Retention September 2010

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One day workshop for the HR team and departmental heads employed by a distribution business based in Manchester, seeking to reduce staff turnover rates.

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Retention September 2010

  1. 1. Reducing attrition rates<br />by Fluid <br />September 2010<br />
  2. 2. Page 2<br />Contents<br />3-4 Introduction to Fluid<br />5-6 True cost of attrition<br />7-8 Increase in organisational performance<br />9-10 A strategy for retention<br />11-16 Why are you going? <br />17-18 Managing the loss of a ‘constant’<br />19-20 Handling a senior resignation<br />21-22 Exercise A<br />23-25 Quiz<br />26-29 Retention initiatives <br />30-31 Real-life example<br />32-33 Job dissatisfaction<br />34-35 Dispelling the myths-why workers actually leave <br />36-37 Turnover rates by occupation<br />38-42 What’s a reasonable turnover rate for voluntary leavers?<br />43-45 Diving after those that jump ship<br />46-47 Motivation<br />48-49 Keep outgoing employees happy<br />50-51 Exercise B<br />52-53 Case studies<br />54-55 Conclusion and questions<br />
  3. 3. Page 3<br />Introduction<br />
  4. 4. Page 4<br />Introduction to Fluid<br />Fluid Consulting Limited (Fluid) is a specialist human resources consultancy headed by Tim Holden MCIPD <br />10 years in banking<br />10 years in Human Resources consultancy<br />Fluid trading since 2006<br />The core services provided by Fluid are:<br /><ul><li>Retention
  5. 5. Selection</li></ul>- Attraction<br />- Remuneration & Reward <br />- Outplacement<br />- Training & HR consultancy<br />
  6. 6. Page 5<br />True cost of attrition<br />
  7. 7. Page 6<br />True cost of attrition<br /><ul><li>Wastage index or standard formula
  8. 8. Resignation rate
  9. 9. Stability rate
  10. 10. Survival rate</li></li></ul><li>Page 7<br />Increase in organisational performance<br />
  11. 11. Page 8<br />Increase in organisational performance<br /><ul><li>Reduce unnecessary recruitment costs
  12. 12. Raise levels of morale and motivation
  13. 13. Improve performance of existing employees</li></li></ul><li>Page 9<br />A strategy for retention<br />
  14. 14. Page 10<br />A strategy for retention<br /><ul><li>Diagnosing the drivers behind voluntary turnover
  15. 15. Making decision on how to combat these various factors
  16. 16. Implementing targeted initiatives</li></li></ul><li>Page 11<br />Why are you going?<br />
  17. 17. Page 12<br /><ul><li>KEY REASONS FOR EMPLOYEE TURNOVER
  18. 18. Change of career
  19. 19. Promotion outside the organisation
  20. 20. Level of pay
  21. 21. Lack of development or career opportunities
  22. 22. Leaving to have/look after children
  23. 23. Redundancy
  24. 24. Retirement
  25. 25. Level of workload
  26. 26. Stress of job/role
  27. 27. Lack of support from line managers
  28. 28. Number of working hours</li></ul>Why are you going? 1 of 5<br />
  29. 29. Page 13<br /><ul><li>Lack of promotion opportunities
  30. 30. Inadequate pay
  31. 31. Poor relationship with supervisor/manager
  32. 32. Poor work-life balance
  33. 33. Lack of independence in carrying out the job
  34. 34. Lack of belief in the purpose of the organisation
  35. 35. Lack of confidence in the future of the organisation
  36. 36. Uncomfortable working conditions
  37. 37. Lack of training/developmental opportunities
  38. 38. Promises not kept by management
  39. 39. Uninteresting work/boredom
  40. 40. Lack of teamwork/cooperation</li></ul>Why are you going? 2 of 5<br />
  41. 41. Page 14<br /><ul><li>REAL LEAVERS
  42. 42. Lack of teamwork/cooperation
  43. 43. Uninteresting work/boredom
  44. 44. Promises not kept by management</li></ul>Why are you going? 3 of 5<br />
  45. 45. Page 15<br /><ul><li>HR RESPONDENTS
  46. 46. Lack of promotion opportunities
  47. 47. Inadequate pay
  48. 48. Poor relationship with supervisor/manager</li></ul>Why are you going? 4 of 5<br />
  49. 49. Page 16<br /><ul><li>EXIT INTERVIEWS
  50. 50. When and with whom?
