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Maximizing retention and minimizing attrition March 2011


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Half day open interactive workshop in Toronto on reducing labour turnover.

Half day open interactive workshop in Toronto on reducing labour turnover.

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  • 1. Maximizing retention and minimizing attrition
    by Toronto Training and HR
    March 2011
  • 2. Contents
    3-4 Introduction to Toronto Training and HR
    5-7 Definitions
    8-10 Costs of attrition
    11-17 Reasons for leaving
    18-21 Improving morale and motivation
    22-25 Drivers of employee commitment and retention
    26-27 Handling a resignation
    28-29 Interview mistakes
    30-31 Job satisfaction
    32-33 Retaining female employees after maternity
    34-41 Exit interviews
    42-47 Managing turnover
    48-49 Drill A
    50-86 Examples
    87-88 Drill B
    90-98 Case studies
    99-100 Conclusion and questions
    Page 2
  • 3. Page 3
  • 4. Page 4
    Introduction to Toronto Training and HR
    Toronto Training and HRis a specialist training and human resources consultancy headed by Timothy Holden
    10 years in banking
    10 years in training and human resources
    Freelance practitioner since 2006
    The core services provided by Toronto Training and HR are:
    • Training course design
    • 5. Training course delivery
    - Reducing costs
    • Saving time
    • 6. Improving employee engagement & morale
    • 7. Services for job seekers
  • Page 5
  • 8. Page 6
    Definitions 1 of 2
    Employee turnover
  • 9. Page 7
    Definitions 2 of 2
    Measuring employee turnover
    Measuring retention
  • 10. Page 8
    Costs of attrition
  • 11. Page 9
    Costs of attrition 1 of 2
    Administration of the resignation
    Recruitment and selection costs, including administration 
    Covering the post during the period in which there is a vacancy
    Onboarding training for the new employee
  • 12. Page 10
    Costs of attrition 2 of 2
    Studies have shown it costs:
    Up to 18 months’ salary to lose and replace a manager or professional
    Up to six months’ salary to lose and replace an hourly worker
  • 13. Page 11
    Reasons for leaving
  • 14. Page 12
    Reasons for leaving 1 of 6
    Quality supervision (support, feedback,
    Frequent people contact
    Co-worker support
    Mentoring and coaching
    Fair treatment
    Assistance when mistakes are made
  • 15. Page 13
    Reasons for leaving 2 of 6
    Support when personal problems arise
    Meaningful, positive feedback
    Co-workers who care about doing a good job
    A sense of belonging and friendship
    Inspiring leadership
    Properly managed critical feedback and discipline
    Doing work that makes a difference and helps others
  • 16. Page 14
    Reasons for leaving 3 of 6
    Input into decisions that affect the employee
    Meaningful performance appraisals
    Scope of work and job variety
    Clarity of duties and expectations
    Fair / competitive wages and benefits
    Time away from work for family and personal lives
    Recognition, rewards and acknowledgements
    Having the materials, equipment and technology needed
  • 17. Page 15
    Reasons for leaving 4 of 6
    Job security
    Hours of work (schedule)
    Autonomy and independence
    Flexible hours
    Opportunity to learn new skills and be challenged
    Training and career development opportunities
  • 18. Page 16
    Reasons for leaving 5 of 6
    1. Lack of trust in senior leaders
    2. Insufficient pay
    3. Unhealthy/undesirable culture
    4. Lack of honesty/integrity/ethics
    5. Lack of opportunity for training and development
  • 19. Page 17
    Reasons for leaving 6 of 6
    1. Insufficient pay
    2. Unexpected job/career opportunity
    3. Decision to change careers
    4. Lack of work-life balance
    5. Lack of opportunity for training and development
  • 20. Page 18
    Improving morale and motivation
  • 21. Page 19
    Improving morale and motivation 1 of 3
    Ensure challenges and learning opportunities on the job
    provide training and development opportunities
    Ensure job expectations and performance standards are
    clear, reasonable and understood
    Advocate for adequate wages and benefits
    Maximize employee involvement in making decisions
    e.g. Ask employees for their ideas on how to improve
    Establish trust among colleagues and of the supervisor Walk your talk
  • 22. Page 20
    Improving morale and motivation 2 of 3
    Work toward removing barriers that interfere with doing things well and efficiently (e.g., change policies, procedures and practices that are too rigid, out-dated, unclear or bureaucratic)
