Author, Rethinking Retention in Good Times and Bad, excerpted by BusinessWeek; fresh thinking for solving the turnover problem in any economy

Transcription

1 Dick Finnegan

2 Finnegan Bio Recovering HR director solved turnover for Siberian banks, African gold mines, Chinese multi-national corporations and the CIA Author, Rethinking Retention in Good Times and Bad, excerpted by BusinessWeek; fresh thinking for solving the turnover problem in any economy Author, The Power of Stay Interviews for Engagement & Retention, top-selling SHRM-published book in history Author, The Stay Interview, published in 20 languages audio book Author, HR s Greatest Challenge, distributed free to top global executives HR 2

3 Agenda 5 Steps to Cut Employee Turnover and Get Workers to Work Their Best 3

4 Good News: Engagement & Retention Drive Everything! 4

5 U.S. Voluntary Quit Percentages, Post-Recession U.S. Bureau of Labor Statistics Young U.S. workers will hold jobs by age

6 Engagement Stuck per Gallup/Deloitte 6

7 Bad News: We Dunno How! C-Suite Executives: What is most likely to harm your organization financially over the next 12 months? 53% say insufficient talent HR survey: Which top priority do you solve least effectively? Engagement & Retention 7

8 Are Your Engagement/Retention Activities Driven By Accountabilities or Programs? Accountabilities Business Accountabilities are driven by executives from the top like sales, service, quality, & safety Programs Retention Programs are driven from the side like town hall meetings, employee appreciation week, newsletters 86% of the time 8

9 Problem is Clear Exit Surveys Data Yes Employee Surveys Engagement Surveys Solutions No! They don t generally get involved in the actions taken by an organization in response to the engagement results really just delivery of the survey and then reporting. Top Employee Survey Company Executive 9

10 Supervisor s Impact on Engagement & Retention If you have a turnover problem, look first to your managers Gallup Employees stay for managers first and co-workers second salary.com Employees levels of engagement higher when their supervisors had higher levels of engagement DDI When employees stay, it is because of their immediate managers National Education Association Employees who stay primarily for their supervisors stay longer, perform better, and are more satisfied with their pay TalentKeepers 10

11 The Real Power of Supervision Kenexa interviewed 1,000 recently-quit employees and asked about pay, benefits, development, advancement and relationships with supervisors and found supervisor relationships influenced all other opinions, concluding Offering a higher salary or developmental/advancement opportunity may not be enough to retain employees 11

12 Engagement Stuck per Gallup/Deloitte 12

13 Managers Drive Engagement! 13

14 Reduce Cost of Turnover Improve Employee Engagement Improve Revenue & Profitability 14

15 Benchmarks Build False Hope Benchmark means standard, average, mediocre so which statement drives more action? CEO, our turnover is 19% and the benchmark is 20% OR CEO, our turnover is 19% and it s costing us $7.9 MM each year 15

16 How much does losing one fabrication worker cost? Direct Hiring Costs $1,885 Ramp-Up Including Yield Loss 6,000 5 Open Days Lost Productivity.. 2,000 Total $9,885 Courtesy of Washington Beef with input from Sonja Totland, Jesse Castaneda, & Wes Squire 16

17 How Much More Do Engaged Employees Produce? Gallup: 22% more profitability/lower turnover (TO)/higher earnings per share (EPS) GPTW Institute: 20% more productivity/lower TO/higher EPS Hewitt: % engaged correlates with higher shareholder returns (S/H) Kenexa: double S/H returns WorkUSA/Watson Wyatt: 26% more revenue per employee 17

18 Introducing The One & Only Engagement Calculator The C-Suite Analytics Engagement Calculator is a welcomed, one-of-a-kind tool. Perhaps its greatest value is that it distinguishes managers who influence engagement from those who do not, in specific dollar values. Dr. Gary Borich, Ph.D Endowed Fellow, Quantitative Methods The University of Texas as Austin 18

19 Reduce Cost of Turnover Improve Employee Engagement Improve Revenue & Profitability 19

20 Do You Establish Engagement & Retention Goals? Engagement? Turnover? First-Year Turnover? Hi Performer/ Hi Potential Turnover? 20

21 Who Is Accountable For These Goals? Engagement HR? Top Management? Managers? No one? Retention HR? Top Management? Managers? No one? 21

22 Managers Drive Engagement! 22

23 Reduce Cost of Turnover Improve Employee Engagement Improve Revenue & Profitability 23

24 Train Managers to Conduct Stay Interviews A Stay Interview is a structured discussion a leader conducts with each individual employee to learn the specific actions she must take to strengthen that employee s engagement and retention with the organization Stay Interviews Bring information that can be used today Focus on individual employees including top performers Put managers in the solution seat 24

25 Stay Interview Process Key Ingredients Conducted by supervisors vs. HR Separate from Performance Review Repeat at least 1X/yr for all existing employees / 2 times a year for new hires Train leaders to probe deeply to solve completely with individual Stay Action Plans Top-Selling SHRM-Published Book in History Managers Forecast Retention 25

26 Stay Interview 5 Questions What do you look forward to each day when you commute to work? 2. What are you learning here? Want to learn? 3. Why do you stay here? 4. When is the last time you thought about leaving us? What prompted it? 5. What can I do to make your job better for you?

27 Stay Interviews (1) Build Trust & (2) Gather Information 27

28 The Fortune Top 100 # Baby bonding bucks, 12 weeks paid parental leave, horseshoe pits, Africa volunteering, subsidized massages, 3 wellness centers, bike repair shop, 3 organic meals per day, artisan tea & coffee, 25 free cafeterias and free eyebrow shaping 28

29 What determines the best companies? Two-thirds of a company s score is based on the results of the Great Place To Work s Trust Index Survey Any company can be a great place to work. Our approach is based on the major findings of 20 years of research that trust between managers and employees is the primary defining characteristic of the very best workplaces. The Great Place to Work Institute 29

30 Building Trust 1-1 Builds Profits 30

31 Reduce Cost of Turnover Improve Employee Engagement Improve Revenue & Profitability 31

32 Forecasting After each Stay Interview & can be updated anytime Likely to leave in a 6 months or less May leave in 6 12 months Likely to stay greater than a 1 year 32

33 Retention Forecast HeatMap Leader: Rodriguez Perf Rating/ 5 Hi, 1 Lo Green 1+ yrs Yellow 6-12 Months Red 0-6 Months Retention Plan Kim Johnson 4 Provide mentor for Burt Brown 5 Develop skills for possible promotion to Cindy Stone 3 Pleased with current role & circumstance Ralph Jimenez 2 Coaching for performance 33

34 Reduce Cost of Turnover Improve Employee Engagement Improve Revenue & Profitability 34

35 The Incredible Power of Accountability & First-Line Retention Goals Strategy A Group of hospitals solved nurse turnover with onsite child care & flexible scheduling Strategy B Outlier hospital assigned retention goals to managers and reported progress monthly One Year Later: A turnover % identical, B down 41%, saved millions of $s

36 Reduce Cost of Turnover Improve Employee Engagement Improve Revenue & Profitability 36

37 Gallup s 100 Year Commitment Surveying citizens of the world to learn what brings most happiness over 100 years. So far the answer is which a. Good health? b. A good job? c. Love and respect from others? d. Money for needs and more? e. Better life for your children? 37

38 Gallup s 100 Year Commitment a. Good health b. A good job c. Love and respect from others d. Money for needs and more e. Better life for your children 38

39 To Obtain Free Online Stay Interview Training Module How to Cost Turnover & Engagement Engagement Correlations to Productivity The Stay Interview Manager Training Game Please Me Include # of Employees