Employee Retention
Local and national surveys confirm that employee retention is a major concern for corporate executives. The OI Partners’ 2004 survey showed retention ranked second among the top ten concerns of Human Resource Executives. They have reason to be concerned; 50% of middle managers in large corporations report a "moderate" to "high" chance they’ll change companies within 3 years. Here’s some other interesting statistics from another survey:
- The group of 25-44 year olds beginning to populate the leadership pools will decline 6% by 2010, and the talent shortage will persist for at least through 2020
- Individuals’ development and financial expectations from work are higher, and switching jobs is easier than ever before
- Only 3% of executives strongly agree that their company develops senior managers effectively
- Only 16% strongly agree that their company even knows who are the high "A" and low performers Only 3% strongly agree that their company removes low performers in a timely manner and few have an aggressive plan for their "A" &/or key performers The demands of the capital markets, new technologies, and dramatic changes in industry structures are making better leadership talent essential for companies’ success 99% of top executives said and only 20% said they have enough talent to pursue most of their business opportunities
The bottom line, companies can’t afford NOT to have a great retention strategy. So, where do you begin?
An effective retention strategy begins with:
- Knowing Your Turnover Costs
- Recognizing Reasons Why People Leave
Determining the real reason why employee turnover rates are higher than desired often requires a thorough review by an objective third party. E. K. Ward & Associates performs audits of relevant corporate policies, practices, and recruitment & retention strategies and compares them to best practices and competitor data. Audits usually involve conducting on-site visits, surveys, interviews with key stakeholders, and analysis of performance measures. We identify primary areas for improvement and recommend practices and tools that can best help your organization. We can also help you to develop a formal "Employee Retention Plan".
Plan elements can include such steps as:
- Develop A Great, "Impact-ful" Orientation Program
- Provide Assimilation Coaching
- Make Improvements To Employee Compensation & Benefits
- Invest In Employees Through Training & Development
- Provide Diversity Training & Undertake A Meaningful Diversity Initiative
And usually # 1 on the list…
- Develop Supervisory And Management Skills (including learning the importance of and the ways to recognize & reward employees!)
Although it may appear paradoxical, another step that has more recently been recognized as adding value to a company’s retention strategy, is empowering employees to manage their own careers. Some of the leading companies are providing employees with tools to help manage their own careers, such as iCareerManager™. Deloitte credits it with saving it’s firm millions by reducing turnover costs.
Learn how E. K. Ward & Associates may be able to help you retain the employees who are key to your corporate success. We can also schedule a free demonstration of iCareerManager™. Contact us at email@ekward.com.
