Techno Finance and Executive Diary...

Wednesday, October 11, 2006

Reduce Employee Turnover- How? A Big Managerial Question

Why is ATTRITION important to your organization?

Employee attrition costs 12 to 18 months’ salary for each leaving manager or professional, and 4 to 6 months' pay for each leaving clerical or hourly employee. According to a study by Ipsos-Reid, 30% of employees plan to change jobs in the next two years. Do the math and discover how much your company may pay for attrition.
Although employee turnover can help organizations evolve and change, an American Management Association survey showed that four out of five CEOs view employee retention as a serious issue for organizational success. If managers know the real causes of attrition, managers can control attrition and retain employees. Each retained employee can save money and lead to better opportunities.

Why do Employees Leave?

Most employees leave their work for reasons other than money - and your organization can correct these reasons. Most leaving employees seek opportunities that allow them to use and develop their skills. Leaving employees want more meaning in their work. They often indicate that they want to use their qualities and skills in challenging teamwork led by capable leaders.

•Managerial staff cite "career growth" and "leadership" as the major factors that influence attrition and retention, together with "opportunities for management" "ability of top management" "use of skills and abilities" and "work/family balance"
•Professional employees cite concerns about "supervisory coaching and counseling," "company direction" and "interesting work"
•Clerical employees voice concerns such as "type of work," "use of skills and abilities" and "opportunity to learn"
•Hourly employees notice whether they are treated with respect, their "management ability" and "interesting work"

Employee Orientation

New employees who attend a positive orientation program are 70% more likely to be with the company three years later (Corning Glass).

Exit Interviews

Exit interviews provide an excellent source of information of internal problems, employees' perceptions of the organization, underlying workplace issues, and managers' leadership abilities.

Ineffective Managers

High employee turnover can be recognized and properly attributed to poor managerial performance, emotional intelligence and ineffective leadership. Poorly selected or improperly trained managers can be very expensive.
A Workforce Magazine article, "Knowing how to keep your best and brightest," reported the results of interviews with 20,000 departing workers. The main reason that employees chose to leave was poor management. HR magazine found that 95 percent of exiting employees attributed their search for a new position to an ineffective manager.

Hire attitude; Train skills

Systemic Solutions can help you hire and inspire appropriate employees ...
•Build positive, friendly, teamwork attitudes and commitment to customer services
•Help new employees feel comfortable as they participate as valued team members
•Provide periodic refresher courses to maintain team purpose and functionality
•Apply Expert Modeling to rapidly transfer expert skills within a workforce.

Reduce Attrition: Managers and Professional Employees

Systemic Solutions can help you adjust your company vision and manager's performance reviews to reflect employee turnover, and provide mentoring and interpersonal training to inexperienced managers.

•Develop and communicate a strong strategic vision
•Provide relationship coaching and help people develop to their potential
•Reward managers for their relationship skills - not only on technical know-how and financial results
•People don’t leave jobs, they leave managers! Replace managers who will not develop relationship skills

Reduce Attrition: Clerical and Hourly Employees

Systemic Solutions can help you communicate. Most employees want to know more about their work. We can explain each process and help employees understand the importance of their work. Your employees will become more knowledgeable about their effectiveness. Here are a few ways ...

•Compliments and thanks cost little and can bring great benefits
•Let employees know that their opinions are valuable
•Keep employees informed - don't let them hear important news through rumors
•Update employees with technical information
•Address staff by their first names
•Publicly praise what the employee has accomplished and say why it was important
•Criticize privately about what the employee can do better and explain how to do it better
•Create community with activities such as informal meals or events outside work
•Involve employees in organizational planning
•Titles cost little, and inform people that your employees are valuable

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Posted by "CPerformance" :: 12:58 AM :: 4 comments