How to manage employee turnover

HOW TO MANAGE
EMPLOYEE TURNOVER


Rusty Lindquist

Mykkah Herner

VP STRATEGIC HR INSIGHTS

MODERN COMP EVANGELIST

BAMBOOHR

PAYSCALE

@rustylindquist

@mykkah_herner

rusty@bam boohr.com



www.linkedin.com /in/rustylindquist

www.linkedin.com/in/mykkahherner


"HR today sits smack-dab in the middle of
the most compelling competitive battleground

in business, where companies deploy and
fight over that most valuable of resources—
workforce talent."
-Matthew D. Breitfelder
HBR: “Why did we ever go into HR”


A Changed Perspective


Millennials
v
75%

Millennials will comprise 75% of
the global workforce by 2025.
- Deloitte

v
91%

91% of Millennials expect to stay with
your company fewer than three years.
– Future Workplace

v
2yrs

Average tenure for Millennials is 2
years (5 years for Gen X and Gen Y)

– Payscale


Baby Boomers
43%

Within the next 10 years, 43% of the US
workforce will be eligible for retirement
- Forbes

1yr

Among the jobs that 39-44 year olds
began, one third ended in less than a year
– Forbes

90200%

Cost of replacing an employee is
between 90-200% of their annual salary.
– SHRM


Contingent Workers
83%

83% Of executives say they’re
increasing contingent workers.
- Oxford Economics

23m

There’s projected to be 23 million contingent
workers by 2017 (up 26% in 2 years)

52%

52% of Millennials expect to work
independently (82% in emerging markets).

– MBO Partners

– Deloitte


Additional Dynamics
• Workforce competency and skills gap
• Increased competition

• Globalization
• Culture
• Competition for talent
• Stresses on work-life balance

• Etc.


–Bersin by Deloitte

–Ram Charan
Best-selling Author,
World-renowned Business Advisor


Organizational Power

Organizational power goes to the group that
deals with the biggest problems
Alfred Marshall
economist


Defining and
Quantifying Turnover



The rate at which people
leave a place, company, etc.,
and are replaced by others


Adding Good Complexity
Good Turnover vs. Bad Turnover
Low performer

High Performer

Voluntary

X%

Y%

Involuntary

P%

Q%


Retention is still
a Major Concern


Turnover costs more than
just dollars
•
•
•
•
•
•
•

Morale
Engagement
Performance
Training

Knowledge retention
Nimble to market changes
Cost to replace


Common Myths of
Employee Turnover


Myth: Turnover is
Always bad


Myth: Turnover is
Bad for Morale


Myth: We can predict turnover
based on generation


Myth: Turnover is always timeconsuming and costly


Employee Retention


Evolution of HR
H

Strategic

Business
Value

Operational

L
Micro

Small

Transactional HR
HR viewed as a cost center

Mid

Large

High-Impact HR
HR as a strategic
investment


Evolution of HR
H

Strategic

Business

Value

Operational

L
Micro

Small

Transactional HR
HR viewed as a cost center

Mid

Large

High-Impact HR
HR as a strategic
investment