The Decision Maker's Definitive Guide to Employee Engagement & Retention

THE DECISION MAKERS’

DEFINITIVE

GUIDE TO

EMPLOYEE

ENGAGEMENT & RETENTION

TABLE OF CONTENTS You play a critical role in crafting and implementing strategies to attract and retain the talent necessary to drive your company forward.

This guide provides strategies for positioning your company as an employer of choice.

Some strategies may take executive-level or special financial approval, but others can be implemented immediately—each will help you excel.

INTRODUCTION Page 2

MONEY Page 6

TRAINING Page 10

INCLUSION & SOCIAL CONNECTIONS

COMMUNICATION & LEADERSHIP Page 18

Page 14

Data recently published by Gallup, Inc. show

3 10

U.S. workers are only out of ENGAGED, meaning the rest are not putting energy into their jobs, are indifferent about work, and show up just to put in their hours.

16%

Furthermore, of all workers are ACTIVELY DISENGAGED, meaning they are out to do damage to their employers.

1

INTRODUCTION You may be wondering what we’ve learned when it comes to building a workforce full of engaged employees. If so, you’re in luck because we’ve cultivated a list of reasons—backed by a little math and a little psychology—on what works and how to implement positive change in your organization.

Given today’s employment landscape—recruiting and retention are tough—it’s time to include strategies that meet more than just the basic needs of your employees. It’s likely obvious that you’ll struggle to keep employees if you can’t meet basic needs. To stick around for a long time, employees must reach a state of workplace harmony, a delicate balance of the great, the good, and the tolerable—because, of course, nothing in life is perfect. Workplace harmony is the product of an environment that pushes employees to their best while simultaneously meeting personal needs and strengthening connections to the company and its mission.

WORKPLACE HARMONY DRIVES RETENTION.

2

WHAT WORKS? A LITTLE MATH

If you’ve read just one or two of our white papers or research reports, you know we are overt proponents of the Net Promoter SystemSM (NPS®) and its employee-centric spinoff, the employee Net Promoter System (eNPS). NPS is a simple method to gather basic intelligence and gauge engagement, and we employ it in almost every satisfaction-related survey we conduct. (To understand NPS methodology, go to page 22.)

We analyzed NPS scores and verbal responses from two data sets: four years of data taken from our internal, all-employee survey and comments captured by our Associate Engagement team during personal interviews with more than 11,000 associates at 150 client companies. We isolated seven factors that have the greatest impact on work harmony:

1 2 3 4 5 6 7

. SAFETY AS A TOP PRIORITY OF THE COMPANY . OPPORTUNITIES FOR ADVANCEMENT . CONFIDENCE IN THE EXECUTIVE LEADERSHIP OF THE COMPANY

. FEELINGS OF VALUE AND SHARED GOALS . COMMUNICATION . TRAINING

. TREATMENT AND INCLUSION

A LITTLE PSYCHOLOGY

Are you surprised by the factors that hold the greatest influence over workplace harmony?

Perhaps you’re looking at this and wondering why basic factors such as pay are not highly correlated with work harmony. It’s an interesting question and one that is easily answered by studying Abraham Maslow’s Hierarchy of Needs and adapting it to the workplace. Maslow’s famous research from the 1940s contends that people are motivated to reach a state of “selfactualization” (the top level of the pyramid, or, in our case, “workplace harmony”), but they can only reach that state by fulfilling the needs in the lowest levels of the pyramid in succession first.

Net Promoter® and NPS® are registered trademarks and Net Promoter SystemSM and Net Promoter ScoreSM are trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc. 3

SELF ACTUALIZATION ESTEEM SOCIAL

Workplace Harmony

Opportunities for Advancement, Training, Confidence in Leadership, Safety as Priority of the Company*, Feelings of Value and Shared Goals Communication, Treatment, and Inclusion

SAFE WORK ENVIRONMENT SALARY OR WAGES * Safety as a priority of the company refers to the way our internal employees feel about the emphasis Elwood Staffing places on putting associates into safe work environments. As such, this represents a feeling of pride or esteem relating to the social implications of their jobs, not the safety of their immediate environment (which would be indicated in level 2 of the pyramid).

In the context of the workplace, basic needs—like receiving adequate wages—can be met by almost any employer. Once an employee fulfills his basic needs, he seeks to fulfill the next levels in the pyramid; as each need is met, he aims higher, always striving to reach “workplace harmony.” So, it only makes sense that the needs at the top of the pyramid have the greatest influence on a worker’s state of being because they are unique to each employee and therefore the hardest for just any employer to fulfill. An employer that allows an employee to reach the highest level of the pyramid is hard to replace.

4

Understanding what drives engagement and retention is only half the battle. To help you make an impact in your facility, we’ve divided the book into FOUR main categories to address the seven factors (and more) and filled each with tips and tricks:

MONEY, TRAINING, INCLUSION & SOCIAL CONNECTIONS, and COMMUNICATION & LEADERSHIP.

