Employee Turnover and

Staff retention
Reasons for employee Turnover
 
A study of 12,000 employees conducted by Mercer HR firm:

Even if employees are paid well above the market

rate they will still leave if they are not enhancing
their skill set or if they don’t have the social
bonds to keep them in the workplace.
Reasons for joining other
company
• Exciting work and challenges
• Career growth, learning and development
• Meaningful work and making a difference
• Pride in the organization, its mission and its
products
• Great work environment and culture autonomy,
creativity and sense of control
Exit Interview
• The Exit interview is the best way of ascertaining
the reasons why employees are leaving the company

• A structured series of probing questions that are specific to

both the job and the individual.

• Rather than a quick ‘thanks for working with us and all the
best in the new job chat.

• A properly managed exit interview will elicit useful

information that can then be used to assess the workplace
and make improvements to prevent additional resignations.
Exit interview
Exit interview questions include the following:

1) Is the job that you were doing what you expected following the
information we gave you during the interview?
2) What additional information should we be giving new employees
regarding the scope of the job that they are being interviewed for?
3) What were the best aspects of the job?
4) What aspects would you like to see improved?
5) Were you supported with a good induction and initial training?
6) What advice would you be giving to the next person in your role?
7) What types of candidates do you think are best suited to our culture?
8) If we were to rethink this role what other suggestions could you
make?
Costs of Employee Turnover
A study found that the turnover cost for every employee who
leaves ranges from 90% to 200% of their annual salary.
Highly skilled professionals can cost up to 5 times their salary.
In assessing the cost of replacing an employee consideration
needs to be given to:
 Lost Business

 Disruption to an existing smooth-functioning team

 Work put on hold

 Lost customers and business opportunities

 Loss of shared knowledge

Costs of Employee Turnover
 Lost supplier relationships
 Gains made by competitors
 Lowered morale and productivity of existing employees
 The costs involved in hiring – advertising, agency fees,
management time involved in interviewing and selection
testing
 The direct employment costs of the new hire – salaries, sign-
on bonuses, moving allowances, superannuation, workers
compensation, payroll tax, office furniture, IT equipment.
 The time it takes to train a new person
 Socialization of the new person
Costs of Employee Turnover
There are many implications when someone leaves an
organization, but consider the following scenarios:
 Sales Representative
 Product Manager
 Senior Manager

 Clinical Research Associate

 Receptionist
Why Costs of Employee
Turnover is important?
Maximising Staff
Retention
Interview Process
Recruitment campaign should be devised strategically
and be well thought off
Communicate right message to the right audiences
Should have a large candidate pool to choose from

Behaviour based interview – Past performance &

behaviour is best indicator of future performance
Interview must be structured to find out candidates not
only knowledge but motivation & values
Assessment for candidates fit in the organisation
Induction & Socialisation
Understanding structure, employee interaction, who to go
for help, understanding basic things and process
Induction must include to teach how to socially adapt to
new workplace
Good induction makes new employees accept
psychologically the new organisation
Throughout employment
relationship
A manager can do certain things to retain the new &
existing staff:
Ensuring that their jobs are interesting
Their career goals are supported
Information is shared with them

They are connected with others in the organisation

That they are respected and valued
THANK YOU