TM - June 2008 - (Page 64) INSIGHT continued from page 51 cessor] is not really on track for your position, [we’d ask], “Is there another position in the bank they would be ready for?” A lot of it is based on current position, readiness for this position that we’re looking at them for, knowledge, how long they’ve been with the company and certainly the leadership competencies: Have they led large teams? Do they inspire followership? We really leverage that, so when the time comes where a position opens up, we’ll have ready successors. The other thing that we do, as most good profitable companies do, is take a look at those that are underperforming. If they’re not performing according to plan, or especially if they’re well below that, we’ll go through the process of counseling, trying to improve their performance. But if that’s not working, then they’re not going to stay with the company. We don’t hold on to people for a long time if they’re not performing. TM: Carter: What compensation and incentive practices do you use to help manage talent in your organization? We have three types of pay compensation: There’s merit pay, bonus pay — which we call variable compensation — and long-term incentive [compensation] that we pay in equity, either in restricted stock or stock appreciation rights. What was a little bit different this year, and turned out to be a real positive, is TM: Carter: What challenges impact talent management in your organization? The economic picture is very tough. When [sales associates] can’t get the business, profitability is down. Maybe their compensation isn’t what they think it should be and stock price has been declining. Those are tough times for people. Sometimes that triggers thoughts about the “grass is greener on the other side.” So from a talent perspective, it’s a challenge in that we’ve lost some good people to other companies. When they go to those other companies, they find out the grass is pretty much the same color! I think the other thing is, we have a good expense ratio, and we run pretty lean. There’s not much fat to trim, especially in our staff divisions. It becomes tougher to pay attention and do those things that are necessary for talent, like development. People’s time is spent focusing on the bottom line, doing what they need to do to generate income or keep expenses under control. “We’re tracking performance down to the individual contributor level, so we measure, we reward performance and we have friendly competition.” – Brent Carter, Vice President and Director, Talent Mgt. and Workforce Planning, Fifth Third Bank that as with other financial companies, our performance was very tough. The mortgage industry, the credit issues: It’s hit us as hard as it has other banks. But compared to our peers, we’ve performed much better. This year’s variable comp was based on our performance related to our peers. So on paper, it looks like ’07 was a tough year. It looks like variable comp is going to be low, [but] because we performed very well in relation to our peers, variable was much higher for people than they would’ve expected. That’s a key factor in retention. People can say, “Gosh, yet another tough year. I’m tired of this. I’m going to go work for another company.” But we rewarded for the effort people put forth. What’s next for your organization in terms of talent management and workforce performance development? TM: TM: Carter: talent management magazine How have your workforce performance management activities contributed to your company’s bottom line? The way we measure performance directly impacts the bottom line. June 2008 Instead of having talent activities or events, instead of [saying], now it’s time for performance management, now it’s time for total rewards or compensation, now it’s time to do our employee engagement survey, we want talent focus to be year-round. It should be just part of a manager’s job, a leader’s job, to focus on talent: Am I optimizing the talent that I have? Am I developing them? Am I very clear on expectations? Am I clear on where their performance levels should be? Am I providing the feedback I need to? Now is really the key time to focus on talent because when the economy breaks open and people are better off financially and they start spending money again, they start investing again, they start buying houses we’re doing the foundational things now to be prepared for that launch. And I think a lot of companies maybe don’t realize that. They’re focused so much on the bottom line, they’re not focusing on talent. I think we’re going to be much better prepared when that bubble opens up. Carter: 64 www.talentmgt.com http://www.talentmgt.com
Table of Contents Feed for the Digital Edition of TM - June 2008 TM - June 2008 Editor’s Letter Contents Human Performance Leading Edge Foundations The New Components of Compliance Candid Culture: Embracing Employee Complaints Transitioning to a New Era: C&B at Nonprofits Three Ways to Build Successful Manager-Employee Relationships Implementing Successful Learning Programs The Succession Fix Fifth Third Bank: Putting People First Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu Workforce Readiness: Preparing Personnel to Meet Business Goals Kelley Blue Book: Writing the Book on Performance Management Advertisers’ Index Editorial Resources Full Potential TM - June 2008 TM - June 2008 - (Page Intro) TM - June 2008 - TM - June 2008 (Page Cover1) TM - June 2008 - TM - June 2008 (Page Cover2) TM - June 2008 - TM - June 2008 (Page 3) TM - June 2008 - Editor’s Letter (Page 4) TM - June 2008 - Editor’s Letter (Page 5) TM - June 2008 - Editor’s Letter (Page 6) TM - June 2008 - Editor’s Letter (Page 7) TM - June 2008 - Editor’s Letter (Page 8) TM - June 2008 - Contents (Page 9) TM - June 2008 - Contents (Page 10) TM - June 2008 - Contents (Page 11) TM - June 2008 - Human Performance (Page 12) TM - June 2008 - Human Performance (Page 13) TM - June 2008 - Leading Edge (Page 14) TM - June 2008 - Leading Edge (Page 15) TM - June 2008 - Foundations (Page 16) TM - June 2008 - Foundations (Page 17) TM - June 2008 - The New Components of Compliance (Page 18) TM - June 2008 - The New Components of Compliance (Page 19) TM - June 2008 - The New Components of Compliance (Page 20) TM - June 2008 - The New Components of Compliance (Page 21) TM - June 2008 - The New Components of Compliance (Page 22) TM - June 2008 - The New Components of Compliance (Page 23) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 24) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 25) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 26) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 27) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 28) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 29) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 30) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 31) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 32) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 33) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 34) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 35) TM - June 2008 - Three Ways to Build Successful Manager-Employee Relationships (Page 36) TM - June 2008 - Three Ways to Build Successful Manager-Employee Relationships (Page 37) TM - June 2008 - Three Ways to Build Successful Manager-Employee Relationships (Page 38) TM - June 2008 - Three Ways to Build Successful Manager-Employee Relationships (Page 39) TM - June 2008 - Implementing Successful Learning Programs (Page 40) TM - June 2008 - Implementing Successful Learning Programs (Page 41) TM - June 2008 - The Succession Fix (Page 42) TM - June 2008 - The Succession Fix (Page 43) TM - June 2008 - The Succession Fix (Page 44) TM - June 2008 - The Succession Fix (Page 45) TM - June 2008 - The Succession Fix (Page 46) TM - June 2008 - The Succession Fix (Page 47) TM - June 2008 - The Succession Fix (Page 48) TM - June 2008 - The Succession Fix (Page 49) TM - June 2008 - Fifth Third Bank: Putting People First (Page 50) TM - June 2008 - Fifth Third Bank: Putting People First (Page 51) TM - June 2008 - Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu (Page 52) TM - June 2008 - Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu (Page 53) TM - June 2008 - Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu (Page 54) TM - June 2008 - Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu (Page 55) TM - June 2008 - Workforce Readiness: Preparing Personnel to Meet Business Goals (Page 56) TM - June 2008 - Workforce Readiness: Preparing Personnel to Meet Business Goals (Page 57) TM - June 2008 - Workforce Readiness: Preparing Personnel to Meet Business Goals (Page 58) TM - June 2008 - Workforce Readiness: Preparing Personnel to Meet Business Goals (Page 59) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 60) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 61) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 62) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 63) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 64) TM - June 2008 - Editorial Resources (Page 65) TM - June 2008 - Full Potential (Page 66) TM - June 2008 - Full Potential (Page Cover3) TM - June 2008 - Full Potential (Page Cover4)
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