HOW TO

Read on for ideas on use this insight to make an impact in your facility.

5

MONEY As the foundation of the employment pyramid—and the critical first step in one’s journey to achieve workplace harmony—Elwood spends a lot of time thinking about money. We know a few things to be true: ·

·

MONEY MOTIVATES:

Each week, our Applicant Sentiment Index™ survey collects data

from more than 2,000 job seekers across the nation about their feelings toward their local job markets and their willingness to commute. About 60% of job seekers say they will only commute up to 30 minutes—that is, unless they believe higher wages exist further away.

Applicants who believe higher wages exist more than 40 minutes away are nearly twice as likely to make the lengthy commute as those who think wages are better or equal close to home. This is important because—in today’s market where jobs are plentiful close to home— money is the only single factor we’ve identified that is strong enough to make a worker commute further distances.

MONEY BEGETS HAPPINESS:

According to a national study1, there’s a correlation between

income and emotional well-being and life evaluation—the intensity with which a person experiences individual daily emotions and the general feelings that person has about his or her life. The study concludes that “happiness” factors plummet at lower income levels (household income < $75,000 per year), which leads to increased stress, increased anger, emotional misery, and diminishing levels of excitement about the weekend—hardly the traits of a workforce that will stick around.

Here are tips and tricks to make your company an attractive employer:

OFFER STARTING PAY AT THE 50TH PERCENTILE OR ABOVE

We strongly suggest you offer starting pay at the 50th percentile or above when compared to other local, available employment opportunities that have similar skill requirements. At minimum, you will only be competing on wages with half of the other available opportunities in town.

When it comes to selecting a competitive rate at or above your local 50th percentile, we recommend a couple resources: Dollars and Sense, Elwood’s annual starting wages and benefits guide, and the Bureau of Labor Statistics (BLS). Our wages and benefits guide focuses on starting offerings in popular manufacturing, distribution, and general administrative positions across the nation to help employers like you select a competitive pay rate at or above your local 50th percentile. The Bureau of Labor Statistics (BLS) can also aid you in establishing competitive pay rates. While incredibly detailed and geo-specific, it is important to note that many sources, like the BLS, report average wages offered in job categories; because they include wages paid to very tenured workers, the reported wages are typically higher than we think our clients need to pay to starting workers. For this reason, our survey results may be a better starting point.

1. Kahneman, Daniel, and Angus Deaton.“High Income Improves Evaluation of Life but Not Emotional Well-being.” Proceedings of the National Academy of Sciences of the United States of America 107.38 (2010): n. pag. High Income Improves Evaluation of Life but Not Emotional Well-being. Proceedings of the National Academy of Sciences of the United States of America, 4 Aug. 2010. Web. 26 Dec. 2014.

6

MONEY

READ OUR STARTING WAGES & BENEFITS GUIDE Published annually, Dollars and Sense, our starting wages and benefits guide based on survey responses from more than 1,200 employers across the nation, reports on starting wages and benefits for workers in small and large companies operating in the manufacturing, logistics & distribution, and other industries. In the report, you will find information about:

· Starting Wage Ranges · Shift Differentials · Raises & Bonuses · Career Progression Programs & Other Perks · Health, Retirement, & Ancillary Benefits · Year-Over-Year Trends by Industry · White Papers Access the report at www.elwoodstaffing.com/brc

7

MONEY IMPLEMENT PAY PROGRESSION

Whether you are the highest paying employer in town or not, your employees will expect wage increases; if they don’t receive them, they’ll leave you. We see it happen all the time as we read resumes from job seekers. Among other things, employees perceive wage raises as validation they are valued team members.

We suggest offering at least three raises at minimum equal to one single annual raise—raises at the 30-, 60-, 90-, 180-, and/or 365-day marks. The anticipation of increased wages every few months is more likely to keep employees around than a single annual raise. Doing so will also put you at an advantage over other employers, based on employer data reported in our starting wages and benefits guide. While it varies by geography and industry, we know nationally over 75% of employers fail to offer more than two raises in the first year.

RAISES: HOW MUCH IS ENOUGH?

We took to our database to determine if pay increases actually affect the length of time a worker stays with his or her employer, and, if so, how much the increases affect longevity. To do this, we analyzed the length of employment and the starting and ending wages for each position our job applicants reported on their applications.

Our data indicates it takes almost three years for above-average employers to experience the same amount of turnover below-average employers experience in the first six months alone.

This is extremely valuable information when you consider the trade-off in costs between raising wages and backfilling positions.

