DOCSLIB.ORG

How to Turn Virtual Onboarding Into Your Most Powerful Weapon Against Turnover INTRODUCTION

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
How to Turn Virtual Onboarding Into Your Most Powerful Weapon Against Turnover INTRODUCTION How to Turn Virtual Onboarding Into Your Most Powerful Weapon Against Turnover INTRODUCTION COVID-19 means we’re perched on a cliff-edge of plummeting employee retention – and the winners will be those who evolve their onboarding fastest. Your people are the heart of your workplace, And now we’re at an inflection point for propelling the business onwards and upwards. onboarding. Every important initiative, priority and project hinges on the employees who power them. The pandemic has been a watershed moment – and like any watershed moment, there are It’s no surprise, then, that organizations opportunities and challenges; risks and worldwide continue to grapple with the rewards; winners and losers. perpetual issue of employee retention. • How do we retain our best people Keep reading. This guide will shine a light on long-term? the winning path, by: • Delving into the complexities of turnover and • How do we avoid the ever-increasing costs examining possible root causes of high turnover? • Exploring the devastating impact of COVID on And more important… retention and engagement • Laying out a framework to turn onboarding • How does the organization build and into your biggest retention tool maintain the workforce needed to compete, in an increasingly challenging landscape? Retaining your top performers is a major priority – but it’s also an increasingly huge challenge, especially in some industries. And that challenge has never been bigger, in a post-COVID world. If organizations don’t take Research suggests up to fast action the pandemic risks turning into a retention crisis that’ll hurt progress for years to of new hires leave come. % in the first 45 days The fact is, turnover rates have been increasing for a decade1 – and that trend is of employement poised to skyrocket. 20 Employees leave for a tangle of reasons, and the complexities of every industry and workplace make the turnover problem hard to unravel and address. But one factor has been emerging for years as crucial to keeping your people: onboarding. 1 Nintex, Definitive guide to America’s most broken processes, 2018. 2 ARE YOUR BEST PEOPLE STICKING AROUND? Voluntary turnover has been increasing for Studies consistently prove high turnover links years. And turnover costs have almost doubled back to concrete business outcomes, both in in the past decade1. the short- and long-term. Ultimately, the most successful businesses hold onto their best people, keeping voluntary turnover low. 2,000,000/year Voluntary turnover in the US has increased And that’s even more true today, with COVID by around 2-million employees annually for intensifying competitive pressure, escalating the last four years2 challenges and increasing risk. 42,000,000 For example, Deloitte say the epidemic will hurt In the US alone, 42-million people voluntarily sales volume, cash flow, customer/client left their jobs in 20193 service, supply chain management and overall business management. Plus the obvious pres- Too-high voluntary turnover hurts your sures around organizing remote work and organization’s bottom line. It’s that simple. keeping employees safe.6 It’s also bad for business beyond the obvious costs of finding, hiring and training replacement staff. The total cost of losing an employee Improving ranges from 90% to 200% employee of the employee's annual salary4 retention and getting a handle The total cost of losing on organizational an employee is estimated to range from churn has never mattered more. 90 200% of the employee's annual salary5 1 Work Institute, 2019 Retention Report, 2019. 2 Work Institute, 2019 Retention Report, 2020 3 Work Institute, 2019 Retention Report, 2020 4 Enboarder, What is the cost of employee turnover for your business?, 2018. 5 Enboarder: Saying Goodbye: What is the Cost of Employee Turnover for your Business? 6 Deloitte, How to reduce the pandemic impact on employees: A guide for company leaders, 2020. 3 WHY ARE YOU LOSING GREAT PEOPLE? While some turnover is a natural and desirable Within every industry, there are specific part of a healthy organization, too-high turnover drivers that other industries mightn’t turnover is a red flag. It begs the question: face. For example: WHY? • Retail has a reputation as a high-churn To answer that question, you need to look industry. The pay is typically low and small closely at industry trends as well as universal hourly increases can attract job-hoppers. Retail turnover drivers. is often seen as a “first job” without longer-term career prospects. Plus managers are typically promoted from sales positions and may not be great people managers, driving employees of voluntary turnover away. is preventable1 78% • Technology is a highly competitive industry, with high demand and huge salary increases on offer for in-demand talent who move jobs. This environment typically creates a buoyant job market where the best people are “eager to Are external trends to blame? jump on new opportunities […] as employers and offers get more