Retention Strategy

Topics: Employment Pages: 5 (1334 words) Published: April 11, 2011
Assignment Module 3:

Employment Skill –Planning, Recruitment & Selection

Question: What Strategies would you employ to reduce the high turnover rate in your department? Discuss Briefly.

High Staff turnover in an organization does not only create high turnover costs, it will also harm the organization’s reputation and can negatively impact productivity, customer satisfaction, reputation among job-seekers and, significantly, in the morale of the departing employee’s co-workers.  Besides, informal networks are powerful resources for job seekers and friends to follow colleagues to other employers. There are possible future turnover of employees who are lured to other organizations by their friends who have departed.

Key employee retention is critical to the long term health and success of business. Managers readily agree that retaining best employees can ensure customer satisfaction, product sales, satisfied coworkers and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning. Besides the basic retention methods such as attractive, competitive, benefits package with components such as life insurance, disability insurance and flexible hours, high employee’s turnover can be reduced in many other ways.

1. Hire the right candidate.

Select the right people in the first place through behavior-based testing and competency screening. The right person, in the right seat, on the right bus is the starting point. At the same time, don't neglect to hire people with the innate talent, ability, and smarts to work in almost any position even if the department doesn’t currently have the "best" match available. Hire the smartest people you can find to reduce employee turnover.

2. Provide internal security to existing employee.

Communicate goals, roles and responsibilities so people know what is expected and feel like part of the in-crowd. A satisfied employee knows clearly what is expected from him every day at work. Changing expectations keep people on edge and create unhealthy stress. They rob the employee of internal security and make the employee feel unsuccessful. Provide a specific framework within which people clearly know what is expected from them and provide performance feedback regularly and promptly; at regular reviews, there are no “surprises” to the staff.

Managers and employees want to be “in the know” even more during times of change. Adjusting department or functional-area strategies to address market shifts requires a quicker response; therefore, sharing corporate objectives and proposed tactics is critical.

Regular meetings with senior leaders to openly share information helps managers and supervisors select the best approaches for their work area, set timely priorities and improve customer responses. Passing this information on to staff helps engage their creativity and problem-solving skills to keep the company on track despite weak and shifting markets.

Continually clarify and update job-performance requirements and expectations would enable managers to be aware of the resources required by the staff to produce top-quality work. Sharing company information regularly will demonstrate that employers value employees’ desire to be “in the know.” Regularly report results of the department’s work, its impact on the customer and the company will keep staff apprised of how their work fits into “the big picture” of serving customers and achieving corporate goals.

3. Quality of the line manager/reporting manager.

Research shows that managers and supervisors have a huge impact on retention. At times, People leave managers and supervisors more often than they leave companies or jobs. It is not enough that the supervisor is well-liked or a nice person, starting with clear expectations of the employee, the supervisor has a critical role to play in retention. Anything the supervisor does to...
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