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What is your Employee Retention Plan ?

Anyone running a business today knows how difficult it is to attract and retain their people. The demographics of an aging population is a significant threat, and one that will only get worse in the future as competitors fight over the available labour pool. An organization faces many hard costs with their recruiting and selection process; advertising, executive recruiters, placement agencies, screening and testing, and management time spent in interviews. Then, add in some of the hidden costs like the initial reduced productivity of new employees, the potential erosion in customer satisfaction, and increased errors, and many organizations find out that their real “all-in” cost of replacing an employee could be as much as 35% to 45% of an individual's annual income.



While there are no quick or easy solutions to reducing employee turnover the first step is for owners and managers to understand that turnover isn’t an event, it’s a process with discernable stages that can be managed. The first stage in the turnover process is a turning point. This is when something happens that gives an employee his or her first inkling that they may have made a mistake signing on with your organization. Some typical turning points include: * A petty or unreasonable show of authority by a manager

* An employee is asked to do something unethical, or they find out the company is unethical * They are made to work with unsafe equipment * Unreasonable or unexpected demands are made on personal or family time * The job parameters aren’t as promised * Their pay isn't as promised or their incentive/bonus plan is adjusted retroactively * Discrimination or sexual harassment * Employee gets a new boss they don't like * There is a lack of appreciation by the supervisor or organization

Turning points cause employees to begin to look at the organization with a different perspective, one that has them focus on what they perceive is ‘wrong’ with the company. Once on this path, employees become increasingly disengaged from the organization,

and if the situation is left unchecked, will eventually decide to leave. And, once an employee becomes so disengaged that they decide to leave it is almost impossible to get them back on board.


So, it’s critical to recognize disengagement signs early.

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