Stay Interviews + Onboarding: Involving Managers to Reduce Early Turnover

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1 Stay Interviews + Onboarding: Involving Managers to Reduce Early Turnover Wednesday, June 20, :00 AM PDT/ 1:00 PM EDT Duration: 45 min. for webinar, 15 minutes for Q&A Featured Presenter: Dick Finnegan, CEO of C-Suite Analytics Copyright C-Suite Analytics 2012, All Rights Reserved Access the webinar: 1. Dial in: Enter meeting number/ access code: Enter attendee ID number or press # WebEx Technical Support: Instructions: If you ve joined us early, you may hear sound checks/testing. Please wait. The webinar will begin at the appointed time. Send questions via Chat feature anytime during the presentation. They will be answered at the conclusion of the webinar. Recommended Browser: Windows Internet Explorer

2 Finnegan Background Recovering HR director who has solved disengagement & turnover across 6 continents including Siberian banks, African gold mines, and the CIA Author of Rethinking Retention in Good Times and Bad, endorsed by BusinessWeek as offering fresh thinking for solving the turnover problem in any economy Author of The Power of Stay Interviews for Engagement & Retention Noted as employee retention expert by BusinessWeek, Chief Executive Magazine, & Consulting Magazine Partners with HR Excellence Center of China to conduct employee retention programs for Microsoft, Coca Cola, and other companies across China 1

3 How To Avoid You re Hired, Onboarded, & Trained: GOOD LUCK! June 20, 2012 Dick Finnegan 2

4 Today s Agenda The Rethinking Retention Model Trust Building Essentials Stay Interviews Leverage All Free Gift 3

5 New Hire Risk Only 26% of first year employees are truly loyal and 45% are high risk Walker Information While 69% of new hires feel satisfied and enthusiastic during their first 90 days, that number continues to plummet throughout employees first year Sirota 27% of fresh out nurses turn over in their first years at very high cost 4

6 6 Grabbing Statistics #1: Nursing is the #1 most recessionproof job #2: 233,000: # of new nurses needed each year #3: 370/200,000: # of hospitals/employees surveyed to learn nurses were least satisfied #4: 27%: # of fresh out nurses who turn over in first year #5: 3.9%: Unemployment rate for college grads versus 14.7% for HS dropouts #6: 50 90%: Employees who will seek new jobs 5

7 6 Statistics Conclusions #1 233, /200,000 27% 3.9% 50-90% 1. Nurses are and will be in incredible demand for our lifetimes 2. Nurses top the frustration list 3. Nurses can always leave 6

8 The Rethinking Retention Model Process or Program Driven? Retention Programs driven from the side like surveys, employee appreciation week, newsletters Retention Processes driven by by executives from from the top the top like sales, service, quality, quality, and safety and safety 7

9 Supervisors Impact on Retention If you have a turnover problem, look first to your managers Gallup Primary reason for seeking a new job is disliking boss s performance Yahoo Employees stay for managers first and co-workers second salary.com Poor leadership causes over 60% of all employee turnover Saratoga Institute When employees stay, it is because of their immediate managers National Education Association Employees who stay primarily for their supervisors stay longer, perform better, and are more satisfied with their pay TalentKeepers Employees relationships with managers mediate their perceptions of pay, benefits, development, and advancement Kenexa 8

10 The Rethinking Retention Model Research-Driven, Process-Based 9

11 The Rethinking Retention Model 3 Principles Point #1. Employees quit jobs because they can Point #2. Employees stay for things they get uniquely from you Point #3. Supervisors build unique relationships that drive retention or turnover 10

12 The Rethinking Retention Model For supervisors Point #4. Hold supervisors accountable for achieving retention goals Point #5. Develop supervisors to build trust with their teams For people management processes Point #6. Narrow the front door to close the back door Point #7. Script employees first 90 days Point #8. Challenge policies to ensure they drive retention For top management Point #9. Calculate turnover s cost to galvanize retention as a business issue Point # 10. Drive retention from the top, as executives have the greatest impact on achieving retention goals 11

13 The Rethinking Retention Model 12

14 The Rethinking Retention Model Process or Program Driven? Retention Programs driven from the side like surveys, employee appreciation week, newsletters 30% Retention Processes driven by executives from the top like sales, service, quality, and safety 70% 13

15 Ask yourself Which do you think impacts first-year retention and engagement more Your onboarding program? First-line managers? 14

16 Ask yourself Do you set first-year retention goals for some or all positions? Yes No 15

17 Ask yourself Do your managers conduct structured meetings in new employees first years that are about retention vs. performance? Yes No 16

18 Stay Interviews A Stay Interview is a structured discussion a leader conducts with each individual employee to learn the specific actions she must take to strengthen that employee s engagement and retention with the organization Stay Interviews Bring information that can be used today Focus on individual employees including top performers Put managers in the solution seat 17

19 Stay Interviews Vs. Survey Staples Exits Engagement Too long Don t reveal truths Better opportunity No follow-up No changes autopsies! Engagement surveys do provide benchmarks! Average thinking vs. top performers Opinions vs. importance Long delays Annual temperature checks Short-term, feel-good programs don t build up skills 18

