theory www.drakeintl.co.uk publications employee-retention

WHITEPAPERVOLUME TWO

EMPLOYEE RETENTIONREDUCING RECRUITMENT

BY INCREASING RETENTION

EMPLOYEE RETENTION

volume two © Drake International NA

WHITE PAPER

EMPLOYEE RETENTIONREDUCING RECRUITMENTBY INCREASING RETENTION


DRAKE I NTERNATIONALNORTH AMERICA

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CONTACT DRAKE FOR FURTHER INFORMATION ON HOW OURINNOVATIVE SOLUTIONS CAN CREATE A SUCCESSFUL

RETENTION PROGRAM THAT WILL REDUCE YOURSTAFF TURNOVER.

CALLOR VISIT

EMPLOYEE RETENTION


Retaining your best staff is essential to your company’s performance.

For managers, nothing feels better than having a productive and happy workforcewho are collectively focused on the organization’s success.

Drake offers valuable insight into understanding the causes of undesirable turnover.We will provide practical and actionable employee retention tactics that will have animmediate effect on improving top performing staff retention.

CONTENTS1 :: INTRODUCTION2 :: PEOPLE ARE VALUABLE3 :: RECOGNIZING THE PROBLEM4 :: SOLUTIONS

A :: Top Performer ProfilingB :: Orientation and OnBoardingC :: Performance ReviewsD :: Career Pathing and The Two-Way Value PropositionE :: Communication and Employee EngagementF :: Morale BoostingG :: Competitive CompensationH :: Non-monetary Reward and RecognitionI :: Employee SurveysJ :: Exit InterviewsK :: The Boomerang Effect

5 :: CONCLUSION6 :: RETENTION CHECKLIST

Look after your people and the business will look after itself.

EMPLOYEE RETENTION


1 :: INTRODUCTIONHave you ever phoned or revisited a client anddiscovered that the person you were dealing withis no longer working for the company? It’s anunfortunate and frustrating realization. All thattime – and often money – spent developing arelationship and sharing business strategies withsomeone you trusted went out the window. Nowrecall how you felt about the organization yourclient represented. Their reputation becameunreliable, you lost faith in their businesspractices and you probably lost interest inworking with them. So if you have felt this wayabout other companies, then your clients likelyfeel the same about yours if you have troubleretaining your top talent.

For managers, nothing feels better than havinga strong, successful, happy workforce in placewho are mutually focused on the organization’sperformance. Hiring top-quality individuals is animportant task on its own, but essential to anymanager’s ongoing process is a critical retentionstrategy. In fact, hiring does not end when thecandidate has accepted the position.Advantageous initiatives and well-plannedprocesses must be firmly in place andconsistently nurtured so that employees willhave reasons to remain with your company forgrowth to continue. Following a well developedstrategy will let you reduce recruitment throughretaining your top-performing talent.

Obviously, you cannot hold onto all your bestpeople, but you can certainly minimize the loss.Reducing employee turnover is a strategic andvital issue, beneficial to your company’s bottomline. It has taken considerable time and resourcesto attain a staff whom you are proud of – toreplace them starves your organization of manyessential success factors (money, overall attitude,productivity, etc.) and the company’s ultimatetriumph. The intent of this whitepaper is to helpyou discover the importance of retaining yourvaluable employees and provide you with a listof solutions.

2 :: PEOPLE ARE VALUABLELike an art collector who has spent time andresearch attaining that Great Master’s workwhich embodies the talent, skills and training ofthe artist, getting excellent staff requires thesame passion. The collector protects the paintingwith superior security and environmentalmethods. In your position as a manager of peopleyou must do whatever you can to keep thatpriceless individual who works hard for yourcompany and generates strong results.

As an experienced business person, you haveundoubtedly used, or are in the process of using,effective hiring tools to assemble what youbelieve to be the best staff, with exceptional skillsand who fit well into your company’s uniqueculture. In a competitive, professional world, topperformers are often made a variety of offersbefore they settle on one career position. But oncethey are working for you, they need reason andmotivation to remain.

The old adage “Look after the small things andthe big things look after themselves” can easilyapply to your workforce. “Look after your peopleand the business will look after itself”. It could notbe more relevant today as when it was first said.Your staff is more than employees. They arevaluable individuals with unique competenciesand characteristics who require appreciation asmuch as a paycheck. In fact, people are the singlemost valuable element within your organization.Without them, you simply cannot do business orgenerate revenue. It is not just human resourcecompanies that are in the people business – everybusiness needs excellent people to prosper. Canyou think of a Fortune 500 company that reachedsuccess without top performing people who havegrown and developed over time with thecompany?

