Providing water to employees is employer’s duty in China. Many employers in Shanghai go however beyond this requirement and make coffee and tee available to employees for free. Some companies offer fruits (e.g. JWT) in the afternoon and some other a noodle soup when one is working after 7pm (e.g. TBWA).
The NetCircle offers a full food service program (breakfast, lunch, afternoon snacks and dinner) free for all employees. By providing meal perks, the company’s founders hope to keep its workforce happy, motivated, efficient and productive. The perk also allows for a greater community building among employees. There are little to no incentives to leave company office during lunch hours. Instead, employees can socialize and have a conversation. In addition, an inviting well-designed kitchen serving delicious food from 8.00am to 8pm might lure talent and certainly for some employees is a good argument to stay.
To mention on the micro perspective: The menus are planned by an administrative assistant and the two cooks usually one week in advance. Cooks consult employees daily in terms of food preferences and likability of served dishes. They are especially interested in employees feedback after they’ve cooked something new, particularly a Western meal, prepared based on a recipe from a cook book. The cooks start their day by visiting the market to buy fresh ingredients. Notably, in The NetCircle’s kitchen as much as possible is made from scratch.
Showing posts with label retention. Show all posts
Showing posts with label retention. Show all posts
Tuesday, May 25, 2010
Tuesday, March 16, 2010
Engagement at the Expense of Personal Time
At Dun and Bradstreet, a great personnel policy aimed at protecting employees’ personal time has been introduced. Meetings cannot be scheduled on Mondays or Fridays if it requires people to travel over the weekend. This policy came into effect to demonstrate that the company cares and values people employees' free time .
In China such thinking is yet to come. Meanwhile, foreign companies like to promote the “work hard, play hard” philosophy expecting hard work and long hours as well as attendance of company organized “leisure activities”. After hours events are often an integral part of the company’s culture and engagement approach. In addition, managers sponsor these activities in order to improve team work and team spirit or to generally bring about more communication and friendships between foreign and local employees. Going out after work sometimes serves as a form of recognition for good team results.
After work socializing is often fueled by an expat manager's small circle of friends and lack of his/her family members in China. However, it is also sought out by Chinese employees as long as it is not too often and does not conflict with their private life such as the Friday family dinner. Eating together is a central element of Chinese culture and is considered a bonding endeavor.
Most of the time, departmental budgets support these activities. However, employees are sometimes expected to spend their own money. Since splitting the bill at the restaurant is fairly uncommon in China, each month a different team member may be expected to play the “host” and cover the evenings’ expenses.
Over time, many companies have started to realize that differences in taste between Expats and Locals cannot be successfully addressed during just one outing. As a result, some employees find excuses and do not attend . In turn, this low attendance causes a certain amount of resentment among management who feels that their generosity and efforts toward generating a "fun" workplace goes unnoticed.
Are the company activities after working hours really a payback employees expect?
In China such thinking is yet to come. Meanwhile, foreign companies like to promote the “work hard, play hard” philosophy expecting hard work and long hours as well as attendance of company organized “leisure activities”. After hours events are often an integral part of the company’s culture and engagement approach. In addition, managers sponsor these activities in order to improve team work and team spirit or to generally bring about more communication and friendships between foreign and local employees. Going out after work sometimes serves as a form of recognition for good team results.
After work socializing is often fueled by an expat manager's small circle of friends and lack of his/her family members in China. However, it is also sought out by Chinese employees as long as it is not too often and does not conflict with their private life such as the Friday family dinner. Eating together is a central element of Chinese culture and is considered a bonding endeavor.
Most of the time, departmental budgets support these activities. However, employees are sometimes expected to spend their own money. Since splitting the bill at the restaurant is fairly uncommon in China, each month a different team member may be expected to play the “host” and cover the evenings’ expenses.
Over time, many companies have started to realize that differences in taste between Expats and Locals cannot be successfully addressed during just one outing. As a result, some employees find excuses and do not attend . In turn, this low attendance causes a certain amount of resentment among management who feels that their generosity and efforts toward generating a "fun" workplace goes unnoticed.
Are the company activities after working hours really a payback employees expect?
Tuesday, February 2, 2010
Talent Challenges in China
Once the hiring test is passed, working with Chinese employees presents other challenges.
