iSixSigma

Employee Turnover Reduction Project

Six Sigma – iSixSigma Forums Old Forums General Employee Turnover Reduction Project

Viewing 45 posts - 1 through 45 (of 45 total)
  • Author
    Posts
  • #29483

    Tierradentro
    Participant

    Have any of you ever worked on a Six Sigma project with the objective of reducing employee turnover?  If so, I would really appreciate any input you could provide and possibly an example of how some of the Six Sigma tools and techniques used to make the project successful. 
    Thanks,
    John
     

    0
    #75641

    RR Kunes
    Member

    We recently completed a successful six sigma project on attrition in a call center.
    The basic tools utilized were surveys,pareto charts, multi-vari graphs, value stream mapping,.
    We found significant drivers of attrition and resolved those issues.
     
    Using a t-test to verify the improvement after implementation.

    0
    #75642

    Marc Richarsdon
    Participant

    And those drivers were…
    Thank You,
    Marc Richardson
    Sr. Q.A. Engineer

    0
    #75647

    RR Kunes
    Member

    Did not understand the nature of work performed at a call center just wanted a job
    Could not type at sufficient speed to be successful
    Lack of upward mobility within the job classification
    These were the main drivers

    0
    #75680

    MM
    Participant

    We used RTY for a metric to compare a yearly turnover rate, FMEA and surveys.  From these basic tools, we were able to examine the current practices and improve.  Sorry for those non-belivers.  However, it works and we obtained significate improvements, especially on third shift.

    0
    #75705

    Donna Nelson
    Participant

    I worked on such a project last year in an effort to improve employee retention and satisfaction. (Our employee satisfaction surveys told us they thought we had a retention problem.) We started by looking at exit interviews and determining why people left. Then we put the reasons into a fishbone diagram. We looked at which items we had the most control over, to focus our efforts more. Then we used FMEA as a tool to determine where to focus our energies and resources for resolution and developed an action plan for improvement. In our case, it is more ofa cost avoidance than a cost savings. If we don’t spend the budget on recruitment and other costs associated with hiring, we have more money available to provide training and rewards and recognition for those employees who are here. We estimate an average hiring cost to be $50k and have kept 3 employees from leaving since 6/1/01. I have additional information if you would like to look at it.

    0
    #75706

    psanyangore
    Participant

    I am currently working on a very similar project for my company. It would be of great help to take a look at some of the information you have.

    0
    #75709

    Tierradentro
    Participant

    Thanks for the Information Donna!  We are doing something similar by looking at exit interviews with our HR department and the one of our temp agency.  Any additional information or project work you are willing to share would be greatly appreciated….Thanks again
     
    John

    0
    #75713

    Sinnicks
    Participant

    I think there can be a significant cost savings if you include the increased productivity and/or creativity that results from happier employees….something voice of the employee is designed to do.
     
    Mark

    0
    #75717

    Tom Alver
    Member

    Donna,
    I would love to see your additional information because I have a colleague working on the same thing. Can you post it here?
    Thanks a million!
    Tom

    0
    #75721

    FGM
    Participant

    Donna,
    Would you consider posting some of this information on this site??, A lot of folks would really appreciate it, including me, of course.
    In advance, thank you…
    FGM

    0
    #75742

    Amit Gupta
    Participant

    Hey John,
    I am currently working on a six sigma project for reducing attrition.I have a multi-prongrd approach. We are keeping a track of our weekly attrition for various categories of employees.This is bolstered by a weekly attrition dashboard.
    In Measure we have captured data from the exit interviews to arrive upon some baseline signature on primary reasons of leaving. We are also collecting a lot of data on various stratification factors like age group,prior work ex, industry sector people have come from and are trying to profile the separating employee.
    Lot of effort has gone in to make data capturing process robust to capture the desired information. We are proceeding ahead by analysing various outcomes. We are also going to use a survey on target customers fro validation of our outcomes and validation of our analysis.
    Hope you’ll find it useful.

    0
    #75747

    Dave G
    Participant

    I don’t mean to be insulting, but how can anyone truly believe that people stay with a company or job for money as the number one factor.  Look to HR MGrs and they’ll tell you why people stay and why they go.  When I worked at GE, we had a turnover project, and we found a number of things leading to high turnover;
    The civilian workforce is just like the military.  People make decisions based on the environment, and the culture, not extrinsic rewards.  Look to Deming’s SoPK.  People saty committed to a job because;   A.  They like the work  B.  They like their co-workers C.  They feel like part of a team.  D.  They feel supported by their leaders.
    At GM, I learned that people don’t quit companies, they quit the people in those companies.  If your boss spends no time making you feel part of the team why should you stay?  If you feel unappreciated, why stay?  If you’re not having fun, why stay? 
    If you want to see the drivers/contributing factors we found in the GE project, see my next posting.  Thanks

