Practical Insights into
Building a Culture of Retention
Sandra Hofmann
SVP & COO
Turknett Leadership Group
Atlanta

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Continuous employment
Feeling that my real skills and capabilities are being put to use
Real esprit de corps in the group
Strong program of employee benefits
Real rewards that are inherent in the work
Pay, better than average
Able to explore new areas and to grow as much as I can
Fairness in promotion, based on performance with promotion from within
Good working conditions, accommodations consistent with level of position
Knowing what is going on in the organization
Strong pressure to accomplish task, a challenge
Mistakes are permitted and there is little chance of being released
Feeling my job is important
Company policies that are known and fair
Knowing what is expected of me
Being told how well I am doing
Sufficient responsibility and authority
High standards of accomplishment that I must "reach "
Opportunity to use initiative, no direct or close supervision
Having a manager whom I respect

When you are an employer of choice, then everybody knows your name!
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"Best lists" appearances.
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Positive name recognition
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Often cited in key publications
CEO has wide name recognition.
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Your current CEO has a positive name recognition when professionals in your industry are asked in surveys or focus groups
75% of the time.
There is a published book written about your firm or CEO within the last five years.
Giveaway/takeaway ratio.
Talent competitors talk positively about you
25% of the time.
Recruiters list you in top employers.
In top three choices of top performers over
50% of the time.

When you are an employer of choice, then everyone wants to be with you!
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Employee Referral rate >50%.
Former employees do/would return.
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Over 10% of employees that voluntarily quit in the past three years have returned. Over 50% express an interest in returning when surveyed.
Employees send the "same" message.
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When your employees are asked what they tell strangers about "why the firm is a great place to work" over 50% of their answers include your top selling point.
Turnover rate of top performers.
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The turnover rate of your top 25% rated employees is below 5%.
CEO mentions people practices.
Your current CEO mentions specific HR or people practices by name in 25% of their external and 50% of their internal speeches.

HR Promotes “Thought Leadership”
 Outsource/web-based HR
 Presented at SHRM SE
Conference on “HR as a
Strategic Partner”
 Participated on expert panel & webinar for Employease
 Participated on Employease
Customer Advisory Council
 Teleworking
 Selected for Georgia Clean Air
Campaign case study on teleworking
 Participated in Gov. Perdue’s
Teleworking Press Conference
 Diversity/Change
Management
 Included in numerous publications ( CIO, CIO
Insights, HR Executive , etc.)
 Requested for speaking engagements on topic
Enhance Community Relations
 Atlanta Business Chronicle’s “A+
Employers” – placed 6 th in finals
 TAG Women in Technology’s “Best
Employer in Georgia” – winner of
Work/Life Balance
 Society for Human Resource
Management’s “Professional
Excellence” – winner of Mid-size company & Grand Prize
 Fortune’s “Best Small & Mid-size
Companies to Work For” – finalist

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Loss of key players affects corporate productivity
Replacement cost high
Cost of vacancy can impact shareholder value
Losing talent to competitors erodes competitive advantage
High attrition affects the morale
Inexperienced employees decrease customer satisfaction
Retention is a strategic imperative for the enterprise!
Source: Retaining talent: Retention & Succession in the Corporate workforce, Aberdeen Group,
2005

now ?
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70% of HR managers believe retention is primary concern
55% of HR managers expect retention to be significant challenge within next
5 years
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40% of HR managers have seen increase in turnover
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Demographics are changing – generational diversity drivers
Source: Atlanta Business Chronicle February 2006
Headhunter.net:
“where employees with good jobs go when they are having a bad day”

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Do I understand the difference between voluntary & involuntary turnover in my company?
What level of voluntary turnover is acceptable?
How much does attrition cost my company?
What themes are at the root cause for turnover?
What is being done to solve the root cause?

