One of your best employees resigns out of the blue. Not only do you have to find a replacement for such a talented team member — no small feat when skilled professionals are in high demand, as they are today — but you also have to consider the impact this departure will have on the rest of your staff.
Turnover also affects organizational performance. High-turnover industries such as retailing, food services, call centres, elder-care nurses, and salespeople make up almost a quarter of the United States population.
The theories have overlap, but the fundamental nature of each model differs.
While Maslow's hierarchy implies the addition or removal of the same need stimuli will enhance or detract from the employee's satisfaction, Herzberg's findings indicate that factors garnering job satisfaction are separate from factors leading to poor job satisfaction and employee turnover.
Herzberg's system of needs is segmented into motivators and hygiene factors. Like Maslow's hierarchy, motivators are often unexpected bonuses that foster the desire to excel.
Hygiene factors include expected conditions that if missing will create dissatisfaction. Examples of hygiene factors include bathrooms, lighting, and the appropriate tools for a given job.
Employers must utilize positive reinforcement methods while maintaining expected hygiene factors to maximize employee satisfaction and retention.
Once identified, a program can be tailored to meet the unique needs of the organization. A variety of programs exist to help increase employee retention. Through surveys, discussion and classroom instruction, employees can better understand their goals for personal development.
With these developmental goals in mind, organizations can — and should — offer tailored career development opportunities to their employees. Executive Coaching — Executive coaching can be used to build competencies in leaders within an organization. Coaching can be useful in times of organizational change, to increase a leader's effectiveness or to encourage managers to implement coaching techniques with peers and direct reports.
The coaching process begins with an assessment of the individual's strengths and opportunities for improvement. The issues are then prioritized and interventions are delivered to target key weaknesses. Motivating Across Generations — Today's workforce includes a diverse population of employees from multiple generations.
As each generation holds different expectations for the workplace, it is important to understand the differences between these generations regarding motivation and engagement. Managers, especially, must understand how to handle the differences among their direct reports.
Women's Retention Programs — Programs such as mentoring, leadership development and networking that are geared specifically toward women can help retain top talent and decrease turnover costs. It is important for organizations to understand the perspective of the employee in order to create programs targeting any particular issues that may impact employee retention.
Exit Interviews — By including exit interviews in the process of employee separation, organizations can gain valuable insight into the workplace experience. Exit interviews allow the organization to understand the triggers of the employee's desire to leave as well as the aspects of their work that they enjoyed.
The organization can then use this information to make necessary changes to their company to retain top talent. Exit interviews must, however, ask the right questions and elicit honest responses from separating employees to be effective.
Employee Retention Consultants — An employee retention consultant can assist organizations in the process of retaining top employees.
Consultants can provide expertise on how to best identify the issues within an organization that are related to turnover. Once identified, a consultant can suggest programs or organizational changes to address these issues and may also assist in the implementation of these programs or changes.
Organizations should understand why employees join, why they stay and why they leave an organization. This join, stay, leave model is akin to a three-legged stool, meaning that without data on all three, organizations will be unsuccessful in implementing a proper retention strategy.
Why employees join — The attractiveness of the position is usually what entices employees to join an organization. However, recruiting candidates is only half the problem while retaining employees is another. Understanding what your employees are looking for in the job while simultaneously making sure your expectations are correct are both important factors to address in the hiring process.
Organizations that attempt to oversell the position or company are only contributing to their own detriment when employees experience a discord between the position and what they were initially told. To assess and maintain retention, employers should mitigate any immediate conflicts of misunderstanding in order to prolong the employee's longevity with the organization.
New-hire surveys can help to identify the breakdowns in trust that occur early on when employees decide that the job was not necessarily what they envisioned. Recent studies have suggested that as employees participate in their professional and community life, they develop a web of connections and relationships.
These relationships prompt employees to become more embedded in their jobs and by leaving a job; this would sever or rearrange these social networks. The more embedded employees are in an organization, the more they are likely to stay. Organizations can ascertain why employees stay by conducting stay interviews with top performers.
A stay survey can help to take the pulse of an organization's current work environment and its impact on their high performing employees. Employers that are concerned with over-using stay interviews can achieve the same result by favoring an ongoing dialogue with employees and asking them critical questions pertaining to why they stay and what their goals are.
Oftentimes, it is low satisfaction and commitment that initiates the withdrawal process, which includes thoughts of quitting in search of more attractive alternatives.Employee retention rate is a statistic used by organizations to measure the effectiveness of how well they retain their employees.
Employee retention rate is calculated by dividing the number of employees who left during a period by the total number of employees at the end of a period. This policy has helped with employee retention, particularly by making it easier for female employees starting families to take time off and ultimately return to work.
Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period).
Staff Recruitment and Retention Intervention Strategies Directions: This worksheet will help you define your workforce challenge and help you select an intervention strategy that best matches your needs.
Employee Retention – How to Retain Employees. How-To; NEXT IN Hiring and Managing Employees Tips. Offer a competitive benefits package, including health and life insurance and a retirement plan.
Provide employees financial incentives such as raises, bonuses and stock options. If an employer (''Employer'') wants an employee (''Employee'') to remain at their organization and not leave during a corporate transition or merger, they can have the employee sign an employee retention agreement.