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w7-Retaining Talent: Replacing Misconceptions With Evidence-Based…
w7-Retaining Talent: Replacing Misconceptions With
Evidence-Based Strategies
background:
the costs associ- ated with recruiting, selecting, and training
new employees often exceed 100% of the an- nual salary for the position being filled
concern for : retention management
many remain because there are fewer exter- nal opportunities,
54% likely to seek new jobs once the economy improves
PB:
many managers hold important misconceptions about turnover.
believe that turnover is uniformly bad, that most employees quit their jobs because of pay, that job dissatisfaction is the primary reason people leave, that there is little managers can do to affect individual turnover decisions, or that generic best practices are the best way to manage retention.
Effec- tive evidence-based management requires ac- cessible systematic reviews of evidence
Creating a Shared Understanding
Misconception #1: All Turnover Is the Same, and It Is All Bad
can be beneficial
Defining Turnover
voluntary and involuntary
dysfunctional and functional turnover
dyn===harmful
some turnover=== unavoidable
Understanding Turnover Costs
no single appropriate formula to determine turnover costs
Addressing the Growing Importance of Turnover
globalization and an increased reliance on technology may create demand for workers with skill sets that U.S. col- leges and universities are not providing
Knowledge of Underlying Principles and Cause-Effect Relationships
Misconception #2: People Quit Because of Pay
Organizational Equilibrium and the Turnover Process
tan- gible rewards such as pay, there can also be other types of inducements such as working conditions, relationships, or future opportunities.
turnover decisions involve a process in which individuals evaluate their current job against possible alterna- tives, develop intentions
Dif issue: not only do employees have high ease of movement, but they may also be more difficult to keep satisfied.
Turnover Predictors
The relationship an individual employee has with his/her immediate supervisor/manager plays a critical role in many turnover decisions;
Role clarity and role conflict are impor- tant;
Although compensation is clearly impor- tant, pay level and pay satisfaction are typically relatively weaker predictors of individual turnover decisions
pay increase may not be the most effective way
De- mographics are relatively weak predictors: educa- tion, marital status, sex, and race are only weakly related to turnover;
Misconception #3: People Quit Because They Are Dissatisfied With Their Jobs
job dissatisfaction=one of the most consistent attitudinal predictors of turnover
but it might be the driving force in fewer than half of individual turnover decisions
Alternative Paths to Turnover
individuals who have scripts or plans in mind that involve considering quitting in response to certain events,
1 characterized by the traditional view of the turnover process described earlier.
quit despite being relatively satisfied, without hav- ing a script in place, and perhaps even without searching for an alternative.
Some employees, however, leave jobs with which they are quite satisfied
Job Embeddedness
ways that employees become embedded in their jobs and their communities over time
3 kinds of connections: links, fit, and sacrifice.
Links are connections with other people, groups, or organizations, such as coworkers
design work in teams, pro- vide mentors, encourage employee referrals, and support community involvement
Sacrifice represents what would be given up by leaving a job, and could include financial rewards based on tenure, a positive work environment, promotional opportunities, and community status
tie financial incentives to tenure, provide unique incentives that might be hard to find else- where, encourage home ownership through home- buying assistance, and develop career paths that do not require relocation.
Fit repre- sents the extent to which an employee sees him- self as compatible with his job, organization, and community
provide realistic information during recruitment, incorporate organization fit into employee selection, provide clear communi- cation about organization values and culture, re- cruit locally when feasible, provide relocating em- ployees with extensive information about the community, and build organization ties
Misconception #4: There Is Little Managers Can Do to Directly Influence Turnover Decisions
●there are evidence-based human resource practices associated with turnover
● Recruitment, selection, and socialization practices during organizational
entry affect subsequent retention
● Managers can influence the work environment and turnover decisions
through training, rewards, and supervisory practices
Misconception #5: A Simple One-Size-Fits-All Retention Strategy Is Most Effective
retention strat- egies: systemic strategies
based on general principles of retention management and are in- tended to help reduce turnover rates
targeted strategies
specifi- cally on organization-specific turnover drivers and are intended to address organization-specific issues and often to influence turnover among certain populations of employees
make decisions with incom- plete and uncertain information
barrier to good scan making: pretending that knowl- edge is complete
Concluding that turnover is a concern, that pay is the major issue influencing turnover, and that increasing compensation is the best strategy would suggest a narrow decision frame.
1..Developing the Ability to Diagnose and Adapt Turnover Analysis to Diagnose the Extent to which turnover is a problem
Formulae need not be iden- tical for every job, but often vary based on factors such as job type or level, employee type, and employee performance level.
turnover beyond a certain rate would be highly dysfunctional
2..View Turnover Analysis Through the Lens of Organizational Context
stable or even decreasing turn- over could be considered problematic, such as if the organization is retaining too many poor per- formers
plans to decrease the size of the workforce through offering early retirement or severance packages are designed to encourage turnover among some employees, while simultaneously placing an emphasis on retaining certain other key employees
When turnover costs are too high to tolerate, the same approaches apply, except it may be appro- priate to consider a range of both targeted and sys- temic strategies that may be resource-intensive to implement but still provide a positive return on investment.
4..Putting It Into Practice
turn- over is an organization-wide problem and focusing on increasing job satisfaction across all employees
3..Collect Data to Diagnose and Adapt Cause-Effect to a Particular Context
Future Directions
narrow the gap bw science and practice
by replacing several com- mon misconceptions with evidence-based strate- gies,
1..more research on boundary conditions that specify under what conditions turnover theories hold for what subgroups of em- ployees.
2..more research involv- ing interventions and experimental or quasi-ex- perimental designs
3..research more broadly on
the effectiveness of evidence-based management in general.
