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HowtoreduceemployeeturnoverJohnZ.YangFordhamUniversityGBABiMBA,PekingUniversityWhyareemployeesleavingtheorganization-personalissues•Familyresponsibilities•PlantostudyMBAMBA•Plantobecomeself-employed•Healthreasons•Spouserelocation•Imbalancebetweenworkandpersonallife•ToolongtocommutetoworkplacesWhyareemployeesleavingtheorganization-careerissues•Lackofcareer/promotionopportunities•Mismatchbetweenjobandcareergoals•Lackofopportunitytodevelopnewskills•Lackoftrusttomakeimportantdecisions•Limitedtrainingprograms•Glassceiling•LackofchallengingassignmentsWhyareemployeesleavingtheorganization-compensation•Overalldissatisfactionwithpay•Dissatisfactionwithcompanybenefits•Payisbelowindustryaverage•Lackofincentivessuchasbonus/options•Skillsarenotrewardedwithbetterpay•Compensationisseniority-based•ThereisinequalityinincomedistributionWhyareemployeesleavingtheorganization-job-relatedissues•Gapbetweenexpectationandrealwork•Overworkwithtoomanyresponsibilities•Noopportunitytouseskillsandknowledge•Uninterestingandunchallengingwork•Lackofclarityaboutjob&responsibilities•Lackofquickfeedbackonperformance•LackoftrustfromsupervisorsWhyareemployeesleavingtheorganization-workrelationships•Conflictwithmyimmediatesupervisor•Conflictwithmyco-workers•Conflictwithmysubordinates•Conflictwithcustomersandvendors•Managementhasnoconfidenceinme•Havelosttrustinseniormanagement•MyimmediatebossisajerkWhyareemployeesleavingtheorganization-workstructure•Lackofflexibleworkarrangements•Physicalworkingenvironmentisnotgood•Inadequatesystemssupportforthejob•Receivelittletrainingtoperformmyjob•Inadequateresourcestoaccomplishjob•Norecognitionformyaccomplishments•ToomuchpoliticalobstaclestodomyjobWhyareemployeesleavingtheorganization-management•Lackofteamspiritsinthecompany•Lackofbusinessintegrity•Lackofgoodcommunicationwithstaff•Unclearcompanybusinessstrategies•Inconsistentcompanypolicies•Reluctanttoinnovateandchange•ToomuchuncertaintiesintheorganizationKeyFactorsAffectingCurrentWorkIncentivesofKeyFactorsAffectingCurrentWorkIncentivesofChineseemployeesChineseemployeesIncentives&MotivatesSupervisorandpeerrelationsOrganizationformandtypeCorporateCultureEquityandfairnessJobSecurityandstableemploym’tJobcontentandjobpositionKeyFactorsAffectingCurrentKeyFactorsAffectingCurrentWorkIncentivesofChineseWorkIncentivesofChineseSalary,welfareandBenefitsCareerdevelopment&PromotionHowtoreduceturnovers--somebasictheoriesofmotivation-1.Theoryofhierarchyofneeds2.Thehygieneandmotivatingfactors3.Socialequitytheory4.TheoryXandtheoryYXY5.Expectationtheoryofmotivation6.Reinforcementtheoryofmotivation7.JobdesigntheoryofmotivationHowtoreduceturnovers:twofactortheorybyFrederickHerzberg•••••••••••Howtoreduceturnovers--matchimbeddedinterestswiththejob••••••“”••••UseMarketMechanismtoretainemployeesbyPeterCappeli,HBR,Jan2000••••••“”••••••Howtoreduceturnovers:locateandretainyoungmanagers••“”••(OUTSOURCE)•Howtoreduceturnovers:establishmerit-basedpractices•Merit-basedsalaries•Merit-basedbenefits•Merit-basedpromoti’•Linkskillswithpay•Linktrainingwithpay•Payonjobanalysis•Positivereinforcement•Negativereinforceme’•Optionsbasedonperformance•Bonusesbasedonperformanceappraisal•Rewardteamworkandindividualwork•Littleuseofseniority-basedprinciplesHowtoreduceturnovers:enhancecareerdevelopment•Regularjobtraining•Offthejoblearning•Encouragejobrotation•Internaljobpostings•Matchjobwithstaffcorecompetences•Makejobsmoreinteresting/challenging/•360degreejobevaluation360•Shortandlong-termperformanceappraisal•Quickfeedback•Specialisttrackbasedonskillsets•GeneralisttrackbasedonoverallknowledgeHowtoreduceturnovers:Buildcompetentmanagementteams•CEO’svisionCEO•Corporatemission•Uniquefirmculture•Establishtrust•Developclearbusinessstrategiesandtactics•Sensitivetohumanneedsandgrowth•Task/humanoriented/•Flatfirmstructure•Team-basedmatrixes•Quickresponsetomarketchanges•Defineresponsibilitiesandincentives•Neverbehaveasjerk