Each individual who performs a function at yourorganization – no matter how junior or senior –are the puzzle pieces that fit together to createthe larger picture of success. Missing one of thosepieces puts a hole in the picture and stops yourcompany being successful. To keep them, yourcompany must develop a retention strategy withclearly defined goals.

EMPLOYEE RETENTION


3 :: RECOGNIZING THE PROBLEM

Who is ultimately responsible for staffretention?Retention starts at the top. Sourcing, hiring andretaining motivated employees is theresponsibility of the company’s governing boardand Leadership Team. Getting and keeping goodstaff demands focused, formal and informalpolicies and procedures that make retention aprime management outcome. Managers needto appreciate staff every day and constantlywork to keep them on board.

The HR department alone cannot reduceturnover. For significant, positive change,company leaders must establish distinctretention processes and programs within alllevels of an organization. After finding the rightpeople, it is management’s primary role to takeresponsibility for the success of their employeesincluding leading people towards performancegoals and targets.

Why are people leaving?If you are baffled as to why people are leavingyour company, then take a look at a typicalworkplace scenario:

Kevin had grown frustrated with his currentemployer. He felt he was very talented in his joband had won several key accounts as proof. Yethe hadn’t had a raise in two years, and his bossseemed incapable of saying anything nice abouthis work. Kevin was putting in a lot of overtimeand was stressed from the huge amount of workhe was expected to complete with decreasingresources. Past downsizings and employeereductions had left his department short-handed, and yet workloads were rising rapidly.He wasn’t sleeping well, and his home life wassuffering because he never had energy or timefor life outside of work.

Kevin had had enough and began interviewingwith other companies. But when he was made anoffer from a major competitor, he wasn’t surewhat to do. In some ways he liked his existing job.He recalled having faith and being happy with thecompany before the downturn and he liked hisfellow workers — although he knew that severalof them were looking as well. He couldn’t help butthink, maybe things would improve soon?

This scenario has become increasingly familiar incompanies in North America. The nature of workenvironments at all levels has become such thatemployees are faced with increased workloads,ever-stressed bosses, lack of incentives and fearof reductions. This has caused many talentedemployees to leave their current organizations.In most cases they are not blind to the fact thatthings might not be better elsewhere but theyare hoping for some recognition and perhaps abit of relief, even if temporary, from their currentsituation.

According to Dr. John Sullivan, an HR advisor toFortune 500 and Silicon Valley firms, there are anumber of factors that will contribute to aforthcoming wave of turnov er. New jobopportunities are steadily rising in fields thatwere once under performing. Fast online jobsearch resources let employees search and applyto new jobs easily. Globalization and off-shoringhave created a sense of discomfort and lack ofloyalty to companies. Increased corporaterecruitment efforts are aiming to snatch topperformers and the natural shift of age dynamicsmeans retirement levels will soon come in waves,leaving once unattainable roles open.

Never has it been more critical to organize yourcompany’s retention programs before highturnover takes hold and strongly impacts yourbusiness goals.

EMPLOYEE RETENTION


The High Cost of Employee TurnoverThe costs of high staff turnover can be incredible.Some of the substantial costs that occur when aperson leaves your organization include thefollowing:

1. Recruitment costs● from advertising to the time spent

interviewing and sourcing.2. Training costs

● orientation materials and trainers’ time (ex. call center agents require on average 4 - 6 weeks or more of classroom training).

3. Lost Productivity Costs● a new employee operates between 25%- 50% of productivity levels for the first three months, not including the time spent by existing employees to assist.

4. Lost sales costs● the loss of business when the role is vacant.

According to William G. Bliss, advisor toentrepreneurial companies, figures can easilyreach 150% of an employee’s annual salary. Thecost will be significantly higher (200% to 250%of salary) for managerial and sales positions. Forexample, if the average salary of employees in agiven company is $50,000 per year, the cost ofturnover at 150% of salary, is $75,000 peremployee who leaves the company. For thecompany of 1,000 employees who has a 10%annual rate of turnover, the annual cost ofturnover is $7.5 million.

What company can afford this? Not only are therethe direct financial costs of replacing staff butother repercussions include the loss of key skills,knowledge and experience, disruption tooperations and the negative effect on workforcemorale. In addition, high turnover represents aconsiderable burden both on HR representativesand managers who are constantly recruiting andtraining new staff.