  51. 51. Third party involvement
  52. 52. Six months after leaving
  53. 53. What is done with the data?</li></ul>Why are you going? 5 of 5<br />
  54. 54. Page 17<br />Managing the loss of a ‘constant’<br />
  55. 55. Page 18<br />Managing the loss of a ‘constant’<br /><ul><li>Put succession plans in place
  56. 56. Offer stability, control and support during change
  57. 57. Communicate early, consistently and clearly
  58. 58. Develop a culture of learning
  59. 59. Thank your employees and acknowledge their effort</li></li></ul><li>Page 19<br />Handling a senior resignation<br />
  60. 60. Page 20<br />Handling a senior resignation<br /><ul><li>Find out why they resigned
  61. 61. Never be caught unawares
  62. 62. Have a succession plan
  63. 63. Look out for external talent
  64. 64. Benchmark the package you offer their successor</li></li></ul><li>Page 21<br />Exercise A<br />
  65. 65. Page 22<br />Exercise A<br />
  66. 66. Page 23<br />Quiz <br />
  67. 67. Page 24<br />Quiz 1 of 2<br /><ul><li>1. The majority of people leave their manager, not the organisation-TRUE or FALSE
  68. 68. 2. What % of leavers go due to dissatisfaction with the job and/or the organisation?
  69. 69. 3. Significantly more women leave organisations due to harassment or bullying-TRUE or FALSE
  70. 70. 4. Upon resigning, for how long has the average leaver been thinking of going?
  71. 71. 5. Which of the following occupational groups are more likely to leave for a more competitive salary elsewhere-salespeople, blue-collar workers, IT techies or professionals?</li></li></ul><li>Page 25<br />Quiz 2 of 2<br /><ul><li>6. When asked, what do most employees think is the most important factor for maintaining their commitment to an organisation?
  72. 72. 7. When leavers to new jobs are asked how their new package will compare, what % is the most common response?
  73. 73. 8. Which reason are leavers more likely to select when the survey is not anonymous?
  74. 74. 9. Which is the most common reason given by those leaving within six months than by more established employees?
  75. 75. 10. Leavers from which white-collar group express the highest level of dissatisfaction in respect of their work-life balance?</li></li></ul><li>Page 26<br />Retention initiatives<br />
  76. 76. Page 27<br />Retention initiatives 1 of 3<br /><ul><li>Increased pay
  77. 77. Increased learning and development opportunities
  78. 78. Improved selection techniques
  79. 79. Improved induction process
  80. 80. Improved line management HR skills
  81. 81. Improved benefits
  82. 82. Made changes to improve work-life balance
  83. 83. Improved employee involvement
  84. 84. Removed age-related policies and practices</li></li></ul><li>Page 28<br />Retention initiatives 2 of 3<br /><ul><li>Offered coaching/mentoring/buddy systems
  85. 85. Revised the way people are rewarded so their efforts are better recognised
  86. 86. Made changes in way the organisation approaches career management
  87. 87. Offered secondments
  88. 88. Better promotion to employees of the employer brand
  89. 89. Redesigned jobs to make them more satisfying
  90. 90. Better publicised levels of pay and conditions
  91. 91. Improved physical working conditions</li></li></ul><li>Page 29<br />Retention initiatives 3 of 3<br /><ul><li>Flexible working
  92. 92. Green and corporate social responsibility
  93. 93. Health & wellbeing
  94. 94. Learning & development
  95. 95. Pay
  96. 96. Sabbaticals</li></li></ul><li>Page 30<br />Real-life example<br />
  97. 97. Page 31<br />Real-life example<br /><ul><li>Communication is key during an integration process so it is crucial to gain buy-in through partnership working and widespread consultation
  98. 98. Make people part of the decision-making process-let them make their own decisions about where they want to work
  99. 99. Don’t underestimate the importance of facilities such as car parking
  100. 100. Ensure that you allow enough time for site orientation-it is essential that employees get to feel familiar with the new surroundings</li></li></ul><li>Page 32<br />Job dissatisfaction<br />
  101. 101. Page 33<br /><ul><li>FINANCIAL SERVICES, PROFESSIONAL SERVICES, PUBLIC SERVICES, RETAIL, TECHNOLOGY/MEDIA/TELECOMS
  102. 102. I regret my career choice
  103. 103. The sector I want to move to is more stable
  104. 104. Progression is better in other sectors
  105. 105. % wishing to obtain a job in another sector
  106. 106. Most popular sectors for those who wish to change
  107. 107. How dissatisfied are you in your job?
  108. 108. Are you working harder?
