Contents
May-June 2015 9 Member Profile: Rocky Mountain MS Center
1  A Note From the Editor
Workplace Investigations Services
2  Federal Contractors: LGBT Regulations Effective April 3, 2015
10 From the MSEC Library: Pain Points
3 Affirmative Action Planning Services
12 Update on NLRB Quickie Elections: Union Free Employers Take Notice
Pre-Employment Screening & Testing
4 Managing Investigative Leave
Membership Meeting - Recruiting
13 MSEC Library
5 Employee Engagement Surveys
14 2015 Benefit Update Conference
6 On-sites
15 Staff Spotlight: Curtis Graves
7 Member Best Practices: Wellness Fair at the Rockies
16 Trends in Employee Turnover: What is the Financial Impact of Turnover on Organizations?
8 Calling All Millennials!
MSEC
TAKING CARE OF BUSINESS More than 3,000 organizations in 77 industries, representing nearly a million employees, have chosen MSEC as their trusted business partner. We take that partnership seriously and are committed to making employers successful. In 2015 we are focused on helping you take care of business by providing the expertise and tools you need to address your employment law and human resources challenges.
MAY-JUNE 2015
|
MSEC.ORG
A Note From the Editor
Lorrie Ray
Membership Development
Are you hiring? Many of our members are, and so are we at MSEC! Why are we all hiring? The economy is heating up and providing employers and employees with opportunities. That means employees are leaving to go to new jobs, you have to replace them, and you may have new jobs to fill at the same time. A good friend of mine at MSEC had a few recommendations for me, as I fill one new position, and replace an employee who had an offer for a job five minutes from her house with more responsibility and a commensurate salary. Here are tips I think we all know, but may not be thinking about in our rush to fill the position: 1. Hire slowly (the corollary is to discharge soon if it is not working), and get the right person for the job. Make certain you have a good pool of applicants, and that you gather the information you need to assess their knowledge, skills, and abilities. This may mean a background check and a good interview process. 2. Cultural fit trumps skills. When you interview, ask others to interview the applicant who you enjoy working with and who will be interacting with the new employee. Get honest feedback about their level of excitement about this potential employee. This will help ensure a cultural fit. 3. The best predictor of future performance is previous behavior. Ask questions of previous employers. Ask behavior-related interview questions. Don’t give away the answer in your interview questions. Don’t let your bias toward an applicant suffice for gathering information from the applicant and others about their past performance. 4. Don’t ignore your instincts. It’s so easy to just hire the person who seems to have the knowledge, skills, and abilities to do the job, but if you have a bad feeling about this hire, stop and track that feeling down before making a decision. 5. Plan the onboarding process carefully. Research shows that new employees who can be productive and successful immediately are more likely to stay longer. Make sure your onboarding process includes valuable work by the new employee. Hopefully with this advice, I will make the best decision and the employees I hire will be employees we keep at MSEC.
Finding the truth in a workplace allegation can be like finding a four-leaf clover. Let MSEC do it for you. We will conduct a thorough investigation and provide the findings in a comprehensive investigation report that becomes your legally defensible basis for informed decision making. MSEC investigators, are experienced employment law attorneys, and practiced interviewers.