The Impact To Your BusinessReplacing staff is obviously expensive. But inaddition a company’s reputation is also at stake.No one feels confident dealing with anorganization which cannot hold onto theiremployees. It suggests instability, poormanagement and a lack of good planning.Regardless whether an individual is let go orleaves on their own accord, more often than notthe employee leaves with a bitter taste in theirmouth. That feeling is taken with them – alongwith the skills they learned while working foryou – and their sentiments are often repeatedto future employers and their personal network.Reactively losing talented individuals candamage your company’s reputation for years tocome.

Lastly, constant high turnover creates unrest inpresent employees. Positions which are madevacant create increased workloads for otherstaff members – often outside their positionprofiles. The sense of instability and frustrationcan cause work backlogs and slow productivity.Yet, perhaps more fundamentally, theemployee’s lack of faith in the organizationwhen they see their co-workers departing willeffect productivity work levels in unbelievablynegative ways.

What are you doing about the problem?Dr. Sullivan says that most firms have by nowlong forgotten any of the lessons they learnedabout retention during the 1990s. Manymanagers have grown arrogant because thelast few years of high unemploymentguaranteed that most employees would haveto take whatever they dished out. Over 75% offirms have no distinct retention strategies andthose with plans have let them fall into neglect.

EMPLOYEE RETENTION


Even if you don’t have high employee turnovertoday, your company should look atimplementing retention strategies. Employeessee retention efforts as more sincere whenmanagers are not being forced to act due tohigh turnover.

“The first step to solving the employee turnoverproblem is to recognize that we indeed have aturnover problem,” said Bill Pollock, CEO ofDrake International, a global provider ofbusiness consulting and implementationsolutions, in his article “People are Everything”.

When seeking to resolve the problemsassociated with high turnover, companies mustfirst investigate the underlying causes. Theyneed to have in mind an appropriate level ofattrition by setting benchmarks against similarorganizations and taking into account the entirecost of turnover to the company.

Some issues may be addressed at a local levelby placing a greater emphasis on listening andresponding to employees concerns and ideas.Yet, in general, retention difficulties are likelyto require a company leader with the ability toengage the employees - using strategies suchas job satisfaction surveys - who can also createa broader, long-term plan.

If your company does not have effectiveretention strategies set firmly in place, then thetime to act is now.

EMPLOYEE RETENTION


4 :: SOLUTIONS

The Basic Elements of Retention StrategiesAs the economy improves and firms look to buildtheir talent strength, it is only logical that seniorleaders, managers and HR professionals willincreasingly look at retention as a major businessimperative.

Dr. Sullivan states in his article “Expanding theScope of Your Retention Efforts” that most newlyenacted retention efforts will not only fail — theydo so miserably. As someone who has beendesigning retention solutions for corporations forwell over a decade, Dr. Sullivan says the reasonfor this is that many firms define the goals of theretention program too narrowly. For example, ifthe goal is defined as merely to “keep goodpeople,” you are automatically dooming theeffort by failing to identify specifics that can bemeasured.

Rather, a broad set of carefully planned criteriais essential when building a strong retentionprogram. The solutions addressed in thefollowing section were recognized and createdby industry professionals whose experienceprove invaluable to any company, of any size.They have helped organizations realize theirproductivity goals through the retention of topperformers and the reduction of recruiting. Drakeconsults companies on the philosophy that givingcareful consideration to the retention of topperformers reduces the need for recruitment andsaves time and money. As a result, they havehelped organizations realize their productivitygoals through the following topics:

A :: Top Performer ProfilingB :: Orientation and OnBoardingC :: Performance ReviewsD :: Career Pathing and The Two-Way Value

PropositionE :: Communication and Employee EngagementF :: Morale BoostingG :: Competitive CompensationH :: Non-monetary Reward and RecognitionI :: Employee SurveysJ :: Exit InterviewsK :: The Boomerang Effect

A :: Top Performer Profiles

“Knowing how to select the right people, andin fact, actually selecting them is essential tosuccessful performance.” - Bill Pollock, “PeopleAre Everything”

It is important that both the organization andthe employee know what they want to get outof the job. Yet, unknown to most managers,retaining good staff ideally begins during therecruitment phase. A key challenge duringrecruitment is differentiating candidates whodo well in interviews and candidates who willdo well in the actual position. Often they canbe mutually exclusive. The goal for anyrecruitment strategy should be to attract a topperformer who will stay with the company foras long as possible. In order to hire those “nearperfect” individuals, an ideal role profile shouldbe created. If a company spends quality time,energy and focus to create such a profile itbecomes much easier to source qualifiedcandidates who will successfuly fill the position.

