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www.brooksapplied.com
ManagingtheRiskofEmployeeTurnoverMichelle Briscoe, President/CEOBrooks Applied Labs
ACILP2ConferenceApril20,2017
www.brooksapplied.com
BALisaanalyticalchemistrylaboratoryspecializinginanalyticalservicesandconsultingrelatedtometalsquantificationandspeciation,primarilyservingtheenvironmental,food/supplement,pharmaceutical,andbiomedicaltestingandR&Dmarketsectors.Weareaprivatelyheldsmallbusiness(46employees)locatedintheSeattleareawithnearly30yearsofexperienceinthisniche.
• WhataretheRisks?• WhataretheKeyCausesofTurnover?• HowtoMitigatetheRisk– RetentionStrategies
PresentationOutline
• Sincetherecession,thejobmarkethasbeenexperiencinggreatimprovement1
• InApril2015,2.7millionemployeesquittheirjobs,andthequitratehasbeenontherisesince2
• Unemploymentisdowntonearly5%• Asmorejobsarecreated,employeesaretemptedtolookforgreenerpastures
TurnoverisanInevitableRisk
• Whenyouhireyoung,ambitiousfolksstraightoutofcollege,youhavetoexpectthatworkinginalabisn’tgoingtobeeveryone’slifedream
• Estimatedthattheminimumcostofturnoveris20-35%oftheannualsalary–higherforexecutivepositionsoremployeesmakingmorethan$50,000K/year3,4
• Directreplacementcosts– Advertising,screening,interviewing– PayoutofaccruedPTO
TurnoverisaRiskthatCostsyourCompany
• Lostproductivity– Capacityloss– UnabletomeetTATs
• Trainingtimeforreplacement,andlossoftrainingtimeinvestmentinformerstaff
• Uncertaintythatanewhirewillworkout
• Braindrainhindersfuturegrowth• Newcompetitorsouttherethatyoutrained
TurnoverisaManagementRiskwithaWideVarietyofSubtleRisksandCosts
• Lessthan¼ofemployeeswhoquitleaveforaraiseelsewhere
• Payrateandbenefitsgenerallyranksabout3rd insurveysofwhyemployeesleave5
It’sNotAllAbouttheMoney
Disengagement:– Multiplelargestudiesshowthatonlyabout30-35%ofemployeesare“engaged”intheirwork3
– Thiscanbemanagement’sfundamentalchallengeWhatleadstodisengagement?• Poorrelationshipwithdirectmanager• Lackoffaithandtrustinseniorleadership• Chronicuncertaintyduetofinancialpressuresandtheneedtodomore(sometimeswithless)
WhyPeopleLeave
Howdoyoukeepvastnumbersofdiverseindividualsinterestedintheirwork,feeling
goodabouttheirorganization,andworkingasproductivelyastheycan?
IncreaseEngagement!
Thispresentsahugeopportunitytoimproveemployeeproductivityandmotivationby
increasingengagement.
1. Supervisors2. Colleagues3. Culture4. Rest&Relaxation5. GrowthOpportunities
TheFiveKeystoStaffRetention
TheirRelationshipwiththeirBoss
• Eveniftheylovethecompanyculture,peoplewillstillquitiftheydon’thaveagoodrelationshipwiththeirdirectsupervisor
• Beforepromotingsomeonetoasupervisoryposition,consider:– Howisthispersonrecognizedbytheirpeers?– Doesthispersoninspiretheirco-workers?– Dotheyprovideclearinformationtotheirpeers?
The#1ReasonPeopleLeave:
“Employeesdon’tquittheirjob,theyquittheirboss”DevelopmentofSupervisoryStaff
Trainmanagershowto:• Expressrespectandappreciationfortheiremployees’workandideas,andprovidetimelyrecognition
• Giveemployeesfreedomtomakedecisionsonhowtodotheirjobs(don’tmicromanage)
• Betransparent– giveemployeesaccesstoreasonsbehinddecisions
Eachofthesethingswillincreasethelikelihoodthatanemployeewillstaybyabout30%.4
(30-60minutespermonthwitheachdirectreport)TheMonthly1-on-1
Goodcommunicationiscriticaltodevelopingagoodrelationshipbetweenanemployeeandtheirsupervisor!Ø Keepitshortandsimple,andmeetinacomfortablesettingØ Ensureconversationis2-wayØ Takenotesandfollow-throughoncommitmentsØ Beagoodlistener(assessstress,work/lifebalance,morale)
Ifyouwanttocreateagreatplacetowork,thenhirepeoplethataregreattoworkwith!
• Intoday’sorganizations,we’refarmorelikelytointeractwithourcolleaguesthanwearewithoursupervisorsorseniormanagement.
• Employeesaremorelikelytostaylongeriftheyhaveahighlevelofrespectandrecognitionfromandfortheirpeers,creatingacultureofresponsibilityandappreciation.
• Superstarsmayleaveiftheyfeelinglikethey’replayingonthe“BTeam”.
ThePowerofGoodColleagues
• Don’thirejustontheskillslistedontheresume• Beforeyouhiresomeone,determinewhetherornotthey’llfitintoyourcompanyculture
• Assesswhetherthejobbeingofferedistherightfitfortheircareerpath
• Hirecandidatesthatshowanattitudeofpositivity,innovation,andproductivityduringtheirinterview.
