How to
Retain and
Motivate Staff
Tom Vovers December 2013
Who is this guy?

“HR Veteran working
across industry in
Viet Nam”

2013

2007
2003
2002
Australia
Viet Nam
Thailand
Singa...
What do you know about HR2B?
HR2B "Human Resources to Business"
is a professional services company
focusing on HR in Viet ...
Agenda

Measurement
Costs
5 Actions
Measurement
What gets Measured gets
Managed
1.
2.
3.
4.
5.
6.
7.

Retention rate
Turnover rate
Voluntary turnover rate
Average LOS of ...
Retention Rate
Number of
stayers

Divided
by

Number of
personnel at
beginning of
period

( 90

÷

100 )

Times 100

X

Eq...
Turnover Rate
Number of
leavers

Divided
by

Number of
people
employed

( 50

÷

175 )

Times 100

X

100

Equals

Your tu...
Voluntary Turnover
Number of
voluntary
leavers

Divided by

Number of
people
employed

( 12

÷

175 )

Times 100

X

100

...
Average Length of Service
Total months
“stayed”

Divided by

Number of current
employees

Equals

Average tenure of
“staye...
Average LOS - Leavers
Total months
worked

Divided by

Number of “leavers”

Equals

Average tenure of
“leavers”

123

÷

1...
‘Special’ Characteristics Rate
Number of
leavers
supervised
by Phuc

Divided
by

Total number of
leavers

(3

÷

12 )

Tim...
Vacancy Rate
Number of
vacant
positions

Divided by

Total number of
positions

(7

÷

25 )

Multiplied by
100

X

100

Eq...
Using Measurement
Tracking - Start today
Reporting - Agree with your boss
Managing - Add to Managers life
Sharing - Commun...
Cost
Turnover - so what?
Measuring Cost
Direct Costs

Opportunity Costs

● Relatively easy to
measure with lower
error of measurement
● Focus on pr...
Calculating Cost of Turnover
1. Costs to off‐board
employee.
2. Cost‐per‐hire for
replacement.
3. Transition costs,
includ...
Short Cut Turnover Cost
Turnover costs are often estimated to be
● 100%
● 300%
● of the annual base salary
● of replaced e...
Action
How to Retain and Motivate Staff
What can you do about Turnover?

Desirable

Redundancy.
End of Contract

“Natural” Turnover

UnDesirable

Voluntary Turnov...
5 Ways to Retain and Motivate
1.
2.
3.
4.
5.

Employee Value Proposition
Onboarding
Performance Management
Employee Engage...
1) EVP - Firing Starts with Hiring
For employees, the EVP – Employee Value
Proposition – explains why candidates choose
to...
2) Onboarding
An effective onboarding process:
1. Analyzes and efficiently addresses skill gaps required to
meet performan...
3) Performance Management
Aligns performance with strategic direction of
the company
1. Optimizes performance contribution...
4) Employee Engagement
Drivers
1. Strategic Alignment
2. Trust in Senior Leadership
3. Immediate Manager Working Relations...
5) Different Career Paths
High Potentials
Top Talent on generalist career track
Require a high degree of learning agility
...
Thanks for Coming
Good luck in
Retaining and
Motivating your Staff !
How to retain and motivate Staff DaNang December 2013
How to retain and motivate Staff DaNang December 2013
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How to retain and motivate Staff DaNang December 2013