A candidate profile should be built aroundexisting top performer’s skills, knowledge andbehaviour. Using predictive performanceprofiling such as Drake’s P3 proves invaluablein this process. It will match candidates to thiscriteria and distinguish them as future keycontributors in your organization. Otherinterviewing techniques and assessments canclarify candidates who perform the job well, butP3 identifies and distinguishes the keybehavioural tendencies necessary for them tobe successful in their jobs and in the uniqueorganization which they are entering. Oncebehavioural traits are determined, candidatescan be separated into further categories basedon their training requirements.

It is important that both the organization andthe employee know what they want to get outof the job.

EMPLOYEE RETENTION


B :: Orientation and OnboardingTo retain the most desirable workers, employersmust first recruit them. As mentioned above,the actual hiring technique is an important stepin the process of building relationships thatencourage long-term employment relationships.

Once ideal candidates are hired, theirorientation to the company and the role isparamount. As mathematician Henry Block putit, “We are forced to rely on our people, whichis why we put so much emphasis on trainingthem.” Orientation is the critical “fitting in”phase of the training process. New hires areoriented to the workplace culture, trained in therole and learn the company’s expectedoutcomes. The orientation process mustprovide a clear understanding of the role andthe performance targets necessary to attain tocomplete the role successfully. By establishingthese targets from the outset, the employee willnot be faced with surprise expectations,instilling both confidence and reliability.

Therefore, it is the responsibility of thecompany’s key stakeholders to develop theseexpectations prior to any sourcing for a newposition and communicating it to the newemployee. If the position profile incorporatesthese targets and is realistic in scope, newemployees will enter the position with realisticexpectations of what they must achieve. Ofcourse, time is of the essence and a great wayto personally communicate these messages isto utilize technologies such as Drake Interactive,a web-based messaging service designed tobring to sight and sound to information oftendelivered in flat, hard copy documents.

Many employers have experienced thefrustration of hiring seemingly ideal candidatesfor specific positions only to have them leaveimmediately after the orientation session. Inmost cases, this introduction to the companywas neither positive or reassuring enough forthe new employee and they left due tooverwhelming bewilderment or fear. So, to gain

the highest productivity and the greatestlongevity, wise employers should engage theirnew hires with an extensive, in-depthonboarding process.

Onboarding continues far past the point whereorientation programs typically end. Someorientation experiences conclude after a coupleof days of the employee’s first day. Yet, a numberof more enlightened companies have extendedtheir orientations for a number of months,conducting follow-up sessions on a periodicbasis. This longer approach often serves todeepen the bonds with the employee byproviding more attention, human interaction andinformation.

Additional rich media such as interactive webcollaboration tools offer the opportunity for newemployees to ask questions and resolve troublingissues. Managers who employ technologies suchas Drake Interactive and PictureTalk, which pro-vides real-time collaboration while conductingsmall or large meetings, find this type ofapproach delivers the results necessary tocommunicate strongly to all candidates. Issuesmay be addressed in person and the humaninteraction is ideal for reinforcing success withinthe company. It lets the new employee know thatcommunication is strong within theorganization, thereby reducing turnover or lossof interest by employees who stay yet remainunhappy.

C :: Performance ReviewsPositive feedback on a regular basis does moreto propel success in an individual than any otherperformance related tactic. Performance reviewsare a chance to formally communicate anemployee’s contribution to the company. Aproperly conducted performance review providesthe employee and their manager an opportunityto step back, look at the bigger picture of theemployees performance and to discuss in broadstrokes whether the performance is below, at orabove company expectations.

EMPLOYEE RETENTION


Performance Reviews increase the chance of anunderperforming employee improving theirperformance.

A partnership with a company such as Drake, whoconsults on reviewing techniques and projectdevelopment, can result in effective performancereviews. Putting these into action within theworkplace can be immediately instituted toimprove performance.

Quite simply, negativity does not work. We nolonger live in those dark Victorian times whenunrealistic and iron-fisted tactics work to get anoptimal performance from an employee. Today’sworkplace requires that criticism must come withsupport and a sense that the company is thereto assist the employee in achieving and attainingsuccess. Proved time and again, even the mostaverage of employees are likely to raise theirquality standards if they are encouraged throughconstructive, open reviews. Always recognizesuccesses and never berate an employee whoworks hard but whose work lacks companystandards. In fact, these individuals are often themost open to suggestions of improvement andare ready to be molded into the most ideal ofemployees.

