Stopping Attrition

                     The Smarts to Save People

The Associated Press did a lengthy piece on Convergys ("Call-Center Company Fights Employee Churn") and their efforts to reduce attrition at their call centers. The piece described how Convergys uses a red-yellow-green weekly indicator to identify the likelihood of employees bolting.

This system uses 50 indicators "such as increased tardiness or declining performance". Those getting a red indicator are treated to an "intervention" by a manager. Managers, in turn, are tracked by their ability to stem attrition. For the record, the article indicates that attrition in call centers can range from 35-70 percent annually.

What really got my attention about this concept was that it closely resembled a system I suggested for an HR applications software vendor last year. I suggested that there are a number of red flags employees give off that indicate a high propensity to leave their employer. For example, any of these workers will have a higher likelihood of departing:

• Employees who suddenly show an increased use of sick, vacation or personal days
• Employees who exercise stock options, particularly if they exercise all of their options
• Employees who get a new boss
• Employees who get a new boss and suddenly get a lower than average performance review
• Employees who get transferred to a new organization unit against their wishes
• Employees who have not had a material raise in 24 months
• etc.

That discussion proved worthless as what I suggested was "too behavioral" and not transaction-oriented enough for this vendor. They were clearly stuck in the payroll processing mindset to realize that HUMAN RESOURCES is more than transaction processing.

EVERY HR, MANAGERIAL & EXECUTIVE employee should be measured on how well they retain people. I believe everyone who manages people should be able to retain staff at least a year longer than their industry average. If you aren't, the reasons why are pretty obvious. If you can barely manage average retention then you're probably:

• a jerk to work for
• someone who doesn't care about your employees
• a soulless individual who lacks empathy
• focusing all your energies on 'C' level employees and ignoring your 'A' players
• a user of people
• a cheapskate
• clueless
• missing some basic human qualities
• not very attuned to non-work people issues (e.g., family schedules, illness, etc.)
• imperious
• etc.

I've seen all manner of these 'managers' and wouldn't give you two-cents for any of them. Sadly, too many firms promote workers into management or executive roles before these people have demonstrated any ability to:

• understand what truly motivates people (answer: That you care about them and appreciate their work)
• show flexibility when it comes to accommodating great people
• really understand their employees

There are some great tests I use with potential executive hires. I ask them:

• When was the last time you invited a group of employees to your home for a casual meal?
• How often do you take employees out for a bite of lunch?
• How many of your employees' spouses/significant others have you met (and spent some time getting to know)?
• Does your car/home look pretentious compared to those of your average employee?

The Convergys story was interesting but only because so few companies actually pay attention to attrition. In my past career, I was stunned to hear in my annual review that I needed to watch my personal/professional life balance. I was stunned because I wasn't the one who decided I needed to serve clients in Switzerland, Venezuela and Thailand that year. While the company preached balance and lower attrition as goals, it did nothing to ensure that people followed through with well-thought out staffing plans and other personnel efforts.

Service firms have a tough time with retention because resource management often takes a back seat to financial performance. Make sure your firm makes these goals on a peer with each other and watch financial gains grow significantly. When you retain people 12 months longer than average, then recruiting costs plummet, training costs fall, and average billing rates rise because you're keeping more senior, experienced personnel and you'll incur few planned/unplanned fee adjustments.