    Listen to and validate concerns-ask employees to propose
    solutions to the problems they present
    Be creative with the ways in which you reward good effort and performance-say “thank you”
    Provide honest, constructive critical feedback
    Deal with problem performance and “problem employees” with fairness, humanity, consistency and courage
  • 23. Page 21
    Improving morale and motivation 3 of 3
    Deal with conflict as soon as you are aware it exists-name underground issues and support the group to resolve them
    Communicate directly and honestly-give people accurate information about plans and changes as soon as possible
  • 24. Page 22
    Drivers of employee commitment and retention
  • 25. Page 23
    Drivers of employee commitment and retention 1 of 3
    I feel my career goals can be met at this employer
    I feel a sense of belonging at work
    My work gives me a sense of accomplishment
    I am paid fairly
    Senior leaders treat employees as valuable assets
    People are rewarded for their performance
    I can balance my work and life
    I receive recognition for my accomplishments
    My supervisor supports me
  • 26. Page 24
    Drivers of employee commitment and retention 2 of 3
    Senior management interest in employee wellbeing
    Opportunities to learn and develop new skills
    Base salary
    My manager understands what motivates me
    Satisfaction with organization’s people decisions
    Retirement options
    Senior management acts to ensure the organization’s long-term success
  • 27. Page 25
    Drivers of employee commitment and retention 3 of 3
    Fairly compensated compared to others doing similar work in my organization
    Appropriate amount of decision-making authority to do my job well
    Reputation of organization as a good employer
  • 28. Page 26
    Handling a resignation
  • 29. Page 27
    Handling a resignation
    No surprises
    No dishonesty
    No dependence
    No non-competes
    No selfishness
    No defamation
  • 30. Page 28
    Interview mistakes
  • 31. Page 29
    Interview mistakes
  • 32. Page 30
    Job satisfaction
  • 33. Page 31
    Job satisfaction
    1. Work that is challenging or meaningful
    2. Being valued and respected
    3. A good boss
    4. A chance to learn and grow
    5. Fair pay
  • 34. Page 32
    Retaining female employees after maternity
  • 35. Page 33
    Retaining female employees after maternity
    Great policies are essential
    Invest in both manager and employee training
    Agree a timescale with appropriate times of contact to keep women in the business loop on their own terms
    Coaching can boost managers’ skills and reveal unconscious biases
    Make sure that the actions of line managers support family-friendly policies
    “Keeping in touch” days are good for re-engaging returning staff
  • 36. Page 34
    Exit interviews
  • 37. Page 35
    Exit interviews 1 of 7
    Organizational health check
    Reduce employee turnover
    PR tool to recruit applicants in the future
  • 38. Page 36
    Exit interviews 2 of 7
    Select the person carefully who will be undertaking the exit interview
    Ask the right question
    Don’t ask employees to complete long forms written in a questionnaire style
    The interview should be about them
    Time the interview
    Don’t blow up
    Use the information collected
  • 39. Page 37
    Exit interviews 3 of 7
    Prepare goals for the exit interview meeting in advance, including selected questions and topics for exploration
    Hold the meeting early in the departing
    employee’s notice period – don’t leave until the last few days when possibly de-mob happy
    Carry out knowledge transfer meeting(s)
    separately to the exit interview itself
  • 40. Page 38
    Exit interviews 4 of 7
    Follow documented and established exit
    interview procedures
    Receive training in interviewing and listening skills, and how to avoid the basic legal pitfalls
    Conduct exit interview face to face –for better communications
    Listen to the employee and let them do the
    talking, from prompts and questions
  • 41. Page 39
    Exit interviews 5 of 7
    Remain calm, professional, supportive and
    Ask questions that elicit views, feedback and answers
    Ask open ‘what/how/why’ questions rather
    than closed ones
    Avoid using ‘who’ questions or becoming
    too personal
  • 42. Page 40
    Exit interviews 6 of 7
    Take notes or use a prepared questionnaire
    Be consistent, so that everyone leaving the
    company is offered an exit interview, even
    those who are redundant, retiring etc.
