Enhancing Employee Retention Through Strategic Promotion and Transfer Processes

1. Building & Retaining Human Capital: The Assignment Process J. Bruce Prince Kansas State University 4 June 2002

2. Promotion & Transfer Process Frequent employee job changes: 800K/year in the non-military US economy Less upward, more lateral moves Change create a �vacancy chain� of internal openings Cascading sequence of linked P&T/assignment moves Consequences are not well understood: �virtually no empirical attention�� (Dalton, 1997) Both negative and positive behavioral and attitudinal consequences are likely but more research is needed

3. Dominate Logic of Internal Promotion/Transfer Process Generally organizations employ a single criterion: Maximize new incumbent�s performance effectiveness: Adequate knowledge, skill and ability to handle demands Minimize training and supervision costs Increasingly conflicts with organizations� need for a multi-skilled and flexible workforce How can the P & T (assignment) process better contribute to organizational & individual success?

4. Multiple Criteria Assignment (P&T) Process

5. Performance Effectiveness Logic is person-job matching well-established in selection/assignment process Selection/assignment processes must adequately satisfy this criterion Supply-demand gaps & priority coverage Challenge is developing decision processes that optimize multiple criteria

6. Human Capital Development Gaining sustainable competitive advantage in a fast-changing �knowledge� economy Workforce skill breadth & flexibility Winning the war for talent � internally! 70% of workplace learning happen on-the-job� & at the water cooler �What skills will be critical in 3 years and what is being done to develop them?�

7. Employee Effort & Attachment Key attitudes of key employees: Career development satisfaction Organizational commitment & job involvement Organizational citizenship behavior Procedural fairness perceptions: How do we make the �losers� in a selection process satisfied that they were treated fairly? Clarity, openness, involvement, feedback & �voice�

8. Career Development & Retention �Employability� security has replaced traditional job security: Continuous �skill portfolio� development in a high-flex & knowledge-based economy Culture of employee development: Builds individual & organizational competencies Contributes to �employer of choice� status

9. Research Methodology Research is taking place with knowledge workers in a financial services firm Extensive interviews with managers and employees experiencing recent assignment (P & T) transitions Conceptual model development Final survey process concludes this summer

10. Practices That Make a Difference Managing procedural fairness: Involve employees in the process Self-nomination & selection panels Procedural clarity & transparency Final decision feedback & counseling HR & line management co-lead the process: HR department insures fidelity & fairness and gives employees �voice� opportunities

11. Effective Decision Processes Use multiple-person selection panels: Counter-balances bias & increases credibility Rank top candidates by each criteria & make final decision from the four lists: Judgment or statistical decision process Keep score and analyze track record: What actually counts versus what should count?

12. Effective Linked Practices Create a developmental culture by providing: Individual career planning resources Succession planning & high potential systems Formal mentoring & peer support efforts Competency models & skill inventories Project & taskforce teams for development