Fragile Egos. Ba Ling Hou (the generation born in the 1980s) is the first Chinese generation after the introduction of the one-child policy. Growing up as the center of their family, these so-called “little emperors” are generally more self-centered and more individualistic than their parents. They tend to be less political than the older generation of employees and less receptive to hierarchy. However, this generation is more receptive and adaptive to Western style management. Those who gain a foothold in MNCs have oftentimes exceeded their peers in academic achievements and hence expect to win the race for higher pay, position, and title. These young Chinese employees are also smart, outgoing, and want to be independent. However, they did not necessarily learn how to cope with failures, exercise judgment, make decisions, and be a part of the team.
Unrealistic Expectations. Frequently, Chinese employees have high expectations and exhibit an attitude of “I disserve it” without reflection about their skills and abilities. Employees believe that they should be entrusted with interesting and challenging tasks, promoted, and offered better compensation and benefits packages at least on an annual basis. These high expectations are often fueled by open discussion and comparisons of their packages with colleagues, college peers, and friends. However, since status is very important in Chinese circles, a promotion or even a change in title without a change in duties can satisfy Chinese employees more than any other perk. But keep in mind that such promotions can backfire too. As a real life example, a 22 year old employee refused to report to a 25-year old manager with the argument that the manager was too young and did not know much more than the employee. The employee did not see how she could be successfully trained and mentored by a person from the same age group.
Weak Loyalty. In the US, the average length of time an employee stays in a job used to be five to six years. In China, it is two years. It is worst among Western trained and English fluent Chinese professionals who make "hopping around" from one international company to another a sport. Employees view employers as stepping stones to become more marketable in the future. As one applicant explained to me, referring to the question “How long do you envision yourself staying in this company?”,“The relationship between me and the company is give and take, if it works well for both of us, I’ll stay. If the company falls short, then I will need to leave”.
The Glass Ceiling. As much as employees desire to work for international companies, they perceive a glass ceiling in these organizations. Only a talent localization strategy can help eliminate employees’ fear of the “glass ceiling”. To execute it properly, coach-type Expatriates must be hired with the brief to share knowledge and mentor local staff.
What Vacation? The culture of a taking a vacation by Chinese employees is developing but is not there yet. Chinese prefer to take one day or even half-day annual leave on short notice with little consideration to work schedules, deadlines, and priorities as opposed to a vacation well planned in advance (as traditionally done in the West). Interestingly, annual leave is oftentimes used for interviewing at another employer. During my early consulting days, I was told that whenever an HP employee took leave on Tuesday morning; that meant they were interviewing at Microsoft.
Fragile Egos. Ba Ling Hou (the generation born in the 1980s) is the first Chinese generation after the introduction of the one-child policy. Growing up as the center of their family, these so-called “little emperors” are generally more self-centered and more individualistic than their parents. They tend to be less political than the older generation of employees and less receptive to hierarchy. However, this generation is more receptive and adaptive to Western style management. Those who gain a foothold in MNCs have oftentimes exceeded their peers in academic achievements and hence expect to win the race for higher pay, position, and title. These young Chinese employees are also smart, outgoing, and want to be independent. However, they did not necessarily learn how to cope with failures, exercise judgment, make decisions, and be a part of the team.
Unrealistic Expectations. Frequently, Chinese employees have high expectations and exhibit an attitude of “I disserve it” without reflection about their skills and abilities. Employees believe that they should be entrusted with interesting and challenging tasks, promoted, and offered better compensation and benefits packages at least on an annual basis. These high expectations are often fueled by open discussion and comparisons of their packages with colleagues, college peers, and friends. However, since status is very important in Chinese circles, a promotion or even a change in title without a change in duties can satisfy Chinese employees more than any other perk. But keep in mind that such promotions can backfire too. As a real life example, a 22 year old employee refused to report to a 25-year old manager with the argument that the manager was too young and did not know much more than the employee. The employee did not see how she could be successfully trained and mentored by a person from the same age group.