  1. 1. How to Retain and Motivate Staff Tom Vovers December 2013
  2. 2. Who is this guy? “HR Veteran working across industry in Viet Nam” 2013 2007 2003 2002 Australia Viet Nam Thailand Singapore Cambodia Myanmar Pakistan India 2001 1996 1993 1991 1989
  3. 3. What do you know about HR2B? HR2B "Human Resources to Business" is a professional services company focusing on HR in Viet Nam. HR2B has deep practical experience of the Viet Nam market that enables us to create Search results that last.
  4. 4. Agenda Measurement Costs 5 Actions
  5. 5. Measurement
  6. 6. What gets Measured gets Managed 1. 2. 3. 4. 5. 6. 7. Retention rate Turnover rate Voluntary turnover rate Average LOS of current employees Average LOS of Leavers Special characteristics Leavers Vacancy rate.
  7. 7. Retention Rate Number of stayers Divided by Number of personnel at beginning of period ( 90 ÷ 100 ) Times 100 X Equals Your retention rate = 90% 100 Calculating your retention rate (stayers) The number of “stayers” (employees who remain at the end of calculation period) divided by the number of employees you had at the beginning of your calculation period times 100 equals your retention rate. Example of Retention Rate Calculation If you have 100 employees starting the first day of the month, and 90 employees at the end of the month, you have lost 10 of employees. Your retention rate is 90 percent.
  8. 8. Turnover Rate Number of leavers Divided by Number of people employed ( 50 ÷ 175 ) Times 100 X 100 Equals Your turnover rate = 28.6% Calculating your turnover rate (leavers) The number of “leavers” (employees terminating during your calculation period) divided by the total number of people employed during your calculation period times 100 equals your turnover rate. Example of Turnover Rate Calculation You had 175 people in your employment in January. Fifty employees left by the end of the month. A simple turnover rate is 50 divided by 175, which equals 28.6 percent.
  9. 9. Voluntary Turnover Number of voluntary leavers Divided by Number of people employed ( 12 ÷ 175 ) Times 100 X 100 Equals Your voluntary turnover rate = 6.9% Calculating your voluntary turnover rate The number of employees who left voluntarily divided by the number of employees you had during your calculation period times 100 equals the voluntary turnover rate. Example of Voluntary Turnover Rate Calculation Fifty total employees left, but only 12 were dissatisfied with the organizational policy, compensation, and/or career opportunities. Good exit interview strategies should help you determine which employees terminated voluntarily. Involuntary - Of the other 38, 15 left when you cut a department, 7 women followed their husbands to another part of VietNam, 11 were terminated for poor performance, and 5 became ill and could no longer work. These numbers indicate involuntary turnover.
  10. 10. Average Length of Service Total months “stayed” Divided by Number of current employees Equals Average tenure of “stayers” 122 ÷ 10 = 12.2 months Calculating the average tenure of your employees To compute the average tenure of workers, list each worker and the number of months the worker has been at the organization. In this example, the time period is calculated in months. Your tenure rate can be calculated by months, years, or other time periods. The sum of months worked by all current employees divided by the number of employees you have today equals the tenure of “stayers”.
  11. 11. Average LOS - Leavers Total months worked Divided by Number of “leavers” Equals Average tenure of “leavers” 123 ÷ 13 = 9.46 months A calculation on longevity (total number of months worked before quitting) may highlight the point at which employees “fall off”, allowing you to rethink your organizational response. It may be useful for you to identify the average tenure of employees who left within the previous 12 months, or within any time frame that accurately represents the trend you are researching. Calculating the average tenure of your leavers The sum of months worked by “leavers” who worked in the last 12 months and resigned before today divided by the total number of “leavers” who worked in the last 12 months and resigned before today equals the average tenure of employees who have left over the previous 12 months.
  12. 12. ‘Special’ Characteristics Rate Number of leavers supervised by Phuc Divided by Total number of leavers (3 ÷ 12 ) Times 100 X 100 Equals Your turnover rate for Phuc = 25% Calculating special characteristics of “leavers” The number of “leavers” that display the identified characteristic divided by the total number “leavers” during the calculation period times 100 equals the voluntary turnover rate for that special characteristic. Example of Special Characteristics Calculations For this example, we will look at the number of employees supervised by Mary Jones who leave voluntarily. Of the 12 employees who voluntarily left the organization, 3 were supervised by Nguyen Thanh Phuc..
  13. 13. Vacancy Rate Number of vacant positions Divided by Total number of positions (7 ÷ 25 ) Multiplied by 100 X 100 Equals Your vacancy rate = 28% For some positions, you may wish to determine a vacancy rate to see if there is a trend in a job position. Or, you may wish to determine your overall vacancy rate to see if there is a trend in your organization. Calculating your vacancy rate The number of vacant job-specific positions (or positions within the whole organization), divided by the total number of job-specific positions (or within the whole organization), multiplied by 100 equals your vacancy rate.
  14. 14. Using Measurement Tracking - Start today Reporting - Agree with your boss Managing - Add to Managers life Sharing - Community
  15. 15. Cost Turnover - so what?
  16. 16. Measuring Cost Direct Costs Opportunity Costs ● Relatively easy to measure with lower error of measurement ● Focus on process / transactional improvements ● Easy to use to get what you want from management. ● Requires estimates, scenario planning ● Focus on long‐term and strategic management issues ● Harder to use, but don’t ignore
  17. 17. Calculating Cost of Turnover 1. Costs to off‐board employee. 2. Cost‐per‐hire for replacement. 3. Transition costs, including opportunity costs. 4. Costs from long‐term disruption of talent pipeline.
  18. 18. Short Cut Turnover Cost Turnover costs are often estimated to be ● 100% ● 300% ● of the annual base salary ● of replaced employee (150% commonly used)
  19. 19. Action How to Retain and Motivate Staff
  20. 20. What can you do about Turnover? Desirable Redundancy. End of Contract “Natural” Turnover UnDesirable Voluntary Turnover Voluntary Turnover Expected Unexpected
  21. 21. 5 Ways to Retain and Motivate 1. 2. 3. 4. 5. Employee Value Proposition Onboarding Performance Management Employee Engagement Career Paths for Top Talent
  22. 22. 1) EVP - Firing Starts with Hiring For employees, the EVP – Employee Value Proposition – explains why candidates choose to work for you rather than other potential employers. 1. 2. 3. 4. Attract some, repel others. Focus recruitment efforts. Improve Selection. Speed up integration of new person.
  23. 23. 2) Onboarding An effective onboarding process: 1. Analyzes and efficiently addresses skill gaps required to meet performance standard 2. Provides organizational positioning skills 3. Aligns with organizational values and culture Effective onboarding enables faster cultural integration and achievement of performance standards. It can significantly reduce transition costs
  24. 24. 3) Performance Management Aligns performance with strategic direction of the company 1. Optimizes performance contribution of employees 2. Shapes organizational culture 3. Fully engages employees It all comes down to conversations. Every decision made about performance management should be framed by asking, “Will this help or hinder meaningful conversations.”
  25. 25. 4) Employee Engagement Drivers 1. Strategic Alignment 2. Trust in Senior Leadership 3. Immediate Manager Working Relationship 4. Peer Culture 5. Personal Influence 6. Career Support 7. Developmental Opportunities 8. Employee Recognition 9. Pay Fairness
  26. 26. 5) Different Career Paths High Potentials Top Talent on generalist career track Require a high degree of learning agility High Professionals Top Talent on a specialist career track Have specialized expertise developed over years of focused development Emerging Talent Early career talent with all characteristics of Top Talent but limited developmental experiences and possibly undetermined career path
  27. 27. Thanks for Coming Good luck in Retaining and Motivating your Staff !

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