Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

Best Practices in Managing Employee Turnover


Consultez-les par la suite

1 sur 38 Publicité

Best Practices in Managing Employee Turnover

Télécharger pour lire hors ligne

You spend too much time and energy to get the right people on your team to just stop worrying about them once they're on. This slideshare looks at employee turnover and how you can minimize it.

You spend too much time and energy to get the right people on your team to just stop worrying about them once they're on. This slideshare looks at employee turnover and how you can minimize it.


Plus De Contenu Connexe

Diaporamas pour vous (20)

Les utilisateurs ont également aimé (14)


Similaire à Best Practices in Managing Employee Turnover (20)

Plus par BambooHR (20)


Plus récents (20)

Best Practices in Managing Employee Turnover

  1. 1. Jennifer Ferris, CCP Sr. Compensation Professional Mykkah Herner, MA, CCP Director of ISX Services www.payscale.com
  2. 2. Ivan Hurtt S E N I O R P R O D U C T M A N A G E R B A M B O O H R ihurtt@bamboohr.com www.linkedin.com/in/ihurtt Mykkah Herner M O D E R N C O M P E V A N G E L I S T P A Y S C A L E @mykkah_herner MykkahH@payscale.com www.linkedin.com/in/mykkahherner
  3. 3. A Changed Perspective
  4. 4. Millennials will comprise 75% of the global workforce by 2025. - Deloitte Millennials 91% of Millennials expect to stay with your company fewer than three years. – Future Workplace v75% v91% Average tenure for Millennials is 2 years (5 years for Gen X) – Payscale v2yrs
  5. 5. 43% 1yr 90- 200% Within the next 10 years, 43% of the US workforce will be eligible for retirement - Forbes Baby Boomers Among the jobs that 39-44 year olds began, one third ended in less than a year – Forbes Cost of replacing an employee is between 90-200% of their annual salary. – SHRM
  6. 6. 83% 23m 52% 83% Of executives say they’re increasing contingent workers. - Oxford Economics Contingent Workers There’s projected to be 23 million contingent workers by 2017 (up 26% in 2 years) – MBO Partners 52% of Millennials expect to work independently (82% in emerging markets). – Deloitte
  7. 7. • Workforce competency and skills gap • Increased competition • Globalization • Culture • Competition for talent • Stresses on work-life balance • Etc. Additional Dynamics
  8. 8. –Bersin by Deloitte
  9. 9. –Ram Charan Best-selling Author, World-renowned Business Advisor
  10. 10. Defining and Quantifying Turnover
  11. 11. the rate at which people leave a place, company, etc., and are replaced by others
  12. 12. Good Turnover vs. Bad Turnover Add good complexity Low Performer High Performer Voluntary Involuntary
  13. 13. Retention is Still a Major Concern PayScale 2016 CBPR
  14. 14. Retention Compensation Recruitment Engagement Development
  15. 15. Common Myths of Employee Turnover
  16. 16. Turnover is Always Bad http://lolsheaven.com/
  17. 17. Turnover is bad for morale Image: https://www.funergizers.com/3-Massive-Mistakes-Which-Lead-to-Low-Staff-Morale
  18. 18. We can predict turnover based on generation
  19. 19. Turnover is always time-consuming and costly
  20. 20. The Role of Corporate Culture in Turnover
  21. 21. Next Gen vs Traditional Organization Flexible work environment Training ground Strong leadership Transparency of decisions and pay Industry and/or job function Millennials vs Highly tenured
  22. 22. "HR today sits smack-dab in the middle of the most compelling competitive battleground in business, where companies deploy and fight over that most valuable of resources— workforce talent." -Matthew D. Breitfelder HBR: “Why did we ever go into HR”
  23. 23. Business Value H L Strategic Operational Micro Small Mid Large HR viewed as a cost center Transactional HR High-Impact HR HR as a strategic investment Evolution of HR
  24. 24. Business Value H L Strategic Operational Micro Small Mid Large Evolution of HR HR viewed as a cost center Transactional HR High-Impact HR HR as a strategic investment
  25. 25. Understand your true worth as a strategic necessity Eliminate the unnecessary shed all the dead weight Organize your information to lay a foundation for insight Automate the operational set yourself free to do great work Maximize business value align activities to strategic outcomes Solve meaningful problems learn to think, act, and win like a business. Measure and report the value and impact of your work ESCAPE ELEVATE
  26. 26. The Impact of Turnover on your Business
  27. 27. • Morale • Engagement • Performance • Training • Knowledge retention • Nimble to market changes • Cost to replace http://www.corporatelearningnetwork.com/
  28. 28. Setting Your Comp Plan Up for Success
  29. 29. http://businessmodelalchemist.com/blog/2011/11/make-your-business-model- clear-with-vivid-thinking-guest-post-by-dan-roam.html Solid Base Pay Plan Clear Strategy Incentive Plan Competitive Market Pay
  30. 30. What is the right compensation mix for my org?
  31. 31. Compensation Strategy Talent Market(s) Industry Size Location Org type Level of competitiveness How aggressively to pay What to reward Performance, Experience, etc
  32. 32. How do organizations use variable pay? 15.8% 18.1% 61.8% 25.7% 40.0% 14.4% Retention bonuses Hiring bonuses Individual incentive bonuses Team incentive bonuses Spot bonuses or other discretionary bonus programs Other (please specify) PayScale 2016 CBPR
  33. 33. Recruitment and Retention Plans 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Merit-based pay plan Non-discretionary incentive based pay plan Discretionary bonus plan Stock option/grant plan Learning and developmental opportunities More perks-gym memberships, catered lunch, etc Other (please specify) 2016 Plans for Recruiting and Retaining Top Performers, by Company Size Less than 100 Employees 100 - 1,000 Employees More than 1,000 Employees PayScale 2016 CBPR
  34. 34. “I found a salary report on the internet and it says I should be paid more…”
  35. 35. Immediate Actions  Calculate turnover rate  Identify good and bad turnover  Brainstorm retention efforts that work  Evaluate your comp plan – does it align with org objectives for retention?
  36. 36. Follow BambooHR and PayScale on social media: bamboohr.com/blog | payscale.com Thank you!
  37. 37. Questions? BambooHR Check out ondemand videos for Elevate at https://www.bamboohr.com/elevate/ Download our free ebook Turnover: The Good, The Bad, and The Ugly at http://resources.payscale.com/hr-whitepaper-turnover-the-good-the-bad- and-the-ugly.html PayScale

