employees has been around since decades. It received its most famous formulation in the work of Fredrick Herzburg. He claimed that intrinsic sources of motivation rising from the design of work are much more important than the extrinsic sources, such as pay, in determining the level of employee motivation. In Herzberg’s view extrinsic sources are “hygiene” factors that can have a negative effect but not a positive effect on motivation, while intrinsic sources are true motivators. However, while Herzberg is remembered for his emphasis on the importance of intrinsic motivation, contemporary motivation in scholars almost universally reject his claim that extrinsic rewards do not motivate.

A more recent view is expressed by Alfie Kohn, a polemicist whose highly biased and incomplete review of the reward literature might have remained obscure had it not been excerpted in the Harvard Business Review. Kohn argues that extrinsic rewards cannot work for several reasons. He argues that extrinsic rewards such as pay need not be provided continually to be effective, whereas intrinsic rewards such as work design are available to employees without continuous management action.

However, we are unimpressed with the discovery that you can’t pay employee for performance just once—you have to keep paying them.

Kohn rehashes Herzberg’s discredited arguments about motivators and hygiene factors.

Myths about rewards that never die #2:

A happy worker is a productive worker

One of the most enduring myths about rewards systems is “a happy worker is a productive worker.” That is, if we just make employees happier (or more modestly, if we just increase job satisfaction), productivity will follow as day follows night.

This myth dates back to at least to the dawn of the industrial revolution. It has great appeal for a number of reasons. It lets managers ignore pay system issues altogether. Why bother with costly, complicated pay systems if a friendly management style or an employee-centered culture, or generous benefits can make workers both happier and more productive? In fact, management may hope that employees will work for less money if they are happier (while being more productive).

Employees also adopt this myth and use it to turn the tables on management, arguing that any improvement in pay or working conditions will reward management with higher productivity., ultimately making the added rewards “free”. This is like asking Santa Claus for presents. Seemingly no one has to pay for them.

Unfortunately, the popular belief that happiness leads to productivity is not supported by the evidence. Literally, hundreds of studies have examined the relationship between employee attitudes such as job satisfaction and productivity. (Of course, satisfaction is not the same thing as happiness, but the two obviously are closely related).

In every decade since the 1950s a major review of this ever-growing literature has reached the same conclusion: that is, the relationship between satisfaction and productivity is detectable, but too small to be of practical significance. Well the relationship exists, it may well be because more productive people tend to be rewarded for their higher performance, and this happiness may be the indirect result rather than the cause of productivity. Making people happier makes them stay in the organisation longer—that is, it reduces turnover—but it does not necessarily make them more productive.

Excerpt from ‘Strategic Compensation: A Human resource Management Approach’ by Joseph J Martochhio. Published by Pearson Education.

KEY COMPENSATION COMPONENTS

Compensation has become a far more complicated issue than just deciding how much to pay your employees. In addition to salary, employers must consider many other components — 401(k) plans, stock options, bonuses, and vacation — these too have become part of current compensation packages .

Employees  also have greater expectations of what should be included in their compensation packages, and they may demand specific benefits that can be costly for small businesses.

Costly or not, building a fair and attractive compensation package is critical for attracting and retaining employees. When setting up your compensation package, consider the following components:

Salary and wages. This is usually the single largest component of a compensation package, and not surprisingly, the most common point of comparison used by employees and potential employees. Salary should be tied to a person’s skills and experience. Subsequent increases need to be based on an employee’s performance, value, and contribution to an organization. For salespeople, it might be important to find a balance between salary and commission.

Check salary surveys and want ads, and scout out competitors to see if they are underpaying or overpaying their staff. Paying too much is an unnecessary drain on your resources, but paying too little will make it difficult to find and keep the best people. (Read How Do I Find Out Salary Ranges?)

Bonuses. Employee bonuses, which are usually paid in a single lump at the end of the year, are one way of providing performance incentives. Profit-sharing plans are a more formal way of doing this, but they’re not as effective for rewarding individual performance and compensating employees for meeting their goals.

Long-term incentives. Stock options or stock grants not only provide long-term incentives to employees, but they can also help retain valuable team members through your organization’s crucial startup phase.

Health insurance. Employer-sponsored health insurance is fairly standard among medium-size companies. Plus, it’s a benefit that has great value to employees. An employer-sponsored plan saves employees money, and gives them peace of mind in knowing that they won’t be denied coverage, even if they have existing health problems.