ReducingTurnoverStartswithRecruitment(Screening&Interviewing)
• Developandconstantlycommunicateyourmission,vision,andcorevalues– Grassrootsdevelopmentcanencouragecompany-widebuyin
CreateanIncredibleCompanyCulture!
• Developandconstantlycommunicateyourmission,vision,andcorevalues– Grassrootsdevelopmentcanencouragecompany-widebuyin
• Beopen,honest,andtransparentaspossible– ConsiderWeeklyHuddlesorsimilar
CreateanIncredibleCompanyCulture!
• GoodNews!• TheNumbers• WhatDoesitAllMean?• Challenges• NumberOnes• GroupCheers!
10-MinuteseveryTuesdayatNoonTheBALWeeklyHuddle
• GoodNews!• TheNumbers• WhatDoesitAllMean?
• Challenges• NumberOnes• GroupCheers!
TheNumbers(metricsmeasuredweeklyagainstagoal):
• TheSCGroupshippedout___ itemsforbottleorders.• TheTMGroupanalyzed___ samplesfortotalmetals.• TheSPGroupanalyzed___ samplesforspeciatedmetals.• TheHGGroupperformed___ THg/MeHganalysesand___HGAASanalyses.
• TheQAGroupQA’ed___ batch/analytes,withanaveragepassingrateof___%.TheaveragetimeeachbatchspentinQAwas___ days.
• ThePMGroupsentout___ reports,valuing$.Wereceived$____ worthofnewworklastweek.$_ worthofworkiscurrentlylate.
• TheBDGroupreportedthat___ quotesweresentoutlastweek,withatotalprobablyvalueof$___.Lastweekwecontracted$___ ofnewwork.
• TheAccountingGroupreportedthatlastweekwehad$___incashreceipts.
10-MinuteseveryTuesdayatNoonTheBALWeeklyHuddle
• Developandconstantlycommunicateyourmission,vision,andcorevalues– Grassrootsdevelopmentcanencouragecompany-wide
buyin• Beopen,honest,andtransparentaspossible• Providethebestbenefitsyoucanafford
– Considerprofit-sharingplansandgenerousPTO• Streamlinerequirementsandkeepthework
scientificallychallenging– NELAC,DoD,DOECAP,ISO,QAP…somanyrequirements!– peopleneedtousetheirbrains,notjustfollowSOPs
CreateanIncredibleCompanyCulture!
YouDon’tHavetobeaBigOrganizationtoOfferHighlyValuedPerks!• Flex-timeorremoteworkoptions• Gymmemberships• Freefoodorcateredlunches
Don’tforgetthevalueofdowntime
• Tired,burntout,andstressedemployeesare31%morelikelytobelookingforadifferentjob
• Employeeswithgoodwork-lifebalanceandwhoareencouragedtousetheirPTOaremorelikelytoseethemselvesstayinglong-term6
• Howleadersmodelnumberofhoursandamountofvacationtimetakensetsnormsthattrickledowntoexpectations.
• Use1-on-1’stotuneintoemployee’sneedstominimizeburnout
Rest&Relaxation
ProfessionalDevelopmentandGrowthOpportunities
• Professionalgrowthandcareertrajectoriesareexpectationsemployeeshave
• 75%ofmillennialssaythatwouldlookforanewjobiftheydidn’tseeopportunitiesforprofessionalgrowth
• Inourfield,keepingthestaffscientificallystimulatedcanbekey
• Considerinternallyfundedresearchprojects,opportunitiestoattendconferences,outsideeducation(shortcourses),books,webinars,etc.
GrowingaGreatTeam
• Investintheemployeedevelopmentandgrowth,notjusttraining
• Askforfeedback,andactuponit• Recognizegoodwork• Createacultureoftrustandopenness• Picktherightmanagersandleaders• Hireforculturalfit• Embraceopportunitiesforsocialization• Openlydiscussworkloadandexpectations
LeadersHaveControlOverTurnover
Someturnoverisgood
Therearegenerallytwokindofpeoplewhostaywiththesamecompanyforalongtime:– Thosewholovetheirjobs!– Thosewhoaretoolazytoleave.
Lookingforanewjobishardwork,andsomepeoplewouldratherstayunhappyinthejobtheyalreadyhaveratherthanfindthemotivationtolookforanewone.– Disengagedemployeesshowupbutdon’tgive100%– Employeeswithpoormoralecanbecontagious
Thatsaid…
Someturnoverisgood
• Someturnovercanbebeneficialtothehealthofanorganization– Newideasandcreativity– Youngfolkskeeptheoldfolksyoung– Employeewholovedyourcompanybutwantedadifferentcareerpathmaybecomeavaluedclientormakekeyreferralsforyourcompany
Thatsaid…
1 Gallup,poll1834792 BureauofLaborStatistics3 VictorLipman,Forbes,10/10/154 TinyPulse,EmployeeRetentionReport20165 HRBamboo,July20146 SabrinaSon,TinyPulse,2/18/16
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