Does your retention strategy need adjusting?

Data-based whitepaper by ADP Canada asks HR 11 key questions to combat turnover

Does your retention strategy need adjusting?

In today’s post-pandemic era, where unemployment is at a 15-year low and fallout from the great resignation continues to disrupt the labour force, a successful retention strategy is more vital than ever.

A recent whitepaper produced by ADP Canada takes survey-based data and Canadian workplace insights to help HR leaders and people managers understand what can be done to create an effective and resilient retention strategy that holds on to top talent.

Getting your retention strategy right takes a deep dive into internal and external forces affecting retention and turnover. From pandemic-related challenges and ways in which the market and the economy influence retention, to benchmarking tactics, critical data tracking, signs that potential problems may be brewing, reasons for and causal factors associated with turnover, and ways to address and resolve troubling retention issues, the ADP Canada report offers comprehensive insights and advice HR leaders and people managers can draw from to fortify their own strategies.

Retention and turnover are important because of the impact they have on a business’s bottom line. Efforts to analyze and understand not only who is leaving and why, but also who is staying and why, are fundamental to an organization’s capacity to weather tumultuous labour markets and achieve overall goals.

The research conducted by ADP reveals today’s average monthly turnover rate is hovering around two to three per cent of the employee population. These numbers can vary, however, depending upon an organization’s size, industry, levels of hierarchy, geography, local economy, and market factors.

Further statistical analysis of these trends shows the most common factors that influence employees’ decisions to leave their jobs include pay and overtime, other career opportunities, and the desire to reduce commute times. Things that are happening in an individual’s personal life and where they are in their career stage also contribute to turnover, as do priorities ushered in by new generations of employees that include an emphasis on work-life balance, value-based workplace cultures, and DE&I initiatives.

ADP’s data shows the cost of losing a skilled employee can amount to 90 to 200 per cent of that individual’s annual salary plus the cost of recruiting and training a new employee and potential losses in productivity. Employee departures can also impact morale within the workplace and disrupt client relationships that can result in lost contracts.

Most companies conduct exit surveys upon an employee’s departure, but ADP recommends including follow-up requests for information. Over time, an employee’s reasons for leaving their job become clearer and these insights can offer companies vital information. 

Onboarding processes that include questions about what attracted the employee to the company and covers areas such as compensation, benefits, perks, opportunities for growth, and whether employees were referred by a fellow company employee, can also unveil important information and lead to more effective strategizing.

Once potential causes of turnover have been highlighted, ADP says there are 11 questions HR leaders should be sure to ask employees to determine what can be done to improve the status quo or combat unusual increases in turnover.

ADP’s whitepaper also explains how organizations can track nine fundamental factors to produce an accurate data picture of their workplace. It lists and details the six key components every retention strategy must cover, and outlines the three primary points of focus companies can’t afford to miss. By demystifying the solutions process, the report helps HR leaders and people managers lay the foundations for a strong, business-aligned retention action plan.

People come and go in organizations and some turnover is expected. It can, however, be difficult to discern what is normal turnover and when there’s a problem. Download ADP’s free whitepaper to find out how you can properly address your organization’s turnover challenges and create a resilient retention strategy.

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