1. Improving Retention with a Data-Driven Strategy
2018 Retention Report: Trends, Reasons & Recommendations
Danny Nelms
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2. Companies Have the Opportunity to Grow
Talking Points:
The U.S. economy is booming.
We hear it frequently
Companies have the opportunity to grow.
But, they can’t grow because they can’t attract and retain workers or fill open jobs.
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3. Left Their Jobs Last Year
38 Million Employees
Left Their Jobs Last Year
1 in 4 Will Leave their Job this Year
Talking Points:
But, employees are quitting at record rates.
You must improve employee retention and be able to attract new workers to take advantage of growth.
We project that in in 4 employees will leave their jobs voluntarily
(Source: 2018 Retention Report)
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4. 34,000+ Exit Interviews workinstitute.com Talking Points:
We talked with over 34,000 workers who quit last year to uncover the truth and trends in turnover.
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5. 2018 Retention Report Truths & Trends About Turnover workinstitute.com
Talking Points:
We published insights in the 2018 Retention Report, which is a free download on our website.
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6. 50 Different Reasons Why Employees Leave
Talking Points:
We uncovered 50 distinct reasons why people leave.
Grouped these into 10 distinct categories for ease of understanding.
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7. Give You Confidence to Develop a Data-Driven Retention Strategy
Talking Points:
Our goal today is to give you confidence that you can develop a data-driven retention strategy.
And to provide sound data in your organization to compel sr. leaders and operations that retention must be an organizational priority
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8. 1 in 3 Employees will Quit by 2020
42 Million Employee Quits
Talking Points:
And, act now.
Voluntary turnover is only going to get worse.
Again 1 in 4 employees quit in (NEED TO SET THIS UP BEFORE THIS SLIDE)
1 in 3 employees will quit by 2020.
As a side note, we projected 10 million workers would quit in Q and it was actually 13 million
(Source: 2018 Retention Report)
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9. 77% 3 in 4 Reasons for Leaving Are More Preventable More Preventable
Talking Points:
You CAN improve retention.
Our data revealed that employers could have prevented 3 in 4 employees from quitting.
You CAN prevent employees from voluntarily leaving YOUR organization.
(Source: 2018 Retention Report)
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10. Key Take-Aways & The Six Steps
State of the Marketplace
How to Uncover the Truth
Reasons for Leaving
Essential Insights
Case Study Example
Recommendations
Talking Points:
I’ll give you a few key take-aways
State of the Marketplace
Effective Research Methodology
Reasons for Leaving
Additional Insights
Case Study Example
Recommendations
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11. Marketplace
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12. Demand Exceeding Supply
Talking Points:
The demand for workers is increasingly outpacing the supply of available workers.
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13. High Demand for Workers
5.8 Million Open Jobs
Talking Points:
As of the December 2017 there were 5.8 Million open jobs and as of April 208 there are a reported million open jobs a record amount.
(Source: Bureau of Labor Statistics)
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14. Short Supply of Workers
Companies
Must Take Your Workers
Unemployment
Rate
Job Openings
Talking Points:
Second, there is a short supply of workers.
Unemployment has hit historic lows.
Jobs are being added at a record pace.
Quits have been on the rise for the past 8 years
If that’s not enough,, participation in the labor force is declining.
Simply put, there are increasingly less available workers.
So, employers must take your workers.
(Source: BLS 2017)
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(Source: Congressional Budget Office)

15. Employees are In Control
Talking Points:
Employees have options and are not afraid to take them.
Employees are firmly in control in today’s marketplace.
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16. Uncovering the Truth workinstitute.com Talking Points:
It takes an effective research methodology to uncover the truth about turnover in your organization.
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17. Reliable Methodology Gets Accurate Data - 2 Weeks After Departure
- 3rd Party Interviews
- Open-Ended Questions
- Scientifically Validated Questionnaire
- 500,000+ Interviews Since 2000
Talking Points:
The truth as I’m going to present was revealed through an effective methodology.
The key elements of the effective methodology.
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18. Reasons for Leaving workinstitute.com Talking Points:
- Review of more preventable reasons for leaving.
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19. Care about What they Do and Where They’re Going
Employees
Care about What they Do and Where They’re Going
Career Development
21%
Type of Work
33.0%
Lack of Growth & Development Opportunity
21.5%
Returning to School
18.6%
No Advancement or Promotional Opportunity
17.2%
Job Security
7.6%
General Career Reason
2.2%
Talking Points:
Employees care about what they do and where they are going.
But, there is more to career development than getting a promotion.
More than 80% of career development reasons were NOT related to a promotion.
Most that mentioned lack of growth and development did NOT mean a promotion.
OTHER:
Lack of Growth and Development Opportunity + 125% since 2010
No Advancement or Promotional Opportunity - 40% since 2010
I left when I received my CDL to become a truck driver
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20. Employees will leave for more favorable schedules
Work-Life Balance
13%
Schedule
67.6%
Commute
22.2%
Schedule Flexibility
5.1%
Travel
5.0%
Employees will leave for more favorable schedules
#2 Category
Talking Points:
More Favorable Schedules Attract Workers to Other Jobs
The rise of the service economy could be impacting schedule issues as service jobs require demanding availability.
Restaurant Schedule
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21. Do Not Tolerate Poor Managers
Manager Behavior
11%
Unprofessionalism
35.1%
Lack of Support
17.6%
Poor Employee Treatment
17.2%
General Behavior
11.8%
Poor Communication
7.7%
Lack of Manager Competence
7.1%
Manager Fairness
1.8%
Employees
Do Not Tolerate Poor Managers
#3 Category
Talking Points:
Employees Do Not Tolerate Poor Managers
Manager unprofessionalism has become the number one issue related to manager behavior.