competitive”.3 Some industries notoriously suffer from higher turnover than others. LinkedIn • Media and Entertainment organizations are analysis puts the worldwide average staff often project-based, which can often see staff turnover rate at 10.9% and identifies coming and going as projects start or end. And the pandemic has delayed or derailed many several industries battling above average 2 projects across the sector, which is likely to turnover. For example: impact employment figures. Understanding the industry trends you’re % Technology subject to helps you formulate targeted 13.2 retention strategies that overcome them. Like, offering tenure-based incentives for retail workers or offering more lateral opportunities. % But overcoming industry-based drivers of Retail turnover isn’t the full story. 13.0 % Media & 11.4 entertainment 1 Work Institute, 2020 Retention Report, 2020. 2 LinkedIn, These three industries have the highest talent turnover rates, 2018. 3 LinkedIn, These three industries have the highest talent turnover rates, 2018. 4 Or are internal factors pushing people away? Once you’ve analyzed possible industry But the biggest group of factors relate drivers, it’s time to hold up a mirror to your directly to employee engagement. people practices. There are a number of universal factors that drive turnover across • Is your work environment positive? every industry, organization and geography. • Do you look after your people’s wellbeing? • Are your managers effective? • Do your facilitate work-life balance? According to Work Institute, • Do you offer growth opportunities? reasons for leaving fall into • Is the job challenging and fulfilling? 1 ten categories: Provided you’re doing the functional things right – like not dramatically underpaying - Work environment – 6% of turnover people or miscommunicating your roles - Involuntary – 6% of turnover during recruitment – that means your - Retirement – 6% of turnover biggest driver of employee turnover is - Compensation and Benefits – 9% of turnover employee engagement. - Relocation – 9% of turnover - Well-being – 10% of turnover - Job characteristics – 10% of turnover - Manager behaviour – 12% of turnover - Work-life balance – 12% of turnover - Career development – 20% of turnover Your biggest driver Three of those reasons are unavoidable (or the best outcome for the situation) – of employee involuntary, retirement and relocation. turnover is employee Then three raise immediate questions about engagement. your hiring practices – work environment, compensation and benefits, and job characteristics. • Was the employee the right hire initially? • Was the cultural and environment fit right? • Did your recruiters manage expectations correctly? • Are you paying in-line with the market? 1 Work Institute, 2020 Retention Report, 2020. 5 VIEWING RETENTION THROUGH THE LENS OF ENGAGEMENT Time and again, research proves engaged employees are more likely to stay with their employer. 24% In organizations with high employee turnover, highly engaged business units achieve 24% lower turnover.1 59% In organizations with low employee turnover, highly engaged business units achieve 59% lower turnover.2 Why wouldn’t they? Engaged employees are happy, fulfilled, motivated employees who feel valued, challenged and inspired. That’s why engagement doesn’t only impact retention but also absenteeism, productivity, shrinkage, safety, customer metrics and – employee ultimately – .3 profitability employee retention “Engaged employees are highly involved in and engagement enthusiastic about their work and workplace. They are psychological ‘owners,’ drive performance and innovation, and move the organization forward.” Gallup, State of the Global Workplace Report4 The problem is, global engagement levels have been abysmal for decades – and despite HR leaders’ best efforts, there’s been little overall progress. So what’s going on? 1 Gallup: State of the Global Workplace Report 2017 2 Gallup: State of the Global Workplace Report 2017 3 Gallup: State of the Global Workplace Report 2017 4 Gallup: State of the Global Workplace Report 2017 6 IT’S SINK OR SWIM FOR ENGAGEMENT We’ve been knee-deep in a workplace revolution for the past few years – and now “Organizations and institutions post-COVID we’re up to our necks. have often been slow to adapt to the rapid changes produced by the Converging trends mean our workplaces spread of information technology, are fundamentally changing – and most the globalization of markets for organizations simply haven’t kept up. products and labor, the rise of the Trends like: gig economy, and younger workers’ • Sweeping digitization changing how we unique expectations.” work – and how we want and expect to 1 work, with the speed, ease and convenience -Gallup’s State of the Global Workplace Report of consumer experiences. • Rapid globalization changing how teams collaborate, creating new pressures and the Our workforces have been teetering on need for new boundaries. the edge of an engagement cliff-edge for years. And that’s before you add COVID • The snowballing gig economy changing into the mix. employees’ perceptions of work, and their expectations from employers. 1 Gallup, State of the Global Workplace Report 2017, 2017.