MAY-JUNE 2015
|
MSEC.ORG
1
Federal Contractors: LGBT Regulations Effective April 3, 2015 Melinda Sanders, Affirmative Action Services
On July 21, 2014, President Obama signed Executive Order 13672 (Order) prohibiting federal contractors from discriminating based on sexual orientation or gender identity. This amends Executive Order 11246, which prohibits discrimination by federal contractors based on race, color, national origin, sex, or religion. Rules implementing the Order became effective April 8, 2015 and the Order applies to federal contracts entered or modified on or after April 8, 2015. A “modification” of a contract may include extending the length of an existing contract beyond its original end date, or may reflect revised requirements or specifications. Federal contractors are not required to conduct any data analysis with respect to the sexual orientation or gender identity of applicants or employees, and there are no “utilization” goals for sexual orientation or gender identity. Thus, federal contractors are not expected to employ or hire any specified percentage of employees based on sexual orientation or gender identity. Federal contractors are not required to solicit information from applicants or employees about gender identity or sexual orientation, and MSEC recommends that employers not solicit this information, as it may violate state or local laws. Neither the Order nor the implementing regulations define “sexual orientation” or “gender identity.” In general, the Office of Federal Contract Compliance Programs (OFCCP) uses the same definitions the Equal Employment Opportunity Commission uses and which have developed under Title VII case law. “Sex stereotyping” is one way a transgender employee, job applicant, or former employee could prove sex discrimination. This is different treatment of a transgender employee because he or she does not conform to the stereotypes associated with his or her biological sex is a form of sex discrimination. EEOC and OFCCP consider such treatment a form of sex discrimination in violation of Title VII, because it relates to the sex of the victim. This is true regardless of whether the discrimination was motivated by sex stereotyping or by some other reason related to the employee’s gender identity, such as discomfort with the idea of a transition. The United States Office of Personnel Management issued a memorandum titled, “Guidance Regarding the Employment of Transgender Individuals in the Federal Workplace.” It defines gender identity as “the individual’s internal sense of being male or female.” Transgender is defined as “a gender identity that is different from the sex assigned … at birth.” Some individuals will transition from living and working as one gender to another. An employee’s transition should be treated with as much sensitivity and confidentiality as any other significant life experience, such as hospitalization or marital difficulty. Employees should be advised not to spread information about an employee who is in transition. Employees should apply dress codes to the transitioning employee’s new gender in the same way that they are applied to other employees of that gender. Managers, supervisors, and coworkers should use the name and pronouns appropriate to the employee’s new gender.
2
MAY-JUNE 2015
|
MSEC.ORG
Executive Order 13672 made no change to the existing religious exemption, which was added to Executive Order 11246 by President Bush in 2002 and allows religiously affiliated contractors (religious corporations, associations, educational institutions, or societies) to favor individuals of a particular religion when making employment decisions. Thus, whereas religiously affiliated contractors may make employment decisions based on religion, they are not excused from complying with other affirmative action requirements, including the prohibition against discrimination based on sexual orientation or gender identity. However, this would not apply to a religious organization’s ability to make employment decisions about its “ministers,” a category that includes, but is not limited to, clergy. Please contact MSEC’s Affirmative Action Planning Services with questions.
AFFIRMATIVE ACTION PLANNING SERVICES MSEC prepares more than 500 Affirmative Action Plans annually. Our menu of options is flexible, feature-rich, and customizable to meet the specific needs of your organization. Call 800.884.1328 or email us at aaps@msec.org.
MAY-JUNE 2015
|
MSEC.ORG
3
Managing Investigative Leave Jody Luna, Workplace Investigation Services
TAKING CARE OF BUSINESS Free Membership Meeting
In the interest of impartiality, it’s often best to put someone accused of improper behavior on leave during an investigation. This allows the investigation to go forward untainted by the presence of an interested party.
June 4, 12:00-1:00 Lunch Included!
Employers often wonder how to administer such leave and frequently assume they should place the employee on a disciplinary leave. This is not a good approach. To put someone on disciplinary leave prior to finding fault could create liability for the employer, giving the impression that the investigation is partial and unfair, instead of fair and impartial. Instead, I advise employers to put an employee on administrative leave, or at the very least, investigative leave. To initiate it, write them a letter or email that explains the expected duration of the leave, the fact that the leave is paid, who to call with questions, and that they are expected to report when directed to meet with the investigator. Paying for the leave and providing an explanatory letter not only mitigate liability for the employer, but also help the employee know exactly what steps are going to take place, so they can understand an upsetting and difficult process.
Effective recruiting is critical for employers. While successful hiring may seem more like an art than science, there are actions successful employers take. Attend this meeting to find out how you can increase your chances to be successful. To register, call 800.884.1328 or go to MSEC.org.
