Chapter 10: Retaining employees Flashcards
What is involuntary turnover?
turnover initiated by the organization
What is voluntary turnover?
turnover initiated by the employee.
Name two disadvantages of voluntary turnover?
- Costs of hiring new employee is really expensive (1.5x base salary, for star performers 2-3x)
- Loss of company-specific knowledge
Name two advantages of voluntary turnover?
- Retaining all employees doesn’t create enough space for promotions
- Inability to innovate with knowledge from outside organization.
What is a shock when talking about retaining employees?
jarring event that forces employee to review their employment situation
What are the five different paths to turnover?
- A shock: e.g. employee’s partner gets a job overseas; following dreams to live abroad
- A shock: employee applies for internal promotion but passed over; sees limited advancement opportunities for future
- A shock: employee receives unexpected job offer; new opportunity is considered better than current situation
- History of dissatisfaction: employee is unhappy and quits without looking for a new job
- History of dissatisfaction: employee is bored and initiates job search. They quit as soon as they find a more desirable opportunity.
What is pre-quitting behavior and name four examples?
behavior before they quit. Examples:
1. Decrease productivity and effort
2. Less willingness to commit to long-term deadlines
3. More expressed dissatisfaction with job and manage; more absence
4. Less enthusiasm for organization’s mission.
How should you handle passing over employees for internal promotions?
if you’ll pass them over, give them an interview. Makes them feel like they are getting close and they see more opportunities for advancement. Makes them half as likely to quit.
What are exit conversations?
employee-initiated communications during which employee expresses their decision to move on.
What to things should managers address in exit conversations?
As manager, express two things: 1) appreciation for service employee has already contributed and 2) indicate organization’s interest in maintaining a post-exit relationship.
What does embeddedness consist of?
And why does embeddedness matter?
embeddedness consists of fit, links and sacrifice
Highly embedded employees are more likely to respond to shocks and dissatisfaction in positive ways.
What are fit, link and sacrafice in on-the-job embeddedness?
- Fit: extent to which a person’s skills, interests and values align with their work and the organization
- Links: formal and informal connections between people
- Sacrifice: costs associated with leaving the organization
What is offboarding?
strategies that ensure employment ends on a positive note and establish long-term connections with former employees. Always express gratitude for their work
What is the best strategy for retaining employees?
Best strategy for retaining employees is to focus on helping them build fit and links within organization; monetary rewards can be easily mimicked.
Managers should help employees build connections, links, by introducing them to people within the organization.
What are employee resource groups?
voluntary, self-organized employee networking groups encourage by employers.
