Business Challenge Over the past decade, due to the increased adoption of information technology and greater use of management information systems, many companies have become more astute in measuring the true performance of their assets, including human capital.

These companies are imposing greater scrutiny on the return on investment of their resources.

The unintended consequence of the new way of business is that companies, although they require greater levels of skill for single, specialised tasks, fall short of the current generation of job seekers’ expectations of development, variety and mobility (“Generation Y & Z”).

A large part of the problem is that a fundamental misunderstanding exists between employers, who are overwhelmingly drawn from the “Baby Boomers” and “Jonesers” generations, and employees, who are drawn from “Generation X, Y and Z”.

This misunderstanding is real, but somewhat ironic, since generations X, Y & Z (who are overwhelmingly the creators of new technologies) find themselves increasingly stifled by what they see as the rigid and inflexible employer practices that relentless and detailed measurement capability have given rise to.

The most important symptom of the generation gap is declining tenure, which is increasingly a pressing problem facing many companies.

The Alfred P. Sloan Foundation estimates that the percentage of employees expecting to leave their current employer within the next year is 43% (“Baby Boomers”), 52% (“Generation X”) and 70% (“Generation Y”). Generation Z are just joining the job market, so as yet unmeasured.

Based on our research and practical experience over an extended period, rising staff turnover is typically the result of restricted development and career mobility created by the following:

Increasing specialisation and complexity of many job functions.

Training costs have increased significantly.

Employers restricting the opportunities for their employees’ growth and development. o Individual will frequently be required to tender his/her resignation to apply for a position in a different department or division of the same company.

o Team leaders or line managers are not open to releasing individuals with talent and skills to a different area or function within the same division.

Generation Y demand variety, development and mobility in the workplace.

o They see the traditional barr iers between business units as barriers to their personal growth and development.

Mobility should be easy, planned and timeously managed by the organisation as a whole.

o Without it, the individual is left with a feeling of d issat is fact ion and ult imately leaves the organisation due to lack of job satisfaction, development and fulfillment.

Complaint from business is that the return on investment on employees is falling.

o Complex t ra in ing needs assoc ia ted w i th technology.

o Widespread problem of staff turnover with what is believed to be unacceptable length of service.

Quest Solution

Current tenure of Generation Y is approximately 8 months.

By contrast the career development and retention model results in tenure of between two and five years, with a corresponding dramatic increase in the return-on-investment to training and development.

The following five factors are required within the organization for this solution to be successful:

Size of the organisation;

Scope for (horizontal and vertical) movement and development within the organisation;

Variability and complexity of the products housed in the organisation;

Buy-in at a strategic level within the organisation;

A Quest Retention Coach.

A solution to employee turnover for the generations X, Y and Z

CASE STUDY 9

INCREASED MORALE AND TURNOVERREDUCED BY 12%

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The initial tools to produce superior prospective candidates are critical to obtain the desired outputs.

Flexible staff will begin their career within the organization at the entry level which will largely depend upon their educational background and competence. The recruitment phase is the most critical in terms of defining and correctly assessing the individual’s career path.

Assessments will provide insight into the individual’s strengths and weaknesses, development needs and whether the profile is suited to management or specialisation.

By identifying key performance indicators relevant to the job type and that provide the correct performance incentives, one has the ability to accurately track and measure each individual’s performance against fair and pertinent criteria.

Career development and retention must be actively managed through i nnova t i ve r ewa rd and recognition programs and initiatives as well as career mobility.

o For example, the first choice of best shifts and schedules given as a reward to best performers.

Business Results

Current research conducted by the Alfred P. Sloan Foundation show the value that Generations X and Y attach to work/life balance.

57% of non-unionised staff are flexible.

CASE STUDY 9

66% of employees would leave their permanent

positions if they could ensure greater control over

their work schedules. 59% would leave their current positions to have greater flexibility.

48% would leave to work fewer hours.

Also relevant as shown in the research is that

Staff turnover reduces by 15% down to 3% where flexible staff can choose their own shifts.

As a natural progression and determined upfront in the sc ient i f ic prof i l ing process performing employees will be guided through the organisation by increasing and enhancing their skill.

The financial implications for the employer are significant and increasing the tenure of their staff will result in dramatically reduced costs of turnover and tangible benefits from increased service and retention.

Quest Services Offering

Quest is a Full Circle Staffing Solutions Company (FCS² ™) with the most comprehensive service offering in the industry that includes: Field Marketing | Managed Service Provider (MSP) | Outsourced Staffing Solutions | Permanent Placement Solutions | Recruitment Process Outsourcing (RPO) | Specialised Staffing Projects.

Contact us now to find out how choosing Quest will be one of the best business decisions you make.

Visit www.quest.co.za for more information.

A solution to employee turnover for the generations X, Y and Z

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