HALF YOUR EMPLOYEES READY TO JUMP SHIP

GLOBE AND MAIL
REPORT ON BUSINESS
JANUARY 26, 2005

THIS JUST IN: HALF YOUR EMPLOYEES READY TO JUMP SHIP
by Virginia Galt

Canadian employees are so disenchanted that 46 per cent said in a survey they would consider jumping ship if a comparable job were available, Watson Wyatt Canada reported yesterday.
Organizations that pressure employees to "raise the bar" on performance -- without also providing adequate training and rewards -- are cited as major sources of frustration in Watson Wyatt's recent survey of more than 3,000 Canadian employees.

Two years ago, 37 per cent of those surveyed said they would consider changing jobs.
The willingness to move is partly a reflection of an improving labour market and "a growing perception that the employment deal offered by other companies might be better," Watson Wyatt reported.
There is always a tendency to wonder whether "the grass is greener elsewhere," the firm said. However,

this most recent survey found a deepening disengagement among Canadian employees.
If unaddressed, this will affect organizations, whether their employees go to the competition or stay and underperform, said Liz Wright, Toronto practice leader with Watson Wyatt Canada's human capital group.

The survey found that only 40 per cent of employees feel they have opportunities for growth, development and advancement with their current employers and only 27 per cent believe there is a clear link between job performance and pay.

Even companies that invest heavily in training and strive to recognize and reward strong performance will lose some people to competitors, David Fulton, general manager of human resources at Calgary-based Shell Canada Ltd., said in an interview yesterday. The challenge is to attract and retain the best -- and keep the door open for those who have left.

"We have lost some people we would love to have kept," he said. The competition for talent in the oil patch is such that employees will sometimes leave for higher pay, but return to Shell "because they like the workplace environment, they like the way they were treated."
A key attraction, he said, is Shell's reputation for providing "damned good training" and for drawing a "clear line of sight" between each employee's contribution and the bottom line. Good performance is recognized and rewarded.

Ms. Wright said companies are under enormous competitive pressure and "the marketplace has changed." But employers have to do a better job of "managing that change" so that employees feel equipped to keep up with the new demands that are being placed on them.
"While there is potential for employers to lose good employees, there is also potential for gaining them," the Watson Wyatt report said.

Mr. Fulton said Shell conducts regular employee surveys and moves to address perceived shortcomings. "I don't think it's something you ever crack, but you just keep working at it and try for continuous improvement."

Shell developed its performance management and training programs largely in response to employee feedback, he said. The company also holds managers and supervisors responsible for providing the support that employees say they need.

Not all employees move for negative reasons -- some just see an opportunity that is too good to pass up. Toronto-based promotional marketing agency Capital C has definitely benefited from the greater willingness of employees to change jobs, chief executive officer Tony Chapman said in an interview yesterday.

Susan James said yesterday she jumped to Capital C from another agency three weeks ago "for a more senior job and more responsibility."

Her colleague, Sheri Pearson, was attracted to Capital C's creative environment -- and the fact that it does not subscribe to the industry norm of 12-hour workdays. "There is good work/life balance here," said Ms. Pearson, who joined the agency in November.

Both Ms. James and Ms. Pearson were happy in their previous jobs, but each saw the move to Capital C as an opportunity to advance their careers.

It is common for people to switch jobs every two years in the agency business, Ms. James said. However, Mr. Chapman boasts that he has not lost an employee to a competitor for the past three years.
Mr. Chapman tries to make his company "a great place to have an adventure." There is a strong collaborative culture, he said.

"Every three months, everyone in the company gets a portion of our profits, so it's not just about six superstars that are going to be lavishly well paid," Mr. Chapman said.

Ms. Wright of Watson Wyatt said companies that pay attention to employee engagement, reward good performance and provide advancement opportunities will have an edge over their competitors.
"Creating a high-performance culture -- in which high performers are rewarded and developed -- is an important element of motivation," added Watson Wyatt practice leader Graham Dodd.

"Participants cited rewarding performance, managing poor performance, receiving feedback and encouraging high performance as significant challenges [for their employers]. This should be a cause for some concern," Mr. Dodd said.