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80% of employees hunting or open
Global struggle to hire talent: 40% worldwide
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44% US
78% Mexico
66% Canada
58% Japan
13% India
Source: Manpower survey February 2006
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Top 10 jobs most difficult to fill
Sales Rep
Engineers
Nurses
Technicians
 production /operations
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 engineering maintenance
Accountants
Accountants
Administrative Assistants
Drivers
Call Center Operators
Machinists
Management /Executives

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Too much emphasis on pay, benefits, perks
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88% leave for reasons other than pay but – work IS about the money! The best do typically offer better than competition
Blindly following other companies’ best practices
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Match culture, benefits, practices to needs & desires of employees
Worthless if paper based & haphazard
Failure to train managers & hold them accountable
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Monitor voluntary turnover, new-hire retention rates, employee-engagement survey scores & reward the best
No one can afford the luxury of another bad manager
Retention is a process – not a program

Who has the edge?
(when it comes to recruiting & developing talent)
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Source: Fortune February 2006:
America’s Most Admired Companies

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Provide open & frequent communication
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Top management more accessible
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Employees engaged at all levels
Expect excellence from everyone
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Challenge employees often
Move employees to new jobs
Offer broad based & on-going development
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Not focused just on high potentials
Promote from within
Source: Fortune February 2006:
America’s Most Admired Companies

Career
Developmen t
Organization
Structure Leadership
Capability
Lack of
Bureaucracy
Advancement
Recognition
&
Feedback
Training
Participation
Orientation
Meaningful
Benefits
Work
Immediate
Manager
Employee
Relations
Manager
Innovation
Department
Equity/Fair
Treatment
Strength of
Culture
Emphasis on Quality
Autonomy | Challenge
Resources | Pay Satisfaction
Job Satisfaction
Role Ambiguity
Team
Cohesion
Open
Communication
InterGroup
Cooperation
Work/Life Balance
Customer
Lack of
Stress
Focus

Career
Development
Organization
Structure Leadership
Capability
Lack of
Bureaucracy
Advancement
Recognition
&
Feedback
Emphasis on Quality
Training
Orientation
Participation
Meaningful
Work
Immediate
Benefits
Manager
Autonomy | Challenge
Employee
Relations
Manager
Innovation
Department
Equity/Fair
Treatment
Strength of
Culture
Resources | Pay Satisfaction
Job Satisfaction
Customer
Focus
Role Ambiguity
Team
Cohesion
Open
Communication
Lack of
Stress
Inter-group
Cooperation
Work/Life Balance

Organization
Structure Leadership
Capability
Lack of
Bureaucracy
Participation
Meaningful
Work
Immediate
Manager
Employee
Relations
Manager
Innovation
Department
Equity/Fair
Treatment
Strength of
Culture
Customer
Focus

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Participation in Decision Making
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Desire decision latitude to help influence direction of their team
Biggest Influence: employee’s immediate manager
Especially important for younger employees
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Identified by Gallup to retain top talent: do my opinions seem to count?
Meaningful Work
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Core dimension of job satisfaction
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Want to feel that their work is making contribution toward the good of the company
Foster a sense of purpose: working for a cause as well as a company
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Engaging company vision that shows clear connection to employee’s effort

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Employee Relations : Defined as the process of maintaining a positive and cooperative workforce via fair
& considerate treatment
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Identified by Gallup to retain top
talent: Does my supervisor seem to care about me as a person?
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Direct relationship with boss more important than pay/perks
Important for both young & older employees
Positive supervisor/employee relations inspire commitment
One of the top 5 reasons employees stay in a firm

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Quality of Management
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Direction of organization key driver of commitment
Trust in senior leadership key driver of commitment & 3 year return to shareholders
Bureaucracy
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One of the hallmarks of “average” companies
Minimize the management burden by keeping hierarchies in check
Innovation
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Companies viewed as innovative create energy
& pride throughout organization

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Equity/Fair Treatment
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Doesn’t mean overpay, just pay fairly according to internal & external market
Must embrace diversity & treat all employees fairly
Strength of Culture
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Reputation or branding as an “exclusive” organization & market leader creates pride in organization
Helps people feel they are a part of something important
Customer Focus
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One of the five most powerful drivers of workforce commitment
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One of the key priorities of most admired companies

Benefits
Autonomy | Challenge
Emphasis on Quality
Resources | Pay Satisfaction
Job Satisfaction
Role Ambiguity
Team
Cohesion
Open
Communication
Inter-group
Cooperation
Work/Life Balance
Lack of
Stress

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Autonomy
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Talented employees want independence & ability to make decisions without going through bureaucratic channels
Creates sense of control over environment & increased responsibility
Challenging work
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Talented employees want a job that is challenging & has a large scope of responsibility
One of top 5 reasons employees stay
Create great jobs by letting people stretch their skills
Adequate Resources
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Identified by Gallup to retain top talent: Do I have the materials & equipment I need to do my work right?

