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Employee retention

  1. 1. 1 Employee Retention  Sandy Chan  Michael Cornwell  Matthew Vogel
  2. 2. 2 Catbert Understands Employee Retention
  3. 3. 3 Topics  Overview: Turnover and Retention  Truths About Turnover  How Do We Find Out What Is Causing Turnover?  Employee Burnout  Succession Planning
  4. 4. 4 Overview  What causes attrition?  How can agencies improve retention rates?  What retention problems are unique to the public sector?
  5. 5. 5 Truths About Turnover Adapted from Branham, Keeping the People Who Keep You in Business  Truth #1: Turnover Happens  So focus on keeping the best.
  6. 6. 6 Truth #2: Some Turnover Is Desirable  Zero turnover is actually not desirable.  New employees bring new ideas and keep things from becoming stagnant.
  7. 7. 7 Truth #3: Turnover is Costly  The cost of replacing a lost employee, including productivity cost can be between one and two and a half times the salary of the job in question.
  8. 8. 8 Truth #3: Turnover is Costly Turnover Costs Direct Costs: Recruitment Advertising................. Applicant Expenses........................ Selection Testing........................... Medical Exam/Screening................. Background Check......................... Indirect Costs: Employment Office Overhead.......... Orientation Time........................... Training Time................................ Reduced Productivity...................... Actual/Estimated Costs $______________ $______________ $______________ $______________ $______________ $______________ $______________ $______________ $______________
  9. 9. 9 Truth #4: Money is Not the Answer In survey after survey, money ranks far behind things like:  Meeting a Challenge  Using One’s Talents  Having a Good Manager  Opportunity for Advancement
  10. 10. 10 Truth #4:Money is Not the Answer Agencies focused on retention will find a way to:  Show employees that results are valued.  Recognize important contributions.  Provide a sense of ownership.
  11. 11. 11 Truth #5: Reasons Good People Leave - Management 1. Management demands that one person do the job of two or more. 2. Management cuts back on administrative help, making professional workers take on those tasks. 3. Management puts a freeze on raises and promotions. 4. Management doesn’t give the rank and file a sense of ownership.
  12. 12. 12 Truth #5: Reasons Good People Leave - Management 5. Management constantly reorganizes and shuffles things around. 6. Management doesn’t clarify goals or decisions. 7. Management shows favoritism for some employees over others.
  13. 13. 13 Truth #5: Reasons Good People Leave - Management 8. Management relocates offices to another site forcing employees to resituate their commute.
  14. 14. 14 Truth #5: The Top Ten Reasons Good People Leave 9. Management promotes someone who lacks training or necessary experience to a supervisory position. 10. Management creates a structure that has internal departments competing against each other instead of cooperating.
  15. 15. 15 Truth #6: Reducing Turnover Takes Commitment When senior management is not committed, organizational policies, practices, and culture can undermine retention efforts.
  16. 16. 16 What Causes Attrition?  Hire the right people for the right job.  XXXXXXXX
  17. 17. 17 What are the differences between the public and private sectors?
  18. 18. 18
  19. 19. 19 Interviewing
  20. 20. 20 Learning to Stop Attrition  Climate and Satisfaction Surveys offer direct feedback from current employees.  Exit Interviews offer insight of employees that have made the decision to leave.
  21. 21. 21 The Art of the Exit Interview  In-depth questions reveal trouble spots.  Avoid “top of mind” answers by following up.  Ask if there is anything that might be done to help a good employee stay.
  22. 22. 22 Offering Confidentiality  People leaving a job may not want to risk burning bridges.
  23. 23. 23 Interviews vs. Surveys  People are less likely to give candid answers in person than in an anonymous environment like a survey.
  24. 24. 24 Asking the Right Questions  Establishing Expectations: 1. What brought you to this agency? 2. What drew you to this position? 3. What were your expectations from this job?
  25. 25. 25 Asking the Right Questions  Evaluating Management: 1. Did you get the support you needed from your management? 2. What, if anything, could management have done to prevent your leaving?
  26. 26. 26 Asking the Right Questions  Job Satisfaction:
  27. 27. 27 Asking the Right Questions  Job Satisfaction: 1. What is your primary reason for leaving? 2. What are you satisfied with? 3. What are you dissatisfied with? 4. Compensation
  28. 28. 28 Asking the Right Questions  Open-ended Questions  Choice (multiple vs. single answer)  Matrix Questions
  29. 29. 29 Asking the Right Questions Demographics:  Age  Sex  Position  Time-in-Service  Education  Next Step in the Career Plan
  30. 30. 30 Acting on Answers  Employers need to act on interview and survey results if they are to be effective.  If employees perceive that answers do not lead to action, they will give up on the process. (Why go through the trouble to interview or survey if you’re not going to do anything with the results?)
  31. 31. 31 Burnout In The Workplace Sandy Chan Public Administration 700 December 7, 2006
  32. 32. 32 Agenda  Definition of Burnout  Background  Myths  Why Is Burnout Important?  Causes  Signs  Implications
  33. 33. 33 Burnout Emotional exhaustion, apathy and reduced personal accomplishment resulting from prolonged stress, overwork or intense activity
  34. 34. 34 Background  “Burnout” coined in 1980 by Herbert J. Freudenberger  Academic roots in human services Nursing/Medicine Education Eligibility Work Law Enforcement Social work  Academia and private employers are paying more attention to it as globalization and technology are changing the workplace.
  35. 35. 35 Background Globalization  Outsourcing, mergers, layoffs – Same/more work to do by fewer people  A service-based economy rather than a manufacturing-based one – more work based on building relationships with others Technology  E-mail, instant messaging, mobile communication devices allow for a much more demanding and fast-paced workplace
  36. 36. 36 Myths  It is a problem and the responsibility of the individual, not the workplace  Problems outside of work are interfering with job performance  An attitude problem – always complaining but not taking responsibility for one’s own actions  A sign of weakness, instability or misfit for the job
  37. 37. 37 Myths  An inevitable--but manageable--part of working life  Personal problems call for personal solutions – get rest, get help or get out  There’s not much an organization can do to solve it But these assumptions fail to take the problem into context
  38. 38. 38 Why Is Burnout Important?  Burnout is costly to individuals and the workplace  Reduced productivity due to poor morale  Employee sickness  Employee backlash in the form of sabotage or theft  Potential loss of best employees – those who care the most tend to burn out first
  39. 39. 39 Why Is Burnout Important  Workers compensation, law suits  The spending of time and money for recruiting & training  Public relations problems & lost business  The future of the company/organization and society
  40. 40. 40 Wayne State University School of Medicine, 2004
  41. 41. 41 Causes  Work overload  Lack of control over work  Insufficient Reward  Breakdown of Community  Absence of Fairness  Conflicting Values
  42. 42. 42 Signs  Anxiety  Sleeplessness  Sickness  Irritability toward colleagues and family  Cynicism  Depersonalization  Thoughts of leaving the job
  43. 43. 43 Implications  Not an individual problem – it’s a workplace problem  Employees want work that is challenging and rewarding, but when the environment is conducive to burnout, employees will be able to put less and less energy into their work.  Show appreciation for work done and reward accomplishments  Allow employees flexibility and autonomy over their work
  44. 44. 44 Implications  Ask for employee input about changes or disturbances before implementing them  Mentality should be “An ounce of prevention is a pound of cure” instead of “If it ain’t broke, don’t fix it.”  Resolution will have to constantly evolve as the workplace evolves, so effective communication is key.
  45. 45. 45
  46. 46. 46 Planning for the Future: Succession Planning Michael Cornwell PA 700 Fall 2006
  47. 47. 47 Succession Planning  “The King is dead. Long live the King!”  Human resource management strategy aimed at mitigating organizational loss incurred by retirements and other forms of separation through HR forecasting.  Identifying and grooming candidates for key positions through career path development, coaching, and mentoring.  Also refers to large number of separations through mass retirement.
  48. 48. 48
  49. 49. 49 Demographics  Baby Boomer: 1946 - 1964 29.4% of eligible workforce*  Generation X: 1965 - 1975 14.2% of eligible workforce  Generation Y: 1976 - 1999 less than 6.7% of eligible workforce *2005 Bureau of Labor Statistics
  50. 50. 50 Demographics
  51. 51. 51 *Please insert Retirement  Pencil joke here
  52. 52. 52 Retirement  Social Security full retirement age ranges from 65 to 67, depending on year of birth.  Public Safety occupations often allow retirement at an earlier age. • Example: Police and firefighters in SF can retire at age 50.  Baby Boomers currently ages 42 to 60.  U.S. life expectancy*: • Male - 75.02 years • Female - 80.82 years
  53. 53. 53 Impact on Public Sector  Immediate impact on Public Safety occupations (Police, firefighters), because of earlier retirement ages.  Healthcare costs continue to rise. Massive retirements will place strain on pension plans- which typically provide better healthcare benefits than those found in the private sector.  Public health professions may experience significant increases in caseload size as Baby Boomers’ health declines.
  54. 54. 54 Coping with Labor Shortages  Women in the workforce  Immigration Re-thinking immigrant labor  Delayed retirement Incentives to remain in workforce longer  Reduced pension/benefits packages

