Techniques for employee retention

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Applicable approaches in employee retention

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Techniques for employee retention

  1. 1. Techniques for Employee Retention Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
  2. 2. “81% of all organisations perceive turnover as having a negative effect on their effectiveness.” (Source: TalentDrain)
  3. 3. The results of a comprehensive survey indicated that passive jobseekers would readily move into another firm, on finding better opportunities. Passive jobseekers are those who are currently in positions, but if “something caught their eyes” they would investigate the opportunities. (Source: Journal Register Company)
  4. 4. Retention Target Group Let Go Re-Recruit Don’t Care Take Care Turnover Intention Employee Value High Low Low High Risk of Departure Source: Megha Kapil, Process of Retention
  5. 5. Business Case for Retention • The cost of high staff turnover can be distressing. • Corporate objectives require commensurate manning of organisational positions. • Disruption of organisational strategic thrust can be triggered by attrition. • Multiplier effects of a surrogate’s learning curve. • Retention problem may give rise to loss of trade secrets to antagonistic competitors. • Attrition-induced delayering can bring about structural paralysis. • Compound stakeholder disenfranchisement can lead to loss of core customer base. • Continual exit of key workers can cause domino effect among employees. Source: Elijah Ezendu, Managing Employee Retention
  6. 6. Factors that Determine an Organisation’s Ability to Attract and Retain Employees External Influences Those outside the organisation, such as the regional labour market or overall economic climate Attraction & Retention Organisational Influences Employment programmes, policies and the variety of other Factors which make up The working climate or culture in an employer Individual Influences Characteristics of individual employees that may indicate the likelihood of their joining and staying with a given employer Source: The Recruitment Communications Company
  7. 7. Key Drivers of Staff Turnover • The total cost of moving into another career • Perceived benefits from employer • Perceived benefits from another organisation • Perceived benefit from personal business • Family influence • Religious beliefs • Personal values • Pressure of associates and friends • Medical reasons
  8. 8. Best Practices in Keeping and Motivating Employees 1. Develop an attractive employee value proposition. 2. Create a total reward structure that includes more than compensation. 3. Give feedback on employee performance on a regular basis. 4. Be flexible in terms of work-life balance. 5. Create a culture of engagement. 6. Train managers to be effective. Source: Lisbeth Claus, Employee Retention
  9. 9. Exercise List 10 reasons why employees stay in a firm. ………………………………………………………………………… …………………………………………………………………… …………………………………………………………………… …………………………………………………………………… …………………………………………………………………… …………………………………………………………………… ……………………………………………………………………
  10. 10. The Basic Reward Technique for Retention This technique emphasizes the use of basic rewards to stimulate employees interests and boost loyalty. It’s simply an ordinary employer response devoid of systematic structures and complex analysis.
  11. 11. Some Reward Suggestions • Money • Recognition • Time off • A piece of the action • Favorite work • Advancement • Freedom • Personal Growth • Fun • Prizes Source: Michael LeBoeuf, The Greatest Management Principle in the World
  12. 12. Expectation Management Technique for Retention This entails managing organisations expectation from employee on one hand and employee expectation from the organisation on the other hand, with the aim of keeping both parties within reasonableness thus enhancing the bond between them.
  13. 13. Issues in Expectation Management • Performance Management System • Key Performance Indicators • Key Result Areas • Career Path Analysis • Independent Development Plan • Red Tape • Glass Ceiling • Competitive Compensation • Congenial Work Environment • Mutual value
  14. 14. Myths About Employee Morale Which Prevent Companies From Achieving Retention Success 1. People most often leave a company for more pay. 2. Incentive programmes produce long-term profits and improve productivity and morale. 3. People don’t want more responsibility. 4. Loyalty is dead. 5. Improving employee satisfaction is expensive. 6. Employee satisfaction is fluff. 7. Supervisors are the problem. 8. My company/industry/people are different. Source: Employee Retention Strategies
  15. 15. Employee Life Cycle Technique of Retention This involves application of various solution options at each stage of employee life cycle, thereby enlivening the key touch points for relationship enhancement between the organisation and employees.
  16. 16. Using Employee Life Cycle Technique for Retention Source: Retensa
  17. 17. Application of Motivational Theories for Retention • Maslow's Theory • Herzberg's Theory
  18. 18. The Japanese Retention Technique In this case, Japanese and many foreign firms operating in Japan used the concept of job security and a widespread promotion based on age in service for indulging and encouraging employees to remain till point of final retirement.
  19. 19. Exercise 1. Differentiate basic reward technique from expectation management technique for retention. 2. Explain implementation of employee life cycle technique for retention, emphasizing why its considered best-fit.
  20. 20. Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.
  21. 21. Thank You

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