Horizon Point Consulting

Category: Talent Management and Development

We provide full service talent management and talent development consulting services. Read our blogs in this category for stories and best practices from real clients and real research.

  • Why Counter Offers Upon Resignation Rarely Work

    Why Counter Offers Upon Resignation Rarely Work

    Your top employee or best manager just walked into your office holding that dreaded piece of paper. You know, the one with the words “thank you for this great opportunity, I respectfully resign my position” typed neatly on it.  

    As you read it, your mind starts brainstorming “what can I do to get them to stay?!” You can’t lose them, they’re the best of the best. You’ll never be able to find someone with their skill set and knowledge of the organization. You’ll spend months training their replacement just to get them up to speed. You’ve invested so much into them, how can they quit?

    And then without hesitation, the words “would you reconsider if I put a counteroffer together for you?” comes out of your mouth. They graciously say “sure” but in their mind, they’re thinking there’s nothing you can offer them to stay. It’s too little, too late. 

    And in reality, in most cases it is. Yet, in many industries, counteroffers are becoming increasingly common. 

    What does a counter offer really say to an employee? 

    1. You weren’t worth my time then, but you are now. You didn’t take the time to gauge their satisfaction with their job when it would have counted. Instead, you assumed they were happy with their position in your organization, with your head stuck in the sand, until they abruptly informed you that they were not happy in the form of their resignation. And suddenly trying to make them happy has become a priority, where ten minutes prior it wasn’t even on your radar. 
    2. It will cost me less to retain you than to replace you. It’s estimated that replacing an employee costs between 100-300% of their annual salary. That includes recruitment, onboarding, and training. By proposing a counteroffer you’re telling the employee that you’d rather pay them more to stay than to have to put out the money to replace them. It’s cost-effective. That tells the employee they aren’t what’s important to you, the cost savings are. 
    3. I’ll offer you more money to stay in a job you’re obviously not happy in. Counteroffers most often include incentives in the form of a higher salary, extra vacation time, and other perks that aren’t available to the general employee population. What they too often don’t include is training opportunities, strategic plans for advancement, or any other resolution that would improve the work situation the employee aims to change by leaving. Three of the top reasons employees leave is the work they are doing, no room for advancement, or their leadership. Offering them financial incentive to stay won’t impact those things. 

    So how can you proactively keep your top employees from slipping you that piece of paper? 

    Start by assessing your key talent through a people review. This should include their strengths and areas of improvement as well as their risk for leaving the organization and a succession plan if they do. Then sit down with them and have a conversation, or what we in HR sometimes call a stay interview. Find out what their career goals are and see how that matches up with the succession plan you designed. A succession plan won’t work if you haven’t taken into consideration where your employees want to be in three to five years within your organization. During that stay interview also ask them what they like about working for the company, what their pain points in their position are, and give them the opportunity to share their ideas. And finally, assess your wages on a regular basis. Are you lagging in your industry with regards to wages? If so, what can you do to improve that? 

    What steps has your organization taken to ensure that your key employees don’t walk out the door and leave you in a panic? 

  • Who Is Your Successor?

    Who Is Your Successor?

    How many people do you know that have left a job or stepped down from a volunteer leadership position, regardless of the reason? Have you ever been that person? I have. Let’s talk about it. 

    Every day, organizations find themselves with a newly empty desk chair. Responsibilities unassigned. Balls dropped. Projects unfinished. On average, that chair sits empty for 40-60 days, depending on which report you read. Think about your own organization. Do you know your “time to fill”? With the talent market like it is right now, your time to fill may be even longer. Think about all that lost productivity a.k.a. lost revenue + cost of recruitment + myriad of other expenses we know fall into the total cost of hiring one person. Whew! 

    We can be proactive and cut the time to fill significantly. We need to talk about succession planning (even if you don’t want to). Sharlyn Lauby talks about this on the ADP Spark blog in her article “5 Reasons You Should Have a Succession Plan (Even If You Don’t Want To)”. Another iteration of something I hear myself saying at least once a week, Lauby states, “It’s absolutely essential for organizations to think about the “what ifs” associated with an employee not being able or available to do their job.” We have to be prepared if we want to maintain long-term success. 

    I recently left a job that I loved for the job that I was made for. It wasn’t easy, but it was right for me. As the first domino fell, so did the next one, and the next one. I had to tell two volunteer-led organizations that are dear to me that I could not finish out my term on the board of directors. I was, of course, willing to help train my successor…who I realized did not exist. Not for my job, nor for my volunteer roles. It was a shock to these systems for me to leave suddenly. But it didn’t have to be. 