Load more

Recommended publications
  • “Performance and Retention” Through Employee Engagement
    International Journal of Scientific and Research Publications, Volume 5, Issue 8, August 2015 1 ISSN 2250-3153 Enhancing “Performance and Retention” through Employee Engagement B.SARATH SIMHA, M.B.A, (M.PHIL) *, B.VISHNU VARDHAN., M.COM (M.PHIL) ** * Asst.Professor, School of Management Studies, Qis College of Engg. & Technology: Ongole ** Research Scoller, Dept. Of Commerce&Business Admistration, Acharya Nagarjuna University, Guntur Abstract- Employee engagement is integral to driving successful techniques of operation. As sophistication of technologies organizations. Employee engagement is a vast construct that continues to evolve, they pose more challenges for managers touches almost all parts of human resource management. because organizations will have to need more number of ‘Employee engagement is the emotional commitment the employees with increased technical and professional skills. These employee has to the organization and its goals’. Engaged knowledge workers cannot be managed with old styles of employees are emotionally attached to their organization and management. They expect operational autonomy, job satisfaction highly involved in their job with a great enthusiasm for the and status. It is because of these facts that attention of managers success of their employer, going extra mile beyond the is shifting towards employees’ side of organizations. At that time employment contractual agreement. The paper focuses on how concepts like employee commitment and Organizational employee engagement is extracting the best of employee and Citizenship Behavior (OCB) started to appear on the ground that retain as long as possible. Employee engagement has a direct efficiency and productivity lie within the employees’ ability and impact on the Employee’s productivity. The global recession has commitment.
    [Show full text]
  • Mapping Success in Employee Volunteering
    Learning, Practice, Results. In Good Company Mapping Success in Employee Volunteering The Drivers of Effectiveness for Employee Volunteering and Giving Programs and Fortune 500 Performance To help community involvement professionals steer their volunteer programs toward high community and company impact, this report presents an absolute and a relative benchmark of effectiveness for employee volunteering. The absolute benchmark consists of the Drivers of Effectiveness for Employee Volunteering and Giving Programs composed of the six practices or drivers that, according to existing research, generate community and company impact. The relative benchmark consists of findings from a survey of over 200 Fortune 500 companies that measured collective compliance with the drivers and identified best practices from high performers. On the cover: Lockheed Martin’s “Engineers in the Classroom” program aims to inspire students to think of careers in engineering as compelling, rewarding and even fun. Learning, Practice, Results. In Good Company By Bea Boccalandro Contents Faculty Member Message from the managing director i Executive summary Boston College Center for 1 Introduction Corporate Citizenship 1 Purpose 1 Author and partners 1 Definition of the Drivers of Effectiveness This project sponsored by for Employee Volunteering and Giving Programs (EVGPs) 1 Methodology behind the Drivers of Effectiveness for EVGPs 4 Methodology behind the Fortune 500 survey 7 Drivers of Effectiveness for EVGPs and Fortune 500 performance 7 An overview of Fortune 500 performance 10 Driver 1: Cause-effective Configuration 15 Driver 2: Strategic Business Positioning 21 Driver 3: Sufficient Investment 24 Driver 4: Culture of Engagement 29 Driver 5: Strong Participation 32 Driver 6: Actionable Evaluation 37 Conclusions 39 Project advisers 40 References © 2009 The Boston College Center for Corporate Citizenship.