    0
    #75748

    Dave G
    Participant

    That looks like a lot of demographic data collection.  What data gathering are you doing centering on the culture of your business.  At GE we found that employee retention starts with the day the person interviews. 
    The culture and professionalism you have will go miles towards retention.  Demographics is only a factor in how you sell your company and build that culture.
    We did surveys asking employees things like:
    After you started, how long did it take to get business cards? A desk? A phone? A job description?  How long were you in current assignment did it take before you felt part of the team?  Have you been thru a company orientation program?  Did you have a local sponsor to help with relocation?  On a scale of 1-5, with 1 being very accurate, how would you rate your last performance review?
    As you can see, these and many other questions allowed us to gauge our employee satiafaction.  Then the HR MGR (It was his Green Belt project) quantified the surveys.  Estimated cost of turnover (recruiting, training, etc), and then set a goal for improvement which would be a cost avoidance goal.  Hope this helps

    0
    #75750

    Edwards
    Participant

    I don’t want to be insulting also, but what is the number one factor that drives people to seek employment? Remember Maslow?: Number 1, physiological; hunger thirst, bodily comforts etc.  People can eat and drink if they have money, so they seek employment.
    I don’t know what level of employee your talking about?  Go out and ask the janitor in your firm what he thinks!!

    0
    #75754

    Dave G
    Participant

    Ouch, that’s a good point.
    We should both remember, that these are our opinions, and not data driven.  It is true, that people will sacrifice happiness for pay.  That’s why prostitution is never suffering from a labor shortage.
    Pay and happiness are both sources of variation in this project.  In my plant, there are some who stay only for the healthcare, lord knows it can’t be the pay.  With those folks, turnover doesn’t bother me.  Matter of fact, I wish they would leave. 
    It’s the emloyees that put up with all the crap, and low pay, because it’s a good place to work who need to be retained.  We have fun, we recognize our employee’s accomplishments, we attend their family funerals, and we are honest with them about the business.  Those employees that are here only for the pay, and/or benefits are more a burden than benefit.  They abuse FMLA, have multiple medical restrictions, border on acceptable performance, and in short take more manpower and money to manage than they ever contribute.  There ought to be two projects for turnover.  One that measures retention of quality employees, and one the tracks reduction of problem employees.  Loayalty is worth more than pay.  If you belong to a good company, then you shouldn’t need higher than average wages to keep employees. 

    0
    #75766

    NATZIC
    Participant

    John, Six Sigma is a tool to solve the unknown.  Six Sigma projects that pertatin to an assembly line or extra testing due to unknown situations, can and will free up employees once you correct the problem.  Anytime you increase Throughput (Sales not production) you have to make a decision continue to run faster than your demand which will build your inventory.  The other choice is to labor load your line which will free up employees.  The answer lies in what you do with employees, if you let them go no one will assist in your next project, but if your free up your best employees and use them on your next project.  Many will come forward and assit you with your next task.

    0
    #75923

    mandeepvats
    Participant

    Hi Amit
    Looks like u have done and doing a very good work.Can u share some checksheets (parameters) for data collection and tools used for analysis.
    Will be of great help
    Thanx & regards
    Mandeep
    emai:[email protected]

    0
    #75929

    Ashok
    Participant

    John
    In our plant there was a project done on reducing the attrition rate.  The methodology used by the BB was Pareto , survey, Cause & Effect matrix.  The team came out with few recommendations to improve the  attrition rate.  However , the success of the project depends on Geographical location more , despite implementing all the recommendations the project was not successful.  The reason analyzed for failures were :
    1) Geographical location: Professionals are in demand because of several industries coming up.  Unlike USA, people won’t stay with a company for long time ( No social security and gratuity)
    2) The experience gained in my company was widely accepted by all  other companies hence, candidates from my company were readily accepted in the market with higher salary.
    Inshort the project was not a successful project, however similar project was tried in some other place and the attrition rate was dropped after the implementation of the recommendations from the team.  The improvement was confirmed using  t-test.

    0
    #75944

    Andy Brody
    Participant

    BRAVO!  Study after study has proven that regular positive daily recognition goes along way.  A sense of loyalty can be fostered by a management that goes out of its way to make their employees feel a part of a team (and if management is good enough, a sense of family can be fostered).  People may be attracted to a job by money, initially.  But retention is fostered by the culture.

