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The Post GFC Leader
Identifying and equipping leaders to engage, motivate and
retain talent in the post GFC landscape


Aaron McEwan
Director, Hudson Talent Management

Dr Ben Palmer
CEO, Genos International
Hudson 20:20 Series Whitepaper


“Positioning for Growth – Building a Dynamic Workforce in a
                    New Economic Era”
Assessed the fallout of the downturn in Australia and New
Zealand’s businesses and workforces, with specific focus on
today’s increasing labour market liquidity
      Surveyed: 574 Employers
                1633 Employees

Provided recommendations on how to find and retain high
performing employees in an increasingly competitive, skills-
short market
The GFC: What did employers experience?


    37% implemented pay freezes for some/all
    staff

    50% roles were merged or made redundant
    43% workloads increased
    11% of overall workforce lost
    59% say they are now under-resourced
    32% market has become more competitive
The GFC: What did employers experience?


    50% roles were merged or made redundant
    More than 3500 candidates completed
    Hudson outplacement programs – mostly
    middle managers
    Many outplacement candidates changed
    careers/industries – not coming back
    Retirement plans shelved due to impact on
    super – ageing workforce issues postponed
Business As Usual?




                     “WE’RE NOW PLANNING
                     FOR A PERIOD OF
                     GROWTH, THERE’S AN
                     OPTIMISTIC AIR IN THE
                     COMPANY THAT WE’VE
                     MISSED”
                     CMO, Sales, Marketing &
                     Communications
The New Workload Regime




                          62% of employees
                          believe they are
                          working harder as a
                          result of changes
                          made during the
                          GFC
Employee Loyalty and Motivation Post GFC



                                           “THE DOWNTURN HAS
                                           MADE A BAD
                                           IMPRESSION ON MY
                                           EMPLOYEES AND WE
                                           KNOW NOW THAT
                                           WE’RE BEING HELD TO
                                           THAT IMPRESSION”
                                           HR Manager, Office Support
Talent Exodus Arrives




                        Around 61% of
                        employees plan
                        to be in a new
                        job within the next
                        six months
Reasons For Change
Skills Shortage Returns
Employers Now Focussed On Getting The Right Team



  43% do not have the right team in place
  84% made too many redundancies
  23% of losses were high performers
  34% says teams are now weaker
  83% are focussed on building the right
         team for growth
What is a High Performer?




     High performers are engaged, they’re inspired and
     they expend discretionary effort
Employee Engagement and Discretionary Effort


Only 11% of a typical workforce is highly engaged

Engaged employees can yield up to 57% more discretionary effort

This discretionary effort can improve performance by 20%

73% of engagement is explained by actions or behaviours exhibited by leaders


                               High Engagement              Low Engagement
      Financial Metric
                                  Companies                   Companies
      (12 month change)
                                      (%)                        (%)

      Operating Income               + 19.2                          - 32.7

      Net Income Growth              + 13.7                           - 3.8
      Earnings Per Share             + 27.8                          - 11.2

                                              Towers Global Workforce Study (2008)
Retention – Keeping high performers engaged

Drivers                                 Environment

•  Right People in the Right Jobs       •  Aligned Effort and Strategy

•  Leadership Excellence                •  Empowerment

•  Organisational Strategies and        •  Collaboration
   Systems
                                        •  Growth and Development

                                        •  Support and Recognition


                               Employees are four times more likely to leave a job with
                               a Manager that has poor Coaching and Interpersonal
                               Skills
                                                  (Cherniss & Goleman, 2001)
The Post GFC Leader has to function in an environment where…



There is very little certainty - world economy is unstable
There is opportunity for growth and market share gain
Business is highly complex with multiple, global and diverse interactions
and interconnections
GFC downsizing cut deeply into ‘muscle’
Turnover and workforce fluidity are high
Competition for high performers and ‘talent’ is fast approaching pre-GFC
levels
Employee engagement and loyalty is declining yet critical to success
What Makes an Engaging Leader? – Understated Authenticity

Intellectual Agility - Navigates complexity, integrates complex
information

Resilience - Copes with ambiguity and continuous change, stress resistant
Self Awareness - Seeks feedback to improve interactions with others,
accurately describes how others view his or her capabilities