Weak Loyalty. In the US, the average length of time an employee stays in a job used to be five to six years. In China, it is two years. It is worst among Western trained and English fluent Chinese professionals who make "hopping around" from one international company to another a sport. Employees view employers as stepping stones to become more marketable in the future. As one applicant explained to me, referring to the question “How long do you envision yourself staying in this company?”,“The relationship between me and the company is give and take, if it works well for both of us, I’ll stay. If the company falls short, then I will need to leave”.
The Glass Ceiling. As much as employees desire to work for international companies, they perceive a glass ceiling in these organizations. Only a talent localization strategy can help eliminate employees’ fear of the “glass ceiling”. To execute it properly, coach-type Expatriates must be hired with the brief to share knowledge and mentor local staff.
What Vacation? The culture of a taking a vacation by Chinese employees is developing but is not there yet. Chinese prefer to take one day or even half-day annual leave on short notice with little consideration to work schedules, deadlines, and priorities as opposed to a vacation well planned in advance (as traditionally done in the West). Interestingly, annual leave is oftentimes used for interviewing at another employer. During my early consulting days, I was told that whenever an HP employee took leave on Tuesday morning; that meant they were interviewing at Microsoft.
Tuesday, August 5, 2008
Internal Employer Branding Strategy
You cannot stop marketing to your employees just because they work for you. Employees must be constantly reminded of why they joined the organization in the first place and what is special about your company that causes them to stay.
A few ideas for strengthening your company’s brand internally:
• Communicate your strengths frequently; for example, your involvement in the community, awards, and successes that are acknowledged in the press or by professional associations.
• Encourage stories about what it is like to work at your company and store them as a “Story Inventory”.
• Engage employees during the interview process by having them deliver a company pitch to job candidates.
• Involve your employee’s family, if applicable.
• Celebrate your accomplishments publicly.
Internal branding efforts help build self-esteem, commitment, and increase motivation among employees.
A few ideas for strengthening your company’s brand internally:
• Communicate your strengths frequently; for example, your involvement in the community, awards, and successes that are acknowledged in the press or by professional associations.
• Encourage stories about what it is like to work at your company and store them as a “Story Inventory”.
• Engage employees during the interview process by having them deliver a company pitch to job candidates.
• Involve your employee’s family, if applicable.
• Celebrate your accomplishments publicly.
Internal branding efforts help build self-esteem, commitment, and increase motivation among employees.
Tuesday, July 29, 2008
Employer Positioning
When generating synergies between marketing and HR, one can not overlook learning from Levi Strauss or Nike. Both corporate giants offer tailor-made products to fit unique needs and desires of every individual customer.
HR departments already recognize the need to position their companies in job markets. They draft, declare, and communicate the company’s value proposition to employees and candidates. An Employee Value Proposition (EVP) in the form of a statement of why the total work experience at a given company is superior to that of another is however not enough.
EVP must be real in terms of what the employee receives from the company for their commitment and the contributions they are expected to make. VOI2C2E is a framework for detailing elements of an EVP*:
Obviously, different employees will rank the importance of each element of this framework on their own accord. Therefore, an effective EVP will personalize the agreement so employees who meet expectations will be rewarded with VOI2C2E elements that matter most to them.
So, it is not only vital to differentiate the company from other companies. Just like Levi Strauss and Nike can address customers’ unique preferences, HR ought to differentiate the EVP for each employee.
The goal of HR should not be so much attempting to differentiate the company from other companies, as putting people first and differentiating effectively between them. This sort of flexibility from an EVP can build true commitment among employees.
* Ulrich, Dave, & Brockbank, Wayne (2005). The HR Value Proposition. Boston, MA: Harvard Business School Press.
HR departments already recognize the need to position their companies in job markets. They draft, declare, and communicate the company’s value proposition to employees and candidates. An Employee Value Proposition (EVP) in the form of a statement of why the total work experience at a given company is superior to that of another is however not enough.
EVP must be real in terms of what the employee receives from the company for their commitment and the contributions they are expected to make. VOI2C2E is a framework for detailing elements of an EVP*:
• Vision. The firm has a clear sense of the future that engages hearts and minds and creates pride among employees.
• Opportunity. The work provides a chance to grow both personally and professionally, and to develop skills and knowledge that promote present and future employability.
• Incentive. The compensation package is fair and equitable, including base salary, bonus, and other financial incentives.
