Authors: Sue Schaefer and Sue Wyman
Every company has an employer brand. This is essentially the reputation that is perceived by customers and current/potential employees of what it’s like to work at a particular company. It is uniquely different than, but critically connected to, the customer brand. Every company has the opportunity to shape their employer brand and create a differentiated perception of their company to ultimately attract and retain the "right" talent to execute business strategies.Focusing on employer branding is becoming more important because (1) the talent pool is shrinking and (2) competition for talent is intensifying.
If baby boomers leave the workforce when they are eligible for retirement, there aren’t enough Gen Xers to replace them.
According to the Bureau of Labor Statistics, by 2010, 10M U.S. jobs will go unfilled, and by 2022 30M U.S. jobs will go unfilled.
In today’s workforce, people have many job opportunities to explore and the best performers have a number of options available to them at all times. So, how does a company begin to compete for the best performers needed in their business? Simply stated, although not simply implemented, the answer is through employer branding that is targeted to the employees they need today and in the future.There is a continuum of options available to build an effective employer brand. Which options are chosen are highly dependent upon the level of executive involvement in the process and the openness of the leadership team to look at the difference between 1) candidate perception and reality and 2) the current vs. aspirational view of company culture. At a minimum, the company can begin by realigning the recruitment process so that it transparently reflects the culture of the company. The experience that candidates have in the recruiting process shapes potential employees’ and, in some cases, customers’ perceptions of the employer brand. Optimally, the executive leadership invests the time and resources to identify, cultivate and communicate the employer brand needed to attract the right talent to the organization.No matter where the company starts, the best thing to do is get started, get focused, and begin to look at candidates as a type of customer. Candidates have specific needs that have to be addressed just like the consumers of your products/services have needs that need to be addressed. We all know that the one who meets the customer needs the best usually wins!
Showing posts with label retention. Show all posts
Showing posts with label retention. Show all posts
Thursday, November 5, 2009
Tuesday, September 22, 2009
Do You Make Lemonade Out of Employee Attrition?
How to Gain Maximum Value from Voluntary Employee Turnover
By Lara Sanders Fordis, Senior Research Director, Insightlink Communications
Even at organizations committed to employee engagement, employees still decide to leave. Of course, you hate to lose your best talent and “top performers” to competitors, not to mention the laborious replacement process that lies ahead. So how can you make something positive come out of attrition in the short- and long-term, while you simultaneously scramble to fill the gap?
An exit system like InsightEXIT gets the job done and even automates the process so you can focus on other tasks. Meanwhile, for every departing employee surveyed in a systematic way by InsightEXIT, you’ll move you another step forward in your efforts to:
Understand the factors that drive employees to leave
Identify problem supervisors who could lead to repeat turnover
Identify other barriers to job satisfaction
Save money by reducing human capital costs related to future turnover
Evaluate how well the expectations set when new employees join your organization are met in practice
Increase retention and reduce employee turnover
Increase employee satisfaction, engagement and morale
Increase employee productivity
Manage and mitigate the risks of employee departures
Move towards becoming an "employer of choice" and a place that voluntarily exit employees could recommend to others
Of utmost importance is whether your organization could have done anything could to avoid it the departure. At Insightlink, we deliberately measure preventable vs. non-preventable losses. Preventable attrition generally stems from employee dissatisfaction, poor management and a perceived lack of advancement opportunity. Non-preventable attrition includes attrition due to spouse relocation, career changes and other factors over which an organization has essentially no control.
You can probably guess where the lemonade comes from and where savvy HR professionals should invest their energy – focus on the factors that contribute to preventable attrition. InsightEXIT makes it easy with a system that puts in your hands the ability to drill-down by any variable, including job type, department and supervisor.
Need tips and suggestions to help you maximize the benefits of conducting your exit surveys? Insightlink’s Exit Survey Best Practice Guidelines include information about exit survey content, setting up an exit system process, what to communicate to your employees and how to interpret exit survey data. Designed to maximize the effectiveness of InsightEXIT, you’ll see why companies of various sizes turn to Insightlink for solutions.
To find out how Insightlink can help you make lemons into lemonade -- when you’re ready to explore how your organization can benefit from systematic exit surveys -- go to http://www.insightexit.com
By Lara Sanders Fordis, Senior Research Director, Insightlink Communications
Even at organizations committed to employee engagement, employees still decide to leave. Of course, you hate to lose your best talent and “top performers” to competitors, not to mention the laborious replacement process that lies ahead. So how can you make something positive come out of attrition in the short- and long-term, while you simultaneously scramble to fill the gap?
An exit system like InsightEXIT gets the job done and even automates the process so you can focus on other tasks. Meanwhile, for every departing employee surveyed in a systematic way by InsightEXIT, you’ll move you another step forward in your efforts to:
Understand the factors that drive employees to leave
Identify problem supervisors who could lead to repeat turnover
Identify other barriers to job satisfaction
Save money by reducing human capital costs related to future turnover
Evaluate how well the expectations set when new employees join your organization are met in practice
Increase retention and reduce employee turnover
Increase employee satisfaction, engagement and morale
Increase employee productivity
Manage and mitigate the risks of employee departures
Move towards becoming an "employer of choice" and a place that voluntarily exit employees could recommend to others
Of utmost importance is whether your organization could have done anything could to avoid it the departure. At Insightlink, we deliberately measure preventable vs. non-preventable losses. Preventable attrition generally stems from employee dissatisfaction, poor management and a perceived lack of advancement opportunity. Non-preventable attrition includes attrition due to spouse relocation, career changes and other factors over which an organization has essentially no control.