    [Show full text]
  • 2019 Retention Report: Trends, Reasons and a Call to Action
    2019 RETENTION REPORT Trends, Reasons & A Call to Action Insights from over 250,000 Employee Interviews workinstitute.com/retentionreport2019 1-888-750-9008 Companies can and must take the guesswork out of engagement and retention. The way you inform a situation directs how you respond to the situation. Lack of data fails to inform. Incomplete or inaccurate data misinforms. Correct data informs. ©2019 Work Institute 2019 RETENTION REPORT TABLE OF CONTENTS 4 EXECUTIVE SUMMARY 26 INCREASING EMPLOYEE RETENTION REQUIRES A 5 DEAR EMPLOYERS STRATEGIC APPROACH 6 STATE OF THE WORKFORCE 29 EMPLOYERS MUST ACT • Employers Must Invest in Retention • Voluntary Turnover Escalates • About Career Development • Competition for Workers Intensifies • About Manager Behavior • Voluntary Turnover Costs Exceed $600 Billion • About Job Characteristics • Where Should Employers Go from Here? • About Environment • Employees are in Control 12 TURNOVER CATEGORIES 33 ABOUT WORK INSTITUTE • Six-Year Trends in Turnover • Top 10 Categories for Leaving in 2018 METHODS & LIMITATIONS • Career Development 34 • Work-Life Balance • Manager Behavior • Compensation & Benefits 35 ABOUT THE AUTHORS • Well-Being • Job Characteristics • Work Environment • Turnover and Sex Differences • Turnover and Generational Differences • Turnover and Tenure • Turnover and First Year Employment 3 2019 RETENTION REPORT | INTRODUCTION EXECUTIVE SUMMARY The Work Institute conducts employee interviews in multiple The total cost of employee turnover for businesses is high, industries, categorizes reasons why employees choose even by conservative estimates, and it takes a toll on company to stay or quit, recommends remedial actions, and helps profits and organizational performance. Employers are at risk organizations improve retention and engagement to reduce of increased turnover costs in a job market where employees human capital expense.
    [Show full text]
  • Employee Retention Strategies That Work for Small to Mid-Sized Businesses (Smbs)
    Employee Retention Strategies That Work for Small to Mid-sized Businesses (SMBs) 1 Finding good people is getting harder and especially for SMBs. According to LinkedIn’s 2016 Global Recruiting Trends Report, INTRODUCTION 41% of respondents say they will remain at their company for less than 2 years while 37% say they will stay for 3+ years and 22% don’t know how much longer they’ll stay at the company. You’ve invested a lot of time and money recruiting and hiring the right talent for your small to mid-sized businesses (SMB). The last thing you want to do is let all that hard work go down the drain when an employee Employee retention is ranked as the second most important business leaves for another opportunity. priority, right after recruiting highly skilled talent. In LinkedIn’s Why & How People Change Jobs study, we learned that the Turnover costs: top three reasons people leave a position are to 1) advance their careers, 2) Some studies (such as SHMR) predict that every time a business tackle meaningful work, and 3) cash a bigger paycheck. We also learned that replaces a salaried employee, it costs 6 to 9 months’ salary on once employees consider leaving, 42% said they might have stayed if their average. For a manager making $40,000 a year, that’s $20,000 to employer had done something. $30,000 in recruiting and training expenses. Instead of letting talent walk out the door, do “something” by implementing a retention program that becomes part of your company culture. This guide will help inspire an effective retention program at your SMB.