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Role Clarity
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Identified by Gallup to retain top talent: Do I know what is expected of me at work?
Unclear expectations & ambiguous demands from boss lead to turnover
Compensation & Benefits
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Offer a variety of creative benefits
Is not a source of satisfaction, but is a driver of dissatisfaction
Choice of benefits increasingly important
Stock, profit sharing & pension plans top 3 benefits correlated with commitment
One of the key priorities of most admired companies
Communication of benefits one of the five most powerful drivers of workforce commitment
Many employees don’t have a good understanding of their entire benefit package
Job Satisfaction
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Though not always related to productivity, has always been linked to turnover & intention to quit

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Team Cohesion
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Coworker relations top reason to stay
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Best large companies mimic small companies with smaller autonomous units
Predominant characteristic of “100 best companies to work for in America”
Role Harmony
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Decreasing conflicting demands increases job satisfaction
Open Communication
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Information sharing between manager and team important
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Clear communication systems used by effective leaders
Openness in team facilitates overall cohesion
& satisfaction

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Stress
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Free up time for employees to relax & reduce stress with variety of programs (Work-free weekends, thinking/meeting-free days, limitations on business trips, flexible vacation time)
Conflict & overload common work-related factors to stress
Emphasis on Quality
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Quality products/services create pride in organization, fostering commitment
Work/Life Balance
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Flexible hours one of top reasons cited
EAPs, medical/dental care, family time-off programs, allowance for personal time
Job sharing & telecommuting
Recognition of personal/family life-powerful factor
Especially important for women who do not value promotion opportunities

Career
Development
Advancement
Recognition
&
Feedback
Training
Orientation

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Orientation
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Realistic job preview helps set expectations
Orientation critical in the first 3 days
Training
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Interpersonal & technical training popular incentive programs
“Train like crazy” one of recommendations to retain staff

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Recognition
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Must provide special recognition for top performers
Recognition for good work one of most common reasons for staying
Recognition doesn’t have to be financial!
Feedback
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Regular dialogue on performance issues
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Identified by Gallup as important for positive
climate: In the last six months, has someone at work talked to me about my progress?
Ongoing feedback by immediate supervisor critical.
Use of 360’s very effective tool for giving insight and focusing development

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Career Development
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Put people in jobs that challenge them
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One of top 3 reasons for staying
Educational incentives more effective than dollar compensation
One of five most powerful drivers of workforce commitment
Identified by Gallup as important for positive
climate: This last year, have I had opportunities at work to learn and grow? Do I have the opportunity to do what I do best everyday?
Opportunities for Advancement
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Must be communicated throughout entire organization
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One of the factors that inspires commitment

Retention through professional excellence
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Children’s Healthcare of
Atlanta
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Great Expectations
HomeBanc Mortgage
Corporation
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Associate Emergency Fund
Randstad North America
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On-boarding process
The Home Depot
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Veterans Recruiting
Doctors Hospital of
Columbus
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Combined community & workforce programs
CARE
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Global Gender Equity &
Diversity initiative
City of Atlanta
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Growing service during right sizing

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Before you hire - Selection
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Hiring the right person both in skills & fit will save money in long run & increase retention
After they leave - Exit Interviews
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Wait 2 weeks to let emotions subside
& find out why people are leaving
Don’t just file the information. Do something with it.
Create an “Alumni” Network
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Stay in touch
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Remember your reputation as an
“employer of choice”

Career
Development
Organization
Structure Leadership
Capability
Lack of
Bureaucracy
Advancement
Recognition
&
Feedback
Emphasis on Quality
Training
Orientation
Participation
Meaningful
Work
Immediate
Benefits
Manager
Autonomy | Challenge
Employee
Relations
Manager
Innovation
Department
Equity/Fair
Treatment
Strength of
Culture
Resources | Pay Satisfaction
Job Satisfaction
Customer
Focus
Role Ambiguity
Team
Cohesion
Open
Communication
Lack of
Stress
Inter-group
Cooperation
Work/Life Balance

shofmann@turknett.com
2310 Parklake Drive, Suite 500,
Atlanta, GA 30345 www.turknett.com