If you have any other questions about workplace investigations, please let me know. I am happy to help you during a trying time.
4
MAY-JUNE 2015
|
MSEC.ORG
Employee Engagement Surveys Brittany Johnson, Custom Opinion Surveys
Employee engagement is a relatively new concept, but it has quickly gained popularity with survey practitioners. Although many surveys claim to measure employee engagement, survey practitioners and academics disagree on the definition of engagement and the correct way to measure it. As a result, surveys that claim to measure engagement actually measure employee judgments about their jobs, the organization, their work environment, and job attitudes such as satisfaction and/or commitment. For more than 30 years, Mountain States Employers Council has partnered with member organizations to measure the employee judgements and job attitudes mentioned above. While these job attitudes are potential drivers (e.g., managerial practices and policies, work environment, development and growth opportunities) and outcomes (e.g., motivation, loyalty, tenure, commitment) of employee engagement, it is an indirect measure of engagement. At MSEC, we offer a 63-validated-item survey measuring employee attitudes toward aspects of work such as leadership, training and development, supervision, compensation and benefits, and global satisfaction. Our survey is a valid predictor of loyalty, motivation, and anticipated tenure. We also provide members with access to an extensive bank of additional survey questions and experts who can write questions to meet your specific needs if the questions we have do not. If you have any questions regarding the employee surveys that MSEC offers, please contact us at cos@msec.org.
MSEC has been conducting employee engagement and satisfaction surveys for more than 25 years. Our state-of-the-art software creates surveys that work for your organization. We can help gather the information, provide a comprehensive report, and data interpretation. For more information call 800.884.1328.
MAY-JUNE 2015
|
MSEC.ORG
5
6
MAY-JUNE 2015
|
MSEC.ORG
Member Best Practices: Wellness Fair at the Rockies Lorrie Ray, Membership Development
meet a variety of vendors working with the Rockies on employee wellness, including: Anschutz Wellness Center University of Colorado Health’s pharmacy disposal service Orange Theory Fitness Zo Salon Recently I spoke with Melanie James, Human Resources Administrator at the Colorado Rockies, an MSEC member. She was instrumental in launching a wellness program in January of 2015, which she and others began planning in June of 2014. The first step the Rockies took was to assess the needs of the employee population so that its wellness program would be a good match, and they did this through an employee survey. As you can imagine, a significant portion of the employee population is already fit and takes care of their physical health. At the same time Ms. James wanted to reduce absenteeism, injuries and illness, and determined that as there is always room for improvement in the areas of health wellness and a healthy culture. It may surprise you to know that Rockies employees range in age from 23 to 80. Additionally, most employees have been at Rockies for at least ten years. The Rockies’ wellness committee is comprised of 20 employees who represent all departments in the organization. Out of this committee came the vision, mission statement, brand, logo, and an email address specific to the program. Videos, signs, and other collateral are being used to describe wellness: physical, emotional, mental, environmental, financial, and social. On January 14, 2015, the Rockies held their first annual health fair for employees, featuring a biometric screening, along with the opportunity to
Volunteers of America Boys and Girls Club They also went over benefit offerings with a question and answer session, and employees had the chance to speak with retirement advisors who could look at their individual accounts. Wells Fargo was there to help employees with basic financial questions, along with the EAP provider. Employees received a card that was stamped at each table. If the card was stamped by each station the employee was entered in a prize drawing. Ms. James received very positive response from the vendors, commenting that they enjoyed the fair and were impressed by the employee engagement. Other wellness sessions are in the works for 2015, including onsite yoga, massage, health care insurance seminars, and lunch & learns to include everything from navigating a children’s hospital to financial training with budget basics. Ms. James is just one example of human resources making a difference in the lives of employees and for the benefit of the employer. If you have any such examples, please let me know. I would love to feature more members like Ms. James in MSEC’s Workplace Matters Magazine.
