Retention Flashcards
(20 cards)
Understanding why people leave
.difficult to manage turnover unless you know why people leave
. Very difficult to obtain information
.Exit interviews
. Dependent on culture, reasons, support, future needs
Outside factors
.Unrelated to work .Relocation .Travel .Juggling needs .Unavoidable .Career breaks, flexible working, childcare
Functional turnover
.All resignations that are welcomed by employer and employee alike
.Poor work performance
.Failure to fit
.Lost opportunities and unnecessary cost
.improvement in selection needed
Push factors
.dissatisfaction with work or organisation
.wide range of issues:
.lack of opportunity, boredom, poor supervision, lack of involvement, personality clashes
. These can all be addressed but many organisations lack mechanisms to identify clashes
. Somewhere to voice concerns
Pull factors
.Attraction of rivals .Better opportunities .Work with particular people .Current employers can match offers . Ensure employees see what they currently have
Retention reasons
Recruitment and resourcing ‘mobilise’ workforce
. Expensive process
. Cost to recruit and train half to on and a half the annual salary for the post
. Ways to reduce time and money spent on this
. Avoid people leaving the organisation
Impact of staff turnover
. Level of damage varies
. Some industries can handle higher levels
. Some fast food chains=over 300% (4 month average)
. Yet still some of the most successful in the world
. Professional services organisations rely on person
. Turnover of 10% and would cause damage
Positives on staff turnover
. Avoid staff becoming stale and stunted
. New leadership to drive change
. New ideas and experiences
. More dynamic
. Managers can control labour costs- don’t have to hire until ready
. Keep redundancy bills low
. Functional rather than dysfunctional
Negative of staff turnover
. Advertising for replacement . Selection process . Induction . Training . Poorer initial performance . Human capital as lost resource . Time and money invested . Work for competitors
Common reasons for leaving
Taylor 2002
. push more than pull
. Pay less of a factor than expected
. Dissatisfaction with their work conditions
. Lack of career development opportunities
. People leave managers, not organisations
Why do people stay
Samuel & chipunza (2009)
. Talked to long serving staff . Training and development . Challenging and development . Freedom for innovative thinking . Job security
Pay
Those with better reward packages have lower attracting rates (gerhert, 2009)
. May people use pay as primary weapon
. Pay is less important than other reasons
. Pay is less important that other reasons
. Pay as a satisfied
. “While challenging work will compensate for pay, pay will never compensate for having to do boring work (sturges and guest ,1999)
Managing expectations
. Realistic job preview
. High hopes dashed by reality
. Balance needed at recruitment stage
. Positive and attractive but realistic and not misleading
. Importance of work experience and internships
Induction
. Easy to overlook
. Helps people work effectively as soon as possible
. Understand basic, how the role fits
. Information on organisations strategy and aims can be transmitted
. Cultural messages/expectations
. Psychological contract
Branham
7 hidden reasons
. Job not living up to expectations
. Mismatch between person and job
. Too little enhancement opportunity
. Devalued and unrecognised
. Stress from overwork /work-life imbalance
. Loss of trust and confidence in leaders
How do you keep people
. Kim (2012) = cost associated with loosing high value assets (such as employees) has caused organisations to identity and implement specific practices to ensure employee retention
. The events and leisure industry is unique and it is dependent on ‘human capital’ - retention is unique in this industry
Understanding why people work
Reade,2003
- enjoyment
- Friendly colleagues
- Earning enough
- Passion for the industry
- Good location
- Social life
Improving quality of line management
. Most effective way of reducing turnover is to address management performance
. Management is difficult
. Select managers based on supervisory capabilities
. Training of managers in supervision
. Appraisal of managers
Training and development
. Debate
. Training increases commitment vs training makes people more employable else where
. Type, source and funding employee feel valued (CPD)
Family friendly HR practices
. 5-10% of people leave for family or personal reasons
. US - 33% woman left to devote time to family, only 1% men
. U.K.- 21% of workers leave to have or look after children
. Employment can be more ‘family friendly’
. Mat leave, career breaks, jobs here, flex time, child care
