Presentation on theme: "Interest in Staff Retention"— Presentation transcript:
1 Interest in Staff Retention Depending on tightness or looseness of labour marketsIn recent years topic has moved up the HRM agenda
2 Perspectives on Staff Retention Tracking turnover rates over organisational policy aimed at improving retention as a wholeRetaining high performing, key players – use of more sophisticated retention practices
3 Turnover Rates & Trends Mismatch between rhetoric and job tenure and realityAre there jobs for life?Turnover rises when economy is strong and jobs plentiful, during recessions turnover falls
4 Job Tenure in UK Since 1975 Table 8.1 Job tenure in the UK since 1975 Source: Table compiled from data in P. Gregg and J. Wadsworth (1999) ‘Job tenure, 1975–98’, in P. Gregg and J. Wadsworth (eds) The State of Working Britain. Manchester: Manchester University Press, p. 115.
5 Job tenure in the UK Table 8.2 Job tenure in the UK Source: Labour Market Trends (2001), ‘Length of time continuously employed by occupation and industry’, Labour Market Trends, February.
6 In Favour of Staff Turnover Rejuvenation of organisation with fresh bloodNew ideas and experiences brought into the organisationHelps managers keep control over labour costsRedundancy bills are lowerFunctional rather than dysfunctional
7 Against Staff Turnover Expensive to replace staffLost resourceSymptomatic of poor management
8 Turnover Analysis & Costing Techniques Exit interviews – but will those leaving give the real reasons for leaving?Analysis of turnover rates between different departments and different job groupsAttitude surveys
9 Reasons For Staff Turnover Outside factorsFunctional turnoverPush FactorsPull Factors
10 Push & Pull FactorsPush – dissatisfaction with work or the organisation leading to unwanted turnoverPull – attraction of rival employers, e.g. better salary
11 Common Reasons Research by Taylor 2002 found a mix of factors Push factors more prevalent than pull factorsAlternative employment sought when employees no longer enjoy working for current employerFew people leave for financial reasons
12 Staff Retention Strategies PayManaging expectationsInductionFamily friendly HR practicesTraining and developmentImproving quality of line management
13 Pay (1 of 2)Debate over extent to which raising pay levels reduces staff turnoverSome evidence to show that employers who offer the most attractive reward packages have lower attrition ratesAlso evidence that pay plays a satisfier role, but does not usually have an effect when other factors are pushing someone to quit
14 Pay (2 of 2) Pay is a hygiene factor rather than a motivator An approach that can be matched by competitorsProvided pay levels are not significantly lower than competitors other factors will usually impact more
15 Enhanced Benefits Packages Enhanced benefits if appreciated by staff are more likely to have a positive effect on staff retentionStaff discountsHoliday entitlementsPrivate healthcare
16 Managing Expectations Benefit of employees gaining a realistic job preview before starting their jobJob dissatisfaction is having one’s high hopes of new employment dashed by unmet expectationsWork experience before starting work can help establish realistic expectations of work
17 Induction Effective and timely Helps starters to adjust emotionally to new roleUnderstand where things are, and who people areProvides a forum for information givingSuitable occasion to discuss health and safety regs, organisational policies etc.
18 Minimum Rights (1 of 2)26 weeks maternity leave for all employees with more than 6 months serviceAn additional 26 weeks unpaid maternity leave for employees with over 12 months serviceReasonable time off for pregnant employees to attend ante natal classesSpecific health and safety measures for pregnant workers or those who have recently given birth
19 Minimum Rights (2 of 2) 4 week’s paid holiday each year A total of 3 months unpaid parental leave for parents on the birth or adoption of a childReasonable unpaid time off for employees to deal with family emergenciesConsideration of reasonable requests by parents of young children to work flexibly2 weeks paid parental leave for new fathers
20 Training & Development Training opportunities enhance commitment to an employer making them less likely to leaveTraining makes people more employable and will leave to develop careers
21 Improving Effectiveness of Supervisors Select people for roles following an assessment of their supervisory capabilitiesProvide training in effective supervisionAppraise line managers and their skills
22 Summary (1 of 2)Staff turnover tends to decrease in recession and increase in economic boomsJob tenure has not reduced substantially over the last 30 yearsRetention rates vary considerably between industries and regions
23 Summary (2 of 2) Too great a rate of staff turnover is damaging Necessary to analyse the cause of turnover and calculate costsFlexible benefits, better induction, etc can improve retention