Turnover Reduction: A Complex (But Achievable)

GoalPresented by:

Ted Kinney, Ph.D.Tracey Tafero, Ph.D.

Select International, Inc.

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Housekeeping

Introductions

Tracey Tafero, Ph.D. - Director of Consulting• I/O Psychologist, Clemson University• Leads a team of consultants developing and

implementing talent solutions, spanning all industries and levels within organizations

Ted Kinney, Ph.D. - Director of R&D• I/O Psychologist, Pennsylvania State University• Extensive Turnover Consultation experience• 15+ years implementing talent solutions in organizations

Topics for our time together today

• The presenters’ unique perspectives• Why do we care about turnover?

– The consequences of turnover• What are your turnover drivers?

– The antecedents of turnover– Some solutions for your consideration

• A few case studies from our experience• Conclusion and Discussion

Our Unique Perspective

• We have a unique position on which to view what is happening in our labor markets

• Turnover has become a more important pain point than ever before

• Ted’s and Tracey’s unique experiences have led us to the same conclusion . . .

Why do we care about turnover?

• Consequences – the no brainers . . .– Separation costs

» HR staff time for exit interviews» Temporary coverage

– Replacement costs» HR staff time to review resumes & conduct interviews» Advertising» Training of new employee(s)» Productivity loss

Why do we care about turnover?• Consequences – the not so obvious . . .

– Well being of workforce– Stress– Safety– Teamwork

– Cultural impact– Client loss– Snowball effect

• SO what is the real cost? 1.5x to 2.5x total comp!– . . . AT LEAST!!

So, yeah, you know it’s a problem . . .

• . . . What is the solution?

– Well, let’s start here

Individual Difference Drivers

Causes of turnover due to the person

• Impulsivity

• Locus of Control

• Adaptability

• Self Esteem

• Integrity

• Growth Need Strength

• Fit

Strategies to combat these challenges

• Implement an assessment

• Collect biographical information

• Provide an accurate RJP

• Alternative recruitment strategies

Internal Drivers

Causes of turnover internal to the organization

• Culture• Pay & benefits• Job design• Workload• Autonomy• Growth opportunities• Training opportunities• Leadership• Communication• Job related shocks• Relationships

Strategies to combat these challenges

• Socialization practices• Training & development• Justice & fairness• Tie rewards to retention• Train leaders • Remove abusive

supervisors• Set challenging, but

achievable goals

External Drivers

Causes of turnover external to the organization

• Unemployment rate• Competition• Reputation• Local applicant pool• Industry & occupational

trends• Industry stability • Location• Size

Strategies to combat these challenges

• Conduct a market analysis

• Determine the areas where you can excel

• Recruitment strategies

Individual Intervention Case Studies

• Most of our research outcomes focus on individual interventions . . .

– An illustrative series of Healthcare Individual Differences Interventions in different situations

• CASE 1 - Focusing only on the assessment• CASE 2 - Focusing on everything• CASE 3 - Plugging in an assessment at a strong EOC

Focusing only on assessment• . . . Ignoring labor market and culture

• These are nice returns, but 31% is not where they want to be . . .

Focusing on everything• Taking seriously the journey to become EOC with best-in-class talent systems

• Original overall turnover was 24%– Post implementation

• Along with other critical outcomes . . .– 16 percentile point improvement in patient satisfaction– Reduced time to fill by 44%– Improved staff perception of focus on safety by 10%– Improved staff perception of involvement in patient experience initiatives by 18%

3 months or less <1%6 months 4.0%

1 year 6.3%

When an established EOC . . . • . . . Implements an assessment

– When you focus on all three drivers, amazing results are possible

Summary

• Achieving Turnover Goals is possible, but . . .– It is complex– Requires serious investigation into all drivers– Unless you are lucky, focusing on one driver won’t get you

there

• If you focus on all three sources through detailed investigation . . . – SINGLE DIGIT TURNOVER IS POSSIBLE!

Select can help you understand your turnover

• We have developed a process to help organizations understand turnover– Multifaceted approach to investigate all three drivers– Tools to collect data on key turnover antecedents– Provide detailed insight on turnover reduction strategies– Provide recommendations and likely returns from suggested interventions

• This process can be deployed at varying levels of resource expenditure– Feel free to contact us to discuss our approach to turnover diagnosis

Questions from you

THANK YOU!