Holding on to newer employees is key to improving retention, survey finds
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, specialists in attitude research. 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.
Sirota Survey Intelligence examined and linked data on employees' attitudes from 2005 and 2004 employee attitude surveys to actual turnover that occurred in the next year, based on company-supplied data.
"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. "Many leaders fail to recognize that new employees are enthusiastic about staring a job, and that, by their actions, management destroys this enthusiasm. Our research shows a measurable decline in employees' morale after they have been working for an organization for six months, and this deterioration worsens as they continue to evaluate what they expected against what they are receiving," Klein added. "Best-in-class companies do not create this decline in morale as seen in the overall trend."
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. If possible, the work could be made more challenging and management could be more clear about potential career paths and provide greater opportunities for development. Additionally, managers could be more consistent in what they say and do and strive to create an atmosphere where employees feel valued, which may include recognizing them for good performance and listening to their ideas followed by acting upon them.
Another effective management policy for improving the retention of newer employees is creating a secure environment where employees do not continually feel as if they are on a "slippery slope." And, finally, high standards of personal and professional integrity should be encouraged, such as clearly laying out what's expected in terms of ethics and establishing accountabilities and consequences for exemplary and sub-standard behaviors.
Reprinted with permission. © CCH
<p>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, specialists in attitude research.</p>
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