Employee Attraction & Retention: From Research to Reality Todd Harris, Ph.D. PI Worldwide University of Massachusetts – Am...
The Current Landscape   <ul><li>Employee attraction and retention is more critical now than ever before. </li></ul><ul><li...
Today’s Roadmap   <ul><li>I’m going to be sharing cutting-edge best practices in the area of employee attraction and reten...
Background Statistics   <ul><li>The Bureau of Labor Statistics (BLS) reports: </li></ul><ul><ul><li>OVERALL Voluntary Turn...
Turnover by Industry
Turnover by Industry
Turnover can be either functional or dysfunctional for individuals and organizations…
Negative Consequences –  Organization   <ul><li>Billions of dollars in lost productivity. </li></ul><ul><li>Increased recr...
Negative Consequences –  Individual   <ul><li>Loss of income. </li></ul><ul><li>Loss of seniority/non-vested benefits. </l...
Positive Consequences <ul><li>Improved performance. </li></ul><ul><ul><li>Nonproductive employees leave. </li></ul></ul><u...
On balance, turnover is typically damaging to the organization.  So, how do we build an organization that will consistentl...
Context:  The Modern Organization   <ul><li>Employees today have an increasing expectation of working for organizations th...
BP 1: Strategic Investment   <ul><li>Make HR Decisions in a rational, strategic way. </li></ul><ul><li>Where are the talen...
BP 2: Work the Data   <ul><li>The HR function within organizations is becoming more rigorous and data-oriented. </li></ul>...
BP 3: Job Analysis  <ul><li>It sounds obvious – hire the right people in the first place. </li></ul><ul><li>Do you have a ...
BP 4: Are Employees Embedded?   <ul><li>What is “job embeddedness?” </li></ul><ul><ul><li>FIT:  How well the person fits w...
BP 5: Watch Early Interactions   <ul><li>New employees form impressions of the organization immediately.  </li></ul><ul><l...
BP 6: High-Risk Groups   <ul><li>What does the research tell us about who, on average, may be more likely to quit? </li></...
BP 7: Identify Growth  Opportunities   <ul><li>Survey findings consistently indicate that providing superior growth and de...
BP 8: Develop Great Leaders   <ul><li>Stability and excellence of management ranks is key. </li></ul><ul><li>Do your emplo...
BP 9: Monitor Satisfaction   <ul><li>One of the most robust and consistent findings in organizational psychology is that s...
BP 10: Job Design   <ul><li>Design jobs in such a way to promote: </li></ul><ul><ul><li>Interdependence </li></ul></ul><ul...
1.  STRATEGIC INVESTMENT   1   2  3 2.  WORK THE DATA     1   2  3 3.  ANALYZE THE JOB   1   2  3 4.  ARE EMPLOYEES EMBEDD...
Retention Action Plan   <ul><li>What specific steps can my organization and I take to gain improvement in our weakest area...
<ul><li>THANK-YOU! </li></ul>http://www.piworldwide.com  |  [email_address] @piworldwide
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Employee Attraction and Retention - Research To Reality

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Todd Harris, Ph.D., director of research for PI Worldwide, shares cutting-edge best practices for Employee Attraction and Retention.

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  • That completes our review of fourth quarter and full year 2006 results I would now like to turn your attention to our Investor Day presentations…..
