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WHITE PAPER
Employee Retention
How to keep the keepers and maintain
optimal turnover levels
JUNE 2010
1WHITE PAPER: EMPLOYEE RETENTION: HOW TO KEEP THE KEEPERS AND MAINTAIN OPTIMAL TURNOVER LEVELS
Introduction Know who to keep and who to lose: 3 toolsRetention is a business issue For many of the world's most admired companies, The first thing to think about in figuring out who to and losing one or two key the ability to attract and retain talented employees keep is your desired attrition. Is it ten percent? Fifteen people can have a significant was the single-most reliable predictor of excellence, percent? Zero? If the latter, then you need to take impact on your longevity or according to Fortune magazine. And it may be the actions to ensure you don't lose anyone.single-most important challenge of this decade.profitability. But if some turnover is OK, whom can you afford to Why care about retention? Retention is a business lose? This is a more likely scenario than zero, so you issue and losing one or two key people can have a need to take a look at your workforce and the people significant impact on your longevity or profitability. in it.
In the following white paper, we outline how Uniqueness Gridmanagers can determine whom to keep, how to The "uniqueness grid" is designed to differentiate treat those who leave and what to do to retain those human capital and its competitive advantage. Or in necessary to the organization. other words, the specialized skills of your workers These lessons are worth learning because: versus the value to your organization.
. Most organizations don't know who is valuable This is a relatively new concept in human resources and who isn't that is based on the principle that you should not . Organizations lack processes and tools to treat everyone the same way. Not everyone has the effectively restructure or downsize same skill set and not everyone can provide the competitive advantage you need.. It is extremely challenging to retain and motivate the survivors. Decisions must be made quickly. Processes must be humane, but risk must be mitigated as well. Resources are limited
2WHITE PAPER: EMPLOYEE RETENTION: HOW TO KEEP THE KEEPERS AND MAINTAIN OPTIMAL TURNOVER LEVELS
Differentiating Human CapitalYou don't want to lose your hgistronger performers who Professional Partners Strategic CapabilitiesH
score high in the leadership latippotential area, but you aC nalso may not want to lose amuthose who have already Contract Candidates Operational PartnersH fo sdemonstrated leadership but senewho may only be mid-level uqinperformers. U
LowCompetitive Advantage Value of Human Capital
Examples: Performance Potential. You may have a person with highly-specialized Another assessment is the "performance-potential." skills, but these skills aren't unique to your This is used to look at the leadership potential of business. Perhaps those are the jobs that you your employees - the potential to take on larger outsource so it doesn't become a retention issue. responsibilities. You don't want to lose your stronger . On the other hand, you may have a person with performers who score high in the leadership potential unique skills as well as a competitive advantage, area, but you also may not want to lose those who such as a software designer who has certain have already demonstrated leadership but who may intellectual knowledge critical to your business. only be mid-level performers.
. Finally, you may have operational partners - people whose skills are less unique but who are critical to running your business operations. They too provide a competitive advantage.
3WHITE PAPER: EMPLOYEE RETENTION: HOW TO KEEP THE KEEPERS AND MAINTAIN OPTIMAL TURNOVER LEVELS
Business leaders think about "Who Must We Keep/Lose?"these factors - uniqueness, Likely Potential Current Performanceperformance, potential and value - because Bottom 10% Middle 70% Top 20%
understanding them leads to Top - 20% "TURN" 4 2 1the desired actions necessary Meets - 70% " GROWTH" 7 5 3
to properly retain people. Bottom - 10% "MASTERY" 9 8 6
Risk of Leaving Bottom line: Business leaders think about these
Finally, you want to take the data you've gathered factors - uniqueness, performance, potential and
and look at it within the matrix called "risk of le... [download for more]
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