You can probably guess where the lemonade comes from and where savvy HR professionals should invest their energy – focus on the factors that contribute to preventable attrition. InsightEXIT makes it easy with a system that puts in your hands the ability to drill-down by any variable, including job type, department and supervisor.
Need tips and suggestions to help you maximize the benefits of conducting your exit surveys? Insightlink’s Exit Survey Best Practice Guidelines include information about exit survey content, setting up an exit system process, what to communicate to your employees and how to interpret exit survey data. Designed to maximize the effectiveness of InsightEXIT, you’ll see why companies of various sizes turn to Insightlink for solutions.
To find out how Insightlink can help you make lemons into lemonade -- when you’re ready to explore how your organization can benefit from systematic exit surveys -- go to http://www.insightexit.com
Sunday, September 20, 2009
The Cost of High Turnover
So your organization has low levels of employee engagement and high levels of turnover. Some HR managers are of the opinion that simply encouraging the "quit and stay" group to actually quit is the easiest and cheapest solution. They may also think that replacement of these employees costs them relatively little. You may be surprised, however, to learn that it costs much more than you think.
Indeed, if an organization has an annual turnover rate typical of the U.S. average (15%) and offers benefits (medical and otherwise) valued at as little as 15% of an employee's salary (most companies' benefits may of even greater value), the approximate annual losses to turnover for that organization are in the tens of thousands annually. Of course, the greater the number of employees and the higher the salaries of those departing employees, the more costly the turnover is to an organization. If these results seem shockingly high, consider what they include. The direct costs associated with employee turnover include:
Termination and hiring administrative costs
Employment advertising
Employee pre-screening
Interviewing
Assessment testing
Background checks
Formal and informal training time
A new employee's learning curve
Taking all these costs into consideration means that it generally costs at least 25% of a departing employee's annual salary to replace that employee. Not to mention how exactly you'll go about finding these new "fully engaged" replacements in the real world!There are also indirect costs like lost institutional memory, the impact on morale, and risk diminished employee engagement among others likely to follow suit are not easily measured, but their toll on an organization is palpable and make employee retention a high priority for pro-active HR departments. The bottom line is: Keep them, and keep them engaged.In the long run, improving both employee satisfaction and employee engagement can not only reduce your turnover costs but can significantly increase your company's profitability.
Investing in employee engagement is a win-win on both sides of the equation.Luckily for organizations willing to examine themselves and take actions accordingly, to a great degree, voluntary turnover is preventable. Investing in retention solutions that result in even a small reduction in an organization's turnover rate can realize substantial reductions in turnover expenses over the long term. Only by conducting regular employee engagement surveys to measure the pulse and climate of the organization and by augmenting those surveys with a systematic method of conducting effective exit interviews can HR managers understand the key motivators of loyalty and commitment among their employees and implement strategies to decrease voluntary turnover.
So if you are ready to see what's happening, hear about concrete actions designed to impact change and set to move forward on a meaningful path to improving your organization, call to talk to a member of our research team today at 866-802-8095 x705...or email info@insightlink.com to set up a conference call or demo to learn more.
Indeed, if an organization has an annual turnover rate typical of the U.S. average (15%) and offers benefits (medical and otherwise) valued at as little as 15% of an employee's salary (most companies' benefits may of even greater value), the approximate annual losses to turnover for that organization are in the tens of thousands annually. Of course, the greater the number of employees and the higher the salaries of those departing employees, the more costly the turnover is to an organization. If these results seem shockingly high, consider what they include. The direct costs associated with employee turnover include:
Termination and hiring administrative costs
Employment advertising
Employee pre-screening
Interviewing
Assessment testing
Background checks
Formal and informal training time
A new employee's learning curve
Taking all these costs into consideration means that it generally costs at least 25% of a departing employee's annual salary to replace that employee. Not to mention how exactly you'll go about finding these new "fully engaged" replacements in the real world!There are also indirect costs like lost institutional memory, the impact on morale, and risk diminished employee engagement among others likely to follow suit are not easily measured, but their toll on an organization is palpable and make employee retention a high priority for pro-active HR departments. The bottom line is: Keep them, and keep them engaged.In the long run, improving both employee satisfaction and employee engagement can not only reduce your turnover costs but can significantly increase your company's profitability.
Investing in employee engagement is a win-win on both sides of the equation.Luckily for organizations willing to examine themselves and take actions accordingly, to a great degree, voluntary turnover is preventable. Investing in retention solutions that result in even a small reduction in an organization's turnover rate can realize substantial reductions in turnover expenses over the long term. Only by conducting regular employee engagement surveys to measure the pulse and climate of the organization and by augmenting those surveys with a systematic method of conducting effective exit interviews can HR managers understand the key motivators of loyalty and commitment among their employees and implement strategies to decrease voluntary turnover.
So if you are ready to see what's happening, hear about concrete actions designed to impact change and set to move forward on a meaningful path to improving your organization, call to talk to a member of our research team today at 866-802-8095 x705...or email info@insightlink.com to set up a conference call or demo to learn more.
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