Question

A manufacturing company recently notices an upward trend in employee turnover. This affects both new- and long-term employees. The company is not sure why this is suddenly occurring. In fact, Human Resources had not been really tracking these things until they noticed it was an issue.

• What kind of HR metrics should the company start using to track employee turnover costs and issues?
• Why are these metrics important to establish and continue with?
• Understanding what drives employee retention is the next step. What are four drivers of retention that this company should now focus on?
• Which two drivers do you think are the most important for any company, and why?

Answer 1

• What kind of HR metrics should the company start using to track employee turnover costs and issues? The company must start tracking employee productivity and attendance metrics to understand the employee turnover costs and issues.
  
• Why are these metrics important to establish and continue with? These metrics will help the organization understand the motivation, skill-set and training requirement of it's employees. Further it will help the company analyse the de-motivating factors and ensure necessary pre-cautionary measures are taken to ensure employee turnover is minimized.
  
• Understanding what drives employee retention is the next step. What are four drivers of retention that this company should now focus on? - The four drivers of retention this company must focus on are Employee empowerment, scope for career development and growth, Provide motivation and inspiration and provide necessary training and facilities which enable the employee to improve productivity.
  
• Which two drivers do you think are the most important for any company, and why? - Motivation and employee empowerment are the most important drivers for any company. These directly impact of employee satisfaction and ensure the employees work positively towards achieving their targets. Also, this causes self-motivation to contribute towards organizational goals and provides the necessary internal push to achieve break-through performances.