• Impact. The work itself makes a difference or creates meaning, particularly as it connects the employee with a customer who uses the employee’s work.
• Community. The social environment includes being part of a team (when appropriate) and working with co-workers who care.
• Communication. The flow of information is two-way, so employees are informed about what is going on.
• Experimentation. Working hours, dress, and other policies are flexible and designed to adapt to the needs of both the firm and the employee.
Obviously, different employees will rank the importance of each element of this framework on their own accord. Therefore, an effective EVP will personalize the agreement so employees who meet expectations will be rewarded with VOI2C2E elements that matter most to them.
So, it is not only vital to differentiate the company from other companies. Just like Levi Strauss and Nike can address customers’ unique preferences, HR ought to differentiate the EVP for each employee.
The goal of HR should not be so much attempting to differentiate the company from other companies, as putting people first and differentiating effectively between them. This sort of flexibility from an EVP can build true commitment among employees.
* Ulrich, Dave, & Brockbank, Wayne (2005). The HR Value Proposition. Boston, MA: Harvard Business School Press.
Tuesday, July 22, 2008
Job Branding
Job branding is yet another concept that brings the principles of marketing and HR together in order to attract and retain talent.
Essentially, this is a technique to increase the importance of the job by tying it directly into the company’s strategy, vision, or an important initiative or major project. Accordingly, candidates and employees can clearly see growth opportunities that come with successful performance, i.e. what they can learn, do, and become.
Surprisingly though, job branding is only becoming fashionable now. But, tying each job in some way to the company’s strategy should have been HR’s task for decades. How else could HR have determined the need for new positions or additional staff in certain positions?
Or is it that simply with growth, companies hire more and more employees who do not (recognize how they) create value and whose work does not connect to the company’s strategy?
True, some jobs can be more directly connected with strategy than others, and there are jobs that are absolutely strategy-general, e.g. switch-board operator. However, a clear sight between employees’ work and value creation must be sought to create a win situation; for employees, customers, or shareholders.
Essentially, this is a technique to increase the importance of the job by tying it directly into the company’s strategy, vision, or an important initiative or major project. Accordingly, candidates and employees can clearly see growth opportunities that come with successful performance, i.e. what they can learn, do, and become.
Surprisingly though, job branding is only becoming fashionable now. But, tying each job in some way to the company’s strategy should have been HR’s task for decades. How else could HR have determined the need for new positions or additional staff in certain positions?
Or is it that simply with growth, companies hire more and more employees who do not (recognize how they) create value and whose work does not connect to the company’s strategy?
True, some jobs can be more directly connected with strategy than others, and there are jobs that are absolutely strategy-general, e.g. switch-board operator. However, a clear sight between employees’ work and value creation must be sought to create a win situation; for employees, customers, or shareholders.
Tuesday, March 25, 2008
Developing Retention Strategy
Retention must be approached strategically to achieve measurable, sustainable, and long-term impact for your organization.
In order to develop an effective retention strategy, start with the following four steps:
1. Understand your company’s strategy
Determine what sort and type of talent should be retained.
2. Collect employee demographic data
Analyze your workforce in terms of age and career stages (for example, early career, mid-career, late career), gender, management level, etc. List any reasons why the employee accepted a position in your company from the beginning.
3. Analyze your attrition rate
Investigate the attrition rate over several years by distinguishing between voluntary and involuntary, internal and external, and dysfunctional (of high performers) and functional (of low performers) turnover. Apply the fishbone diagram or other tools to solve complex problems.
4. Conduct stay interviews
The keys to a successful retention strategy involve knowing:
• What works within the parameters of your company’s culture,
• What works for your employees, and
• What employees value about your company and their work.
In order to develop an effective retention strategy, start with the following four steps:
1. Understand your company’s strategy
Determine what sort and type of talent should be retained.
2. Collect employee demographic data
Analyze your workforce in terms of age and career stages (for example, early career, mid-career, late career), gender, management level, etc. List any reasons why the employee accepted a position in your company from the beginning.
3. Analyze your attrition rate
Investigate the attrition rate over several years by distinguishing between voluntary and involuntary, internal and external, and dysfunctional (of high performers) and functional (of low performers) turnover. Apply the fishbone diagram or other tools to solve complex problems.
