OK, since this blog fell the day after the holiday, I can still use this…

Q:  What’s Irish and sits out all winter?

A:  Paddy O’Furniture!

I know.  that is just too funny.  Especially first thing in the morning.

Anyways…

The End of Retention Bonuses?

Well, somebody in the P.R. department of AIG, a taxpayer-owned business, needs to do some “splainin’” as Ricky Ricardo would say.  Receiving one-hundred and sixty billion plus in taxpayer funds and then turning around and providing one-hundred and sixty million dollars in retention bonuses is a gutsy move, to say the least.

Worse, these bonuses seem to be going to some of the same employees who helped the company implode (pre-bailout) and nearly a dozen are scheduled to go to people who aren’t employees anymore.

There has always been a basic business assumption about bonuses:   the employees who most deserved them were the employees most likely to receive them.  The “80-20″ rule in practice.

But the financial services companies have seemingly turned this rule on its head.  Bonuses were given because they were promised before the company could judge the performance of the individual employees.  Retention was the ultimate behavior that companies were paying for, without regard to how well the employees conducted themselves in their job.

And that is the disconnect.

That is why you can’t pay for retention with a compensation and benefits package.  Although the employees won’t leave (due to golden handcuffs), you also negate any incentive for them to work hard, to go above the call of duty, to act ethically, and to have their customer’s best interest at heart.

Employees stay with a company because they are engaged.

EQAB-NAC

Peter Barron Stark is the author of the just released book “Engaged: How Leaders Build Organizations Where Employees Love to Come to Work.” Some quotes from a recent interview include:

“A lot of people make the mistake of telling their staff everything is going to be OK.”

“Sell people on the problems, not the solutions.” Tell employees that there are going to be a ton of problems as we move forward, but if any team can figure them out and be the most successful one in the industry, this team can.”

“About 70 percent of employee satisfaction is in direct relation to the relationship they have with their immediate boss,” he says.

One more time, Employees Quit A Boss - Not A Company.

The New And Not So Silent Majority

One of the surprising effects of the economic downturn and the rise in unemployment is the fact that women will soon be the majority of the workforce.  Now just under 50% of the total US workforce, the number will rise due to additional layoffs forecast in traditionally male industries like manufacturing and construction.

So, what are the differences in how men and women view their employer in terms of workforce engagement?  According to the 2008-2009 Employee Hold’em National Benchmark

• Female workers are more “trapped” in their job, and less “unengaged” than men.  However 42% of both groups are “Fully Engaged”
• Women have a stronger “Affective Commitment” then men do, and are significantly more likely to feel a strong sense of belonging to their organization
• Women are significantly more likely to be highly motivated to work hard and have a strong desire to go the extra mile for customers
• They are also more likely to be satisfied in their job and have a good relationship with their immediate supervisor

In terms of the “drivers of workforce engagement”, the four most important factors remain the same, no matter the employee’s gender:  Daily Satisfaction, Ethics/Diversity/Safety, and Reputation Management, and Rewards & Recognition.  However women rate Organizational Orientation and Opportunities for Advancement as more critical than men.

The next couple years will be challenging for employees and their employers.  Changing social values and workforce demographics will continue to shape and reshape work.  And just like the rise in the number of working women impacted work-life balance, the impact of these changes will be far reaching.

Good.