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Master of Business Administration-MBA Semester IV

Subject Code – MU0008
Talent Management and Employee Retention
Assignment Set- 1

Question1: Explain the talent Management imperative

Answer 1:
Competent businesses are adept at hiring and firing workers. Great
businesses however are skilled at developing and deploying talent in ways
that continuously grow their experience, stretch their abilities and enable
their achievements. Creating work environments that promote people agility
across jobs and organizational boundaries is the next imperative for
companies seeking competitive advantage through their talent.

It is surprising how few companies develop and move their talent around the
organization. They know how to recruit stars, fire failures and replace leavers
– but few seem to know how to provide one of the most important factors in
retaining talent – opportunities to achieve, move and grow – within the
company. Ever hire a star only to see them leave in frustration 9-18 months
later because they felt stuck? Or experience shock when an outstanding
performer leaves your company after 5 years because they were ‘too
valuable’ in their current job to be allowed to move to a different position or
department? So instead, they moved to a different company.

There are many organizational and cultural reasons why companies constrain
talent. Performance obsessed managers are often reluctant to give up the
people resources they feel are needed to achieve ever more challengingly
goals and performance objectives. This short sighted behavior is reinforced
by management and incentive systems that reward business results but not
development of people.

HR and line managers often lack the tools and information to understand and
manage the supply and demand of people and skills dynamically. Thus they
are likely to be slow and reactive in responding to shifts in skill requirements
and opportunities to grow new competencies. They may also be prone to rely
on traditional hiring and firing processes as a means of matching skills
demand and supply rather than more complex retraining and redeployment
of existing resources.

Some leading edge companies however are beginning to tackle the talent
agility challenge. For example, in “Cisco Systems: Developing a Human
Capital Strategy”, California Management Review, Winter 2005,
http://www.haas.berkeley.edu/News/cmr/contents.html, Jennifer Chatman,
Charles O’Reilly and Victoria Chang describe how this Silicon Valley legend
has refocused its approach to talent from external acquisition to internal
development and deployment. For years Cisco was the poster child for how to
identify, attract and hire talent. But beneath the surface, it was buying talent
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through acquisition and keeping it through high-priced equity stakes

distributed to employees. Not much talent management acumen was
required. But when the company’s marketplace and stock price tanked, Cisco
had to learn a different set of skills for attracting and keeping talent. It also
realized that it needed to better utilize the talent it already had.

According to CEO John Chambers, “We made progress in developing

employees, but in our industry, I want the majority of us not to be in the
same job – or even the same function – three to five years from now. I want
us to create an environment of continuous learning and challenge, that will
allow us to move from one business unit to another in engineering, or from
sales to customer advocacy, or from financial to IT.”

Companies like Cisco that compete in dynamic industries, where

technologies, products and markets are in a continuous state of change must
learn how to develop and redeploy their talent in an agile manner. The
company recast its Pathfinder software application originally developed to
support external recruiting and used it to create an internal job matching
system. Pathfinder’s corresponding online database, I-Profiler, allows
employees to voluntarily enter their resumes for consideration. The profiles
capture employees’ work and educational experience, skills, and technical
qualifications and detail their career aspirations for development discussions
with their managers. Line managers have access to each of their employees’
profiles to assess existing skills on their teams.

But these moves represented only part of the solution. The company also
chartered Cisco University to lead a company-wide cross-functional effort to
create a ‘development culture’ within the organization. The university does
not operate as a centralized place to go for learning, but as a set of
distributed capabilities for everyone to tap across the organization. This
learning and development capability is built upon the ‘3E Model’:

-Experience through assignments, on-the-job learning, and traditional

learning

-Exposure developed through on-line learning, mentoring, shadowing,

periodic forums and talent reviews

-Education through a series of customized and focused programs that include

significant teaching and involvement of senior Cisco executives as well as
outside faculty

The impetus for shifting Cisco’s talent management strategy came from the
top of the organization. John Chambers asked in a company meeting prior to
starting these initiatives, “How many people think we are good at moving
resources (people) and retraining? (No hands were raised). It’s not even in
our vocabulary. But we’ve got to get dramatically better at moving resources
around the company. Our top leadership….I keep moving them around.
We’ve got to learn how to retrain people effectively as a part of our culture,
to keep up with the market transitions.” This is good advice for any
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company.

How good is your organization at moving and retraining staff to anticipate

and respond to changes in your business? Not very good you say? If so, it’s
time for a change. Because companies that find ways to grow and move their
talent within their organizational boundaries will not only substantially reduce
recruiting and termination costs but will better attract and keep top talent as
well. Indeed, those companies that can master talent agility will have a leg up
on their competition in both the quality of their people and their performance.

