Predicting employee turnover
Most human resource professionals and managers understand the cost and pain of employee turnover, particularly when it is a high-performing employee. TeamBonding, a team building resource, published an article with a turnover formula, where they calculated employee turnover costs as a function of their salaries. According to their research, entry-level employee turnover costs a company 30%-50% of an annual salary, while mid-level employee turnover costs a company 150% of an annual salary1.
So why aren’t HR professionals trying to predict turnover? By building an attrition model consisting of things like team size, team structure, manager performance, location or other factors, you can predict turnover and use the findings to influence the overall organizational structure. Classification and Regression Trees (CART®), Logistic Regression and other predictive modeling techniques can pinpoint which factors matter to your employees.
We can help you do just that! Whether you're getting started or looking to take your predictive analytics capabilities to the next level, Minitab can provide deeper insights into your data.Another important aspect of capital analytics is employee engagement.
Do You Know What Your Employee Engagement Entails?
Anyone focused on human capital analytics will agree that engagement is an important metric to consider when it comes to any workforce. Generally, engaged employees who stay at their jobs reduce turnover costs for an organization. According to the Huffington Post, there are ten reasons why employee engagement matters2.
Do you know what your employee engagement translates into? Perhaps, engagement at a plant means higher focus on safety, while helping the company and its employees avoid costly and dangerous accidents. Engagement could also mean higher sales for a sales team at a tech company. Or maybe engaged employees are bringing the best ideas to the table and fostering innovation, as the Huffington Post article suggests.
Optimizing Employee Recruitment
Employee recruitment is the lifeblood of any organization, and doing it effectively can reduce significant cost and boost productivity. Recruiting takes a lot of time and effort, so targeting the right type of hire is critical. Ultimately, if you onboard an employee who isn't a fit, you lose the opportunity for production and incur high turnover cost.
We are here to help you optimize your recruitment efforts. Analytics can assist your recruitment strategies in multiple ways. Simple analysis of employee performance, say from different recruiting platforms or universities, can help optimize recruiting efforts by increasing focus on successful channels, as explained in our blog.
Another option is to analyze traits and behaviors of more successful employees to model the type of employees you’d like to bring on as an organization. For example, wouldn’t it make sense to analyze the traits of top-selling salespeople, so that you could build an optimal recruiting profile for your future hires?
At Minitab, we help organizations discover valuable insights in their data. We make it simpler than ever to get deep insights from your data.
CHOOSING Compensation and Benefits THAT Motivate
Do you know what compensation and benefits truly motivate your employees? According to Forbes, if a business wants the best talent in the industry, they need to provide competitive benefits to attract the best talent. To expand on that, they highlight 11 tips for creating a successful employee benefits package3.
According to plansource.com, the most important best practice for selecting employee benefits is choosing those that your employees value the most. From health and wellness to personal development, the employee benefit platform highlights 85 creative employee benefits that fit any budget4. They also recommend providing options and making sure those benefits are progressive. According to Eric Mochnacz, Consultant at Red Clover, “Employees will continue to want non-traditional and progressive benefits. HR will have a responsibility to recommend benefit packages that include flexible scheduling, office child care, and fun office activities like Taco Tuesday and Ice Cream Fridays.4”
That said, how do you know what benefits and incentives your employees actually want? You can ask them! By running a simple designed experiment, you can survey your employees and determine what matters to them. You can use that data to provide the benefits and incentives that they want, so you can increase engagement. Minitab can help you do just that on an easy-to-use, seamless platform!
These days, building a predictive model is easy to do with Minitab Statistical Software and Salford Predictive Modeler. Need help getting started? Minitab’s consulting team is happy to come on-site and help you build your model to reduce costly turnover.