Employee Departures by Annualized Wage Increases (Sum of Losses Every 6 Months)

TOTAL PERCENT DEPARTED

100%

80%

60%

40%

20%

0

MONTHS

1-6

1-12

1-18

1-24

ANNUALIZED WAGE INCREASES <1% annualized raise 4-7% annualized raise

8

1-30

1-36

MONEY

IMPLEMENT A BONUS PROGRAM

Mentally and financially, the impact of a sustained increase (or set of expected increases) plateaus over time. Implementing a bonus program is one way to combat this complacency and keep your employees motivated and engaged. If we can offer one piece of advice, it is to tie your bonuses to important business metrics. Offer bonuses that incent workers to meet the goals that drive your business forward. In doing so, you’ll only pay out for success—and who wants to pay for anything less?

These programs could include: ·P roduction Bonus ·S afety Bonus ·T eam Performance Bonus

Data in our starting wages and benefits guide show

55% of employers offer some sort of bonus to first-year workers.

Of those, the majority offer one of the following: HOLIDAY BONUS, COMPANY PERFORMANCE BONUS, or ATTENDANCE BONUS. Company performance is often a nebulous concept to line workers, and neither attendance nor increased holiday pay will have marked effects on your bottom line. Break out of the box, and tie your bonus(es) to the metrics that drive your business forward.

SUPPORTING RESOURCES at www.elwoodstaffing.com/brc White Papers ·B ecoming An Employer Of Choice ·C an You Afford To Pay Minimum Wage?

Reports and Guides ·D ollars and Sense Starting Wages and Benefits Guide

9

TRAINING Should you start a school? Hire a trainer? What does training really mean, and how will it help you? Training an employee to perform his or her primary job is imperative, but so is offering programs to help that employee advance his or her career. Associates continually cite training as both a stay factor and quit reason, so let’s explore this further in the context of today’s job market. We know a few things to be true: ·

·

·

WORKERS WITHOUT HSD/GED GET EXTRA VALUE FROM TRAINING:

While the general

population nears full employment and open jobs outnumber available workers, job seekers without a HSD/GED face a very different reality: one with unemployment rates nearly twice as high as their more-educated counterparts and one with fewer quality job openings. These workers are ripe for the picking and have reason to appreciate additional training and the opportunity to gain new skills.

PEOPLE DESIRE TRAINING:

A recent survey conducted by Deloitte Consulting shows 83%

of millennial employees who plan to stick around for more than five years feel satisfied with their employer’s commitment to professional development, versus only 58% of employees who plan to quit within the next two years1—indicating professional development is important for longevity.

JOB QUALITY MOTIVATES WORKER BEHAVIOR:

Using data from the same survey explained

in the Money section, we found that applicants who perceive higher quality employment exists more than 40 minutes away are far more likely to make the lengthy commute as those who think opportunities are better or equal close to home. Working associates continually tell us access to training is one way they evaluate the quality of a job.

1. Millennial Survey 2016 | Deloitte | Social Impact, Innovation.” Deloitte. N.p., n.d. Web. 17 Mar. 2016.

10

TRAINING

Here are tips and tricks to make your company an attractive employer:

ENSURE NEW HIRE BASIC TRAINING RESOURCES ARE ADEQUATE

Working associates at 61% of our client facilities rate training as an influence on whether or not they are happy with their current job. Follow-up comments reveal employees evaluate training in three main ways: job preparedness, training consistency among trainers, and teaching quality of trainers. Based on these comments, we suggest the following: ·C reate a standard training video, guide, or manual for each job function. ·S elect trainers based on skill mastery and teaching ability, not one or the other or seniority. ·A ssign specific trainers to specific areas. ·T rain your trainers.

Tap us for help, if you need it. We have a team dedicated to learning and development, and we can provide “Train the Trainer” education sessions or eLearning modules for your supervisory staff and/or line workers.

11

TRAINING

IMPLEMENT FORMAL TRAINING/CAREER PROGRESSION PROGRAMS

100

80

60

One requirement we frequently encounter in our light-industrial business is that of education— specifically, the requirement to have a high school diploma or its equivalent. We explored our database to determine if attainment of higher levels of education correlated to higher rates of successful assignment completions—“success” being defined as either being hired permanently by our client or reaching the completion date on a temporary assignment. In other words, we looked to see whether hiring someone with a high school diploma guaranteed greater performance and loyalty over someone without. What we found is the absence of a high school diploma, its equivalent, or any level of post-secondary education did not correlate to weaker job performance.

Consider lowering education requirements and offering up-training or cross-training EDUCATION LEVEL AND ASSIGNMENT END REASONS opportunities—thus attracting a quality pool of workers who are 24.8% likely to stick around 28.1% because they see real opportunity for advancement within your organization.

27.8%

33.6%

40

20

0

47.4%

38.3% At least HSD/GED

No diploma or degree indicated Successful

12

Quit

Terminated

% OF COMPANIES THAT OFFER CAREER PROGRESSION OPPORTUNITIES IN FIRST YEAR

17%

45%

58%

CLERICAL

MANUFACTURING

LOGISTICS & DISTRIBUTION

Now, if you aren’t convinced and still need another reason to consider improving or adding formal training or career progression programs, think about this: Our recent starting wages and benefits guide shows less than half of employers offer career progression opportunities.