    0
    #75946

    Dave G
    Participant

    You make a very good point here.  On my shop floor, I refuse to look at VSM and Lean as a tool to eliminate operators.  Labor pays for itself over and over again.  TOC is the best way of explaining this. Roadrunner running, and then when you start building inventory, move the team to help elsewhere.  You are right

    0
    #75951

    Tab
    Member

    Our employee retention process improvement effort started in a “traditional” manner involving a Pareto of the termination reasons so we could focus on the major causes.  Our population involved primarily professional employees.
    Somewhat late in the project, I interviewed former employees to assure the recorded termination reasons reflected the reason these individuals voluntarily terminated employment.  I discovered that most of the termination reasons recorded in the human resources database were incorrect and the earlier Pareto was therefore misleading.  This is not a situation we would have discovered in the Measurement Systems Analysis as this was structured to assure the Human Resources personnel coded the termination reasons correctly – it did not reflect the fact that dissatisfied employees are sometimes reluctant to share the “real” reason they voluntarily terminate employment.
    In reviewing this issue, I had an opportunity to discuss the matter with a university professor who has done research in this area.  It appears it is not unusual for exiting employees to avoid giving the “real” reason they leave a company.  In our particular situation, it significantly changed the direction of our efforts.

    0
    #76007

    Warren B.
    Member

    I’m curious, can you point me to some research about being not giving their ‘true’ reasons for leaving to exit interviewers?  Who is the professor doing research on the topic?
     
     

    0
    #76008

    Tab
    Member

    Please see the following website for more information: http://www.uncc.edu/ragiacal/exitframes.html.

    0
    #76013

    Marc Richardson
    Participant

    I would suggest that in addition using a T-test to determing the effectiveness of the changes made, that you consider plotting the data on a control chart. A T-test will will tell you whether a shift has occured only for the period under study. A control chart will show you whether the gains are sustained over time.
    Marc Richardson
    Sr. Quality Assurance Engineer

    0
    #76138

    Diane Knoop
    Participant

    We have over 100% turnover a year. Would love to see more information on your project. Thanks!

    0
    #76145

    john beaudoin
    Participant

    David, stick to your first statement that you have no data to back up what you think, and that based on your experience, this is your gut feeling based on your personal motivational factors.  Because you compose part of the overall population of workers, there is a good probability that there are, in fact, others like you in the work force.  However, there is a much stronger probability that there are large numbers of population that have different motivational factors than yourself.  After you have had a few college level cources in organizational behavior or human resources, I’m sure your would have a much better idea of what motivates a workforce.

    0
    #76146

    BBB
    Participant

    I would have to agree with Tab on the integrity of the exit interviews.  I am working on a retention project for our service technicians in our 80 service centers throughout the country.  We followed up surveys with focus groups and found out that most people leaving “don’t want to burn bridges.”  This has the most impact when management is an issue.
    We broke our project into three sub-processes: recruitment, interview/selection and employee maintenance.  We are concentrating on interview/selection as it will have the most impact for us.  Someone said it earlier in these posts though, this is a cultural shift, so claim your wins but be patient.

    0
    #76148

    john beaudoin
    Participant

    Pat, I’m affraid I don’t quite understand how your statement applies to looking to REDUCE turnover, other that you are all for it.  Unless you are implying that by optimizing your other processes, natural turnover is a good thing to have so that you don’t need to lay any one off as they quit on their own.

    0
    #76150

    john beaudoin
    Participant

    John,
    You have receives some good advice to get you started on your project.  I wanted to make you aware that what you discover about yourselves may not be pretty, and you need to be prepared for the worst.  You may find that you have some very offensive supervisory or management staff causing issues.  If this is the case, someone will need to be prepared to make the big decisions of what to do with these individuals, whether it be training or something as severe as termination.  As someone else said, a lot of these reasons may not show up on your exit reviews, as some people are intimidated by management, and also know that they need your company as a reference for finding a new job, and don’t want to say anything that might endanger that.
    Some Tips: Pay attention to exit reviews, but don’t put much faith in the data.  Look for hidden meanings.  If you really want good information, do satisfaction surveys on all your existing employees.  Ask them questions covering catagories of:  Overall Job satisfaction, pride in the company name, are they over-worked, how do they feel about immediate supervisor, manager, company leadership, do they feel safe on the job, do they think there is good communication, are they satisfied with wages, benefits, rewards and recognition, etc.  This will give you good data that you can build employee action commitees with to solve real issues for the current workforce.  You can do the surveys every year to verify that improvement is being made, etc.  Just be prepared if a particular manager or supervisor gets singled out.

