Attrition control and retention strategies for changing times
Managerial Report FINAL
1. July 28, 2014
Sandra Fritz
HR Manager-HMS Host
474 North 3700 West
Salt Lake City, UT 84122
Dear Sandra:
This report is in response to the 30-60-90 Touch-Base Program we discussed. We
set out to develop a deployable program that would allow us to get candid feedback
from employees, particularly new hires, to help identify where we can improve
onboarding and assimilating new employees into the company. We believe this
program will help reduce new hire attrition, which will improve morale, improve
our ability to serve and satisfy our customers, and ultimately, positively impact the
bottom line.
We have spent considerable time researching studies that discuss and evaluate
employee behavior. In addition, we have conducted surveys and interviewed
employees both internally and externally to help identify where and how we can
make the right changes.
We recognize that while this program is considered complete, some adjustments
will need to be made. We believe that over time, this can be a key part in HMS
standard procedures and would be beneficial to both management and your first
line employees.
Sincerely,
Douglas Petty Clint Stosich Robin Smith
Greg Dowse Tonie Silva Mark Horan
2. REDUCING EMPLOYEE TURNOVER AT HMS
Prepared for:
Sandra Fritz
Human Resource Manager
HMS Host-Salt Lake Int’l Airport
Salt Lake City, Utah
Prepared by:
Doug Petty
Greg Dowse
Robin Smith
Clint Stosich
Tonie Silva
Mark Horan
Salt Lake Community College
Business Communications 2200
July 28, 2014
3. EXECUTIVE SUMMARY
As with many large retail companies, HMS host is faced with very high employee
turnover. Through primary and secondary research, we have found that the first
ninety days of employment can be crucial to employee retention.
Based on our survey results, success rate in retention increased with more training
days and consistent training. Your employees can contribute to the success of your
company when they are trained properly to perform their job above and beyond
expectation. Thoroughly trained team members will also result in higher customer
satisfaction.
We’ve outlined the top six reasons employees quit. Our surveys with HMS Host
employees show co-worker relationships as one of the top reasons they would
leave.
1. Lack of opportunity for advancement
2. R-E-S-P-E-C-T
3. Relationships with co-workers
4. Poor Communication
5. Staff Shortages
6. Pay and benefits
“Studies indicate that companies with best-in-class onboarding practices are three
times as likely to retain their talent during that crucial first year of employment”
(Miller). Employees want to perform well, advance, and feel a sense of pride and
accomplishment. Some main suggestions for employee satisfaction include:
1. Make certain employees know what you expect of them.
2. Create open communication between employees and management.
3. Provide (and ask for) regular feedback.
We conclude that feedback always helps both the employee and the employer. We
have found that most employees WANT to communicate; they just don’t always have
the forum to do so.
We recommend a 30-60-90 Touch-Base Program and believe that it is critical for
employee success and retention. Without a feedback mechanism for employees to
share their experience, concerns are unlikely to be found.
4. TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY………………………………………………………………………………………………….ii
INTRODUCTION……………………………………………………………………………………………………………1
Purpose…………………………………………………………………………………………………………….1
Scope………………………………………………………………………………………………….....................1
Limitations………………………………………………………………………………………………………..3
Sources and Methods…………………………………………………………………………......................3
Report Organization…………………………………………………………………………………………..3
FINDINGS………………………………………………………………………………………………………………………4
Employee Success Rate……………………………………………………………………………………….4
Consistent Training…………………………………………………………………………………………….5
Reasons for Quitting Based on Surveys……..…………………………………………………………6
Top Reasons Employees Quit………………………………………………………………………………6
Tips to Retain your Employees…………....………………………………………………………………8
CONCLUSIONAND RECOMMENDATIONS……………………………………………………….......................10
CONCLUSION……………………………………………………………………………………………………10
RECOMMENDATIONS………………………………………………………………………………………..10
REFERENCES………………………………………………………………………………………………………………...11
APPENDICES…………………………………………………………………………………………………………………12
APPENDIX A: 30-60-90 TEAM……………………………………………………………………………12
APPENDIX B: Survey Template………………………………………………………………………….15
APPENDIX C: Survey Data…………………………………………………………..................................20
APPENDIX D: Raw Survey Data........................................................................................................30
APPENDIX E: Deployable30-60-90…………………………………………………………………….51
5. 1
INTRODUCTION
PURPOSE
The primary objective is to evaluate the current level of job satisfaction of
employees. Part of this focus is on the amount of job training the average person
receives and the overall introductory period during the first ninety days of
employment. The final outcome is to recommend that HMS Host deploy a “30-60-90
Touch-Base Program,” which is designed to open the lines of communication
between the employer and the employees. Effective use of this program will be a
key element in helping lower employee turnover.