By offering a program rivaled by few others, you’ll certainly stand out in the marketplace—and, employees will be more likely to stick with you if they can gain skills they won’t gain elsewhere.

Your programs could include: ·C ross-training workers so they build up multiple skill sets and can easily move between departments as your production cycles demand. ·U p-training workers so they advance their careers and have the exact skills you need. ·P roviding access to skilled trades training programs, an area of high demand and low supply (welding, forklift driving, plumbing, etc.). ·S ponsoring industry certifications (PHR, SPHR, etc.).

SUPPORTING RESOURCES at www.elwoodstaffing.com/brc White Papers ·C losing the Skills Gap ·O ne School of Thought: Education Requirements and Hiring

Reports and Guides ·D ollars and Sense Starting Wages and Benefits Guide ·9 Simple Ways to Keep Your Employees Happy on the Job: The Supervisors’ Guide to Employee Engagement & Retention

13

INCLUSION & SOCIAL CONNECTIONS There are obvious, quantifiable traits job seekers consider when evaluating a new position: the commute, the pay, the job description, the benefits, and the hours. It’s relatively easy to compare the attributes of each potential position and accept or reject a job because it just makes sense to do so. That’s because the head, or practicality, attracts people to jobs and impacts their behavior within the first few weeks on the job. But, long-term retention hinges on the heart.

How do we know? We’ve interviewed thousands of associates and mined our database to get a closer look at all voluntary turnover, and we know a few things to be true:

OVER TIME, QUITS FOR EMOTIONAL REASONS EXCEED QUITS FOR PRACTICAL ONES:

FIGURE 1 Percent of All Voluntary Departures

·

Voluntary Departures by Reason

25% 20%

We pulled one year of turnover 15% data and compared quits 10% for practical reasons (like commute distance and 5% shift hours) against quits due to emotional factors 0% (like not feeling respected 1 2 3 4 5 6 7 8 9 10 Months Worked at Time of Departure and lack of advancement opportunities), and what Practical Emotional we found is, over time, the emotional factors exceed the logical ones.

This means the longer employees stay with your company, the greater the need for the things that keep them happy and engaged and foster a sense of affection (Sound familiar?

Remember Maslow’s Hierarchy of Needs!?).

·

14

PEOPLE JUST WANT TO BE IN THE LOOP:

In over 6,300 interviews, at least one-fifth of

interviewed associates in over half of our facilities cited communication (72%) and inclusion (57%) as stay/quit factors.

11

12

Here are tips and tricks to make your company an attractive employer:

FOCUS ON INCLUSION

Your goal is to achieve a work environment in which all individuals are treated fairly and respectfully, have equal access to opportunities and resources, and can contribute fully to your organization’s success. As much as possible, you must avoid any practice that creates disparity between sets of employees. After all, everyone works together to make the same products and serve the same customers. · Provide equal benefits, such as holiday pay, paid time off, and/or shutdown pay to all employees regardless of tenure, position, or permanent/ contingent status. · Design employee perks such as cookouts, family days, and bonuses so that all employees can participate. · Train and hold accountable supervisors, managers, and executives to treat all employees with high regard and address each by name. · Invite all employees to meetings, when practical. · Distribute information through multiple channels, such as shift meetings, bulletin boards, email, video, and mailings. · Empower line supervisors to share information with team members in their own style.

15

INCLUSION & SOCIAL CONNECTIONS

BUILD SOCIAL CONNECTIONS

Applicants who have friends or acquaintances at a particular employer are more likely to seek work there and, once hired, stick around.

The greatest percentage of our applicants— over 30%—come to us as referrals from thousands of working associates, a trend on par with other employers. This indicates relationships are just as important to current employees as they are to the job seekers they refer. · Provide nametags so employees can learn and address each other by name. · Implement an attractive referral bonus program and promote it heavily. · Consider establishing social clubs to forge relationships between like-minded workers. · Get creative: Mix things up by inviting employees to small focus groups, round tables, or mini-socials based on arbitrary factors such as birth month or favorite ice cream instead of department or team affiliation.

16

EMPOWER YOUR FRONT-LINE SUPERVISORS 9 Simple Ways To Keep Employees Happy On The Job: The Supervisors’ Guide to Employee Engagement and Retention is a complementary pocket guide for supervisors that provides engagement and retention strategies—with a strong focus on inclusion and social connections— that any supervisor can implement without upper management or budget committee approval.