Notes de l'éditeur

  • Hedge
  • BHR
  • BambooHR

    Changes both in the workplace and in the workforce.
    Now we have to question everything we thought we knew, all our old approaches
    That implies we have adjust the way we think about staffing and sourcing

    91 percent plan to stay at your company for fewer than 3 years. http://www.forbes.com/sites/jeannemeister/2012/08/14/job-hopping-is-the-new-normal-for-millennials-three-ways-to-prevent-a-human-resource-nightmare/
    89% of Millennials would prefer to choose when and where they work rather than being placed in a 9-to-5 position. https://www.upwork.com/press/
    45% of Millennials will choose workplace flexibility over pay. http://www.forbes.com/sites/katetaylor/2013/08/23/why-millennials-are-ending-the-9-to-5/
    Average tenure for Millennials is 2 years (compared to 5 years for Gen X and 7 years for Baby Boomers.) http://www.prweb.com/releases/2012/8/prweb9817689.htm
    It costs an average of $24,000 to replace each Millennial employee. http://microsoft.message.ch/s2bSilverlight/silverlight/PDFs/cost_of_turnover.pdf
    Contingent workers:
    83% of executives say they're currently increasing the amount of contingent workers in their companies. http://www.forbes.com/sites/sap/2014/12/19/the-rise-of-the-contingent-worker/
    There are projected to be 23 million contingent workers by 2017 (a 26 percent increase since 2013). http://www.cbsnews.com/news/temp-work-raises-long-term-questions-for-economy/
    Remote workers:
    34 percent of companies said more than half of their full-time workforce will work remotely by 2020, and 25 percent said more than three-quarters would not work in a traditional office by 2020.  http://www.fastcompany.com/3034286/the-future-of-work/will-half-of-people-be-working-remotely-by-2020
    Telework grew by 73% in the last 6 years. http://www.thefranchiseking.com/working-from-home-franchise-businesses
    Lack of knowledge workers