MAY-JUNE 2015
|
MSEC.ORG
7
Calling All Millennials! Ashley Jones, Membership Development
Is it just me, or do Millennials get a bad rap? Whenever I hear prior generations talk about us, they often say we’re impatient, disrespectful, reliant on technology, and dependent on our parents. But they forget about our many positives. There are over 80 million Millennials in the U.S., and we are great with technology, more ethnically and racially diverse than previous generations, and the most educated generation in history. We are passionate, crave feedback, and will soon make up the majority of the workforce. As Baby Boomers retire, we have an opportunity to shape the workplace. We need to learn from other generations and each other and continue to incorporate our expertise and knowledge at our current and future organizations. I enjoy networking with other Millennials and discussing professional roles and companies. If you’re like me, now is your chance to do just that. Join MSEC and fellow Millennials at our Denver office for a new and free program. The World Café format is designed to help mine our thoughts on the workplace. It will be a comfortable space for us to share collective knowledge, ideas, and insights, and gain a deeper understanding of our growing role in the workforce. You will be able to take the results back to your office and share them with your colleagues. If that’s not reason enough to attend, breakfast, lunch, and a happy hour will be served. We hope to see you on June 3. All you have to bring are your ideas for small café table discussions. If you have questions on this program, please contact us at 800.884.1328 or email me at registration@msec.org.
8
MAY-JUNE 2015
|
MSEC.ORG
Member Profile vices designed to enhance the physical, emotional, cognitive, and social well-being of each participant.
The Rocky Mountain Multiple Sclerosis Center is a patient- and family-centered nonprofit organization that provides a comprehensive and integrated wellness approach to MS and related diseases, life-changing support services, and cutting-edge research. The MS Center provides an unparalleled depth of services, focused on its core mission elements of care, support, education and research. Direct patient care and cutting-edge research are underway daily at the Rocky Mountain MS Center Clinic at the CU Anschutz Medical Campus, while legal assistance, counseling services and education programs are directed from the MS Center’s facility in Westminster, Colo. The MS Center is a multi-faceted organization doing great work in many areas, but one program in particular is making a real difference in the community by caring for patients and supporting their working families. The King Adult Day Enrichment Program–known at the MS Center as KADEP–has served the metro Denver community since the early ’90s. KADEP is an innovative, community-based and cost-effective day program alternative to nursing home placement for younger adults with MS, brain injury and other neurological conditions.
The physical and emotional demands of caregiving can create a profound struggle for families who cannot be available 24 hours a day. In some cases, family members of someone living with a disability must make the difficult decision to leave the workforce to care for a loved one. KADEP offers an alternative for families facing these tough decisions. KADEP provides vital weekday respite and peace of mind to caregivers, while maximizing the functioning, independence, wellness and life enjoyment of all who attend. “People can rest assured that their loved ones are well taken care of here, with breakfast and lunch provided, interesting programs throughout the day, and professional nurses on staff for any medical needs that may arise,” says Michelle King, KADEP Director. “We’re open roughly during regular business hours, so we’re perfectly organized to care for our clients while their family members go to work.” KADEP cares for an average of about 65 clients every weekday, and has the capacity to grow. To find out more about the KADEP program—including volunteering, making individual or corporate contributions to support the program, or enrollment information—visit mscenter.org.