SCOPE
Employee turnover is nothing new for most businesses. Human Resource
departments across the globe are working tirelessly each day to reduce this number,
but many times struggle just to keep their heads above water. Many businesses
want to change this trend and are taking steps to gain feedback from their
employees, which in turn, improves communication.
Job satisfaction has many variables depending on each business type, but some basic
principles can be applied to just about everyone. Let’s take a closer look at a
familiar company’s journey to reduce employee dissatisfaction and turnover.
If you were to take a survey,
asking kids where they want
to go on vacation, you would
probably get a 95% return
rate for Disneyland.
Disneyland is the destination
for many family vacations,
known as the Happiest Place
on Earth. This is a place
where kids expect to be
overwhelmed with joy. But
just how happy are their
employees?
“Six out of Seven Dwarfs are “NOT HAPPY", read a tee shirt at one of the parks. This
surprising unhappiness sparked the publication of an article, found at
“Disneyatwork.com” (Kober). Reactively, two years ago, Disney started an annual
survey for its employees to gain more employee feedback. “I want Disney to be one
of the most admired companies in the world, and we cannot do it without our
employees” (Iger).
6. 2
Of the 92,000 employees that were surveyed (Kober), below is a list of the results.
87% of employees say they are proud to work for The Walt Disney Company.
80% of employees believe the business segment they work in develops
creative products, services and content.
70% believe their business is leading the industry and is evolving and
making the changes required to compete effectively in the marketplace.
80% believe their business segment is committed to creating and supporting
a diverse workplace.
80% of Disney
employees across the
globe find their jobs
both challenging and
interesting.
77% understand how
their jobs fit with the
goals and strategies of
their business
segment.
90% understand the
role they can play in
helping Disney to be a
responsible company.
Based on the survey results, Disneyland and Walt Disney World Eyes & Ears, both
outlined some improvement areas that can be applied to ALL businesses.
Providing more opportunities for collaboration and teamwork.
Better communicating the actions we’re taking in response to your survey
feedback.
Opportunities for our Cast to set and pursue career objectives.
Improving our operational efficiency.
Walt Disney World understands that employee feedback is an essential part of
growing business. Employees need to feel like their voice is being heard, the ones
that do become less likely to job-hop, and more likely to settle into a career.
7. 3
LIMITATIONS
Due to the Summer Semester time frame, we’ve been restricted in only having three
weeks to compile the information for this report. As a group of six students, we
have found it challenging to meet outside of class, so we have relied heavily on email
and our Google Doc’s Drive for communication. Had we had more time, we feel that
more surveys could have been completed to support our initial findings.
SOURCES AND METHODS
As a team we developed two methods to gain
feedback for our project. The first method was a
written survey, primarily focused on HMS Host
employees that do not have a company email
account. The second method was an online survey,
with the focus being on businesses outside of HMS
Host.
The intent was to gain a different perspective and see if there are any similarities.
(See Appendix B for a copy of the surveys).
In addition to the surveys, we interviewed several HMS Host employees. The results
of the surveys will be presented throughout this report.
Characteristics of the 115 survey respondents
Companies Surveyed: HMS Host, Crest Financial, Zion’s Bank, and an IT Firm.
Non-Management at HMS Host
REPORT ORGANIZATION
The contents of the rest of the managerial
report will be:
Success rate based on training
Consistent training
Reason for quitting from survey
results
Top 6 Reasons Employees Quit
Tips to retain your workforce
Conclusion
Recommendations
8. 4
FINDINGS
SUCCESSFUL IN CURRENT POSITION
A large factor in becoming successful in your current job position depends heavily
on the amount of training you receive. Too often, training becomes secondary,
which leaves the newly hired employee confused and often very frustrated.
