There have been over 3000 academic studies of staff turnover since 1945. To save you and the rain forest vital resources, we have listed the most common themes. This list should provide the basis of your approach to retaining your key workers.
1. Turnover is continuous – about 1 in 5 people quit their job each year. Over 25% of 20-24 year olds were working for a different employer a year ago.
2. Costly – it can cost between 50% and 120% of basic pay just to replace a leaver, depending on the skill level.
3. A person’s decision to leave is influenced by push & pull factors. Employee satisfaction, commitment, the way they are managed and a range of other 'push' factors affect their disposition to stay or leave. The relative buoyancy of the labour market, particularly relative pay levels, the number of suitable vacancies etc.. can act as 'pull' factors. Organisations can only influence the 'push' factors, and should resist blaming the 'pull' factors.
4. Decisions to leave are rarely linked to Pay Satisfaction. Overall, around 10 per cent of leavers across all organisations resign because they are unhappy with their pay. Not an insignificant amount, but by no means the majority. Most employers, however, place pay-related measures at the heart of their retention strategies.
5. Decisions to leave are often linked to intrinsic work factors. Such as, varied & challenging work, work which uses employees' skills to the full.
6. Decisions to leave are often linked to climate & culture. Many studies have shown strong links between an individuals' 'fit' with the dominant culture of the organisation and their propensity to resign.
7. Decisions to leave are often strongly linked to leadership style. In most organisations, line managers influence most of the 'push' factors which can lead to resignation or retention. These include induction, training, job content, promotion & progression, rewards, feedback, job satisfaction etc.. Good managers usually deliver high retention as a by-product.
8. Resignation is an individual decision... Everyone who resigns does so for a complex set of reasons. No two decisions are the same.
9. …requiring tailored solutions. Expecting 'blanket' solutions to retention problems to work is unrealistic. Retention strategy should seek to address both the retention climate of an organisation, together with specific measures which address the needs of 'high risk' groups
10. The decision of a valued employee to leave is often a symptom of deeper organisational problems. Retention measures which treat the symptom rather than the underlying cause will be expensive and ineffective.