Your company’s ability to manage staff turnover to improve
retention can result in:
 | Better recruitment
|
| Lower costs
|
| Improved morale
|
| Better knowledge base
|
A degree of staff turnover is inevitable and can actually be
beneficial. However, too much staff turnover can be costly,
demotivating and frustrating.
Retention is about analysing and implementing ways in which you can
encourage your staff to remain employed by the company.
Research has indicated that the total cost of employee turnover can
range from 150% to 200% of an employee’s annual salary.
5 STEPS TO MANAGING RETENTION
1. Determine the extent of turnover in the company, your area, your
team by:
Taking the number of people leaving in the year and
dividing by the average number employed in the year and multiply by
-
2. How does your company compare with other organisations within
and outside your industry?
You can compare your organisation
with the industry, the geographical area, the state, and/or the
Australian figures.
3. Determine why your employees are not being retained.
Conducting exit interviews can be part of this process. Feedback can
also be used for:
| Job descriptions
|
| Training
|
| Recruitment
|
| Organisational strategy
|
| Review of grading
|
| Review of facilities
|
| Do you know what motivates your employees to stay?
|
4. Calculate the effects of this turnover
Tangible effects
include:
| Separation costs
|
| Temporary replacement costs
|
| Recruitment and selection costs
|
| Induction and training costs
|
Intangible costs include:
| Reduced morale
|
| Loss of implicit knowledge and skills
|
5. Take steps to implement retention strategies
The quality
of the management is critical to employee retention.
Employees tend to leave managers more often than they leave a
company. The quality of management includes the individual having
clarity about:
| Your expectations
|
| Their earning potential
|
| Feedback on their performance
|
Realisations Consultancy can tailor a program to meet your exact
needs and help you master retention.
Please contact Dr Genevieve Armson (08) 9470 2662 or
genevieve@realisations.com.au to arrange a no-charge consultation.