The story book covers the following topics:

9TOSIMPLE WAYS KEEP YOUR EMPLOYEES ON THE JOB THE SUPERVISORS’ GUIDE TO IMPROVING EMPLOYEE ENGAGEMENT & RETENTION

SO WHEN DOES EMPLOY ENGAGEMENT ACTUALLYEEBEGIN? LET’S FIND OUT. Meet MIKE and

· Introductions & First Impressions · Orientations · Team Introductions · Training · Performance Feedback · Communication · Creating Buy-In · Developing Mentors · Outlining Growth Opportunities View the e-book at www.elwoodstaffing.com/brc or contact our learning and development team at elwood.academy@elwoodstaffing.com for printed copies.

Meet MARY and supervisors at JAMES, two ABC. Both have with the compa been ny for five years. will be manag Mary ing Mike, and James will be managing Betty.

BETTY.

Both have a strong work ethic, eager to learn, are and have the same set of skills. Both are excited to begin their assignments at ABC Compa ny (ABC) through Elwood Staffing.

Let’s see what happens to Mike Betty’s ENGAG and EMENT LEVEL they have two S different employ as experiences while on assignm ment ABC. Looking ent at at the gauge below, both employees start out focused optimistic—wit h room to flourish and .

NS CTIONS ODUCTIO INTRODU TEAM INTR STRATEGY #3 TEAM DISENGAGED

Mike forMike waitingfor Maryisiswaiting ends,Mary orientationnends, theorientatio any Afterthe After hasany hehas Mikeififhe asksMike Sheasks door.She thedoor. they Asthey outsidethe outside minutes.As fewminutes. foraafew chatfor theychat andthey s,and questions, question employeess multipleemployee on,multiple workstation, Mike’sworkstati toMike’s walkto walk obvious It’sobvious Mary.It’s high-fiveMary. orhigh-five ator waveat and towave rsand stopto stop co-workers co-worke her her with with rapport rs greatrapport hasgreat co-workers Maryhas Mary hisco-worke tohis Miketo introducessMike Maryintroduce s.Mary in Mikein Mike employees. employee help help can can person eachperson howeach outhow pointsout andpoints and

ENGAGED

50% 50% 3

role. newrole. hisnew his

IMPACTT IMPAC

he begins,he trainingbegins, oncetraining thatonce confidenttthat he feelsconfiden shouldhe Mikefeels Mike himshould forhim readyfor systemready supportsystem haveaasupport friends. willhave will newfriends. makingnew heisismaking likehe feelslike Mikefeels it.Mike needit. need 45 for45 roomfor orientationnroom emptyorientatio theempty inthe waitsin for Bettywaits Betty lookfor golook togo decidesto eventuallyydecides andeventuall finds minutesand minutes finallyfinds shefinally around,she wanderinggaround, Afterwanderin James James.After James. next.James donext. shoulddo sheshould whatshe askswhat andasks started Jamesand youstarted James getyou “Let’sget says,“Let’s andsays, watchand hiswatch athis looksat looks line.” theline.” onthe on

IMPACTT IMPAC

andisis ityand insensitivity James’insensitiv byJames’ offby putoff feelsput ents.

Bettyfeels Betty commitments. anycommitm keepany willkeep hewill told, confidentthe sheisistold, lessconfiden less whatshe trustwhat cantrust shecan sureshe longersure nolonger introducedd She’sno She’s beenintroduce evenbeen hasn’teven shehasn’t realizesshe sherealizes Sheisis andshe and her.She helpher. couldhelp whocould teammateewho singleteammat toaasingle to frustrated.. andfrustrated lonelyand lonely

ENGAGED ENGAGED

ED DISENGAGED DISENGAG

best thebest loyalty,the loyalty,

tional AWAY organizational toorganiza TAKEAWAY attentionto THE TAKE THE another. significanttattention oneanother. paysignifican towardone oftenpay sstoward ssoften

65% 35%

employee companie amongemployee Whilecompanie or ··While existsamong leaveor toleave alsoexists loyaltyalso whetherto examinewhether recognizeloyalty theyexamine whenthey employerssrecognize employer quality thequality moments””when thatthe “leavingmoments observethat have“leaving worldobserve theworld inthe employeesshave Allemployee All managerssin bestmanager employee Thebest ofemployee ntof tion.The component organization. anorganiza atan criticalcompone stayat stay ipsisisaacritical relationships Work.”” employees’s’relationsh atWork. ofemployee depthof Friendat anddepth and BestFriend HaveaaBest 10:IIHave “Item10: Inc.“Item -Gallup,Inc. loyalty.-Gallup, loyalty.