Question 2: Describe Pre -Employment testing

Answer 2:

Employers often use tests and other selection procedures to screen

applicants for hire. The types of tests and selection procedures utilized
include cognitive tests, personality tests, medical examinations, credit
checks, and background checks.

Companies can legally use these tests, as long as they don't use to them to
discriminate based on race, color, sex, national origin, religion, disability, or
age (40 or older). Employment tests must be validated for the jobs they are
being used to hire for and for the purposes for which they are being used.

Online Pre-Employment Tests

Depending on the type of test, employment testing can be conducted online

or in the employer's office. Online employment tests are often used for pre-
employment testing and assessment. Utilizing online testing eliminates the
need for the candidate to visit the company's office or for the company to
have to administer the test.

Types of Employment Tests

Personality Tests
Personality tests assess the degree to which a person has certain traits or
dispositions or predict the likelihood that a person will engage in certain
conduct.
Talent Assessment Tests
Talent assessments, also called pre-employment tests or career tests, are
used to help an employer identify candidates that will be a good fit for jobs.
Talent assessments help predict a new hire’s performance and retainability.
Pre-Employment Physical Exams
Employers may require a pre-employment physical examination to determine
the suitability of an individual for a job.
Drug Tests
There are several types of drugs tests that candidates for employment may
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be asked to take. The types of drug tests which show the presence of drugs
or alcohol include urine drug screen, hair drug or alcohol testing, saliva drug
screen, and sweat drug screen.

Cognitive Tests
Cognitive tests measure a candidate's reasoning, memory, perceptual speed
and accuracy, and skills in arithmetic and reading comprehension, as well as
knowledge of a particular function or job.

Emotional Intelligence Testing

Emotional intelligence (EI) is the ability of an individual to understand his or
her own emotions and the emotions of others. Testing job applicants for their
emotional intelligence (in the form of psychological-based tests) is a growing
employment trend.

Physical Ability Tests

Physical ability tests measure the physical ability of an applicant to perform a
particular task or the strength of specific muscle groups, as well as strength
and stamina in general.

Sample Job Tasks

Sample job tasks, including performance tests, simulations, work samples,
and realistic job previews, assess a candidate's performance and aptitude on
particular tasks.

Background and Credit Checks

Criminal background checks provide information on arrest and conviction
history. Credit checks provide information on credit and financial history.

English Proficiency Tests

English proficiency tests determine the candidate's English fluency.

Lie Detector Tests

The Employee Polygraph Protection Act (EPPA) prohibits most private
employers from using lie detector tests, either for pre-employment screening
or during the course of employment.

1. Manager Retention Practices

Our research consistently validated the reality that the manager plays a
significant role in influencing the employee's commitment level and
retention. There are a number of manager retention practices which will
increase the probability that an employee will remain committed to an
organization over time.
These retention practices represent the manager's actual behaviors on the
job. This often has little to do with the amount of classroom training they
have received. Furthermore, the best retention practices are not the same as
the standard menu for good organizational management. Most organizations
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ask their managers to place productivity as the highest priority, underscored

by the pressures to fulfill "our obligations to our investors."
Good retention practices focus not only on what the employee is contributing
to the company, but also focus on how the manager can create a climate so
that the employee is retained and committed on a long term basis. While
enlightened leaders balance the needs of the organization with the needs of
the employee, the truth is that these leaders are rare. Though managers play
a very crucial role in retention, they do not control all of the factors that can
affect attrition. Therefore, the second component represents the
organization's responsibility in the retention equation.
2. Organizational Retention Systems
There are a number of organizational systems and processes that influence
retention. Some of them are evident, such as the equity of pay scales. Other
systems are less obvious, and their impact on retention is often
unrecognized. For example, there is evidence that an organization's
recruiting systems and processes can significantly impact retention ratios.
These systems support the Manager Retention Practices, but they also
increase the likelihood that employees are committed on a long term basis
and are performing at their best.

3. Measurement and Accountability

Closely linked to the other components, this component ensures that
retention becomes an on-going priority. Many organizations do not even
know what their attrition rates are. And those that do often lack enough data
to pinpoint where the problem is most severe, or to uncover the specific
causes of attrition.
For example, those organizations that measure attrition sometimes do not
track it by length of service. The tenure patterns of the departing employees
can reveal valuable information concerning the potential causes for attrition.
Additionally, many organizations do not track attrition by occupational group
other than by "manager" or "no manager."
This simple segmentation is often a crude one that does not provide the
organization the refined information it needs

Question 3: Apex is a firm facing high attrition rate. The Management is

highly concerned about the attrition. They are investing on the candidates by
training them and after some time employees are leaving the organization.
There are costs associated with hiring besides talent crunch. Mr. Ravi the HR
Manager has given the responsibility to design strategies for retention.
Suggest few components and strategies to achieve retention

Answer 3: The implications for employers should be clear. It is now more

important than ever to retain the team members an organization currently
has and to choose the right team members when hiring decisions are
made. The following is a short list of useful tips and hints to help increase

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levels of employee retention in your organization. Put them to work for

you!

