How to effectively manage staff turnover

1. How to effectively manage staff turnover “THE CHANGING ROLE OF HR: FROM SUPPORT FUNCTION TO SOLUTIONS AFFECTING BUSINESS DECISIONS” 01.10.2010, Moscow, Ararat Park Hyatt

2. Factors affecting staff turnover Motivation - how supportive and encouraging is your business? Organisational culture - research shows that the culture of a business can influence staff commitment. Induction  - how welcome are staff made to feel from the start? Do they know where things are, what they are supposed to do, and what their colleagues are supposed to do? Bear in mind that the highest level of staff turnover is among new starters, so it's important to get them established quickly and to make them feel part of the business. Competitive pay rates and a fair, transparent pay system -  are they in line with your industry? Incentives and other staff benefits - are they relevant for your staff? Can staff choose the ones they need? Matching jobs to people - for the best use of skills, experience and competencies, as well as staff aspirations. Staff training and development - is it relevant to your business and does it promote best practice? Formal appraisals - give staff the opportunity to discuss their performance. Team working - with common goals rather than unhealthy individual rivalries. Flexible working arrangements  - adapted to people's needs. Recognition of work - life balance in your business' policies. 2

3. Improve your management of staff turnover Measure and benchmark turnover Add together the number of staff working at the beginning of the time period and the number of staff working at the end of the period and divide by two. This will give you your average number of staff working within this time period - you will need this number for the next stage. Work out the number of leavers over the time period, multiply by 100 and then divide by the average number of people working in that same period. This formula will give you a percentage rate for your business that you can compare over time. You can also use this indicator to see how your business compares with averages in your industry. This is known as benchmarking. 2. Examine turnover Exit interviews are carried out by many businesses and can reveal common reasons for people leaving, and highlight any emerging patterns. Surveys of all staff can often indicate general satisfaction levels but remember to address any issues arising so that they know you take their views seriously. Analyse your recruitment and selection procedures  to see if you can identify expectations or potential problems earlier - alternatively you may need to make the business' expectations clearer at the recruitment stage. 3 3

4. Manage staff turnover consult regularly with staff about general morale and feelings of satisfaction make contingency plans to cover and replace leavers, including succession planning, so as to minimise disruption -  review these plans regularly make contingency plans to induct and train new staff  and regularly evaluate both of these And here is our way to look at it… It’s our employees that make the difference, so it’s important that we invest in their spiritMost importantly we need to keep our people loyal and motivated” 4 4

5. What are motivation and engagement?

6. No, it’s not this….

7. It’s not this either….

8. Happiness alone is NOT Employee Engagement

9. A happy employee….

10. Might be happy doing nothing

11. Workaholics are not necessarily engaged either…. …in fact 39% of disengaged employees suffer work related stress

12. Engaged employees feel consistently motivated to go beyond expectations and are committed and loyal to their company. They love coming to work every day and they are passionate about what they do.

13. These are real, tangible Benefits… FinancialPerformanceTracked for 12 Months 50 Global CompaniesDivided Into High and Low Engagement % Change in OperatingIncome % Change in Total Assets + 17.1% + 19.2% High Employee Engagement Low Employee Engagement - 5.9% - 32.7% - 32.7% • “High Engagement Companies” = increase in operating and net profit margin • “Low Engagement Companies” = decrease in operating and net profit margin Source: PDI Ninth House

14. Leadership • Paint clear vision of the future – only if people know where the journey leads they will follow • Act with Integrity, honesty and consistency. Follow through on commitments • Set challenging goals/ drive results • Lead from the front – Walk the talk, be out in the field; talk to people at all levels • Show empathy and genuine caring • Accept your own mistakes openly – this makes you human

15. …And More • Don’t give up, be determined to succeed • Invest in your people and their development • Encourage open and honest dialogue, ask questions; understand details to be able to challenge your team • Don’t be afraid to give people constructive (formal and informal) feedback; hold people accountable • Dare recruiting people who know more than you • Communicate with the organization at all levels – uncertainty kills motivation

16. СПАСИБО ЗА ВНИМАНИЕ Elena Petrova Head of HR Russia, CIS, South & Eastern Europe, DHL phone: +7 495 9561001 mobile: +7 495 2260901 Elena.Petrova@dhl.com