99

88

STRATEGY #5 PE PERF RFOR OR

Whe WhennMike Mikemak makes aadaily esaamist dailyprod mistake productio akeor uctionngoa orfails wha failsto whatthe goal,l,Jule tomee hedid mee Julesscalm didinco incorrec calmlylyexpl tt to toimp rrectly improve tly andshow explains rove..She showsshim ains Sheisisalso and for foraajob himhow alsoquic jobwell how quickkto welldon toprai done. praise freq frequen e.Jule seMike Julessche uently Mike tlyto checks tomak cksin makeesure nee needs inwith withMike surehe dsto tobe Mike hehas besucc hasever successf everythin like likepart essful ythingghe partof uland andto ofthe he theteam toens ensure team.. urehe hefeels feels

MA MANC NCEE FE FEED EDBA BACK CK

IM IMPA PACT CT

12 12

Mike Mikeknow knowssexac exactly how howhe tlywha whattisis hecan canach expe expected achieve eas ievehis ctedof ease. e.He hisgoa ofhim Heapp himand goals, apprecia ls,so and reciates sohis tran transpa hismin testhe sparenc minddisis thecon rencyyhe constan at at stanttfeed herece He Hefeels receives feedback feelscom ivesfrom backand comforta fromboth and fortable bothJule effo effortrtabo bleaski Julessand asking above ngque andMar veand question andbeyo Mary.y. wan stions. wants beyond tsMar s.Mike ndthe Maryyand Mikeputs themin putsforth andJule minimu they imum theywill Jule forth mrequ ssto willackn required tobe acknowle beprou ired..He prouddof owledge He dgeaajob ofhim himand jobwell andknow welldon know done. ss e.

Whe WhennBett Bettyyhas hasaaque reac reachhout question stion,,she outto. to.Ned sheisisnot Nedisn’t see seessJam isn’talwa notcert James. alwa cert ain es.Whe ys ainwho ysavai Whennshe available whoto her herfeel lable,,and to sheasks feelstup andBett asksNed stupid.

Bettyyrare id.ItItgets Nedaaque wor workers getsso rarelyly question kersfor sobad stion,,Ned forhelp badthat help..Her Ned mak thatBett cut cuthe Herco-w Bettyyasks hesays co-worke es es sayswor asks one mak orkerrshow works showssher one ksbett the thesho of ofher better. hercoshort-cu er.Whe heraaproc cort-cut,t,he WhennNed process hetells Nedsee doin doinggitit esssho tellsJam seessBett shortJames. that thatway rtBettyyperf es.Jam wayand James perform him himwith andtells esasks orming asksBett withque tellsher ing question Bettyywhy hershe stions. shesho whyshe s. should she uldonly isis onlycom comeeto IM IMPA toNed PACT Nedor CT or Bett Bettyyfeels feelscon confuse fuseddand thin things. gs.Bett andlike Bettyyfeels likether feelssing ther only onlysee e e singled isisno seems nocon ledout consiste msto outby sistentway totalk byNed talkto abo about Nedand toher wayto utlear herwhe and frus nt learning todo whennther do ningthe thereeisis isisfrus trate thejob trateddthat Bett Bettyystar jobanym thatJam starts aaprob anymore; problem tslook James ore;she looking lem..She es sheisisjust ingfor Shedoe forano doe just another sn’t sn’t doin therjob. doinggeno care care job. enough ughto toget getby. by.

DISE DISENGA NGAGED GED

TH THEE TA TA

ENG ENGAGE AGEDD

75% 25%

KE KEAW ··Prov AWAY Providing AY idingcon constru structive esp especia ctivefeed ecially feedback llyto tomille backor millennia 202 orprai 2025. nnialslswho praise 5.Che Checkin sein whowill inthe ckinggin themom willmak moment you inwith youto makeeup withemp entisisincre toune upas unearth employe asmuc incredibly arthcon loyees muchhas diblyimp conflicts eson onaaregu as75% flicts,,con importa 75%of regular ortant, concern ofthe nt, larbas cerns, thewor ··Peo basisisisis People s,and workfor andidea pleleav kforce also alsoben ideassin leaveeman ceby by benefici inaatime manage eficial, stud study,y,50% timelylyman agers, al,allow rs,not allowing 50%of manner. notcom ing ofadu ner. compan adults over overall panies. ltsleft ies.In alllife leftthei lifeat Infact, theirrjob fact,acco atsom job someepoin accordin to toget getawa pointtin rdinggto awayyfrom inthei toaarece theirrcare fromthei recent career. theirrman ntGall er.

Gall manage up up agerrto toimp improve rovethei theirr

13 13

SUPPORTING RESOURCES at www.elwoodstaffing.com/brc White Papers ·C losing the Skills Gap ·T he Seven Wonders of the Workplace: Climbing Maslow’s Pyramid ·R elationship Status: It’s (Not) Complicated ·A Ticking Time-Bomb No More: How Executive-Sponsored Mentorships Can Help Your Company ·E mployee Engagement: The Antidote to Turnover ·T he Head and The Heart Reports and Guides ·9 Simple Ways to Keep Your Employees Happy on the Job: The Supervisors’ Guide to Employee Engagement & Retention

17

COMMUNICATION & LEADERSHIP Both current and prospective employees want to know the company they’re working for is in good hands—that the people at the helm not only have a good handle on the organization’s mission, culture, and overall direction but that they value their employees and fight to be an employer of choice. While a safe work floor is important, it’s equally important to job seekers that the products they produce aren’t knowingly putting others, or the environment, in harm’s way. Even more so, these same job seekers want to know the companies and leaders they work for are guided by that same moral compass, as most people aren’t willing to dirty their hands for a paycheck.

