An Interview with Denis Cauvier

Dr. Denis Cauvier is a sought-after speaker and consultant on HR/ Talent Management issues. Dr. Cauvier is recognized as North America’s top speaker on finding, engaging & retaining exceptional staff. With over 22 years experience working with a vast array of industries, Denis has spoken to over one million people in 45 countries around the world. He is the international best selling author of 8 books. He is a frequent expert in the New York Times, LA Times, CBS, ABC, Wall Street Journal, Bloomberg, MSNBC, and Forbes. Denis lives near Ottawa, Canada with his wife Debbie, their two adult daughters Sam & Stevie live nearby. He is an avid sports car driver, walker, global traveler and wine enthusiast.

 

How did you get involved with speaking to YPO/WPO?

Three years ago I was the keynote speaker for a CEO conference in Las Vegas; the focus of presentation was on maximizing the ROI on strategic investments in Human Capital. The client approached me after the session and said it was the most impactful presentation that they had in the 8 years that they had been organizing these summits. As a practice, whenever possible I offer a Q&A session prior to concluding my presentation. If a networking break follows my session I make a point of being available for one-on-one chats with the delegates. One of the attendees approached me and inquired if I offered consulting services in the area of HR/Talent Management. He shared that he and his brother were both looking to make some strategic improvements within the HR functions of their respective companies. One brother is the CEO of a successful agricultural products distribution company and other brother (also a member of YPO/WPO since Aug 1990) is the CEO of a large Petroleum distribution company. I worked with each brother and their senior management teams and devised two separate Talent Management Strategic Plans.  Allan MacEwen, President of MacEwen Petroleum Inc. has shared with me and with various YPO/WPO contacts that “we were very pleased with his (Denis’s) professional leadership, knowledge and skills. His work has proven to be most valuable for me and the Company. As a result we have referred Denis to other Associates. Although I have not heard Denis speak to large groups – my Brother has, at a large conference in Las Vegas, where Denis was Keynote. My brother is without hesitation, a strong supporter of Denis. Also – we have arranged to have Denis speak to a business group in Toronto in April. Denis is very personable, knowledgeable and presents himself exceptionally well. I am confident you will be pleased with choosing Denis to speak at an YPO/WPO conference.”

Having shared your thought provoking messages with over one million people in 45 countries, what have you discovered is a common trend throughout the world of HR/ Talent Management?

I would categorize this common trend as a “missed opportunity”. My experience is that too many organizations view HR as a “Cost Centre”. For over 22 years I have been an advocate of the notion that HR needs to be seen and held accountable as a “Profit Centre”. We should stop spending money on HR activities and start to invest instead. When we think in terms of investments we expect certain returns from these investments. HR is no different; each investment needs to be analysed to consider the business case rationale prior to making the investment and then measured to determine the actual contribution made to the bottom-line. As a speaker and consultant, one of my greatest sources of professional pride is my track record in helping companies reframe their perspective on HR/ Talent Management by creating specific strategies to maximize their returns on all HR investments. This investment will result in reduced time and cost of hiring, increase levels of productivity, reduce employee turnover, enhance customer satisfaction, improve sales, and increase profits.

How can HR/Talent Management be viewed in terms of ROI?

In America alone there are 76 million baby boomers getting ready to retire. The beleaguered economy is putting unusual pressures on organizations, requiring them to do much more with a lot less. In the marketplace, there is a shortage of high performers. As a matter of fact, 70 percent of companies indicated that it is hard to find high performers – and almost as many companies say it is difficult to retain high performers once they are found. Further, companies are seeing a tremendous increase in turnover, due partly to the fact that Generation X and Generation Y employees are more inclined to change jobs and careers in order to fulfill their personal needs and goals.

With that said, it is not surprising that we find “gaps in the leadership pipeline” as the number one talent challenge for two years in a row. The percentage of companies in 2011 that identified this as their top challenge was actually up 16 percent over 2010, from 51 percent to 59 percent, respectively.  The bottom line: in today’s turbulent economy, organizations are focused on finding the right talent, getting the most from that talent, and engaging and retaining that talent.

