How to Set Strategic Goals for Staffing, Turnover and Compensation:

Part II Turnover

Terminations or turnovers can have advantages -an opportunity to add new players with innovative ideas is never a bad thing. Yet, turnover is costly. Depending on the level of skills and experience, you can expect the loss of an employee to cost the company somewhere between one and half and three times their annual salary.

Establish goals for controlling turnover in key positions. Knowing your company’s business strategies and objectives will help determine which positions will need high priority replacements when opened through turnover.

First, look inside. What programs do you have in place to develop your internal talent to step up when the opportunity presents itself? Setting up an organization development plan, including growth strategies for up and comers, can keep the intellectual property inside the organization while satisfying the career plans of top performers. Not only will this help fill critical positions quickly but it also helps retain key talent. Investing in their future is an effective, strategic investment in your business.

Use the same recruiting skills normally exercised on external talent to keep track of your internal candidates. Check on their satisfaction in the workplace. When you detect dissatisfaction or restlessness, begin marketing their talents to other managers inside your business. Although there may not be a permanent or long term growth solution, there are options for dealing with the restless spirit of your valuable human resources.

Next, identify positions where the need for creativity may mean moving people in and out on a regular basis. This creative approach to talent retention is building momentum. Taking a cue from small businesses where employees often have several job responsibilities, bigger businesses are stretching talent by expanding and diversifying job responsibilities to keep employees engaged. Maybe you have a short term opening due to a health absence, or need a special skill on a big project. Knowing your talent repository, you can identify and utilize specialized skills or interests.

These engagement tips can help you keep talented employees while controlling costs and retaining important intellectual and skills capacities.

Next time: Strategic goals in your compensation plans