In evaluating surveys completed by HMS host employees, we found a correlation
between training and success. Respondents were asked how many days of training
they received, and if they felt like they were given enough training to be successful
in their position. Only 33% of people who received 0-3 days of training felt they
received enough training to be successful. The percentage jumped dramatically, to
50% when training reached 4-10 days. The success rate hit 100% when the training
days went above ten days.
Figure 1
Obviously, the amount of training days would vary from business to business and
from different positions, but these results are telling in that training is a very
important part of job satisfaction. Employees need job training to gain the
confidence required to be successful in their position. The more training an
employee receives, the higher the percent increases towards the success rate.
When comparing survey numbers outside HMS, we see a similar trend that shows
the more days the employees receive of training; the more likely they will feel that
they can be successful (See Figure 1). For training of more than ten days, the
percentage dropped but still reflects a higher percentage compared to 0-3 days.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-3 Days 4-10
Days
11-21
Days
22+
Days
33%
50%
100% 100%
68%
81% 75% 78%
Success Rate Based on Training
HMS
Outside HMS
9. 5
CONSISTANT TRAINING
As you think of consistent training, think about going to your favorite restaurant.
Don’t you expect your food to taste the same way every time you go? Without a
doubt, the answer is YES… Training is a big part of ensuring this happens, so if
everyone is trained a different way, you are less likely to receive what you expect.
Based on the surveys we collected, a large percentage of employees from all
companies felt that training procedures were not consistent (See Figure 2). Taking
a closer look at each company, HMS scored considerably lower, as 37% of all survey
respondents said they did not receive consistent training, versus 51% outside HMS.
Figure 2
0%
10%
20%
30%
40%
50%
60%
37%
51%
Did Not Receive Consistent Training
HMS
Outside HMS
10. 6
Retaining your work force is very important and can become very costly for a
business. Natural attrition is uncontrollable but still must be reviewed. Below are
the results from our recent survey at HMS Host and other companies (See Figure 3).
Figure 3
As we can see from the survey results, co-workers play a big part in why employees
leave HMS Host. Many factors can impact this survey. Implementing a 30-60-90
Touch-Base Program would help identify some of these issues during the first 90
days of employment. Refer to our recommendations for more details. We’ve
discussed these reasons, and possible others in more detail below.
TOP REASONS EMPLOYEES QUIT
Lack of opportunity for advancement- Advancement doesn't necessarily
mean promotion. More often, it means personal and professional growth.
People want to be better tomorrow than they are today (Irwin).
R-E-S-P-E-C-T- is new to the top five list this year according to Kropp. Like
compensation, it’s something that employees are starting to expect in the
new and increasingly comfortable workplace. “It’s not a do your work and
keep your head down environment anymore,” he says. “Everyone is looking
to be recognized and respected for their individual contribution” (Casserlt)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
20% 20%
47%
13%
47%
31%
6%
7%
18%
39%
ReasonFor Quitting
HMS
Outside HMS
11. 7
Relationships with co-workers- “When an employee leaves my company,
every email that is sent to the whole company, to say good-bye, includes a
comment about passionate coworkers who
the employee cares about and will miss.
Second only to an employee’s manager, the
coworkers with whom he sits, interacts, and
serves with on teams, are critical
components of an employee’s work
environment”. Research from the Gallup
organization indicates that one of the 12
factors that illuminate whether an employee
is happy on their job is having a best friend at
work. Relationships with coworkers retain
employees (Heathfield).
Poor Communication-
Employees are frustrated with supervision.
Management is not communicating with staff in an open and timely
manner.
Clear expectations have not been communicated.
Their relationship with their supervisor is poor.
(Some Top Reasons Employees Leave Their Jobs )
Staff Shortages-
Employees are overworked. They are
working long hours, plus weekend
work, with no relief in sight.
Administrative help has been cut back
and counselors are using their time
for clerical duties.