D :: Career Pathing and the Two-Way ValuePropositionAs the American poet Oliver Wendell Holmessaid, “I find the great thing in this world is notwhere we stand, as in the direction we aremoving.” Such motivation is vital for long termretention. Employers must balance companygoals with employee’s personal goals. It standsto reason that a happy, content employee has anequal mix of successful professional and personallives. Countless studies have determined thatpeople who are experiencing problems - whetherillness or lack of focus on goals, etc. - generallyunderperform in their jobs. After all, they arepeople first and employees second.

So, in order to make sure that your employeesrealize that the two aspects of life are valued in

the workplace, it is imperative that yourorganization develops a value proposition thatembodies these concerns. Essentially, this two-way value proposition is the marrying ofcompany goals with personal goals. To achievethis, involving a third party organization, likeDrake, can help to facilitate candidconversations, identify core issues andencourage the expression of their goals whilejointly mapping future plans. Drake can providecustomized certification programs to helpidentify the employee’s suitability for otherpositions and career development. Asmentioned earlier, Drake’s P3 and Drakewize, askills evaluation tool, can be modified toidentify the skill sets and strengths theindividual possesses and what positions theyare most suited towards.

A strong career plan will provide a sense of hopein the future and comfort in the fact that theircompany is concerned in them as an individual.The key to this plan is to marry the company’sgoals with personal goals, in essense, the realnuts and bolts of employee engagement. It islike envisioning a journey, the two are takingtogether. The result is an employee withaspirations who will see that their current roleshould be performed to the best of theirabilities in order that they may continue to thenext position. The credibility this establisheswith the employee will do more to solidify theintention to stay more than any gift or bonus.

All top performers aim to accelerate theircareers. Assisting individual staff members infinding new positions within the company maybe the best and most direct way to influencethem to stay. Organizations oftensubconsciously erect numerous bureaucratichurdles that make moving around tough, orthey simply do not offer ways for an employeeto learn about possible openings. If employeesstay challenged and in continual development,they will generally remain with theorganization.

EMPLOYEE RETENTION


Some form of information platform, such as awebsite or job board, or easily distributed digitalannouncements, is a great way to let employeesknow there are vacancies in other departmentswithin the company. One such effective tool tocommunicate vacancies is Drake Interactive’smessaging which can easily create a “speakingmemorandum” distributed in an email tointernal staff letting them know of current andfuture vacancies. Deconstructing barriersmakes it easier for people to move betweenpositions within the organization as it is outsidethe company. This could mean that certaincurrent practices may need to change.

Organizations with low turnover generallyfollow several rules that guide the internalapplication and transfer process:

1. Individuals should be able to interview fornew positions without permission fromtheir present managers.

2. Individuals should not have to completeapplication forms and if resumes are usedthey should be kept very simple.

3. Individuals should be able to leave theircurrent position with the fewest amount ofobstacles as possible – it should not be theirresponsibility if their previous position hasnot been filled.

4. Salaries offered should be similar to thosean external hire would receive.

Outsourcing internal applications andtransferring to a solutions company such asDrake can streamline this process from theapplication stage and help to fill the vacanciescreated from relocation or transfer. From asalary point of view, Drake has the expertise inplace in the form of labour market knowledgeto help clients create a balance betweenexternal and internal compensation equity.

E :: Communication and Employee EngagementNurturing staff should be ongoing, a day-to-dayactivity. Clear and open communication is thebest foundation for nurturing staff. Nothing saysrespect or models empowerment more thanmanagers who actively listen to their employees.The active listener appreciates the employee’sfeelings, input and concerns which can be themost cost-effective way to acknowledge people.Being heard builds self-esteem and employeeswith high self-esteem feel trusted and valued andare less likely to feel marginalized.

People work for people, not companies, andpeople need to communicate effectively toensure that their voices are being heard and theirconcerns addressed. More companies aredevising communication plans to keepemployees apprised of company performanceand business objectives. Keeping employees “inthe loop” increases their feelings of inclusion andhelps them realize their importance to thecompany and it’s strategies and fosters the opencommunication environment successfulcompanies have well ingrained within their culture.

