Rethinking Retention: Fresh Thinking for Retaining Your Top Performers
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1 Rethinking Retention: Fresh Thinking for Retaining Your Top Performers Dick Finnegan March 11 th, 2014
2 Finnegan Background Recovering HR director who has solved disengagement & turnover across 6 continents including Siberian banks, African gold mines, and the CIA Author of Rethinking Retention in Good Times and Bad, endorsed by BusinessWeek as offers fresh thinking for solving the turnover problem in any economy Author of The Power of Stay Interviews for Engagement & Retention, HR s top-selling book globally in 2012 & 2013 Noted as employee retention expert by BusinessWeek, Chief Executive Magazine, & Consulting Magazine Partners with HR Excellence Center of China to conduct employee retention programs for Microsoft, Coca Cola, and other companies across China Presented by Avant Resources 2
3 Today s Agenda Scary Data The Rethinking Retention Model Which Solution Helps You Most? Extra: What Makes Us Happy Free Stuff 3
4 Grabbing Statistics 3.3% unemployment rate for college grads versus 9.9% for HS dropouts; lowest unemployment of 29 occupational groups is Healthcare practitioner and technical occupations at 3.0% Nursing is #1 Most recessionproof job, least satisfying healthcare job, and has highest projected shortage of workers 27% of fresh-out nurses turn over in first year 4 4
5 Grabbing Statistics Conclusions 1. Healthcare employees are and will be in incredible demand for our lifetimes 2. Nurses are most endangered healthcare workers of all 3. Healthcare workers can ALWAYS leave for other jobs 5 5
6 Gallup U.S. Companies on Track to Spend $1 Billion Each Year to Improve Engagement on Surveys & Programs 6
7 The Rethinking Retention Model Process or Program-Driven? Retention Programs driven from the side like surveys, employee appreciation week, newsletters Retention Processes driven by executives from the top like sales, service, quality, and safety 7
8 The Rethinking Retention Model Process or Program-Driven? Retention Programs driven from the side like surveys, employee appreciation week, newsletters 86% Of The Time Retention Processes driven by executives from the top like sales, service, quality, and safety 8
9 Supervisors Impact on Retention If you have a turnover problem, look first to your managers Gallup Primary reason for seeking a new job is disliking boss s performance Yahoo Employees stay for managers first and co-workers second salary.com Poor leadership causes over 60% of all employee turnover Saratoga Institute 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 9
10 The Real Power of Supervision Kenexa interviewed 1,000 recentlyquit 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 10
11 Do Clinical Directors Really Drive Retention? Compared one hospital that held nurse managers accountable for retention versus others that implemented various programs & found Accountable hospital nurse turnover down 41% vs others stayed the same. Recommendation: Hold clinical directors accountable for achieving retention goals - Hardwiring Right Retention, the Advisory Board Company s Health Care Advisory Board 11
12 The Rethinking Retention Model Research-Driven, Process-Based 12
13 The Rethinking Retention Model 3 Principles Point #1. Employees quit jobs because they can Point #2. Employees stay for things they get uniquely from you Point #3. Supervisors build unique relationships that drive retention or turnover 13
14 The Rethinking Retention Model For Supervisors Point #4. Hold supervisors accountable for achieving retention goals Point #5. Develop supervisors to build trust with their teams For People Management Processes Point #6. Narrow the front door to close the back door Point #7. Script employees first 90 days Point #8. Challenge policies to ensure they drive retention For Top Management Point #9. Calculate turnover s cost to galvanize retention as a business issue Point # 10. Drive retention from the top, as executives have the greatest impact on achieving retention goals 14
15 Exercise: The Rethinking Retention Model TM 15
16 The Fortune Top 100, 2014 #1: Google donates $50 for every five hours an employee volunteers. Last year a new program sent employees to Ghana and India to work on community projects. 16
17 The Fortune Top 100, 2013 #1: The Internet juggernaut takes the Best Companies crown for the fourth time, and not just for the 100,000 hours of subsidized massages it doled out in New this year are three wellness centers and a seven-acre sports complex, which includes a roller hockey rink; courts for basketball, bocce, and shuffle ball; and horseshoe pits 17
18 The Fortune Top 100, 2012 #1: Employees rave about their mission, the culture, and the famous perks of the Plex: bocce courts, a bowling alley, eyebrow shaping 25 cafes, all gratis 18
19 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. 19 The Great Place to Work Institute
20 Google s Quest To Build A Better Boss What Makes A Great Boss At? As published in The New York Times, March 12 th,
21 Google s Quest to Build A Better Boss Technical expertise the ability, say, to write computer code in your sleep ranked dead last among Google s big eight. What employees valued most were even-keeled bosses who made time for one-on-one meetings, who helped people puzzle through problems by asking questions, not dictating answers, and who took an interest in employees lives and careers. 21
22 Google s Quest to Build A Better Boss What employees valued most were Even-keeled bosses who made time for one-onone meetings Who helped people puzzle through problems by asking questions, not dictating answers And who took an interest in employees lives and careers. 22
23 Which Side Matters More? Pay, benefits, bonuses, Employee appreciation week, Employee of the month, Brown bag lunches, Leaderboard winners, career Ladders, employee surveys, Exit surveys, onboarding, Training monitoring sessions, Team meetings, all-hands Meetings and almost everything else 23
24 Which Side Matters More? Pay, benefits, bonuses, Employee appreciation week, Employee of the month, Brown bag lunches, Leaderboard winners, career Ladders, employee surveys, Exit surveys, onboarding, Training monitoring sessions, Team meetings, all-hands Meetings and almost everything else Employees trust their direct supervisors on all levels throughout your organization 24
25 One Big Lesson Learned It s not what you give them, it s how you treat them Insanity: Doing the same thing over and over again and expecting different results 25
26 Which Idea Helps You Most? 1. Placing dollar costs on turnover 2. Holding leaders accountable to retention goals 3. Leaders conduct stay interviews 4. Use realistic job previews when hiring 5. Increase employee referrals 6. Something else 26
27 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? 27
28 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 28
29 Questions & Discussion For Costing Turnover & Engagement Paper give me your business card or Include Total # of Employees 29
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