    Take action on what is learned from the
    information and feedback, particularly as
    trends emerge
  • 43. Page 41
    Exit interviews 7 of 7
    Inform the exiting employee of your desire to collect information that could help improve working conditions
    Ask if the employee prefers talking with you (if you are the supervisor) or someone else, such as another human resources person or a line manager
    Ask the employee to discuss any issues that would be useful to you or the organization
    Tell them that the information will be kept confidential
  • 44. Page 42
    Managing turnover
  • 45. Page 43
    Managing turnover 1 of 5
    Understand why employees leave
    Benchmark your organization against current industry standards and geographical location
    Set clear promotion and development guidelines that are transparent and fair
    Develop effective workplace policies and nurture a positive culture
    Invest in people management training for line managers
  • 46. Page 44
    Managing turnover 2 of 5
    Decide who to retain
    Recognize your organization’s push factors
    Recruit and onboard
    Performance manage-measures
  • 47. Page 45
    Managing turnover 3 of 5
    Take time to plan
    Be objective
    Interview well
    Look for fit
    Offer fair and competitive pay
    Check references
    Avoid hiring out of desperation
  • 48. Page 46
    Managing turnover 4 of 5
    Job previews
    Make line managers accountable for levels of attrition in their teams
    Career development and progression
    Consult employees
    Be flexible
    Avoid the development of a culture of 'presenteeism'
    Job security
    Treat people fairly
    Defend your organization
  • 49. Page 47
    Managing turnover 5 of 5
    Identify why people are staying
    Identify who is at most risk to leave
    Develop strategic organization-wide goals and objectives to improve retention
    Hire the right people
    Create a sense of belonging by using a pre-commencement orientation program
    Ensure a comprehensive job, program, department and organization orientation
    Develop a mentoring program
  • 50. Page 48
    Drill A
  • 51. Page 49
    Drill A
  • 52. Page 50
    Example One-food retail/wholesale industry
  • 53. Page 51
    Example One-food retail/wholesale industry 1 of 3
    By far the majority of all employee departures were voluntary (83%), as opposed to dismissals. It is clear, then, that turnover is primarily an issue of losing productive workers whom the employer would prefer to retain.
    Participants reported an overall employee turnover rate of 38.7% (in Ontario this was 20.2%, with an average voluntary turnover rate of 31.7%.
    The reported turnover rate was highest for part-time non-management staff (64.9%).
  • 54. Page 52
    Example One-food retail/wholesale industry 2 of 3
    Facilities located in urban areas experienced a higher rate of overall turnover (40.2%) than those in rural locations (28.1%).
    Turnover varied with the type of ownership structure:
    the rate was highest for chain facilities (40.9%), followed by independent facilities (31.8%) and franchises (27.2%).
    The size of operation did not appear to influence the rate of turnover.
  • 55. Page 53
    Example One-food retail/wholesale industry 3 of 3
    Resist calling employees in to work during scheduled time off
    Maintain an employee training program
    Offer competitive pay rates
    Engage with employees and reward good behaviour
  • 56. Page 54
    Example Two-national hotel chain
  • 57. Page 55
    Example Two-national hotel chain 1 of 10
    The construct of empowerment has two directions: the transference of power and authority through structural manipulation or the perception of power and authority at the psychological level. Structural empowerment implies the ability of one unit to modify the conditions of other unit through external influences.
    Four dimensions have been identified that contribute to the construct:
    Meaning, Competence, Self-determination and Impact
  • 58. Page 56
    Example Two-national hotel chain 2 of 10
    Duration of job tenure within an organization will be positively associated with overall empowerment level.
    Job levels within an organization will be positively associated to perceived empowerment.
    An employee’s formal educational attainment will be positively related to perceived empowerment.
  • 59. Page 57
    Example Two-national hotel chain 3 of 10
    Perceived employee empowerment may exist at different levels within the same organization.
    Studies in 1992 identified that empowerment consisted of sharing four key ingredients with employees: information about organizational performance, rewards contingent on organizational performance, knowledge on how to contribute to organizational performance and the power to make decisions that can influence corporate direction and performance.
  • 60. Page 58
    Example Two-national hotel chain 4 of 10
    Measuring commitment at the individual psychological level was developed in 1990 with three dimensions:
    Affective (desire-based) commitment measures an employee’s emotional attachment to their organization. It reflects the acceptance and integration of organizational values, showing an increased willingness to remain with an organization; it is the ‘want to’ aspect of commitment.
