Employee Retention & Loyalty Jan. 27, 2012
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The document discusses how investing in people through compensation, tools, training and development can lead to business growth and increased profits by improving employee retention, loyalty and productivity. It cites a Cornell University study showing these people investments can increase revenue by 22%, profits by 23% and decrease turnover by 63%. By enhancing productivity and retention, it saves money while also promoting customer satisfaction. Surefooting HR expertise supports these goals through employee handbooks, assessments, coaching, team building and workplace safety programs.
Employee Retention & Loyalty Jan. 27, 2012
- 1. Good Employee Retention, Loyalty & Productivity lead to Business Growth, Profit & Value People investment not expenses Compensation , Right Employee Tools and Training Learning - Superior ↓Costs & Productivity ↑Work Quality Enrich Customer Value Proposition Employee goes beyond call of duty
- 2. Cornell University, NY Study on Impact of People Management Investment on Business Growth, Profit & Value Improves Performance Enhances Stakeholder Value • 22 %↑ Revenue • 23%↑ Profit • 63% ↓ Turnover Enhances Saves Money Productivity & Retention Promotes Customer Satisfaction • 14% ↑
- 3. Employee Retention, Loyalty & Productivity Cycle Compensation, Tools, Alignment and Engagement Training + Development Employee as Stakeholder – Value Philosophy, Values, Creation & Vision & Goals Surplus Employee as Policies, Stimulating , Customer – Enrich Procedures & Challenging Work and Experience Practices Clarity of Expectations Influence on the Organization Transparency Consistent Treatment Management Effectiveness
- 4. Surefooting’s HR Management Expertise Supports Employee Retention, Loyalty & Productivity Buy-in + Engagement Harmonious Employee & Safe Handbook & Workplace Change Human Management Resource Policy Manual Assessments + Coaching + Training = Team Building & High Workplace Safety Leadership & Health Program Performance Development Team Performance Leading Hiring Management Practices Assessments + Coaching = Behaviours & Improved Labour/ Motivators Employee Assessments = Right Performance Relations Employee Harmonious Workplace
Editor's Notes
- #2: Having the Right Employee is key to increasing and sustaining business growth, profit and value. Leads to Faster Learning that lowers Training Costs and Increasing Quality of Work Enriches Customer Value Proposition as customers are well-served as employee goes beyond call of duty – repeat calls, referrals etc Leads to Superior ProductivityThe Employer can ensure the Right Employee is retained and/or recruited always through:Improved CompensationProvision of Tools and Training required to keep the Right EmployeeMoney spent on Employees should be seen as investment not expenses – Cornell University research proves this.
- #3: Hiring Right Employee Promoting employee involvement and self-managementCreating a family-like environment and offering challenging jobs All threeHR practices:22% higher sales growth 23% faster profit growth 67% lower employee turnoverBoosts financial performance and employee satisfactionEmployee commitment Job involvementCustomer service orientation Helping behavioursEmployees see personal value in their jobs Less likely to quit Reduces the high costs associated with turnover.Being in Compliance with Employment Legislation:Avoid indirect costs and liabilities down the road Legal Liabilities Resulting from Employee Termination & Downsizing (Wrongful dismissal)Retaining and Educating Staff Avoid the considerable costs of recruiting and retraining new staff Avoid administrative Costs of Employee Termination & DownsizingAvoid loss of Morale and ProductivityAvoid loss of Competitiveness in Labour Market- loss of key staff
- #4: Many people assume that Compensation and Advancement Opportunities are the critical aspects of a job that helps to retain employees. Two studies conducted in 2006-7 and 2009-10 asking for a ranking of top five factors considered most important in a job from a list of 19 found that:Monetary Compensation ranked 8thAdvancement Opportunities ranked 10thRespondents said Stimulating , Challenging Work and Influence on the organization are more critical to job satisfaction.PDI Ninth House, Tom Daniel- Talent Management Magazine, July 2011Employee Loyalty hits a three-year low – MetLife 9th Annual “Study of Employee Benefits Trends released March 2011.