4. Conduct stay interviews
The keys to a successful retention strategy involve knowing:
• What works within the parameters of your company’s culture,
• What works for your employees, and
• What employees value about your company and their work.
Monday, February 11, 2008
CNY Resolution: Walk the Talk
In 2008, financial rewards will continue to be the company’s chief weapon in the War for Talent.
Nonetheless, employers’ competition for talent based on compensation is as dreadful as market competition based on price. Undercutting prices can lead to an increase in market share in the short-term; however it can impact the profitability in the long-term. Comparable, companies can successfully lure talent, but may have difficulties to gain their loyalty and commitment over the long haul.
DDI’s Retention Drivers and Employee Commitment Model confirms that monetary incentives have a short life. Employees particularly fall prey to higher financial rewards (tangible elements of EVP) from a competitor, when they feel dissatisfied with the level of leadership, growth opportunities, and culture (intangible elements of EVP) at their current company. Thus, talent can be successfully attracted with EVP tangibles but must be retained with EVP intangibles.
So, to stop this vicious cycle of turnover, companies should design a distinctive EVP and actually walk the corporate talk of “employees are our greatest assets”. Surely this could be a valid Chinese New Year’s Resolution.
A Happy Year of the Rat!
Nonetheless, employers’ competition for talent based on compensation is as dreadful as market competition based on price. Undercutting prices can lead to an increase in market share in the short-term; however it can impact the profitability in the long-term. Comparable, companies can successfully lure talent, but may have difficulties to gain their loyalty and commitment over the long haul.
DDI’s Retention Drivers and Employee Commitment Model confirms that monetary incentives have a short life. Employees particularly fall prey to higher financial rewards (tangible elements of EVP) from a competitor, when they feel dissatisfied with the level of leadership, growth opportunities, and culture (intangible elements of EVP) at their current company. Thus, talent can be successfully attracted with EVP tangibles but must be retained with EVP intangibles.
So, to stop this vicious cycle of turnover, companies should design a distinctive EVP and actually walk the corporate talk of “employees are our greatest assets”. Surely this could be a valid Chinese New Year’s Resolution.
A Happy Year of the Rat!
Wednesday, February 6, 2008
Personal Impact Map
The rise of job branding clearly shows that companies are unable to communicate to their employees how each and every one of them creates value.
Thus, only a few employees can share bottom-line accomplishments like increased revenues, decreased costs, increased prices, increased product/service quality (so that it leads to one of the previous three) or efficiency improvements (better, faster, cheaper) during their tenure.
The vast majority of the workforce does not even believe they make a difference let alone their performance or lack thereof can have an impact on the company’s profits. As a result, when applying for a new job, many applicants have difficulties specifying their achievements.
Managers should start changing this reality by helping employees develop a personal impact map. Together with HR professionals, they should undertake job redesign to create positive benefits, better outcomes, or further progress toward employee career goals.
As a result, each employee will understand how specific activities that he or she performs contribute to the organization’s vision. They will also better recognize their accomplishments.
Lastly, job branding and personal impact mapping can act as catalysts for meaningful and purposeful jobs across the board.
Thus, only a few employees can share bottom-line accomplishments like increased revenues, decreased costs, increased prices, increased product/service quality (so that it leads to one of the previous three) or efficiency improvements (better, faster, cheaper) during their tenure.
The vast majority of the workforce does not even believe they make a difference let alone their performance or lack thereof can have an impact on the company’s profits. As a result, when applying for a new job, many applicants have difficulties specifying their achievements.
Managers should start changing this reality by helping employees develop a personal impact map. Together with HR professionals, they should undertake job redesign to create positive benefits, better outcomes, or further progress toward employee career goals.
As a result, each employee will understand how specific activities that he or she performs contribute to the organization’s vision. They will also better recognize their accomplishments.
Lastly, job branding and personal impact mapping can act as catalysts for meaningful and purposeful jobs across the board.
Monday, January 21, 2008
Role of Managers
“People join companies but they leave managers.” Gallup
“People don’t work for companies as much as they work for other people.” Ruth Branson
"Money can't replace good management." Ann Howard
One of the most impact driven elements of a sound retention strategy is the role of the manager. Regardless of how hard HR professionals work on the retention strategy and how attractive and accommodative the company’s culture and values are, if the managers do not have basic managerial skills, then there is no way the company will succeed and thrive.
