Reducing Turnover

In: Business and Management

Submitted By Iviq
Words 2066
Pages 9
RESEARCH RESULTS

REDUCING TURNOVER
R E A L I Z AT I O N R E S U LT S : ACROSS A SAMPLE OF 35 CLIENTS, DDI SOLUTIONS REDUCED TURNOVER BY AN AV E R A G E O F 4 8 P E R C E N T. F O R M O S T CLIENTS, DDI CAN OFFER REDUCTIONS IN TURNOVER RANGING FROM 2 2 TO 7 4 P E R C E N T. I N A N O R G A N I Z AT I O N OF 10,000 PEOPLE WITH 10 PERCENT TURNOVER, DDI’S S Y S T E M S C A N S AV E ABOUT $4.3 MILLION .
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4. Biographical Data Requesting information about candidates’ life experiences (e.g., family, hobbies, attitudes) that correlate with job performance. 5. Motivational Fit Inventories Measuring candidates’ preferences for the job, the organization, and location qualities.

The cost of replacing a non-management employee has been estimated to be approximately 30 percent of that employee’s annual salary. Replacement costs for managers can approach 50 percent of salary. For an organization with 10,000 employees and managers, this replacement cost can total $12.6 million per year2. Employees leave an organization for many reasons, but two common causes are the quality of the selection system and the quality of leadership.

LEADERSHIP QUALITY
A recent DDI study revealed that two of the top factors driving retention are the quality of the relationship a person has with his or her supervisor or manager and the amount of meaningful work4. There are many things that an organization can do to improve these factors. Some solutions directly improve leaders’ skills, while others improve systems and the work environment. DDI offers a full range of solutions, including: • Individual Assessments—Using objective measures, such as assessment centers and multirater feedback, to diagnose leaders’ individual needs for development. • Performance Management—Providing a system for setting goals, providing feedback and coaching, reviewing progress, and creating development plans. •…...

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