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Times:Times: Why Productive WorkersWhy Productive Workers

Leave… and how to keep them Leave… and how to keep them

By:By:Harry Meintassis, Harry Meintassis,

December 3December 3rdrd, 2004, 2004

Talent Management

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Where Are We Going Today?

Why Retention Is Why Retention Is ImportantImportant

(The Business Case)(The Business Case)

What Drives What Drives Employee RetentionEmployee Retention

(Our experience)(Our experience)

Is Your Organization Is Your Organization At Risk?At Risk?

(Lets reflect)(Lets reflect)

Build a Customized Build a Customized Retention StrategyRetention Strategy

(Towards Action)(Towards Action)

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Retention: Always a Key Priority

Your people are your best competitive advantage

In tough times, retention is also a concern

One third of the workforce – gone in 3 years!

The war for talent will continue in the years ahead – knowledge-based economy, demographic trends

Turnover is a symptom, not the problem

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Turnover is Costly

Cost of replacing employees is equivalent of 18 months salary

The “hidden” costs of turnover may be even greater, in terms of:

– Disrupted customer relationships

– Lost organization – and job-specific knowledge

– Increased strain on remaining employees

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Turnover is Inevitable

The “social contract” surrounding employment has been rewritten

The challenge is to manage turnover, rather than to eliminate it

– focus on retaining key talent and minimizing the disruptions associated with turnover

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Why are your people leaving? Total Percent Satisfied

Satisfaction with: Employees planning to stay for more than

two years

Employees planning to leave in less than two

years

Gap (%)

Use of my skills and abilities 83% 49% 34%

Ability of top management 74% 41% 33%

Company sense of direction 57% 27% 30%

Advancement opportunities 50% 22% 28%

Opportunity to learn new skills

66% 38% 28%

Coaching and counseling from supervisor

54% 26% 28%

Pay 51% 25% 26%

Training 54% 36% 18%

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Employees’ major concern is with opportunities for personal development and growth – Employability

Understanding the organization’s strategic direction and confidence in senior management are essential

Key Predictors of Retention

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SFortune Survey of Most Admired Companies

Summary of Findings — Employee RetentionSummary of Findings — Employee Retention

Most Admired Companies:

– Take culture and values seriously

– Know success attracts the best people — and people sustain success

– Identify precisely the kinds of people they are looking for

– See career development as an investment

– Promote from within

– Reward performance

– Measure work force satisfaction

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Is your Organisation at Risk?

““What are your strengths &What are your strengths &weaknesses?”weaknesses?”

““What should you be focusing What should you be focusing on”?on”?

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Need objective, accurate diagnosis to predict talent losses

All you have to do is ask!

Where are the biggest payoff areas?

Understand the differences between loyalty and satisfaction.

“Know thyself”

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Show them you care!

“We will give you the tools to help you grow and advance because we care about your career growth”

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SPeople in different jobs are committed for different reasons

Management – New opportunities, top management ability

Professionals – Coaching from superiors, clear direction

Sales – Recognition

IT - Opportunities for advancement

Clerical – Use of skills and abilities

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Who do you really want to retain?

Who has the competencies to do the job now or in the future?

Who adds the most value to your organization

Who will be most difficult to replace?

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Benchmark the Competition

What turnover levels do your competitors have?

What do your competitors offer in terms of:– Pay and benefits– Opportunities for advancement – Development/ training– Challenging work– Flexibility

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Be lean- but not mean !

New “People first” thinking needed –

Nurture good people and the strategies will be executed, tasks will get done

What is the next step for the employee?

“People don’t leave jobs, they leave their managers”

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It is all about leadership!

Leaders:– Provide feedback and direction– “Walk the Talk” – Communicate how people are an

organizational asset critical to success

– Develop high potentials into future organizational leaders

– Create succession plans

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3 Souri str.105 57 Athens

Tel. +(30) 210 32.17.666Fax +(30) 210 32.13.240

URL: www.HayGroup.com, www.leaders-forum.comEmail: Customer_Services@haygroup.com

PEOPLEBEFORESTRATEGY

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Back up

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ManagementManagement ProfessionalsProfessionals ClericalClerical SalesSales ITIT

Opportunity for advancement

Coaching and counseling from one’s superior

Type of work Recognition Opportunity for advancement

Ability of top management

Company has clear sense of direction

Use of skills and abilities

Opportunity for advancement

Ability of top management

Use of skills and abilities

Chance to do interesting and challenging work

Opportunity to learn new skills

Chance to do interesting and challenging work

Recognition

Work-family balance

Ability of top management

Company has clear sense of direction

Company has clear sense of direction

Use of your skills and abilities

Cear sense of direction

Use of skills and abilities

Recognition Pay Pay

Chance to learn new skills

Work flow well organised

Respectful treatment

Respectful treatment

Coaching and counseling from one’s boss

Respectful treatment

Pay Opportunity for advancement

Physical working conditions

Company has clear sense of direction

Pay Type of work Physical working conditions

Job Security Your ideas adopted and put into use

“Committed” vs. “Leaving Soon”