Skilled Managers are They Key to Retaining Talented Employees?
Employers may be in for a battle to keep their best workers over the next few years. Turnover seems poised for a significant increase, according to a survey done by TalentKeepers, a global employee retention firm.
The study included 547 major U.S. based firms, representing every major industry. For the first time, this annual forecast was called “decidedly gloomy.”
First, I’ll share some excerpts from the survey, and then I’ll suggest some ideas about what you can do about it.
Only 3% predict turnover will decrease for their industry and nearly half – 45% - forecast an increase in turnover. Early tenure turnover also has been trending up, with many workers leaving jobs after less than a year.
The study identified fairly definable periods in the employee lifecycle where the risk of voluntary turnover is highest. While few workers quit during initial training, which is only 1% of all turnover, the number quickly jumps to 15% during the first 90 days. Another 25% leave around 1 year into their jobs. Added together, 59% of all attrition is occurring in the first year of employment and begins declining only after the 1-2 year period. These days, no one is thinking about keeping workers forever. The new thinking is focused on extending the average length of stay.
Turnover’s impact on organizations continues to rise as well. When asked to report the areas most impacted by the loss of employees, executive cited lost productivity and service quality at the top of the list. We have continued to see these and related business issues rise to displace the typical direct “employee replacement” cost normally associated with the cost of turnover. Furthermore, based on this research, we predict that organizational productivity will outweigh every other negative impact when a valued employee quits.
So, what can be done?
If you are ready to call in your HR department to work on this problem, I urge you to take a step back and look at the bigger issue. There is no HR program that will undo what each manager will not do. In other words, it’s the employee’s manager who is responsible for orienting a new employee, making sure they are trained for their work, clear about the expectations, and the provider of ongoing coaching and feedback, that will keep the person challenged and growing.
Craig Taylor, who led the study, agrees, “Employee turnover is a business problem. No longer can the loss of talented employees be viewed as a “people” problem where responsibility and solutions reside with the Human Resources department. If a business problem was costing millions of dollars a year, wouldn’t you hold leaders throughout the organization accountable for fixing it?” Exactly.
If you organization is serious about retaining the best talent, senior management must put a priority on it. Here are some strategies that senior management can endorse:
(Copies of the report are available, contact Craig Taylor at email@example.com ).
Good managers know that employee satisfaction is essential to healthy teamwork, initiative and productivity. Based on an in-depth study of the most innovative ideas in creating a culture where employees thrive, our . Recruiting & Retention Tools have all the secrets you will need to find and keep the best employees.
Recruiting & Retention Strategies Booklet Series (Includes Joan’s booklet, 86 Creative Ideas for Having More Fun & Less Stress at Work)
Joan Lloyd has a solid track record of excellent results. Her firm, Joan Lloyd & Associates, specializes in leadership development, organizational change and teambuilding. This includes executive coaching, 360-degree feedback processes, customized leadership training, conflict resolution between teams or individuals, internal consulting skills training for HR professionals and retreat facilitation. Clients report results such as: behavior change in leaders, improved team performance and a more committed workforce.