  • Transcript of "Employee Attraction and Retention - Research To Reality"

    1. 1. Employee Attraction & Retention: From Research to Reality Todd Harris, Ph.D. PI Worldwide University of Massachusetts – Amherst
    2. 2. The Current Landscape <ul><li>Employee attraction and retention is more critical now than ever before. </li></ul><ul><li>Why? </li></ul><ul><ul><li>Demographic Factors </li></ul></ul><ul><ul><li>Educational Factors </li></ul></ul><ul><ul><li>Business Factors </li></ul></ul><ul><li>THEN: Compete on products, prices and strategies. </li></ul><ul><li>NOW: Compete on the talent of your people. </li></ul>
    3. 3. Today’s Roadmap <ul><li>I’m going to be sharing cutting-edge best practices in the area of employee attraction and retention. </li></ul><ul><li>Gathered from a wide variety of industries. </li></ul><ul><li>Everything we discuss today is research based. </li></ul><ul><li>The best that science currently has to offer. </li></ul>
    4. 4. Background Statistics <ul><li>The Bureau of Labor Statistics (BLS) reports: </li></ul><ul><ul><li>OVERALL Voluntary Turnover Rate = 23.4% </li></ul></ul><ul><ul><li>OVERALL Median Employee Tenure = 4.0 Years </li></ul></ul><ul><li>Turnover rates higher in summer. </li></ul><ul><li>No large geographic differences. </li></ul><ul><li>Roughly, 1 out of 4 employees quits per year. </li></ul>
    5. 5. Turnover by Industry
    6. 6. Turnover by Industry
    7. 7. Turnover can be either functional or dysfunctional for individuals and organizations…
    8. 8. Negative Consequences – Organization <ul><li>Billions of dollars in lost productivity. </li></ul><ul><li>Increased recruitment and selection costs. </li></ul><ul><li>Increased training and development costs. </li></ul><ul><li>Increased organizational disruption. </li></ul><ul><li>Possible demoralization of “survivors.” </li></ul>
    9. 9. Negative Consequences – Individual <ul><li>Loss of income. </li></ul><ul><li>Loss of seniority/non-vested benefits. </li></ul><ul><li>Possible loss of friendships/important social contacts. </li></ul><ul><li>Possible family disruptions. </li></ul>
    10. 10. Positive Consequences <ul><li>Improved performance. </li></ul><ul><ul><li>Nonproductive employees leave. </li></ul></ul><ul><ul><li>Negative attitudes that reduced group output removed. </li></ul></ul><ul><ul><li>Entrenched conflict reduced. </li></ul></ul><ul><li>New employees bring fresh approaches, new energy and innovative ideas. </li></ul><ul><li>Creates room for internal growth and promotion. </li></ul>
    11. 11. On balance, turnover is typically damaging to the organization. So, how do we build an organization that will consistently retain key performers?
    12. 12. Context: The Modern Organization <ul><li>Employees today have an increasing expectation of working for organizations that: </li></ul><ul><ul><li>Have leaders who coach and collaborate. </li></ul></ul><ul><ul><li>Invest in training and development. </li></ul></ul><ul><ul><li>Balance work and other demands flexibly. </li></ul></ul><ul><ul><li>Focus on results, not bureaucracy. </li></ul></ul><ul><ul><li>Offer a sense of personal meaning and connection. </li></ul></ul><ul><ul><li>Deploy best in class technology. </li></ul></ul>
    13. 13. BP 1: Strategic Investment <ul><li>Make HR Decisions in a rational, strategic way. </li></ul><ul><li>Where are the talent pools within your organization that are truly critical to your strategy and future success? </li></ul><ul><li>How do we compete, and what must we execute? </li></ul><ul><li>Probably no more than 10% of jobs or functions. </li></ul><ul><li>May NOT always be managerial, upper-echelon jobs. </li></ul><ul><li>May NOT always be the jobs that are critical now. </li></ul>
    14. 14. BP 2: Work the Data <ul><li>The HR function within organizations is becoming more rigorous and data-oriented. </li></ul><ul><li>There is gold in numbers. </li></ul><ul><li>Measure and analyze potential drivers of turnover: </li></ul><ul><ul><li>Internal: Personality, intelligence, education, experience, promotion history. </li></ul></ul><ul><ul><li>External: Job markets, functions, managers. </li></ul></ul><ul><li>Employees who are more likely to leave can be reliably identified via combinations of factors. </li></ul>
