Half day training event held in Toronto.

1. Maximizing retention and
minimizing attrition
by Toronto Training and HR
April 2012

2. 3-4 Introduction to Toronto Training and HR
5-7 Measures
Contents 8-9
10-12
13-14
Costing labour turnover
Improving the experience of new starters
The employee turnover decision process
15-16 Areas to consider that can reduce attrition
17-18 Enriching a job
19-20 Why do people leave?
21-22 Developing an employee retention
strategy
23-24 What plays an significant role in employee
retention?
25-31 Questions to ask
32-33 Levels of attachment
34-35 Why focus on reducing labour turnover?
36-37 Primary paths to turnover
38-39 Additional predictors of turnover
40-41 Effective practices to boost retention
42-43 Using pay as a tool
44-45 Broad-based strategies
46-47 Doing the groundwork
48-49 Dealing with some common problems
50-51 Avoiding terminations
52-55 Case studies
56-57 Conclusion and questions

3. Introduction
Page 3

4. Introduction to Toronto Training
and HR
• Toronto Training and HR is a specialist training and human
resources consultancy headed by Timothy Holden
• 10 years in banking
• 10 years in training and human resources
• Freelance practitioner since 2006
• The core services provided by Toronto Training and HR are:
- Training event design
- Training event delivery
- Reducing costs
- Saving time
- Improving employee engagement & morale
- Services for job seekers
Page 4

5. Measures
Page 5

6. Measures 1 of 2
Employee turnover
Page 6

7. Measures 2 of 2
Retention
Page 7

8. Costing labour turnover
Page 8

9. Costing labour turnover
MAJOR CATEGORIES OF COSTS
Administration of the resignation
Recruitment and selection costs, including
administration
Covering the post during the period in which there
is a vacancy
Induction training for the new employee
Page 9

10. Improving the experience
of new starters
Page 10

11. Improving the experience of
new starters 1 of 2
Regular updating of induction procedures
Direct consultation with new recruits about how to
improve induction
Keeping improvement of induction on the
organizational agenda
Making use of several communication methods
Including job-related training as part of the
orientation program
Page 11

12. Improving the experience of
new starters 2 of 2
Producing an accompanying ‘welcome’ resource
pack
Involving senior managers in orientation sessions
Covering informal rules and norms as well as the
formal ones
Page 12

13. The employee turnover
decision process
Page 13

14. The employee turnover decision
process
Evaluate existing job
Experience job dissatisfaction
Think of quitting
Evaluate expected utility of search for a new job
and the cost of quitting
Decide to search for alternatives
Evaluate alternatives
Compare best alternative with present job
Decide whether to stay or quit
Quit
Page 14

15. Areas to consider that can
reduce attrition
Page 15

16. Areas to consider that can
reduce attrition
Realistic job previews
Job enrichment
Workspace characteristics
Induction practices
Leader-member exchange
Employee selection
Reward practices
Demographic diversity
Managing inter-role conflict
Page 16

17. Enriching a job
Page 17

18. Enriching a job
SIGNIFICANT PERCEPTIONS OF JOBS BY JOB-
HOLDERS:
Opportunities for self and career development
Job is meaningful or significant
Variety of skills are used
High degree of personal responsibility
People can work with a degree of autonomy
Positive feedback on performance is given
Page 18

19. Why do people leave?
Page 19

20. Why do people leave?
Increase job satisfaction
Attain better pay and benefits
Learn new things
Page 20

21. Developing an employee
retention strategy
Page 21

22. Developing an employee
retention strategy
Why are employees are leaving?
What is the impact that employee turnover has on
the organization, including the associated costs?
Page 22

23. What plays a significant
role in employee
retention?
Page 23

24. What plays a significant role in
employee retention ?
Job previews
Make line managers accountable
Career development and progression
Consult employees
Be flexible
Avoid the development of a culture of
presenteeism
Job security
Treat people fairly
Defend your organization
Page 24

25. Questions to ask
Page 25

26. Questions to ask 1 of 6
If currently employed, how much effort would you
be willing to expend in looking for a new job?
Page 26

27. Questions to ask 2 of 6
ANSWERS
None. I’m happy here
Maybe 20% effort – If a friend recommended a
promising position to me, I’d go for the interview
Perhaps 40% effort – I’d poke around the job
boards, maybe send in a few resumes
At least 60% effort – I’d spend every spare second
looking for a new job
Easily 80% – I have to get out of here and will do
whatever it takes
Page 27

28. Questions to ask 3 of 6
WHAT CAN WE LEARN FROM THE QUESTION?
Level of employee engagement on the job right
now
Level of employee distraction from the task at
hand
Just how broken the company culture has
become
Page 28

29. Questions to ask 4 of 6
Rank the following in terms of importance to
you:
Learning opportunities – I want to constantly be
learning or doing something new
Growth opportunities – I want to be able to move
up in my career
Meaningful work – I want to know that I’m
contributing to something greater
Page 29

30. Questions to ask 5 of 6
Rank the following in terms of importance to
you:
Frequent recognition and feedback – I want to
know when I’m doing well and when I need to
improve
A good relationship with my manager – I want to
be confident and unafraid at work
Compensation and benefits – I need to know that
I’m paid fairly for my work
Page 30

31. Questions to ask 6 of 6
WHAT CAN HR LEARN FROM THIS?
In aggregate, where the organization may need to
invest more budget
On an individual basis, what would be most
engaging for the employee
An understanding of where the organization may
not be able to meet an employee’s needs, paving
the way for more effective talent management and
honest conversations
Page 31

32. Levels of attachment
Page 32

33. Levels of attachment
Vocational
Operational
Relational
Transactional
Page 33

34. Why focus on reducing
labour turnover?
Page 34

35. Why focus on reducing labour
turnover?
It is costly
It affects the performance of the organization
It may become increasingly difficult to manage as
the availability of skilled employees decreases in
the future
Page 35

36. Primary paths to turnover
Page 36

37. Primary paths to turnover
Employee dissatisfaction
Better alternatives
Following a plan
Leaving without a plan
Page 37

38. Additional predictors of
turnover
Page 38

39. Additional predictors of turnover
Organizational commitment and job satisfaction
Quality of the employee-supervisor relationship
Role clarity
Job design
Workgroup cohesion
Page 39

40. Effective practices to
boost retention
Page 40

41. Effective practices to boost
retention
Recruitment
Selection
Socialization
Training and development
Compensation and benefits
Supervision
Employee engagement
Page 41

42. Using pay as a tool
Page 42

43. Using pay as a tool
OPTION A
Lead the market with respect to compensation and
rewards
OPTION B
Tailor rewards to individual needs in a person-
based pay structure
OPTION C
Explicitly link rewards to retention
Page 43

44. Broad-based strategies
Page 44

45. Broad-based strategies
Retention research
Best practice
Benchmarking surveys
Page 45

46. Doing the groundwork
Page 46

47. Doing the groundwork
Determine whether turnover is a problem
Determine the best way to proceed
Implementing the retention plan
Evaluating the results
Page 47

48. Dealing with some
common problems
Page 48

49. Dealing with some common
problems
Lack of top management support
Perception of the program as time-consuming
‘busywork’
Page 49

50. Avoiding terminations
Page 50

51. Avoiding terminations
Step in early
If after 18 months issues start to arise, tackle
them through mediation or counselling
Undertake performance management
Page 51

52. Case study A
Page 52

53. Case study A
Page 53

54. Case study B
Page 54

55. Case study B
Page 55

56. Conclusion and questions
Page 56

57. Conclusion and questions
Summary
Videos
Questions
Page 57