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The Electronic Recruiting News is a Free Daily Newsletter For Recruiters, HR Managers, Advertising Agencies and Clasified Advertising Operations

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    The Coming Retention Crisis

    (May 31, 2002) - It's been three waves of layoffs. The survivors, suffering from layers of guilt and the desire to maintain their incomes, huddle under their desks somewhat unwilling to take on any risk. The organization is tense and not yet sure that another round of sacrificial isn't going to be required. Everyone is on their best behavior. The questioning of authority that makes a good organization run effectively is minimized.

    You know what's going to happen the moment that times get good. The pent up resentments, fears and anxieties will propel a mass movement towards the door. Today's 96% retention will become tomorrow's 25% attrition nearly overnight. It happens every time.

    Seasoned organizations are beginning to deal with the problem now, in advance of the crisis. It's going to be a land-rush and the complicating factor is that replacement 'bodies' are already a little difficult to find. Minimizing the impact of attrition on the bottom line will be a key to successful performance over the next 15 months.

    Here are some actions you can take to minimize the impact of good economic times on the hiring workload.

    1. Review the changes in attrition rates at the end of the last recession. On average, attrition doubled in the second quarter of real economic growth. They doubled again the next quarter. Publish a one page summary of the problem for co-workers and management.
    2. Increase the publicity surrounding existing openings in the company.
    3. Institute an internal referral program that rewards employees for suggesting a co-worker for an internal move.
    4. Stage a series of events designed to consolidate the current workforce as a team. Family Days, open houses, barbeques and so on have been on the back burner for a while now. 
    5. Celebrate the interests and hobbies of the existing workforce.  Show the workforce examples of people who have combined their passions and their work.
    6. Institute a "let us know first" program that actively encourages existing employees to find their next job at the company instead of leaving.
    7. Encourage employees to apply for jobs using the corporate website.
    8. Remind first level supervisors that internal transfers are good for the company. 
    9. Offer assessment tools that allow employees to clearly understand what's required to make an internal move into a new area. Champion the education reimbursement program.
    10. Advertise the company to the existing workforce. Describe the real, tangible benefits of life at the firm.
    11. Enroll every departing employee in an active, value added alumni program. Make email and other web services easily available to those who depart.
    12. Reexamine existing retention initiatives and strengthen them now.

    There is no question that national economic success will increase your attrition rates. Acting now can minimize the impact.

     -John Sumser

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    Copyright © 2013 interbiznet. All rights reserved.
    Materials written by John Sumser © TwoColorHat. All Rights Reserved.
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         Materials written
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         © TwoColorHat.
         All Rights Reserved.