    [Show full text]
  • 2018 Employee Retention Report Introduction 3 Introduction
    EMPLOYEE RETENTION REPORT The real story behind why your employees are leaving for good # 2018 ANNUAL RETENTION REPORT TABLE OF CONTENTS Introduction 03 Great Managers Fuel Employee Loyalty 05 Recognition Is a Matter of Priority 07 Culture Eats Compensation For Breakfast 09 Employees Crave Work-Life Balance 11 Growth Opportunities Are Talent-Magnets 12 Launching a Successful Employee Retention Strategy 14 About TINYpulse 16 # 2018 ANNUAL RETENTION REPORT 2018 EMPLOYEE RETENTION REPORT INTRODUCTION 3 INTRODUCTION THE WAR FOR TALENT IS GROWING FIERCER BY THE DAY. What you will learn » The top five factors that correlate to employee turnover and fascinating statistics collected across hundreds of organizations that use the TINYpulse platform. » Actionable advice from leadership experts that any organization can follow to combat turnover problems or augment current growth. » Our five-step approach to creating an effective employee retention strategy. We’ll reveal how The U.S economy saw a steady rise in 2018, with you can identify the top attrition drivers in your unemployment dropping to just 3.7 percent— the own workforce and launch an effective plan of lowest it’s been since 1969. In today’s job market, action. power lies in the hands of employees and leaders must work harder than ever to retain their workforce. A summary of our key findings To uncover what factors matter most to employees The purpose of this report when deciding to leave, we analyzed survey results A study by Employee Benefits News states that the from over 25,000 employees across the world from average cost of losing an employee is a staggering January to October 2018.
    [Show full text]
  • The Impact of Recruitment, Employee Retention and Labor Relations to Employee Performance on Batik Industry in Solo City, Indonesia
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Scientific Repository International Journal of Business and Society, Vol. 17 No. 2, 2016, 375-390 THE IMPACT OF RECRUITMENT, EMPLOYEE RETENTION AND LABOR RELATIONS TO EMPLOYEE PERFORMANCE ON BATIK INDUSTRY IN SOLO CITY, INDONESIA Eddy Madiono Sutanto♣ Petra Christian University Milly Kurniawan Petra Christian University ABSTRACT The good recruitment program can provide a positive influence to increasing employee commitment, productivity and the quality of work including performance. The relationship of employee retention on performance is exceedingly complex. There is evidence that performance can decrease if the employee retention is bad and there is a possibility of stagnation if employee turnover is too dejected. Besides recruitment and employee retention, the labor relations can also affect the employee performance, where the problems usually arise from the difference of work, age and demographics. Research will be conducted to examine, whether there is a significant impact on recruitment, employee retention, and labor relations to employee performance on batik industry in Solo. The results of this analysis indicate that the recruitment, retention, and labor relations found a significant effect on employee performance. On the other hand, the recruitment and employee retention found a significant effect on employee performance. As well as recruitment and employee retention, labor relations found significant effects to the employee re- tention. The results also found the recruiting and employee retention have a significant impact on employee performance through the labor relations. As well as the recruitment significantly influence on labor relations through the employee retention.
    [Show full text]
  • EMPLOYEE ENGAGEMENT THROUGH CORPORATE VOLUNTEERING Involvesoft
    UNDERSTANDING THE INVESTMENT VALUE EMPLOYEE ENGAGEMENT THROUGH CORPORATE VOLUNTEERING InvolveSoft Employee engagement is the commitment, passion and loyalty a worker has toward their company. The more engaged an employee is, the more work they contribute. Business leaders understand that engagement leads to higher productivity, increased employee retention, reduced absenteeism, even higher revenues. There’s an avalanche of supporting studies from Gartner, Forrester and others. InvolveSoft helps teams The outcomes consistently include a return-on-investment and happier employees. volunteer in the community, find Millenials drive much of the discussion, yet the benefit spans all ages. and match volunteer opportunities and share team experiences. Engagement tools include volunteering, diversity programs and leadership training. Volunteerism is the first step. It’s universally popular, reaches into the community To learn more, contact us: and is the lowest cost of all engagement resources. www.involvesoft.com Let’s look closer into how engagement through volunteerism can be an exceptional tool for your company. Employee Turnover PWC and Harvard Business Review equate engagement to a significant reduction in turnover. “HBR studies show firms with greater corporate responsibility reduce average turnover by 25-50%. It can reduce annual quit rates by 3-3.5%, saving 90%-200% of an employee’s annual salary for each retained position.” Employee Attraction According to Corporate Learning, “The average cost to fill a position is $4,000. 77% of respondents
