Reducing Turnover and Increasing Retention Tips and Tactics for Supervisors

© Business & Legal Reports, Inc Session Objectives You will be able to: Identify the costs of excessive turnover Calculate and analyze your department’s turnover rate Determine causes of turnover among your employees Understand what your employees want from their jobs Develop an effective turnover reduction strategy

© Business & Legal Reports, Inc Session Outline Direct and indirect costs of turnover Voluntary vs. involuntary turnover Determining causes of turnover What employees really want Tactics for retaining employees

© Business & Legal Reports, Inc Employee (Dis)Satisfaction Large percentage of American workers dissatisfied with jobs Many plan to move on within a few years National voluntary turnover rate is around 20% a year Monthly turnover rate is over 3%

© Business & Legal Reports, Inc The High Cost of Turnover Direct costs Indirect costs Total costs

© Business & Legal Reports, Inc Voluntary Versus Involuntary Turnover Involuntary turnover Voluntary turnover

© Business & Legal Reports, Inc Calculating and Analyzing Your Turnover Rate Company turnover rate Department turnover rate Comparing turnover rates

© Business & Legal Reports, Inc Calculating and Analyzing Your Turnover Rate (cont.) Variation in rates You have a problem if: Annual voluntary turnover higher than 20% Department has higher turnover rate than company

© Business & Legal Reports, Inc Determining the Causes of Turnover Exit interviews Conversations with employees

© Business & Legal Reports, Inc Determining the Causes of Turnover (cont.) Questionnaires Surveys

© Business & Legal Reports, Inc Facts About Turnover Questions?

© Business & Legal Reports, Inc What Employees Really Want Good, safe work environment Good boss and co-workers Opportunities for growth and development Meaningful, challenging work Having enough time to do quality work Recognition

© Business & Legal Reports, Inc What Employees Really Want (cont.) Freedom to use judgment and initiative Being part of a team Fairness and consistency Clear goals and well-defined tasks Deciding how to perform tasks Influence and decision-making opportunities

© Business & Legal Reports, Inc What Employees Really Want (cont.) Adequate resources Being able to take pride in their work and the organization Sharing ideas and solving problems with co- workers Being consulted when affected by decisions

© Business & Legal Reports, Inc Hire the Right People Explain the job Define your expectations Look for a good fit

© Business & Legal Reports, Inc Get Off to a Good Start Orientation Training Coaching Teamwork

© Business & Legal Reports, Inc Provide a Healthy, Safe, And Secure Environment Health Safety Security

© Business & Legal Reports, Inc Provide Leadership and Direction Set clear goals Define responsibilities and set limits Explain policies Be fair and consistent Deal with all complaints promptly

© Business & Legal Reports, Inc Challenge Employees Assign meaningful work Encourage initiative Delegate decision-making responsibility

© Business & Legal Reports, Inc Challenge Employees (cont.) Cross-train Build self-confidence Remove barriers to performance

© Business & Legal Reports, Inc Provide Opportunities Training and coaching Promotions More responsibility Special assignments

© Business & Legal Reports, Inc Offer Constructive Feedback Reinforce positive behavior Correct inadequate performance Make good use of performance reviews Set a good example

© Business & Legal Reports, Inc Promote Open Communication Share information Listen to employees’ concerns Welcome ideas and suggestions Encourage interaction among employees Manage conflict

© Business & Legal Reports, Inc Recognize Achievement Reward exceptional performance and outstanding achievement Don’t forget to recognize regular work, too Provide incentives Celebrate group success

© Business & Legal Reports, Inc Offer Adequate Support and Supervision Be accessible Show employees that you value them Provide guidance and instructions Help people learn from their mistakes Stick up for your people

© Business & Legal Reports, Inc Provide Sufficient Resources Tools and equipment Supplies and materials Training Time

© Business & Legal Reports, Inc Remain Flexible Help employees balance their work and personal lives Capitalize on diversity Accept change

© Business & Legal Reports, Inc Retention Strategies Questions?

© Business & Legal Reports, Inc Key Points to Remember Employee turnover is a costly problem A voluntary annual turnover rate in excess of 20% or above the company average may indicate a problem You need to identify causes of turnover and develop strategies to retain employees