November 2006
Employee retention key
in first 2 years
Twice
as many employees with less than two years of service voluntarily
leave an organization as do those with more than two years
of tenure, according to a study of worker attrition rates
by Sirota Survey Intelligence.
Employees with less than two
years of service voluntarily leave at an average rate of about
20 percent per year, while those with more than two years’
tenure quit at an average rate of about 10 percent per year,
according to the study of nearly 47,000 employees. Moreover,
the data show that — of all those who voluntarily leave
within any given year — almost 60 percent have less
than two years tenure.
“To
improve overall employee retention rates, companies should
pay closer attention to retaining workers with less than two
years’ experience in their jobs,” said Douglas
Klein, president of Sirota Survey Intelligence.
“During
the first two years on the job, employees are confirming that
their actual jobs meet their expectations, as well as those
that their employers led them to believe during the recruitment
process,” said David Sirota, chairman emeritus of Sirota
Survey Intelligence and co-author of The Enthusiastic
Employee: How Companies Profit By Giving Workers What They
Want (Wharton School Publishing).
Companies can improve the
retention of newer employees by 10 to 13 percent by adopting
more effective management policies and practices, according
to analyses based on the study. Key actions should include:
-
Making the work more challenging, if possible;
-
Being clear about potential career paths and providing greater
opportunities for development;
-
Managers being more consistent in what they say and do;
- Creating an atmosphere where employees
feel valued — recognizing them for good performance,
and listening to their ideas and acting upon them;
-
Creating a secure environment where employees do not continually
feel as if they are on a “slippery slope”; and
-
Encouraging high standards of personal and professional
integrity, such as clearly laying out what’s expected
in terms of ethics, and establishing accountabilities and
consequences for exemplary and sub-standard behaviors.