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

Introduction

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

Measures

Measures 1 of 2

Employee turnover

Measures 2 of 2

Retention

Costing labour turnover

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

Improving the experience of new

starters

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

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

The employee turnover decision process

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

Areas to consider that can reduce attrition

Areas to consider that can reduce attrition

Realistic job previewsJob enrichmentWorkspace characteristicsInduction practicesLeader-member exchangeEmployee selectionReward practicesDemographic diversityManaging inter-role conflict

Enriching a job

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

Why do people leave?

Why do people leave?

Increase job satisfactionAttain better pay and benefitsLearn new things

Developing an employee retention

strategy

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?

What plays a significant role in employee

retention?

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

Questions to ask

Questions to ask 1 of 6

If currently employed, how much effort would you be willing to expend in looking for a new job?

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


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


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


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


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

Levels of attachment

Levels of attachmentVocationalOperationalRelationalTransactional

Why focus on reducing labour turnover?

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

Primary paths to turnover

Primary paths to turnoverEmployee dissatisfactionBetter alternativesFollowing a planLeaving without a plan

Additional predictors of turnover

Additional predictors of turnover

Organizational commitment and job satisfactionQuality of the employee-supervisor relationship Role clarity Job design Workgroup cohesion

Effective practices to boost retention

Effective practices to boost retention

RecruitmentSelectionSocializationTraining and developmentCompensation and benefitsSupervisionEmployee engagement

Using pay as a tool

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

Broad-based strategies

Broad-based strategiesRetention researchBest practiceBenchmarking surveys

Doing the groundwork

Doing the groundworkDetermine whether turnover is a problemDetermine the best way to proceedImplementing the retention planEvaluating the results

Dealing with some common problems

Dealing with some common problems

Lack of top management supportPerception of the program as time-consuming ‘busywork’

Avoiding terminations

Avoiding terminationsStep in earlyIf after 18 months issues start to arise, tackle them through mediation or counsellingUndertake performance management

Case study A

Case study B

Conclusion and questions

Conclusion and questions

SummaryVideosQuestions

Maximizing retention and minimizing attrition April 2012

Business

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