PGDHRM

HR Analytics

Talent Engagement
and Retention
Course Tutor :Rifat Amin Ryhan
 Learning Outcome
Lead indicators and
predicting
employee engagement

Measuring Attrition or The engagement

Labour Turnover Rate curve

Building up for
Business levers of
retention
employee engagement What we will predictability
learn in this
chapter

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 Business levers of employee engagement

Initially, companies counted only
‘turnover rate’ to track employee
satisfaction. If the employee
turnover rate is less, then they are
more satisfied.
But later the companies found that
satisfaction alone was not enough to
predict turnover levels. A company
employee could have high
satisfaction and a high turnover.

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 Business levers of employee engagement
Impact of quantum
of the work

Pride in the Later it was felt that lack of Confidence in the

company engagement might be a factor for future of the
employee turnover. Components of company
engagement are:

Understanding
Liking the work
business strategy

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 Business levers of employee engagement

Studies clearly show that there is a positive correlation

between employee engagement and company performance

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Measuring Attrition or Labour Turnover Rate
Number of employees who quit during
a period
Attrition
rate
Average headcount for that period

Example: Assume that your total number of workers is 1,000

on January 1st. By December 31 of the same year, the total is
1,200. Your total employee left for the year is 50.
Your average number of employees for the year is (1,000 +
1,200)/ 2 = 1,100 workers.
Your turnover rate is (50 separations) / (1,100 average
number of workers) = 4.6% (with rounding).

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 Measuring Attrition or Labour Turnover Rate
Here are some questions to consider:

What questions were asked when the

employee was hired? Did the questions
relate to the job?
1. Are the
Did those who sorted applicants by their
majority of responses understand what skills the job
these required?
employees
Did the employee get an orientation?
leaving
within the How did the employee’s supervisor
first year? interact with the employee?

How did the existing workforce interact

with the new employee?

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 Measuring Attrition or Labour Turnover Rate
Here are some questions to consider:

2. Did many of these lost 3. Did many of these lost

employees come from the employees report to the same
same department? hiring manager?

5. Have these employees been

4. Do they all have a specific in the same role for a long time
set of skills? (e.g. 3 years) without a
promotion?

6. When was the last time these employees received a pay

increase?

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 Lead indicators and predicting
employee engagement
The following are the lead indicators
of diminishing engagement:
It is said that
people tend to
withdraw from
spaces when they
do not like being Change in work timings : No specific entry
in that space time but exit time is fixed.

Increasing use of work from home

Unpredictability of attendance: taking

Adler & Golan,1981 frequent leave often without any notice

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 Lead indicators and predicting
employee engagement
Sportsmanship

Conscientiousness Courtesy

Component of Engagements Civic virtue

Altruism
(D,W Organ,1988)

Often large companies say that more than 30% of their new hires come from
employee referrals

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 The engagement curve
If we plot tenure on one axis and engagement score on the
other, then we will see the engagement curve is J shaped

Employees with Employees with 12- Finally employees

1-12 years of 22 years of with 22-30 years of
experience show experience show experience show
very high dropping in rising in
engagement levels. engagement levels. engagement levels.

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 Building up for retention predictability

Level Important factors Good to have factors

Training
Cutting edge work Work culture
Junior
Pay Supervisor quality
Benefits
Career growth
Work life balance
Responsibility
Benefits
Middle Work culture
Cutting edge work
Management quality
Higher education
Pay
Success on the job
Peer respect
Senior Leadership Vision Perks
Influence ability
Wealth generation

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Thank you for
watching…..

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