Kevin BrettJ410
May 9, 2013
Customers: “Customer Satisfaction”
Employees: ?
Owners: Shareholder Value
Wal-Mart: 2.2 million FedEx: 228,866 Starbucks: 160,000 Amazon: 88,400 Whole Foods: 64,127 Nordstrom: 58,140 Microsoft: 55,455 Intel: 48,350 Nike: 44,000 Cisco: 35,336 Google: 34,311 REI: 10,757
High unemployment; High underemployment
Sense that employees are trapped
Fungible commodity
Depreciating asset
Customer satisfaction; Shareholder value are higher priorities
Talent (engineers, architects, auditors, analysts, lawyers, PR/marketing pros…)
Customer/partner/supplier/shareholder relations
Word-of-mouth advertisers
All great organizations have valuable employee contributors
2012 2013 Academic/expert, 68% 69% Tech Expert, 66% 67% Financial/industry analyst, 46% 51%
Person Like Myself, 65% 61% NGO Representative, 50% 51% Regular Employee, 50% 50% CEO, 38% 43%
64% trust companies that treat their employees well
C-Level listening tours, webcast
Two-way corporate Intranets
Employee magazines via Web
Employee videos via Web
Quarterly conference calls
Three Intranet stories per week to inform and build morale
LSI Logic Employee Communications Preferences/Quantitative Survey of 400 Employees
1. Management Town Hall Meetings, 93%2. Company Intranet Portal (Planet LSI), 73%3. Logically Speaking (Qtr. Magazine), 29%4. LSI World (Qtr. Video), 29%
Result: Shut down magazine and video; emphasized management meetings and intranet;saved $250,000 annually
Companies acquire companies to gain new technology and talent
Approximately 70% of deals fail (e.g., Time-Warner/AOL)
Acquiring companies blow integration
Acquired employees head for the exits
Need to welcome acquired employees make them part of the team
Organization’s most valuable asset
Goes home at night; will they return in a.m.?
Retention becoming a big issue
Treating employees well is a winner
Use digital tools to communicate
Rely on credible communicators
Motivate your best and your brightest
Google – Search engine SAS – Privately held software developer CHG HealthCare Services – Healthcare staffing Boston Consulting Group – Management techniques Wegmans – Supermarkets NetApp – Data storage Hilcorp Energy – Energy Provider Edward Jones – Financial services Ultimate Software – Software Provider Camden Property Trust – Apartment developer
The recession/lousy economy will eventually end
The siren call of the “cherry picker” is in the air
“Retention” will become a big issue
High costs of replacing workers (~$60k)
Employees are shareholders too (ESPP, stock options)/Increasing CSR Interest
Why layoffs?• Insufficient revenue to meet payroll
• Need to restructure company – eliminate businesses
• Need to eliminate redundancies after acquisitions or mergers
• Survival
Survivors
Impacted employees
Customers
Media, especially local media
Financial and market analysts