Develop an Effective Talent Retention Plan Keep talent

Develop an Effective Talent Retention Plan Keep talent from walking out the door by discovering and addressing moments that matter and turnover triggers. SAMPLE Learn about becoming a member Mc. Lean & Company is a research and advisory firm that provides practical solutions to human resources challenges with executable research, tools, and advice that will have a Mc. Lean & Company is a research and advisory firm providing practical solutions to human resources challenges©via executable research, tools and advice that clear and measurable impact on your business. 1997 -2019 Mc. Lean & Company. have a clear and measurable impact on your business. © 1997 -2018 Mc. Lean & Company. Mc. Lean Company is a division of Info-Tech Group. Mc. Lean & Company is a & division of Info-Tech Research Group. Research Inc. Mc. Lean & Company 1

EXECUTIVE SUMMARY Key Insight: Situation • Many organizations are facing an increase in voluntary turnover as low unemployment, a lack of skilled labor, and a rise in the number of vacant roles has given employees more employment choices. Complication • Regrettable turnover is impacting organizational productivity and leading to significant costs associated with employee departures and the recruitment required to replace them. • Many organizations tackle retention from an engagement perspective: increase engagement to improve retention. This approach doesn’t consider the whole problem. • Engagement surveys mask the volatility of the employee experience and hide the reason why individual employees leave. You must also talk to employees to understand the moments that matter, and engage managers to understand turnover triggers. Resolution • • Build the case for creating retention plans by leveraging employee data and feedback to identify the key reasons for turnover that need to be addressed. Target employee segments and work with management to develop solutions to retain top talent. SAMPLE Mc. Lean & Company 2

MCLEAN & COMPANY OFFERS VARIOUS LEVELS OF SUPPORT TO BEST SUIT YOUR NEEDS DIY TOOLKIT GUIDED IMPLEMENTATION “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful. ” “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some checkins along the way would help keep us on track. ” WORKSHOP CONSULTING “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place. ” “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project. ” Diagnostics and consistent frameworks used throughout all four options SAMPLE Mc. Lean & Company 3

Follow Mc. Lean & Company’s three-step process to create a retention plan SAMPLE Mc. Lean & Company 4

SAMPLE SLIDES SAMPLE Mc. Lean & Company 5

Low unemployment and rising voluntary turnover makes it critical to focus on retention As the economy continues to grow, unemployment continues to trend downward. This leaves more job openings vacant, making it easier for employees to job hop. Individuals who change jobs every 1 -5 years US GDP growth and unemployment rate Voluntary turnover rates 5 20. 3% 4 2016 3 2013 2 1 0 Q 1 Q 2 Q 3 Q 4 2016 GDP growth Q 1 Q 2 Q 3 Q 4 Q 1 2017 26% Q 2 2018 Unemployment rate Source: US Bureau of Economic Analysis and Bureau of Labor Statistics (BLS), 2018 Source: Jobvite, 2018 Source: BLS, 2018 With more employees voluntarily choosing to leave jobs it is more important than ever for organizations to identify key employees they want to retain and put plans in place to keep them. SAMPLE Mc. Lean & Company 6

Improving retention leads to broad-reaching organizational benefits Cost savings: the price of turnover as a percentage of salary 50% 300% Improving retention can result in significant cost savings. A recent study found turnover costs, on average, to be more than 50% of an employee’s annual salary (Dickson, 2018). Other studies have shown that the cost of losing an employee in their first year can be as high as 300% of their annual salary (Gutierrez, 2016). Improved performance Prevents a ripple effect Employees who have good fit and engagement and have more than 10 years tenure at their organization perform 18% better than an average employee (Gallup, 2018). Turnover often ripples across a team or department, with employees following each other out of the organization (Foreman). Retaining even one individual can often have an impact across the organization. Transfer of knowledge Retaining key individuals allows them to pass it on to other employees through communities of practice, mentoring, or other knowledge-sharing activities. Mc. Lean & Company insight Improving retention goes beyond cost savings: employees who agree with the statement “I expect to be at this organization a year from now” are 66% more likely to put in extra hours and 48% more likely to accomplish more than what is expected of their role (Mc. Lean & Company Engagement Survey, 2018; N=129, 309). SAMPLE Mc. Lean & Company 7

However, the traditional engagement-focused approach to retention is not enough Employee engagement is a strong driver of retention, with only 20% of disengaged employees expecting to be at their organization a year from now compared to 90% of engaged employees (Mc. Lean & Company Engagement Database, 2018; N=129, 309). Average employee net promoter score (e. NPS) However, engagement surveys mask the volatility of the employee experience and hide the reason why individual employees leave. 10. 0 9. 0 8. 0 7. 0 6. 0 5. 0 4. 0 3. 0 2. 0 1. 0 0. 0 T-9 T-8 T-7 T-6 T-5 T-4 T-3 T-2 T-1 T Individual employee net promoter scores (e. NPS) 10. 0 This analysis of Mc. Lean & Company’s engagement survey results shows that while an organization’s average employee net promoter score (e. NPS) stays relatively static, at an individual level there is a huge amount of volatility. 9. 0 8. 0 This demonstrates the need for an approach that is more capable of responding to or identifying employees’ in-the-moment needs, which an annual engagement survey doesn’t support. 7. 0 6. 0 5. 0 4. 0 3. 0 2. 0 1. 0 0. 0 T-9 T-8 T-7 T-6 T-5 T-4 T-3 T-2 T-1 T Source: Mc. Lean & Company, Employee Experience Monitor, 2018 SAMPLE Mc. Lean & Company 8

MCLEAN & COMPANY HELPS HR PROFESSIONALS TO: Maintain a progressive set of HR policies & procedures Develop effective talent acquisition & retention strategies Demonstrate the business impact of HR Build a high performance culture Stay abreast of HR trends & technologies “ Now, more than ever, HR leaders need to help their organizations maximize the value of their people. Mc. Lean & Company offers the tools, diagnostics, and programs to drive measurable results. “ Empower management to apply HR best practices – Jennifer Rozon, Vice President, Mc. Lean & Company Sign up to have access to our extensive selection of practical solutions for your HR challenges LEARN ABOUT BECOMING A MEMBER Toll Free: 1 -877 -281 -0480 SAMPLE hr. mcleanco. com Mc. Lean & Company 9