LEARN TO ANALYZE DETAILS Bridge The Say-Do Gap.(LEADERS & SUCCESS)(IBD'S 10 SECRETS TO SUCCESS)

Byline: Robin Grugal

6 What people say and do are often two different things. Toyota and FleetBoston Financial found that out when trying to evaluate employee sentiment and understand what motivates their behavior. Now they avoid the say-do trap by digging for hard facts.

Employee surveys alone aren't enough when forming people policies and investing millions on human capital programs, says Haig Nalbantian, human resources consultant and co-author of "Play to Your Strengths." Companies need to act like smart marketers by not only asking customers what they think, but also tracking buying behaviors.

"Somehow the marketer's approach . . . seldom finds its way to the realm of decision making about human capital," he said.

Survey Says . . .

When FleetBoston saw a surge in voluntary turnover back in 1998, almost twice the industry average, it relied on exit interviews and surveys to determine the cause. Those methods pointed to excessive workload and inadequate pay, so Fleet responded with policies aimed at relieving stress and pay adjustments. But turnover continued to rise.

The company dug deeper. Using statistical modeling, executives looked at how local labor markets, size of unit and pay vs. market rates played a role. This revealed that pay levels had the weakest impact on actual turnover, opposite of what surveys suggested. The modeling determined that a 10% boost in all pay levels would reduce turnover by less than one percentage point.