The blind side of HR? –or- A case for talent retention!

Discussion of the provocative thesis that HR strategists are blind-sided and focus on talent acquisition rather than on talent retention. This opens opportunities for ERGs to fill the gap by engaging the present employees and running projects targeting talent retention for the organization!

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The blind side of HR? –or-  A case for talent retention!

Ask whom you want, the corporate “war over talent” is declared and raging out there worldwide. We see companies going above and beyond to spot the precious future brainpower, lure them with all the goodies and reel in the catch – but what happens later?

After the first days of sweet honeymoon with ‘new hire orientations’, fancy status symbols and back-patting, the shiny brochures start wilting, the warm words of welcoming encouragement fade and reality kicks in – and sometimes hard.

Now, did you notice that HR strategies these days tend to focus on talent acquisition but neglect employee engagement to secure talent retention?

It’s not enough to bring in the ‘top talent’ when you can’t get the most out of your staff effectively and consistently long-term. To drive innovation and game-changing business models to their full potential, we cannot relinquish the expertise and insight of people familiar with the company or flourish on ideas from newly hired staff alone.

When true ‘on-boarding’ fails (and what I mean by that is embedding the new employee firmly into the organization’s human fabric) the wedding is short-lived. Good people are easy to move again to find their next job somewhere else and leaving the company behind with an unproductive vacant position. New employees may also soon pick up on limiting or meager career prospects that they soon will share with their not-so-new-anymore co-workers that were not granted the opportunity to develop and ‘grow’ into the open position. Then, the costly investment in the new hire went down the drain while the company still needs to fill the vacant position with another candidate to be snatched from the competition at a cost…

On the other hand, what is the effect on the more seasoned employees that ever hiring new staff has over the transfer and development seasoned staff? They see the influx of fresh blood affecting (and sometimes disrupting) the established company’s culture as well as limiting their own career opportunities. When will the veteran staff feel they are no longer valued and find it is time to make a move and be courted by a new employer that values their talent more?

How about this provocative thesis:   HR strategists –by the very nature of their job!- see the organization as it should be in contrast to the functional managers throughout the organization see it as it is in the reality they have to deal with every day. Therefore, HR strategists are naturally blind-sided!

Does the HR strategic perspective make sense to focus on acquisition, i.e. hire talent the company should have, and not so much on retention, i.e. the talent the company already has?
– I leave this question open for discussion. What are your observations or experiences?

If this thesis holds true then ERG leaders face opportunity and, perhaps, have an obligation to show positive “organizational citizenship behavior” by doing what is right for the organization. Focusing on ERG engagement projects that aim at employee engagement and talent retention then has a bright future!

How to approach ‘metrics’?

There is confusion around why, what and how to measure. Resistance to measuring also seem to originate from a too narrow interpretation of the term ‘measuring’, a fuzzy approach and a lack of creativity on how to measure what. Douglas W. Hubbard offers guidance by asking powerful questions.

How to approach ‘metrics’?

There is much truth in the saying that comes in many variations: “What gets measured gets managed”, “Everything that can be measured can also be managed” or even “What isn’t measured can’t be managed”. ‑ If you don’t measure progress or success, how would you know you reached the goal?

Now, there is much confusion around why, what and how to measure as well as resistance to measuring that seem to originate from a

  • too narrow interpretation of the term ‘measuring’
  • fuzzy approach
  • lack of creativity on how to measure what.

Some people associate ‘measuring’ with lab coats, values with many digits behind the decimal point or requiring complicated formulas and ways to produce valid results. This –typically- does not reflect reality nor is complexity always necessary.

There also seems misconception that measuring has to eliminate any error and that there simply is no metrics possible for less tangible problems like ‘employee engagement’, ‘employee satisfaction’ or ‘strategic alignment’ just to name a few.

It becomes much easier if you understand measuring as a means to reduce uncertainty. When stakes to fail are high in an environment with much uncertainty, then reducing uncertainty is worthwhile, as it reduces risk and provides a quantifiable value. Even a very simple metrics can often help to answer the critical question.

When it comes to how to a systematic approach to measuring, here are some guiding questions that I found in a book of Douglas W. Hubbard; find specific answers before you measure:

  1. What is the decision this is supposed to support?
  2. What really is the thing being measured?
  3. Why does this thing matter to the decision being asked?
  4. What do you know about it?
  5. What is the value to measure it further?

(Source: “How to Measure Anything – finding the value of intangibles in business” (p.43) by Douglas W. Hubbard; www.howtomeasureanything.com)

If you take a sharp look around, you may find that many things are being measured without adding any benefit. For example: no decisions being made based on a measurement, such as a periodic report or detailed survey results.

Other things aren’t measured but should. For example: what business value does an ERG add to a company?

Q&A – Case study for founding a business-focused ERG

Answers to questions around establishing the NxGen ERG at Boehringer Ingelheim Pharmaceuticals, Inc. in 2009

If you are planning to found an ERG or are a new ERG Leaders, you might find the attached Q&A helpful.

