10 Things to Guarantee Turnover October 13, 2015 9:05 am 9:55 am
Moderator Bob Graczyk Vice President of Human Resources QuickChek Corporation Speaker Susan Stang Vice President, Leadership Services PSI Services, LLC
Objectives Avoid the common practices that contribute to employee turnover Follow practical recommendations to improve employee retention
Good Ideas Increased Turnover
Top 10 Countdown: Good Ideas Ways you may be unknowingly contributing to turnover 1) The Idea 2) What Goes Wrong? 3) Best Practice & Retention Strategy Possible Next Steps Key Takeaways
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority
Clear lines of authority Create accountability Focus on problem solving Ensure consistency Direct activities
Clear lines of authority can also lead to Execution without explanation Work without thought Process without purpose Rigidity without reason
Retention Strategy: Respect employees Keep compensation and benefits current and competitive Have faith in their abilities Allow employees to contribute Ask for input Offer flexibility
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates
Hiring managers based on employees past performance will fail what percentage of time? A 20% B 40% C 60% D 80%
Store Manager Managing Resources Confronting Problems/Removing Obstacles Supporting Performance Excellence Creating a Culture of Accountability Building Relationships Driving for Results Sales Associate Communicating Effectively Communicating Effectively Focusing on the Customer Focusing on the Customer Being Friendly Maintaining a Positive Attitude Taking Action Being Dependable
Impact? You have lost a great Sales Associate and hired an ineffective Manager
Retention Strategy: Hire for fit Base your decision to promote on the competencies required, not performance in an entirely different role
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates 8. Create comprehensive detailed policies
Rules have a role, but they should be easy to follow, and transparent in purpose should be accompanied by training as well
Retention Strategy: Eliminate unnecessary rules Review policies and processes that have been in place for years - move away from it s the way we have always done it thinking Form teams/solicit feedback to identify and update dysfunctional processes or policies
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates 8. Create comprehensive detailed policies 7. Put your best foot forward
Share conditions of employment We work while others play Disney
Retention Strategy: Use your word wisely Communicate with honesty, openness, and respect Allow for self selection Focus on what is possible
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates 8. Create comprehensive detailed policies 7. Put your best foot forward 6. Keep the job simple
Retention Strategy: Reduce boredom create fun Identify opportunities for growth Allow for laughter Prioritize happiness
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates 8. Create comprehensive detailed policies 7. Put your best foot forward 6. Keep the job simple 5. Share formal feedback
What percentage of employees indicate that they dread the performance review process? A 29% B 54% C 73% D 98%
Formal Performance Evaluations Review the reason and rationale Redesign to: o minimize work required o increase meaningfulness of feedback Focus on what s working well and encourage it
Once a Year is Not Enough
Retention Strategy: Bring out the best in your employees Commit to collaboration and cooperation Identify growth opportunities Coach and develop
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates 8. Create comprehensive detailed policies 7. Put your best foot forward 6. Keep the job simply 5. Share formal feedback 4. Focus on results
What motivates employees
The employees who are most engaged report that their managers: A B C D Help them to develop their weaknesses. Focus on their strengths. Accommodate their needs. Provide bonuses and perks.
Retention Strategy: Value employees Genuinely care Make communication a priority Express appreciation Recognize accomplishments
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates 8. Create comprehensive detailed policies 7. Put your best foot forward 6. Keep the job simple 5. Share formal feedback 4. Focus on results 3. Motivate through pay
What do employees consider most important when looking for a job? A B C D Good wages. Meaningful work. Appreciation for a job well done. Managerial support.
Make it meaningful
Focusing employees on meaning and purpose resulted in Before After Turnover Absenteeism Minimal Focus on Meaning Turnover Absenteeism Focus on Meaning University of Alberta
Retention Strategy: Be inclusive Make work meaningful Share purpose and credit
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates 8. Create comprehensive detailed policies 7. Put your best foot forward 6. Keep the job simple 5. Share formal feedback 4. Focus on competence and experience 3. Motivate through pay 2. Set aggressive goals
Retention Strategy: Set realistic expectations Focus on what is reasonable Offer necessary tools and resources Understand what is done Collaborate instead of mandate Readjust as necessary
Top Ten Ways to Guarantee Turnover 10. Establish clear lines of authority 9. Promote your best sales associates 8. Create comprehensive detailed policies 7. Put your best foot forward 6. Keep the job simply 5. Share formal feedback 4. Focus on results 3. Motivate through pay 2. Set aggressive goals 1. Hire top talent
Out of every 3 new hires, how many will disappoint within the first 12 months? A 0 B 1 C 2 D 3
Average employee turnover 84.4% NACS State of the Industry Report, 2014 80% of job failures are due to poor hiring decisions Harvard Business Review
Undeniable Truths Success is complicated Good decisions are rarely made in desperation You may not know it when you see it
Consider: Right Skills? Right Attitude? Fit with Culture?
Retention Strategy: Hire for fit Identify what differentiates your superstar performers Define the success profile the attributes, perspectives, and attitudes that drive top quality performance Select the candidates that best meet the profile
Practical Recommendations to Reduce Turnover and Become an Employer of Choice 1. Define a top performer What competencies and characteristics do your top performers have? 2. Evaluate the basics Benchmark your numbers, metrics, and practices 3. Communicate honestly Share information Be accountable 4. Offer meaning and alignment Ensure leaders support the culture in word and action Share purpose, focus, and strategy with all Understand your employees perspective 5. Lighten up, and have fun
Key Takeaways From Today Best practice retention strategies lead to employee engagement Employee engagement matters o 65% lower turnover o 48% fewer safety incidents o 37% lower absenteeism o 28% less shrinkage o 22% higher profitability Number 1 strategy to reduce turnover hiring right o If you select the wrong manager, nothing can compensate not pay, not benefits, not hours o High engagement starts with hiring for fit (putting people in the jobs that are right for them) Gallup (2013) State of the American Workplace: Employee Engagement Insights for U.S. Business Leaders http://www.gallup.com/strategicconsulting/163007/state-american-workplace.aspx
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