  • 61. Page 59
    Example Two-national hotel chain 5 of 10
    Continuance (cost-based) commitment results from an employee’s measure of potential loss in invested time and effort if they leave the organization. Employees who have invested larger amounts of time and effort into their organization should be less willing to leave. They feel like they ‘have to’ stay with their current organization; there are fewer employment options outside of their current situation and leaving would provide a less desirable outcome.
  • 62. Page 60
    Example Two-national hotel chain 6 of 10
    Normative (obligation-based) commitment stems from a perceived duty towards the organization developed through internal socialization processes. Both pre-entry (familial, early childhood, cultural) and post-entry (organizational) socialization processes shape the level of normative commitment.
  • 63. Page 61
    Example Two-national hotel chain 7 of 10
    The length of job tenure within an organization is likely to be positively associated with continuance organizational commitment.
    Job levels within an organization will be positively associated with both affective and normative organizational commitment.
    Education level of employees will be negatively associated with continuance organizational commitment.
  • 64. Page 62
    Example Two-national hotel chain 8 of 10
    Results indicate that tenure and all four dimensions of empowerment are closely related. Each dimension of empowerment increased as job tenure increased; perceived personal meaning, ability to perform their work tasks, feeling of personal control in outcomes and direct impact all increased with time investment with their current organization. Part of this may be explained through the economic concept of the “learning effect”, where additional competency is gained through the simple repetition of tasks as they are performed over a period of time.
  • 65. Page 63
    Example Two-national hotel chain 9 of 10
    Key transition periods appeared at the one-year period, with a significant increase in perceived empowerment for workers who remain beyond one year. Management should take note of this as they monitor their employees for skill development; perceived empowerment should rise within the first year of employment.
  • 66. Page 64
    Example Two-national hotel chain 10 of 10
    However, tenure seems to only be related to an increased level of continuance commitment. The longer a person works for an organization, the greater their “need‟ to stay,
    perhaps due to perceived lack of attractive alternatives externally. While the survey did not establish directionality of influence, it would appear that highly empowered employees are also longer tenure employees. From a HR perspective, seeking methods that extend tenure should positively influence empowerment levels while increased an employees’ perceived need to stay.
  • 67. Page 65
    Example Three-librarians
  • 68. Page 66
    Example Three-librarians 1 of 6
    Determine how many librarians leave the profession for reasons other than retirement and determine when and why they leave.
    Survey graduates of university programs
    Conduct regular quality of work life or job satisfaction surveys of members
    Conduct exit interviews with those who leave the profession
  • 69. Page 67
    Example Three-librarians 2 of 6
    Working conditions
    Job enrichment
  • 70. Page 68
    Example Three-librarians 3 of 6
    Entry-level (first 5-7 years)
    Mid-career (8-14 years)
    Beyond mid-career (15 years and over)
  • 71. Page 69
    Example Three-librarians 4 of 6
    Salary and benefits
    Position responsibilities
    Opportunities for growth and development
    Ability to move laterally to learn new skills or to make a career change
    Potential for promotion
    Quality of work life
    Relationships with supervisor and colleagues
    Work environment and image/reputation of the library and institution
  • 72. Page 70
    Example Three-librarians 5 of 6
    Working with institutions to systematically increase beginning salaries as well as salaries of current employees in order to remain competitive
    Advocating for improved benefit plans to meet the needs of employees and to provide choices
    Developing position descriptions that meet the needs of the library andthe employee
  • 73. Page 71
    Example Three-librarians 6 of 6
    Providing on-going training and development opportunities both within the library and outside the library
    that benefit individuals in their current position and their future positions;
    ŒCreating new opportunities for employees to move within the organization, either laterally to learn new
    skills or upward into management;
    ŒFostering workplaces that have a high quality of life and are stimulating work environments; and
    ŒCreating multiple opportunities for mentoring.
