Maximizing retention and minimizing attrition April 2012
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Transcript of Maximizing retention and minimizing attrition April 2012
Maximizing retention and minimizing attrition
by Toronto Training and HR
April 2012
Contents
3-4 Introduction to Toronto Training and HR5-7 Measures8-9 Costing labour turnover10-12 Improving the experience of new starters13-14 The employee turnover decision process15-16 Areas to consider that can reduce attrition17-18 Enriching a job19-20 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 ask32-33 Levels of attachment34-35 Why focus on reducing labour turnover?36-37 Primary paths to turnover38-39 Additional predictors of turnover40-41 Effective practices to boost retention42-43 Using pay as a tool44-45 Broad-based strategies46-47 Doing the groundwork48-49 Dealing with some common problems50-51 Avoiding terminations52-55 Case studies56-57 Conclusion and questions
Page 3
Introduction
Page 4
Introduction to Toronto Training 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 5
Measures
Page 6
Measures 1 of 2
Employee turnover
Page 7
Measures 2 of 2
Retention
Page 8
Costing labour turnover
Page 9
Costing labour turnover
MAJOR CATEGORIES OF COSTSAdministration of the resignationRecruitment and selection costs, including administration Covering the post during the period in which there is a vacancyInduction training for the new employee
Page 10
Improving the experience of new
starters
Page 11
Improving the experience of new starters 1 of 2
Regular updating of induction proceduresDirect consultation with new recruits about how to improve inductionKeeping improvement of induction on the organizational agendaMaking use of several communication methodsIncluding job-related training as part of the orientation program
Page 12
Improving the experience of new starters 2 of 2
Producing an accompanying ‘welcome’ resource packInvolving senior managers in orientation sessionsCovering informal rules and norms as well as the formal ones
Page 13
The employee turnover decision process
Page 14
The employee turnover decision process
Evaluate existing jobExperience job dissatisfactionThink of quittingEvaluate expected utility of search for a new job and the cost of quittingDecide to search for alternativesEvaluate alternativesCompare best alternative with present jobDecide whether to stay or quitQuit
Page 15
Areas to consider that can reduce attrition
Page 16
Areas to consider that can reduce attrition
Realistic job previewsJob enrichmentWorkspace characteristicsInduction practicesLeader-member exchangeEmployee selectionReward practicesDemographic diversityManaging inter-role conflict
Page 17
Enriching a job
Page 18
Enriching a job
SIGNIFICANT PERCEPTIONS OF JOBS BY JOB-HOLDERS:Opportunities for self and career developmentJob is meaningful or significantVariety of skills are usedHigh degree of personal responsibilityPeople can work with a degree of autonomyPositive feedback on performance is given
Page 19
Why do people leave?
Page 20
Why do people leave?
Increase job satisfactionAttain better pay and benefitsLearn new things
Page 21
Developing an employee retention
strategy
Page 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 23
What plays a significant role in employee
retention?
Page 24
What plays a significant role in employee retention ?
Job previewsMake line managers accountableCareer development and progressionConsult employeesBe flexibleAvoid the development of a culture of presenteeismJob securityTreat people fairlyDefend your organization
Page 25
Questions to ask
Page 26
Questions to ask 1 of 6
If currently employed, how much effort would you be willing to expend in looking for a new job?
Page 27
Questions to ask 2 of 6ANSWERSNone. I’m happy hereMaybe 20% effort – If a friend recommended a promising position to me, I’d go for the interviewPerhaps 40% effort – I’d poke around the job boards, maybe send in a few resumesAt least 60% effort – I’d spend every spare second looking for a new jobEasily 80% – I have to get out of here and will do whatever it takes
Page 28
Questions to ask 3 of 6
WHAT CAN WE LEARN FROM THE QUESTION?Level of employee engagement on the job right nowLevel of employee distraction from the task at handJust how broken the company culture has become
Page 29
Questions to ask 4 of 6
Rank the following in terms of importance to you:Learning opportunities – I want to constantly be learning or doing something newGrowth opportunities – I want to be able to move up in my careerMeaningful work – I want to know that I’m contributing to something greater
Page 30
Questions to ask 5 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 improveA good relationship with my manager – I want to be confident and unafraid at workCompensation and benefits – I need to know that I’m paid fairly for my work
Page 31
Questions to ask 6 of 6
WHAT CAN HR LEARN FROM THIS?In aggregate, where the organization may need to invest more budgetOn an individual basis, what would be most engaging for the employeeAn 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 32
Levels of attachment
Page 33
Levels of attachmentVocationalOperationalRelationalTransactional
Page 34
Why focus on reducing labour turnover?
Page 35
Why focus on reducing labour turnover?
It is costlyIt affects the performance of the organizationIt may become increasingly difficult to manage as the availability of skilled employees decreases in the future
Page 36
Primary paths to turnover
Page 37
Primary paths to turnoverEmployee dissatisfactionBetter alternativesFollowing a planLeaving without a plan
Page 38
Additional predictors of turnover
Page 39
Additional predictors of turnover
Organizational commitment and job satisfactionQuality of the employee-supervisor relationship Role clarity Job design Workgroup cohesion
Page 40
Effective practices to boost retention
Page 41
Effective practices to boost retention
RecruitmentSelectionSocializationTraining and developmentCompensation and benefitsSupervisionEmployee engagement
Page 42
Using pay as a tool
Page 43
Using pay as a toolOPTION ALead the market with respect to compensation and rewardsOPTION BTailor rewards to individual needs in a person-based pay structureOPTION CExplicitly link rewards to retention
Page 44
Broad-based strategies
Page 45
Broad-based strategiesRetention researchBest practiceBenchmarking surveys
Page 46
Doing the groundwork
Page 47
Doing the groundworkDetermine whether turnover is a problemDetermine the best way to proceedImplementing the retention planEvaluating the results
Page 48
Dealing with some common problems
Page 49
Dealing with some common problems
Lack of top management supportPerception of the program as time-consuming ‘busywork’
Page 50
Avoiding terminations
Page 51
Avoiding terminationsStep in earlyIf after 18 months issues start to arise, tackle them through mediation or counsellingUndertake performance management
Page 52
Case study A
Page 53
Case study A
Page 54
Case study B
Page 55
Case study B
Page 56
Conclusion and questions
Page 57
Conclusion and questions
SummaryVideosQuestions