Workforce optimas awards 2003

Workforce, March, 2003

Workforce management can be a breeze when times are good. You can fatten up the training budget. If a salary offer isn't high enough to land a stellar recruit, there's a chance that you can get her more. And if keeping the troops happy and productive means adding on some perks, you can do it--even if the ROI is a little sketchy.

But in a bleak economy, all that changes. Perry Mason himself would have a hard time arguing some of the cases that executives have to make today, even for critical initiatives. Training has to show its value--right now. Recruiting requires special skills, not just the ability to write a big fat check. And maintaining a productive workforce has never been a greater challenge. Employees are dispirited, disengaged, and not disposed to give their all for boss and business.

That's why this year's Optimas Awards are particularly meaningful. The organizations that Workforce selected have found creative ways to achieve such goals as lower turnover, a healthier workforce, greater profits, expanded markets, and even the ultimate test: the company's very survival.

With this issue, we launch a series of profiles of honorees, beginning with Internet search-engine Google, the winner for General Excellence. For the rest of the year, we will spotlight an honoree every month. Workforce is proud to introduce this year's Optimas Award winners. Each demonstrates an approach to workforce management that is nothing short of inspirational.

WINNERS

GENERAL EXCELLENCE

Google

See the feature story on Google's people-centric culture on page 50.

COMPETITIVE ADVANTAGE

National Association of Insurance Commissioners

Cathy Weatherford sums up her nonprofit association's business issue succinctly. Five years ago, a 30 percent turnover rate "was killing us," says Weatherford, executive vice president and CEO for the association, whose research supports the work of the chief insurance regulators from the 50 states, D.C., and four U.S. territories. The Kansas City-based association simply couldn't meet the salary offers that for-profit companies were making to the computer professionals who make up 40 percent of its staff.

Surveys showed Weatherford that the association could compete if it retooled its workforce policies. By offering a wide variety of low-cost programs and policies, the association made itself an extremely attractive place to work. The elements include a four-day workweek, flextime, telecommuting, casual dress, a no-layoff policy, and a novel idea that brought national attention: employees are allowed to bring their infants up to the age of six months to work with them. Turnover dropped from 30 percent in early 1996 to below 9 percent currently.

FINANCIAL IMPACT

National City Corporation

You don't have to be an investment banker to know that great customer service starts with well-trained and experienced bank employees. National City Corporation knew that this would be a difficult goal for a company that experienced more than 51 percent non-exempt employee turnover in 1999. Many employees left within 90 days of their hire dates.

The company turned things around by starting a series of workshops for entry-level employees. Hiring managers were taught how to prepare for the arrival of new employees and make their transition to a new job smoother. New employees were paired with experienced bank "sponsors" who had attended a half-day workshop on employee development.

The program paid off. New hires are now 50 percent less likely to quit within their first three months, which saves the company at least $1.35 million annually. Absenteeism among new employees is down 25 percent, for an annual savings of $306,000. And as new hires complete workshops, the improvement in sales and product referrals has led to a revenue jump of $3.7 million.

GLOBAL OUTLOOK

Novo Nordisk

Novo Nordisk, a Danish pharmaceutical company that specializes in the treatment of diabetes, operates in 68 countries and employs more than 18,000 people. Its "triple bottom line" approach, which tracks not only profits but also environmental and social impacts, has made it popular with socially conscious investors. Still, says Peter Moeller, vice president, business and organization, "when it comes to being an employer of choice, we are mostly 'world' famous in Denmark."

The company is working hard to build its global markets, and its human resources strategy is viewed as a key to success. One approach is a "People Strategy," aimed at improving five key areas: customer relations and competitive awareness; attraction and retention; development of people; building a winning culture; and equal opportunities. The same focus areas are being addressed in all of the company's divisions, whether in Japan, Belgium, or the United States. A 2002 handbook provides concrete goals, tools, and examples of success: How the company tripled its sales force in the United States. How Japanese employees shifted to a performance-based bonus system, instead of the country's traditional bonuses-for-all approach. How the "Balanced Business Scorecard" measures performance against targets that affect all of top management's compensation.