Six Criteria for Productive Employee Activity

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Ways to Reduce Turnover and Improve Employee
Satisfaction
Presented by Margot Uson
Presented to Sika Canada Inc.
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Reducing Turnover

• Does turnover really matter?
• How do you know if you have a turnover problem?

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Canadian Turnover Rates

• All Sectors 14.8

• Wholesale/Retail 35.9
• High Tech/Telecom 18.6
• Natural Resources 16.7
• Services for Profit 14.2
• Insurance 14.2
• Banking/Finance 13.8
• Manufacturing durable 10.8
• Not for Profit 10.4
• Manufacturing non durable 9.8
• Transport/real estate/utilities 6.7
• Source Mercer Policies and Practices Survey 2003

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How much does turnover cost your organization?

• Separation rate ()
• Total Separations/Month X 100
• Average Ees on Payroll
• Avoidable Turnover ()
• Total Separations - Unavoidable X 100
• Average Ees on Payroll
• Ees Employees

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Time for New Hires to Reach Full Productivity

• Executive ex/in 26 / 16 wks
• Manager ex/in 25 / 14 wks
• Professional ex/in 21 / 12 wks
• Sales rep. ex/in 16 / 12 wks
• Cust. Serv. Rep. ex/in 12 / 6 wks
• Technician ex/in 12 / 9 wks
• Admin./Office ex/in 12 / 8 wks
• Operator ex/in 8 / 4 wks
• Source Mellons HR and Investor Solutions
  Learning Curve Research Study

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Other Critical Issues

• Canadian population median age is 40
• 30 increase in skilled jobs in last 10 years
• Critical Sectors agriculture, education, public
  administration, utilities, transportation,
  scientific and technical services
• Shortage of skilled workers
• Source Canadian Technology Human Resources Board

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Why does Turnover occur?

• What are the
• INDICATORS
• WARNING SIGNS
• RED FLAGS

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Some Causes of Turnover

• Retaining the Wrong People
• Retaining Right People in Wrong Jobs
• Use of Recruiters instead of Promoting from
  Within
• No Links between Employees and Succession Plans
• Lack of Recognition and Respect for Employees
• No clear career paths

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More Causes of Turnover

• Inadequate training
• Unskilled supervisors/managers
• Organizational climate - Low morale
• Favoritism or Harassment
• Lack of Adequate Communication or Information
• Poor Management of Performance
• Reward or Compensation System

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What to do ........?

• WHO IS RESPONSIBLE FOR IDENTIFYING THE PROBLEM?
• Human resources?
• Line Management?
• The CEO?
• HOW WILL THE PROBLEM BE IDENTIFIED?

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Finding The Problem.....

• Identify what is causing the turnover....
• Employee Survey
• Focus groups
• One on One meetings

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• 8 Ways to Improve Employee Satisfaction

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Improving Employee Satisfaction

• 1. Recognition is the top motivator of
  performance
• Informal Rewards
• Formal Rewards for Specific Achievements and
  Activities
• Formal Reward Programs

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Improving Employee Satisfaction

• Effective Recognition
• Match the reward to the person
• Match the reward to the achievement
• Be timely and specific

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Improving Employee Satisfaction

• 2 Communication
• Ensure understanding of the companys values and
  business strategy
• Communicate often
• Manage the grapevine
• Communicate in person

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Improving Employee Satisfaction

• 3. Company Policies
• Have company policies
• Make sure employees understand them
• Enforce policies consistently
• Follow through

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Improving Employee Satisfaction

• 4. Manage Performance
• Set SMART Goals with employees/teams
• Identify Key Performance Indicators
• Monitor performance regularly
• Review performance annually
• Reward achievers
• Manage under-performers

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Improving Employee Satisfaction

• 5. Resolve Employee Problems
• Do not let problems linger
• Find the cause
• Identify solutions
• Implement, track and measure

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Improving Employee Satisfaction

• Some Examples...
• Harassment
• Discrimination
• Dishonesty
• Poor performance
• Absenteeism
• Disregard of Co. Policies

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Improving Employee Satisfaction

• 6. Compensate Fairly
• Salary Surveys
• Salaries and Ranges
• Pay Equity
• Incentives short term
• long term
• Benefits / Pension / Savings Plan
• Employee Communication

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Improving Employee Satisfaction

• 7. Train and Develop
• Develop a Learning Culture
• Train for the current job
• Identify Future Career Path
• Fit into Corp. Succession Plan
• Encourage external learning

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Improving Employee Satisfaction

• 8. Health and Safety
• Make HS a top priority
• Keep employees involved
• Train employees continuously
• Work life balance

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Ways to Reduce Turnover and Increase Employee
Satisfaction

• 1. Recognition
• 2. Communication
• 3. Company Policies
• 4. Manage Performance
• 5. Resolve Employee Problems
• 6. Compensate Fairly
• 7. Train Develop
• 8. Health Safety

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Conditions for a successful organization
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Ways to Reduce Turnover and Improve Employee
Satisfaction

• MERCI - THANK YOU
• Margot Uson