Rethinking Retention in Good Times and Bad

Finnegan, Richard P.
May 2010
Rethinking Retention - Business Book Summaries;5/6/2010, Vol. 1 Issue 1, p1
Book Summary
Book Summary
Employee turnover is one of the primary concerns of U.S. executives, and the business world is still searching for an effective process that will maximize retention. Turnover is especially dangerous in economic recessions, due to a lack of qualified talent and unbridled wage inflation. In order to find loyal workers, companies must identify their own strengths and weaknesses, and begin to offer unique rewards that will keep employees working for years�even decades�to come. Studies indicate that employee turnover costs anywhere from 12 to 40 percent of a company�s pretax income, making turnover a critical issue for executives in all industries. Turnover is especially important in poor economies, since those who voluntarily leave their jobs are likely to be top performers. In Rethinking Retention in Good Times and Bad, author Richard Finnegan presents a practical new model that can help businesses of all kinds hold onto their best workers. The Rethinking Retention Model includes three principles that will help executives understand their retention problems, and seven strategies that can boost retention in any department. Each of these points is examined in detail throughout the book. The three principles at the foundation of retention are: 1) Employees quit jobs because they can. 2) Employees stay for things that are unique to a company. 3) Supervisor relationships drive both retention and turnover. The basic strategies suggested by Finnegan to boost retention are: 1) Hold supervisors accountable for achieving retention goals. 2) Develop supervisors to build trust with their teams. 3) Hire the right people. 4) Script employees� first 90 days. 5) Ensure that company policies drive retention. 6) Calculate turnover cost and communicate the problem to management. 7) Drive retention from the top. While these strategies describe ways to deal with specific problems, it is important to note that the common thread that runs through all...


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