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white paper retention surveys final

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white paper retention surveys final

  1. 1. Employee Retention: Opportunities and Challenges with Onboarding, Retention, and Exit Surveys :: Introduction Modern workers no longer seek employment with intentions of a life-long career in the same capacity, or even the same company, as their predecessors did. The 20-year mark as the capstone of a career is considered by experts to be a thing of the past. (Kamenetz, 2012) The Bureau of Labor Statics (BLS) obtains, compiles, and analyzes data bi-annually on employee tenure through surveys of workers age 16 and older on a monthly basis. According to the most recent data, the average worker stays in the same job for about 4.4 years (see Figure 1); however, public sector employees have approximately twice the overall average tenure (approximately 8 years), BLS explained the increase tenure of public sector employees is partially due to a higher median age of government workers. Three quarters of government respondents were age 35 and over. The tenure for younger generations in any given industry is generally an average of 3 years. Twenty-one percent of all workers have been with their current employers for a year or less. (Bureau of Labor Statistics, 2012) These trends are expected to continue and have caused employee retention to remain a topic of interest among businesses across all industries and nations. :: Employee Turnover and Retention Some employee turnover should be expected and can be a positive change. Turnover allows opportunities for new ideas, innovation, and organizational growth. As Management Today reported, "At least one multinational [company] distinguishes between what it rather elegantly calls 'regretted' and 'non-regretted' types of staff turnover. Bosses in that company worry if regretted turnover is too high.” Training and institutional knowledge not only increase capacity and success within the position, they increase an employee’s marketability to competitors. The most effective employees are the most undesired losses within an organization. These employees tend also to be among the first to look for greener pastures and leave a greater gap for the employer to fill. (Inc.) Figure 1: Fast Company
  2. 2. Customer and client relations can also be affected by turnover and the lasting effect can be felt throughout an entire organization. Morale may decline in conditions where turnover is high and workloads shuffle continuously. (Hays, 2012) Accenture conducted research worldwide this year finding nearly half of business professionals were dissatisfied with their current jobs. Compared to Accenture’s 2012 research, dissatisfaction has declined by approximately 10%; and not all professionals are job hunting, despite expressing dissatisfaction. Nearly three- quarters of professionals plan to stay with their companies and strive to create new opportunities for themselves. Instead of looking elsewhere, these employees are focused on developing skillsets and seeking training, resources and people to help them achieve their goals. (Accenture, 2013) It is important for industries to get a finger on the pulse of their employees. Discovering employees’ goals and how they relate to their current position or the overall direction of the company improves chances of retention and opportunities to move talent into areas that support company and employee growth. The American Psychological Association conducted a study to determine top reasons workers stay with their current companies. For employees who said they plan to stay with their current employers for more than two years, the biggest drivers of expected tenure were enjoying the work, having a position that fits well with other life demands, and feeling connected to the organization. Fewer employees listed other reasons for staying in their positions such as benefits, pay, or lack of other job opportunities. (American Psychological Association, 2012) Retention surveys and exit interviews are becoming more prevalent in business today. The purpose of these surveys is to gather crucial data used to improve the work environment, boost employee engagement, and retain star performers. How should an organization gauge the impact of turnover? What can be done to minimize negative aspects and retain top talent? The simplest answer to these questions is to conduct a needs assessment: Build a process to acquire an accurate, thorough picture of a system’s strengths and weaknesses to improve and meet current and future challenges. Onboarding surveys, retention or stay surveys, and exit interviews are common need assessment methods. :: Onboarding Surveys Replacing employees is costly at any time, but can be particularly expensive within the first six to twelve months of employment. (Drake International) Onboarding surveys provide the first opportunity for insight about the perception a new employee has about a company and its processes. Research suggests, the first 120 days define how employees feel about their work environments and decide whether they will remain or leave an organization. The task of asking employees if they found the onboarding process informative is too vague on its own. Instead, consider asking new employees about: 1. Clarity of pre-employment communications. 2. If they were introduced to key colleagues. 3. Availability of training. 4. Whether the job description reflects their roles within the organization. 5. If experience on the job matches their expectations of the position when they joined.