20 Are You A Believer? How do we know supervisor trust is the absolutely most important retention & engagement skill? 19

21 Why Was Your Best Boss Your Best Boss? My best boss ever was my best boss because

22 Why Was Your Worst Boss Your Worst Boss? My worst boss ever was my worst boss because

23 The Fortune Top 100, 2012 #1: Employees rave about their mission, the culture, and the famous perks of the Plex: bocce courts, a bowling alley, eyebrow shaping 25 cafes, all gratis 22

24 Two thirds of a company s score is based on the results of the Great Place To Work s Trust Index Survey Any company can be a great place to work. Our approach is based on the major findings of 20 years of research that trust between managers and employees is the primary defining characteristic of the very best workplaces. The Great Place to Work Institute 23

25 Google s Quest To Build A Better Boss What Makes A Great Boss At? As published in The New York Times, March 12 th,

26 Google s Quest to Build A Better Boss Technical expertise the ability, say, to write computer code in your sleep ranked dead last among Google s big eight. What employees valued most were even-keeled bosses who made time for one-on-one meetings, who helped people puzzle through problems by asking questions, not dictating answers, and who took an interest in employees lives and careers. 25

27 Google s Quest to Build A Better Boss What employees valued most were Even-keeled bosses who made time for one-onone meetings Who helped people puzzle through problems by asking questions, not dictating answers And who took an interest in employees lives and careers. 26

28 Which Side Matters More? Pay, benefits, bonuses, Employee appreciation week, Employee of the month, Brown bag lunches, Leaderboard winners, career Ladders, employee surveys, Exit surveys, onboarding, Training monitoring sessions, Team meetings, all-hands Meetings and almost everything else Employees trust their direct supervisors on all levels throughout your organization 27

29 Which Side Matters More? Pay, benefits, bonuses, Employee appreciation week, Employee of the month, Brown bag lunches, Leaderboard winners, career Ladders, employee surveys, Exit surveys, onboarding, Training monitoring sessions, Team meetings, all-hands Meetings and almost everything else Employees trust their direct supervisors on all levels throughout your organization 28

30 Supervisors vs Programs Good Programs + Good Supervisors = Retention & Engagement Good Programs + Poor Supervisors = Turnover & Disengagement 29

31 Imagine Your supervisor schedules a meeting to ask: Why do you stay? What can I do to make you stay longer? Has your supervisor ever asked you to have a meeting just to talk about you throughout your career? How would you feel if your supervisor made just one thing better? How can I make your working so hard here feel better? What do you want that you are reluctant to ask about? New role? Stop doing? Start doing? Learn something new? 30

32 Imagine How much money how many actual $s would Now gulp imagine that every supervisor developed skills & conducted this type of meeting with every employee in your company this be worth? How much would your engagement and retention improve? 31

33 How Many $s Are At Risk? Engagement One standard deviation improvement in engagement increases revenue per employee by $4,675 For a typical S&P 500 organization, = revenue increase of $93.5 million Proportional increase just as large for small/medium companies Retention Turnover costs companies 12% 40% of pre tax income Costs shareholders 38% in additional value in just four high turnover industries Annual cost nationally is $25 billion 32 32

34 3 Stay Interview Success Stories Florida Hospital Zephyrhills All turnover 37%; nurse turnover 70% Burcham Hills Retirement Community Nurse turnover 70%; 100% retention first 180 days Novo 1 Call Centers Agent turnover 20% 33

35 Stay Interview Key Ingredients Cascade Tops Down Conducted by supervisors vs HR Separate from Performance Script openings, initial questions, responses, possible solutions Schedule at early intervals like 60, 120 days Gather stay & potential leave reasons at the top Repeat annually after 34

36 What is Your Early Turnover Tipping Point? If turnover is high up to 6 months and then improves after Ask managers to conduct Stay Interviews at 30, 90, and 180 days to improve early retention. 35

37 Instructions for Conducting Stay Interviews 1. Introduction 2. Skill #1: Always take notes A Skill-Based Process Like Performance Reviews 3. Skill #2: Be a great listener 4. Skill #3: Remember to probe 5. Skill #4: Take responsibility 6. Summarize 7. Explain next steps 36

38 Best Turnover Predictor Advanced Technology Systems Peoria, Illinois Supervisors conduct annual Stay Interviews; also conduct Stay Interviews for new hires at 30 & 90 days Supervisors predict retention risk via Green.likely to stay Yellow concerned Red unlikely to stay Develop action plans for yellows and reds Supervisors accountable for coding 37

39 Next Webcast: Employee Retention 501 For Those Who Seriously Want to Improve It Setting goals, holding managers accountable, and putting a cost on turnover Date: August 7, 2012 Time: 10:00 AM Pacific Time/1:00 PM Eastern Time 38

40 Free Gifts! 1. To Receive Profiles of 5 Organizations That Applied Stay Interviews to Improve Engagement and Retention Please Me and title 5 Profiles DFinnegan@C-SuiteAnalytics.com 2. Contact Tim Stene at AllHealthcareJobs.com for your free recorded copy of our May 23 webinar, Hiring for Engagement & Retention. Here s what you missed: The first in our webinar series on retention in healthcare How hiring is related to retention Eight ways to hire for engagement & retention Tim.Stene@AllHealthcareJobs.com

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