They are bogged down with
paperwork.
(Some Top Reasons Employees Leave Their Jobs )
Pay and benefits- Engaged employees are far more likely to perceive that
they are paid appropriately for the work they do (43%), compared to
employees who are disengaged (15%) or actively disengaged (13%). And
pay and benefits become a big issue if employees feel that their coworkers
aren't committed to quality; they may feel entitled to extra compensation to
make up the difference or to make them feel like they are truly valued by
their employer (Robison).
12. 8
TIPS TO RETAIN YOUR EMPLOYEES
“According to Workforce magazine, within six months of being hired nearly one-
third of employees are already looking for a new job. Studies indicate that
companies with best-in-class onboarding practices are three times as likely to retain
their talent during that crucial first year of employment (Miller).”
Ensure employees know what you
expect of them- It may seem basic,
but often in small companies,
employees have a wide breadth of
responsibilities. If they don’t know
exactly what their jobs entail and
what you need from them, they can’t
perform up to standard, and morale
can begin to dip (Employee Retention
– How to Retain Employees)
Create open communication between employees and management-
Hold regular meetings in which employees can offer ideas and ask questions.
Have an open-door policy that encourages employees to speak frankly with
their managers without fear of repercussion (Employee Retention – How to
Retain Employees).
Provide (and Ask for) Regular Feedback- “People dread yearly reviews
because it's often the only time they get feedback — and what if they've been
unknowingly doing something wrong in the 364 days since last year's
review? Reviews are the exact opposite of ripping a Band-Aid off — a little
tug here and there actually saves pain (and frustration!) in the long run”
(Drell).
Turnover Costs Money-“Various estimates suggest that losing a middle
manager costs an organization up to 100 percent of their salary. The loss of a
senior executive is even more costly. I have seen estimates of double the
annual salary and more” (Heathfield).
13. 9
Demonstrates the advantages of where they work- Being a great
workplace is part of the companies brand. It’s creates the pull factor to draw
candidates to the company and helps reinforce why they stay. (Hedges)
14. 10
CONCLUSION AND RECOMMENDATIONS
CONCLUSION
Feedback helps! Through our findings we have come to recognize that a 30-60-90
Touch-Base program is critical for employee success. Without a feedback
mechanism for employees to share their experience, employee concerns are unlikely
to be found, which means there is no hope of fixing them. Without fixing the
concerns, employee moral decreases, work may be subpar and costs will rise.
Our findings show many areas where businesses could improve. Here are just a few
areas to consider:
Inconsistent training
Reasons for quitting
Employee morale
Innovation
Most employees are willing to talk. Communicating with employees through
questionnaires and interviews, help the employee feel appreciated. The employee
opinions overall help draw a clear insight to what is being done well and what needs
improvement. Management can then take this information and adjust or create
programs aimed at improving employee training and morale.
RECOMMENDATIONS
We recommend implementing the 30-60-90 Touch-Base Program outlined in this
report. This consists of utilizing the questionnaire that has been created with each
new employee at 30, 60, and 90 days of employment.
The main focus of this program is not to evaluate the employee from a managerial
standpoint, but to create a workplace where employees feel empowered to share
candid feedback. We are assuming that ongoing managerial review of employee
performance is presently an ongoing process. The information gained in a 30-60-90
review will in turn allow management to implement necessary changes to create a
workplace environment conducive to retaining good employees.
Most of all, we encourage administrating managers to not only use this time to
evaluate and coach employees, but to have a spirit of understanding of exactly how
they feel, and what they need to be more successful in their positions. We also
encourage managers that will be administrating this program to collaborate. We
expect that while this program is a sound foundation, there will be ongoing
modifications and adjustments to fine tune what works best to get the most relevant
feedback from new employees.
15. 11
REFERENCES
Casserlt, Meghan. The Top Five Reasons Employees Will Quit In 2013. 2 Jan 2013.
<http://www.forbes.com/sites/meghancasserly/2013/01/02/the-top-five-
reasons-employees-will-quit-in-2013/>.
Drell, Lauren. 8 Ways to Keep Your Employees Happy. 4 Dec 2013.