We know a few things to be true: ·

·

LEADERS ARE EVERYWHERE, NOT JUST YOUR BOARDROOM:

The adage, “People don’t leave companies, they leave managers,” is absolutely true. Our data shows poor leadership has an increasing effect on turnover as time passes, and associates continually indicate leadership quality as a stay or quit factor during interviews.

WORKERS VALUE BEING VALUED:

Your organization demonstrates how it values employees in many ways; two of the most notable are the ways in which it facilitates two-way communication and its dedication to continuous improvement.

If your organization isn’t taking strides to stand out among the competition, it risks being seen as an average employer in a sea of companies that have made it a top priority to be known as a premier employer. The effects of being average have the ability to weigh heavily on your organization’s recruiting and retention strategies.

18

COMMUNICATION & LEADERSHIP Here are tips and tricks to make your company an attractive employer:

EMPOWER EVERYONE

Supervisors are the leaders that play the most critical role in the engagement level of each individual team and team member, and higher levels of engagement correlate to reductions in turnover. And when the potential for losing good people is on the line, you want to make sure your company is doing everything possible to retain them. Empower your supervisors by providing them with the necessary tips, tricks, and training to effectively manage a team, and then give them the freedom to lead in their own style. As a starting point, look no further than our book, 9 Simple Ways To Keep Employees Happy On The Job: The Supervisors’ Guide to Employee Engagement and Retention (Details on page 17).

EMBRACE TRANSPARENCY

Transparency is key to a cohesive relationship between leaders and employees. Fostering a workplace environment (and, ultimately, a workplace culture) that is anything but transparent leaves employees feeling left out, not only when it comes to the company’s health, but also in terms of one’s value and purpose within the organization. · I nvolve executive or upper-level leadership in production meetings, and ensure leaders are delivering detailed messages not platitudes. ·C reate defined channels of communication from executives down to line workers—and from line workers up to executives—and use them. ·H and out agendas for supervisors to use in team meetings; this ensures every supervisor understands what to communicate with workers and reduces restricted flows of information. ·S hare information with workers before you share it with media outlets.

STOP!

Every time a memo crosses your desk with employmentrelated information, stop and assess the number of times the information has been formally shared with workers. Chances are, you’ll be surprised by the amount of information you could be or should be sharing that simply gets overlooked.

Don’t assume people are informed or content with silence.

19

COMMUNICATION & LEADERSHIP LISTEN TO CONCERNS

Contract with an outside vendor to offer employees access to an anonymous ethics or fraud reporting hotline. This gives both new and existing employees an equal voice and ensures reports reach the appropriate departments and don’t get buried or brushed aside.

STRIVE TO BE AN EMPLOYER OF CHOICE (and don’t stop once you get there)

As a general comment, being an attractive place to work absolutely means being aware of what others are doing; but, at the end of the day, success comes to those who have the most compelling opportunity. And the best opportunity doesn’t always mean “one-upping” competitors; it means finding out what workers want and offering those things. Take the time to turn a critical eye towards your attraction and retention strategies. Unique perks (especially perks that speak to better work-life balance) can be a major advantage for your company.

Executives, production planners, and plant management must make people a priority and consider their needs equal to those of business demands.

Unlike machines, workers have personal commitments, and failure to recognize this will always negatively impact morale and retention.

20

COMMUNICATION & LEADERSHIP ·

·

·

FLEX SCHEDULING:

Survey responses contained in our starting wages and benefits guide show only 30% of companies offer one or more of the following: a true flexible schedule, shift swaps, or self-scheduling, yet workers continually cite scheduling as a reason for rejecting a job opportunity or quitting a job.

UNPAID TIME OFF (SCHEDULED OR EMERGENCY):

We’ve all had slow mornings or

unexpected emergencies; yet, few of us accrue “points” for walking in a few minutes late or taking an unscheduled day. Consider a policy change: One client reduced turnover from 250% to 4% by eliminating penalties for absences, as long as the worker gave appropriate notice or found a substitute. Another unexpected benefit was a rise in referrals, which reduced former recruiting issues. Currently, 85% of new hires at the facility come as referrals from working employees.

CHILD CARE:

Despite the fact many American workers have family caregiving

responsibilities, employers continue to disregard this as an opportunity to attract workers and sometimes go so far as to view it as a line item in support of no-hire policies for family members—because family members often rely on one another to help care for children. In fact, less than 1% of our starting wages and benefits survey respondents say they offer inhouse or subsidized childcare. Opening an in-house daycare certainly doesn’t make sense for every company, but a few things do: - Forge partnerships with daycares or youth centers in town to lower costs or provide part-time or after-school care.

