Resource and Talent Planning (5RTP) Cohort: Waterloo Tutor: Michelle Maunder

Learning Outcome 5 LO5: Understand how to maximise employee retention 5.1 Explain the costs associated with dysfunctional employee turnover and ways of calculating them 5.2 Examine why people choose to leave or remain employed by organisations 5.3Assess the strengths and weaknesses of different approaches to the retention of talent

Turnover Reasons for leaving 1.Pay processes 2.Line manager behaviours 3.Lack of development 4.Lack of job opportunities 5.Lack of autonomy Reducing turnover 1.Realistic job preview 2.Job rotation 3.Involvement/engagement 4.Developing brand 5.Restrictive covenants Measuring turnover % age of employees %age of new starters % of employees after a certain period of service Analysing Turnover Level 1 – general turnover rate Level 2 – turnover categorised with benchmarks and actions Level 3 – analysis of avoidable/ unavoidable turnover. Continuous dialogue Reasons for leaving 1.??? Reducing turnover 1.???? Measuring turnover ??? Analysing Turnover ???

Costs Direct 1.Redundancy pay 2.Advertising vacancy 3.Temporary work 4.Overtime 5.Selection/induction expenses Lost opportunities 1.Lost business 2.Productivity – cover 3.Loss of knowledge/skills 4.Customer relationships 5.Investment in employee Direct 1.??? Lost opportunities 1.??? Admin costs 1.Payroll 2.Pension transfers 3.Exit interviews 4.Admin for R&S 5.Start up costs (In) Efficiency related costs 1.Prior to termination 2.Temporary cover 3.New starters 4.Impact on colleagues 5.Sharing of expertise Admin costs 1.???? (In) Efficiency related costs 1.???

Costs - TASK Direct 1.Redundancy pay 2.Advertising vacancy 3.Temporary work 4.Overtime 5.Selection/induction expenses Lost opportunities 1.Lost business 2.Productivity – cover 3.Loss of knowledge/skills 4.Customer relationships 5.Investment in employee Admin costs 1.Payroll 2.Pension transfers 3.Exit interviews 4.Admin for R&S 5.Start up costs (In) Efficiency related costs 1.Prior to termination 2.Temporary cover 3.New starters 4.Impact on colleagues 5.Sharing of expertise

Evaluation Human Capital Quantitative Data 1.Number of leavers within a 12 month period 2.??? 3.??? 4.??? 5.??? Ratios 1.Numbers of leavers as a percentage of workers 2.??? 3.??? 4.??? 5.???

Measuring Turnover Organisations may track their ‘crude’ or ‘overall’ turnover rates on a month by month or year by year basis, expressed as a percentage of employees overall. The formula is simply: Total number of leavers over period x 100 Average total number employed over period A stability index indicates the retention rate of experienced employees. Like turnover rates, this can be used across an organisation as a whole or for a particular part of it. The usual calculation for the stability index is: Number of staff with service of one year or more x 100 Total number of staff in post one year ago

Evaluation – Diagnostic Tools Exit interviews 1.Determines opinions 2.Highlights issues 3.Subjective? 4.Timing is vital 5.Follow up Surveys 1.Opinions 2.Quantitative 3.If anonymous – more reliable? 4.Subjective 5.Timeliness Last job move surveys 1.More objective 2.Able to benchmark 3.Adopt good practice 4.Maintain competitiveness Former employees views 1.More informative? 2.More objective? 3.Maintain contact 4.Enhance network 5.Enhance intention to make improvements Exit Interviews 1.??? Surveys 1.???? Last job move surveys 1.??? Former employees views 1.???

Last job move surveys 1.??? Evaluation – Diagnostic Tools Surveys 1.???? Former employees views 1.??? Exit interviews 1.Determines opinions 2.Highlights issues 3.Subjective? 4.Timing is vital 5.Follow up Last job move surveys 1.??? Surveys 1.Opinions 2.Quantitative 3.If anonymous – more reliable? 4.Subjective 5.Timeliness Former employees views 1.More informative? 2.More objective? 3.Maintain contact 4.Enhance network 5.Enhance intention to make improvements Last job move surveys 1.More objective 2.Able to benchmark 3.Adopt good practice 4.Maintain competitiveness

Retaining Talent Improved induction process Improve line managers' people management skills Increased learning and development (L&D) opportunities Improved employee involvement Improved pay/benefits Coaching/mentoring/buddy systems Improved work–life balance practices Created clearer career paths Redesigning jobs to make them more satisfying

Issues in Retaining Talent Poor relationship with the manager Poor induction processes Lack of development opportunities The job advertised was not as expected Poor pay/reward packages Lack of opportunity for flexible working Poor working relationship with the team Lack of quality leadership Lack of involvement in decision making Lack of role autonomy

Push/Pull Factors Pull Factors - attraction of alternative employment Push Factors - problems with existing employer Unavoidable Turnover - Outside the control of the organisation – e.g. retirement, ill-health Involuntary Turnover - Initiated by the organisation – e.g. redundancies, end of fixed term

CIPD HR Professional Map Click here for the Maphere What key professional areas and behaviours relate to this unit?

Conclusions ???