Employee Retention

Sandy Chan Michael Cornwell Matthew Vogel

Catbert Understands Employee Retention

Topics
Overview: Turnover and Retention Truths About Turnover How Do We Find Out What Is Causing Turnover? Employee Burnout Succession Planning

Overview
What causes attrition? How can agencies improve retention rates? What retention problems are unique to the public sector?

Truths About Turnover

Adapted from Branham, Keeping the People Who Keep You in Business

Truth #1: Turnover Happens

So focus on keeping the best.

Truth #2: Some Turnover Is Desirable

Zero turnover is actually not desirable.

New employees bring new ideas and keep things from becoming stagnant.

Truth #3: Turnover is Costly

The cost of replacing a lost employee, including productivity cost can be between one and two and a half times the salary of the job in question.

Truth #3: Turnover is Costly

Turnover Costs Direct Costs:
Recruitment Advertising................. Applicant Expenses........................ Selection Testing........................... Medical Exam/Screening................. Background Check......................... $______________ $______________ $______________ $______________ $______________

Actual/Estimated Costs

Indirect Costs:
Employment Office Overhead.......... Orientation Time........................... Training Time................................ Reduced Productivity...................... $______________ $______________ $______________ $______________

Truth #4: Money is Not the Answer

In survey after survey, money ranks far behind things like:

Meeting a Challenge Using Ones Talents

Having a Good Manager

Opportunity for Advancement
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Truth #4:Money is Not the Answer

Agencies focused on retention will find a way to:

Show employees that results are valued.

Recognize important contributions. Provide a sense of ownership.
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Truth #5: Reasons Good People Leave - Management

1. 2.

3. 4.

Management demands that one person do the job of two or more. Management cuts back on administrative help, making professional workers take on those tasks. Management puts a freeze on raises and promotions. Management doesnt give the rank and file a sense of ownership.
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Truth #5: Reasons Good People Leave - Management

5.

6.
7.

Management constantly reorganizes and shuffles things around. Management doesnt clarify goals or decisions. Management shows favoritism for some employees over others.
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Truth #5: Reasons Good People Leave - Management

8.

Management relocates offices to another site forcing employees to resituate their commute.

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Truth #5: The Top Ten Reasons Good People Leave

Management promotes someone who lacks training or necessary experience to a supervisory position. 10. Management creates a structure that has internal departments competing against each other instead of cooperating.
9.
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Truth #6: Reducing Turnover Takes Commitment

When senior management is not committed, organizational policies, practices, and culture can undermine retention efforts.

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What Causes Attrition?

Hire the right people for the right job. XXXXXXXX

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What are the differences between the public and private sectors?

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Interviewing

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Learning to Stop Attrition

Climate and Satisfaction Surveys offer direct feedback from current employees.
Exit Interviews offer insight of employees that have made the decision to leave.
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The Art of the Exit Interview

In-depth questions reveal trouble spots. Avoid top of mind answers by following up. Ask if there is anything that might be done to help a good employee stay.

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Offering Confidentiality

People leaving a job may not want to risk burning bridges.

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Interviews vs. Surveys

People are less likely to give candid answers in person than in an anonymous environment like a survey.

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Asking the Right Questions

1. 2. 3.

Establishing Expectations:
What brought you to this agency? What drew you to this position? What were your expectations from this job?
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Asking the Right Questions

Evaluating Management:
Did you get the support you needed from your management? What, if anything, could management have done to prevent your leaving?
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1. 2.

Asking the Right Questions

Job Satisfaction:

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Asking the Right Questions

1.

2.
3. 4.

Job Satisfaction: What is your primary reason for leaving? What are you satisfied with? What are you dissatisfied with? Compensation

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Asking the Right Questions

Open-ended Questions
Choice (multiple vs. single answer) Matrix Questions

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Asking the Right Questions

Demographics: Age Sex Position Time-in-Service Education Next Step in the Career Plan
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Acting on Answers
Employers need to act on interview and survey results if they are to be effective. If employees perceive that answers do not lead to action, they will give up on the process. (Why go through the

trouble to interview or survey if youre not going to do anything with the results?)