Limited opportunities for social interaction and personal growth can lead to a sense of isolation, lack of purpose and depression. KADEP’s primary mission is to provide clients with a place to be part of a community, take part in daily activities, and have fun in an environment aimed at caring for each individual’s needs. KADEP provides a dynamic array of classes and activities, nursing care, and other ser-
MAY-JUNE 2015
|
MSEC.ORG
9
From the MSEC Library: Pain Points James McDonough, Membership Development
Judging by what our members tell us, taking care of business in 2015 is full of pain! Feeling your pain and anticipating your needs, MSEC has secured a treasure trove of fresh ideas to help you thrive despite these challenges. Cleverly disguised as books, they’ll inspire and fortify your brain. Tackle your organization’s pain points after reading a new book from the MSEC Library! Leadership Surveys indicate effective leadership is a top challenge. Sound familiar? On The Edge – The Art of High Impact Leadership: Required reading for Wharton MBA students to prepare them for extremely challenging conditions in their professional and personal lives. Start with Why – How Great Leaders Inspire Everyone to Take Action: Author Simon Sinek’s TEDxTalk “Why?” at TED.com has over 21 million views. Take a look and then check out this book! Give And Take: Can helping others drive our success? What are the implications for leaders and their organizations? Data-Driven Analysis Many people either fear or hate math, yet it is a useful skill set in our “Big Data” economy. Be brave and boost your brain with these books: Data Science for Business: Required reading assigned by faculty at MIT and Northwestern to provide MBA students with an essential understanding of Big Data and practical applications to business. How Not To Be Wrong – The Power of Mathematical Thinking: When your CEO asks you to justify your HR budget requests, mathematical thought processes can help you prepare. Thinking Fast and Slow: When is it ok to trust your gut instincts? Read this book and learn more about effective decision-making skills. Talent Management Experienced staff are retiring; high performers are leaving for other jobs; new employees are disengaged. Maximizing employee performance is an urgent priority, but how? Managers as Mentors: Easy to read, chock-full of practical tips and tools, this could inspire all managers to grow the next generation of leaders. Help Them Grow or Watch Them Go: “Grow your own” talent is considered an essential objective for a sustainable business. Become a Master Career Gardener with this easy read. Organizational Culture and Leadership: Can culture attract and retain the talent your organization needs to succeed? Read and decide for yourself.
10
MAY-JUNE 2015
|
MSEC.ORG
Communications Until robots take over, effective interpersonal communication drives business success. Improve yours! Thanks For The Feedback – The Science and Art of Receiving Feedback Well: Are you always right? Me too. That’s why we both need to read this book! To Sell Is Human: Did you know that 100 percent of Americans are in sales? This book about effective communications and interpersonal skills may open new doors for you. Success Gain often follows pain—for organizations and individuals alike—as they seek success. Scaling Up Excellence: To nurture their brood of future high-tech start-up billionaires, Stanford MBA professors make this required reading. Mindset – The New Psychology of Success: This book offers to help you achieve “great accomplishment in every area” of your life. Who can resist that offer? What Got You Here Won’t Get You There: Need help growing into a new role at your organization? Discover the “20 workplace habits you need to break,” and lots more practical advice. Move from pain to gain! Contact me to take care of business: 800.884.1328, jmcdonough@msec.org.
Three Resources that will Vet Candidates to Ensure you Hire the Right Person! Background Checks-Our easy-to-read reports help you determine quickly an applicant’s criminal, educational, and work history. Drug Testing-We partner with Chemscreen to provide a cost-effective, state-of-the-art electronic reporting system with same-day drug test results. Behavioral and Skills Testing We offer a wide variety of Skills Testing and a simple-to-use, cost effective, and flexible online testing application. Our Behavioral Assessments have a proven history of successfully predicating job performance and reducing turnover. To take advantage of these services call 800.884.1328 or email pes@msec.org.
MAY-JUNE 2015
|
MSEC.ORG
11
Update on NLRB Quickie Elections: Union Free Employers Take Notice Chad Orvis, Specialized Legal Services
propaganda, and before the employer has a chance to communicate the disadvantages of unionization and the benefits employees currently enjoy, unions are more likely win.
