1. Memorandum
To: Stan Ross
From: Leah Famularo
Date: October 14, 2015
Re: Develop Program to Improve Employee Retention
1. Purpose
The purpose of this report to develop a program will improve new employee retention. Focusing
on new employees, of less than one year, to increase the retention rate. Currently, the rate of
employee retention is decreasing by 20% in the past 14 months. Speaking with top management,
concern of dissatisfaction amongst the Blue Inc. team is of high importance company wide. After
much consideration and surveying of current employees, the area of job training and
development is lacking resulting in low employee retention. The focus of the program is building
more upon employee development and skills.
2. SMART GOAL #1
Increase employee retention from 70% to 80% within 12 months of the new program. This goal is
of high importance as retaining valuable employees at Blue Inc. remains crucial to success of the
organization. The current turnover of workers is too high, which reflects the company in a
negative way. To remain successful, long-term human capital is a must. Turnovers have a
negative effect both internally and externally. Internally, cohesiveness of teamwork is impossible
with new employees joining and leaving resulting in overall low morale. Externally, clients lack
relationships due to turnovers between employees which is resulting in lower sales.
SMART Goal #2

2. The goal is to have average rating of new employee’s satisfaction shift from a rating of
unsatisfied to highly satisfied after one year of the new program’s start-up. Issuing employee
satisfaction surveys would give evidence to what is working versus what is not.
3. New Program
The following features highlight the additions to the program to build higher retention amongst
new hires.
1. Add a meet- and- greet to orientation process of all team members in department of new
hire.
2. Schedule bi-weekly meeting with direct supervisor for performance feedback, issues or
expectations.
3. Cater a monthly lunch for employees to socialize, network and build relationships.
4. Allow any employee to attend networking/chamber events at no cost in community to
build skills interpersonal skills and sense of empowerment in company.
5. Hold quarterly training sessions per department to build upon education, knowledge and
skills in field.
6. Distribute satisfaction survey quarterly for open feedback. (See Table 1.1)
7. Reward via bonus, gift or trips based upon performance, training and development or
advancements of employees of annual review.
4. Potential Problems
1. Blue Inc. may not have enough new employees to successfully implement this new program.
Without proper quantities to calculate, the rate of retention will not accurately display the
effects of new program. A solution is to have the second layer of new employees, of less than
two years, become included in features of program and also counted in the calculation of
retention and satisfaction.

3. 2. New employees, after completing new program after one year, may still give unsatisfied
results on survey. Depending on what areas the results were based on, will take on high
analysis to pinpoint. A possible solution is focusing solely on the low satisfied areas and
implement another new program based on those results.
5. Key Participants Involved
1. HR Manager (Leah Famularo)
Developed program to improve employee retention. Determined need for changed based on
decreasing retention rates of new hires, and unsatisfactory results by employee surveys.
2. Training & Development Director
Create new employee orientation program to include features of this new program. Must be in
direct communication with HR Manager for direction, relay results and feedback.
3. Management Team (Upper)
Must be up to date with new hires, completion of orientation and manage employee
performance feedback. Allocate funds for employee bonus, rewards or annual pay increase.
6. Future Issues
A future issue with the new program and the goal of increasing retention may fall upon
recruitment. The whole issue of retention may not lie solely on satisfaction, but with the wrong
talent to begin with. This new program is very strong to build high morale and development, but
if not applied to the proper employees that have a drive to succeed, is bound to fail. Another
future issue is lack of importance of employee satisfaction surveys. If employees do not care, or
feel survey is of any value, real feedback will lack resulting in improper results. Without proper
measures, skewed numbers of data equaling less than desired results is a future issue.

4. 7. Conclusion
The purpose of this report demonstrates the need to build towards higher retention of new
employees. Blue Inc. gives exit interviews to each employee leaving and found the following
negative responds:
● No sense of belonging to company/culture
● Not organized orientation program
● No training/development offered
● Lack of teamwork/networking
● No incentives upon performance results
● Lack of empowerment/input given never valued
The value of employee satisfaction plays a large role in the success of Blue Inc. Instilled in the
defining principles of the company including: Value, Knowledge, Teamwork, Balance, Fun,
Quality, and Initiative, is the people. Somewhere, based upon drop in retention rate, the
company has lost the importance of the employees and how big of an asset to the team. For
these two reasons, this strategy of the new program to increase employee retention and
satisfaction must become accepted, embraced and require immediate participation for Blue Inc.
to succeed.

5. Table 1.1 Sample Employee Satisfaction Survey Questions
Table 1.2 Primary Stakeholders Involved
Primary
Stakeholders
Function Purpose Result of Program
Senior Management Oversees program Keep projected goals
moving towards
completion
Actively
participates/involved
with staff to ensure
retention is higher
Project Team Creates new
program
Forecast
roadblocks/react to
changes during
program
Generate ratios of
results upon completion
date/ succeed in higher
retention
Customers Generate sales for
income
Get customer
feedback on new
employees
Either gain/lose
customers based upon
employee
satisfaction/performanc
e
Shareholders Invest in firm Involved in best
interest of firm
Either gain/loose
investments based on
employee/customer
satisfactions of sales