  • 74. Page 72
    Example Four-armed forces
  • 75. Page 73
    Example four-armed forces 1 of 10
    a) Pay and allowances – compensation for work
    b) The housing portfolio – accommodations
    c) The injured, retired and veterans – care of injured personnel
    d) The military family
    e) Transitions including recognition, work expectations and conditions of service
    f) The future
  • 76. Page 74
    Example four-armed forces 2 of 10
    a) Post Living Differential Program – stabilizes the cost of living of forces members and families with respect to regional differences to ensure that they enjoy a relative and predictable standard of living no matter where they serve)
    b) Compassionate Travel Assistance – to provide transportation at public expense for regular force
    members and their spouses due to the serious illness or death of an immediate family member of the forces member or spouse
  • 77. Page 75
    Example four-armed forces 3 of 10
    a) Provision of emergency childcare services when short notice deployments are announced
    b) Provision of the Family Care Assistance Program. This gives financial assistance to help offset family care costs that the member pays that are in excess of those normally paid
    c) Use of the housing relocation service
    d) Introduction of the Military Quarters Repair Program (housing)
  • 78. Page 76
    Example four-armed forces 4 of 10
    e) Creation of operational trauma and stress support centres
    f) Providing employment assistance to spouses when families move to help them find jobs and maintain qualifications
    g) Improving access of forces programs and services in peoples’ language of choice
  • 79. Page 77
    Example four-armed forces 5 of 10
    h) Numerous initiatives aimed at improving pay and benefits (e.g., acting pay, pension reform, special service allowances, overtime)
    i) Second language-training program for spouses
  • 80. Page 78
    Example four-armed forces 6 of 10
    1) Develop flexible terms of service and employ contemporary work practices to meet a broader range of organizational and personal needs and to attract and retain “skilled” workers based upon Canadian demographic trends.
    2) Create career fields that enhance career flexibility through transition assistance and choice, and enable the rotation of personnel, providing respite from operational tempo and access to developmental opportunities.
  • 81. Page 79
    Example four-armed forces 7 of 10
    3) Improve participation in employment and career decisions while improving the match between
    personal aspirations and employment. This could involve advertising available positions and inviting
    internal application based upon a merit system.
    4) Maintain policies to ensure a harassment free environment and continued emphasis on diversity of all forms.
  • 82. Page 80
    Example four-armed forces 8 of 10
    5) Develop fair and effective performance evaluation procedures that motivate, provide performance feedback and developmental opportunities, that apply at the individual and team level.
    6) Maintain effective mechanisms of voice and conflict resolution processes that resolve issues at the lowest level and offer efficient recourse to those who believe they have been treated unfairly.
  • 83. Page 81
    Example four-armed forces 9 of 10
    7) Provide members with adequate spiritual, medical, dental, social and other support in times of both war and peace.
    8) Develop policies that support military families as an essential contribution to operational effectiveness and the maintenance of morale. Special effort will be taken to ensure the support and care of military families during operational deployments and the re-integration of personnel after deployments.
  • 84. Page 82
    Example four-armed forces 10 of 10
    9) Recognize the value of exceptional performance through a system of commendations, honours and
    awards, the significance of which must be clearly recognized and viewed with credibility.
  • 85. Page 83
    Example Five-physicians
  • 86. Page 84
    Example five-physicians 1 of 3
    Relationships with patients
    Relationships with colleagues
    Family issues
    Personal growth
    Freedom to provide quality care
    Availability of office and hospital resources
    Prestige for role as physician
  • 87. Page 85
    Example five-physicians 2 of 3
    Cost containment efforts by the hospital
    Amount and quality of personal time
    Opportunities for research and teaching
    Approaches to utilization review by the hospital
    Autonomy over non-medical decisions
    Administrative responsibilities
    Organizational climate/culture of the hospital
    Autonomy over medical decisions
  • 88. Page 86
    Example five-physicians 3 of 3
    Physician retention will be facilitated by “reasonable” work loads and shared practice philosophy
    Identify physicians with an inclination for the life style provided by the community
    Ensure evolving family needs are identified and addressed
  • 89. Page 87
    Drill B
  • 90. Page 88
    Drill B
  • 91. Page 89
    Case study A
  • 92. Page 90
    Case study A
  • 93. Page 91
    Case study B
  • 94. Page 92
    Case study B
  • 95. Page 93
    Case study C
  • 96. Page 94
    Case study C
  • 97. Page 95
    Case study D
  • 98. Page 96
    Case study D
  • 99. Page 97
    Case study E
  • 100. Page 98
    Case study E
  • 101. Page 99
    Conclusion & Questions
  • 102. Page 100