There is no doubt that the Human Resources Department and managers who handle the recruitment and selection process influence turnover.
Human Resources Department and hiring managers must identify the positive characteristics of a “best fit” job candidate. Also, the training must include strategies on how to best provide a “realistic job preview” regarding the details of company goals, job performance expectations, performance reviews, and the company management process.
For a company to find success in terms of a low turnover rate, it is essential to implement the following:
- Update job descriptions to ensure that they:
- Clearly define job duties, requirements, and responsibilities to enhance the pool of candidates for open positions
- Contain objective and measurable criteria
- Identify any potential future turnover problems
- Provide a “realistic job preview”
- Training for hiring managers and the Human Resources Department to include:
- How to identify “best-fit” candidates for a position
- How to interview based on “best-fit” candidate criteria
- How to utilize the company’s Applicant Tracking System
Statistics have shown that the majority of employees leave their job because they are unhappy with their boss.
A company must establish a plan to enhance the quality of the relationships between employees and their supervisors. Training and development discourage turnover by keeping current employees satisfied with developmental and future growth opportunities.
Developing a Retention Management Plan
Once your company has an understanding of turnover rates, costs, and how to update onboarding processes, then it is time to focus on building a retention management plan.
The goal will be to decrease unwanted turnover and focus on retaining valuable employees. A good retention strategy will combine a broad-based approach with a more targeted approach.
A broad-based strategy will be directed at the entire organizational workforce or maybe a group of departments. The broad-based strategy goal will be to achieve a target/acceptable turnover rate and define a strategy that will provide the most optimal cost-benefit ratio. The broad-based approach can be based on surveys conducted or rely on predictors related to turnover based on research. They could include the following:
- Across the board, salary increases based on market-rate data
- Work environment changes
- Retention bonuses
- Promotion and career development opportunities
- Individual spot or performance bonuses
- Communicating realistic information during the recruitment
Targeted based strategies would involve a more detailed analysis of the surveys mentioned above that would include:
- Exit interviews
- Post exit interviews
- Current employee focus groups
- Linkage research
- Predictive turnover studies
The targeted strategy may need to focus on hard to replace employees, the loss of star performers, or key employees. To focus on star performers, try including a performance-based reward program (this could increase retention among high performers and increase turnover of low performers). Focusing on the age of employee groups might be beneficial because different age groups might desire different rewards from their work life. The lists provided above are only suggestions and are not all-inclusive. You must take the time to figure out what will work best for your company, but remember to include both broad and targeted strategies when developing your plan.
Implementing the Plan
During the planning stage, anticipate objections from managers and executive staff members who may be resistant to the plan; however, their support will be essential to implementing the plan.
To implement a successful retention management plan, it is essential to ensure that company goals and the plan itself are clearly defined and must include the following:
- A communication plan for managers to ensure that they understand the overall impact of their hiring decisions
- Training for the Human Resources Department and hiring managers
- Development of policies and procedures
- Measurement of plan strategies to monitor which programs are effective
- Appropriate reporting on each plan strategy.