How to manage employee turnover

"HR today sits smack-dab in the middle of the most compelling competitive battleground in business, where companies deploy and fight over that most valuable of resources— workforce tal

HOW TO MANAGE

EMPLOYEE TURNOVER

"HR today sits smack-dab in the middle of

the most compelling competitive battleground

in business, where companies deploy and

fight over that most valuable of resources— workforce talent."

-Matthew D Breitfelder HBR: “Why did we ever go into HR”

A Changed Perspective

Millennials will comprise 75% of the global workforce by 2025

• Workforce competency and skills gap

• Increased competition

• Globalization

• Culture

• Competition for talent

• Stresses on work-life balance

• Etc.

–Bersin by Deloitte

–Ram Charan

Best-selling Author,

World-renowned Business Advisor

Organizational Power

Organizational power goes to the group that

deals with the biggest problems

Alfred Marshall

economist

Defining and

The rate at which people leave a place, company, etc., and are replaced by others

Adding Good Complexity

Good Turnover vs Bad Turnover

Low performer High Performer

Retention is still

a Major Concern

Turnover costs more than

Common Myths of Employee Turnover

Myth: Turnover is

Myth: Turnover is

Myth: We can predict turnover

Myth: Turnover is always

Employee Retention

HR viewed as a cost center

Transactional HR High-Impact HR

HR as a strategic investment

Basic Operations

Strategic Operations

OF NEEDS

(Culture, Performance, Engagement,

Satisfaction, Employment Brand, Advising

Talent Management, Succession

Planning, Learning & Development…)

General Operations

Business Value

(Operational Efficiency: HRIS,

Records, Talent Acquisition,

Compliance Tracking, Etc.)

(Payroll, Benefits, Time &

Attendance, etc.)

©

Understand your true worth

as a strategic necessity

Eliminate the unnecessary

shed all the dead weight

Organize your information

to lay a foundation for insight

Automate the operational

set yourself free to do great work

Maximize business value

align activities to strategic outcomes

Solve meaningful problems

learn to think, act, and win like a business.

Measure and report

the value and impact of your work

Aon Hewitt

Engagement goes beyond satisfaction Engagement occurs when we find

meaning, autonomy, growth, impact, and connection MAGIC in what we do.

• Purpose Alignment

• Culture Alignment

• Personal / Professional Development

• Learning and growing

• Clear career path

Setting up your

Comp as a Keystone

What compensation

your org?

How aggressively to

pay

What to reward

Performance, Experience, etc

What about variable pay ?

Less than 100 Employees

100 - 1,000 Employees

More than 1,000 Employees

Retention bonuses Hiring bonuses Individual incentive bonuses Team incentive bonuses

Spot bonuses or other discretionary bonus programs

74% of all companies

Recruitment & Retention Plans

Discretionary bonus plan

Stock option/grant

plan

Learning and developmental opportunities

More perks-gym memberships, catered lunch, etc Plans to recruit and retain high-performing employees

All Top Performer

Immediate Actions

 Calculate turnover rate

 Identify good and bad turnover

 Brainstorm retention efforts that work

 Evaluate your comp plan – does it align with org objectives for retention?

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