How can wise investments in HR/ Talent Management impact the organization?

Organizations can significantly boost their financial success by incorporating wise talent management investments. The following reveal how best in-class HR/ Talent Management programs and practices impact the bottom line.

High Performing HR Practices and Outcomes

In an Academy of Management Journal study of 1,000 publicly held U.S. firms, it was found that a 10% increase in high performing HR practices is associated with:

• $ 27,044 more in sales per employee
• $ 18,641 increase in market value per employee
• 7.05% decrease in employee turnover

Human Capital Practices and Market Value

In a longitudinal study by Watson Wyatt Worldwide of 750 large North American and European companies, a significant improvement in key human capital practices led to an increase of 47% in market value. These practices include total rewards and accountability, collegial/flexible workplace, recruiting and retention excellence, communications integrity, and focused HR service technologies. Furthermore, based on the nature of the data, they revealed that human capital practices lead to market value creation (as opposed to “richer” firms having more money to spend on human capital practices)

Human Capital Practices and Market Perceptions

In a study of 590 companies by Delaney & Huselid, it was found that progressive HR management practices, including selective staffing, training, and incentive compensation, are strongly related to perceptual measures of organizational performance.

Engagement and Safety

A large manufacturing company saved $1,721,760 in safety costs by increasing employee engagement. They found that engaged employees are five times less likely to have a safety incident. The average cost of a safety incident for engaged employees is $329 less than those of non-engaged employees.

Engagement and Profit

A large scale study by ISR found that companies with high levels of employee engagement witness an overall 2.1% percent increase in net profit compared to a 1.4% percent drop in net profit for companies with low engagement.

How can wise investments in HR/ Talent Management impact an individual employee?

The following results are based on research studies that evaluate whether wise investments in individual talent really does make a financial impact on the organization.

High Performers Drive Profit

In a survey reported in The Mckinsey Quarterly, of 410 corporate officers at 35 large U.S. companies, it was concluded that a high performer generates 40 percent more in increased productivity in operations roles, 49 percent higher increased profit in general management roles, and 67 percent more in increased revenue in sales roles.

Talent Boosts Productivity

Research investigating the economic value added from HR programs found that superior workers are 148% more productive than average workers. Put another way, a superior worker with a $100,000 salary produces about $148,000 of work while a poor performer has a production value of only $52,000. Reported in The Journal of Applied Psychology.

Executive Talent Impacts Profits

According to research conducted by R.J. Vance, at the executive level, selecting for the right competencies are worth $3 million in profit per executive.

Engaged Workers Stay and Produce

HR Magazine reported that a large software company found that highly engaged employees are 1.3 times more likely to be top performers and 5 times less likely to voluntarily leave the company. Highly engaged sales people outperform disengaged employees by 28%.

What take-home value do members in the YPO/WPO audience walk away with after your session?

As President/ CEO of three companies, I understand the realities, challenges & opportunities faced by senior executives in today’s turbulent economy. I am known for highly customizing each keynote and workshop to fulfil the unique requirements of each group. I pride myself in providing proven low cost/ high impact practical, common-sense sustainable methods to decrease harmful employee turnover, increase levels of productivity, enhance performance, increase sales and customer satisfaction, increase market share, and boost profits. With clients I track the impact of my solutions. To-date these strategies have added well over $300 million in new value and revenue, and have boosted my clients profits by tens of millions of dollars. I have worked in 45 countries and have researched the best business ideas, practises and case studies from around the world. I take this global perspective and create localized solutions for my audiences thus providing them with competitive strategic advantages. I am very well known for showing audiences how to turn HR from a cost center into a profit center.

What specifically is it about your message that’s relevant to the YPO/WPO audience? What sets you apart.

It really depends on the specific topic, but the consistent feedback that I receive from senior executives around the world is they greatly value the “ah-ha” moments, the relatable case studies, and the ready-to-use practical tools and templates. The other over-arching comment I get is that CEOs appreciate that I am a fellow President/ CEO that just happens to speak, consult and write about Human Capital issues.

 

For more information on Denis please visit our Speaker Database.

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