Study About Staff Turnover Management

Turnover of employee is one of management problem in 21 century. Talent mobility accross organization is grow rapidly, creating issues on how to make employee to be more engaged, loyal, and productive towards organization. Wrong turnover management is bad for organization, and costly due to talent movement to other organization.
Checkout those studies and review some strategies for your organization.

1. The Study of Labour Turnover
2. Complete Report - Employee Retention & Labour Turnover
3. EMPLOYEE TURNOVER: BAD ATTITUDE OR POOR MANAGEMENT?
4. "Putting a price on Staff Turnover" a case study

The Latest Thinking on Reducing Staff Turnover

What does turnover cost your organization? How many staff left your organization last year? What did that cost you in terms of recruitment, screening, training, reduced service and lost revenue? Even at entry levels, the cost of staff turnover has been placed at around $7500 per incident. So if you have a staff of 100 people and your turnover rate is 10% your cost of turnover is going to approach $75000...that's cash out the door. Your situation may be different, better or worse, but until you determine what the cost of turnover is for your company or your organization, any initiative that you might want to undertake to reduce turnover will seem too expensive.

You have probably heard that people don't leave jobs, they leave supervisors. In the leadership development work that my company does, we see time and time again that many supervisors simply lack the people skills to become good supervisors. They may have been excellent at the production job or their service delivery job and that is why they were promoted to supervisor. But, what is often not recognized is that they now have a new job and it's very different than the job they formerly had; it involves the management and motivation of people.

To complicate matters, in many organizations the role of a supervisor is seen as being a "taskmaster"; to make sure that people produce the maximum number of widgets possible in 8 hours. There is little room or concern for the welfare of the employee; very little commitment to the success of the employee; it's a sink or swim proposition. In most organizations, the pattern goes like this. The employee is hired, put through an orientation where more information is thrown at him/her than could possibly be absorbed. Thereafter the new employee is assigned to the work environment. If the employee begins to have performance problems, the disciplinary process begins and before you know it, the person is never seen again. Of course all of this happens in a pretty public way. That is, other employees observe the process and quickly get the message that the company lacks commitment to the success of its employees. The relationship between employees and their supervisors is unfortunately not always a good one. A recent study done by the University of Florida suggested that more than half of all employees do not trust their supervisor on a number of key measures.

What does it take to keep employees happy and productive? It can be pretty simple. Sometimes all it takes to keep an employee happy and fully engaged is an occasional "thank you". Motivating people is not rocket science. Communication is another key. If managers need employees who will support their vision for the company, that vision has to be discussed with them frequently. And they'll need coaching in terms of how to go about their jobs in a way that truly supports the desired company objectives. Finally, Herb Kelleher, founder of Southwest Airlines, believes that the company's real challenge is to take care of its employees. Employees who sense the interest and concern of management for their success are the best sales reps the company could want; the customers will be there and will be there repeatedly.

If you would like to cut your turnover in half, follow some of Larry's suggestions for better staff morale and other leadership tips that are discussed in his FREE newsletter. It's free and is distributed twice a month. Each issue is short, to the point and has an article of interest to organizational leaders. Click on the link below to subscribe. Leadership Training Article Source

Is Your Employee Turnover Rate Acceptable?

Employee turnover is inevitable. But it's stupid decisions leading to employee turnover that is eating up the profits of businesses.

A glaring example of management drinking its own Kool-Aid is something I call "industry-average syndrome," where managers accept turnover as normal because it's near or slightly under the industry average. My mother used to reprimand me when I got in trouble with friends by asking, "if your friends jumped off a bridge, would you follow?" Apparently many employers heard that same message too. Unfortunately, rather doing a little critical thinking, they are literally jumping off the bridge when it comes to managing employee turnover.

It's a sure thing that workers will come and go for reasons ranging from unpredictable life choices to avoidable stupid hiring decisions. There will always be turnover. But using the industry average as your standard is a cop-out and a very bad practice. That thinking might have worked when margins were high and it was easy to raise prices, but it's unacceptable if you want to stay in business today.

Employee turnover should be treated like a cancer, not the common cold. The cost of turnover is staggering. The effort and sales needed to recoup these costs can be devastating.

Management has no one to blame but itself in many cases.

Research studies have consistently shown that turnover in North America ranges between 25-30% on average. With estimates for the true cost of turnover ranging from 25% for entry level jobs to 250% or more of annual salary for senior management, it's not rocket science to realize that this can't continue. These averages deceive management and suck time away from projects, resources and profits to reinvest for growth and innovation.

In a recent study by the Canadian Grocery Human Resource Council (CGHRC), participants reported an overall employee turnover rate of 38.7%, with an average voluntary turnover rate of 31.7%. The study concluded that turnover should be defined as "an expense without an invoice."

Additional research by the Canadian Food Industry Council (CFIC) found that the cost of turnover; finding, interviewing, training and equipping a new hire; is at minimum $1,500 per frontline employee.

Now $1,500 may not really sound like a lot of money until you factor in that nearly four out of every 10 new employees leave for whatever reason. To put that $1,500 figure into perspective, consider what it takes for one store to recover that cost: If a store's net margin is 1.5-3%, the store has to sell $60,000 worth of groceries to recover the cost of losing a single employee!

If that doesn't give management pause for thought, what will?

The first step in reining in runaway labor costs is to calculate what your cost of turnover is in the first place. In other words, for every employee you need to replace, what does it cost you to recruit, hire and train a replacement? I'd then take it one step further: how many sales does it take to recover those costs?

Take a few minutes to figure out what it costs you every time an employee goes home and doesn't return...and how hard you have to work to recover this expense without an invoice.

Copyright (c) 2010 Success Performance Solutions

Ira S Wolfe is a "Gen Y trapped in a Baby Boomer body." He is a widely respected expert, speaker, and consultant on workforce trends and pre-employment. In addition to serving as president of Success Performance Solutions, he is the author of "Geeks, Geezers, and Googlization" and "Perfect Labor Storm 2.0."

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