In yesterday’s Advisor, we shared some of the findings from the 2014 Recruiting and Retention Survey. Today, we have further results from our timely study, including best practices in retention and onboarding new hires.
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A total of 919 individuals participated in this survey, conducted in November 2014.
New Hire Programs
Getting new employees on board is formalized for 88.4%. It is an ongoing process during the first 1 to 3 months of employment for 22.3% and is 1 to 2 hours of orientation for 18.3%. Multiple sessions spread across several days within the first week of employment is the norm for 17.4% and a single, full day is the process for 10.7%. A half-day is utilized by 16.1%. Benefits enrollment occurs during orientation for 36.2%. It is during the first week of employment for 17% and during the first month for 25.5%.
Management team members participate in the onboarding process for 75.3%. Training on how to successfully onboard new employees is received by 46.8% (up from 38.3% in 2013) and mentors or buddies for new employees are provided by 43.2%.
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Retention
Employee turnover is tracked by 73.2%, with management turnover at 1% to 10% for 38.6% and for professionals it’s the same rate for 37.1%. Turnover of mid-level employees is below 10% for 37.1% and 11% to 25% for 15.6%. The rate of turnover for entry-level employees is under 10% for 25.8% and 11% to 25% for 18.5%.
This survey looked at retention from two different perspectives. First, we asked participants to select the options they use to retain qualified employees from a list of common practices. Here are their top 10 selections:
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1 |
Adequate benefits |
83.6% |
|
2 |
A safe, healthy work environment |
69.4% |
|
3 |
Fair and equitable treatment |
61.3% |
|
4 |
Training and development opportunities |
60.6% |
|
5 |
Pay at or above market rate |
55.1% |
|
6 |
Employer trust, respect, and consideration |
51.5% |
|
7 |
Opportunity for advancement |
51.2% |
|
8 |
Appropriate and fair discipline for rule breakers |
50.9% |
|
9 |
Engagement between employers and managers |
49.7% |
|
10 |
Incentives such as bonuses and profit-sharing |
49.1% |
Next, we asked survey participants to select, from the same list, which practices are most effective when it comes to retaining employees. Here’s the top 10:
|
1 |
Adequate benefits |
67.6% |
|
2 |
Pay at or above market rate |
65.2% |
|
3 |
Employer trust, respect, and consideration |
65.3% |
|
4 |
Fair and equitable treatment |
63% |
|
5 |
Effective management |
58.6% |
|
6 |
Engagement between employers and managers |
57.9% |
|
7 |
Opportunity for advancement |
57.3% |
|
8 |
Training and development opportunities |
52.2% |
|
9 |
Performance recognition and reward |
50.9% |
|
10 |
Work/life balance through telecommuting, flextime, etc. |
50.1% |
As you can see, many of the selections were the same and, realistically, to be expected. What might not be expected, however, is what’s different. For example, a safe and healthy work environment came in second for methods used but didn’t make the cut for what works to retain employees. Also, the items that came in tenth show that cash incentives are used but providing work/life balance is more effective.
Survey Participants
A total of 919 individuals participated in this survey, which was conducted in November 2014. Of those who identified themselves, 58.5% represent privately owned companies, 21.3% are with nonprofit organizations, 10.7% are with public entities, and 9.5% work for government organizations.
The majority (56.2%) of our survey respondents provide HR services to a workforce of 1 to 250 employees. Another 14.3% provide guidance to 251 to 500 employees at their organizations and 11.3% have a workforce of 501 to 1,000 employees. Companies with more than 1,000 employees account for 18.3% of survey participants.
A little below 25% of survey respondents (24.1%) have a workforce that is more than 50% exempt employees. As for unions, less than 10% of the employers surveyed have a workforce that is 50% to 100% unionized and 85.5% have a workforce where less than 25% are union employees.
Over half (65%) of the participants are in service industries; 21% are in agriculture, forestry, construction, manufacturing, or mining; 10% are in wholesale, retail, transportation, or warehousing; and 3% are in real estate or utilities.
Managers account for 54.6% of the survey participants who self-identified, VP or higher make up 23.5%, supervisors are 5.7%, and staff-level employees round out the field of survey participants at 16.1%.
Thanks again to all who participated!
Compensation will be a big factor in retention for 2015, and your comp model must evolve alongside your organization. How to get there? Fortunately there’s timely help in the form of BLR’s new webinar—Compensation Model Design: How to Inspire and Nurture Innovation at Your Organization. In just 90 minutes, on January 21, 2015, you’ll learn everything you need to begin taking steps towards a more innovative compensation plan—and making sure it aligns with your business strategy.
Register today for this interactive webinar.
Compensation is key for retention in the New Year. Join us January 21, 2015, for a new interactive webinar, Compensation Model Design: How to Inspire and Nurture Innovation at Your Organization. Earn 1.5 hours in HRCI Recertification Credit. Register Now
By participating in this interactive webinar, you’ll learn:
- The biggest areas of compensation that are ripe for innovation
- Executives’ “compensation fears”—why what they are most afraid of holds them back
- How to manage the risk that comes with innovation as it applies to compensation
- What top performers want in compensation packages today, and how that can drive innovation and organizational performance
- How to design a compensation structure that’s solid but still has the flexibility that companies require
- Beyond base, bonus, and benefits—new kinds of compensation models on the horizon that you should think about embracing today!
Register now for this event risk-free.
Wednesday, January 21, 2015
1:30 p.m. to 3:00 p.m. (Eastern)
12:30 p.m. to 2:00 p.m. (Central)
11:30 a.m. to 1:00 p.m. (Mountain)
10:30 a.m. to 12:00 p.m. (Pacific)
Approved for Recertification Credit
This program has been approved for 1.5 credit hours toward recertification through the Human Resource Certification Institute (HRCI).
Join us on January 21, 2015—you’ll get the in-depth Compensation Model Design: How to Inspire and Nurture Innovation at Your Organization webinar AND you’ll get all of your particular questions answered by our experts.
Train Your Entire Staff
As with all BLR/HRhero webinars:
- Train all the staff you can fit around a conference phone.
- Get your (and their) specific phoned-in or emailed questions answered in Q&A sessions that follow the presentation.