Worker turnover:
Managers clueless regarding costs, causes and cures equals huge opportunity for PR to add to bottom line
It's the new brain drain. Organizations are losing big on employee turnover-and managers are in the dark about these costs, finds study by Kepner Tregoe (Princeton, NJ)."One startling finding was that top management is clueless about what it costs to lose a worker," says Judith Carrington of Carrington Associates (NYC), marketers of the study. As for stopping this brain drain, management is at a loss for a cure.
The cost of losing an employee = termination + hiring + re-orienting the new hire. Replacing a HR manager in the auto industry can cost as much as $133,803; a company that loses a highly skilled salaried machinist can deduct $102,796 from its bottom line. The departure of a manager of a fast food restaurant costs about $21,931.
Growing trend. Nearly two thirds of supervisors and workers say turnover has increased in the past three years. 52% of supervisors and 55% of workers say they have difficulty retaining high-performing employees. Over half of each group says turnover has a negative impact on the organization.
Leadership responsible. Nearly 40% of supervisors and half the workers say employees are not satisfied with their jobs. 52% of supervisors 64% of workers say top management doesn't initiate programs to reduce turnover. Meanwhile, 56% of supervisors and nearly 75% of workers say they don't find leadership inspiring.
Who leaves? While 64% of supervisors and 51% of workers say less than 25% of those who left were "high performers," responses to other questions indicate their departure still caused a loss of experience and knowledge.
Why leave? Very few respondents cited money among the three top reasons for flight. 56% said they left because of limited advancement opportunity, 26% felt under-valued, 16% left due to conflict with supervisors.
Three-ring circus. 56% of supervisors and 36% of workers said they think about leaving their job at least once a year. When asked to compare their organization to a symphony orchestra, a medieval kingdom or a three-ring circus, 59% of supervisors and 72% of workers picked the kingdom or the circus.
What are organizations doing? Smart ones initiate programs! 52% of supervisors and 64% of workers say groups deemed monetary rewards the most effective ploy.
What can PR do?
Urge management to address the need for better compensation, the desire to feel valued, and opportunities to advance.
· 47% of supervisors and 69% of workers say their organization doesn't give financial rewards for good work-PR's counseling role
· 40% and 59% respectively say they get no recognition for a job well done-something PR can correct quickly
· 54% of supervisors and workers say their organization does not provide ongoing career development-PR's training and counseling role
How to retain employees:
1. Don't manage retention, manage people. Manage the entire context in which people perform. Among retention leaders, the emphasis is squarely on values and creating structures that are people-friendly.
2. Have a culture of caring and a tradition of excellence. High value is placed on integrity, ethical behavior and truth in all dealings -including treatment of employees. On the other hand, they hold employees to a high standard of business excellence.
3. Have a stair-stepping process for conflict resolution, offering alternative avenues that allow employees to avoid "flashpoints" with another employee or manager. Workers can circumvent their immediate supervisor, and top execs often have an open-door policy.
4. Take stock first, then action. Look for early warning signs of turnover and people problems. Discern "pockets of turnover" and take action.
5. Watch high performers and focus efforts on them, where the payback from lowering turnover is greatest. Tie rewards to performance.
6. View people management as a strategic business issue. Know knowledge is the only sustainable competitive advantage.
7. Constantly strive for improvement. View relationships with employees as "work in progress." Ask questions, solicit feedback, provide new rewards and recognition for job performance
[Source: PR Reporter, A publication of PR Publishing Company, Inc., Dudley House, P.O. Box 600, Exeter, NH 03833, 603-778-0514.]
