Bresnahan's Shorts* - January 2007

*Short topics

Notable Information for 2007

Chief executive officers (CEO’s) listed the following as their top three concerns, according to the Chief Executive Group:

• 99.1%, attracting and developing talented people
• 86.9%, top line revenue growth
• 48.4%, health care

CEO Magazine published study findings by The Hay Group and Chief Executive ranking the top 20 companies and the “best practices” for 2007. The top three all had to do with leadership.

1. Leaders focusing on creating a motivating work climate so employees perform at their best.
2. Leadership development is a top priority.
3. Train and coach intact leadership teams and individuals so they work better together.

The results were from companies with revenues over $8 billion. What does that have to do with you in a much smaller company? These large enterprises are “getting it” regarding the importance of attracting and retaining their employees.

• You have to compete with these companies at some level.
• They have the resources to offer great benefits.

What can you do that will create customer loyalty? Have great employees and leaders who want your place of business to be the best and will go the extra mile to get there. This will happen if you have created and maintain a motivating environment.

And there is more — from 2000 to 2004, the study found that earnings improved by at least 5% compared to the S&P 500 in the top 20 companies.

Considering the lack of talent available in the next five to ten years due to the retirement of Baby Boomers, developing leaders is becoming more important than ever. Give us a call if you want a hand with achieving your goals with a great environment.

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Turnover

It seems some do not think turnover costs impact their profits but rather that they are part of doing business. Doesn’t have to be.

In the December 11, 2006 edition of Workforce Management, a survey by PricewaterhouseCoopers showed that voluntary turnover in 2005 was at 10.5%. The significance comes when noting that 25.2% of employees left within the first year; 26% left between one to three years; 3.5% left within the first three months of service.

What happened between the time of the interview, initial excitement of a new job & the decision to leave the company?

Something certainly was not in sync. The Associated Press recently published what we have known for a number of years—people quit bosses. Some of their findings are that those “stuck in an abusive relationship experience more exhaustion, job tension, depressed moods & mistrust.” Statements about supervisors included:

• 39% failed to keep promises
• 37% failed to give credit when due
• 31% gave them the “silent treatment”
• 27% made negative comments about other employees or managers
• 23% blamed others to cover up mistakes or minimize embarrassment

Calculate Turnover

The rule of thumb has been that the cost to replace a person is 1 1/2 times their salary. However, if you need something more specific try this:

Choose a job with a lot of turnover. Calculate the full cost of that function by entering the average wage for that job on Line 1, then multiply it by 130% to include benefits. Multiply the total wage by 25%. This cost per employee may then be multiplied by the number of employees on Line 6 to get the total cost of turnover for that position. (The HR Specialist)

Is this money you can afford to keep losing?

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Thoughts to Ponder

"The art of communication is the language of leadership." - James Humes

“The two common reasons for losing are: not knowing you’re competing in the first place, and not knowing with whom you really are competing.” - Phillip Simborg, Grubb & Ellis

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Employee Loyalty

The question comes up periodically about employee loyalty. For whatever reason, it appears that some think that loyalty can be bought like a commodity—more benefits, incentives, bonuses, higher salaries. Well, there is proof that loyalty cannot be bought including matching counter offers. If an employee is unhappy they are going to leave, no matter what you do - guaranteed. I have never had to eat my words.

Once the decision is made to leave, we used to say the person has already mentally left (or you could say the emotional tie is severed). It is all about the environment that has been created by management. Environment is so important, I used this entire newsletter to talk about it.

If you wonder what the thoughts are of your employees, conduct a survey. The Bresnahan Group can help you with that.

Also review the leadership abilities of your management staff. Do they have the emotional tools to be good leaders & know the laws? Do they know the importance of retention & talent management?

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Leadership

Joseph Badaracco, a business ethicist from Harvard Business School, believes organizational problems are solved by “quiet leaders” or those behind the scenes & staff far removed from upper management. Their decisions are based on values, sorting out options & compromising. They know what they can control & that they have to deal with a variety of behaviors.

For IT managers, leadership was listed as the #1 most needed skill. Learning comes in different ways but experience is the most valuable (as sited in the lead column). That means sometimes being “uncomfortable.” (Excerpted from the ASTD Buzz, Dec. 18, 2006)

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Responsibility-based Organizations

Learn more about how to achieve your organizational vision and accountability by going to our affiliate website, www.integroleadership.com.

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Speakers

Are you looking for a great speaker for your organization? Contact the Bresnahan Group.

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More Information

For more information about any of these topics contact us at 505-922-1973 or email BresGroup @ 4u.net.

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