Employee turnover is one of the hottest topics in US boardrooms. After asking employees to do more with less over the past few years, organizations are now experiencing the backlash: workers leaving for other opportunities. A recent Yahoo! survey shows that nearly one-half of US employees "already are or plan to look for a new job in the next 12 months."
The C-level suite is beginning to understand the direct impact on profitability, and often they are turning to Human Resources for guidance. Understanding employee retention best practices can help HR take control of the situation and position themselves as Human Asset Comptrollers.
Measurement is the key to understanding your challenges. All too often companies apply reactionary band-aids to their retention issues. This action is typically the result of loosely developed assumptions and water cooler conversations indicating the perceived problem. While these efforts may initially quell the issue at hand, this approach does not resolve the true challenge — that employees are seeking employment with other companies. Data collected through effectively surveying the employee population will help organizations to build a targeted long-term strategy for greater retention, improved productivity and a healthier bottom line.
The integrity of collected data is questionable when audits are performed in-house. Just as outside accounting firms are used to measure financial health, an experienced human capital organization should be used to collect and analyze information. Knowing the survey is anonymous and collected by a third party will invite an employee to offer an honest opinion without fear of retribution. Stronger data lead to a better plan for improvement.
Quantifying employee attitudes is vital. It is here that we establish benchmarks and trends using a numeric 1 to 5 scale. National organizations use the same scale to aggregate the data and develop national averages. It is important that companies understand where they rank in order to identify where action is needed. While quantitative data is used to understand "How many?" or "How much?", qualitative data is necessary to understand "Why?". Using categorical replies and open ended, non-linear questions is critical to helping companies understand the specific reasons driving the behavior.
Once benchmarks are set, ongoing measurement is important to understand attitude trends and where to concentrate actions. Reports in a consistent format which are simple to interpret and highlight the prominent trends help provide more actionable data. Ultimately, this leads to a more effective plan for retention.
People drive company success, and HR is now a responsible stakeholder in the financial health of the company. Implementing a strategy that embraces best practices for employee retention sets the foundation for reduced turnover, a stable, more productive workforce and greater profitability for the organization as a whole.
Questions? Comments? Please feel free to email scott.saunders@tmp.com.