1. Employee Retention 1

2. Managing Retention Cost of turnover and replacement Types of Turnover
Involuntary turnover
Voluntary turnover out of company control
Voluntary turnover that company can control
Turnover and performance
Increases costs
Decreases productivity
Functional vs. Dysfunctional Turnover

3. Employee Separation Reasons for employee separations:
Pressures on firms to remain competitive and efficient
Decline in employee commitment to individual employers
The importance of managing separations:
Transitions of employees out of the firm go smoothly.
Continuing operations of the firm are not disrupted.
Important professional relationships are not damaged.
Types of separations
Reductions-in-force, turnover, and retirements

4. Strategies for Avoiding Layoffs
Long-term
Hiring freeze
Attrition
Early retirement incentives
Cross training
Short-term
Sub-contracting labor
Voluntary leaves
Across-the-board salary reductions
Redeploying employees

5. Why Do People Leave?

6. Why Do People Leave? Desirability of Leaving Ease of Leaving
Job satisfaction
“Shocks”
Career progression
Ease of Leaving
Labor market conditions
Human capital (education and training)
Switching costs

7. Strategies for Improving Retention
Compensation matters
Base salary and benefits for membership
Incentives for motivation
Keep costs competitive
Remove toxic manager and employees
Cultivate trust and respect
Customize the employment relationship
Job design and employee development

8. Analyzing Turnover Diagnosing retention problems
Active: Employee surveys
Active: Exit interviews
Passive: Research and HRIS data mining
How much is too much turnover?
Depends on the organization
Depends on the position

9. How to Retain High Performers?