E 50 people annual turnover of this group is 30 15

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Unformatted text preview: gements Cost of hiring for the position (advertising, agent fees etc) Cost of the new hire becoming fully effective (only 60% effective for first 3 month Lost customers, lost momentum, impact on team Cost of finding new customers or rebuilding customer faith Loss of intellectual capital Decrease in ‘bench strength’ required for effective succession planning Stress and damaged productivity within the team Negative effects on the organization's reputation Conduct a retention audit Conduct a retention audit Step 1: Costing staff turnover ­ example A turnover cost example for identified Top Talent • • • • • • A workforce of 1,000 people 5% of workforce are identified as Top Talent (i.e. 50 people) Annual turnover of this group is 30% (15 people) Turnover is estimated at 2 times annual salary Average salary package of Top Talent is $100,000 Talent turnover is $3,000,000 for the group ($200,000 per position) Why do people quit their job? Why do people quit their job? The Three P’s Step 2: knowing why people leave • PUSH – some people are pushed (feel forced to leave) their job because they are dissatisfied with the organization or their job • PULL – some people are pulled (feel attracted) towards a new job or organization because it appears better than their current situation • PERSONAL – some people quit because of a change in personal circumstances; its nothing to do with their job / organization Conduct a Retention Audit Conduct a Retention Audit Step 2 – knowing why people leave PUSH, PULL, PERSONAL PUSH effect – these are unfavorable circumstances which cause the person to actively seek alternative employment elsewhere. Causes include… Dysfunctional organization (bad managers, bullying, poor culture, low morale,) Organizational limitations (such as promotion or professional development) Poor job fit between the employee and heir work (due to poor selection) Impending or current organizational change which seems threatening Can you think of any other PUSH factors? Conduct a Retention Audit Conduct a Retention Audit Step 2 – knowing why people leave PULL effect – The attraction of superior alternative employment elsewhere where employees are lured away from their organization. Examples include… Better terms and conditions elsewhere (pay, benefits, flexible hours) The excitement factor of a new location, challenge and environment Better job (more responsibility, authority, prospects) Better organization (brand name, size, products, reputation) Can you think of any other PULL factors? Conduct a retention audit Conduct a retention audit Step 2 – knowing why people leave PERSONAL reasons – another position better suits the employee’s lifestyle or changed personal circumstances Closer to home or childcare facilities or other amenities Must seek a new job due to family relocation / sale of house Illness means a new job might be easier, less stress, nearer hospital Financial pressures mean the employee must find a higher paying job Other personal issues (semi-retirement, bereavement, new baby) Can you think of any other PERSONAL factors? Conduct a retention audit Conduct a retention audit Step 2 – Knowing why people leave There are many ways we can find out whether people might leave our organization: • Annual staff satisfaction survey • Listen...
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