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Burnout In The Workplace

Sandy Chan Public Administration 700 December 7, 2006

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Agenda
Definition of Burnout Background Myths Why Is Burnout Important? Causes Signs Implications

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Burnout
Emotional exhaustion, apathy and reduced personal accomplishment resulting from prolonged stress, overwork or intense activity

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Background

Burnout coined in 1980 by Herbert J. Freudenberger Academic roots in human services

Nursing/Medicine Education Eligibility Work Law Enforcement Social work

Academia and private employers are paying more attention to it as globalization and technology are changing the workplace.
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Background
Globalization Outsourcing, mergers, layoffs Same/more work to do by fewer people A service-based economy rather than a manufacturing-based one more work based on building relationships with others Technology E-mail, instant messaging, mobile communication devices allow for a much more demanding and fast-paced workplace
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Myths

It is a problem and the responsibility of the individual, not the workplace Problems outside of work are interfering with job performance An attitude problem always complaining but not taking responsibility for ones own actions A sign of weakness, instability or misfit for the job
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Myths

An inevitable--but manageable--part of working life Personal problems call for personal solutions get rest, get help or get out Theres not much an organization can do to solve it

But these assumptions fail to take the problem into context

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Why Is Burnout Important?

Burnout is costly to individuals and the workplace Reduced productivity due to poor morale Employee sickness Employee backlash in the form of sabotage or theft Potential loss of best employees those who care the most tend to burn out first
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Why Is Burnout Important

Workers compensation, law suits The spending of time and money for recruiting & training Public relations problems & lost business The future of the company/organization and society

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Wayne State University School of Medicine, 2004

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Causes
Work overload Lack of control over work Insufficient Reward Breakdown of Community Absence of Fairness Conflicting Values

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Signs
Anxiety Sleeplessness Sickness Irritability toward colleagues and family Cynicism Depersonalization Thoughts of leaving the job

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Implications

Not an individual problem its a workplace problem Employees want work that is challenging and rewarding, but when the environment is conducive to burnout, employees will be able to put less and less energy into their work. Show appreciation for work done and reward accomplishments Allow employees flexibility and autonomy over their work

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Implications

Ask for employee input about changes or disturbances before implementing them Mentality should be An ounce of prevention is a pound of cure instead of If it aint broke, dont fix it. Resolution will have to constantly evolve as the workplace evolves, so effective communication is key.

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Planning for the Future: Succession Planning

Michael Cornwell PA 700 Fall 2006

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Succession Planning

The King is dead. Long live the King! Human resource management strategy aimed at mitigating organizational loss incurred by retirements and other forms of separation through HR forecasting. Identifying and grooming candidates for key positions through career path development, coaching, and mentoring. Also refers to large number of separations through mass retirement.
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Demographics

Baby Boomer: 1946 - 1964

29.4% of eligible workforce*

Generation X: 1965 - 1975

14.2% of eligible workforce

Generation Y: 1976 - 1999

less than 6.7% of eligible workforce

*2005 Bureau of Labor Statistics

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Demographics

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*Please insert Retirement

Pencil joke here

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Retirement

Social Security full retirement age ranges from 65 to 67, depending on year of birth. Public Safety occupations often allow retirement at an earlier age.
Example: Police and firefighters in SF can retire at age 50.

Baby Boomers currently ages 42 to 60. U.S. life expectancy*:

Male - 75.02 years Female - 80.82 years
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Impact on Public Sector

Immediate impact on Public Safety occupations (Police, firefighters), because of earlier retirement ages. Healthcare costs continue to rise. Massive retirements will place strain on pension plans- which typically provide better healthcare benefits than those found in the private sector. Public health professions may experience significant increases in caseload size as Baby Boomers health declines.

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Coping with Labor Shortages

Women in the workforce Immigration

Re-thinking immigrant labor

Delayed retirement
Incentives to remain in workforce longer

Reduced pension/benefits packages

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