Important as manager behavior could impact other areas of work.
My supervisor was using inappropriate language and being abusive
May manager would often yell at employees in public spaces
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22. Employees Leave to Take Better Care of Themselves and Their Families
Well-Being 9%
General Personal
33.4%
Personal Health
32.3%
Caregiver Issues
29.4%
Pregnancy
4.4%
Family Issues
0.5%
Employees Leave to Take Better Care of Themselves and Their Families
#4 Category
Talking Points:
Employees Leave to Take Better Care of Themselves and Their Families
Life happens, be flexible when you can or let good employees know that they are welcome back!
I left to work days until my deployment. I needed to spend time with my family.
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23. Employees Can Leave for More Pay
Compensation & Benefits 9%
Compensation
87.3%
Benefits
12.1%
Employees Can Leave for More Pay
Category #5
Talking Points:
Finally we come to compensation.
Employees Can Leave for More Pay
Employees can leave for more money, but they only leave less than 9% of the time for money.
I had been at the company for 8 years and never received a raise
I left because I felt I was significantly underpaid in my position
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24. Employees Want Reasonable Workloads and Less Stress
Job Characteristics 8%
General Job Characteristics
39.4%
Task or Role Overload
31.1%
Limited Resources
14.7%
Poorly Trained
11.2%
Dissatisfied with Work
1.1%
Lack of Empowerment
2.5%
Employees Want Reasonable Workloads and Less Stress
Category #6
Talking Points:
Employees Want Reasonable Workloads and Less Stress
The job characteristics are a reason employees leave.
Stress, workload and resources are key reasons why employees cite the job as the reason for leaving.
They also bring up training especially if they leave early in their tenure.
I went back to a former employer because I had more autonomy in my job
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25. Co-Workers and Culture Must Be a Fit
Work Environment 6%
Problematic Co-Workers
36%
Culture-Employee Not a Fit
34%
Problem with Mission or Values
10%
Unsafe Environment 7%
Hostile Atmosphere or Organizational Crisis
Environment Other 4%
Poor Facilities 3%
Co-Workers and Culture Must Be a Fit
Category #7 Talking Points:
Co-Workers and Culture Must Be a Fit
Culture and co-workers affect employees willingness to stay with your company.
You cannot ignore co-worker conflict.
Employees expect managers to quickly address / resolve team problems.
I had a problem with team members that I made management aware of and nothing was ever done about it.
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26. 77% Managers are a Key to Retention
More Preventable – Manager Influenced
More Preventable – Other
Less Preventable
Talking Points:
45% of the preventable reasons are highly influenced by the manager
(Source: 2018 Retention Report)
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27. Essential Insights workinstitute.com Talking Points:
Additional Insights or truths uncovered in the 2018 Retention Report.
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28. Essential Insights First-Year Turnover Hits 7-Year High Note
Generational differences create a lot of buzz, but career stage issues create turnover
Employers gamble on benchmarks & best practices
Employees Increasingly Reveal
Employers’ Ethical Blind Spots
Talking Points:
First year turnover has increased from 34% in 2016 to 40% in (18% increase)
The reasons for leaving are more related to age than generation. Younger workers and older workers continue to behave as they have for years. There are difference in communication style – but do not get that confused with reasons for leaving.
We all try to solve problems with best practices, but best practices don’t always work as reasons for leaving are vastly different from one company to the next.
Reporting of unethical or non-compliant behavior has increased from 1% in 2010 to 6% in 2017
Turnover costs will only get more expensive as demand exceeds supply
Turnover Costs will Increase 19% by 2020
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29. Developing a Retention Strategy
Talking Points:
I’ll give you a few key take-aways
State of the Marketplace
Effective Research Methodology
Reasons for Leaving
Additional Insights
Case Study Example
Recommendations
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30. The Predictive Power of Exit Studies
AT-RISK
CURRENT EMPLOYEES
FORMER
EMPLOYEES
CURRENT
EMPLOYEES
Talking Points:
What we learned:
There is an EmployER Shortfall.
More than three-fourths of turnover is caused by reasons that are preventable.
Exit interviews are powerful.
Perceptions of former employees are representative of what current employees are thinking.
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31. Case Study workinstitute.com Talking Points:
I’ll give you a few key take-aways
State of the Marketplace
Effective Research Methodology
Reasons for Leaving
Additional Insights
Case Study Example
Recommendations
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32. Reduced 1st Year Nurse Turnover by +34% workinstitute.com
Talking Points:
Hospital system in and around Fort Wayne, IN
11,000 employees
First year nurse turnover was at 29%
The cost of turnover for a system this size for first year nurse turnover is about $5 million
Managers argued that money was the issue
Interviews revealed that pay was not the number one reason employees left.
- Leaders learned that expectations for the job were the top drivers of turnover.
- Management learned that their onboarding processes could be improved.
- Data analysis uncovered regions and business units that needed additional assistance.
- Leaders were able to focus efforts on accurate and specific areas that achieved results.
Over three year period, the interview process and onboarding process was overhauled and specific departments we addressed with their specific concerns. First year Nurse turnover was reduced by 34% resulting in a $1.7million savings.
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33. Recommendations workinstitute.com Talking Points:
I’ll give you a few key take-aways
State of the Marketplace
Effective Research Methodology
Reasons for Leaving
Additional Insights
Case Study Example
Recommendations
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34. Recommendations Seek Expert Guidance Build the Business Case Ask
Understand
Recommendations
Plan and Implement
Evaluate
Seek Expert Guidance
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35. workinstitute.com