Cut Turnover, Build Retention: Experts Explain How to Do Both

When talk turns to turnover and retention, we've all heard the gloomy statistics.

Of every 10 workers in your organization now, three will retire over the next 10 years. Out of that same 10, three others are looking for new jobs even as you read this. And if you've hired younger "20-somethings," expect them to stay no longer than 18 months, on average, before moving on. What about the replacement cost when a skilled worker leaves? Estimates range from $7,000 to millions, depending on the position in the organization.

These stats were recently reported by retention specialist Greg Smith of Chart Your Course International in Conyers, Georgia. Smith also offered a recipe of "proven ways to retain your best employees." Additional ideas for retention come from Susan Heathfield, About.com's HR specialist, especially on dealing with younger, so-called "Millennial" and "Generation X" workers. Let's review some the advice that these, and other experts, have given on improving your rates of retention:

--Hire the right people. Retention starts with putting people in slots that are comfortable and productive for them. A sense of achievement is key, and that's most likely to happen when the employee fits the job and vise versa. Use pre-employment testing to hire, then focus special attention on the first 90 days of employment, says Smith. "This is a great opportunity to make new hires feel proud to have chosen your organization," he notes.

--Understand what motivates your employees. This especially applies to generations that differ from your own, adds Heathfield. "To better understand who your Millenials are," she says, "understand who they are not: You." She explains that while Baby Boomers were on a quest to climb the career ladder, following generations see work 'as something to do between weekends.'" They're in it for the money, Heathfield declares, and will do the work you assign for the pay that fuels their lifestyles, but they won't take on new challenges on their own. Reward them with paid time off, she suggests, instead of promises of future promotions, which are less important to these age groups.

--Be flexible with time, say both experts. Today's workers seek work/life balance and will remain loyal to organizations that respect the demands of their lives outside work. Smith suggests allowing workers to take off to care for a child or parent without using up their vacation or sick days, while Heathfield suggests handing out "Working Hard Cards" for extra effort on the job. The cards can be cashed in for a set amount of paid time off. --Work with managers on retention. It's often pointed out that employees don't leave their company, they leave managers who they feel have treated them unfairly or with whom they can't get along. The experts advise training managers to work on their off-putting tendencies, to recognize their employees' achievements more often, and to keep an open ear for grievances before they reach the level of "I quit!"

What if valued workers do leave? Don't be afraid to rehire them when they find out that the grass isn't really greener elsewhere, says Smith. "Keep the doors open for the good ones to come back."