Technology plays a critical role in communicatingcorporate messages to the ranks. For instance,through the internet, employees can learn aboutemployment benefits, job openings and thelatest product initiatives. They can also get a firstlook at annual stockholder presentations viaonline video presentations given by COOs andCEOs. Attaching rich media interactive messages- using a tool like Drake Interactive - creates apersonal touch to these communications andgoes further to instill key stakeholderinvolvement in all aspects of the company. If newideas or procedures are to be rolled out, ratherthan a static email or direct mail handouts, manycompanies are enjoying the benefits of web-conferencing tools to facilitate company widemeetings. PictureTalk will let the audience andmeeting hosts intermix in real time regardless oflocation. Issues and questions can be resolvedimmediately rather than elapsed time filled withconfusion and frustration which can often resultin departing employees.

EMPLOYEE RETENTION


F :: MoraleWhether employees are heading for the exits atan alarming rate or because employee relationsissues are becoming increasingly problematic,the issue of morale is critical to operationalsuccess and should be the cornerstone for anyretention strategy. Morale directly affects thebottom line through its impact on productivity,customer service (and therefore customerloyalty), turnover, absenteeism and litigation.

Companies must be committed to investing inmorale boosting initiatives to reflect both theirsincerity towards the issue and their seriousapproach to retaining staff. Goodies, gimmicks,and gala events on their own, don’t lead to highmorale. Nor do any other quick-fix solutions. Infact, when such events and programs contradictworkers’ daily experience of not beingrespected,valued or appreciated, theseapproaches often lead to an increase in cynicism,distrust and eventual turnover.

What does lead to high morale is an intrinsicallyrewarding work experience where:

●●●●● employees feel respected, valued, andappreciated

●●●●● employees get to be players and not justhired hands

●●●●● employees get to make a difference

With such a work experience, employees don’tneed to be ‘bribed’. They don’t have to be pliedwith treats to make them want to come to workand do their best. Morale problems areexperiential problems; they’re a result of anegative or dissatisfying work experience due tothe actual job itself, one’s relationship with theirboss, not having adequate training or a myriadof other factors that affect morale. Since moraleproblems are due to an unsatisfying workexperience, the answer is in changing the workexperience. More specifically, the answer is increating a work experience that itself isrewarding (not always fun, but rewarding).

Material solutions or events don’t satisfyexperiential needs. In the workplace, the needto feel that you make a difference, the need tobe proud of your work and your employer, andthe need for autonomy are just a few of theexperiential needs that impact morale andproductivity. If these needs are not met, nomaterial “solution” or event will make adifference. A combination of some of thesolutions described here all play a part inengaging employees in elevating and driving aculture with a strong and positive morale.

G :: Competitive Compensation, Benefits andIncentive ProgramCompetitive compensation and benefitpackages including salary, bonuses, stockoptions, and the traditional health insuranceand retirement packages are tools that somecompanies use to help keep employeesonboard.

Salary increases should be structured to staycompetitive within your market sector,geography and the position.

Employers should distinguish between top andbottom performers by ensuring that that thoseindividuals performing in the top quartile arepaid over and above those in the bottomquartile. You may consider using 3rd party salarysurveys, such as Drake’s Annual North AmericanSalary Survey, to benchmark your workforce’ssalaries in your market sector and geography.Due to the difference in cost of living in variousgeographic sectors, you will want to understandhow to apply salary inflators and deflators inyour company to ensure salary equitiesamongst your employee base.

Carefully developed bonus or profit sharingprograms provide encouraging, goal-orientedinitiatives for employees to aim towards. Thegoals for success set out by the manager and

EMPLOYEE RETENTION


the employee are more attainable if realisticand practical incentives are firmly in place.

Benefit programs are important to employees.Benefits can extend beyond the traditionalhealth insurance and retirement programs andcan include:

●●●●● employees feel respected, valued, andappreciated

●●●●● employees get to be players and not justhired hands

●●●●● employees get to make a difference

H :: Non-Monetary Reward RecognitionCreative non-monetary reward and recognitionprograms can be powerful tools. Increasingly,companies are using informal methods forrewarding staff while financial compensationis becoming less the norm for recognizingemployee accomplishments. Reward systemsthat are person-based are proving to beeffective especially when recognition is linkedto personal desires or needs such as:

●●●●● Time Off●●●●● Flexible work hours●●●●● Job-sharing●●●●● Office Space●●●●● Home Office●●●●● Special Projects, Committee Involvement●●●●● Public Acknowledgment●●●●● Career development and training●●●●● Company organized discounts such as

fitness memberships, discounts oncompany products / services, discounts onclient’s products / services

●●●●● Community and Charity Involvement

One of Fortune’s 2001 “100 Best Companies toWork for in America” companies hasestablished the “Headstart for the Holidays”program which matches up companyemployees with hundreds of needy childrenover the holidays.