Notes de l'éditeur

  • In any healthy job market, people are going to move on to greener pastures, focus on those you can least afford to loose. Track “avoidable turnover” that occurs among your best employees and find out how you can keep those people in the future.
  • If all employees stay, as the agency grows, more people will be near the top of their salary range – salary expenses will become extremely high.
    New employees bring new approaches, abilities, and attitudes. They can keep an organization from becoming stagnant.
    Sometimes the wrong people stay while the right people leave. As one manager put it, “Some quit and leave, others quit and stay”.
  • Sandy will talk a little more about the costs of losing good employees, but here we see just a few of the costs associated with bad turnover. In addition, we could include: Agency/Search Fees, Referral Bonuses, Relocation Expenses, Management’s Time, Service Disruption, and Unaddressed Workload. We could go even further into Indirect Costs if we could look at changes in morale, loss of experience, and “agency memory”.
  • Of course, we can’t retain good employees without paying them a fair salary. Workforce Retention Surveys find that although money is important to an extent, the work environment, the individual supervisor, and the quality of the job are the most important factors in creating a productive workplace. When asked “What causes you the greatest dissatisfaction at work?” “Lack of appreciation” led the list followed by “too much paperwork”, and “problems with supervisors”. Only 20 percent responded with pay and benefits.
  • In the business world, the companies that achieve noticeable reductions in attrition are the companies that have committed CEOs. Making the managerial changes needed to raise retention rates requires a commitment to coaching, motivating, and developing employees.
  • People are less likely to give honest answers to exit interview questions if they think they may come back to work for an agency again in the future. Internet or 3rd party surveys help insure confidentiality and therefore reliable feedback.
  • Web based survey systems have quickly proven themselves to be convenient and effective. They are less expensive, more interactive, and easier to deploy than traditional paper based surveys. They are also easier to tabulate and analyze. They attract a higher response rate and shorter response times.
  • Begin a survey by targeting any emerging issues within your agency. There are some general questions that should be used in most all surveys, but surveys should also be tailored to an agency’s particular needs.
    These first questions establish whether or not the employee had a good understanding of what they were getting in to and if they had realistic expectations. If expectations are unrealistic, the employee’s answers will carry that color.