  109. 109. I worry I’ll be made redundant
  110. 110. I worry my skillset is out of date
  111. 111. The recession has made me rethink my career </li></ul>Job dissatisfaction<br />
  112. 112. Page 34<br />Dispelling the myths-why workers actually leave<br />
  113. 113. Page 35<br />Dispelling the myths-why workers actually leave<br /><ul><li>Diagnose
  114. 114. Address
  115. 115. Define</li></li></ul><li>Page 36<br />Turnover rates by occupation<br />
  116. 116. Page 37<br /><ul><li>Administrative, secretarial and technical 13%
  117. 117. Managers/professionals 14%
  118. 118. Manual/craft workers 12%
  119. 119. Services( customer, personal, productive& sales) 16% </li></ul>Turnover rates by occupation<br />
  120. 120. Page 38<br />What’s a reasonable turnover rate for voluntary leavers?<br />
  121. 121. Page 39<br /><ul><li>MANUFACTURING AND PRODUCTION
  122. 122. Agriculture and forestry 20%
  123. 123. Chemicals, pharmaceuticals and oil 8%
  124. 124. Construction 10%
  125. 125. Electricity, gas & water 5%
  126. 126. Engineering, electronics and metals 7%
  127. 127. Food, drink and tobacco 17%
  128. 128. Manufacturing 9%
  129. 129. Paper and printing 7%
  130. 130. Textiles 7%</li></ul>What’s a reasonable turnover rate for voluntary leavers 1 of 4 ?<br />
  131. 131. Page 40<br /><ul><li>PRIVATE SECTOR SERVICES
  132. 132. Call centres 16%
  133. 133. Communications 13%
  134. 134. Finance, insurance and real estate 12%
  135. 135. Hotels, catering and leisure 30%
  136. 136. IT services 17%
  137. 137. Media 17%
  138. 138. Retail and wholesale 19%
  139. 139. Professional services 12%
  140. 140. Transport, distribution and storage 6%</li></ul>What’s a reasonable turnover rate for voluntary leavers 2 of 4 ?<br />
  141. 141. Page 41<br /><ul><li>VOLUNTARY, COMMUNITY AND NOT-FOR-PROFIT
  142. 142. Care services 17%
  143. 143. Charity services 13%
  144. 144. Housing associations 10%</li></ul>What’s a reasonable turnover rate for voluntary leavers 3 of 4 ?<br />
  145. 145. Page 42<br /><ul><li>PUBLIC SERVICES
  146. 146. Central government 8%
  147. 147. Education 5%
  148. 148. Health 9%
  149. 149. Local government 11%</li></ul>What’s a reasonable turnover rate for voluntary leavers 4 of 4 ?<br />
  150. 150. Page 43<br />Diving after those that jump ship<br />
  151. 151. Page 44<br />Diving after those that jump ship 1 of 2<br /><ul><li>RESTRICTIVE COVENANTS
  152. 152. Stenhouse case
  153. 153. Is the clause likely to make employees refuse business they would otherwise take?
  154. 154. Does the clause diminish employees’ employment prospects?</li></li></ul><li>Page 45<br />Diving after those that jump ship 2 of 2<br /><ul><li>Review the restrictions on senior employees and tailor the covenants to suit the person
  155. 155. Distinguish confidential information
  156. 156. Be brave and take the strong cases further</li></li></ul><li>Page 46<br />Motivation<br />
  157. 157. Page 47<br />Motivation<br /><ul><li>What sort of working environment and culture do you feel most motivates you?
  158. 158. What are your key personal and career objectives and goals in the long and short term?
  159. 159. How would you describe the meaning of success?
  160. 160. What form of reward most motivates you?
  161. 161. Explain a situation in the workplace where you have motivated colleagues?
  162. 162. Do you think individual success is more rewarding than team success?</li></li></ul><li>Page 48<br />Keep outgoing employees happy <br />
  163. 163. Page 49<br />Keep outgoing employees happy<br /><ul><li>Be impartial
  164. 164. Be sensitive
  165. 165. Follow a process
  166. 166. Communicate
  167. 167. Don’t burn bridges</li></li></ul><li>Page 50<br />Exercise B<br />
  168. 168. Page 51<br />Exercise B<br />
  169. 169. Page 52<br />Case studies<br />
  170. 170. Page 53<br />Case studies<br />
  171. 171. Page 54<br />Conclusion & Questions<br />
  172. 172. Page 55<br />Conclusion<br />Summary<br />Questions<br />

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