    Sharlyn Lauby said something else I hear myself saying constantly: “Succession planning isn’t as hard as it sounds”. It’s as simple as paying attention to the talent already within your organization. Forbes contributor, Stuart Levine, describes strategic talent management and successful succession planning as a system where “People are identified for their potential to guide the organization in the future as much as for their current strengths”. The wisest talent managers think in the future and live in the present. When executed well, succession plans can be the lifeblood of an organization. 

    Remember that job I loved and left? I was teaching at a university, focusing on professional and career development of business students. We frequently invited industry partners to visit classrooms and speak to students about their successes and their challenges, sometimes in a recruiting capacity, sometimes purely educational. Sherwin-Williams was one of my favorite companies I invited to participate – let me acknowledge my bias as their former HR intern – because I think they do many, many things extraordinarily well, including talent management and succession planning. Did you know upwards of 85% of their hires are internal? Did you know some of their current top leaders started with the company as management trainees decades ago? Here’s what that looks like. Sherwin-Williams is a shining example of an organization that thinks in the future and lives in the present. They have extensive training and development that is specifically designed to capitalize on the existing strengths of potential leaders in preparation for their inevitable opportunity for internal promotion. They pay attention to every single potential leader and how he or she can be strategically developed to lead in a way that is best for him or her individually and best for the company. It’s really an incredible system. 

    So how do you get started? SHRM has excellent resources to help any organization create succession plans. Here are two reads I recommend:

     

    If you have more time and are ready for a deep dive, check out Developing Leadership Talent, part of the SHRM Foundation’s Effective Practice Guidelines Series. 

    Succession planning is important. I have experienced the stress of having no plan in place when someone left, and I have been the cause of that stress for others. The proof is in the successful organization pudding: pay attention to and develop your talent now. Who is your successor? Don’t wait until you’re leaving to figure it out. 

     

    Have questions about how to incorporate strategic talent management and succession planning in your organization? Horizon Point can help. Call us at 256-227-9075 or email us at info@horizonpointconsulting.com.

  • If You’re Not Onboard, Get Off the Ship!

    If You’re Not Onboard, Get Off the Ship!

    The best piece of advice I heard at the recent SHRM19 National Conference came from Cy Wakeman’s session “Business Readiness: Ensuring Our Teams are Ready for What’s Next.”

    As a consultant, I spend a great deal of my time helping organizations navigate change, from determining what change is needed to creating the roadmap of how to accomplish the change to how to get employee buy-in. The hardest part is often getting employees on board, helping them understand the need for change and addressing their resistance.

    The current change management process caters too much to the individual employee when it should focus more on the overall business need for change. Leaders spend a great deal of time sitting on the sidelines with those few employees on the bench trying to convince them why they need to get in the game with everyone else. They allow the minority of employees who want to resist the change to stall the process or to even quash it.

    According to Cy, leadership needs to stop trying to please everyone and focus on those employees who are champions for change and who understand the vision, because they will be the ones who drive change forward. And change is all about ensuring the sustainability of the organization and creating an opportunity for growth. Those resistant will only hold the organization back and will never support the change. Their resistance is driven by their own ego, not what’s in the best interests of the organization.

    So how can organizations effectively navigate change management?

    1. Don’t jump the gun. Change management isn’t a race, it’s not about being the fastest out of the starting gate. Take the time needed upfront to thoroughly assess the need for change, the options for how to make the change, and the impact each option will have on the organization as a whole. Proper planning will lead to proper execution. Making snap decisions too often leads to the need to backtrack, which causes employees to lose faith in leadership’s ability to manage and makes them more resistant to change.
    2. Explain the why then move forward. It’s important to maintain a level of transparency with employees. Explain the why behind the change in terms that all employees can understand and outline how the change will positively impact the organization as a whole. But don’t dwell on it. Once you’ve explained it, move on to the how and when. Don’t let resistant employees continue to question the why this is where change stalls.
    3. Think inside the box. A key point that Cy made was that we’ve been conditioned to “think outside the box” and that method of thinking tends to lead to passing the buck. The tendency when we think outside the box is to think of how we can use others to get things accomplished. She recommends we start thinking inside the box by asking “what can I do” instead of “what can others do”.
    4. Stop trying to please everyone. You will have resistant employees, it’s inevitable. Stop focusing on pleasing them. Organizations change because it’s necessary to continue to thrive and grow. It’s best for the organization as a whole, so stop wasting your energy on that small minority who refuse to get on board, who protest change. They are stalling your organization’s growth and the majority of employees who are supportive of the change are suffering as a result, so is the organization. Those employees have a choice, and Cy put it so eloquently:

    “Stay in joy or go in peace, but you can’t stay in hate.”