    0
    #76151

    Edwards
    Participant

    John,
    As a Black Belt, I guess you’re correct about me making assumptions with no relevant data to back up my clain…I accept that.  I was only attempting to answer a question as I seen it…give an opinion if you like.  Believe me, I have had my fill of HRM & Organisational Behaviour courses over the years.  When you study the theory, you will see that always they do not compliment each other, in fact many go against each other…they are there to be argued with indeed, not set in stone.  Theory is in fact ever evolving.  So I believe I do have an idea of what motivates a work force…very different of course across different cultures and geographical locations, remember the USA is not the end of the world.
    Also,  where is your data for claiming that “there is a much stronger probability that there are large numbers of population that have different motivational factors than me?”
    Best regards, David

    0
    #76154

    john beaudoin
    Participant

    Your points are well taken.  On my data, I have not seen an HR presentation yet that showed Salary as the number one reason for job satisfaction.  Salary is usually about 3rd.  Note I have been in the work force going on 13 years now in management, as well as I am taking night classes to get my MBA.  The top two are usually a positive, friendly work environment and a good relationship with immediate managers, which usually involves a teamwork environment, a good motivational fit with the company, satisfaction with rewards and recognition, and a feeling of self worth (money is a factor).  If someone offered me $20K more a year to move from Kansas City to Chicago, I probably wouldn’t do it, because family, etc. is more important to me than the extra $20K.  Even an extra $20K in the same city would not cause me to leave my company as there are fears of the unknown.  However, I am where I am today, not so much for the offer of higher pay, as for the dissatisfaction I had with the management of my previous employer, even though I loved the job I performed.  You just can’t tell as everyone is unique and has their own motivators.

    0
    #76161

    GM
    Participant

    I am currently working on a similar project and my company is using the $50K as a cost of hiring as well.  I am currently trying to break this number down to find out where it originated from.  If you have any details on how to break down the $50K I would appreciate it.
    Thank you

    0
    #77511

    T.Lulloff
    Member

    I am in Human Resources and will be going through GB training soon.  My company is just beginning to deploy GB into the organization.  I would be interested to see what/how you did as I will be the first HR GB.
    My initial plan is to target a project in our call center regarding performance indicators.

    0
    #77513

    tanya Lulloff
    Member

    I am just going into GB training and would love so see what you did.  Anything you would be willing to share would be great.

    0
    #77516

    fernando
    Participant

    Tanya,In http://www.hltnetwork.com/six-sigma you have a project list where to find some ideas about tools and DMAIC process. Two examples that may be of interest in your case are one of overtime reduction in services and defects reduction in a bank (have to do with a call center in some way).Good luck! 

    0
    #81988

    Ruddy
    Participant

    Fortunately for most employers, a competitive salary is necessary but not sufficient to retain employees.  There is a great deal of research investigating the impact of salary (extrinisic motivator) on both satisfaction and turnover.  Most studies have found that if employees feel as though they are paid equitably to others in similar roles within and outside of their organization, they will be less likely to leave the organization.  However, more money is not necessarily better.  It’s not a complete linear relationship.

    0
    #106963

    mba
    Participant

    Just curious, how were you able to contact former employees and obtain information that would let you know that the reasons given during their exit interviews were inaccurate? Why would they have given you more accurate information than given in their exit interviews?

    0
    #106965

    Tab
    Member

    Good question…
    Employee personnel records were used to obtain the employee’s last known telephone number.  I then called each former employee and talked with them directly.  In most instances, I found that the former employee had not been asked their reason for leaving; the information recorded in the HR system did not reflect the results of an exit interivew but rather the reflected an assumption made by whoever entered the information into the database.
    Based upon my discussions with HR professionals and educators, it appears that the information given by an employee in an exit interview is often not the real reason the employee is leaving.  There are a variety of reasons prompting this circumstance to include the employee not wanting to “burn bridges.”  With the passage of time and an understanding that their responses would not be attributed to them, some of this hesitation to provide the “real reason” was hopefully alleviated – there were more comments about supervision and management disclosed in the interviews than were reflected in the database which I found interesting but unfortunately lacked enough instances to suggest it was statistically significant.
    What your question suggests is the real challenge…how to get honest employee feedback to improve the company’s performance. 

    0
    #106974

    Stoppa Pulling Mya Legga
    Member

    Stoppa Pulling Mya Leg; Nobody responds to a 30 month old post and gets an answer from the author of the post in 19 minutes.
    OR IS IT A SOME KIND OF INTERNET MIRACLE?

    0
    #133315

    Whitehurst
    Participant

    Could you e-mail me the info?

    0
    #133607

    Geri
    Participant

    I agree 100%, pay is a nice incentive but working conditions, morale, an understanding and empathetic boss, flexibility in the job are far more important in reducing employee reduction.

    0
    #146158

    Jacquard Associates
    Participant

    I would be very interested in addiotnal information 847-945-8700

    0
    #146159

    Manoj Thomas
    Participant

    Hi Donna,
    Would love to see a copy of your project .. Mail : [email protected]
    Rgds,
    Thomas

    0
    #153553

    Sonal Narula
    Member

    Can you help me in applying FMEA to do exit analysis  and finding a root cause to reduce attrition

    0
Viewing 45 posts - 1 through 45 (of 45 total)

The forum ‘General’ is closed to new topics and replies.