The Red-Headed Step-child Named Retention

Employee Retention Strategy Can Save Companies Millions

In a recent post on the Risk Management for the 21st Century blog at AllBusiness.com Nancy Germond and I discuss a retention strategy that businesses can employ to minimize risk and help their bottom line by decreasing costs.

With unemployment at one of its highest rates many organizations have let their focus on employee retention slip - with the untapped pool that is consistently being flooded with talent old and new, this action puts your organization at risk and it’s costly. The majority of your current employees look for work elsewhere as economy improves - and even during the turmoil, and the attitude in many organizations is employees are easily replaced, but the costs (and hidden costs) associated with replacing talented employees lead to further problems down the road - risky thinking indeed.

Obviously this can be said with any organization, but the more experienced an employee is the less risky they are and the less risk there is for your organization which makes retention an important step in any organization.

The unique model, which I call The Rethinking Retention Model, bases the retention process on the belief that it should be managed like any other practice: sales, service, quality or safety.

These are some of my recommendations:

• Calculate the cost of turnover to determine how much it hurts your company's bottom line.

• Hold supervisors accountable for retention and teach them the importance of and how to build trust.

• "Narrow the front door to close the back door.”

• Carefully script the employee's first 90 days on the job.

• Develop a “Stay Plan”

• Build tools to connect with employees.

• Allow Candidates to Screen Themselves Out

• Hold employment vendors to retention standards.

• Hire Older Workers

• Use a referral system - current employees refer candidates for three reasons.

In today's economic climate, organizations can no longer ignore retention strategies if they want to retain their top talent, and retention is critical to any company's bottom line - and retaining talent is even harder. With the use of my strategy I was able to help one hospital cut nurse turnover by 34%, effectively them millions.

You can read the entire posting by clicking here.

For more information on my work, visit www.TheRetentionFirm.com or http://www.retentioninstitute.com/.

A Friend Changes Jobs

I live in an Orlando, Florida suburb and know many of the local HR professionals because of various connections over the years. Orlando is a mid-level city, with far-fewer management jobs than Atlanta or Chicago, and those in HR here know that getting a top-level job is hard because there are few corporate headquarters nearby. If you are looking for an HR job that pays below six-figures, you might find one. Above six-figures, plan on a long search. And this is likely true in many other cities that lack a significant corporate headquarters base.

Of course, the economy has shrunk the number of most openings, too, so finding a top-level HR job in Orlando is harder than ever. But a close friend just climbed this mountain in less than a month and did so without a big-secret plan. She just got the word out, took calls from hiring companies and head-hunters, and selected a #2 level HR job to mentor with the soon-to-be-retiring top HR executive…for a healthy six-figure deal.

My friend’s name is Donna, and she got a great job in a hurry because she’s good. She doesn’t network much because she works long hours, and she is better at coaching managers than preparing her own resume. But she shines in interviews and answers questions based on what is best for the business rather than what is best for HR. She sees legal advice as just that rather as mandates that must be obeyed to avoid jail. Her best skill is that she listens, realizes what is in the company’s best interests, and then finds ways to say “yes”.

Most importantly for us, Donna has proven what most of us intuitively know…that good workers can find jobs in any economy. Her now-former employer expressed angst at her leaving and has probably by now identified ways they could have kept her. More money, of course, wouldn’t have fixed her problem.

Retention Tip #19

Occasionally we’ll include a specific retention tip in our blog. Here’s Retention Tip #19: Match the length of your onboarding program with your tipping point: Many companies lose a high percentage of new hires early such as the first 90 or 180 days. This happens especially in service industries such as call centers, retail, and fast food. If your company faces this challenge, measure the number of days at which point early turnover ends...the point at which you can say "If they stay this long, they tend to stay much longer", and develop onboarding processes that continue throughout this period. Include supervisors by asking them to meet with employees over time with specific questions to ensure new hires are connected to their peers and their supervisors, too, as well as learning and performing their jobs well.