Relational Transparency - Says exactly what he or she means, is
willing to admit mistakes when they are made

Balanced Processing - Solicits views that challenge his or her deeply
held positions, listens carefully to different points of view before coming to
conclusions

Internalised Moral Perspective - Demonstrates beliefs that are
consistent with actions, makes decisions based on his/her core beliefs
Source: Prof Paul Evans Journal of Human Resource Management (2003)
What Drives Leadership Performance?
The traditional method

                         Employee engagement

                               Perform

                           Praise Perfect

                           Universal drivers of   Executive Leadership
Communication
                               motivation         Leadership
Decision Making
Role-Clarity                                      Career Opportunities
Working Conditions                                Interdepartmental Cooperation
Performance Management                            Resources
Strategy                                          Mission/Vision/Values
Reward & Recognition                              Change Management
Learning & Development
Employee engagement
                                         Praise Perfect




                                                          time
                               Perform
The traditional method




                          Universal drivers of
                              motivation
What about individual drivers of motivation?
 Employee engagement          Employee engagement

       Perform                       Perform

   Praise Perfect               Praise Perfect

   Universal drivers of
       motivation
                          +     Individual drivers of
                                     motivation
Individual motivational drivers
Motivational fit and engagement



         Amount of variance in engagement explained
                                                      100%




                                                      80%




                                                      60%
                                                              53%
                                                                       45%


                                                      40%

                                                                                 27%
                                                                                             21%
                                                      20%




                                                       0%
                                                             Manager   Team   Organisation   Role
What happens when you achieve it?
New methods



 Individualising employee engagement



 Develop managers emotional intelligence



 Facilitate individual motivational fit engagement reviews and
 monitor the impact
Individualise employee engagement

 Employee engagement

         Perform

     Praise Perfect

    Individual drivers of
         motivation
                             =      Shared
                                    ownership
New methods - develop manager’s emotional intelligence