  3. 3. Be proactive. Tell employees how much they’re appreciated. New hires can offer fresh perspectives on their surroundings. Ask how they were integrated, details about interactions with colleagues and management, and perceptions of work processes to quickly identify strengths and weaknesses. Detect and address problems early to ensure new employees are encouraged to stay, feel their opinions are valued, and leadership cares about their successes in their new roles. After investing time and expense in recruiting personnel, businesses may seek to grow new employees through training and experience, investments which are often significant to the employee and the company. It’s never too early to begin retention efforts. :: Retention Surveys Employees with tenure are the greatest assets for an organization, and efforts invested in retaining these employees are vital. Long-term employees have critical experience and job knowledge which can only be amassed over time in a position. While the process should be focused on people, retention efforts help protect the employer’s bottom-line, or the taxpayers’ investment. Leaders should not make assumptions about what will keep employees engaged and productive; nor should management speculate that all employees want the same thing. They should solicit the valuable opinions of their workforce for continual improvement efforts, and as a way of demonstrating their commitment to improving conditions for current employees. Just as leaders show appreciation for new hires, they should also show gratitude to long-serving employees. Imagine this scenario: A supervisor calls a key employee into the office for a meeting and says, “I probably haven’t told you this often enough, but you are important to this team and to me. I can’t imagine losing you. I know we’ve been through a rough time lately, and I want you to know how much I appreciate all you’ve done and the way you’ve done it. I’d like you to know that I want you to hang in there. I’d also like to know what you want to do next. What do you want to learn? What career goals are you thinking about? What can I do to help you reach those goals? I’d like to know what will keep you here. And I’d like to know what could entice you to leave.” (Kaye & Jordan-Evans, 2010) Every manager probably expects to hear their direct reports want a raise; however, research indicates people want more from work than a paycheck. When managers ask the question “What can we provide you, other than a raise, to increase job satisfaction?” they will likely hear at least one thing employees may view as valuable to their professional growth or job satisfaction. An individual may want more variety in his or her job duties, or may want more responsibility than has been expected previously. Stay interviews are viewed by many employees as an exercise in sincerity. Managers don’t need to have all the answers. Stay interviews are about brainstorming for possibilities and creating a general plan. Solutions can be experimented with, tested, discarded, or fine-tuned until they become effective. (Kaye & Jordan-Evans, 2010) Some managers don’t hold stay interviews because they fear they won’t be able to deliver on some employee requests. This scenario is particularly true during economic downturns with position cuts; however, avoiding conversations about what will retain employees often creates unintended problems. Avoiding employee input and making assumptions may inadvertently encourage staff to seek employment elsewhere. (Kaye & Jordan- Evans, 2010)
  4. 4. :: Exit Interviews Since it’s not possible to completely eliminate undesired turnover, an exit interview is the final opportunity to receive feedback on the employee’s experience and convert their input into efforts to retain other employees. “The purpose of an exit interview is to get the departing employee to divulge why she is leaving and how she feels about her experience with the company,” says Alexandra Levit, the author of Blind Spots: The 10 Business Myths You Can’t Afford to Believe on Your New Path to Success. “Ostensibly, this provides data that senior leadership will use to improve things.” (Smith, 2012) Perhaps the largest challenge with exit surveys is ensuring complete honesty in responses. People do not want to burn bridges with their managers, colleagues, or the company. Employees who leave companies generally don’t share valuable, negative information about the job they’re departing. Many industry leaders have published advice for employees on appropriate responses to exit surveys: “I do think employees should be completely honest in the exit interview,” says Jay Canchola, an HR business partner for Raytheon. “Without the perspective of the departing employee, the opportunity for the workplace to improve is decreased.” (Smith, 2012) Although research suggests honesty may be the best way to learn what employees believe will improve job satisfaction for staff remaining with the company, a common perception exists: “When it comes to exit interviews, the general rule is, if you don’t have anything nice to say, lie;” Alexandra Levit says. “While it may be tempting to use the meeting to spill your guts about the company’s difficult personalities and insufferable policies, don’t give in.” (Smith, 2012) Other experts suggest a balanced approach by suggesting honesty is good but being too critical could tarnish the employee’s reputation within the company and damage chances of getting a reference from them. Open communication must be incorporated into the exit interview process. Honest feedback must be welcome and confidential. Let employees know exit interviews are generally reviewed for overall trends, rather than identifying the individual. Employers can further minimize risk of misleading or overly limiting information by using a properly designed format and presentation for exit interviews. Some employees find it difficult to give honest answers in the face-to-face setting, but feel free to speak their minds in an online exit interview management system. (Carvin & Main, 2012) The most effective exit interviews combine a two-step process by integrating: 1. A self-administered web-based survey. 2. Face-to-face and telephone follow- up meetings. This two-step process gives employees an open forum to freely express themselves, and provides an opportunity to gain clarification of their answers. It is preferable for someone other than the immediate supervisor conduct the exit interview to reduce the likelihood of a biased response. (Drake International) Drake illustrates the ongoing feedback loop associated with proper use of exit interviews and surveys (see Figure 2).
