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HR Outsourcing Can Help Reduce Turnover and Ensure Long-Term, Productive Employees

Guest post by: Ari Rosenstein

Article Overview: Human Resources Outsourcing firms can provide the expertise and support to implement successful orientation and training programs to help reduce turnover and ensure long term, productive employees.

HR Outsourcing Can Help Reduce Turnover and Ensure Long-Term, Productive Employees

Reports consistently show that the cost of employee turnover can be extraordinarily expensive. Estimates range from 150% of total compensation for hourly employees, to 200% - 250% of compensation for managerial and executive staff. Human Resources Outsourcing firms can provide the expertise and support to implement successful orientation and training programs to help reduce turnover and ensure long term, productive employees.

What Constitutes Turnover Costs?

You may not notice any additional expenses when an employee turns over, but take the following expenses into consideration when an employee quits or is fired:

Costs relating to person leaving:

• Temp staff filling in vacant position
• Time related to exit interviews, and other administration (COBRA, final checks, benefit deductions, completing final forms, etc…)
• Severance packages
• Lost training and/or certification expenses
• Unemployment benefits

Costs relating to hiring new staff:

• Advertising costs
• Recruiting expenses (either external fees or internal time)
• Pre-employment tests and screening
• Administration of new hire paperwork
• Time invested in employee orientation and training

Lost Productivity Costs

• Assume 25% productivity level for weeks 2 - 4
• 50% productivity level for weeks 5 – 12
• 75% productivity level for weeks 13 – 20
• Time invested by other department members getting new employee “up to speed”

HR Outsourcing – An Effective Option to Reduce Turnover

While every cost may not relate to your business, it is obvious that employers should be aggressively looking for ways to reduce turnover. One of the most effective methods of reducing turnover and ensuring long term employees is to hire a Human Resources Outsourcing to implement an employee orientation and training program for the first 90 days of employment (and beyond!).

HR Outsourcing firms work with hundreds, if not thousands, of clients and can provide the most effective recommendations and support to recruit, orient, train and motivate staff.

33 Tips to Reduce Turnover

We present here 33 tips gleaned from the past 30 years of HR outsourcing experience to help you retain, and train, productive employees.

Day 1

1. Review job description and performance standards: expected outcomes, success metrics, introductory period, etc,

2. Impart the company’s customer service philosophies

3. Review work schedule, lunch breaks, timekeeping systems as appropriate

4. Describe who and how to notify of sick or vacation leave

5. Discuss overtime needs and how assignments are given

6. Review appearance and professionalism – mention online interactive exercises that demonstrate dress code, reiterate what is too casual. Review workspace neatness, decorating limits

7. Review communications policy, including personal phone calls, appropriate email content, use of pagers, etc.

8. Review policy on visitors and personal conduct

9. Review policy on after-hours and weekend access

10. Review procedures for security, privacy & handling of confidential information

11. Review potential safety issues they may encounter

12. Review Ethical guidelines concerning meals, gifts, travel, entertainment as necessary.

First Week

13. Begin the performance planning process

14. Review the employee’s work area to make sure they have everything they need to do their job

15. Meet with the new employee (and possibly their buddy) at the end of each day to review, answer questions

16. If needed, review travel policies and procedures

17. Explain safety policy, reporting of all accidents and injuries (when, to whom, and how), first aid facilities, emergency medical attention

18. Explain the company’s unique selling proposition

19. Explain the company’s products and services

20. Explain the company’s customers, clients, vendors, and competitors

Within the First Month

21. Check to make sure employee has signed up for benefits, if applicable

22. Review teamwork expectations

23. Establish performance goals and schedule first performance appraisal meeting

24. Make sure the employee understands the relationship between his/her job and the company’s success

25. Insure technical competence, make sure any questions asked have been thoroughly answered.

26. Review current departmental goals (if they exist) for the next 90 days, 6 months and 1year

27. Review any community involvement projects or volunteer opportunities available for the new employee

90 Days and Ongoing

28. Celebrate the completion of their introductory period

29. Schedule periodic progress reviews. Discuss orientation items, ask for feedback on the process. Allow them to ask any and all questions they may have

30. Review departmental goals and success benchmarks

31. Review performance expectations

32. Meet regularly with new employees to answer questions and confirm that the new employee is becoming acclimated to the department and position responsibilities

33. Schedule training as necessary

If you are looking to reduce turnover and improve employee productivity, you should contact a Human Resources Outsourcing firm whose experts will be able to review your HR practices and make recommendations for improved performance.

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Article Tags: employee turnover, HRO, human resources outsourcing, outsourcing HR



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One More Thing... - Ensure they clearly (i.e. they understand, not just you understand), what is expected of them. Regards
Re: Ways to Boost Productivity - 1. Give Employees More Than a Paycheck 2. Provide Better eSupport Channels to Promote Self-Service 3. Complete your most dreaded tasks first thing in the morning. 4. Outsource as much as possible 5. . Turn off the TV.
How to you re-fresh yourself? - Productive time improvement is about increasing the time that you, your staff or your organisation has available for front-line service delivery; and making sure that time is being used to best effect - "working smarter" by: - doing the right things - (eliminate unnecessary work) - the right way - (use standard, streamlined processes) - with the right people - (right skills, availability, location) - using the right tools and equipment. But we all will agree that somewhere we don't follow these and give ourselves a break. When I give myself a break, I a. play online games b. chat on Internet c. Listen to some soft music What you do when you are not "working smarter"?
Re: What is your biggest challenge? Today? - Outsourcing and time management, but I'm continually making progress.
CEOs and Email - Slaves? - I wonder if the emails they are responding to are filtered thru their assistants first 'cos they seem to spend a lot of their off hours responding to them. True they are successful but I'm not sure I'd be willing to pay that price. I'd be interested to know what's the in the typical day planner of Entrepreneurs on the Forum. Entrepreneurs are a different breed than Paid Employees- so it would be interesting to view the contrast.


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