                                        r = .48
               r = .45


                                                  r = .56



     r = .58




                                                   r = .52


           r = .48

                                        r = .53
Engaged




Nearly
Engaged




Not
Engaged


Disengaged
Facilitating individual engagement – five step process


1.    Purpose & Outcomes

2.    Present your own analysis

3.    Individual motivational fit activity

4.    SMART Goal action planning

5.    Monitor
Summary



1.    Individualising employee engagement



2.    Develop managers emotional intelligence



3.    Facilitate individual motivational fit engagement reviews
      and monitor the impact
The Post GFC Leader

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The Post GFC Leader

  • 1. The Post GFC Leader Identifying and equipping leaders to engage, motivate and retain talent in the post GFC landscape Aaron McEwan Director, Hudson Talent Management Dr Ben Palmer CEO, Genos International
  • 2. Hudson 20:20 Series Whitepaper “Positioning for Growth – Building a Dynamic Workforce in a New Economic Era” Assessed the fallout of the downturn in Australia and New Zealand’s businesses and workforces, with specific focus on today’s increasing labour market liquidity Surveyed: 574 Employers 1633 Employees Provided recommendations on how to find and retain high performing employees in an increasingly competitive, skills- short market
  • 3. The GFC: What did employers experience? 37% implemented pay freezes for some/all staff 50% roles were merged or made redundant 43% workloads increased 11% of overall workforce lost 59% say they are now under-resourced 32% market has become more competitive
  • 4. The GFC: What did employers experience? 50% roles were merged or made redundant More than 3500 candidates completed Hudson outplacement programs – mostly middle managers Many outplacement candidates changed careers/industries – not coming back Retirement plans shelved due to impact on super – ageing workforce issues postponed
  • 5. Business As Usual? “WE’RE NOW PLANNING FOR A PERIOD OF GROWTH, THERE’S AN OPTIMISTIC AIR IN THE COMPANY THAT WE’VE MISSED” CMO, Sales, Marketing & Communications
  • 6. The New Workload Regime 62% of employees believe they are working harder as a result of changes made during the GFC
  • 7. Employee Loyalty and Motivation Post GFC “THE DOWNTURN HAS MADE A BAD IMPRESSION ON MY EMPLOYEES AND WE KNOW NOW THAT WE’RE BEING HELD TO THAT IMPRESSION” HR Manager, Office Support
  • 8. Talent Exodus Arrives Around 61% of employees plan to be in a new job within the next six months
  • 11. Employers Now Focussed On Getting The Right Team 43% do not have the right team in place 84% made too many redundancies 23% of losses were high performers 34% says teams are now weaker 83% are focussed on building the right team for growth
  • 12. What is a High Performer? High performers are engaged, they’re inspired and they expend discretionary effort
  • 13. Employee Engagement and Discretionary Effort Only 11% of a typical workforce is highly engaged Engaged employees can yield up to 57% more discretionary effort This discretionary effort can improve performance by 20% 73% of engagement is explained by actions or behaviours exhibited by leaders High Engagement Low Engagement Financial Metric Companies Companies (12 month change) (%) (%) Operating Income + 19.2 - 32.7 Net Income Growth + 13.7 - 3.8 Earnings Per Share + 27.8 - 11.2 Towers Global Workforce Study (2008)
  • 14. Retention – Keeping high performers engaged Drivers Environment •  Right People in the Right Jobs •  Aligned Effort and Strategy •  Leadership Excellence •  Empowerment •  Organisational Strategies and •  Collaboration Systems •  Growth and Development •  Support and Recognition Employees are four times more likely to leave a job with a Manager that has poor Coaching and Interpersonal Skills (Cherniss & Goleman, 2001)
  • 15. The Post GFC Leader has to function in an environment where… There is very little certainty - world economy is unstable There is opportunity for growth and market share gain Business is highly complex with multiple, global and diverse interactions and interconnections GFC downsizing cut deeply into ‘muscle’ Turnover and workforce fluidity are high Competition for high performers and ‘talent’ is fast approaching pre-GFC levels Employee engagement and loyalty is declining yet critical to success
  • 16. What Makes an Engaging Leader? – Understated Authenticity Intellectual Agility - Navigates complexity, integrates complex information Resilience - Copes with ambiguity and continuous change, stress resistant Self Awareness - Seeks feedback to improve interactions with others, accurately describes how others view his or her capabilities Relational Transparency - Says exactly what he or she means, is willing to admit mistakes when they are made Balanced Processing - Solicits views that challenge his or her deeply held positions, listens carefully to different points of view before coming to conclusions Internalised Moral Perspective - Demonstrates beliefs that are consistent with actions, makes decisions based on his/her core beliefs Source: Prof Paul Evans Journal of Human Resource Management (2003)
  • 17. What Drives Leadership Performance?
  • 18. The traditional method Employee engagement Perform Praise Perfect Universal drivers of Executive Leadership Communication motivation Leadership Decision Making Role-Clarity Career Opportunities Working Conditions Interdepartmental Cooperation Performance Management Resources Strategy Mission/Vision/Values Reward & Recognition Change Management Learning & Development
  • 19. Employee engagement Praise Perfect time Perform The traditional method Universal drivers of motivation
  • 20. What about individual drivers of motivation? Employee engagement Employee engagement Perform Perform Praise Perfect Praise Perfect Universal drivers of motivation + Individual drivers of motivation
  • 22. Motivational fit and engagement Amount of variance in engagement explained 100% 80% 60% 53% 45% 40% 27% 21% 20% 0% Manager Team Organisation Role
  • 23. What happens when you achieve it?
  • 24. New methods Individualising employee engagement Develop managers emotional intelligence Facilitate individual motivational fit engagement reviews and monitor the impact
  • 25. Individualise employee engagement Employee engagement Perform Praise Perfect Individual drivers of motivation = Shared ownership
  • 26. New methods - develop manager’s emotional intelligence r = .48 r = .45 r = .56 r = .58 r = .52 r = .48 r = .53
  • 28. Facilitating individual engagement – five step process 1.  Purpose & Outcomes 2.  Present your own analysis 3.  Individual motivational fit activity 4.  SMART Goal action planning 5.  Monitor
  • 29. Summary 1.  Individualising employee engagement 2.  Develop managers emotional intelligence 3.  Facilitate individual motivational fit engagement reviews and monitor the impact