     

    For more on change management, you may also enjoy our posts Change Management: Celebrating the Small Victories and 4 Ways to Help Change Happen When Change is Hard

  • Five Quick Teambuilding Activities

    Five Quick Teambuilding Activities

    I once put on about 30 articles of clothing in a matter of a couple of minutes. My team won. I once had to build a wooden tower while blindfolded and being instructed by others what to do. My team lost. I did these things (and many more) at a previous employer where we had morning meetings and every Friday was Fun Friday. We’d forego the regular meeting content of financials, project updates, and announcements every Friday morning to have fifteen minutes of fun. It was the weekly meeting everyone looked forward to and usually, we all walked away laughing and smiling. And we’d talk about it for days, weeks, and sometimes I still see former co-workers posting old videos and pictures from some of the activities we did.

    Managers took turns planning the activities, which ranged from trivia to challenges to charades to getting pies in the face. Some were team activities, some were every man for themselves. And there was always a prize for the winners.

    Here are five quick teambuilding activities to get your teams engaged, energized, and best of all, working together and having fun.

    1. Team Trivia. Pick a theme and come up with 10-15 questions. Divide up into groups and each group is given a copy of the questions to write down their answers. Then switch papers with another team and reveal the right answers. The team with the most right wins a prize.
    2. Scavenger hunt. Give each team 5-10 clues for items that are found around the office or facility and send them on their way. The first team to bring back all the items wins a prize.
    3. Charades. Break into teams and take turns having one player from each team draw a clue and act it out. Their team has 30 seconds to guess what the clue is. If they fail, the other team has a chance to steal the point. Some clue ideas- movie titles, song titles, or animals.
    4. Pass the package.  Wrap a gift or just a box in layers of wrapping paper. Grab a die and two oven mitts. Pick a number 1-6. The first player has to put on the oven mitts and try to unwrap the gift while the next person in line rolls the die. When they roll the designated number, it becomes their turn and the next player begins to roll the die. To see this fun in action, here’s a video.
    5. Get to know you. This works well with slightly larger groups. Prior to the meeting ask everyone attending to submit one unusual fact about themselves. For example, I have traveled to 45 out of the 50 states. Compile all of these statements and give a copy to each employee in the meeting and give them 10-15 minutes to mingle and find out who the statement belongs to. The person with the most at the end wins a prize. This is a great way for employees to get to know each other better and is a great conversation starter. Employees may also find that they have some things in common.

    These activities don’t take a lot of time, but they can have a big impact on your employees, their team dynamics, and just overall morale.

    How do you encourage teambuilding at work? What other quick teambuilding activities can you come up with?

  • Create Insights Instead of Giving Feedback

    Create Insights Instead of Giving Feedback

    “….But the most helpful advice is not a painting. It is instead a box of paints and a set of brushes. Here, the best team leaders seem to say, take these paints, those brushes, and see what you think you can do with them. What do you see, from your vantage point? What picture can you paint?” from Nine Lies About Work

    A few weeks ago, we talked about how neuro research shows us that for learning to happen, insights have to be created. We talk a lot about giving and receiving feedback in the workplace and how necessary it is.   But what if it is more important to create insights than to give positive or negative feedback?

    What’s the difference? Feedback is about you telling people what you think and giving them the path forward from that in most cases.  Insights are people discerning what they think.

    Research shows us that people are more likely to act on what they think not what you think because insight is brain food which creates dopamine which makes us feel good. (When was the last time traditional feedback gave you a shot of dopamine?)

    So as a leader, creating insights may be the better way to get the results you need rather than trying to give feedback.

    How do you do it though? Our previous post suggests some ways. There are also some helpful ways in Nine Lies About Work by Marcus Buckingham and Ashley Goodall.   Their “insights” suggest focusing on the 1) past 2) present and 3) future and all revolved around asking good questions, not giving good answers*.

    1. Start with the Present: Ask, “What three things are working right now?” For more on this, especially when utilizing it for change management purposes, read here.
    2. Revisit the Past: Ask, “When you had problems/situations like this in the past, what did you do that worked?”
    3. Finish with the Future: Ask, “What do you already know you need to do? What do you know already works?”

    My little girl loves to paint and draw. Often, she asks me to help her draw something. We’ve been on a heart drawing kick lately. The first few times, I’ve drawn a heart on a page or a canvas for her to color or paint in. But then I stopped doing it and just left her to it. What I discovered was that her own hearts were better than anything I could have ever helped her create.  I just need to provide the tools and she can do the rest better than I can.

    How are you providing the right tools and asking the right questions in order to give people the opportunity to grow?

    *Nine Lies About Work is an insightful book linked to a lot of research. The way they phrase the nine lies, though, may just be a matter of semantics, so don’t let the titles of the lies fool you. Read the context in the chapters. In this case, you may be giving feedback in the form of creating insights.  Don’t take this to mean you need to scratch giving feedback. Just make sure you do it in a way that leads to learning and engagement instead of in a way that leads to disengagement. For more, read the book on how to do this.