ProSource Newsletter No 7 - October 2005
Retaining Employee Commitment in Your Organisation
In the July issue of our ProSource Newsletter, Neil Jones wrote about the value of Strategic Planning and the importance of engaging employees at all levels of the organisation in the planning process.
There is more than enough anecdotal evidence to support what Neil was saying if the Strategic Plan is going to progress beyond the paper it is written on and become a reality. Equally, employees who have had a hand in defining the future direction of the organisation are more than often going to want to stick around and help make the Strategic Plan a reality.
The Strategic Plan is often called a 'What' Plan, in so much as it is a written framework for what the organisation wishes to achieve over a three to five year period. The Operational Plans that evolve from the Strategic Plan are often called the 'How Plans' as they define how the organisation is going to make it happen. It is at this point that employees become involved in translating their contribution and commitment to the Strategic Plan into measurable results and outcomes.
A key component of Operational Plans involves monitoring, measuring, and assessing the achievement of the milestones or KPIs that the organisation has set itself over a three to five year period. Ensuring that there are clearly defined Position Descriptions and KPIs (Key Performance Indicators) for every employee plays a vital role in reinforcing not only the day to day responsibilities, but in achieving Strategic Plan/Operational Plan outcomes as they relate to each role. To underpin the Position Description and KPIs for each employee an organisation must also have a formal process of individual performance reviews which should be conducted annually, either on a set review date or on the anniversary of employment.
The linkage between the Strategic Plan and Operational Plans, the individual Position Descriptions and KPIs and annual performance review processes plays an important part in keeping employees engaged and encouraging them to remain with the organisation.
In my work within and outside the NFP sector one of the most significant challenges to all organisations is retaining employees. So let's review some key factors which impact on employee retention and most importantly assist in maintaining their commitment to achieving the organisation's Strategic and Operational Plans.
The Upfront Factor - Recruitment of Employees
Generally, most organisations adopt one of two recruitment strategies - direct advertising or retaining the services of a professional and ethical recruitment specialist, such as my colleague Roger Hilton.
Whichever recruitment approach is adopted, the aim is the same - to locate suitable applicants for the role, complete short listing, interviews and reference checks, and then provide an appointment letter to the selected applicant which includes the complete details of the conditions of employment.
Equally, all appointed applicants should receive a current Position Description and KPIs which provide them with a clear understanding of what they have to do in the role; and should be advised of the organisation's probationary and annual performance review process.
If the recruitment process is completed effectively and in a totally professional manner, then the organisation has set up a solid foundation for retaining new employees. It is also important to remember that how an applicant is treated throughout the recruitment and appointment process is just as important as the process itself.
On the Job Factor - The Rubber Hits the Road
Induction of all new employees is vital as it provides the perfect vehicle to welcome the new team member, as well as address all of the procedural processes that need to be consistently communicated and reinforced. Equally, if an organisation can afford to allocate an internal 'mentor buddy' for the first two to three months of employment, this will greatly assist the new employee to quickly get up to speed in their role.
All new employees should also be informed of the key element's of the Strategic Plan, or should have a copy of the relevant departmental Operational Plan. The same should apply to all existing employees, even if they have not been involved in developing the Strategic or Operational Plan.
A Road Map for the Role
A Position Description is in many respects like a Strategic Plan in that it documents a person's KRAs (Key Result Areas) and responsibilities, in other words it provides a road map for what has to be done in the role. Generally, what is missing from a typical Position Description is the equivalent of the Operational Plan which are the KPIs for the role.
By definition, a KPI is a specific activity or action related to the employee's role, which can be assessed and measured in terms of a result or outcome. KPIs matched to the responsibilities for the role also provide a means for both the new or existing employee and the organisation to review that on the job performance is being completed effectively and efficiently. In addition to KPIs for the role, it may also be appropriate to include KPI Delivery Benchmarks which provide an objective way of qualifying and quantifying the delivery of each KPI.
The following is a working example of a responsibility linked to a KPI and a number of KPI Delivery Benchmarks:
Key Results Area - Business Communications
Responsibility
Conduct regular departmental team meetings and report on outcomes to the CEO.
KPI
Convene and chair a monthly departmental team meeting in the first week of each month, then prepare and distribute minutes and an action plan to all attendees.
KPI Delivery Benchmarks
Minutes of the departmental team meeting distributed to all attendees within 48 hours of the meeting. Minutes to include agreed action steps, time frame for completion and who is responsible for each action. A concise one page summary of the departmental team meeting to be included in the monthly report to the CEO.
Are we on Track Factor
In addition to the individual Position Description and KPIs, it is essential that there is a formal process of performance reviews, both at the end of the probationary period and at least annually.
The Probationary and Annual Performance Review process should have no hidden agenda; it is about a manager and employee reviewing on the job performance in an open and honest way, to ensure that:
* The employee has a clear understanding of what is expected of them in their role within the organisation.
* The employee knows how they are going in relation to those expectations and the KPIs.
* The Position Description and KPIs for the role is aligned to the Operational Plans that relate to the achievement of the Strategic Plan.
* The organisation has an opportunity to review and if appropriate confirm on going employment at the end of the probationary period.
Individual Position Descriptions and KPIs should be reviewed and updated annually and the best time to do this is at the Annual Performance Review. It is important to note that very few position descriptions remain constant over time and an annual review will ensure that the responsibilities and KPIs are aligned across, up and down the department or organisation. The review of the Position Description and KPIs also provides an opportunity to identify responsibilities and KPIs that may be delegated to other team members and/or to take on additional career development responsibilities and KPIs.
Another significant benefit derived from Annual Performance Reviews is that it provides for quality one on one communication between a manager and an employee and assists in keeping the employee on track in their role.
One final key point, between each annual performance review there should be a minimum of a quarterly review meeting between the manager and the employee so that progress on agreed areas of on the job enhancement can be assessed and reviewed. This also allows for the opportunity to address any on the job issues that may emerge before they become an impediment to working relationships and organisational performance.
If the above approach and processes are adopted within an organisation, they will go a long way to retaining employees and reinforcing their commitment to making the Strategic Plan a reality.
Written by Keith Ready to assist you to enhance the performance of your organisation and engage sustained commitment from your people.
Keith is a ProSource Associate and works closely with our clients to develop Position Descriptions and KPIs and implement Performance Review programs that are aligned to the strategic direction of the organisation.
ProSource Australia Breakfast Seminar - Tuesday November 8, 2005
Increase your available funds ..... by saving up to 20% on your current costs
Venue
Vibe Hotel
88 Alfred St
Milsons Point
Date and Time
Tuesday November 8, 2005
7.15 a.m. to 9.30 a.m. (full breakfast and handout notes included)
About our Guest Speaker - David Moore
David is the principal of DMA Operations Consultancy and has an honours degree in Mechanical Engineering and for over 25 years has worked in senior operations roles for a number of companies both here and in the United Kingdom. He specialises in identifying and then implementing strategies for his clients to reduce costs and enhance and sustains business performance.
Booking
To register for the FREE ProSource Australia Breakfast Seminar, simply forward your e-mail confirmation to info@prosource.com.au. If you require parking please indicate this when booking. Numbers are limited for this FREE Breakfast, so please book by Friday October 28, 2005
- A ProSource Thought -
'Leadership is the capacity to translate vision into reality'
Warren Bennis
ProSource Newsletter Archives
You can review back issues of our newsletter at ... Prosource Newsletter Archives
 |