On April 14, 2015 the National Labor Relations Board’s new “quickie election” rules will take effect, making it much easier for employees to unionize your workplace. While the NLRB claims the new rules will ensure the union election process remains fair and efficient, the practical effect will be an election period shortened from an average of 42 days to as little as 10 days. The new rules will have major repercussions for non-union employers threatened with organization. The reduced election period will significantly impact employer free-speech rights, as management will have little time to train its supervisors or educate its employees about the downside of union representation. Generally, shorter election time frames allow unions to use surprise to deny the employer the opportunity to mount a thorough election campaign. If unions can strike quickly and get a vote while employees are riled up from union
12
MAY-JUNE 2015
Remember, unions don’t have to disclose that they’re trying to organize an employer or getting employees to sign authorization cards. Frequently, employers only learn about a unionization effort after a petition has been filed. Ten days is hardly enough time to procure counsel and mount an effective campaign in response. Employers should take immediate action to prepare for a quickie election. At the very least, employers should train their managers and supervisors on best practices for union avoidance and how to identify signs of union organizing, and instruct them with respect to legal rights. Employers can also reduce the risk of unionization by ensuring employees are properly classified and reviewing relevant union avoidance policies, such as off duty access, solicitation, and distribution policies, to ensure preparedness for potential union organizing campaigns. Finally, employers should consider having a “break the glass” campaign response at the ready that it can implement at a moment’s notice. MSEC’s Labor Relations attorneys are available to help with consultation and training on these issues.
|
MSEC.ORG
MSEC Library… Not just books on a shelf! Membership grants access to valuable resources… Membership grants access to valuable resources… Research Assistance
Customized to your needs. Research Assistance Customized to your needs.
Training to access MSEC online resources
CCH Answers Now, BLR.Safety.com, web portal, and more Training to access MSEC online resources CCH Answers Now, BLR.Safety.com, web portal, and more
Magazines/ Newsletters/ Dailies
30+ different titles, many not found in other libraries Magazines/ Newsletters/ Dailies 30+ different titles, many not found in other libraries
Deep content in select subjects: Law: Employment, Labor, Wage and Hour, Civil Rights Deep content in select subjects: Presentation Skills
Law: Employment, Labor, Wage and Hour, Civil Rights
Training and Organizational Development
Presentation Skills
Training and Organizational Human Resource topics Development and tools Employee Handbooks Human Resource topics and tools Performance Management Employee RewardsHandbooks and Recognition Performance Staffing Management Rewards and Recognition Staffing
Open Monday - Friday, 8am-5pm Online catalog - Search anytime! Call for assistance: 800.884.1328
MAY-JUNE 2015
|
MSEC.ORG
13
MSEC, in partnership with the Colorado Chapter of ISCEBS, presents the
The Benefit Update Conference features well-known industry leaders and experts in the field of benefit management and consulting. Learn about health care reform, current legislation and trends that directly affect your benefit programs. Colorado Springs July 8 | Denver July 14 Ft Collins/Loveland July 16 | Grand Junction July 21 MSEC & ISCEBS members $199 $179 per person for groups of 3 or more from the same organization Non-members $239 For more information, or to register, call 800.884.1328, email registration@msec.org, or go to MSEC.org.
14
MAY-JUNE 2015
|
MSEC.ORG
Staff Spotlight Curtis Graves
Thanks!
Curtis joined MSEC in 2007 as an employment law attorney. Born and raised in New Hampshire, he received his bachelor’s degree in English from the University of New Hampshire, eventually earning his law degree from the University of Denver in 2003. Curtis also received his certification as a Senior Professional in Human Resources in 2010. Curtis is currently MSEC’s Manager of Information Services and assists in producing MSEC’s member resources and publications. He regularly trains human resources professionals, managers, supervisors, and employees on topics such as employee drug use, civil rights, and unemployment compensation. Chances are you have seen Curtis representing MSEC and discussing marijuana on local Colorado media stations. He has also appeared on CNN, National Public Radio, and Al Jazeera to discuss employment law and how it relates to recreational marijuana in Colorado.
Thank you for participating in our 2015 Member Satisfaction Index. We appreciate your feedback!
Curtis regularly represents members in administrative proceedings before the Equal Employment Opportunity Commission, the Colorado Civil Rights Division, and the Colorado Department of Labor and Employment. Before embarking on a career in employment law, Curtis worked in landlord-tenant law, where he learned more than he ever wanted to know about meth labs and mobile home parks. When Curtis is not working, he likes to enjoy the great outdoors in the most civilized fashion possible: from the seat of a motorcycle.
