Employee Retention Management

1
Employee Retention Management

• Prof. Dr. Ahmed Amin
• German University in Cairo
• June 2009

2
Importance of Retention

• Cost of replacement
• Replacements cost include recruitment, selection
  and learning.
• Replacement costs may equal 50 of the employees
  annual salary.
• If each replacement costs 10,000LE, a company
  with a workforce of 1000 employees and a 10
  turnover can suffer 1,000,000LE per year!

3
Importance of Retention

• 2) Loss of human and social capital.
• 3) Downtime.
• 4) Damage to organizational reputation.
• The DARK side of retention!

4
The Retention Management Process
5
Assessment Measuring Turnover

• (Number of employee separations / Total number of
  employees at midmonth)100
• May be analyzed by
• Jobs and job levels
• Departments and locations
• Length of service
• Knowledge and skill levels

6
Assessment Costing Turnover

• Job Title_____________
• A. Total employee annual compensation cost
  ____LE
• B. How many quit in the last 12 months
  ____
• C. How long does it take to become functional
  ____ month
• D. Per person turnover cost (C / 12 A 50)
  ____LE
• E. Annual turnover cost (Multiply D B)
  ____LE
• Assumes 50 productivity through the learning
  period (C)

7
Employee Surveys

• An excellent tool to identify the attitudes of
  the employees towards their job and organization.
  
• Some of the survey are not well designed.
• If you conduct a survey, you should be ready to
  give feedback and address concerns.

8
Assessment Exit Interviews

• Determine who will conduct the interview.
• Develop a structured interview format.
• Emphasize confidentiality and sincere desire to
  benefit from interview.
• The interview can be conducted on the last day or
  after the employee has left the company.

9
Intervention Recruitment Selection

• Selecting the right people can greatly reduce
  turnover.
• Use Realistic Job Previews to manage applicants
  expectations.
• Personality tests to measure positive self image.

10
Thank you!

• ahmed.aminmohamed_at_guc.edu.eg