Employee Retention CEO Conclave Era 2011


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Making Employee Retention Strategy, Cost and Impact of Turnover on your Organization By Golden Opportunities.

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Employee Retention CEO Conclave Era 2011

  1. 1. Retaining People – A Strategy<br />CEO Conclave <br />March 19, 2011<br />Chennai<br />Executive Recruiters Association<br />By<br />Rohin Chawla<br />Golden Opportunities Pvt. Ltd.<br />
  2. 2. When Some One Leaves…<br />The Impact……<br />©1999 - 2011 Golden Opportunities Pvt Ltd<br />
  3. 3. Cost of Temporary person to do the job while it is being filled – Read cost of work lost by this person.<br />Cost of lower productivity by the Temporary Person.<br />Cost of completing the exit formalities including HR, Admin and Finance department<br />Cost of the manager who has to take the handover, understand what work remains, and how to complete the work till the position is filled.<br />Cost of Managers time who conducted the exit interview.<br />Training cost of the employee who has left.<br />Cost of impact of lost productivity in the department Read Cost of Low morale, internal discussions etc.<br />The Impact (All parameters Converted to Cost) - 1<br />
  4. 4. Cost of lost knowledge & skills that the person who is leaving is taking with them<br />Cost of Losing customers due to dip in services etc.<br />Recruitment Cost for New Hire – We always feel this is not for us.<br />Training cost of New Employee: Salary for Trainee and Trainer, Other Costs like Venue, Opportunity etc.<br />Lost Productivity Costs – New Employee takes time to be productive.<br />Cost of Mistakes made by New Employee during initial period. <br />Cost of Low productivity of the Reporting Manager as lot of time is being spent on New Employee.<br />Supporting Cost – time spent on Creating new id, Password, Pay roll, bank accounts etc. Time spent on introducing him to the clients.<br />Opportunity Cost – the business you may have lost due to this transition as your people are not ready to add new and additional services/clients/requirements etc.<br />The Impact - 2<br />
  5. 5. Salary & Benefits – Not in line with the market or Company does not recognize the talent and Skills<br />Over Work – Long Hours on Regular Basis; doing job of Two – Happens when companies cut the expenses<br />Negative Work Environment – High amount of Gossips and Fights with in the organization at various levels. Too much of unhealthy competition, favouritism, not treating all equally. Internal Salary disparity.<br />Poor Management – Unapproachable management, Lack of Communication. Over management and multiple reporting structures.<br />Lack of Room for Growth - The growth can be in hierarchy, Salary, Span etc.<br />Mean & Unreasonable Boss – Nasty, Rude Boss<br />Physical Work Environment – Unclean, lack of support form support staff<br />Lack of Flexibility and Creativeness – too rigid office structure<br />Why People Leave<br />
  6. 6. It helps to control your payroll – if all employees stay for very long time then most of them will be on the highest pay slab <br />When unproductive Employee leaves it helps the Organization<br />New Employees bring new ideas, Abilities, processes, new thoughts which can rejuvenate the organization<br />Increases innovations – If you do not welcome Change then this may not be for you<br />If negative and de-motivating people leave the company will thrive and better teams<br />It creates space for new talent<br />Keeps the workforce young and aggressive<br />Removes the bottle necks in the organizations<br />Enhances ability for execution of new and different assignments.<br />Brings in the best practices of the industry<br />Helps you get skills which are aligned to current business needs.<br />After all attrition is not that Bad!<br />
  7. 7. Should We Retain People?<br />Whom Should we Retain?<br />
  8. 8. Risk Heat Maps<br />
  9. 9. The Map<br />
  10. 10. The Map<br />
  11. 11. The Map<br />
  12. 12. Retention is Not Making a Counter Offer<br />It starts at the time of Hiring!<br />
  13. 13. Hire Nice People – They can learning anything, they are pleasant, They teach and they are very few as all of them are in this Room or they are helping us outside<br />Create New Challenges in your Day to Day jobs – People get bored, unhappy and Frustrated, Look at doing the Same thing differently<br />Empowerment & Accountability – Make people accountable and responsible for what they do. Let them take decisions even if they make mistakes.<br />Have Fun – Make your Office a Fun Place Stress Free. Have Recreation. <br />Be Consistent & fair – in everything you do or expect.<br />Be Accessible – Have an open Door policy and implement it.<br />Be Flexible – Look at the same thing from Others point of View. <br />Communicate – Speak to them, understand them and share your views – Do not force on them. They need to be a part of your organization.<br />Reward & Recognitions – They Help!<br />How To Retain - 1<br />
  14. 14. Have Career Development Program – A Growth Plan for Each Person in your Organization.<br />Training – Stress on this aspect.<br />Tools to do the Job – Make sure all the necessary tools are provided to do the job – even the phone should be working from day one.<br />Physical Office atmosphere – Need not be expensive, should be clean efficient and worker friendly. Clean Rest rooms, comfortable dining area etc go a long way.<br />Corporate Culture – live your values, mission and vision. Let it not be only a part of your corporate presentation.<br />Strong Leadership – Integrity, Trust, Respect, fairness, Vision should be a part of culture<br />Compensation – Review regularly. Remove discrepancies. Be fair.<br />Work Life Balance – Make sure that your staff is not over worked, spending too much time in the office. They should have personal life EVERY DAY.<br />How To Retain - 2<br />
  15. 15. Thanks!<br />Any ?<br />©1999 - 2011 Golden Opportunities Pvt Ltd<br />