The Hindu Business Line : The CEO’s role in employee retention

CEOs these days seem to have just two parameters to review. Firstly, they review attrition numbers that show no sign of slowing down. And as the hole in the bucket gets larger, CEOs review the recruitment numbers to keep the open positions filled.

Ironically, if they turned their attention to what happens in between, i.e., between recruitment and attrition, they might not have to invest a disproportionately long time on reviewing these two numbers.

Now, this calls for a shift in focus. Firstly, CEOs would need to review with their management teams “employee life cycles” and identify the inter-connected processes that constitute the life cycle. Such a review is necessary to understand employee needs and aspirations at each stage of the life-cycle and to design appropriate people programmes and practices for each stage. Secondly, CEOs, along with their business managers, must undertake the review rather than hold their HR teams responsible for the process.

You get what you inspect!

An informal discussion I had with a bunch of HR managers from across industries at an HR conference held recently in Mumbai revealed both good and bad news.

The good news was that business reviews are religiously carried out by CEOs in most organisations. The bad news was that there was hardly any substantial discussion and review of people metrics.

Now, remember the good old saying : What gets measured, gets done! IBM’s legendary CEO, Lou Gerstner, wrote in his book, Who Says Elephants Can’t Dance? “You don’t get what you expect; you get what you inspect!”

Experienced managers know this to be profoundly true. When CEOs do not measure, monitor and pull up managers for not fulfilling their people management responsibilities, they are compelled to spend more time measuring the growing hole in the bucket and shrinking success at recruitment.

Employee-focused HR processes!

Most HR managers are good at establishing HR processes that cover a wide spectrum. From hiring and on-boarding, to performance and consequence management, right up to separation and exit interviews, HR processes are well defined and documented. But it is about time CEOs sought a different set of processes that are not focused purely on the HR perspective.

Today, the employee life cycle has to be viewed from a new paradigm that I call the “Employee-focused HR Process Paradigm.”

This will turn the attention away from an inside-out focus to an outside-in focus. When the focus is inside-out, all the processes are defined and implemented without a clear understanding of what employees need and want. When it is outside-in, the processes become focused on the real needs of the employees. Therein lies the key to employee engagement, effectiveness and retention.

When the CEO demands an outside-in focus, HR processes tend to take the following approach and ask:

Do we understand that different segments of talent call for different approaches to selection, retention and engagement?

Do we understand that employee needs differ dramatically based on their profiles and also the time they spend with their present employer?

Do we understand that periodic focus group meetings with different segments of the employee base (employees with less than one year experience; between one and two years; over three years; women employees; employees in development; QA or such other logical segmentation) will reveal the needs and wants of the employees?

Do we understand that at any point in time employees have one or more of the following five needs: The need to learn; to grow; to contribute; to make a difference; and to mentor.

Translating all these needs will call for a radically different approach to defining People Processes. Some of the processes that will be defined with the outside-in approach are given below:

People manager selection and preparation process (they have maximum impact on retention and engagement)

Re-engaging the disengaged employees process (employees go through disengagement prior to resigning from the company and the symptoms of disengagement are visible and noticeable.)

Re-engaging the veteran employees’ process (knowledge workers go through the two-year itch and need preventive treatment before it takes epidemic form in the company.)

Top talent engagement process – they look for different rewards and recognition.

Solid citizens (represent 70 per cent of employees) visibility and involvement process.

Alumni ecosystem process (a number of employees who leave due to the two-year itch may like to return if presented with suitable work culture and people processes.)

People Manager goal-setting process that clearly incorporates actions to be taken by them towards the above processes.

The business review process that incorporates a detailed review of the above.

(The writer is Sr.Vice-President & Chief People Officer with Symphony Services Corporation.)

Related Stories:
The enigma of employee relationship
The higher you go, the less feedback you get from others
Touch their souls and win their hearts

More Stories on : Management | Human Resources

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
The CEO’s role in employee retention

2.3 lakh candidates set to take CAT

Diwali thoughts

Employee expectations versus business realities

A ‘total’ view of rewards

You never stop learning as a leader