The People First Approach A guide to recruiting, developing and retaining the right people

1. The People First ApproachA guide to recruiting, developing and retaining the right people Women In Development Dana-Farber Cancer Institute March 8, 2011 Jon Derek Croteau, Ed.D.

2. The presentation • Results! ROI! Why should I adopt The People First Approach? • The problem: human capital management in advancement programs in colleges, universities and other nonprofits • The solution: adopting The People First Approach • The book and your questions

3. The impact of adopting The People First Approach • If you truly adopt this approach, you will see results! • Decreases in turnover and the debilitating costs associated with it • Increases in professional development achievements • Higher employee satisfaction, increased loyalty • Elevated performance expectations and standards • More learning opportunities and cross-departmental collaboration • Increases in morale • Increases in productivity • Decreases in hiring errors • Earned reputation as a professional destination of choice • Decreases in recruitment costs and unfilled positions • Increases in retention

4. The impact of adopting The People First Approach • Forbes Fortune 500 companies that engaged in what they called “progressive” human resource practices exceeded their counterparts’ growth in sales by $190 billion and their profits by $56 billion (Raelin, 2003) • You’ll have a more efficient, more effective, more engaged workforce • 80% of the progressiveness factors involved no cost at all: rather, they just entailed a focus on people-oriented leadership (Raelin, 2003)

5. The impact of adopting The People First Approach • “I have seen tremendous improvements in the recruitment process and the training/orientation process for new employees, as well as the professional development of current staff members. The people department has created a safe place for staff to discuss possible growth opportunities, and management training. All of these factors have helped us reach a new level of cross-unity and a greater sense of accomplishment within the division.” Vice President • “Our division is rapidly growing and is in a hurry to reach its fund-raising goals. The people department stepped in to fill many gaps that are normally neglected: training needs, coaching for new and current managers, and an ear for the vice president to know about staff morale.” Director of Major Gifts

6. The problem in higher education, healthcare and other nonprofits • Decades of human capital research and practice in corporations; creatively “invest” in your people and your organization will reap the rewards • Little to no research on human capital investment in institutions of higher education and other nonprofits; we’re way behind and it is showing

7. The problem in the advancement profession • Average tenure of entry level advancement officer is 18 months • Average length of employment for seasoned advancement staff is 2.5 years • 41% of advancement staff has fewer than five years of experience • 70% of gift officers interviewed spent fewer than five years fundraising for that institution

8. The problem in the advancement profession • Increase in the number of nonprofits; 300,000 in the last decade • 50% of the baby boomers eligible to retire in the next decade • The number of jobs versus the number of qualified people; supply and demand • In this economy turnover has slowed, but not that much; people are just a tad more cautious to jump as quickly; the same problems exist • Will you be ready when the economy improves again?

9. The problem in the advancement profession • Randy Helm “…turnover…among [advancement] staff can set back fundraising progress months or even years.” • The Cost of Turnover = • 1.5 times annual compensation for employees • 2.5 times annual compensation for managers or sales (fundraising) positions

10. The problem in the advancement profession • The Cost of Turnover (Bliss, 2006) • Recruitment costs • Training costs • Lost productivity costs • New hire costs • Lost [fundraising] costs

11. The problem in the advancement profession • Edward G. Thomas (1995) • 50% of turnovers were in position for less than 5 years • 48% left to achieve higher rank, opportunity for advancement, and salary • This was 16 years ago: what have you done to make changes?

12. The problem in the advancement profession • 2007 Eduventures Study • 600 advancement officers at 30 different institutions • 40% said that they would leave their current position for greater opportunity • 49% of the highest performing group said the same thing • I guess we have not done enough…

13. Change your way of thinking; lead the way • With return on investment and turnover being scrutinized more than ever, advancement programs must, and can lead the way • Stimulate further research in best practice human capital management as a measure of organizational effectiveness in higher education institutions • Alter the way administrators think about their people—adopt The People First Approach

14. Change your way of thinking; lead the way • “Today, your most critical assets are [your] people, not [your] property. Outstanding people give you and your organization a competitive advantage.” -Beverly Kaye & Sharon Jordan-Evans (2005)

15. What is human capital management in higher education & nonprofits? • On feeling “valued” • Organizational commitment to its people • Upholding the institution’s mission and values • Community of the institution; working on a common goal • Nurturance of the community • Collaboration and collegiality • Metaphors of love and family

16. What is human capital management in higher education & nonprofits? • On feeling “under-valued” • Poor relationship with or lack of respect for manager • Lack of professional development opportunities • Being paid below market • Lack of career growth opportunities • Lack of communication—not being informed bred feelings of un-importance • Not thinking that they are making a difference