 Get the right people on the bus - in his book, Good to Great, Jim
Collins talks about the importance of having the right talent on the
organizational bus. Hiring individuals who are truly fit to succeed in the
position for hire will dramatically increase the chances of that employee
being satisfied with his or her work and remaining with the company for an
extended period of time.

By far, we have found this to be the biggest predictor of future employee

retention.

 Communication, communication, communication - communication

has become so heavily stressed in the workplace that it almost seems cliche.
However communication couldn't be more important in the effort to retain
employees. Be sure that team members know their roles, job description, and
responsibilities within the organization. Communicate any new company
policies or initiatives to all employees to be sure that everyone is on the
same page. Nobody wants to feel that they are being left out of the loop.

 Include employees in decision making - it is incredibly important to

include team members in the decision making process, especially when
decisions will effect an individual's department or work team. This can help to
create a culture of employee involvement and will generate new ideas and
perspectives that top management might never have thought of.

 Allow team members to share their knowledge with others - the

highest percentage of information retention occurs when one shares that
information with others. Having team members share what they have learned
at a recent conference or training workshop will not only increase the amount
of information they will retain, but also lets a team member know that he is a
valuable member of the organization. Facilitating knowledge sharing through
an employee mentoring program can be equally beneficial for the team
member being mentored as well as the mentor.

 Shorten the feedback loop - do not wait for an annual performance

evaluation to come due to give feedback on how an employee is performing.
Most team members enjoy frequent feedback about how they are performing.
Shortening the feedback loop will help to keep performance levels high and
will reinforce positive behavior. Feedback does not necessarily need to be
scheduled or highly structured; simply stopping by a team member's desk
and letting them know they are doing a good job on a current project can do
wonders for morale and help to increase retention.

 Offer a competitive compensation package - any team member

wants to feel that he or she is being paid appropriately and fairly for the work
he or she does. Be sure to research what other companies and organizations
are offering in terms of salary and benefits. It is also important to research
what the regional and national compensation averages are for that particular
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position. You can be sure that if your compensation package is not

competitive, team members will find this out and look for employers who are
willing to offer more competitive compensation packages.

 Balance work and personal life - family is incredibly important to

team members. When work begins to put a significant strain on one's family
no amount of money will keep an employee around. Stress the importance of
balancing work and one's personal life. Small gestures such as allowing a
team member to take an extended lunch once a week to watch his son's
baseball game will likely be repaid with loyalty and extended employment
with an organization.

 Provide opportunities for growth and development - offer

opportunities for team members to acquire new skills and knowledge useful
to the organization.

If an employee appears to be bored or burned out in a current position offer

to train this individual in another facet of the organization where he or she
would be a good fit. Nobody wants to feel stuck in their position will no
possibility for advancement or new opportunities.

 Recognize team members for their hard work and let them know
they are appreciated - this can be one of the single greatest factors
affecting employee retention. Everybody, in all levels of an organization,
wants to know that their efforts are appreciated and recognized. This
can be as simple or as extravagant as a supervisor may desire. Often time a
short e-mail or quickly stopping by a team member's desk and saying
"thanks" can do wonder for morale. Other options might include a mention in
the company newsletter for outstanding performance or gift certificates to a
restaurant or movie theatre - the possibilities are endless.

 Clearly define what is expected of team members - nothing can be

more frustrating or discouraging for an employee than the lack of a clear
understanding of what is expected of him on the job. In a performance driven
workplace a lack of clarity regarding job duties and expectations can cause
fear and anxiety among employees who are unclear of what is expected of
them. Even worse outright anger can occur when a team member receives a
negative performance evaluation based on expectations and job duties that
he or she was unaware of or unclear about.

 The quality of supervision and mentorship - it has been said so often

that it is almost cliche, but people leave people, not their jobs.
Supervisors play the largest role in a team member's development and
ultimate success within an organization. All employees want to have
supervisors who are respectful, courteous, and friendly - that is a given. But
more importantly team members want supervisors who set clear
performance expectations, deliver timely feedback on performance, live up to
their word and promises, and provide an environment where the employee
can grow and succeed. Failure by supervisors and management to provide
this can cause an employee to start looking for greener pastures.
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 Fair and equitable treatment of all employees - one of the surest

ways to create animosity and resentment in an organization is to allow
favoritism and preferential treatment of individual team members. The so-
called "good ole' boys club" can create a noxious organization culture and
foster resentment among team members. This culture will only get worse and
can create a devastating exodus of valued team members. Be sure to treat
all employees equally and avoid favoritism at all costs.

Sudha Yadav - MBA-IV (HRD) 510920557