Getting Employers Involved in Job Retention

Transcription

1 101 Hickory Lane Annapolis, MD PH# or Getting Employers Involved in Job Retention Presented By: Jodie Sue Kelly Cygnet Associates For: The Virginia Community College System Virginia WIA Statewide Meeting October 25, 2012

2 Getting Employers Involved in Job Retention Jodie Sue Kelly Cygnet Associates During Economic Downturns, the Old Approach Won t Work. Lots of people are out of work Lots of people are applying for jobs Lots of people are willing to take jobs below their skill level and salary requirements just to have a job. Employers are inundated with applicants. 1

3 How is labor exchange a benefit in a high unemployment economy? Basis of A Sale All Sales are Based on the Solutions to Problems. If the employer doesn t have the problem related to a solution you are selling then you won t make a placement. Solution: We have ready supply of workers. Situation: Employers have applicants lined up out the door. Eek! Above are not a match. 2

4 Labor Exchange versus Employee Retention Which has more value? Highest Turnover Jobs According to Dow Market Watch Fast Food Part Time Retail Parking Meter Enforcement Nursing Child Care Accounting, Consulting, Auditing Telemarketing and Call Centers Movie Theaters Hospitality Sales 3

5 Types of Turnover Functional and Dysfunctional The Cost of Employee Turnover Pre-departure Costs Termination Costs Recruitment Costs Training Costs Productivity Costs Vacancy Costs Misc. Costs 4

6 A Well Designed Retention Strategy Saves Money Cost of employee turnover is between 30 and 200 percent Sell More or Cut Costs? Most U.S. corporations are sitting on a gold mine of opportunity: reducing high turnover costs. A single retail store would have to sell 3,000 additional pairs of khaki pants at $35 each to make up for the loss of one employee 5

7 What does turnover really cost? Fictitious Grocery Store Chain: 1500 employees x 30 percent turnover rate x $12.50 an hour x 37.5 hours per week x 50 weeks a year x 30 percent turnover cost = $3,164, Total Turnover Costs Profit Margins: An important metric Profit margins (grocery store chains) 1 cent on each dollar of sales. That means for each $1.00 they sell, they make 1 penny. Volume is the key. 6

8 Fictitious Grocery Store: Solve for loaves of bread $3,164, cost of turnover Divide by profit margin of 1 percent $316,406,250 (Additional dollars need to make up cost) Divide by $2.50 for a loaf of bread To make up for turnover, Fictitious Grocery Store has to sell 124,962,500 more loaves of bread. Formula Multiply number of employees by turnover rate by wage per hour by hours per week by weeks per year by 30% cost of turnover. Total is the cost of turnover. Divide by profit margin. Total is increased sales needed to make up turnover cost. Divide by an item the company sales and that is the total extra items the company needs to sell to make up costs. 7

9 Factors that Impact Retention: Most Effective Clearly defining the way supervisors are expected to interact with employees Attracting candidates who fit the criteria of the job Developing an interview process that confirms whether the candidate meets criteria Selecting the right candidate Training and Improving Employees Rewarding Employees A formalized orientation to start the worker out on the right foot. Factors that Impact Retention: More Effective Stock Purchase Plans Medical Insurance Flexible Working Hours Company Car Holiday Pay Employee of the Month Physical Surroundings Company Newsletter Sick Pay Day Care Services 401 (k) Savings Plan Vacation Dental Insurance Retirement Plan Service Anniversary 8

10 Factors that Impact Retention: Effective Free/Reserved Parking Matching Gifts to Charities Scholarships for Youth Community Service Casual Dress Days Sign-On Bonus Company Picnic Tuition Refunds Credit Union Jury Duty Pay Holiday Parties Direct Pay Deposit Summer Jobs for Kids Subsidized Cafeteria Exercise Facilities Company Store Christmas Bonus Recreational Leagues Services During The Hiring Process: Priority to Most Effective List Clearly defining the way supervisors are expected to interact with employees Attracting candidates who fit the criteria of the job Developing an interview process that confirms whether the candidate meets criteria Selecting the right candidate Job Retention Certification Job Analysis Job Matching Interviewee Commitment Interview Debriefing Job Previewing Assistance Wage Analysis 9

11 Services After Hire: Priority to Most Effective List Training and Improving Employees Rewarding Employees A formalized orientation to start the worker out on the right foot. Orientation Design Employee Assistance Program Periodic Follow-along Job Coaching Additional Training Incumbent and Employed Worker Training Letter opening in General Benefit Statement Format Dear : If you're like most employers responding to opinion surveys today, finding and keeping competent workers is a major challenge. Employee turnover is costly, causing workforce instability, reducing efficiency, lowering effectiveness, and negatively impacting the bottom line. We are a local organization who can help you find good workers and help you to retain them. 10

