Interest in Staff Retention Depending on tightness or looseness of labour markets In recent years topic has moved up the HRM agenda

Perspectives on Staff Retention Tracking turnover rates over organisational policy aimed at improving retention as a whole Retaining high performing, key players – use of more sophisticated retention practices

Turnover Rates & Trends Mismatch between rhetoric and job tenure and reality Are there jobs for life? Turnover rises when economy is strong and jobs plentiful, during recessions turnover falls

Job Tenure in UK Since 1975 Table 8.1 Job tenure in the UK since 1975 Source: Table compiled from data in P. Gregg and J. Wadsworth (1999) ‘Job tenure, 1975–98’, in P. Gregg and J. Wadsworth (eds) The State of Working Britain. Manchester: Manchester University Press, p. 115.

Job tenure in the UK Table 8.2 Job tenure in the UK Source: Labour Market Trends (2001), ‘Length of time continuously employed by occupation and industry’, Labour Market Trends, February.

In Favour of Staff Turnover Rejuvenation of organisation with fresh blood New ideas and experiences brought into the organisation Helps managers keep control over labour costs Redundancy bills are lower Functional rather than dysfunctional

Against Staff Turnover Expensive to replace staff Lost resource Symptomatic of poor management

Turnover Analysis & Costing Techniques Exit interviews – but will those leaving give the real reasons for leaving? Analysis of turnover rates between different departments and different job groups Attitude surveys

Reasons For Staff Turnover Outside factors Functional turnover Push Factors Pull Factors

Push & Pull Factors Push – dissatisfaction with work or the organisation leading to unwanted turnover Pull – attraction of rival employers, e.g. better salary

Common Reasons Research by Taylor 2002 found a mix of factors Push factors more prevalent than pull factors Alternative employment sought when employees no longer enjoy working for current employer Few people leave for financial reasons

Staff Retention Strategies Pay Managing expectations Induction Family friendly HR practices Training and development Improving quality of line management

Pay (1 of 2) Debate over extent to which raising pay levels reduces staff turnover Some evidence to show that employers who offer the most attractive reward packages have lower attrition rates Also evidence that pay plays a satisfier role, but does not usually have an effect when other factors are pushing someone to quit

Pay (2 of 2) Pay is a hygiene factor rather than a motivator An approach that can be matched by competitors Provided pay levels are not significantly lower than competitors other factors will usually impact more

Enhanced Benefits Packages Enhanced benefits if appreciated by staff are more likely to have a positive effect on staff retention Staff discounts Holiday entitlements Private healthcare

Managing Expectations Benefit of employees gaining a realistic job preview before starting their job Job dissatisfaction is having one’s high hopes of new employment dashed by unmet expectations Work experience before starting work can help establish realistic expectations of work

Induction Effective and timely Helps starters to adjust emotionally to new role Understand where things are, and who people are Provides a forum for information giving Suitable occasion to discuss health and safety regs, organisational policies etc.

Minimum Rights (1 of 2) 26 weeks maternity leave for all employees with more than 6 months service An additional 26 weeks unpaid maternity leave for employees with over 12 months service Reasonable time off for pregnant employees to attend ante natal classes Specific health and safety measures for pregnant workers or those who have recently given birth

Minimum Rights (2 of 2) 4 week’s paid holiday each year A total of 3 months unpaid parental leave for parents on the birth or adoption of a child Reasonable unpaid time off for employees to deal with family emergencies Consideration of reasonable requests by parents of young children to work flexibly 2 weeks paid parental leave for new fathers

Training & Development Training opportunities enhance commitment to an employer making them less likely to leave Training makes people more employable and will leave to develop careers

Improving Effectiveness of Supervisors Select people for roles following an assessment of their supervisory capabilities Provide training in effective supervision Appraise line managers and their skills

Summary (1 of 2) Staff turnover tends to decrease in recession and increase in economic booms Job tenure has not reduced substantially over the last 30 years Retention rates vary considerably between industries and regions

Summary (2 of 2) Too great a rate of staff turnover is damaging Necessary to analyse the cause of turnover and calculate costs Flexible benefits, better induction, etc can improve retention