Moderator – Robert Levin, Publisher & Editor-in-chief, The New York Enterprise Report
Speaker– Chason Hecht, President, Retensa.
Chason and Retensa is introduced as the expert on the social and economic impact of employee turnover by their specialization. They combine social science and web-based knowledge for retention and creation of a high-performance workforce.
Def: Employee Retention: Retaining individuals who you want to work in your organzation, to be loyal and motivated to work in your organization. The Goal is for employees to stay because of the value they receive, and you value their contribution.
Why is reataining High Performers still a challenge? Both you and employees have ROI. If both sides have ROI, then retention happens. If there is a mismatch, then it doesn’t.
Stats: 79% of organizations report difficulty finding qualified employees
17% of COO’s said they are well position to attract and retain
49% of employees are set to change
Understand and establish real-woirld emplyee retntion strategies at your organization.
Challenges: The U.S. population is not changing. The Skills Gap is significant in the U.S., particularly technical and people skills. Education Requirements are not met by educational attainment. There is a gap between education and skills needed. Internal Efficiency: Cannot afford to lose people. Global Demand: Pulls people out of U.S. Transparency: Companies cannot hide what your company is like. This will continue to develop and reduce application to your enterprise.
Measure the impact of empolyee turnover on your organizations bottom one.
Presentation: Typical Retention tools don’t work because they don’t follow the 7 Steps to Retain Great Employees
Focus exercise throughout the seminar: Write: What/Who/Why/When/How on paper and apply to the following 7 Steps
Identify the Root Causes: This is the WHAT on your sheet. You do need to calculate the baseline: Know what is important to Executives, line managers, what you already measure, what execs want to improve/increase or reduce/decrease, and How are managers’ successes measured? Employee Turnover can be a misleading metric. You need to know WHO is leaving more than the NUMBER leaving. ‘find a specific title, generation, location. Regretable (Unwanted) Turnovers differ from Wanted Turnover (that was a hiring problem). Productivity is a good measure BUT you need to know:
WHO do you want to retain?: 151 variables impact the Cost of Turnover (CoT). The Cost of Turnover ranges from 20% to 200% of annual salary. The most conservative Cost is about $10,000/lost employee. The 3 factors that drive CoT are outside experience, level of customer involvement, internal experience.
Identify and listen for the 6 Commitment Indicators every time people talk about working at your organization. The Indicators are: Dedication, Performance, Appreciation, Trust, Connectedness, and Engagement to the organzation. No organization has a turnover problem, they have a problem in these 6 areas and the result is turnover.
ASK: Why employees stay, WHY employees join, WHY employees leave. Build feedback systems into your organization to directly capture this feedback.
DEVELOP: Recruitment Strategy, Motivation Strategy, Attraction Strategy.
Map the Employee Life-Cycle: Why do people come to your organization? This is critical to know because if they don’t get what they came for they will leave. Ask yourself why you joined your organization.
The Framework for Talent Management: This is a great chronology graph that maps out initial Attraction, Hiring, Formative First 2 Weeks, Development, Growth Enablement (24 months), Worklife Actionization, and Separation. This tool identifies when people leave your organization. You need to know the difference betweent those that left at 3-4 weeks vs. those that left after 3-4 years. The times of leaving indicate different problems that need different solutions.
Demotivating Factors: These factors make people disengage: Unclear rules of the game, Lack of priorities, goals or direction, Lack of success, Lack of acknowlegdemtn, No challenge in the work, Breadowon of manager-employee relationship, Problems with physical or emotional health, False perceptions (others salary, career opportunity, future), Poor work environment, Insufficent training and develpment, Poor interpersonal relationships, and Belief that they do not make a difference. You must acknowlegde your part in creating these systemic issues.
Pritiotize Soloutions: There are over 60 programs with dozens of variations and thousands of options that you can apply to your workplace. Before you choose an intervention, you need to know what problems you need to solve. Establish Cost/Benefit Analysis for each Action Plan: Identify all possible soutions: Know what each solution costs ;What each solution generates (Trust? Dedication?); and How long does each solution take to produce results?
Feedback: Focus on Freqeunt Accurate Specific Timely (FAST). Also, know your employees (ie Are they GenY? Millenials?) Your feedback should be accurate, specific, well researched, and you must develop concrete goals and deadlines. Determine which of the 7 indicators of commitment you are trying to effect.
Rewards and Recognition: Monetary has a short 3 week shelf life; Non-monetary can last for months to years; and the ROI of Recognition (the most beneficial, longest lasting, and has NO cost).
Present Solutions: Present your solutions to managers AND the workforce (transparency), Deliver the (whole) truth, Present the outcomes that solutions deliver, and what are the solution options.
Integrate Solutions into Business: Automate your retention goals: Managers must be involved and accountable. People don’t do what counts, they do what you count.
Review your metrics: You have to motivate your managers so they are committed to the changes.
Overall: The responsibility for retention is on your shoulders as an enterprise. Whether someone left due to poor hiring or poor management can be determined by the How/What/Who/What/When of separation. The truth is that employee retention occurs when talent is engaged, challenged, focused and productive. You need to create that environment so that the people that you want to be there also want to be there.
Resources: Check out NYR Video and Events page for lots of up-to-date resources for small businesses.
The Retensa site has some important clues to hiring and keeping employees to help your small business grow and keep growing(http://www.retensa.com/clients/small-business-turnover.php).
Empire BC/BS is sponsoring a fee-based webinar event next week: Beyond Motivation: Ignite Your Employees & Watch Profits Grow; June 22, 8-10;30a EST, $20, Register at: www.nyreport.com/motivate