12 Headlines for Selling Hire Today. Here Tomorrow. High Turnover to High-Retention A Complete Employee Retention Strategy Reduce Employee Turnover Retaining Employees How Much Does Turnover Cost You? Employee Retention: The Competitive Edge Your Employee Retention Headquarters Learn the Secrets of Employee Retention Job Retention Certification Employers are Risk Adverse. A perceived risk is uncertainty about work habits and attitudes. Take away the risk by certifying Job Retention readiness. Test Knowledge of Work Habits Observe and Measure Behaviors Create Written Plans for Common Barriers like child care, transportation, time schedules 11

13 Job Analysis Primarily conducted one of three ways: Observation Questionnaire Interview Structured Unstructured Information input (where and how the worker gets information), Mental processes (reasoning and other processes that workers use), Work output (physical activities and tools used on the job), Relationships with other persons, and Job context (the physical and social contexts of work). Job Matching Employer Worker Quality of the Job Quality of Training Intensity of Supervision Candidate Likes Job Human Capital Psychological Capital 12

14 Interview Commitment Build Commitment Emphasize the importance of the decision Ask customer to talk it over with others Get him/her to sign a contract Interview Debriefing Debrief with every customer following the interview. If there are issues or concerns, identify and deal with them. Contact the employer and discuss the debriefing. Make it a service to the employer Sample Questions How long were you there? How did the interviewer describe the job to you? Was anything about the job described differently than I described it? What did you like or not like? What did you think about the workplace and the people? How does this job fit into your goals? Do you anticipate changes in your family s routine if you were to accept the job? Do you want this job? 13

15 Expectations Versus Reality Job Preview Opportunity to observe Environment/culture Pace/task management Interactions with co-workers, customers Expectations 14

16 Job Preview Assistance Job satisfaction rises when expectations match reality. Most effective way of giving preview is incumbent interviewing. Sales pitch Every time you hire someone you are making an investment in your business. Isn t it worth 10 to 15 minutes of a current employee s time to make sure you are making a good investment? Potential Job Preview Questions How long have you been working here? What do you like best about the job? What do you like the least? Describe a good day at work and describe a bad day at work. What is the supervisor like? What kind of work pace does the supervisor seem to expect? What are the other workers like? Before The New Employee Arrives Sounds like we are ready. Send the new employee an agenda so he/she knows what to expect. Make sure the work area is ready. Prepare the co-workers to know the new employee is starting. Assign someone to be a mentor. Have a job description. 15

17 Ways to Turn Off Your New Hire Forget he or she is coming. Don t have a work area assigned. Don t have tools and equipment ready. Have the new employee start on a day that the supervisor is out. Let the new employee stand around feeling foolish while staff try to figure out what to do with him or her. Let the employee make his or her own lunch arrangements while other employees go off together. Don t let him/her feel included. What have I done? Ways to Turn-Off Your New Hire Don t give the new employee a job description or employee handbook. Sit the employee in a room and have them read manuals and complete paperwork and call that orientation. Give the employee busy work that has nothing to do with his or her real job because everyone is too busy to actually train the worker. Don t prepare the co-workers for the new employees arrival and don t include them in the orientation. I m out of here at first break. 16

18 Employee Assistance Program Day care Transportation Counseling Budgeting Referrals to community agencies Problem Solving Job Coaching Periodic Follow-Along Follow Up with the Worker AND Employer Have prepared questions (not off the cuff) Avoid rating sheets (you won t get useful information) Schedule it and stick with the schedule Avoid interfering with the worker on their job site 17

19 Follow-up with Employer Has the worker been to work every day scheduled? Do you think the employee has the skills needed to learn the job? How well has the employee responded to training? Does he/she fit in with other workers? Follow-up Questions Tell me about your first day. Have you met your coworkers? What do you like most? What do you like least? Are you getting the hours you thought you would? How are your transportation/day care arrangements working? Is your family still excited about you working? What type of training did you get? Tell me about the orientation. Have you gotten a job description? ASK FOR DETAILS! 18

20 Wage Analysis: Two Sides Help employers learn what others pay for the same position Help the customer figure out if the job pays enough to cover the budget. If the customer is not making enough, turnover will be the result. Job Coaching Emphasis would be on how job coaches don t interfere but enhance. 19

21 Additional Training Supervisory ADA Training to Your Candidates Tax Credits/Incentives Continued Job Coaching Retention Relationship Management Services are intangible. Services are not standard. Services are created and used simultaneously. 20

22 Idea for service delivery. Your program can decrease the variability of services to employers by adopting a uniform placement procedure. Decide which services to offer and then structure them so they are always delivered in a uniform way. Educate Employers about How to Use You. If employers don t understand how to use your program effectively, they will not give you information you need to do an effective job. They will think your requests and questions are nuisances. The relationship will suffer. 21

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