  • BHR
  • BHR
  • BHR
  • BHR
  • BHR

    Which has recently led Bersin to conclude that right now, perhaps more than in the last 20 years, human resource jobs are some of the most important roles in business, forcing HR to up their game.
  • BHR

    And that’s primarily because businesses don’t create value; people do, as Ram Charan put it.

    HR has a critical role to play in our organizations ability to survive and thrive in this competitive economic battleground. And much of that impact centers around who we bring into our organizations, and how we bring them in. So let’s dive in and unwrap this a bit.
  • Crystal TIME: ~ 5 min
  • Retention efforts vs turnover reduction efforts
  • Potentially many causes of turnover.

    We like to think of compensation as a keystone – that central stone in the arch that holds everything together and makes the arch able to withstand external pressure (from outside the organization).
  • Mykkah TIME: ~ 15-20 min

    Ensure Fair Pay
    Resolve Manager Bias
  • There are really 5 different generations in the workforce right now.

    TRADITIONALISTS - 1900 - 1945 (Age 71+)
    Sometimes called the Silent Generation
    They currently makeup slightly less than 5% of the workforce.
    Their characteristics and preferences are important to consider if they are part of your workforce, but when thinking about compensating the workforce of the future they probably won’t be a driving force
    Career Mindset: similar to Boomers, also Age=Seniority, Company first
    BABY BOOMERS (Age 52-70)

    GEN X (Age 37-51)
    Never became the biggest generation
    MILLENNIALS (Age 21-36)
    Sometimes also called Gen Y
    Modern technology started during their formative years
    GEN Z (Up to Age 20)
    Sometimes called the iGen
    We’re not really sure who they are yet, and the defining line between Millennials and Gen Z is still fuzzy
    We do know that they grew up with technology and it impacts how they think and communicate.

    From the last generations package on the consumer side http://www.payscale.com/data-packages/generations-at-work:
    - 72% of millennials are more likely to value opptys for career advancement (vs 52% and 64% for boomers and gen xers respectively)
    - 72% also value the chance to learn new skills, vs 48% and 62% of boomers and gen xers

    Millennials opened the door – we all walked through
  • Crystal TIME: ~ 30-35 min
  • BHR

  • BHR
  • BHR
  • BHR
  • Strategy
  • Compensation Strategy Questions
    The following questions are to help get you thinking about the compensation strategy you would like to see in your organization in the coming years:
    How do you define your market? Who do you compete with for talent?
    What industry/ies do you use for competitive benchmarking?
    How large are the organizations you tend to compete with?
    In what locations are you looking for talent? Are you looking locally or nationally?
    What about any remote employees you may have? Do you compete in multiple markets in various segments of your workforce depending on location, department or function, level in the organization?
    How competitive do you want to be relative to the market? Do you want to meet the market? Exceed the market? Are there segments of your workforce that you may want to target lower than the market? Do you have a high incentive program – and if so do you still want to target the market or aim lower than the market to account for high incentive pay?
    What do you want to reward? How do you want to prioritize your limited compensation budget? What have you been rewarding with your compensation dollars so far and would you like to see a shift? Do you want to reward performance? Tenure? Hot jobs or skills? Proficiency?
  • Defining Incentive vs Bonus (Umbrella term vs getting specific)

    81% of top performing companies give bonuses, vs 74% of all.
  • Transparency… people are looking… competitive landscape for talent, etc.

  • Quiz:

    What actions have you taken to encourage and protect diversity at your organization?