<http://mashable.com/2013/12/04/employee-retention/>.
Employee Retention – How to Retain Employees. 2014.
<http://guides.wsj.com/small-business/hiring-and-managing-
employees/how-to-retain-employees/>.
Heathfield, Susan M. Top 10 Reasons Why Employees Quit Their Job. n.d.
<http://humanresources.about.com/od/resigning-from-your-job/a/top-10-
reasons-employees-quit-their-job.htm>.
Hedges, Kristi. How Managers Keep Employees From Jumping Ship. 22 May 2014.
<http://www.forbes.com/sites/work-in-progress/2014/05/22/how-
managers-keep-employees-from-jumping-ship/>.
Iger, Bob. Disney Employee Survey: How Happy is Disney? 17 Jan 2013.
<http://disneyatwork.com/2013/01/disney-employee-survey/>.
Irwin, Terry. Five Top Employee Retention Strategies. 29 Nov 2011.
<http://www.mondaq.com/x/155322/Five+Top+Employee+Retention+Stra
tegies>.
Kober, Jeff. Disney Employee Survey: How Happy is Disney? 17 Jan 2013.
<http://disneyatwork.com/2013/01/disney-employee-survey/>.
Robison, Jennifer. Turning Around Employee Turnover. 8 May 2008.
<http://businessjournal.gallup.com/content/106912/turning-around-your-
turnover-problem.aspx#2>.
Some Top Reasons Employees Leave Their Jobs . 21 Feb 2013.
<http://www.attcnetwork.org/explore/priorityareas/wfd/grow/topreasons
.asp>.
16. 12
APPENDIX A
TEAM 30-60-90
Doug Petty
Doug Petty is a part-time student at Salt Lake Community
College, as he works as the Director of Operations for a major
retail company. Doug is currently working towards an
Associates of Science Business Degree, with the intent on
transferring to the University of Utah, working towards a
Bachelor’s Degree.
A similar 30-60-90 Touch-Base Program is being used at Doug’s
current employer, which is where the idea came from. He wanted to help HMS Host
implement something comparable, based on the results, which has improved
communication in his workplace.
Clinton Stosich
Clinton Stosich is a part-time student at Salt Lake Community
college. Clinton recently completed an Associates of Science
degree at Utah State University and will be completing a
Bachelor of Science degree at Utah State University with an
expected graduation in 2015.
Clinton currently works as an account manager for an IT
solutions provider. He brings over 15 years of sales experience
including 5 years of business-to-business account sales. Some of his experience
includes managing employees and sales teams. In addition, he has held an active
Real Estate license since 2004.
17. 13
Robin Smith
Robin Smith works full time as an Assistant Category Manager in
the Procurement department at Associated Food Stores. She has
worked in the grocery industry for over fifteen years. Robin is
currently taking two classes at Salt Lake Community College and
will obtain a Business Management certificate this year. When
not at work or school, Robin’s two daughters keep her busy with
camping, swimming, volleyball and Girl Scouts.
Mark Horan
Mark Horan was born in Utah and is currently a part-time
student at Salt Lake Community College. He's working towards
an Associate’s degree in business and is on track to finish by
summer 2015. He plans to continue his schooling through a local
university in order to obtain a bachelor’s degree.
Mark is also a specialist in the United States Army Reserve and
works full time at Verisk Health. These jobs allow him to interact
with many other people from other walks of life.
Greg Dowse
Greg is currently a full time student at Salt Lake Community
College. He is a duel major working on his Bachelor’s degree in
Business and Associate’s in Criminal Justice. Greg works for a
financial company called Crest Financial as an underwriter,
working his way to becoming a mortgage underwriter.
18. 14
Tonie Silva
Tonie Silva is a part-time student working on her Associate’s
Degree in Accounting, planning to graduate in December of 2014.
Tonie has worked full time at Zion’s Bank for the past sixteen
years and is a manager over nine employees in the Commercial
Loan Operations Department.
Tonie is married with two children, and one eight-month-old
grandchild. Tonie enjoys spending time with her family and
friends, camping, riding quads, and reading books.