| FRS |
Facts-Risks-Strategies |
| Fact |
Fortune Magazine reported that the American Institute of Stress predicted that stress and stress related illness can cause an increase in absenteeism, burnout, and mental health problems, costing businesses in the United States in excess of $300 billion a year. Canadian HR reports that every dollar spent on wellness programs generated a return of $1.64 and $4.00 for high-risk employees. |
| Risk |
What's the cost of doing nothing? The consequences of stress can be observed in physiological symptoms, psychological symptoms, and behavioral symptoms. Organizations that don¡¯t take an active role in reducing stress in the workplace by understanding current levels and root causes of stress (e.g., lack of job stability, downsizing) and taking proactive action will ultimately pay much more than taking positive action. |
| Strategy |
A few core actions to proactively address stress:
- Monitor current stress levels and drivers on a regular basis.
- Hire the right kinds of employees.
- Providing meaningful training.
- Develop well thought out job designs and expectations for employees.¡¡¡¡
- Increase employee involvement in decisions.
- Understand the importance of communication and developing a communication strategy.
- Allow employees to take a sabbatical, break, flexible scheduling, or to telecommunicate.
Develop a corporate wellness program. |
| FRS |
Facts-Risks-Strategies |
| Fact |
Lindsay Edmonds Wickman Executive Briefings (2008) reported in a recent survey of 150 new employees by Novita, a provider of employee on-boarding and training development solutions that many organizations’ overall orientation experience was not that effective. In fact, many of the new hires did not believe their on-boarding experience was effective. |
| Risk |
What's the cost of doing nothing? Many organizations continue to muddle along with-on boarding without understanding how important the on-boarding experience is to educating new hires as to what the organization is and to get a new hire in a position as early as possible to be successful in their new role. Too often leadership does not pay the same attention to building the employee brand as it does the company brand. When this is the case new employees may feel they are not being given a good start with the company and may become disengaged or even exit the company early. The result of losing talent due to ineffective on-boarding is lost time, talent, productivity, and money. |
| Strategy |
On-boarding is the perfect opportunity to ensure every new hire gets a good start and gets on the right track to learn how great the organization is to work for. It’s also a great way to introduce new employees to the organization’s commitment to them. Five elements to consider when building an on-boarding strategy:
- Technical – Have a checklist and action plan as to how a new hire can get their technical needs met seamlessly.
- Professional – New hires expect a clearly defined road map as to how to evolve and the milestones for success.
- Cultural – Provide new people with an introduction to the written and unwritten rules of the organization.
- Relationship – Don’t underestimate the importance of ensuring new hires start their role with relationships people who are committed to their success.
- Knowledge Transfer – Provide on-boarding documents and knowledge transfer strategies to speed up the learning curve.
|
| FRS |
Facts-Risks-Strategies |
| Fact |
Salary.com, a leading provider of on-demand compensation and talent management solutions, reported from its research that compensation may be a key factor as to why employees would consider leaving a job, but it's not the top reason they stay. The survey reported reasons for leaving: inadequate compensation: 27%; lack of career advancement: 19%; insufficient recognition: 17%; boredom: 11%; no professional development: 11%. |
| Risk |
What's the cost of doing nothing? Perhaps there is no greater risk to dealing with retention than making assumptions. Assuming why employees are staying and leaving jobs creates two problems. The first is the utilization of resources on perceived issues but not addressing the majority of reasons people are leaving. For example, focusing just on compensation leaves 73% of the reasons people are leaving without action. The second problem is formation of global statements. For instance, when too many leaders feel their compensation is fair and competitive and people are still leaving, the global statement, "There’s not much more we can do," becomes the excuse of the day to leave things the same. The obvious risk of making assumptions and global statements is the organization is at risk of losing top talent faster than it can attract and retain new. The cost of doing nothing is the risk of losing top talent that cannot be easily replaced. Corporations are quickly learning the cost of losing the skill and productivity of top talent as well as their corporate intelligence is priceless, especially when it is not accessible when needed. In some cases it may result in the loss of a division or business if the talent cannot be replaced. |
| Strategy |
The first step to facilitate retention is to be clear of why people would want to come and stay with an organization. Research indicates that senior managers who do this from their offices without the facts are often more wrong than right. One way to be sure as to why people are staying or leaving is to develop and implement a meaningful annual retention assessment process that will collect the necessary facts. Surveys, focus groups, one-on-one communication, and town halls are proven strategies. However, how these facts are reported and acted on drives the tangible results for enhancing employee engagement, the core need in the above example to address the other 73%. The point is there’s most always more that can be done to motivate a workforce to come and stay, although it takes senior management commitment and willingness to face the facts and support the action needed for this to happen. In the end, the cost of doing nothing will most always cost more than a well thought out attraction and retention strategy. |
| FRS |
Facts-Risks-Strategies |
| Fact |
Western Compensation & Benefits Consultants, in a survey conducted with 446 organizations across Canada, reported from the sampled population 87% were experiencing difficulty attracting employees. |
| Risk |
What's the cost of doing nothing? Organizations that ignore attraction stats are at risk finding themselves with out enough qualified employees to meet workforce plan requirements. The financial risks are: lost revenues, costs due project delays, lost of current and future contracts, loss of market share, loss of reputation, and from a social psychology perspective lost of attraction brand (e.g., potential candidates perceive since no one wants to work for this organizations it lacks stability). |
| Strategy |
Be clear on what your attraction stats really are. Get the facts – see them – compare this year to last. For example, do you know what your yield ratios are? Lead generation ratio compares candidates invited for interviews to the number interviewed; compared to number of offers made to number of new hires; compared to number of new hires that after year one are considered good hires and are fitting well into the organization. This will let you know clearly how big your talent pipeline is and to what degree you do or do not have an attraction issue. | |
|
|
|