Title: Six Criteria for Productive Employee Activity
1Ways to Reduce Turnover and Improve Employee
Satisfaction
Presented by Margot Uson
Presented to Sika Canada Inc.
2Reducing Turnover
- Does turnover really matter?
- How do you know if you have a turnover problem?
3Canadian Turnover Rates
- Wholesale/Retail 35.9
- High Tech/Telecom 18.6
- Natural Resources 16.7
- Services for Profit 14.2
- Insurance 14.2
- Banking/Finance 13.8
- Manufacturing durable 10.8
- Not for Profit 10.4
- Manufacturing non durable 9.8
- Transport/real estate/utilities 6.7
- Source Mercer Policies and Practices Survey 2003
4How much does turnover cost your organization?
- Separation rate ()
- Total Separations/Month X 100
- Average Ees on Payroll
- Avoidable Turnover ()
- Total Separations - Unavoidable X 100
- Average Ees on Payroll
- Ees Employees
5Time for New Hires to Reach Full Productivity
- Executive ex/in 26 / 16 wks
- Manager ex/in 25 / 14 wks
- Professional ex/in 21 / 12 wks
- Sales rep. ex/in 16 / 12 wks
- Cust. Serv. Rep. ex/in 12 / 6 wks
- Technician ex/in 12 / 9 wks
- Admin./Office ex/in 12 / 8 wks
- Operator ex/in 8 / 4 wks
- Source Mellons HR and Investor Solutions
Learning Curve Research Study
6Other Critical Issues
- Canadian population median age is 40
- 30 increase in skilled jobs in last 10 years
- Critical Sectors agriculture, education, public
administration, utilities, transportation,
scientific and technical services - Shortage of skilled workers
- Source Canadian Technology Human Resources Board
7Why does Turnover occur?
- What are the
- INDICATORS
- WARNING SIGNS
- RED FLAGS
8Some Causes of Turnover
- Retaining the Wrong People
- Retaining Right People in Wrong Jobs
- Use of Recruiters instead of Promoting from
Within - No Links between Employees and Succession Plans
- Lack of Recognition and Respect for Employees
- No clear career paths
9More Causes of Turnover
- Inadequate training
- Unskilled supervisors/managers
- Organizational climate - Low morale
- Favoritism or Harassment
- Lack of Adequate Communication or Information
- Poor Management of Performance
- Reward or Compensation System
10 What to do ........?
- WHO IS RESPONSIBLE FOR IDENTIFYING THE PROBLEM?
- Human resources?
- Line Management?
- The CEO?
- HOW WILL THE PROBLEM BE IDENTIFIED?
11Finding The Problem.....
- Identify what is causing the turnover....
- Employee Survey
- Focus groups
- One on One meetings
12- 8 Ways to Improve Employee Satisfaction
13Improving Employee Satisfaction
- 1. Recognition is the top motivator of
performance - Informal Rewards
- Formal Rewards for Specific Achievements and
Activities - Formal Reward Programs
14Improving Employee Satisfaction
-
- Effective Recognition
- Match the reward to the person
- Match the reward to the achievement
- Be timely and specific
15Improving Employee Satisfaction
- 2 Communication
- Ensure understanding of the companys values and
business strategy - Communicate often
- Manage the grapevine
- Communicate in person
16Improving Employee Satisfaction
- 3. Company Policies
- Have company policies
- Make sure employees understand them
- Enforce policies consistently
- Follow through
17Improving Employee Satisfaction
- 4. Manage Performance
- Set SMART Goals with employees/teams
- Identify Key Performance Indicators
- Monitor performance regularly
- Review performance annually
- Reward achievers
- Manage under-performers
18Improving Employee Satisfaction
- 5. Resolve Employee Problems
- Do not let problems linger
- Find the cause
- Identify solutions
- Implement, track and measure
19Improving Employee Satisfaction
- Some Examples...
- Harassment
- Discrimination
- Dishonesty
- Poor performance
- Absenteeism
- Disregard of Co. Policies
20Improving Employee Satisfaction
- 6. Compensate Fairly
- Salary Surveys
- Salaries and Ranges
- Pay Equity
- Incentives short term
- long term
- Benefits / Pension / Savings Plan
- Employee Communication
21Improving Employee Satisfaction
- 7. Train and Develop
- Develop a Learning Culture
- Train for the current job
- Identify Future Career Path
- Fit into Corp. Succession Plan
- Encourage external learning
22Improving Employee Satisfaction
- 8. Health and Safety
- Make HS a top priority
- Keep employees involved
- Train employees continuously
- Work life balance
23Ways to Reduce Turnover and Increase Employee
Satisfaction
- 1. Recognition
- 2. Communication
- 3. Company Policies
- 4. Manage Performance
- 5. Resolve Employee Problems
- 6. Compensate Fairly
- 7. Train Develop
- 8. Health Safety
24Conditions for a successful organization
25Ways to Reduce Turnover and Improve Employee
Satisfaction
- MERCI - THANK YOU
-
- Margot Uson