    [Show full text]
  • Employee Retention Through Employee Engagement: Observation from Telecom Sector
    ISSN: 2278-3369 International Journal of Advances in Management and Economics Available online at www.managementjournal.info RESEARCH ARTICLE Employee Retention through Employee Engagement: Observation from Telecom Sector Verma MD1*, Nayak Sarita2 1Monnet Power Co. Ltd, Angul, Odisha, India. 2Regional College of Management, Chakakola Vihar, Chandrasekharpur, Bhubaneswar, Odisha, India. *Corresponding Author: E-mail: [email protected] Abstract Employee engagement leads to commitment and psychological attachment and reflects in the form of high retention (low attrition) of employees. The level of engagement in employees can be enhanced by identifying its drivers (influential factors) and work on them. The construct employee engagement is built on the foundation of earlier concepts like job satisfaction, employee commitment and Organizational citizenship behaviour. Engaged employees are emotionally attached to their organization and highly involved in their job with a great enthusiasm for the success of their employer, going an extra mile beyond the employment contractual agreement. The relationship between employee engagement and employee retention is examined from the response to separate questionnaires from 132 employees who are chosen based on random sampling. The study finds that the employee retention can be improved by increasing the level of employee engagement and focusing on few non-financial drivers. Organizations can design good practices in the light of findings to retain their best talent (highly skilled and specialized human resources) without much financial burden. Keywords: Employee engagement, Employee retention, Organizational citizenship behaviour, Job satisfaction, Employee commitment. Introduction Managers unequivocally agree that this century number of employees with increased technical and demands more efficiency and productivity than professional skills. These knowledge workers any other times in history.
    [Show full text]
  • Retaining Professional Female Millennials Through Mentoring Emily Schutte St
    St. Norbert College Digital Commons @ St. Norbert College Works by Masters of Business Administration The onD ald J. Schneider School of Business & Students Economics 5-14-2017 Retaining Professional Female Millennials Through Mentoring Emily Schutte St. Norbert College, [email protected] Follow this and additional works at: http://digitalcommons.snc.edu/mba_studentwork Part of the Business Administration, Management, and Operations Commons Recommended Citation Schutte, Emily, "Retaining Professional Female Millennials Through Mentoring" (2017). Works by Masters of Business Administration Students. 1. http://digitalcommons.snc.edu/mba_studentwork/1 This Article is brought to you for free and open access by the The onD ald J. Schneider School of Business & Economics at Digital Commons @ St. Norbert College. It has been accepted for inclusion in Works by Masters of Business Administration Students by an authorized administrator of Digital Commons @ St. Norbert College. For more information, please contact [email protected]. 1 Retaining Professional Female Millennials Through Mentoring Emily Rae Schutte MBA Graduate, Spring 2017 St. Norbert College in De Pere, WI May 14, 2017 2 Summary “The female millennial represents a new era of talent. This talent population is not only entering a workforce that looks different to the workforce her mother and grandmother may, or may not, have entered – she is entering it with a different career mindset. She is more highly educated, more confident and more career ambitious than any of her previous generations” (Flood, 2015). Organizational leaders seek educated, confident and ambitious employees. Therefore, the above description begs the question: How can one attract and retain such valuable talent? Female professionals born between 1980 and 2000 are considered the Millennial Generation.
