in this issue

·  Counteroffers May Be Tempting; but DON'T Bite the Apple.

·  Investment Policy Statement Follow-Up

·  Stress - The Zen Way

·  Think UpSearch!

Last month we discussed the impact of employee training on retention. When retention is not a deliberate focus of hiring managers, employees are more likely to seek other opportunities. Hence, the conditions are set for counteroffer situations.

This month's newsletter features an insightful article from UpSearch's own Joe Kenderes, who discusses the dynamics of counteroffers. Reneging after accepting another company's offer of employment can be detrimental to all parties involved, as Joe will explain.

The rapid movement of talent is an unfortunate, but realistic part of corporate operations and should be taken in stride. Consider taking a long, hard look at what you're doing to keep your employees happy to cut down on corporate "free agency." Ultimately, the best way to avoid counteroffer situations with your top performers is to deliberately focus on retaining them.

We appreciate your readership, and trust you will enjoy this month's newsletter.

Recruit well!

Signature of Shawn Upchurch
Shawn Upchurch
www.UpSearch.com

Counteroffers May Be Tempting; but DON'T Bite the Apple.

Kenderes vert pic in suit June 2006by Joe Kenderes

You've just accepted a new position with another employer. You're about to embark on the next exciting phase of your career. There is only one final step before you start your new journey; letting your current employer know that you're leaving.

After you finish unveiling the unfortunate news, you start hearing some intriguing words and phrases you've always wanted to hear from your boss. "Pay increase," "promotion," "more responsibilities," "more freedom." Promises, promises and more promises begin to grace your ears. Suddenly you feel like you struck a gold mine and you're sitting on top of the world. Feels good, doesn't it?

Not so fast!

Let's think about some of the things that were likely going through your boss's head as you gave your resignation:

  • We are so busy right now. This could not be happening at a worse time.
  • This is one of my best employees. If I lose her, the department's morale will be horrendous.
  • How will this look on my review?
  • I'm already trying to hire for two other positions. I don't need a third opening!
  • Maybe I can keep her until I locate a replacement.

These are typically the real motivations behind counteroffers. As you can see, they are only skin-deep and don't address your real needs.

Some optimists in our audience would like to give their employer the benefit of the doubt. "They really do care about me and they're looking out for my best interest," we hear them say. There is nothing wrong with optimism, except when it clouds reality.

Countless studies have shown the realities of counteroffers are more complex than meets the eye. The bottom line is that an employer's efforts to counteroffer are rarely about doing what's right for their about-to-leave employee.

Click here to read why you should leave counteroffers on the table and walk away.

Joe Kenderes manages the hiring needs for a national portfolio of manufacturing and distribution clients. Joe can be reached at 888.830.1904 x251 or jak@upsearch.com

Investment Policy Statement Follow-Up

Colin Smith's picby Colin Fitzpatrick Smith

When last we spoke, we had finished outlining what, in our humble opinion, should be incorporated into your Investment Policy Statement.

And we promised in our next conversation (the one taking place right now) to provide you with some specific suggestions as to what you might want to incorporate into your Investment Policy Statement.

The critical component would, in our experience, be to codify the criteria that must be satisfied for an investment offering to be included in the plan. And while you are defining what will cause you to buy, it would be prudent to define what will cause you to pare a position from your portfolio as well.

(When I say "you" in this context, it has been expanded to include your Investment Committee as well as you the Trustee or Sponsor of the Plan).

So, taken directly from the Investment Policy Statement we provide to our clients, here are the four (4) criteria that must be satisfied for any investment option to be offered to plan participants:

  1. the investment option must have minimum operational history of fifteen (15) years;
  2. the investment option must have consistently outperformed its peer group (not its arbitrarily assigned index) over its minimum fifteen year operational history;
  3. the investment option must have annual operating expenses of less than industry average; and,
  4. the investment option must be "run" by a team of managers whose average experience must be at least fifteen years.

Now, these four criteria, all of which must be satisfied before the investment option will be offered to plan participants, may seem restrictive.

And, they are and deliberately so.

So, why are our "rules" for buying so seemingly restrictive?

We will expand on that topic and educate you as to our sell side strategy in our next conversation.

Stay tuned.

Colin Fitzpatrick Smith is President of the Retirement Company, LLC, which designs qualified retirement plans as well as education to all plan participants. Colin can be reached at 440.995.1600 or colinfsmith@walnutstreet.com.

Stress - The Zen Way

Don't Choose Your Own Pace of Change.

Keep in step with the organization's intended rate of change. March to the cadence that's being called by the people in charge, instead of allowing yourself to take whatever amount of time you want or feel you need. Don't lag behind- there's little chance a lull will come along and give you a chance to play catch-up.

Stress - The Zen Way has been modified from A Survival Guide To The Stress of Organizational Change, by Price Pritchett and Ron Pound. This handbook tells you how to handle today's accelerating rate of change in ways that keep work stress at a minimum.

Think UpSearch!

Traditional interviewing methods are only 57% accurate in predicting on-the-job performance, according to leading researchers in the field of hiring psychology (Hunter & Schmidt 1998). The late Peter Drucker's research indicates that 2/3 of hiring managers would not make the same hiring decision - given the exact same opportunity - one year later.

UpSearch's method of recruiting is 93% accurate in predicting on-the-job performance. We even guarantee our services for up to one full year. It's really not that much of a risk because we're so accurate!

UpSearch develops customized, high-impact hiring programs that help companies succeed. We increase your organization's performance by hiring professionals with the knowledge, skills and values that meet your requirements.

Working with UpSearch, your hiring team will be able to:

  • Hire the right person for the position - the first time!
  • Get new hires to desired job performance levels ASAP.
  • Apply a structured process, tools and templates.

When You Absolutely Need To Hire The Right Person...

Think UpSearch!

 

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