The most important part of any informal rewardand recognition system is that it is linked toorganizational values and that it is givenpersonally from management!

I :: Employee SurveysIf you were a doctor, you would never prescribe atreatment or medication without firstdiagnosing the problem, would you? Well,reducing high turnover should be approached inthe same way. Implementing regular employeesurveys allow employers to take the temperatureof employees and gauge a company’s culture andmood. The results will allow organizationalleaders to anticipate issues in advance ofturnover.

Collecting survey data and understandingconcerns is only the first step. Managers need tocraft and implement policies that meet employeeconcerns head-on. Organize company-widecommunication sessions that feed back surveyresponses and associated actions, this letsemployees know they are being heard and thattheir issues are being addressed. Employeesurveys are best delivered by a third partyconsultative company such as Drake which candeliver an objective evaluation and encouragecandid responses.

J :: Exit Interviews

“Facts do not cease to exist because they areignored.” Aldous Huxley

It is unrealistic to think that good people can betrapped. So, when people do leave it is importantto know why and adjust hiring profiles, policiesand practices within the company to address theconcerns. A structured exit interview programcan play an integral role in employee retention.Remember it is important to learn from theinformation gleaned in these interviews. By notpaying attention to the results turnover willcontinue for the same reasons.

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Consider using a 3rd party organization to createand conduct your exit interviews. HR consultingexperts such as Drake are an objective resourcewhich encourage employees to act more openlyand honestly with their answers. Drake has aninnovative web based service that helps youconduct staff exit interviews from anywhere inthe world. It also assists in the collation,reporting and analysis of interview results moreefficiently than manual efforts. The informationcollated from these interviews is excellent fordeveloping and adjusting job profiles andrefining the position for the next candidatefurther improving the chances of retention.

As you create your company’s exit interviewquestionnaire it is important to strike the rightbalance between the need for information andsurvey length.

There are five key guidelines that should be keptin mind to help ensure that the end result is auseful and effective survey:

1. Do not focus solely on the employee’s reasonsfor leaving but also on the employee’sattitudes and experiences that identify theissues and concerns which may not surfacewhen asking about reasons for leaving.

2. Ensure that there is more than one way foremployees to express their reasons forleaving – including several open-endedquestions for them to include their owncomments – to get a full perspective on theirdecision to leave.

3. Incorporate key behavioural measures suchas the employee’s satisfaction with the jobitself, how well the employee’s jobresponsibilities were defined, perceivedopportunities for advancement and theemployee’s perspective on the amount oftraining, feedback and recognition received.

4. Recognize that exit interview practices needto be implemented consistently and in sucha way as to encourage employees to sharetheir opinions honestly.

5. Incorporate the ability to examine resultsnot only on the basis of individual resultsbut for the organization as a whole.

K :: The Boomerang Effect

The word ‘boomerang’ has recently been usedto describe employees who return to anorganization. Boomerang employees areusually very committed to their position and thecompany and are therefore can become thesome of your best recruiters for new talent andmentors for existing employees. The time theyhave spent away from the organization hasgiven them the additional knowledge of themarket, and they have personally experiencedthat perhaps the grass isn’t greener on the otherside.

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5 :: CONCLUSIONAs identified in this “whitepaper”, many issuesare at stake when retention is not consciouslyprioritized. From a damaged company reputationto low employee productivity, high turnover isnegative and costly. Keeping employees whooutperform beyond expectation reduces theneed to recruit and cuts related hiring andtraining costs. Put simply - you’ll have asuccessful company if you treat your employeeswell so they want to stay with you.

Hiring top-performing and enthusiasticemployees requires a certain knack. But keepingthose employees is an art. Increasing retentionrequires careful planning and implementationresulting in a solid program which incorporatesmany or all of the solutions mentioned in thiswhitepaper. Incorporating these techniques intoyour internal company planning does notnecessarily require expenditure. In fact, many ofthe retention strategies mentioned above costlittle or no money to implement and requirenothing more than carefully planned timededicated to longterm goals. Companies mustrealize that by keeping their turnover levels low,they are in fact improving their bottom line. Thecost of replacing employees is an excessive onewhich most companies cannot afford. Comparedto the cost of retaining existing top performingemployees, the cost difference and timeconstraints is staggering.