    15. 15. BP 3: Job Analysis <ul><li>It sounds obvious – hire the right people in the first place. </li></ul><ul><li>Do you have a process in place where the knowledge, skills and abilities (KSA’s) required for success in a given job are consistently identified? </li></ul><ul><li>Multiple sources, multiple perspectives. </li></ul>
    16. 16. BP 4: Are Employees Embedded? <ul><li>What is “job embeddedness?” </li></ul><ul><ul><li>FIT: How well the person fits with his or her work, workplace and community. </li></ul></ul><ul><ul><li>LINKS: Richness of personal relationships with co-workers, friendships, and the degree to which others depend on them. </li></ul></ul><ul><ul><li>SACRIFICE: The things that employees would need to give up if they left their jobs. </li></ul></ul><ul><li>People who are embedded are more likely to stay in their jobs, even after controlling for general job satisfaction. </li></ul>
    17. 17. BP 5: Watch Early Interactions <ul><li>New employees form impressions of the organization immediately. </li></ul><ul><li>Research has demonstrated that events that occur in the first hours and days can strongly predict turnover six and twelve months later. </li></ul><ul><li>Clear and early communication about culture and values. </li></ul><ul><li>Frequent check-ins from multiple sources. </li></ul><ul><li>Don’t leave early interactions to chance. </li></ul>
    18. 18. BP 6: High-Risk Groups <ul><li>What does the research tell us about who, on average, may be more likely to quit? </li></ul><ul><ul><li>Lower-tenured employees (especially African-Americans). </li></ul></ul><ul><ul><li>Women (especially professionals/managers). </li></ul></ul><ul><ul><ul><li>Important Moderating Factors (e.g. work group composition, diversity climate, etc.). </li></ul></ul></ul><ul><ul><li>Poor performers. </li></ul></ul><ul><ul><li>Jobs with high historical attrition rates. Two possibilities here: </li></ul></ul><ul><ul><ul><li>High job availability. </li></ul></ul></ul><ul><ul><ul><li>Job not desirable or satisfying. </li></ul></ul></ul>
    19. 19. BP 7: Identify Growth Opportunities <ul><li>Survey findings consistently indicate that providing superior growth and development opportunities can reduce turnover. </li></ul><ul><li>Training and development is a key part of the “total rewards package” that can be offered to employees. </li></ul><ul><li>Promotions, mobility, pay growth. </li></ul><ul><li>Continuing employability depends on continuing skill development. </li></ul><ul><li>Don’t ignore older workers. </li></ul>
    20. 20. BP 8: Develop Great Leaders <ul><li>Stability and excellence of management ranks is key. </li></ul><ul><li>Do your employees view managers as: </li></ul><ul><ul><li>Committed to the long haul? </li></ul></ul><ul><ul><li>Committed to their personal growth? </li></ul></ul><ul><li>A significant predictor of employee longevity is the longevity of his or her direct manager or supervisor. </li></ul>
    21. 21. BP 9: Monitor Satisfaction <ul><li>One of the most robust and consistent findings in organizational psychology is that satisfied employees are less likely to leave. </li></ul><ul><li>Frequently monitor satisfaction via both quantitative and qualitative means. </li></ul>
    22. 22. BP 10: Job Design <ul><li>Design jobs in such a way to promote: </li></ul><ul><ul><li>Interdependence </li></ul></ul><ul><ul><li>Feedback from others </li></ul></ul><ul><ul><li>Social Support </li></ul></ul><ul><ul><li>Interaction outside of the organization </li></ul></ul>
    23. 23. 1. STRATEGIC INVESTMENT 1 2 3 2. WORK THE DATA 1 2 3 3. ANALYZE THE JOB 1 2 3 4. ARE EMPLOYEES EMBEDDED? 1 2 3 5. WATCH EARLY INTERACTIONS 1 2 3 6. HIGH-RISK GROUPS 1 2 3 7. IDENTIFY GROWTH OPPORTUNITIES 1 2 3 8. DEVELOP GREAT LEADERS 1 2 3 9. MONITOR SATISFACTION 1 2 3 10. JOB DESIGN 1 2 3 NEEDS IMPROVEMENT ACCEPTABLE GOOD TOTAL SCORE (POSSIBLE 30) Retention Rating Form
    24. 24. Retention Action Plan <ul><li>What specific steps can my organization and I take to gain improvement in our weakest areas? </li></ul><ul><ul><li>__________________________________________ </li></ul></ul><ul><ul><li>__________________________________________ </li></ul></ul><ul><ul><li>__________________________________________ </li></ul></ul><ul><ul><li>__________________________________________ </li></ul></ul><ul><ul><li>__________________________________________ </li></ul></ul>
    25. 25. <ul><li>THANK-YOU! </li></ul>http://www.piworldwide.com | [email_address] @piworldwide

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