In an interview style, here are the answers to the following questions around establishing the NxGen ERG (Next Generation at the Workplace) at Boehringer Ingelheim (BI) in 2009:

  • Where did the idea for NxGen originate?
  • Why was the Next Generation at the Workplace ERG necessary at BI?
  • What makes NxGen innovative? How do you think your approach to creating and growing this new ERG was different from the past?
  • What is the business case for the existence of NxGen? How do you link NxGen to BI business plans/activities?
  • How does the NxGen seek to drive innovation at BI?
  • Are there specific requirements for project size, scope, etc that the NxGen group takes on?
  • How are employees able to allocate time to create and develop NxGen projects?
  • Do the initiatives that arise out of NxGen resonate with other generations in the workplace? within BI?
  • What are the criteria necessary to make an ERG like yours successful? What role do NxGen members, executive management, and the overall company have in its success

Attachment: NxGen Case Study for NALC 2010

(Published also as “Expert Insights” in the Network and Affinity Leadership Handbook, Powerful tools for Employee Resource Groups, p.76-79, Diversity Best Practices, New York, NY; 2010)

How to attract an executive sponsor?

Effective executive sponsorship is a key success factor for ERGs. This posting discusses the benefits of executive sponsorship and how to attract and recruit an executive sponsor.

How to attract an executive sponsor?

All right, I take it you started building you ERG business case, as this is the first step to getting executive support to move on. (See the previous posting.)

You want to make sure the ERG’s goals are not only aligned with the company’s business strategies and are measurable! Having a clear and unambiguous success metrics at hand is the best basis for argumentation, to check your progress and finally document your success. It makes it so much easier to build credibility and trust as well as to communicate success clearly to get support throughout the organization. (Metrics will certainly be a future topic here!)

So look at the business areas, the strategic goals and high-level projects that your CEO communicates. Consider thinking along those lines to flesh out the need for your ERG, to set goals and getting ideas for projects that your ERG could work on in support of the business.

What you aim for is attracting a powerful executive sponsor that serves you and your ERG in several ways:

  • Support and promote the ERG’s activities actively
  • Help you navigating through the deep waters of corporate politics to keep you and your ERG out of trouble
  • Build alliances
  • Point out opportunities  and
  • Provide some basic funding to run the ERG
  • Offer advice when you need it (or when you think you don’t need it but then find out you were blindsided and now are happy you sponsor picked up on it!)

Look at your executive leadership team for a sponsor that has a vested interest in your ERG and its goals. Go out and talk to them, pitch your idea! Be creative how to approach them (this is actually a nice future topic by itself!). – You may be surprised how willing executives listen to compelling business logic that you unfold in front of the.

What are the business needs of the executive sponsor? Build them into your business plan. Consider synergistic ERG projects that will also help your sponsor achieving their goals. You may even ask what you could do for them and make sure to find out what the sponsor’s expectations are.

Be very respectful of their (valuable) time. Make it easy for them to follow you (give an informative summary, for example) and prepare for them what you want them to do (such as drafting an email you want them to send out).

Remember, from the executive sponsor down to each recruit each person wants to know: “What’s in it for me?” – Prepare to deliver!

How to start building a business-focused ERG?

Identifies the key objectives for any business-focused ERG and practical advice how to get started by developing a business case for founding an ERG.

How to start building a business-focused ERG?

Let’s start with what it takes to found a successful ERG on a high level and then drill down to real-life examples and practical advice.

What you cannot go without is a strategy that creates a business need before you drum up people which creates a buzz! You will have to make sure that you never run short of

  • Executive support for your ERG,
  • Recruiting members,
  • Showcasing your achievements and
  • Communicating effectively to meet the above three goals.

My approach was to build a business case to prove the company’s need for having the ERG.  To convince executives, explain to them what is in it for them, i.e. what the benefit is to the company and to them individually by supporting your ERG. Address very basic questions as a first step: Why does the company need this ERG? How will the company benefit from it measurably? What resources do you need to found and sustain the ERG?

Let me know what you think – more to come!

Why do companies need business-focused ERGs?

Changing the organization from within by engaging employees in business-focused employee resource groups (ERGs) – the practical “how-to” guide!

Why do companies need business-focused ERGs?

The answer can be as simple as this: Because it makes good business sense!

But what makes this answer so simple? – Well, because it’s made up of a few simple aspects:

First of all, every company, unless it is classified as a non-profit, is in business for one reason: to make money by providing some sort of product or service to its customers.

Simply put, if a company fails to rack up profits it will go out of business. That’s why focusing on the business benefits, the “bottom line”, the return on investment (ROI) makes not only sense but is key for successful employee resource groups (ERGs). It’s the bottom-line arguments, the financial benefits, that open the doors to executive support, buy-in, and funding.

Second, to take advantage of the diversity and capabilities of the human capital readily available.

Let’s look at companies, its workforce and its markets today: We live and work globally – everyone is connected. Our markets today are just as diverse and multi-faceted as our workforce should be. It takes all we know and who we are as diverse human beings (coming from different cultures and ethnicities, religious beliefs, physical characteristics, sexual orientation, and so on) to understand what our customers need and how we can give it to them.

Therefore, it makes sense not only to diversify the product portfolio to mitigate risk and seize opportunity but also to diversify the workforce for the same reasons. Not tapping into all of your workforce’s diversity and capabilities puts you at a disadvantage to companies who know how to maximize their human capital effectively.

Are you still with me? So, the next question is how to meet this goal.

Stay tuned for practical advice, keeping it simple, and examples taking you through the steps on how to build a business-focused ERG.

– Any questions so far?