Management basics for supervisors and managers include:
• Goal setting,
• Performance evaluation,
• Knowing how to provide feedback – both positive and negative,
• Knowing how to motivate employees,
• Knowing when and how to praise employees,
• The ability to develop other people, and
• Coaching skills to help employees reach greater levels of achievement.
Since several decades, many companies rely on management training programs to build and enhance the talent pipeline for future managers and leaders. During management training, trainees at German companies in China familiarize themselves with various aspects of the company’s operations and develop technical skills and industry knowledge.
A major drawback exists though in most of these management training programs. They simply do not nurture talent in skills related to working with people. This is a significant concern because management is really all about communication.
“People don’t work for companies as much as they work for other people.” Ruth Branson
"Money can't replace good management." Ann Howard
One of the most impact driven elements of a sound retention strategy is the role of the manager. Regardless of how hard HR professionals work on the retention strategy and how attractive and accommodative the company’s culture and values are, if the managers do not have basic managerial skills, then there is no way the company will succeed and thrive.
Management basics for supervisors and managers include:
• Goal setting,
• Performance evaluation,
• Knowing how to provide feedback – both positive and negative,
• Knowing how to motivate employees,
• Knowing when and how to praise employees,
• The ability to develop other people, and
• Coaching skills to help employees reach greater levels of achievement.
Since several decades, many companies rely on management training programs to build and enhance the talent pipeline for future managers and leaders. During management training, trainees at German companies in China familiarize themselves with various aspects of the company’s operations and develop technical skills and industry knowledge.
A major drawback exists though in most of these management training programs. They simply do not nurture talent in skills related to working with people. This is a significant concern because management is really all about communication.
Friday, January 4, 2008
Stay Interviews
A stay interview is one of the tools for HR professionals as they manage the shift from a tactical to strategic approach.
Tracking and reporting turnover rates and causes after the fact is a tactical approach whereas alerting managers in advance about which employees are likely to quit and recommending effective retention tools is a strategic approach.
Designed and administered properly, stay interviews can provide warning signals and help to identify issues and problems at an early stage. Conducted with new hires, the stay interview may allow an employer to discover workplace issues particularly visible to novices before they too “go native” in the new company. However, prerequisites for success include:
• Conducting interviews on a regular basis,
• Asking open-ended questions, and
• in similar fashion to the “suggestion-box”, creating an action plan and implementing it in a timely manner.
When analyzing stay interviews, it is important to isolate the results of high-performers, especially those in key positions or “at risk” individuals. You must also analyze your low performers to find out what keeps them in your company!
On another hand, stay interviews allow employees to evaluate the employer’s performance and communicate what is important for them to maintain a high quality work life. It should be expected that this feedback loop will become more and more critical as employees shift to Free Agents (professionals who invest their human capital with the expectation of getting a return on their investment in the form of new experiences that can be added to their work portfolio).
Stay interview questions may be found here.
Tracking and reporting turnover rates and causes after the fact is a tactical approach whereas alerting managers in advance about which employees are likely to quit and recommending effective retention tools is a strategic approach.
Designed and administered properly, stay interviews can provide warning signals and help to identify issues and problems at an early stage. Conducted with new hires, the stay interview may allow an employer to discover workplace issues particularly visible to novices before they too “go native” in the new company. However, prerequisites for success include:
• Conducting interviews on a regular basis,
• Asking open-ended questions, and
• in similar fashion to the “suggestion-box”, creating an action plan and implementing it in a timely manner.
When analyzing stay interviews, it is important to isolate the results of high-performers, especially those in key positions or “at risk” individuals. You must also analyze your low performers to find out what keeps them in your company!
On another hand, stay interviews allow employees to evaluate the employer’s performance and communicate what is important for them to maintain a high quality work life. It should be expected that this feedback loop will become more and more critical as employees shift to Free Agents (professionals who invest their human capital with the expectation of getting a return on their investment in the form of new experiences that can be added to their work portfolio).
Stay interview questions may be found here.
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