| The talent supply and demand equation has changed the way
companies view the talent life cycle and talent management process from sourcing to
transitioning employees. It is also transforming the way companies treat departing
employees. Gone are the days of viewing employees as a depreciated asset to be discarded.
Human resources is now human capital - an investment to be grown and treasured for the
long term profitability of the organization. When employees leave an organization
voluntarily or involuntarily, rather than ex-employees they become alumni. Indeed, the
relationship with alumni is becoming as important as the relationship with candidates and
employees - one to be nurtured for future referrals and even potential re-employment. Alumni Matter
Over thirty percent of new hires are referred by employees or
alumni … |
How does this shift in talent strategy change the way companies view outplacement? No
longer an after thought, outplacement is a vital service in the career development
continuum and the talent life cycle. “Employee transitions must be handled with the
same care and concern as the candidate selection and hiring process itself,”
commented Patricia Mitchell, Senior Vice President with Texas Medical Center. Departing
employees are not “depleted resources”, but rather talent re-entering the pool
of potential candidates on which the organization must draw for its ongoing success and
future growth.
Recruiting Strategy
Over thirty percent of new hires are referred by employees or alumni and increasing
that percentage is the most viable and cost effective strategy for organizations to find
the top talent they seek for continued profitability and growth. Providing professional
and customized talent transition services is an investment in the ongoing relationship
with departing employees --alumni. Ensuring that the appropriate level and quality of
services is provided to departing employees is essential to a positive ongoing
relationship with those alumni.
The engineering and construction industry has understood this reality for many years
because their employees typically are assigned projects, which, when completed, make the
employee a “free” agent if no new assignment is available. Gary Carlson, Vice
President, Human Resources for KBR, a Halliburton international engineering and
construction company observed, “Outplacement is a value-added investment to ensure a
positive relationship with transitioning engineers and project managers who are viewed as
valuable potential talent for winning future project bids.”
Talent Relationship Management
Retaining employees is a key business imperative. Treating
transitioning employees with respect and dignity sends a message to employees that
regardless of the reason for departure, every employee is valued. |
The growth of the contingency workforce, the talent war, and the realities of the
increasingly project- driven and global economy, have made outplacement and talent
transition an essential service in progressive and successful corporations that value
talent management. In fact, similar to customer relationship management, the best practice
organizations are developing a talent relationship management process that elevates
candidates, employees, and alumni to the valued status of internal customers!
An excellent example of this customer - centered philosophy is demonstrated in Ernst
& Young’s innovative alumni relationship program. Sharon Kirchoff, Director
Alumni Relations Gulf Coast Area, shares: “Ernst & Young highly values its
transitioned employees or ‘boomerangs.’ We recognize that in today' s
competitive job environment maintaining communication with our alumni gives us a
competitive advantage. These relationships support both our recruiting and business
development efforts. Our formal alumni relationship program includes online and live
career and networking resources, which facilitates an ongoing dialog. It is not only
popular with our alumni, we believe this initiative also reinforces our overall talent
management philosophy that places a high value on each employee and ultimately improves
retention."
Another unique way companies are improving the management of talent is necessitated by
the impact of out-sourcing, off-shoring, restructuring and mergers - it is through
strategic redeployment. Tom Durkin, U.S. Regional Human Resources Leader with Shell IT
International observed, “Assessing the competencies of employees whose positions are
affected by restructuring, evaluating needs in other divisions and departments for those
competencies, and assisting employees in finding appropriate internal opportunities,
enables Shell Oil to increase retention, reduce transition costs and improve talent
management and career development. Redeployment is a real win-win talent management
strategy for the company and employees.” (See the accompanying case study.)
Another aspect of talent transition is “retirement” planning. The percentage
of workers over age 50 is significantly growing as the baby boomer generation ages,
greatly impacting the workforce in which 1 in 3 workers are already over 50. A shortage of
talent looms for many industries and will be particularly critical for the health care
industry as service demand increases along with our graying population. Many industries
such as manufacturing, energy, and engineering and construction are already experiencing a
rapidly aging workforce as younger employees select careers in the newer high tech and
service industries. Progressive organizations realize that retiring employees are a pool
of talent that must be accommodated in unique ways to keep them engaged and to retain
their valuable expertise. Retirement / life change / financial planning / career planning
are all topics that should be offered to employees approaching retirement age.
Retention - A Key ROI
Ultimately, effective talent transition delivers a high ROI
through increased retention, reduced recruiting costs and even improved candidate and
employee quality. |
Two generations ago worker loyalty was garnered by simple exchange for a paycheck.
However, in the last 30 years, the equation has changed with the advent of technology,
complex financial restructurings, outsourcing, growth of the contingency workforce and
globalization. These changes are dramatically redefining the workplace loyalty equation.
Many prognosticators declared that these changes made loyalty in the workplace irrelevant
or at the very least unachievable. Instead, the loyalty equation has become more important
than ever to organizational survival and growth. Now far more complex, gaining worker
loyalty requires an understanding of the needs of a dynamic and diverse workforce.
Research has shown that retention - or in other words, worker loyalty - depends
primarily on how employees are treated by supervisors and on availability of career
development opportunities. As workers transition from an organization their treatment is a
very visible factor and will either increase or decrease trust and loyalty by remaining
employees. How they were treated in the transition will also influence how the departing
employee views and talks about the organization in the future.
It has been said in customer relationships that it takes 10 positives to overcome one
negative. Bob Parkey, President and CEO of international plastics manufacturer ICO, Inc.
said, "In talent transition, you have just one chance to get it right. There is
nothing a company can do to right a poorly handled transition in the eyes of the departing
executive or employee." If there are legal actions, the cost can be staggering. And
there is additional risk exposure as a result of the new discrimination rules. For
remaining employees who keenly observe their co-workers and colleagues departing, the cost
to regain damaged trust from a poorly handled transition is immeasurably greater than the
cost of a professional transition program.
Retaining employees is a key business imperative and treating transitioning employees
with respect and dignity sends a message to them and remaining employees that regardless
of the reason for departure, every employee is valued. Whether the job market is hot or
not, the need to provide a professional transition process and to maintain positive
relationships with transitioning talent - internally and externally --does not change.
Indeed, alumni may be your best source for the next top candidate by referral or direct
hire. Treat them like they are a prime customer whose product or service needs have
shifted, and you will reap the reward in future returns on positive talent relations.
Ultimately, effective talent transition delivers a high ROI through increased
retention, reduced recruiting costs and even improved candidate and employee quality. If
your organization views outplacement as an unnecessary cost, it is time to re-arm yourself
for the talent war by redefining your talent transition process before your competitors
win the war for top talent.
By Sheryl Dawson, CEO
Dawson Consulting Group
See also the article Redeployment:
Shell's Initiative to Optimize Restructuring - A Case Study |
Outplacement Redefined