Why?
Research from the 2007 CIPD survey reported that the overall employee turnover rate for the
When does high turnover become a problem?
It is particularly so where skills are scarce, recruitment is costly, where it takes several weeks to fill a vacancy, when you lose staff to direct competitors or where employees have developed close relationships with their clients. And service industries beware: there is a direct correlation between staff turnover and customer turnover.
How much does it cost to replace a leaver with a new starter?
Consider these categories:
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Administration of the resignation
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Recruitment/selection costs
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Cost and time needed to cover the replacement period
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Induction/training
On the sample collected the average cost per employee ranged from £7,750 to £11,000.
In cases of premature departure the decision is effectively taken in the first few weeks of employment.
This is due to a combination of poor recruitment and selection on the part of the employer and employee along with poorly designed induction programmes and unrealistic expectations.
How can retention be improved?
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Use effective selection tools ? job profiling, structured interviews, personality profiling, relevant practical tests
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Give the new employee a realistic job preview
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Train managers in effective supervision and induction
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Create opportunities for the employee to develop and progress
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Be fair and non discriminatory
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Allow employees a voice
Where individuals leave in the first few weeks of employment it is usually due to poor recruitment and selection decisions by both the employer and employee coupled with poorly designed induction programmes and a mismatch of expectations.
The First 100 Days Package
One way to achieve this is by implementing 'a first 100 days package';
a structured coaching
programme delivered by an external coach
that provides independent support as a new employee makes the transition into the new job in the new organisation or is promoted to a new position.
It complements and supplements the company's induction programme ensuring that the new employee is able to optimise their learning in this crucial period.
Delivering
enhanced
self awareness,
improved communication and speedier productivity, the programme - typically three or four one to one sessions and e-mail and telephone support is cost effective, time saving and motivational.
For more information contact