  5. 5. :: Retention: Best Practices Tailor retention efforts to individual staff. Polling an entire population with the same criteria provides consistency, but may not be the appropriate criteria for a subset of employees such as top performers. Generalizations may not provide management with the necessary information. Know what information you want to discover and know from whom you need it. Success will come with establishing and maintaining a conversation with individuals. Learn about personal contributions, enjoyable aspects of the position, and what sort of person would be suited for a role. Do not become defensive of responses that are negative. Consider honest feedback vital. If retention surveys and interviews are conducted correctly, they provide a wealth of information defining opportunities for improvement. The data must be gathered over a period of time, as a single survey or interview will not provide feedback relevant to the entire population of participants. Data should be tracked on a perennial basis to show development of trends. Results should lead to improvement efforts, implementation of changes, and reevaluation of results. Appreciation is the most important tool in all stages of an employee’s tenure. Among the common reasons why employees say they choose to stay with an organization are supportive management and feeling valued. Appreciation is also an important investment that could pay off in employee loyalty. :: Risks Ignored or improperly addressed opportunities for improvement can lead to considerable loss. Investing resources into retention efforts is pointless unless the information is used to develop the employer’s effectiveness with its employees. Managers should listen to employees, compile data, and respond; and what they say is critical. Responses such as “That’s unrealistic” will immediately halt the dialogue and might even propel employees into a job search. Managers need to look for ways find out what could work rather than resorting to reasons why it won’t. (Kaye & Jordan-Evans, 2010) Figure 2 Drake International
  6. 6. :: Conclusion Developing a retention strategy is a necessary course of action to determine organizational needs and methods of addressing those needs. Strategies will evolve over time (see figure 2). The exit interview process can be changed to a retention process by simply replacing references to ‘exit’ with ‘retention’. The retention cycle in a well-built process will function the same way as an exit interview process. Monitor progress over time. Valid comparisons can be drawn between period to period results, and comparing them with turnover levels. Employers can track whether changes yield desired effects by comparing ongoing results with current employee satisfaction through retention surveys. The long-term solution includes creating a culture based on open communication and providing a comfortable method fostering honesty from employees. Talent managers must make improvements to the retention process based on data, and should inform employees of the positive changes that arise from the input of other employees. (Carvin & Main, 2012)
  7. 7. Works Cited Accenture. (2013). Defining Success 2013 Global Research Results. Retrieved from Accenture Web site: http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-IWD-2013-Research- Deck-022013.pdf American Psychological Association. (2012, August 28). Work-Life Fit and Enjoying What They Do Top the List of Reasons Why Employees Stay On the Job, New APA Survey Finds. Retrieved from American Psychological Association: http://www.apa.org/news/press/releases/2012/08/work- life.aspx Bureau of Labor Statistics. (2012, September 18). Employee Tenure Summary. Retrieved from Bureau of Labor Statistics website: www.bls.gov Carvin, B., & Main, K. (2012, September 28). Thing Exit Interivews Are Pointless? You're Missing Out. Retrieved from Talent Management: http://talentmgt.com/articles/view/think-exit-interviews- are-pointless-you-re-missing-out/1 De Groote, M. (2012, September 6). Employee Retention: Surveys look at why people stay in their jobs`. Retrieved from Deseret News: www.deseretnews.com Drake International. (n.d.). Exit Interviewing: What Needs To Change? Retrieved from Drake International Publications: http://www.drakeintl.co.uk/Publications/Exit-Interviewing.pdf Hays. (2012). Retention: Is It Getting Enough Attention? Retrieved from Hay.cn: http://www.hays.cn/prd_consump/groups/hays_common/@cn/@content/documents/digitalas set/hays_088412.pdf Inc. (n.d.). Employee Retention. Retrieved from Inc. Web site: http://www.inc.com/encyclopedia/employee-retention.html Kamenetz, A. (2012, January 12). The Four-Year Career. Retrieved from Fast Company Generation Flux: http://www.fastcompany.com/1802731/four-year-career Kaye, B., & Jordan-Evans, S. (2010, April 3). Prevent Exit Interviews. Retrieved from Talent Management: http://talentmgt.com/articles/view/prevent_exit_interviews/1 Smith, J. (2012, July 31). You Quit Your Job. Now They Demand an Exit Interview. What Do You Say? Retrieved from Forbes Web site: www.forbes.com

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