MAY-JUNE 2015
|
MSEC.ORG
15
Trends in Employee Turnover: What is the Financial Impact of Turnover on Organizations? Sue Wolf, Surveys
Turnover rates have remained fairly steady over the past few years, but with the stronger economy, they are on the rise. MSEC recently published its 2015 Personnel Pulse Survey, which tracks HR metrics such as turnover, tenure, job absence rates, compensation expense, and cost of benefits. In our 2015 survey, Arizona and Colorado employers reported higher 2014 All Employee and Voluntary turnover rates, whereas Wyoming’s turnover rates fell slightly from 2013. The 13-state-region comprising the “West” mirrors the nation as a whole in higher turnover. The following charts show the All Employees and Voluntary turnover rates for the last five years. Average % Turnover: All Employees Arizona Colorado Wyoming West * United States Average % Turnover: Voluntary (Employee Initiated) Arizona Colorado Wyoming West * United States
2010
2011
2012
2013
2014
16.9%
29.5%
25.1%
21.3%
23.6%
16.6%
17.2%
17.6%
16.9%
21.5%
21.0%
10.8%
16.0%
29.7%
25.4%
36.9%
36.3%
36.2%
38.7%
39.9%
36.7%
36.6%
37.3%
38.0%
39.9%
2010
2011
2012
2013
2014
11.2%
18.2%
17.5%
15.0%
16.7%
10.1%
10.6%
12.1%
12.6%
15.4%
16.5%
6.7%
12.2%
21.0%
15.9%
16.4%
17.8%
17.5%
19.8%
21.6%
16.9%
17.9%
18.7%
20.3%
22.0%
* West includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
The turnover rates in the above charts for Arizona, Colorado, and Wyoming are from MSEC’s Personnel Pulse Surveys. The West region and U.S. figures are from the Bureau of Labor Statistics’ Job Openings and Labor Turnover Report, published March 10, 2015. The cost of employee turnover can be significant to an organization. Studies report turnover can cost oneand-a-half to more than two times an employee’s salary depending on the position. Turnover has hard and soft costs. Hard costs include direct hiring costs such as posting the position to online job boards, search firm fees, recruiters’ interviewing time, referral bonuses, etc. Soft costs include reduced productivity, overworked remaining staff, lost institutional knowledge, and relationship issues with customers, just to name a few. To determine the financial impact of turnover on your organization, multiply the number of separations per year by the estimated hard and soft costs of turnover.
16
MAY-JUNE 2015
|
MSEC.ORG
With the high cost associated with turnover, organizations need to focus attention on hiring the right people for the job, onboarding new employees, and retaining high performers to avoid preventable turnover. According to our survey, following are some of the most common practices employers utilize to reduce turnover. Actions to Reduce Turnover (Multiple responses permitted.)
AZ (5 orgns.)
CO (172 orgns.)
WY (7 orgns.)
Review applicant screening process
100%
67%
43%
Review employee orientation process
60%
62%
43%
Supervisory training for managing new employees
80%
72%
43%
Review organization pay policies and programs
100%
76%
71%
Provide employee training/career development
100%
76%
29%
Enhance organization’s communication to employees
40%
70%
57%
If turnover is high in your organization, don’t worry! You can begin to implement some of the above action items to reduce unwanted turnover and create a workplace where people want to stay. For more detailed information from the 2015 Personnel Pulse Survey, please visit our website at MSEC.org to view survey results by geographic area, organization employment size, and industry type.
MAY-JUNE 2015
|
MSEC.ORG
17
1799 Pennsylvania Street P.O. Box 539 Denver, Colorado 80201-0539 MSEC.org | 800.884.1328
PRSRT STD U S POSTAGE PAID DENVER, CO PERMIT NO. 552