It is essential that every recruiter and managershould be concerned with retention from thestart of any recruiting program. The processshould be conscious of the end goal: to keep theindividuals who outperform in your company.Making the new employee aware that theintention is to keep them as long as possibleencourages the employee in committing tolongterm goals and planning within theorganization. No retention strategy is static butshould be constantly evolving to suit thechanging needs of the workforce.

This complimentary whitepaper is designed tohelp you evaluate your employee retentionprogram to ensure that your organization hasthe best possible practices in place to reducecostly turnover. If you want to partner with aforward thinking organization who will deliverquantifiable results to your retention problemand, ultimately, your bottom line, contact aDrake office in your community. Our innovativeline of proprietary technologies and BestPractices Consulting Services will make yourretention strategies operate efficiently andeffectively.

EMPLOYEE RETENTION


6 :: RETENTION CHECKLIST

1. Recognize that people are valuable . Think of them as a great art collection that has takentime and money to develop. Take of them, nurture them, and you’ll keep them.

2. Recognize you have a problem . Once understood and the responsibility is identified, thecosts of high turnover will motivate you into creating a strong retention program.

3. Find out why people are leaving . The answer to this question is the first step to realizingyou have a problem and can be the basis for your retention strategy.

4. Set goals for your retention strategy.

A Top Performer Profiling – Begin at the recruitment stage by comparing candidatesto your best employees.

B Orientation and OnBoarding – Well planned, post hiring “fitting-in” plans instilllongterm employee confidence in the organization.

C Performance Reviews – Performance feedback on a regular basis propels success.

D Career Pathing and The Two-Way Value Proposition – Paralleling company goals withpersonal goals and planning for success in the future creates motivation tooutperform in current positions.

E Communication – Listening commands respect and representation.

F Morale Boosting - Respect, value and appreciate employees does more than financialcompensation to increase retention

G Competitive Compensation – 3rd party salary surveys allow you to stay current andyour employees to stay with the company.

H Non-monetary Reward and Recognition – A variety of rewards will increase employeegratification and happiness.

I Employee Surveys – Let your employees be heard and listen to their concerns.

J Exit Interviews – Learn from the recently departed and change the existing profilesand perhaps company structure.

K The Boomerang Effect – Tap the resource of returning employees whose experienceand connections are invaluable.

5. Utilize the unique and innovative solutions created by Drake to solve your retention problems.Drake specializes in providing the best, most suitable and well qualified people and productsfor your organization. Our intention is to let our services outperform beyond your expectations,reducing your need to recruit new employees and developing a workforce who are dedicatedto your organization.

EMPLOYEE RETENTION


ABOUT DRAKE

Members of The Drake International Group of Companies are global leaders in the field of humanresources, consultative management, staffing and technology solutions.

For more than 50 years, Drake International has helped North American businesses solveproductivity problems and recruit the best people. We begin with a business needs analysis whichpinpoints the optimal way in which we can help your organization achieve its strategic objectivesand overall workforce optimization strategy.

Using a partnership approach to deliver measurable results, Drake optimizes a company’sprofitability applying a blend of flexible staffing, permanent recruitment and technology solutions.Using innovative strategies Drake reduces costs, increase revenues and customizes HR solutionsincluding outsourcing of non-core business functions. Our unique vision plans to hire the rightpeople for our clients the first time, thus saving them money by reducing their need for recruitment.

Drake’s operating philosophy is based on the principle that organizations and people are at thehighest level of productivity when they are working with the right skills, knowledge and behaviours,using the best processes and technologies.

We aim to assist your organization in achieving heightened productivity, performance and profitstandards through the effective use of people and the application of proprietary technologies tohelp match workforce levels to workload.

EMPLOYEE RETENTION


COPYR IGHT©DR AKE INTERNATIONAL NAALL R IGHTS RESERVED.DR AKE, ITS LOGO, AN DDR AKE OUTPER FORMARE TREADEMARKS OFDR AKE INTERNATIONAL.

DRAKE INTERNATIONALNORTH AMERICA

VANCOUVER•EDMONTONCALGARY•WINNIPEGLONDON•HAMI LTONOAKVILLE•MISSISSAUGATORONTO•BELLEVILLEBROCKVILLE•KINGSTONCORNWALL•OTTAWAMONTRÉAL•QUEBEC CITYMONCTON•HALIFAXPLANTATION•LOS ALAMITOS

CONTACT DRAKE FOR FURTHER INFORMATION ON HOW OURINNOVATIVE SOLUTIONS CAN CREATE A SUCCESSFUL

RETENTION PROGRAM THAT WILL REDUCE YOURSTAFF TURNOVER.

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