- Offer flexible spending programs.

- Implement school-friendly working hours.

SUPPORTING RESOURCES at www.elwoodstaffing.com/brc White Papers

· Relationship Status: It’s (Not) Complicated · Flexibility: The Art of Bending Without Breaking · Save the Millennials: Rethink the Review

Reports and Guides · 9 Simple Ways to Keep Your Employees Happy on the Job: The Supervisors’ Guide to Employee Engagement & Retention · Company and Talent Reports

21

RECAP MONEY

· I rrespective of any other benefits, money is the one single factor that will motivate workers to commute outside their local areas. ·H appiness factors plummet for families earning less than $75,000 per year.

To motivate workers and combat personal and professional discontent, companies should:

- Offer pay at the 50th percentile or higher.

- Implement pay progression to outpace cost of living increases.

- Offer bonuses that match your company’s unique business goals.

TRAINING

· Working associates continually cite training as both a stay factor and quit reason. ·R ecent study reveals millennials desire professional development from their employers. · Workers lacking higher levels of formal education are incented by on-the-job training.

To capitalize on the current environment, companies should:

- Standardize training programs and select trainers based on training ability, not seniority.

- Hire lesser-educated or lesser-skilled individuals and provide uptraining or cross-training opportunities.

- Provide access to skilled trades training programs or sponsor industry certifications to encourage growth and professional development.

22

RECAP

INCLUSION & SOCIAL CONNECTIONS

· As length of employment increases, quits for emotional reasons outweigh quits for practical ones. · I n interviews, employees continually cite inclusion and communication as stay factors. ·S ocial connections improve recruiting, engagement, and retention efforts.

To create an inclusive and welcoming environment, companies should:

- Focus efforts on sustaining or improving the employment experience as time passes.

- Offer identical job perks, pay, benefits, and access to information to both permanent and temporary employees.

- Build

social connections through referral programs or social clubs.

LEADERSHIP

·E mployees want to know they’re working for a company that and leaders who are guided by a similar moral compass. ·L eaders reside at all levels, not just in the boardroom. · Transparency is key to a healthy work culture.

o create a leadership culture focused on creating better opportunities and a better T workplace, companies should:

- Give employees the appropriate tools and training, but also provide them freedom to make decisions and manage others in their own style.

- Continually benchmark offerings against local competition, but ultimately choose offerings that meet the unique needs and wants of your desired workforce.

- Give

an equal voice to all employees through open channels of internal communication and third-party reporting hotlines.

23

UNDERSTANDING THE NET PROMOTER SYSTEM Business strategist Fred Reichheld first introduced the concept of the Net Promoter Score (NPS®) in a 2004 article in the Harvard Business Review and, since that time, has proven its efficacy as a performance management tool. According to research, NPS “acts as a leading indicator of growth... and managing [an] organization to improve NPS will improve business performance.”

NPS measures just how favorably people view a brand by asking a single question: How likely is it that you would recommend [brand] to a friend or colleague? The subsequent calculation focuses only on the percent of respondents who are promoters or detractors because these are the folks who are invested enough in a brand to share information and influence others. The lowest possible score is –100, and the highest possible score is 100. ·

PROMOTERS

·

PASSIVES

·

DETRACTORS

(score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth. (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings. (score 0-6) are unhappy customers who can damage your brand and impede

growth through negative word-of-mouth.

DETRACTORS

0

NPS score

24

1

2

3

4

PASSIVES

5

% of Promoters (9s and 10s)

6

7

8

PROMOTERS

9

10

% of Detractors (0 through 6s)

CORPORATE HEADQUARTERS 4111 Central Avenue Columbus, IN 47203 812.372.6200

This document was researched, analyzed, written, and prepared by Elwood StaffingÂŽ, one of the 10 largest light industrial staffing firms in the United States. Since its founding in 1980, Elwood has attracted millions of candidates, made hundreds of thousands of placements, and served tens of thousands of clients. Each and every day, our interactions with job seekers, workers, and employers generate valuable data we continually develop into actionable insights that guide better business decisions. We love data, and we love to share our knowledge to help employers like you make informed decisions. We are committed to finding new and consistent ways of sharing the valuable insights we gain, and we hope you look to us as an advisor with the knowledge and capabilities to help you get ahead.

View more of our publications at www.elwoodstaffing.com/BRC

This publication is proprietary and confidential and intended for general purposes. Nothing contained, expressed, or implied herein is intended or shall be construed as legal advice, and no attorney-client relationship is formed. If you have questions about any law, statute, regulation, or requirement expressly or implicitly referenced, contact legal counsel of your choice.