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Maximizing retention and minimizing attrition April 2012
This document provides an overview of strategies for maximizing employee retention and minimizing attrition. It discusses measuring and understanding the costs of employee turnover. Some key areas to focus on include improving the onboarding experience for new hires, enriching existing jobs, understanding why employees leave, developing a retention strategy, and asking questions to understand employee engagement and needs. Effective practices for boosting retention involve recruitment, development, compensation, supervision, and engagement. The document also provides case studies and questions to help analyze retention challenges.
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Maximizing retention and minimizing attrition April 2012
- 1. Maximizing retention and minimizing attrition by Toronto Training and HR April 2012
- 2. 3-4 Introduction to Toronto Training and HR 5-7 Measures Contents 8-9 10-12 13-14 Costing labour turnover Improving the experience of new starters The employee turnover decision process 15-16 Areas to consider that can reduce attrition 17-18 Enriching a job 19-20 Why do people leave? 21-22 Developing an employee retention strategy 23-24 What plays an significant role in employee retention? 25-31 Questions to ask 32-33 Levels of attachment 34-35 Why focus on reducing labour turnover? 36-37 Primary paths to turnover 38-39 Additional predictors of turnover 40-41 Effective practices to boost retention 42-43 Using pay as a tool 44-45 Broad-based strategies 46-47 Doing the groundwork 48-49 Dealing with some common problems 50-51 Avoiding terminations 52-55 Case studies 56-57 Conclusion and questions
- 3. Introduction Page 3
- 4. Introduction to TorontoTraining and HR • Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden • 10 years in banking • 10 years in training and human resources • Freelance practitioner since 2006 • The core services provided by Toronto Training and HR are: - Training event design - Training event delivery - Reducing costs - Saving time - Improving employee engagement & morale - Services for job seekers Page 4
- 5. Measures Page 5
- 6. Measures 1 of2 Employee turnover Page 6
- 7. Measures 2 of2 Retention Page 7
- 8. Costing labour turnover Page 8
- 9. Costing labour turnover MAJORCATEGORIES OF COSTS Administration of the resignation Recruitment and selection costs, including administration Covering the post during the period in which there is a vacancy Induction training for the new employee Page 9
- 10. Improving the experience of new starters Page 10
- 11. Improving the experienceof new starters 1 of 2 Regular updating of induction procedures Direct consultation with new recruits about how to improve induction Keeping improvement of induction on the organizational agenda Making use of several communication methods Including job-related training as part of the orientation program Page 11
- 12. Improving the experienceof new starters 2 of 2 Producing an accompanying ‘welcome’ resource pack Involving senior managers in orientation sessions Covering informal rules and norms as well as the formal ones Page 12
- 13. The employee turnover decision process Page 13
- 14. The employee turnoverdecision process Evaluate existing job Experience job dissatisfaction Think of quitting Evaluate expected utility of search for a new job and the cost of quitting Decide to search for alternatives Evaluate alternatives Compare best alternative with present job Decide whether to stay or quit Quit Page 14
- 15. Areas to considerthat can reduce attrition Page 15
- 16. Areas to considerthat can reduce attrition Realistic job previews Job enrichment Workspace characteristics Induction practices Leader-member exchange Employee selection Reward practices Demographic diversity Managing inter-role conflict Page 16
- 17. Enriching a job Page 17
- 18. Enriching a job SIGNIFICANTPERCEPTIONS OF JOBS BY JOB- HOLDERS: Opportunities for self and career development Job is meaningful or significant Variety of skills are used High degree of personal responsibility People can work with a degree of autonomy Positive feedback on performance is given Page 18
- 19. Why do peopleleave? Page 19
- 20. Why do peopleleave? Increase job satisfaction Attain better pay and benefits Learn new things Page 20
- 21. Developing an employee retention strategy Page 21
- 22. Developing an employee retention strategy Why are employees are leaving? What is the impact that employee turnover has on the organization, including the associated costs? Page 22
- 23. What plays asignificant role in employee retention? Page 23
- 24. What plays asignificant role in employee retention ? Job previews Make line managers accountable Career development and progression Consult employees Be flexible Avoid the development of a culture of presenteeism Job security Treat people fairly Defend your organization Page 24
- 25. Questions to ask Page 25
- 26. Questions to ask1 of 6 If currently employed, how much effort would you be willing to expend in looking for a new job? Page 26
- 27. Questions to ask2 of 6 ANSWERS None. I’m happy here Maybe 20% effort – If a friend recommended a promising position to me, I’d go for the interview Perhaps 40% effort – I’d poke around the job boards, maybe send in a few resumes At least 60% effort – I’d spend every spare second looking for a new job Easily 80% – I have to get out of here and will do whatever it takes Page 27
- 28. Questions to ask3 of 6 WHAT CAN WE LEARN FROM THE QUESTION? Level of employee engagement on the job right now Level of employee distraction from the task at hand Just how broken the company culture has become Page 28
- 29. Questions to ask4 of 6 Rank the following in terms of importance to you: Learning opportunities – I want to constantly be learning or doing something new Growth opportunities – I want to be able to move up in my career Meaningful work – I want to know that I’m contributing to something greater Page 29
- 30. Questions to ask5 of 6 Rank the following in terms of importance to you: Frequent recognition and feedback – I want to know when I’m doing well and when I need to improve A good relationship with my manager – I want to be confident and unafraid at work Compensation and benefits – I need to know that I’m paid fairly for my work Page 30
- 31. Questions to ask6 of 6 WHAT CAN HR LEARN FROM THIS? In aggregate, where the organization may need to invest more budget On an individual basis, what would be most engaging for the employee An understanding of where the organization may not be able to meet an employee’s needs, paving the way for more effective talent management and honest conversations Page 31
- 32. Levels of attachment Page 32
- 33.
- 34. Why focus onreducing labour turnover? Page 34
- 35. Why focus onreducing labour turnover? It is costly It affects the performance of the organization It may become increasingly difficult to manage as the availability of skilled employees decreases in the future Page 35
- 36. Primary paths toturnover Page 36
- 37. Primary paths toturnover Employee dissatisfaction Better alternatives Following a plan Leaving without a plan Page 37
- 38. Additional predictors of turnover Page 38
- 39. Additional predictors ofturnover Organizational commitment and job satisfaction Quality of the employee-supervisor relationship Role clarity Job design Workgroup cohesion Page 39
- 40. Effective practices to boost retention Page 40
- 41. Effective practices toboost retention Recruitment Selection Socialization Training and development Compensation and benefits Supervision Employee engagement Page 41
- 42. Using pay asa tool Page 42
- 43. Using pay asa tool OPTION A Lead the market with respect to compensation and rewards OPTION B Tailor rewards to individual needs in a person- based pay structure OPTION C Explicitly link rewards to retention Page 43
- 44. Broad-based strategies Page 44
- 45. Broad-based strategies Retention research Bestpractice Benchmarking surveys Page 45
- 46. Doing the groundwork Page 46
- 47. Doing the groundwork Determinewhether turnover is a problem Determine the best way to proceed Implementing the retention plan Evaluating the results Page 47
- 48. Dealing with some commonproblems Page 48
- 49. Dealing with somecommon problems Lack of top management support Perception of the program as time-consuming ‘busywork’ Page 49
- 50. Avoiding terminations Page 50
- 51. Avoiding terminations Step inearly If after 18 months issues start to arise, tackle them through mediation or counselling Undertake performance management Page 51
- 52. Case study A Page 52
- 53. Case study A Page 53
- 54. Case study B Page 54
- 55. Case study B Page 55
- 56. Conclusion and questions Page 56
- 57.