    [Show full text]
  • Impact of Mentoring on Staff Retention Through Knowledge Transfer: an Empirical Evaluation of Four Private Universities in the North Central Zone of Nigeria
    Global Journal of Human Resource Management Vol.5, No.2, pp. 14-24, February 2017 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) IMPACT OF MENTORING ON STAFF RETENTION THROUGH KNOWLEDGE TRANSFER: AN EMPIRICAL EVALUATION OF FOUR PRIVATE UNIVERSITIES IN THE NORTH CENTRAL ZONE OF NIGERIA Sunday Alewo Omale Ph.D Department of Business Administration Veritas University Abuja (The Catholic University of Nigeria) Daniel Oguche Ph.D Department of Banking and Finance Veritas University Abuja (The Catholic University of Nigeria) Chika Ebenezer Duru Ph.D Department of Entrepreneurship Studies Veritas University Abuja (The Catholic University of Nigeria) Idodo Momodu Daniel M.Sc Department of Management Studies Dorben Polytechnic Garam Niger State-Nigeria ____________________________________________________________________________ ABSTRACT: This research study explored the impact of mentoring on staff retention through knowledge transfer with specific reference to selected private universities in Nigeria. Mentoring is a natural one-on-one, mutual, committed relationship formed between a mentor and mentee designed to promote personal development beyond any particular institutional goals. However, Knowledge transfer seeks to build, systematize, otherwise distributes knowledge and guarantees its accessibility for future users. In an organizational setting, the goal of employers is usually to decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talents and organizational knowledge. Employers can improve retention rates and decrease the associated costs of high turnover with the aid of mentoring and knowledge transfer. The material used for this investigation was sourced from both primary and secondary data such as text books, management journals and internet. A well-structured open ended questionnaire was the main tool for data gathering.
    [Show full text]
  • Business Case for Retention Endorsed by 10,000 Employees
    BUSINESS CASE FOR RETENTION ENDORSED BY 10,000 EMPLOYEES WHITE PAPER WHITE PAPER BUSINESS CASE FOR RETENTION ENDORSED BY 10,000 EMPLOYEES Background – UNCERTAINTY Employers in every part of the world have had to navigate a changing business landscape in recent history. In the past 5 years, the unstable external environment has heavily impacted businesses internally. In light of this, employers are increasingly identifying that retention is one of the most important issues influencing how they not only survive turbulent times, but move beyond them. Employers are progressively looking beyond today and their focus is shifting to creating new opportunity. As we become more accustomed to volatility we are looking for greater control of our own circumstances. That aspiration has major implications for strategy, cash flow and capability. Developing existing internal employees, and in particular leveraging key employees, is an inexpensive and effective strategy for finding growth. Employees are not just a cost center but also a “natural resource” that businesses are able to tap into. Retention therefore, must be reviewed not only as a way to mitigate risk, but as a growth strategy as well. There is a shift in the retention debate How effective employers will be to navigate the shift within their organization will be largely determined by how they maintain momentum within. With many employers not intending on increasing base wages and compensation (see the latest market reports from the HR Coach Research Institute), other factors will rate highly in keeping talent. The connectedness between the employer and employees will optimize the opportunity. Employee engagement and retention will be paramount to ensuring business success moving forward.
    [Show full text]
  • Analyzing the Impact of Employee Value Proposition on Labor Turnover
    Analyzing the Impact of Employee Value Proposition on Labor Turnover Vijaya Mani SSN School of Management, Kalavakkam, Chennai Abstract: The Research aims to analyze the impact of Employee Value Proposition (EVP) on labor turnover in leading IT player in the state of Tamil Naduwith a specific focus on determining the cause and effect of the high Labor Turnover in the IT sector and suggesting suitable remedial measures. The information for this research was collected and compiled by means of literature and an empirical study. The Empirical study gathered the information through a questionnaire which was tested for its reliability. The questionnaire was designed by segmenting the labor market into general attributes that are evident in all organizations in the IT Sector. The Data was collected from 500 white collar employees of the stated organization using Stratified Random Sampling. The response rate was 95%.The primary data together with the literature data was processed and analyzed using statistical techniques. The Data was validated empirically and was analyzed using One-Sample Kolmogorov Smirnov test, Chi Square and ANOVA. Conclusions and recommendations were drawn based on the data analysis made. The research concluded that the organizations which focus on superior Employee value proposition initiatives have less Labor Turnover. The research clearly identified shortcomings within the current retention process and suggested methods to develop an effective strategy for bringing down the employee turnover rate in the organization. Key Words: Employee Value Proposition, Labor Turnover, Retention, Empirical Study, Labor Market Introduction & Background The looming talent war is a topic of great importance to all labor markets.
    [Show full text]