2 January 2006
Post-Christmas is a peak time for resignations. Holidays magnify the Monday morning feeling and the traditional New Year’s resolution can encourage the most indecisive of employees to take action. But what are the underlying causes of attrition and how can employers make a difference?
There has been much research into the reasons employees give for leaving, the results of which can differ depending on the survey. This goes to show that the decision to leave is a personal one and the reason will very much depend on the individual circumstances of the relationship between the employer and employee. That said, the surveys do reveal common themes with the most cited reasons being:
- Pay and benefits
- Career progression
- Issues with the work experience
- Relationship with manager/colleagues
- Job security
Employers with high attrition rates will need to conduct their own research into why people are leaving the organisation. This can easily be done through structured exit interviews which obtain the employee’s views on their role and the company. As some employees may be reluctant to give honest feedback to their line manager it can help to have a member of the Human Resource Department conduct the interview. Even then it may be necessary to give assurances that the information will be kept confidential and will not adversely affect the employee’s job reference.
Exit interviews are nonetheless reactive and will only reduce future rates of attrition if a trend is identified and remedied. A more proactive approach is to carry out a regular survey on all staff to gain information about how current employees feel about certain aspects of their employment. Annual attitude surveys can highlight areas of discontent and identify localised issues which, if left unaddressed, could contribute towards a high turnover of staff. Provided employees are confident that the results of the survey will be acted upon, and new measures are subsequently implemented, it is possible to stem the number of resignations.
The solution to high turnover very much depends on the nature of the problem identified and will obviously need to be cost effective. It is estimated that it costs an average of £5000 to replace a member of staff in addition to any training costs. Other implications of high attrition can include low morale, higher levels of stress and reduced productivity rates of those who remain.
However, single measures do not always provide a sustained solution and some companies have found it far more beneficial to develop retention strategies which aim to combat the common causes of staff turnover and prevent unhealthy levels of attrition.
Some of the key elements of an effective retention strategy include:
1) Management information
If you don’t have the data you won’t be in a position to take preventive action. Make sure you can identify trends for leaving employment, high risk groups and employees who you can’t afford to lose!
2) Effective recruitment procedures
Base decisions on objective criteria. Don’t try and oversell the role or the organisation as this will lead to unrealistic expectations from the employee and result in dissatisfaction.
3) Reward
Make sure your salaries are competitive and awarded fairly. Consider introducing loyalty bonuses and service related benefits. Flexible benefits can also provide added value and encourage employees to stay.
4) Work life balance
Try and offer flexible working patterns which allow employees to balance personal commitments with work. This not only helps retain staff but can also attract others to the organisation.
5) Management style and organisational culture
Develop employment polices which protect the dignity of all employees at work and encourage open and honest communication and involvement. Ensure grievances are taken seriously and dealt with fairly. Provide managers with the skills to manage and motivate people. Give regular feedback on performance and hold a yearly appraisal.
6) Job satisfaction
The jobs which people undertake should, as far as practical, provide variety and autonomy and offer a personal challenge. Enable employees to keep their skills up to date through opportunities for training and development. Encourage personal growth by introducing personal development plans for all staff.
Even if you don’t think you have a problem, the war for talent could put you at risk. Being head hunted is a flattering prospect for most employees and making a counter offer is unlikely to change their mind. If you want to make a difference, ensure staff feel appreciated and valued and they are far more likely to stay.