17. Human capital dimensions in higher education & nonprofits • Dimensions created from research • Recruitment and Retention • Communication • Rewards—Cash Compensation • Rewards—Non-cash Compensation • Purpose, Collaboration, Community & Meaning • Human Resource Competence

18. Dimension 1 in higher education & nonprofits • Recruitment and Retention • Recruiting and retention strategies • Opportunities for growth and advancement within • Orientation and professional training programs • Peripheral rewards as motivators

19. Dimension 2 in higher education & nonprofits • Communication • Effective communication • Sharing ideas with supervisors and senior management • Sharing financial information • Sharing strategic plans and goals

20. Dimension 3 in higher education & nonprofits • Rewards—Cash Compensation • Market pay • Pay for performance • Deferred compensation/403(b) plan

21. Dimension 4 in higher education & nonprofits • Rewards—Non-Cash Compensation • Paid Time Off (PTO) • Tuition remission • Flexibility in hours, schedule, how to do work • Personal satisfaction—intrinsic rewards

22. Dimension 5 in higher education & nonprofits • Purpose, Collaboration, Community & Meaning • Importance of the mission • Service-oriented work (students, college, and community) • Stake in the success of the students/organization • Fostering collegiality • Trust in senior management • Belonging to the larger community

23. Dimension 6 in higher education & nonprofits • Human Resources Competence • Human resources’ role and purpose (transactional vs. transformational) • Human resources technology

24. Human capital management in higher education & nonprofits: conclusions • Recognition for superior performance • Communication from senior management (honest and effective) • Sharing ideas with senior management • Professional development opportunities • Market pay and pay for performance • Learning and training opportunities • Connection to the mission and making a difference • Being part of a community

25. Human capital management in higher education & nonprofits: conclusions • MANAGEMENT, MANAGEMENT, MANAGEMENT • Poor manager: top reason why people leave their position • 50% of worker satisfaction comes with immediate supervisor relationship • 25-year long Gallup Organization study found the relationship with supervisor determines length of stay • Train and invest in your managers on how to be effective • Leadership training and management development programs

26. It’s not about money, it’s about a mindset and a leadership approach • It’s about thinking differently about your investment in the right people • It’s about focusing on the inexpensive practices people crave • It’s about stewarding your best staff like your best donors • It’s about saving you and raising A LOT more money in the long run • It’s about allocating more of the current budget to support your people programs

27. Adopting The People-First Approach • Goal: transformational versus transactional • Progressive human resources, organizational development/effectiveness, learning and development, recruiting and retention, career coaching and blazing career paths

28. The People-First Approach A guide to recruiting, developing and retaining the right people • Part I: The People First Approach • Part II: Human Capital Toolkit • Have you adopted The People First Approach? See how you are doing with your people management

29. Adopting The People-First Approach • What is human capital? Defining your most valuable asset • What do your people think? What do they need? Recommendations for sound assessment • Finding someone to do the work How to create effective people programs • Who are you? Who do you want to be? Developing vision, mission, and core values

30. Adopting The People-First Approach • The complicated compensation issue Maybe they don’t come for the money but it still matters what you pay them • Find the best and the best fit Critical steps to making the right hires for your culture • Getting them up and running Simple steps to effective on-boarding and orientation • After the honeymoon How to steward your staff as you steward your donors

31. Adopting The People-First Approach • Programs that motivate Building competency-based performance management programs • Individual performance plans Developing strengths while expanding competencies • Give them what they want Building workforce muscle with a learning and development program • Blazing the trail Developing career paths and succession planning for your staff

32. Adopting The People-First Approach • Effective communication Strategies for an integrated and cohesive workplace • Leadership inspires Ways to make your leadership more visible, accessible, and trustworthy • Measuring the return on your investment How do you know when you have been successful?

33. The impact of adopting The People-First Approach • “I went from managing 2 staff members to 19 in my new role here. I can’t put into words what a relief it is to have a people person staff member to depend on for staff development advice and assistance, and advice on best management practices. I have grown as a professional and I know several examples of staff members in my team that have grown because of the people department’s unique initiatives.” Director of Alumni Relations • “The human capital management team is an integral partner with major gifts in the recruitment, education, training and coaching of major gift officers. Through the efforts of the team, major gifts is able to grow its team strategically as well as grow the individuals within the team professionally. Both initiatives work to strengthen the goals of the campaign.” Campaign Director

34. The presenter Jon Derek Croteau, Ed.D. Witt/Kieffer Leaders Connecting Leaders 585-662-5403 jcroteau@wittkieffer.com “Like” Dr. Jon Derek Croteau on Facebook www.wittkieffer.com

35. The book The People First Approach A guide to recruiting, developing, and retaining the right people CASE Books www.case.org 800-554-8536